Global Lobbying and Political Support Policy Trusted to Deliver Excellence Introduction Rolls-Royce is committed to ensuring that any Lobbying Activity or Political Support in which it participates is done in full compliance with all laws and regulations, in accordance with our zerotolerance approach to bribery and corruption as set out in section 4 of the Rolls-Royce Global Code of Conduct (the “Code”), and the standards set out in section 5.3 of the Code relating to Lobbying Activity and Political Support. The principles underpinning this this Global Lobbying and Political Support Policy (“Policy”) are: Rolls-Royce engages with governments, their agencies and representatives in order to communicate with them on matters relating to Rolls-Royce business; Individuals or entities engaged in Lobbying Activities on behalf of Rolls-Royce (including third parties) must: be authorised to do so by Rolls-Royce Government Relations; be registered in the relevant country where applicable; and conduct themselves in a way that conforms with all applicable laws, the Company’s standards within the Code and with honesty, integrity and transparency in all dealings with governments, their agencies and representatives. Rolls-Royce does not make corporate contributions or donations to political parties or to any organisations, think-tanks, academic institutions or charities closely associated to a political party or cause; Rolls-Royce does not have any preference for one political party over another; and Rolls-Royce employees may take part in party politics or make personal political donations outside the business and in their own time. This Policy is mandatory and applies to all employees and representatives of Rolls-Royce and its wholly owned subsidiaries (“Rolls-Royce” or “Company” or “employees”). A Rolls-Royce employee who is a director on a Board of a joint venture should encourage the joint venture to adopt this Policy as a model or use a similar policy which meets similar standards. This Policy and the other Anti-Bribery and Corruption Policies (“ABC Policies”) set a minimum standard that must be followed. Where local laws, regulations or rules impose a higher standard, that higher standard must be followed. Breaches of the ABC Policies are not acceptable and may result in disciplinary action up to and including dismissal.. Lobbying and Political Support Policy version 1 Page 2 of 6 Common Terms Rolls-Royce Government Relations: one of Lobbying Activity: engagement with the following: governments, their agencies and United Kingdom – UK Government representatives in order to communicate with Relations them on matters relating to Rolls-Royce European Union – EU Affairs business. North America (US and Canada) – Government Business Rest of the world – contact your Regional Director/Country Director in the first Political Support: activity which requires Rolls-Royce, or its representatives, to come into contact with the political community or deal with political matters. instance or if you have no Regional Director or Country Director contact the Political Donation: a payment or transfer of Director of Rolls-Royce International value made to a political party, or organisation, Contact details are available on the think-tank, academic institution or charity Government Relations page of the affiliated with a political party, or any Rolls-Royce intranet. representatives of such parties, or individuals standing for public office. 1. Global Lobbying and Political Support Policy 1.1 Policy 1.1.1 All Lobbying Activity and Political 1.1.3 Rolls-Royce and its employees must Support will be consistent with Rolls-Royce not make any Political Donations on behalf of principles and standards as defined in the Rolls-Royce. Code. 1.1.4 1.1.2 All employees who are contemplating Rolls-Royce will act in an entirely open manner within the laws and regulations Lobbying Activity or Political Support must applying to Lobbying Activity, Political Support seek advice from the relevant Rolls-Royce or Political Donations in all the countries in Government Relations to ensure compliance which the Company operates. with local laws and regulations. Lobbying and Political Support Policy version 1 Page 3 of 6 1.1.5 Certain Rolls-Royce employees in the 1.2.5 All employees must report as soon as United States have the right under United possible if you know or suspect a breach of States law to organise Political Action any ABC Policy by you or by another person, Committees to advance in a collective fashion including those acting on behalf of Rolls-Royce to support their political and policy interests. who are not Rolls-Royce employees (for These committees are funded by voluntary example, logistics providers). Reports should donations via payroll deduction and are be made to a member of the ABC Compliance administered by a committee of employees team, the Legal Function or the Ethics Line. who act on their behalf, independently of the company. Rolls-Royce will comply with all laws and regulations governing Political Action 1.3 Report on Lobbying Activity Committees organised by its employees in the United States. 1.3.1 The Director of Rolls-Royce International will submit an annual report to the 1.2 Lobbying Rolls-Royce Safety and Ethics Committee on the following: 1.2.1 Any third party conducting Lobbying a. Activity on behalf of Rolls-Royce must be approved under the Rolls-Royce Global Registers; b. Advisers Policy. All employees, and anyone acting on Political Support activity together with Lobbying Activities, will act at all times with the payments made to those Advisers honesty and integrity and will ensure that as provided by the ABC Compliance information they provide in their Lobbying team; d. fairly represented. 1.2.3 The information which will be included in the Rolls-Royce Annual Report and on the Sustainability section of the Rolls- All employees, and anyone acting on Royce website in relation to Lobbying behalf of Rolls-Royce, will be open and Activity and Political Support activity; transparent in their dealings with governments, and their agencies and representatives and declare the interest they are representing. An overview of Advisers who have been undertaking Lobbying Activity and behalf of Rolls-Royce in connection with any Activities is transparent, factually correct and The structure of the Rolls-Royce Government Relations function globally; c. 1.2.2 Rolls-Royce entries on Lobbying e. Information from Rolls-Royce North America as required by the United 1.2.4 Divisional Presidents, business States Government under the Lobbying leaders and functional heads will ensure that Disclosure Act of 1995 to report on a anyone in their division or function engaged in quarterly basis all expenditures incurred Lobbying Activity or Political Support is briefed and issues lobbied. on and complies with the Code and this Policy. Lobbying and Political Support Policy version 1 Page 4 of 6 1.4 Political Support Activities 1.4.1 Rolls-Royce does not have any 1.4.2 As a matter of general principle, the preference for one political party over another Company will decline any invitation for political but, from time to time, Rolls-Royce may be comment and, if there is any doubt, all involved in activities which involve the political employees should consult Rolls-Royce community, for instance visits to Company Government Relations for advice. sites, or requests to use facilities during politically sensitive periods. Employees should always seek advice from Rolls-Royce Government Relations before giving approval for such a visit. 2. Where to find out more Government Relations www.infocentre.rolls-royce.com/government_relations/default.htm The Rolls-Royce ABC Compliance team www.infocentre.rolls-royce.com/compliance/pages/compliance_contacts.htm or specifically the office of the Chief Compliance Counsel – ABC: Jo Morgan Chief Compliance Counsel – ABC Rolls-Royce plc 62 Buckingham Gate, London SW1E 6AT Telephone: +44 (0) 207 227 9115 Email: Jo.Morgan@Rolls-Royce.com 3. Other documents you should read The Rolls-Royce Global Code of Conduct www.rolls-royce.com/global_code_of_conduct The ABC Policies and guidance documents on the Rolls-Royce Compliance intranet pages www.infocentre.rolls-royce.com/compliance Lobbying and Political Support Policy version 1 Page 5 of 6 Document control - for internal use only STATUS Final VERSION NUMBER/FINAL Version 1 EFFECTIVE DATE 23 January 2015 NEXT SCHEDULED REVIEW DATE SPONSOR January 2016 OWNER Chief Compliance Counsel AUTHOR Chief Compliance Counsel SUPERSEDES VERSION DATED/REFERENCE SCOPE First issue Director of Risk All employees globally, subsidiaries and JVs © 2015 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied, communicated to a third party, or used for any purpose other than that for which it is supplied, without the express written consent of Rolls-Royce plc. Lobbying and Political Support Policy version 1 Page 6 of 6