Bae Systems Plc · LSE:BA.

Bae Systems — Investor Day (May 2011)

121 slides from Bae Systems's investor day presentation, May 17, 2011

Slide 2: Cautionary statement
Investor Day 2011 Cautionary statement: All statements other than statements of historical fact included in this document, including, without limitation, those regarding the financial condition, results, operations and businesses of BAE Systems and its strategy, plans and objectives and the markets
Slide 3: Safety and fire alarm information
Investor Day 2011  No planned practice alarms  If there is a fire, alarm sounds with announcement to evacuate  All automatic Fire Door Shutters will be activated separating the building to prevent fire from spreading and sprinklers will activate  Do not use lifts  Please leave from the front of
Slide 4: Agenda
Agenda 14:00 Ian King - Introduction 14.10 Linda Hudson - US Market Environment Services 14:30 Larry Prior - Services 15:00 John Gannon - US security Electronics 15:15 Tom Arseneault - Electronics 15:35 Q&A 15:45 Break Platforms 16:00 Bob Murphy - Land and Armaments 16:30 Nigel Whitehead - Programme
Slide 5: Introduction
Introduction  Company performing well Group sales by activity*  Conservative planning assumptions Platforms  Aggressive cost reduction  Platforms sustained Defence Services  Focus on Services and growth fast lanes 48%  Defence Services Electronic Services  Cyber & Intelligence Systems  Elect
Slide 6: Linda Hudson: BAE Systems Inc. Strategy
Linda Hudson BAE Systems Inc. Strategy © BAE Systems 2011/cleared for public release 5
Slide 7: BAE Systems, Inc. Senior Leadership Team
BAE Systems, Inc. Senior Leadership Team Office of the Linda Hudson Executive President & President & CEO Committee CEO BAE Systems, Inc. Bob Murphy Larry Prior Executive Vice Executive Vice President President Product Sectors Service Sectors Frank Pope Tom Arseneault Dave Herr John Gannon President
Slide 8: BAE Systems Inc
BAE Systems Inc  Coming off a strong 2010  Financial performance  Aligned organization to markets  Significant cost reductions  Performing in the challenging environment of 2011  Managed through budget uncertainties and continuing resolution  Continuing to reduce costs  Program performance a
Slide 10: US Business Environment
US Business Environment  DoD proposed FY12 base budget is essentially flat  Expecting pressures and further erosion  Affordability becomes primary acquisition objective  Transition from Gates to Panetta  OCO for Iraq and Afghanistan declines - world remains dangerous  Targeted services, intell
Slide 11: BAE Systems Inc Strategy
BAE Systems Inc Strategy  Reduce costs to improve competitive positions and profitability  Deliver superior performance to protect franchise positions  Drive organic growth in market fast-lanes  Acquire to strengthen positions and address adjacent markets  Divest non-core assets  Focus initiat
Slide 12: Doing Business in the US - Special Security Arrangement (SSA)
Doing Business in the US - Special Security Arrangement (SSA)  BAE Systems Inc. is a U.S. Company  SSA is binding agreement - BAE Systems plc, BAE Systems, Inc., and the DoD  Mitigates concerns associated with Foreign Ownership, Control and influence  Negotiated and overseen by Defense Security
Slide 13: BAE Systems Inc. way forward
BAE Systems Inc. way forward  Continue aggressive cost reduction initiatives  Reposition land and armaments to support future customer demand  Drive organic growth in fast-lanes  Grow military and commercial electronics  Grow support and services  Grow intelligence and security  Grow exports
Slide 14: Investor Day 2011
Investor Day 2011 14:00 Ian King - Introduction 14.10 Linda Hudson - US Market Environment Services 14:30 Larry Prior - Services 15:00 John Gannon - US security Electronics 15:15 Tom Arseneault - Electronics 15:35 Q&A 15:45 Break Platforms 16:00 Bob Murphy - Land and Armaments 16:30 Nigel Whitehead
Slide 16: The Strategic Environment
The Strategic Environment Rising Demand for Services  Increased operational tempo  Fewer new starts  Platforms in service longer  Increased requirement to maintain and modernize equipment  ISR: “Intelligence and information are the fire and maneuver of the 21st century” Opportunities for Growth
Slide 17: Services are at the Centre of the Group's Strategy
Services are at the Centre of the Group’s Strategy Our vision is to be the premier global defence and security company Our mission is to deliver sustainable growth in shareholder value through our commitment to Total Performance Our values are - Trusted, Innovative and Bold Our Strategy - Operate an
Slide 18: BAE Systems Services Business
BAE Systems Services Business Services represent 48% of BAE Systems sales today Platforms & Products Defense Services Electronic Systems Cyber & Intelligence The group has invested in services to drive growth © BAE Systems 2011/cleared for public release 18
Slide 19: Defense Services: Strengths Today
Defense Services: Strengths Today Well positioned in Non-Nuclear Ship Repair, Modernization, Conversion and Overhaul © BAE Systems 2011/cleared for public release 19
Slide 20: AEGIS Modernization: Opportunities tomorrow
AEGIS Modernization: Opportunities tomorrow FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 CRUISERS DESTROYERS Extend to cover Each Modernization Availability ~ $40M all DDGs Maintaining and modernizing the fleet ensures sustainable growth © BAE Systems 2011/cle
Slide 21: F-35 Lightning II
F-35 Lightning II Strengths Today  The largest ever military procurement contracts  30 year production program, 3000 aircraft  BAE Systems produces vital portions of the aircraft and electronic warfare capabilities Opportunities Tomorrow  Vital role in developing the F-35 Global Sustainment  50
Slide 22: US Air Force Advanced Pilot Training Family of Systems (T-X)
US Air Force Advanced Pilot Training Family of Systems (T-X) Strengths Today  BAE Systems Hawk Training Aircraft - over 900 aircraft; 18 Countries; over 2.5 million flying hours  F-35 lead-in trainer for the U.S. Navy, UK Royal Air Force and the Royal Australian Air Force Opportunities Tomorrow 
Slide 23: US Navy Training Aircraft Services and Support Bid
US Navy Training Aircraft Services and Support Bid T-34, T-44 & T-6 UK Harrier Line Pre 2002 - Before UK Harrier Pulse Line - After Lean Strengths Today  Lean Manufacture and Support Services for Military Aircraft around the world Opportunities Tomorrow  Logistics, Maintenance, and Supply Chain
Slide 24: Land: US Army Radford Army Ammunition Plant
Land: US Army Radford Army Ammunition Plant Strengths Today • Royal Ordnance heritage • Commitment to UK munitions business and capital investment • Holston Army Ammunition Plant- “State of the Art” production • Long term franchise position Opportunities Tomorrow • Operate Radford Army Ammunition Pl
Slide 25: Launch and Test Range
Launch and Test Range Strengths Today  Extensive experience in radar design, range and launch operations  Support of US space launches at both Cape Canaveral and Vandenberg AFB at an affordable cost Opportunities Tomorrow  Provide operation and maintenance (O&M) and sustainment services to US Air
Slide 26: Defense and Technical Services: Well positioned for Growth
Defense and Technical Services: Well positioned for Growth Full Life-Cycle  Facility management / training services  Maintenance / modification / modernization  Operational & fleet availability  Legacy platforms, current production, future systems Cross-Domain  Maritime  Air  Land  C4ISTAR B
Slide 27: Global Cyber and Intelligence Business
Global Cyber and Intelligence Business Ireland: Norkom UK: Detica Leading provider of counter‐fraud software to the Leading provider of security to the intelligence and international banking community security services USA: Intelligence & Security Based out of Washington and focus on servicing  Emp
Slide 28: Global Cyber and Intelligence Business Model
Global Cyber and Intelligence Business Model Federal – Civil Gov Gov Commercial Government Products Products Services Services Dual‐use Technologies and Dual‐use Technologies and Information Sharing Information Sharing  Government will increase  BAE Systems is positioned at  Secure government are
Slide 29: Growing Global Product Portfolio
Growing Global Product Portfolio TREIDAN™ New customers and new markets differentiates the Group’s service offerings © BAE Systems 2011/cleared for public release 29
Slide 30: Expanding Array of Customers
Expanding Array of Customers Secure SecureGovernment Government Government Government Telecoms Telecoms Financial FinancialServices Services Leveraging credentials in government to serve critical national infrastructure and financial services clients © BAE Systems 2011/cleared for public release 30
Slide 31: The Commercial Market Opportunity is Significant
The Commercial Market Opportunity is Significant  Growth in the global commercial security market is set to outpace growth in government expenditure  Driven by a threat that increasingly targets commercial interests Organised crime Border Counter-  There is a requirement for best-of-breed securit
Slide 32: Norkom and Detica NetReveal Product Capability
Norkom and Detica NetReveal® Software suite covers: Product Capability Portfolio of 120 major anti‐money global banking Enterprise Case Management laundering; sanctions customers filtering; watch list Anomaly Detection management; card Positions in more fraud; cheque fraud; than 100 countries, ident
Slide 33: A Growing Global Market for Cyber & Intelligence
A Growing Global Market for Cyber & Intelligence  Substantial, resilient and growing  Driven by an evolving threat  Increasing political awareness and demand for security  Market is still being shaped  BAE Systems will help make the market and set requirements  Secure government, federal – civ
Slide 34: John Gannon: Intelligence & Security Sector
John Gannon Intelligence & Security Sector - Investing in growth and competitiveness © BAE Systems 2011/cleared for public release 34
Slide 35: Intelligence & Security Sector
Intelligence & Security Sector Investing in growth and competitiveness GLOBAL PRESENCE HEADQUARTERS: ARLINGTON, VA ~7,200 EMPLOYEES  CALIFORNIA  INDIA ~1220 CURRENT OR  COLORADO  GERMANY FORMER MILITARY  MARYLAND  JAPAN  NEW HAMPSHIRE  MIDDLE EAST  NEW YORK  SOUTH ASIA  WASHINGTON D.C  S
Slide 36: Intelligence & Security Sector: Core capabilities
Intelligence & Security Sector Core capabilities Analytics Targeting Analytics Targeting Knowledge & Knowledge & Data Data Cybersecurity Cybersecurity & Support & Support to to Geospatial Geospatial & & ISR ISR Management Management Operations Operations  Advanced  All-source  Image  IT infrastr
Slide 37: Intelligence & Security Sector: Market environment
Intelligence & Security Sector Market environment With areas of growth  Geospatial / full motion video Tighter market, but…  Advanced analytic training  Multi-INT fusion  Cybersecurity  Sharpen focus on execution  Increase efficiencies & competitive advantage Stiffer Competition, but we…  Bui
Slide 38: Intelligence & Security Sector: Strategy for growth
Intelligence & Security Sector Strategy for growth Target markets of higher growth potential  Emerging needs from new threats  Open source analysis  Full motion video & multi-INT fusion  Predictive analytics  Next Generation Desktop/analyst tools Grow into new and adjacent customers in the inte
Slide 39: Intelligence & Security Sector: Focus areas for investment
Intelligence & Security Sector Focus areas for investment © BAE Systems 2011/cleared for public release 39
Slide 40: Focus areas for investment: Invest in the business
Intelligence & Security Sector Focus areas for investment Invest in the business  Focus on organic growth  Build the top line, while guarding the bottom line  Invest in human capital - leadership/skills  Strategically align organization and leaders for new markets  Increase investment in the fr
Slide 41: Focus areas for investment: Invest in new strategic capabilities
Intelligence & Security Sector Focus areas for investment Invest in new strategic capabilities  Global Analysis Tradecraft Advancement Center (GTAC)  Training our analysts with real-world material - Yemen  Activity-based intelligence management & exploitation  Linking patterns of behavior and se
Slide 42: Focus areas for investment: Pursue acquisitions
Intelligence & Security Sector Focus areas for investment Pursue acquisitions in:  Cybersecurity  Identity management  Knowledge management © BAE Systems 2011/cleared for public release 42
Slide 43: The customer is key
Intelligence & Security Sector The customer is key…  An ISS engineer in Reston, VA received praise for his participation in a demo video briefing to the Director of the National Geospatial-Intelligence Agency (NGA) and the Vice Chairman of the Joint Chiefs of Staff. The director said the video repr
Slide 44: Tom Arseneault: Electronics
Tom Arseneault Electronics - Investing in technology and growth © BAE Systems 2011/cleared for public release 44
Slide 45: Electronics Markets
Electronics Markets Tactical Communications 8% revenue Power Management $12B market Intelligence, Surveillance & & Energy Reconnaissance 4% revenue 16% revenue $0.6B market $6.1B market Technology Management & Deep Mission Understanding Commercial Electronic Avionics Warfare 11% revenue $6B market 3
Slide 46: Electronics Market Footprint
Electronics Market Footprint 12,500 Employees $4.6B Revenue 23 Sites © BAE Systems 2011/cleared for public release 46
Slide 47: How we will grow
How we will grow  Exploiting areas of continuing high demand in defense  Pursuing large opportunities in core segments  Investing in the technology to takeaway market share  Balancing portfolio with commercial avionics and power management  Leveraging strengths internationally © BAE Systems 201
Slide 48: Exploiting areas of Continuing High Demand in defense
Exploiting areas of Continuing High Demand in defense © BAE Systems 2011/cleared for public release 48 © BAE Systems 2011/cleared for public release 48
Slide 49: Persistent Surveillance
Persistent Surveillance © BAE Systems 2011/cleared for public release 49 49 © BAE Systems 2011/cleared for public release
Slide 50: Communications Electronic Attack
Communications Electronic Attack © BAE Systems 2011/cleared for public release 50 50 © BAE Systems 2011/cleared for public release
Slide 51: Reduced Size IFF Transponder
Reduced Size IFF Transponder © BAE Systems 2011/cleared for public release 51 © BAE Systems 2011/cleared for public release 51
Slide 52: Reduced Size IFF Transponder
Reduced Size IFF Transponder © BAE Systems 2011/cleared for public release 52 © BAE Systems 2011/cleared for public release 52
Slide 53: Small Adaptable Link 16
Small Adaptable Link 16 © BAE Systems 2011/cleared for public release 53 © BAE Systems 2011/cleared for public release 53
Slide 55: Pursuing large opportunities in core segments
Pursuing large opportunities in core segments © BAE Systems 2011/cleared for public release 55 55
Slide 56: Next Gen Jammer
Next Gen Jammer © BAE Systems 2011/cleared for public release 56 © BAE Systems 2011/cleared for public release 56
Slide 57: Common Infrared Countermeasure
Common Infrared Countermeasure © BAE Systems 2011/cleared for public release 57 57 © BAE Systems 2011/cleared for public release
Slide 58: Investing in technology to takeaway market share
Investing in technology to takeaway market share © BAE Systems 2011/cleared for public release 58 © BAE Systems 2011/cleared for public release 58
Slide 59: MicroIR products: Firefighting
MicroIR products: Firefighting © BAE Systems 2011/cleared for public release 59 © BAE Systems 2011/cleared for public release 59
Slide 60: MicroIR products: Thermography
MicroIR products: Thermography © BAE Systems 2011/cleared for public release 60 60 © BAE Systems 2011/cleared for public release
Slide 61: MicroIR products: Thermal Weapon Sights
MicroIR products: Thermal Weapon Sights © BAE Systems 2011/cleared for public release 61 © BAE Systems 2011/cleared for public release 61
Slide 62: MicroIR products: Remote Weapon Sights
MicroIR products: Remote Weapon Sights © BAE Systems 2011/cleared for public release 62 62 © BAE Systems 2011/cleared for public release
Slide 63: Fairchild Imaging Acquisition
Fairchild Imaging Acquisition © BAE Systems 2011/cleared for public release 63 63 © BAE Systems 2011/cleared for public release
Slide 64: Fairchild Imaging Acquisition
Fairchild Imaging Acquisition © BAE Systems 2011/cleared for public release 64 64 © BAE Systems 2011/cleared for public release
Slide 65: Balancing portfolio with Commercial Avionics and Power Management
Balancing portfolio with Commercial Avionics and Power Management © BAE Systems 2011/cleared for public release 65 65 © BAE Systems 2011/cleared for public release
Slide 66: Commercial Avionics
Commercial Avionics © BAE Systems 2011/cleared for public release 66 © BAE Systems 2011/cleared for public release 66
Slide 67: HybriDrive: Bus
HybriDrive: Bus © BAE Systems 2011/cleared for public release 67 © BAE Systems 2011/cleared for public release 67
Slide 68: HybriDrive: Long haul
HybriDrive: Long haul © BAE Systems 2011/cleared for public release 68 © BAE Systems 2011/cleared for public release 68
Slide 69: Leveraging strengths internationally
Leveraging strengths internationally © BAE Systems 2011/cleared for public release 69 © BAE Systems 2011/cleared for public release 69
Slide 70: Digital Electronic Warfare System
Digital Electronic Warfare System © BAE Systems 2011/cleared for public release 70 © BAE Systems 2011/cleared for public release 70
Slide 71: Summary
Summary  Innovative technology management, coupled with deep mission understanding, provides focus for investments resulting in responsive product offerings.  We will grow by:  Exploiting areas of continuing high demand in defense  Pursuing large opportunities in core segments  Investing in tec
Slide 73: Agenda
Agenda 14:00 Ian King - Introduction 14.10 Linda Hudson - US Market Environment Services 14:30 Larry Prior - Services 15:00 John Gannon - US security Electronics 15:15 Tom Arseneault - Electronics 15:35 Q&A 15:45 Break Platforms 16:00 Bob Murphy - Land and Armaments 16:30 Nigel Whitehead - Programme
Slide 75: Playing Through The Current Cycle
Playing Through The Current Cycle… $B % ROS 12 10 8 6 4 2 Portfolio well positioned for next cycle © BAE Systems 2011/cleared for public release 75
Slide 76: Restructuring the Business
Restructuring the Business… Improved Competitive Position 76 © BAE Systems 2011/cleared for public release
Slide 77: Vehicle Portfolio Positioned for Future Growth
Vehicle Portfolio Positioned for Future Growth Portfolio positioned to address future key customer priorities © BAE Systems 2011/cleared for public release 77
Slide 78: Combat Vehicle Mix Reflects Withdrawal from Iraq & Afghanistan
Combat Vehicle Mix Reflects Withdrawal from Iraq & Afghanistan Business Drivers Through 2015 • Bradley Transition from Reman to OEM • KSA Opportunity • GCV or Further Bradley Evolution • CV-90 Export • Canada/Norway • AMPV • Continued Growth in Platform Service & Support GCV and CV-90…the catalyst f
Slide 79: TWV Portfolio shifts from Medium to Light
TWV Portfolio shifts from Medium to Light Business Drivers Through 2015 • Transition From MRAP and FMTV in 2011 • JLTV Opportunity • On 2 of 3 TD Teams • MEC-V Opportunity • Strong Smart V Product Offering JLTV & MEC-V represent the U.S. Army’s Future TWV Emphasis © BAE Systems 2011/cleared for publ
Slide 80: New Combat Vehicle OEM Growth Drivers
New Combat Vehicle OEM Growth Drivers Bradley Fighting Vehicle Ground Combat Vehicle CV-90 JLTV Kingdom Of Saudi Arabia Army’s #1 Priority Canada & Norway Strong Competitive Position © BAE Systems 2011/cleared for public release 80
Slide 81: Upgrading Legacy Combat Vehicle Platforms
Upgrading Legacy Combat Vehicle Platforms PIM Armored Multi-Purpose BRADLEY Vehicle (AMPV) Army’s 3rd Ground Priority Future Upgrades Continue Funded, Supported and AMPV has Broad Support to Emphasized by Sec Gates Moving Forward Replace M-113 Fleet Strongly Supported by the Army We have a Resilient
Slide 82: Invested to position for future LTWV Programs
Invested to position for future LTWV Programs JLTV MEC-V Competition Ongoing Army’s 2nd Ground Priority We are on 2 of 3 TD Teams Competitive Executable Solution Leveraging Global TWV Capability © BAE Systems 2011/cleared for public release 82
Slide 83: New Opportunities in Amphibious Vehicles
New Opportunities in Amphibious Vehicles EFV CANCELLED AAV Upgrade Naval Amphibious Vehicle Marine Personnel Carrier Influencing Requirements Now Requirements TBD A Clear Priority Competitive Solution © BAE Systems 2011/cleared for public release 83
Slide 84: Growing Our Export Market
Growing Our Export Market M-777 Howitzer International TWV Joint Venture with FNSS India Worldwide Malaysia, Middle-East Broad set of Capabilities to Generate Global Growth © BAE Systems 2011/cleared for public release 84
Slide 85: Positioning for the Next Growth Cycle
Positioning for the Next Growth Cycle  Restructured the Business…Enhanced Competitive Position  Combat Vehicle Portfolio Positioned for Growth  Aggressively Pursuing New TWV Programs  Platform Services & Support Continues to Grow  Positioned to Grow Export Markets  Delivering Double Digit ROS%
Slide 86: Nigel Whitehead: Programmes and Support
Nigel Whitehead Programmes and Support 86 © BAE Systems 2011/cleared for public release
Slide 87: UK Market & Programmes
UK Market & Programmes PROGRAMMES & SUPPORT Sales * Order Book by Operating Group * Readiness & Sustainment • Number 1 supplier to UK MOD International 22% P&S Cyber and 52% EI&S Intelligence 12% L&A Platforms Electronic 14% Systems  BAE Systems is the No.1 supplier to the UK Ministry of Defence St
Slide 88: UK Defence and Security Market
UK Defence and Security Market TWO-TYPE FAST JET TWO AIRCRAFT ONGOING OPERATIONS FLEET CARRIERS RETAIN UK CAPABILITY SUPPORT FOR EXPORTS GROWTH IN CYBER HAWK © BAE Systems 2011/cleared for public release 88
Slide 89: UK Armed Forces - Some Key Deployments
UK Armed Forces - Some Key Deployments Operation Ellamy Submarine (Libya) Operations Operation Herrick Quick Reaction (Afghanistan) Alert UK remains a globally active nation with strong defence capability Atlantic Patrol Maritime Security World’s 4th largest defence budget © BAE Systems 2011/cleared
Slide 90: UK Armed Forces - BAE Systems' Supporting Role
UK Armed Forces - BAE Systems’ Supporting Role Operation Ellamy Submarine (Libya) Operations • Innovative Fast Jet availability contracts • Responsive to Urgent Operational Requirements • All Royal Navy Operation Herrick submarines built by Quick Reaction (Afghanistan) BAE Systems Alert • Through-li
Slide 91: Maritime - Platform Design & Build Programmes
Maritime - Platform Design & Build Programmes 2011 2015 2020 2025 Type 45 Destroyer SURFACE SHIPS Queen Elizabeth Class Aircraft Carrier Type 26 Frigate / Global Combat Ship* SUBMARINES Astute Class Attack Submarine Successor SSBN* * Currently in design phase SYSTEMS MISSION Through-life services fo
Slide 92: Maritime - Services
Maritime - Services SYNTHETIC TRAINING NAVAL BASE SERVICES SUPPORT TO DEPLOYED SHIPS © BAE Systems 2011/cleared for public release 92
Slide 93: Maritime - Outlook
Maritime - Outlook  Terms of Business Agreement: enables transformation of UK shipbuild capability  Through-life Support across the surface fleet  Type 26 Frigate: £127m contract to define and establish requirements for the Royal Navy. The Global Combat Ship is being developed with interest from
Slide 94: Military Air & Information - Platform Programmes
Military Air & Information - Platform Programmes Full through-  Typhoon enhancements to support UK requirements and exports life capability  Workshare agreement covering all phases of F-35 lifecycle, the world’s in information largest defence programme superiority and combat air  Investing £800m
Slide 95: Military Air & Information - Services
Military Air & Information - Services  Tornado ATTAC contract transformed the way RAF aircraft are supported Innovative availability  Typhoon TAS contract maximising aircraft availability and cost contracting for effectiveness combat aircraft  Applying UK experience to Salam Support Solution for
Slide 96: Military Air & Information - Outlook
Military Air & Information - Outlook F-35 POSITION UNMANNED SYSTEMS EXPORT SUCCESS & POTENTIAL TYPHOON CAPABILITY DEVELOPMENT F-35 POSITION © BAE Systems 2011/cleared for public release 96
Slide 97: Military Air & Information - Global Programmes
Military Air & Information - Global Programmes Norway Denmark Canada UK* Netherlands Germany *Typhoon Austria and F-35 Turkey USA Spain Italy* Israel KSA Typhoon Australia F-35 Hawk Over 900 Aircraft to 18 Air Forces © BAE Systems 2011/cleared for public release 97
Slide 98: Military Air & Information - Key Campaigns
Military Air & Information - Key Campaigns Poland USA Iraq Japan Qatar India* KSA* Oman* Malaysia * Typhoon and Hawk Typhoon Hawk F-35 BAE Systems will continue to be a key partner in the global delivery of F-35 © BAE Systems 2011/cleared for public release 98
Slide 100: Guy Griffiths: International Operating Group
Guy Griffiths International Operating Group © BAE Systems 2011/cleared for public release 100
Slide 101: International
International 2010 Sales* MBDA, India Air Astana KSA Platforms Australia Electronic Systems Readiness & Sustainment *As at 31.12.2010. Source: BAE Systems plc Annual Report and Accounts 101 © BAE Systems 2011/cleared for public release
Slide 102: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Magic Carpet Lightning Strikemaster Al Yamamah Tornado (Batch 1) Tornado (B2) Modernisation Hawk / PC9 Sandown Salam Typhoon Training, weapons & spares Industrialisation Other opportunities Manpower training & support services 102 © BAE Systems 2011/cleared for public release
Slide 103: Environment
Environment  Key to regional stability  Economic powerhouse  Global cultural centre  Rapidly increasing young population 103 © BAE Systems 2011/cleared for public release
Slide 104: Recent Achievements
Recent Achievements  Tornado sustainment  Successful programme implementation  Tactica  Vehicle deliveries  Typhoon  Successful entry to service 104 © BAE Systems 2011/cleared for public release
Slide 105: Prospects
Prospects  Land  Tactica  Substantial Bradley opportunity  Air  Typhoon assembly location change  Tranche 3 requirements  Increasing support for expanding fleet  Enhanced training  Industrialisation  Typhoon maintenance and upgrade facility 105 © BAE Systems 2011/cleared for public release
Slide 106: Australia
Australia  Environment of sustained economic growth  Defence White paper  Provides clear direction for defence and security requirements  With a clear roadmap for defence funding  BAE Systems well positioned  Largest Australian defence company  Key provider of capability in land sea and air 1
Slide 107: Major Programmes
Major Programmes Hawk Wedgetail LHD AWD M-113 107 © BAE Systems 2011/cleared for public release
Slide 109: Prospects
Prospects  Joint Strike Fighter  Support agreement  New naval opportunities  Growth in defence services provision 2010 Sales 2015 Sales Other R&S Other R&S 55% 45% 41% 59% 109 © BAE Systems 2011/cleared for public release
Slide 110: Developing New Home Markets
Developing New Home Markets - Drivers and Requirements Foreign investment and Developing Home Market management involvement in defence industry acceptable Country has economic strength and growth Leveraging Capabilities Country has increasing security requirements and defence needs Defence industry
Slide 111: Economic growth
Economic growth  India has one of the fastest growing sustainable economies .....  with significant growth in its defence budget 111 © BAE Systems 2011/cleared for public release
Slide 112: India security environment
Pakistan occupied Kashmir Shaksam Valley (PoK) Aksai Chin Naxal-affected India-China areas Instances of war in India-Pakistan War, 1947 Terrorism incidents since 2006 Disputed independent India’s Totalarea Affected States: 16 history India-Pakistan War, 1965 Total affected Districts: 195 Ludhiana Ch
Slide 113: Land
Land  Joint venture with Mahindra & Mahindra established  Significant large scale opportunities  Mine protected vehicle  Future Infantry Combat Vehicle  Artillery (M-777) 113 © BAE Systems 2011/cleared for public release
Slide 114: Air
Air  Long standing relationship with HAL  Jaguar license build since 1979  Hawk Indian Air Force and Indian Navy  Two contracts now totalling 123 aircraft  In-country assembly  HAL assembled aircraft deliveries underway  MMRCA  Typhoon down select confirmed  Potential for 126 aircraft 114 ©
Slide 115: Air
Air – Long standing relationship with HAL – Jaguar license build since 1979 – Hawk Indian Air Force and Indian Navy – Two contracts now totalling 123 aircraft – In-country assembly – HAL assembled aircraft deliveries underway – MMRCA – Typhoon down select confirmed – Potential for 126 aircraft 115 ©
Slide 116: Naval and Security
Naval and Security  Exploring opportunities for business in Naval sector  Exploring route to market opportunities in the National Security and Commercial Security sectors 116 © BAE Systems 2011/cleared for public release
Slide 117: Oman
Oman  Long standing relationship with BAE Systems and its legacy companies  70% of capability UK sourced eg:-  Jaguar  Hawk  Challenger  OPV’s  Typhoon  Progressing a significant new opportunity 117 © BAE Systems 2011/cleared for public release
Slide 118: Summary
Summary  Growth agenda in all IOG markets  Dependent on “pull-through”  Home Market Model 118 © BAE Systems 2011/cleared for public release
Slide 120: Summary
Summary  Company performing well Group sales by activity  Conservative planning assumptions Platforms  Aggressive cost reduction Defence Services  Platforms sustained 48%  Focus on Services and growth fast lanes Electronic Services  Defence Services Systems  Cyber & Intelligence  Electronics

BAE Systems — Investor Day (May 2011) on 6ix

Bae Systems — Investor Day (May 2011)

Slide 1: Investor Day

Slide 2: Cautionary statement

Slide 3: Safety and fire alarm information

Slide 4: Agenda

Slide 5: Introduction

Slide 6: Linda Hudson: BAE Systems Inc. Strategy

Slide 7: BAE Systems, Inc. Senior Leadership Team

Slide 8: BAE Systems Inc

Slide 9: BAE Systems Inc

Slide 10: US Business Environment

Slide 11: BAE Systems Inc Strategy

Slide 12: Doing Business in the US - Special Security Arrangement (SSA)

Slide 13: BAE Systems Inc. way forward

Slide 14: Investor Day 2011

Slide 15: Larry Prior: Services

Slide 16: The Strategic Environment

Slide 17: Services are at the Centre of the Group's Strategy

Slide 18: BAE Systems Services Business

Slide 19: Defense Services: Strengths Today

Slide 20: AEGIS Modernization: Opportunities tomorrow

Slide 21: F-35 Lightning II

Slide 22: US Air Force Advanced Pilot Training Family of Systems (T-X)

Slide 23: US Navy Training Aircraft Services and Support Bid

Slide 24: Land: US Army Radford Army Ammunition Plant

Slide 25: Launch and Test Range

Slide 26: Defense and Technical Services: Well positioned for Growth

Slide 27: Global Cyber and Intelligence Business

Slide 28: Global Cyber and Intelligence Business Model

Slide 29: Growing Global Product Portfolio

Slide 30: Expanding Array of Customers

Slide 31: The Commercial Market Opportunity is Significant

Slide 32: Norkom and Detica NetReveal Product Capability

Slide 33: A Growing Global Market for Cyber & Intelligence

Slide 34: John Gannon: Intelligence & Security Sector

Slide 35: Intelligence & Security Sector

Slide 36: Intelligence & Security Sector: Core capabilities

Slide 37: Intelligence & Security Sector: Market environment

Slide 38: Intelligence & Security Sector: Strategy for growth

Slide 39: Intelligence & Security Sector: Focus areas for investment

Slide 40: Focus areas for investment: Invest in the business

Slide 41: Focus areas for investment: Invest in new strategic capabilities

Slide 42: Focus areas for investment: Pursue acquisitions

Slide 43: The customer is key

Slide 44: Tom Arseneault: Electronics

Slide 45: Electronics Markets

Slide 46: Electronics Market Footprint

Slide 47: How we will grow

Slide 48: Exploiting areas of Continuing High Demand in defense

Slide 49: Persistent Surveillance

Slide 50: Communications Electronic Attack

Slide 51: Reduced Size IFF Transponder

Slide 52: Reduced Size IFF Transponder

Slide 53: Small Adaptable Link 16

Slide 54: APKWS

Slide 55: Pursuing large opportunities in core segments

Slide 56: Next Gen Jammer

Slide 57: Common Infrared Countermeasure

Slide 58: Investing in technology to takeaway market share

Slide 59: MicroIR products: Firefighting

Slide 60: MicroIR products: Thermography

Slide 61: MicroIR products: Thermal Weapon Sights

Slide 62: MicroIR products: Remote Weapon Sights

Slide 63: Fairchild Imaging Acquisition

Slide 64: Fairchild Imaging Acquisition

Slide 65: Balancing portfolio with Commercial Avionics and Power Management

Slide 66: Commercial Avionics

Slide 67: HybriDrive: Bus

Slide 68: HybriDrive: Long haul

Slide 69: Leveraging strengths internationally

Slide 70: Digital Electronic Warfare System

Slide 71: Summary

Slide 72: Q&A

Slide 73: Agenda

Slide 74: Bob Murphy: Land and Armaments

Slide 75: Playing Through The Current Cycle

Slide 76: Restructuring the Business

Slide 77: Vehicle Portfolio Positioned for Future Growth

Slide 78: Combat Vehicle Mix Reflects Withdrawal from Iraq & Afghanistan

Slide 79: TWV Portfolio shifts from Medium to Light