Sector Restatement

• Sectors as previously reported
• Organisational Changes
• Sector restatement movements - Sales
• Sector restatement movements - EBITA
• Sector restatement movements - 2006 half year
• Sectors Restated
• Reporting Requirements

Sectors as previously reported

	2006 Reported Full Year		2006 Restated *First Half
£m	Sales	EBITA	Sales	EBITA
Electronics, Intelligence & Support	4,007	429	2,090	260
Land & Armaments	2,115	168	892	76
Programmes	2,927	167	1,186	57
Customer Solutions & Support	3,180	477	1,462	215
Integrated Systems & Partnerships	1,748	113	798	57
HQ & Other Businesses	295	(147)	178	(65)
Intra-group	(507)		(230)
Total	13,765	1,207	6,376	600

* restated to reflect the disposal of Airbus in October 2006

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Organisational Changes

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Sector restatement movements - Sales

2006 full year

		Movements
Original sectors	£m	CS&S	IS&P	£m	New sectors
Electronics, Intelligence & Support	4,007			4,007	Electronics, Intelligence & Support
Land & Armaments	2,115			2,115	Land & Armaments
Programmes	2,927	1,149	539	4,615	Programmes & Support
Customer Solutions & Support	3,180	(3,180)
Integrated Systems & Partnerships	1,748		(1,748)
		2,149	1,279	3,428	International Businesses
HQ & Other Businesses	295			295	HQ & Other Businesses
Intra-group	(507)	(118)	(70)	(695)	Intra-group
Total	13,765	-	-	13,765	Total

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Sector restatement movements - EBITA

2006 full year

		Movements
Original sectors	£m	CS&S	IS&P	£m	New sectors
Electronics, Intelligence & Support	429			429	Electronics, Intelligence & Support
Land & Armaments	168			168	Land & Armaments
Programmes	167	138	37	342	Programmes & Support
Customer Solutions & Support	477	(477)
Integrated Systems & Partnerships	113		(113)
		339	76	415	International Businesses
HQ & Other Businesses	(147)			(147)	HQ & Other Businesses
Total	1,207	-	-	1,207	Total

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Sector restatement movements - 2006 half year

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Sectors Restated

	2006 Restated Full Year		2006 Restated First Half
£m	Sales	EBITA	Sales	EBITA
Electronics, Intelligence & Support	4,007	429	2,090	260
Land & Armaments	2,115	168	892	76
Programmes & Support	4,615	342	2,018	153
International Businesses	3,428	415	1,545	176
HQ & Other Businesses	295	(147)	178	(65)
Intra-group	(695)		(347)
Total	13,765	1,207	6,376	600

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Reporting Requirements

• IAS 14 Segment Reporting
  • Externally reportable segments based on internal management reporting
  • Internally reported segments are considered externally reported segments if they meet sales / EBITA / assets thresholds
  • Internally reported segments can be combined if they fail the threshold criteria but meet other criteria (nature of the products, production methods,customers, distribution and regulations)
• IFRS 8 Operating Segments (future requirement)
  • Additional requirement for externally reported sectors to be consistent with the internal structure using measures as reported to "chief operating decision maker"

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Related information

See also

• Corporate Governance
• Financial Calendar
• 2007 Annual Report
• Executive Biographies
• Media Contacts