Key financial data	2008	2007	2006	2005	2004
Underlying revenue £m	755	558	546	535	538
	+35%	+2%	+2%	-1%	+2%
Underlying profit before financing £m	(2)	5	(18)	1	(7)
	-140%	+128%	-1900%	+114%	+61%
Net assets £m	392	370	387	390	453
Other key performance indicators
Order book £bn	1.3	0.9	0.5	0.4	0.4
	+44%	+80%	+25%	0%	0%
Engine deliveries	64	32	44	61	47
Underlying services revenues £m	370	289	251	219	248
Underlying services revenues %	49	52	46	41	46
% of fleet under management	9	7	6	5	5
Underlying revenue		Market opportunity over 20 years
£0.8bn		US$120bn

The energy business is a world-leading supplier of power systems for onshore and offshore oil and gas applications, and has a growing presence in the electric power generation sector. It supplies products to customers in over 120 countries.

Order intake remained strong in 2008, with services once again posting a record year and continuing to account for nearly 50 per cent of total energy sales.

African and Asian oil and gas markets were particularly active in 2008, with eight RB211 packages ordered for installation off the shores of West Africa, and six new compression sets for pipeline service in India. Other oil and gas RB211 packages were ordered for customers in China, Malaysia and Algeria.

Of particular significance was a year-end order, for eight Rolls-Royce driven compression sets from a unit of the Russian natural gas company, Gazprom. The new packages will be installed on the Nord Stream pipeline project running under the Baltic Sea from Russia to Germany. They are scheduled for delivery in 2010, with service expected to start in late 2011.

Market acceptance of the industrial Trent drove another record year in the global power generation sector, with orders received in excess of US$270 million. These included 13 Trents for power generation service in Australia, Belgium, the Czech Republic, Germany, Hungary, New Caledonia and Slovakia.

In North America, we continued to establish the Trent’s growing footprint in the high-demand north east US power generation market. Successful start-up and commissioning was completed for a Trent genset package at Lowell, Massachusetts, while construction continues for two Trent units at Braintree, Massachusetts for which start-up is scheduled in the second quarter of 2009. Reservations for an additional 18 Trent units in North America were also received.

The aftermarket business experienced another record year in 2008 with sales of £370 million. Over 200 Rolls-Royce gas turbine packages were covered by TotalCare agreements by year-end; this number is expected to increase to over 250 by mid-2009. Our product upgrades business also delivered another strong year, enhancing customer value by applying new gas turbine technology to increase the efficiency and power of in-service units. Over 40 Avon 200 gas turbine upgrades have been delivered over the past two years to increase the power and efficiency of these highly reliable machines, while demand for control system and centrifugal compressor upgrades also continues to grow as a result of enhanced product performance benefits.

As part of our strategy to accommodate growing production volume efficiently, we consolidated packaging operations into our Mount Vernon, Ohio facility and ceased operations at our Liverpool, UK facility. Two new lean assembly flow lines, dedicated to Trent and RB211 packages, were opened in 2008, and construction began on seven new gas turbine test beds which will become operational in the second quarter of 2009.

In 2009, further growth in original equipment revenues, particularly in the power generation sector, combined with increased services activity and lower investment in fuel cells, is expected to deliver a modest level of profit for the business.

While our energy business currently centres on the gas turbine, the skills and technical knowledge within the Group allow us to identify and explore new growth opportunities in the energy market.

The most significant of these in the near term is civil nuclear, where, through our experience of manufacturing and supporting nuclear reactors for the Royal Navy’s submarine fleet, we have a strong and unique capability. In 2008, we established a new business to address the market arising from renewed global demand for nuclear power.