
Rolls-Royce is a highly focused power systems business. The Group's core technology and capability is centred on the gas turbine.
All four of our markets are global and have strong growth trends.
Our business strategy has been consistent over many years and is built around five key objectives:
Rolls-Royce continues to expand its international presence. In the past year we started work on, or opened, facilities in Europe, the United States and Asia.
The front cover is taken from a backdrop at the opening ceremony of our new factory in Shanghai, which supports the Group's £300 million turnover marine merchant business. This has now been in operation for a year and is our largest investment in China to date. It forms part of a production hub for our marine business in north-east Asia. It employs 120 people in the manufacture of tunnel thrusters, rudders, control and steering systems and deck machinery.

| Revenues | Contribution to Group revenues |
|
|---|---|---|
| Total | £7,156m | |
| 1 Civil aerospace | £3,775m | 53% |
| 2 Defence aerospace | £1,569m | 22% |
| 3 Marine | £1,300m | 18% |
| 4 Energy | £512m | 7% |

| Order book by region | 2006 £bn |
2005 £bn |
|---|---|---|
| Total order book | 26.1 | 24.4 |
| 1. Europe | 8.1 | 7.8 |
| 2. Asia/Middle East | 9.9 | 8.5 |
| 3. North/South America | 8.1 | 8.1 |