Rolls-Royce: Annual report and accounts 2008

Group five-year review

For the years ended December 31


Income statement	2008 £m	2007 £m	2006 £m	2005 £m	2004 £m

Revenue	9,082	7,435	7,156	6,603	5,947

Profit before net research and development and share of joint venture profit	1,191	827	1,016	1,113	686

Research and development (net)¹	(403)	(381)	(370)	(282)	(288)

Share of profit of joint ventures	74	66	47	46	19

Profit before financing	862	512	693	877	417

Net financing	(2,754)	221	698	(400)	(53)

(Loss)/profit before taxation²	(1,892)	733	1,391	477	364

Taxation	547	(133)	(397)	(130)	(100)

(Loss)/profit for the year	(1,345)	600	994	347	264



Attributable to:

Equity holders of the parent	(1,340)	606	998	350	263

Minority interests	(5)	(6)	(4)	(3)	1

(Loss)/profit for the year	(1,345)	600	994	347	264



¹Research and development (gross)	(885)	(824)	(747)	(663)	(601)

²Underlying profit before taxation	880	800	705	593	364



Earnings per ordinary share:

Underlying	36.70p	34.06p	29.81p	24.48p	15.62p

Basic	(73.63)p	33.67p	57.32p	20.11p	15.56p



Payments to shareholders per ordinary share	14.30p	13.00p	9.59p	8.72p	8.18p


Balance sheet	2008 £m	2007 £m	2006 £m	2005 £m	2004 £m

Assets	15,229	11,459	10,798	9,627	8,419

Liabilities	(12,698)	(7,910)	(8,073)	(8,122)	(6,973)

	2,531	3,549	2,725	1,505	1,446



Called-up share capital	369	364	356	352	346

Reserves	2,153	3,173	2,362	1,147	1,096

Equity attributable to equity holders of the parent	2,522	3,537	2,718	1,499	1,442

Minority interests	9	12	7	6	4

	2,531	3,549	2,725	1,505	1,446


Cash flow	2008 £m	2007 £m	2006 £m	2005 £m	2004 £m

Cash inflow from operating activities	1,015	705	1,072	1,060	610

Cash outflow from investing activities	(648)	(572)	(469)	(289)	(237)

Cash (outflow)/inflow from financing activities	(221)	(473)	(122)	(443)	189

Increase/(decrease) in cash and cash equivalents	146	(340)	481	328	562


Net funds/(debt)	1,458	888	826	335	(149)