22MEGGITT PLC REPORT AND ACCOUNTS 2010AT A GLANCE | BUSINESS REVIEW | CORPORATE GOVERNANCE | FINANCIAL STATEMENTS | SUPPLEMENTARY INFORMATION7% in 2010. Meggitt is exceptionally well-positioned to take advantage of this positive trend in the aftermarket, where our carbon brakes are common on these larger, high-cycle aircraft.Further opportunity exists with imminent Sukhoi SJ100 and COMAC ARJ21 service entries and a good start to the Mitsubishi MRJ70/90 programme.Business jetsThe business jet sector had a difficult 2010, with about half the number of aircraft being delivered compared to the 2008 peak. There continues to be a clear divide between larger and smaller platforms, with the larger models proving to be more resilient to the economic climate. In 2008, some 52% of Meggitt's business jet sales were made to larger aircraft, which afforded us some protection from the sector's subsequent fall. Larger aircraft will become even more important to Meggitt with the approaching first delivery of the Gulfstream G650, which hosts a wide array of our products.Business jet delivery forecast020092010201120122013201420152006004001,0008001,200Source: Meggitt Management Estimates8296656517688909961,048In smaller business jets, Embraer gained traction with a breakthrough NetJets order for 50 Phenom 300s. Most forecasters expect Embraer to win a significant share of this market, where Phenom 100/300 and Legacy 450/500 use our braking systems.2011 is perhaps too soon to expect overall OEM build rates to increase but fleet utilisation is well along the road to recovery, up 12% in the US in 2010, supporting our aftermarket-biased business model. In the mid-term (2012-2015), we expect business jet deliveries to return strongly, driven by a host of new jets with high Meggitt content, such as Gulfstream G250/G650, Learjet 85 and Cessna CJ4.Military aerospace and defenceMeggitt's military revenues account for 44% of our business, comprising fixed wing aircraft at 46%, rotary wing at 24%, land vehicles at 6% and other sectors, including training, at 24%. This diverse base is spread across a wide variety of platforms and our mix of OE (57%) and aftermarket (43%) is expected to give a strong revenue source in a challenging defence budget environment.Defence budgets around the world are under pressure, as governments rebalance spending to compensate for increased national debt. However, with active operational commitments in Afghanistan, policies are being implemented to mitigate any adverse impact on the front line, whilst modernising with new and updated existing equipment as a long-term operating solution. Meggitt estimates this market will yield organic revenue growth in the region of 2% over the medium-term due to our positions on key workhorses (e.g. Black Hawk), incoming platforms (e.g. Typhoon, F-35 JSF) and potential retrofits.Fighting fit Eurofighter Typhoon, the world's most advanced swing-role combat aircraft and Europe's largest collaborative military programme, supports over 100,000 jobs across 400 companies. In service with the RAF and the air forces of Germany, Italy, Spain and Austria, it has been ordered by the Kingdom of Saudi Arabia. Its landing gear sub-systems, including control and comprehensive monitoring, were integrated by Meggitt and the aircraft carries our air data transducer and crash survivable memory unit. Production continues until 2015 with opportunities for additional orders from its home nations and potential in the export market. Market reviewUS Department of Defense (DoD)For the US, which is by far the most important military market for Meggitt, projections continue to show a growth in spending for the next couple of years followed by reductions once the drawdown of forces from Afghanistan has taken place. The precise impact of these future spending reductions are still being determined but, in addition to the requirement for cost savings, there is a continuing requirement to adapt tools, equipment and training to Military revenue by OE and aftermarket Aftermarket 43% OE 57%JMT UK and Indisplay have joined forces to offer a much wider choice of furniture, flooring and display hire, as well as increased stock levels to meet all of your rental requirements. All with the same exceptional service that our customers already enjoy. www.jmtindisplay.co.uk +44 (0)1923 851580Service without frontierS SUPPLIERS & INSTALLERS OF FLAME RETARDANT CEILING AND DRAPE FABRICS T EL: 0208 591 4945 FAX: 0208 591 4139 Email:omegadrapes@aol.com www.omegadrapes.co.uk +44 (0) 20 8545 2492 | info@eepsafety.comSafe hands for your events Committed to the provision of high quality professionals and improving health and safety standards worldwide, ?e EEP Safety Team offers a comprehensive service. Whatever and wherever your event, we have a team experienced in both indoor and outdoor events. . Safety Officers . Aisle Marshals . Exhibitor Assistance & Guidance . Event Safety Planning & Risk Assesments . H & S documentation . Stand Approval Service . Floor Managers . Site Managers . Training . And More ...