The defence market represents a broad area of opportunity, estimated to be worth some £130 billion over the next 20 years. Our extensive portfolio of engines powers aircraft in all of the major military aviation categories, ranging from helicopters to combat aircraft, and transport to trainer aircraft.

In the year, we passed an important milestone by completing the assembly and test of the first Rolls-Royce production EJ200 engine for Eurofighter. This engine is a collaborative programme in which we have a 36 per cent share. The EJ200 has now made the transition from development to production. Rolls-Royce has a contract to participate in the manufacture of 1,500 engines for 620 aircraft.

We announced our participation in a six-nation, European team to produce the TP400 engine for the new Airbus A400M military transport aircraft. Rolls-Royce will be responsible for the low-pressure compressor and overall integration. The programme calls for up to 225 of the four-engined aircraft. This consolidates our position as a world leader in the transport sector, where we also power the Lockheed Martin C-130 series and Bell Boeing V-22 aircraft.

International cooperation and shared development are features of the defence industry. Rolls-Royce is participating in important programmes with major international partners in a number of key markets. The company's defence operation has become a genuine transatlantic business with three of its four largest programmes sponsored by the US Department of Defense. Among these is the Joint Strike Fighter, a US/UK programme for a new combat aircraft. Rolls-Royce is applying its unique technology and expertise, including short take-off and vertical landing capability, to assist both the Boeing and Lockheed Martin teams working on this project.

Rolls-Royce Turbomeca RTM322 engines have been selected for the NH90 helicopters ordered by Germany, Holland and France. This requirement will be worth an estimated £600 million. We forecast worldwide demand for nearly 4,500 gas turbine powered defence helicopters over the next ten years.