Bae Systems Plc · LSE:BA.
Bae Systems — Investor Day (June 2023)
53 slides from Bae Systems's investor day presentation, Jun 15, 2023
Slide 1: BAE Systems Capital Markets Day - Welcome
1 BAE Systems Capital Markets Day ‐ Welcome Martin Cooper – 15 June 2023 CAUTIONARY STATEMENT Forward‐Looking Statements All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding the financial condition, results, operations
Slide 2: Welcome to BAE Systems Hägglunds
2 Welcome to BAE Systems Hägglunds In case of an emergency or if there is an accident 1. Evacuate according to plan 2. Evacuation routes 3. Assembly point 4. Defibrillators © BAE Systems Not export controlled per INC‐2023‐01659
Slide 3: CEO Welcome
3 CEO Welcome Charles Woodburn and Tom Arseneault © BAE Systems Not export controlled per INC‐2023‐01659
Slide 4: BAE Systems – Creating Long Term Value For Shareholders
4 BAE Systems – Creating Long Term Value For Shareholders Long term Sustainable Growth Significant Growing Global Future Record Investing in the Embedded Defence Technologies Backlog business Future Value Budgets Set for growth in: Order backlog of Sustainment, support US, UK, Europe , Innovating su
Slide 5: Platforms & Services
5 Platforms & Services Jeremy Tondreault © BAE Systems Not export controlled per INC‐2023‐01659
Slide 6: Platforms & Services Our footprint and our people
6 Major Site No. employees Platforms & Services Aberdeen Aiken 123 222 Our footprint and our people SWEDEN Anniston 389 Elgin 42 Falls Church 124 UNITED STATES Jacksonville 582 Örnsköldsvik Kingsport 873 Louisville 503 Karlskoga TURKEY (Joint Venture) Minneapolis 477 Aberdeen, SD Minneapolis, MN Nor
Slide 7: Platforms & Services Overview
7 Platforms & Services Overview 2022 Sales ‐ Business Mix Diverse Portfolio with Key Franchise Market Positions • Combat Vehicles • Artillery • Naval Weapon Systems • Munitions • US ship repair and modernization Customer Base • Home markets: US Army, Navy, Marine Corps; Swedish, UK and Turkish gover
Slide 8: Key Franchise Positions
8 Key Franchise Positions Combat Vehicles Artillery Infantry Fighting Personnel Carriers Support Amphibious Towed Mobile Armored Weapon Systems US Ship Repair & Munitions San Diego CA, Norfolk VA and Jacksonville FL Shipyards Naval Guns Missile Launchers Munitions Energetics © BAE Systems Not export
Slide 9: How the business has performed
9 How the business has performed • Margin expansion driven by focus on operational excellence resulting in program performance improvements in US combat vehicles and ship repair Growth • Sales growth and continued margin expansion paced by transition of US combat vehicles to Full Rate production and
Slide 10: Our imperatives
10 Our imperatives Drive Operational Excellence Advance Our Talent Pursue and Deliver Growth © BAE Systems Not export controlled per INC‐2023‐01659
Slide 11: Platforms & Services Business Structure
11 Platforms & Services Business Structure $0.1 bn 2022 Sales by Business $0.1 bn $0.2 bn $0.3 bn $0.7 bn Platforms & $2.4 bn Services $0.8 bn BAE Systems Hägglunds © BAE Systems Not export controlled per INC‐2023‐01659
Slide 12: Combat Mission Systems
12 Combat Mission Systems Industry leader in the design, development, manufacture, systems integration, and lifecycle support for combat vehicles and weapon systems Ground Combat Vehicles Weapon Systems • Armored Multi‐Purpose Vehicle • Naval gun systems • Bradley Infantry Fighting Vehicle • Advance
Slide 13: Ordnance Systems
13 Ordnance Systems Government‐Owned, Contractor‐Operated (GOCO) U.S. Army ammunition plants: Holston plant in Kingsport, Tennessee; and the Radford plant in Radford, Virginia • Explosives and propellants manufacturing • Facility sustainment and modernization • Energetics research and development ©
Slide 14: BAE Systems Hägglunds
14 BAE Systems Hägglunds Tracked vehicles supporting the Swedish government and international customers, including upgrade and modernization • Family of CV90 Infantry Fighting Vehicles: 17 variants across multiple user nations • Series of tracked, all‐terrain vehicles: BvS10 (armored) and Beowulf (u
Slide 15: BAE Systems Bofors
15 BAE Systems Bofors Leading provider of advanced land and naval weapons and precision‐guided munitions • Naval gun systems • 57 Mk3 (Mk110) • 40 Mk4 • Self‐propelled howitzers • ARCHER mobile howitzer • Munitions • BONUS • 3P © BAE Systems Not export controlled per INC‐2023‐01659
Slide 16: Supporting Ukraine
16 Supporting Ukraine 400 artillery systems, 600 vehicles and millions of munition rounds to Ukraine produced in whole or in part by P&S © BAE Systems Not export controlled per INC‐2023‐01659
Slide 17: Platforms & Services – Opportunity pipeline
17 Platforms & Services – Opportunity pipeline P&S well positioned for growth with sustained opportunity pipeline across combat vehicle, artillery, naval gun and ammunition portfolio Opportunity Comment US OMFV Optionally Manned Fighting Vehicle Ongoing pursuit of down‐select awards expected in 2023
Slide 18: Closing
18 Closing • Operational Excellence is at our core and continues to underpin our margin expansion performance • Transitioning US combat vehicles to Full Rate production and International awards pace continued margin expansion and sales growth • Providing substantial support to key customers supporti
Slide 19: BAE Systems Hägglunds – now and into the future
19 BAE Systems Hägglunds – now and into the future Tommy Gusfasson‐Rask © BAE Systems Not export controlled per INC‐2023‐01659
Slide 20: Agenda
20 Agenda • About BAE Systems Hägglunds – A history of innovations • Our vehicles • CV90 • BvS10 • Beowulf • Business performance © BAE Systems Not export controlled per INC‐2023‐01659
Slide 21: BAE Systems Hägglunds Building on over 100 years of innovations
21 BAE Systems Hägglunds Building on over 100 years of innovations • Start – 1899 when Johan Hägglund founded a carpentry factory. Since then the company has always adjusted and adapted to changed business climates and customer needs. • Hägglunds & Sons formed 1922. Over the years the company would
Slide 22: Over 60 years of experience in tracked vehicles
22 Over 60 years of experience in tracked vehicles… Based on experience from: SEP > 50 customer countries > 2.000 Turrets > 2.700 Armoured vehicles > 12.000 All-Terrain vehicles & civilian trains, buses and cars Turret M113 Turret LAV AMOS Mjölner APC 302 AAMC 701 CV90 MkI MkII MkIII MkIV ABL 941 Bv
Slide 23: …have put us where we are today!
23 …have put us where we are today! © BAE Systems Not export controlled per INC‐2023‐01659
Slide 24: CV90 Over 1,700 vehicles sold
24 CV90 Over 1,700 vehicles sold 152 CV90MkIV35 246 CV90MkIV30 December 2022 May 2023 $1.37 billion $2.2 billion © BAE Systems Not export controlled per INC‐2023‐01659
Slide 25: Stellar mobility
25 Stellar mobility • Stellar mobility – unique feel that highlights Hägglunds DNA. • https://www.youtube.com/watch?v=GDQVknWoc gc&list=PLhTnE0EbGPLnWo_McY0HCx50DhcGDb ReR&index=8&t=12s © BAE Systems Not export controlled per INC‐2023‐01659
Slide 26: BvS10 and Beowulf
26 BvS10 and Beowulf Over 1,400 and 163 vehicles sold respectively © BAE Systems Not export controlled per INC‐2023‐01659
Slide 27: New wins
27 New wins CV90 BvS10 Beowulf • CV90 Czech Republic, $2.2 billion • CATV BvS10 framework agreement • US Army's CATV, Cold Weather All‐ (UK, Germany, Sweden), $760 million Terrain Vehicle, $278 million • CV90 Slovakia, $1.37 billion • + first additional order Germany, $400 • CV90 MLU the Netherlands
Slide 28: Opportunities
28 Opportunities CV90 BvS10 Beowulf • CV90 Denmark MLU and New vehicles • CATV cooperation • Additional Beowulf US • CV90 Norway New vehicles • BvS10 Sweden • Beowulf Netherlands • CV90 Slovakia Additional vehicles • BvS10 Italy • Beowulf Sweden • CV90 Brazil, Greece, Italy, Romania • BvS10 Finland
Slide 29: Ukraine BAE Systems Hägglunds products
29 Ukraine BAE Systems Hägglunds products • CV90 – 51 CV9040C as Swedish military aid to Ukraine Best protected CV9040 (Mk0) in the Swedish CV90 fleet. Previously on international operations in Afghanistan and Liberia. • BvS10 – 28 BvS10 provided by The Netherlands to the Armed Forces of Ukraine Hig
Slide 30: Ramp to Rate Focus - managing profitable growth
30 Ramp to Rate Focus ‐ managing profitable growth Ramp to Rate work streams • Manufacturing Optimization • “Right” Sourcing (Industrial Cooperation and partners) • Facilities • External Development HUB • BvS10 supplier base • Project Management • Skilled Labor Workforce © BAE Systems Not export con
Slide 31: Summary – future sales
31 Summary – future sales Opportunities to enhance profile in coming years Chart not to Scale © BAE Systems Not export controlled per INC‐2023‐01659
Slide 32: Sustainable production – Net zero
32 Sustainable production – Net zero • Circular economy • Biggest wall mounted solar panel in Scandinavia. • New developments – sustainable production with net zero emission goal • Solar energy and geothermal heating. • Our goal is that the new facilities will be self‐sufficient in regards to electr
Slide 33: BAE Systems Bofors
33 BAE Systems Bofors Lena Gillström © BAE Systems Not export controlled per INC‐2023‐01659
Slide 34: Agenda
34 Agenda • Milestones • Munitions • ARCHER • Moving forward © BAE Systems Not export controlled per INC‐2023‐01659
Slide 35: Milestones
35 Milestones © BAE Systems Not export controlled per INC‐2023‐01659
Slide 36: Milestones in the history of Bofors
36 Milestones in the history of Bofors 1646 Bofors is founded 1883 First cannon delivery 1894 Alfred Nobel acquires Bofors 1936 40mm Anti‐Aircraft gun makes worldwide success 1947 First Proximity fuzes 1970 Bofors has appr. 10,000 employees 1986 Indian order of FH77 howitzer 2000 United Defence acqu
Slide 37: 2022 Sales by area for Bofors
37 2022 Sales by area for Bofors © BAE Systems Not export controlled per INC‐2023‐01659
Slide 38: Munitions
38 Munitions © BAE Systems Not export controlled per INC‐2023‐01659
Slide 39: BONUS
39 155 BONUS • Artillery‐launched, fire‐and‐forget munition capable of successfully combating armoured personnel carriers and self‐propelled guns, infantry fighting vehicles and main battle tanks. • Two sub‐munitions • Searching for targets within a given footprint, up to 32,000 square meters. • The
Slide 40: M982 EXCALIBUR
40 M982 EXCALIBUR • Designed to engage stationary targets with pinpoint accuracy • Range in excess of 50km. • Miss distance less than 2 meters regardless of range • Used to minimize collateral damage, for targets beyond the range of standard munitions • Can be programmed for airburst, point and dela
Slide 41: ARCHER Artillery System
41 ARCHER 155 ARCHER Artillery System © BAE Systems Not export controlled per INC‐2023‐01659
Slide 42: ARCHER Overview
42 ARCHER Overview Todays battlefield is characterised by a multitude of threats and challenges. The artillery has to be inherent flexible and solve a number of tasks. • Fast and effective fire support • Suppressive fire during longer periods of time • Keep pace with direct supported manoeuvre force
Slide 43: ARCHER Mobile Howitzer
43 ARCHER A fully automated, self‐propelled 155 mm howitzer designed for rapid deployment. Mobile Howitzer High rate of fire and a firing range in excess of 50 km. Loading, laying and firing is handled from inside the armoured cabin, offering protection for the crew. With less than 20 seconds in and
Slide 44: ARCHER Variants
44 ARCHER Variants 6x6 8x8 10x10 OPERATIONAL ONGOING INTEGRATION INITIAL DESIGN & VERIFICATION © BAE Systems Not export controlled per INC‐2023‐01659
Slide 45: Archer Shoot and Scoot video
45 Archer Shoot and Scoot video • https://www.youtube.com/watch?v=d8x8ITwd4V g&t=11s © BAE Systems Not export controlled per INC‐2023‐01659
Slide 46: Contracts to date
46 Contracts to date © BAE Systems Not export controlled per INC‐2023‐01659
Slide 47: Completed deliveries
47 Completed deliveries 48 systems to the Swedish customer Including: • Guns • Ammunition Resupply Systems • Spares, tools and replacement units • Training • Training equipment © BAE Systems Not export controlled per INC‐2023‐01659
Slide 48: Current Contracts 1/2
48 Current Contracts 1/2 • A total of more than 15 contracts with the Swedish Defence Material Administration (FMV) • ARCHER C (2022‐2025) – is a currently ongoing contract to integrate the Swedish next generation Battle Management System • ARCHER Maintenance & Sustainment, (2022‐ 2028) A multiyear
Slide 49: Current Contracts 2/2
49 Current Contracts 2/2 • ARCHER Divisional Artillery: (2023‐) A Cost Plus contract for the engineering efforts required to integrate ARCHER gun system onto a 8x8 wheeled military grade truck • ARCHER UK Rapid procurement support. (2023) This contract with FMV is to assist FMV in the sale of the AR
Slide 50: Moving forward
50 Moving forward © BAE Systems Not export controlled per INC‐2023‐01659
Slide 51: Moving forward
51 Moving forward • Firm Serial delivery contract for ARCHER C • Firm Serial delivery contract for ARCHER DivArt (48 systems) • UK Support contract • Ongoing campaign in Switzerland • Interest amongst a large number of countries, including UK, US, Ukraine © BAE Systems Not export controlled per INC‐
Slide 52: Speaker Panel Q&As
52 Speaker Panel Q&As © BAE Systems Not export controlled per INC‐2023‐01659
Slide 53: Acronyms
53 Acronyms • 3P Ammunition ‐ Pre‐fragmented, Programmable, Proximity‐ fused • GoCo ‐ Government‐Owned, Contractor‐Operated • AAV ‐ Amphibious Assault Vehicle • IFV ‐ Infantry Fighting Vehicle • ACV ‐ Amphibious Combat Vehicle • ISTAR ‐ intelligence, surveillance, target acquisition, and reconnaissa