© Rolls-Royce plc 2008 Legal Information

The Group has successfully broadened its product portfolio by investing in technology and product development and by acquiring products and capability.

Although Rolls-Royce competed in aerospace, marine and energy markets 20 years ago, it was with a much smaller product portfolio, across a more limited power range. Our research and development approach of 'invent once and use many times' has since allowed us to maximise technology across each of our markets. We now have a wide range of modern, efficient gas turbines in each of our key sectors. The way we have developed the Trent family for aero, marine and energy markets is the best example of this approach.

Our marine business now has an extensive product range, which provides a range of capabilities from ship design to power systems and controls. Our energy business provides gas turbines, compressors and reciprocating engines for the power generation and oil and gas markets.

Our defence business produces engines for all the major military aviation markets. These engines power around a quarter of the world's military fleet.

In 1987, our civil aero-engine product portfolio was limited to just four principal engines, one of which, the V2500, was still in development. Today, Rolls-Royce has the most extensive product portfolio of any of the gas turbine manufacturers, powering more than 30 applications. The breadth of the portfolio makes the business model far more robust as we are not as dependent on the success of individual applications.

We continue to see significant opportunities for the introduction of new products in each of our market sectors. Our strategy is to ensure that we have 'on the shelf' innovative technologies for future generations of product. For Rolls-Royce, product development is at the heart of our competitive advantage and in many ways is our equivalent of acquisition activity. For that reason, each product investment involves a rigorous examination of the risks and rewards - in effect the equivalent of due diligence - to ensure that only business cases that we believe will create shareholder value are pursued.