Introduction

+Civil aerospace

We are one of the world's largest civil aero-engine providers, with more than 12,000 large Rolls-Royce jet engines in service. We power 30 civil aircraft types, from small executive jets through to large passenger aircraft.

+Defence aerospace

Rolls-Royce is the world's second largest defence aero-engine manufacturer, providing around 25 per cent of the world's military engines. Our portfolio covers all major sectors, including transport, helicopters, combat, trainers and tactical aircraft.

+Marine

We are a global leader in marine propulsion for cruise, fast vessel, naval and offshore markets and a world leader in ship design for the offshore sector. We support 2,000 commercial marine customers and 70 navies use our propulsion systems and marine equipment.

+Energy

Rolls-Royce is a world leader in the onshore and offshore oil and gas industry and a growing force in the global electrical power generation market. We have energy customers in more than 120 countries.

+Services

The Group seeks to be the customer's first choice for services by developing long-term relationships. Our comprehensive support contracts enable us to add value for our customers by using our technology, skills and data management expertise.

	2007	2006		Change
Order book - firm and announced	£45.9bn	£26.1bn		+76%
Underlying services revenues*	£4,265m	£3,901m		+9%
Profit before financing	£512m	£693m		-26%
Underlying profit before financing**	£832m	£748m		+11%
Underlying profit before tax**	£800m	£705m		+13%
Earnings per ordinary share	33.67p	57.32p		-41%
Underlying earnings per ordinary share**	34.06p	29.81p		+14%
Average net cash	£350m	£150m		+133%
Net research and development	£381m	£370m		+3%
Capital expenditure	£304m	£303m		+0%
Employees	39,500	38,000		+4%

* Underlying revenues reflect actual US dollar exchange rates on settled derivative contracts.

** Reconciliation of underlying results is provided in note 2 and note 6 of the consolidated financial statements.