Key financial data	2008	2007	2006	2005	2004
Underlying revenue £m	2,204	1,548	1,299	1,097	963
	+42%	+19%	+18%	+14%	-4%
Underlying profit before financing £m	183	113	101	89	78
	+62%	+12%	+13%	+14%	0%
Net assets £m	488	563	619	674	651
Other key performance indicators
Order book £bn	5.2	4.7	2.4	1.7	1.4
	+11%	+96%	+41%	+21%	+17%
Underlying services revenues £m	712	545	487	435	397
Underlying services revenues %	32	35	37	40	41
% of fleet under management	35	33	3	3	0
Underlying revenue		Market opportunity over 20 years
£2.2bn		US$320bn

Marine is now the second largest Rolls-Royce business in revenue terms, with a world-class range of capabilities and expertise in naval surface ships, submarines, offshore oil and gas and merchant vessels. It has equipment installed on over 30,000 vessels, including those of 70 navies, representing a major opportunity for services growth.

The marine business has enjoyed a year of very strong growth. Our revenues since 2005 have doubled and increased by 42 per cent on 2007, driven by continuing growth in our offshore business which itself grew by 38 per cent in 2008. Marine profit has also increased by 62 per cent in 2008.

As our installed base of equipment grows, we are expanding our services capability and investing in new service centres globally to realise the significant opportunity that this represents. In addition, the expertise established in our aerospace businesses, including equipment health monitoring and long-term service agreements, is being applied to further increase marine’s service revenues.

The offshore sector has been central to our 2008 performance, based on the success of our specialist UT-Design and integrated systems capability which is the industry benchmark. Driven by significant investment in deep water exploration and production by the oil and gas industry, the sector has generated record sales of £901 million in 2008.

We have been particularly successful in the Asian offshore market, winning orders valued at £666 million in 2008 including contracts worth £84 million to supply propulsion equipment for offshore vessels being built in China and Korea. Two further landmark orders were received from China: a £58 million contract with China Oilfield Services Ltd and a £13 million contract with BGP Marine China to design and equip an advanced seismic research vessel.

During 2008, we acquired Scandinavian Electric Holding, which has further increased our capability in the design and supply of power electric systems. This enhances our ability to provide systems for offshore vessels, thereby increasing our overall market size.

Our proven offshore system capabilities are also being utilised in the development of specialist merchant ships, such as the contract to design and power two vessels for Sea-Cargo AS which will be equipped with innovative gas-fuelled Bergen engines.

Our naval business also won a milestone order in 2008: a £96 million contract to provide power and propulsion equipment, including four MT30 gas turbines, for the UK’s new aircraft carriers. As part of the Carrier Alliance, Rolls-Royce is supplying an integrated system which includes the propellers and propeller shafts as well as rudders, stabilisers and some electrical systems.

2008 was the 50th anniversary of our relationship with the UK Government on the design, production and support of nuclear plant for the Royal Navy’s submarine fleet. The submarines business is primarily focused on service and support, underpinned by an innovative £1 billion service contract with the MoD signed in 2007.

In 2009, marine will establish a global headquarters in Singapore which will enhance our global position and bring us closer to key customers in Asia.

There were some modest cancellations in 2008 but a record order book, market leading positions in the offshore sector and demand for high specification vessels provide good visibility of revenues in 2009 and support continuing strong growth in profitability over the year.