ANNUAL REPORT 2007

Electronics, Intelligence & Support

Principal operations	Electronics, Intelligence & Support provides a variety of communications, electronic identification, navigation and guidance systems, network-centric warfare solutions and a broad range of support solutions, including major ship repair activities for the US Navy.
Main operating locations
Major markets	US, UK, Global
Key points from 2007	Continued leadership in the provision of electronic warfare systems New markets developing for the HybriDrive® propulsion systems Stable demand for ship repair services View Business group review

Land & Armaments

Principal operations	Land & Armaments provides design, development, production, through-life support and upgrade of armoured combat vehicles, tactical wheeled vehicles, naval guns, missile launchers, artillery systems and intelligent munitions.
Main operating locations
Major markets	US, UK, Sweden, South Africa, Global
Key points from 2007	High volume of vehicle reset and upgrade activity UK business returned to profitability Wheeled armoured vehicle successes Good progress in next-generation combat vehicle programmes View Business group review

Programmes & Support

Principal operations	Programmes & Support comprises the Group’s UK-based air, naval and underwater systems activities, the Integrated System Technologies business and a 50% interest in the Gripen International joint venture.
Main operating locations
Major markets	UK, Global
Key points from 2007	RAF Typhoons now operational Full six ship Type 45 contract awarded Launch of first of class Astute submarine Orders received for second and third Astute Class submarines Offshore Patrol Vessel arbitration settled View Business group review

International Businesses

Principal operations	International Businesses comprises the Group’s businesses in Saudi Arabia and Australia, together with a 37.5% interest in the pan-European MBDA joint venture and a 20.5% interest in Saab of Sweden.
Main operating locations
Major markets	UK/Europe, Middle East, Australia
Key points from 2007	Saudi Typhoon contract secured Investment in the Kingdom of Saudi Arabia continues Down-selection for the provision of vehicles for the Australian Defence Force Proposed acquisition of Tenix Defence announced in January 2008 View Business group review

HQ & Other Businesses

Principal operations	HQ & Other Businesses comprises the regional aircraft asset management and support activities, head office and UK shared services activity, including research centres and property management. View Business group review

Sales¹ by business group³ (%)

• Electronics, Intelligence & Support
• Land & Armaments
• Programmes & Support
• International Businesses

£15,710m

Sales⁴ for 2007

EBITA² by business group³ (%)

• Electronics, Intelligence & Support
• Land & Armaments
• Programmes & Support
• International Businesses

£1,477m

EBITA² for 2007