Rolls-Royce Group (RR) is an integrated power systems company operating in civil and defence aerospace as well as the marine and energy markets. RR generates close to 50% of revenues from after sales services, which are defensive in nature and provide a stable source of income. Service has a 31% share of the order book of GBP 61.4bn (5.5x 2010 revenue), which increases the financial visibility. RR is in a highly capital intensive industry with high recurring investments in R&D. This poses a high entry barrier which enables RR to protect the investments and margins. RR’s confidence is high and management expects revenue to double towards 2020, which corresponds to 7.5% annual average growth. A major risk is dependency on two major clients – Boing and Airbus. Any disruption in this relationship could have severe impact on earnings. Financial constraints of governments can impact the defence division, but defence spending growth has been growing fairly stable for years, so the risk seems low. RR and Daimler acquired Tognum in a joint 50:50 venture in an interesting cooperation.