Key financial data	2008	2007	2006	2005	2004
Underlying revenue £m	4,502	4,038	3,907	3,406	3,072
	+11%	+3%	+15%	+11%	+13%
Underlying profit before financing £m	566	564	519	454	208
	+0%	+9%	+14%	+118%	+24%
Net assets £m	330	2,468	2,165	1,617	1,740
Other key performance indicators
Order book £bn	43.5	35.9	20.0	19.0	16.2
	+21%	+80%	+5%	+17%	+13%
Engine deliveries	987	851	856	881	824
Underlying services revenues £m	2,726	2,554	2,310	2,016	1,838
Underlying services revenues %	61	63	59	59	60
% of fleet under management	57	55	48	45	45
Underlying revenue		Market opportunity over 20 years
£4.5bn		US$1,250bn

The civil aerospace business powers over 30 types of commercial aircraft from business jets to the largest widebody airliners. A fleet of over 12,000 engines is in service with 600 airline customers and 4,000 corporate operators.

The business continued to perform strongly in 2008 despite the impact of worsening economic conditions on customers and on the air travel market in general. Underlying revenue grew by 11 per cent. This result was driven by increases in new engine deliveries, which approached 1,000 units, and by continued growth of services revenues which accounted for over 60 per cent of total sales. The first half of 2008 continued to see strong order intake and, while order activity slowed in the second half of the year, the total order book for civil aerospace grew to £43.5 billion. Underlying profit was flat year-on-year.

In the corporate and regional market, the 3,000th AE 3007 engine was delivered. Meanwhile, the newest member of the Group’s corporate engine family, the BR725 for the new Gulfstream G650 corporate aircraft, achieved first engine run on time in April. The G650 has enjoyed unprecedented market interest, reinforcing the Group’s leading position in the corporate market.

V2500 SelectOne, the latest successful V2500 engine standard, produced by the International Aero Engines (IAE) consortium, in which Rolls-Royce is a major shareholder, entered service with IndiGo Airlines of India.

The Trent family continues to enjoy significant success. The Trent 900-powered Airbus A380 completed a year of service and demonstrated excellent reliability with Singapore Airlines (SIA) and Qantas.

Further orders for the engine were received for SIA and Thai Airways International. The Trent 900 has now been selected by ten of the 13 operators that have ordered the A380 and made an engine decision.

The Trent 700 continued to win over 70 per cent of orders placed for the Airbus A330. Significant additional orders were also placed for the Trent 1000 for the Boeing 787,which has now been selected by about 50 per cent of operators, and for the Trent XWB, which is currently the only engine offered for the Airbus A350 XWB.

Entry into service of the Boeing 787 has been delayed until 2010, but maturity testing of the Trent 1000 has continued with successful demonstration of endurance programmes equivalent to two years of service. The Trent XWB programme attracted considerable interest from risk and revenue sharing partners with agreements signed by the end of 2008 for around 40 per cent of the programme, with major partners including KHI and MHI of Japan, ITP of Spain, Volvo of Sweden, Hispano-Suiza of France and Parker Hannifin of the US.

We continued to secure services contracts, achieving a record year for CorporateCare sales and selling TotalCare with approximately 90 per cent of new Trent engine orders. A larger Operations and Data Centre was opened in September to support the growing large-engine fleet under Rolls-Royce service contracts, now totalling 5,300 engines.

We are actively exploring technologies and programmes that address environmental and sustainability issues relevant to our business. Through our Option 15-50 programme we continue to pursue a comprehensive range of leading technologies and engine architectures to meet these challenges.

Global air travel and air freight is already being affected by the economic downturn. The scale of the future impact is unclear, with airframe delays and concerns about customer financing adding to the uncertainties surrounding engine volumes.

The Group expects engine deliveries to fall in 2009 with an increasing risk of deferrals and cancellations, weaker volumes in the narrowbody and the corporate and regional sectors, and stable Trent deliveries for widebody aircraft.

Growth in services revenues will be modest in 2009, held back by lower utilisation levels, the impact of parked aircraft and some softening of uncontracted ‘Time and Material’ services revenues. As a consequence, underlying profits will be lower in 2009.