 And I want to tell you a little bit from my own experience about the success of the current framework program in Europe, and to hold out the challenge and the hope for the new framework program Horizon 2020. I've titled my talk, Industrial Technologies as an Engine of Growth. Governments have choices about how they intervene in these difficult times. They can throw money at failing banks. They can pay unemployed people to do nothing. Or they can invest in research. And I hope to state the case that investing in research creates jobs for the researchers themselves, creates investment in infrastructure and technology to do the research, but also creates a lasting legacy which can stretch 10 or 20 years into the future. The IP created by today's research program will become the products of tomorrow for not only this decade, but the decade to come. As your chairman has already said, we do not make cars. BMW make Rolls-Royce cars these days and do a very good job at it too. We are a power systems company, and perhaps the most important number on this chart is the 1.1 billion euros each year we invest in research and development. Around 10% of our total turnover are just under and almost equal to our profits, so you can believe that our shareholders take in research and development very seriously. Three key things I want to get over, one, that the existing framework, program Framework 7 and indeed its precursors have been a great success and a great help to European industry. Two, as the chairman said, I was a member of the high level group which defined the key emerging technologies for Europe, which as was said earlier by Rudolph are already being invested in, but will be a major part of the platform for Horizon 2020 and then to briefly look forward to Horizon 2020. So let me start by just telling you a little bit about my personal experience of the framework program. For Aeronautics it has been quite a remarkable growth. You can see back in the Framework 2 just 18 million euros a year invested in Aeronautics rising through the various framework programs so that by Framework 7 a total of 2.3 billion was invested and 114 million each year of that goes into the Clean Sky Public-Private Partnership. It's also important to recognize that this is not a free lunch for industry. Industry matches that investment with its own money usually on a 50-50 basis so we would not do it unless we believed it created value. The framework programs have a structure to them. At level 1 they encourage basic and fundamental research. At level 2 they encourage the application of that research. One of my colleagues once said there's only two types of research. You shouldn't talk about pure and applied. You should talk about applied and not yet applied. I'm very much a believer in that. And then at level 3 very large programs enable full industrial products to be developed and to come close to market but not to the market. That is not the job of the framework program to develop prototype products but certainly to allow demonstration of technology in full product form. You can see here quite a complicated chart and the usual alphabet soup that goes with European programs. The acronyms there are actually a mix of major European programs but also UK and German national programs. One of the successes I believe is the ability to fuse national funding, national programs with European programs to achieve the products of the future. And you can also see from this the sort of time scales we have to think on that really we are investing now in technology that may not be flying in an aircraft for 10 or 15 years in the future. An example of a previous level 2 program, ANTEL, Advanced Near Term Low Emissions Technology. This whole engine built by many partners including some of our major competitors. So one of the strengths of the European programs is that it brings people who normally compete in the marketplace together for the sake of research, particularly where that research is focused on making the environment better. I think we find it relatively easy to work together when it's about making the world a cleaner and better place for the future. This whole engine, 120 million pound program under the previous framework 6 and something like 15 kilometers of instrumentation wiring forced into that engine to make the measurements. Another program, Power Optimized Aircraft, allowed us to think about an engine of the future with much more electrical technology in it. Active magnetic bearings, electrical generators mounted on the inside of the engine itself in a very hot high temperature condition and again working with European partners to pull this technology together and demonstrate it at the whole engine level. The Clean Sky Joint Technology Initiative is a major European program. It was one of the first of the new public-private partnerships so-called Joint Undertaking JUs or Joint Technology Initiatives of which there are five. You can see the scale of the program, 1.6 billion euros of total investment, 12 lead companies but many other partners and run by industry. I sit on the board of Clean Sky and industry drives the program forward and is very focused on getting the results from that program. But not just big industry. Yes, the 12 big players leading it are large companies. We committed to the European Union that we would use at least 12% of the activity to go to SMEs. In reality, we measured it recently, it's 18%. So it's been a huge success at engaging SMEs from all over Europe. It requires letting something like 1,000 individual contracts to get those SMEs involved but it's certainly worth the effort. And for the engine sector, you can see that again it's focused on whole engine development, bringing technologies together and demonstrating them at the whole engine level. Some incremental technologies for today's engines and some radically different technologies for the future. But the key is to be able to do these things at full scale, at full size and really bring the technology to the fore and prove that it works not only effectively but also safely, which is a key part of the activity. And you can see the past success of the program in Rolls-Royce's own products. So these are the engines we have introduced into service on either Airbus or Boeing aircraft over the past 12 years. And each engine, thanks to technology that came out of the framework program, has made a step change in reducing carbon dioxide, reducing fuel burn, reducing oxides of nitrogen, other emissions and reducing the noise. Drawn as a simple graph like this, it all looks too easy. If I tell you that each spot on the chart represents over a billion euros of investment, then you can see it's not quite as easy as that might suggest. And looking to the future, the industry has recently got together to relaunch the Akari Initiative, the Advisory Council for Aviation Research in Europe, sponsored by the Commission, really the first of and the model for the technology platforms in Europe. So we had previously going back to the year 2000, our vision 2020, and now we've created a new vision for the year 2050. Rigorous environmental targets that everybody in the industry has signed up to and is driving towards for 2050, but without taking our eyes off those important targets for 2020. So just a word about key emerging technologies. As I said, this was, I think, a brave initiative by the Commission. It aimed to define the key technologies that would shape European industry for tomorrow. And Herbert von Bosz will tomorrow say much more about this. He has a session entirely devoted to it. So I'm just going to put up a couple of tasters, but Herbert will tell you much more about it. The first and important thing is that this was sponsored by not just one, but three commissioners. So it had a lot of attention. Tiani there for Enterprise, Nelly Crows for the Digital Europe, and represented by our head of cabinet, Mary Gagan Quinn, who was leading the research directorate in Europe. It focused on five key technologies for the future. Nanotechnology, micro-nanoelectronics, biotechnology, photonics, and advanced materials. But most importantly, and I think Herbert von Bosz himself should take some credit for this, it recognized the need that all of those needed the underpinning technology of advanced manufacturing. That really is the theme of today's conference. And as I say, Herbert was a major champion for that. Almost as important for me as the technologies themselves is this construct that came out of the high-level working group. We keep mentioning the value of death and the concept that the research programs in Europe can build a bridge across that valley is I think a valuable concept for the future. On the left-hand side, the first pillar holding up the bridge is the fundamental research, the research organizations, the universities have to do their work first before you have any technology to apply. So I think we can, this large-scale demonstration of technologies, integrated demonstration in real products and devices that shows that the technology actually works. But I think new to the framework thinking is the third leg of investing in industrialization of these technologies. So it's not enough just to demonstrate the technology, unless you create an industry that can bring it to the market, then the technology itself is a waste of time. This construct I hope will drive the thinking through framework 8 or Horizon 2020 as it's now called. So let me look at Horizon 2020 itself. I think you have to remember that the whole basis of the framework program is about collaborative research. It's industry, research associations, universities coming together to develop new technology, but also to pull it through to industry. It has a positive effect not only for industry already in Europe, but I think compared to the USA even, it creates a strong basis of research which will attract other people to invest in Europe. What we must hope, as one of the previous speakers said, is that the technology we create doesn't just leak out of Europe to be industrialized in China or America. It's important that European industry is able to take full advantage of it. And it has a strong focus on addressing market failures, particularly in industries like my own, where, as I said earlier, from developing a new material from a sticky black mess in a test tube to an advanced component flying in an aircraft can take 15 to 20 years. Normal funding investment mechanisms just can't span that period of time, so you do need government commission intervention to assist industry in getting through that market failure. We hope through the programs to create leadership in these emerging technologies, but also in the key technologies around us today. We hope to underpin the technology and help the transfer between sectors. Yours need a lead sector for any technology, but other people benefit from the spillover and spin out of these technologies so that things that start off in an aero engine can rapidly move into medical research or the automotive industry. And it's important that there should be a good structure, but also important that new areas of technology should be allowed to arise and gain funding as well. So the structure shouldn't be so rigid that people with new and vibrant ideas cannot get funding. I've already talked about the key emerging technologies, and these will be a major platform of the new Horizon 2020 program, and we hope we'll create a new competitive advantage for European industry. In my own area, both in aerospace, but also in marine transport where Rolls-Royce is also very active, there is a particular focus we are proposing on smart and green integrated transport, driving a more efficient form of transport for the future, driving environmental targets so that the impact of transport on our environment is reduced and driving competitiveness in European industry. The bill for that, as you can see, is quite impressive. A billion pounds a year over the billion euros a year over the seven years of the program, but we think a worthwhile investment. And one of the other themes, I've been a member of the Transport Advisory Group in Europe, one of the other themes we've been pushing for is what's called intermodality. So if you want to get from your home to our host, you shouldn't worry too much about the form of transport. The whole system should be as efficient as possible and bring you here in a way that meets your financial requirements, so it's cost effective, but also minimizes the impact on the environment. Within Rolls-Royce, we think about our technology in three time horizons, what we call Vision 5, Vision 10 and Vision 20. Vision 5 is the next generation of products already in development. There's really no room there for exciting research. You have to get on and apply very well proven and tested technology to those products that are going to go into service within the next five years. But in Vision 10, you can already be demonstrating the technology for the future and that's where these large programs at level two and level three in the framework really come to the fore. And for Vision 20, we can be working with our research partners in the research institutes and in the universities to bring together technologies that really can make step changes in the sort of engines and equipment we'll be looking up for the future. Just an example of those Vision 10 technologies again dominated by advanced manufacturing and advanced materials will come make engines lighter, more efficient and more effective for the future. So new materials like titanium aluminide, ceramic materials and composite materials will find their ways into the engines of the future along with advanced technologies and advanced manufacturing techniques. Looking beyond that, then we can envisage even more exciting engines for the future. Return to propellers. We didn't go away from propellers because they were inefficient. They are actually quite efficient ways of driving an aircraft. But originally, propellers couldn't fly high enough and they couldn't fly fast enough. With modern technology, we can create what's called an open rotor, a counter-rotating propeller that can propel an aircraft at today's speed and today's altitudes. But burning about 15 or 20% less fuel than an enclosed jet engine. And beyond that, there are even further game-changers being investigated, radically different shapes of aircraft for the future, radically different ways of burning the fuel in an aircraft and of putting together the components for an engine. All of these will be enabled and taken forward in Horizon 2020. So with that thought, I'll finish now.