Bae Systems Plc · LSE:BA.

Bae Systems — Investor Day (November 2020)

48 slides from Bae Systems's investor day presentation, Nov 12, 2020

Slide 1: BAE Systems - Major programmes and markets presentation
BAE Systems - Major programmes and markets presentation 12 November 2020 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, plan
Slide 2: Agenda
2 Agenda • 14.00pm - Welcome and Introduction - Charles Woodburn • 14.05pm - Business and market update - Brad Greve • 14.10pm - Major programmes overview and video content • 15.00pm - Break • 15.10pm - Q&A panel session - moderated by Martin Cooper, Investor Relations Director • Charles Woodburn -
Slide 4: Positive outlook for the business
4 Positive outlook for the business • Well-positioned defence portfolio • Strong order backlog and programme visibility • Major programmes either stable or growing with opportunities • Defence and security – a key priority for Governments  Multi dimensional threat environment  Role to play in econ
Slide 7: Business Update
7 Business Update • Guidance for 2020:  Sales guidance unchanged  Underlying Earnings per share expected to be slightly higher than previous guidance  Cash flow guidance unchanged • Orders up vs expectation to date • US business - order flow strong • £1.3bn German Typhoon order awarded • Continue
Slide 8: Market Environment - United States
8 Market Environment - United States Market outlook remains positive  • US continues to represent the single largest defence market in the world, with BAE Systems a top ten US defence supplier • Strong and increasing order book, adding further resilience to the portfolio % Group Sales by Destinatio
Slide 9: Market Environment - United States
9 Market Environment - United States Market outlook remains positive  • Alignment to US National Defense Strategy priorities • Defence programme positions underpinning good growth • Key defence and national security programmes expected to remain stable under a new Administration Well positioned aga
Slide 10: Market Environment
10 Market Environment Saudi Arabia  • Defence and security remains a key priority • Managing licence position UK • 70%+ Saudi Nationals 22% US • Long standing support contracts 2019 43% Australia Full Year • Continue to support Vision2030 3% Sales by Destination Australia KSA RoW 13% • Recommitted
Slide 11: Major programmes overview
11 Major programmes overview Charles Woodburn Tom Arseneault Chief Executive President and CEO, BAE Systems, Inc. Copyright© 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 12: Key Franchises and Programmes
12 Key Franchises £46.1bn* Order Backlog; incumbent positions on key long and Programmes term programmes; opportunities predominantly on aircraft sales and support, electronic systems and land vehicles – Illustrative timeline Key programmes - Order Backlog, Pipeline/incumbent position, Opportunity F
Slide 13: F-35 – Key Facts
13 F-35 – Key Facts • Largest Defence Programme in the world Illustrative BAE Systems workshare • As a Tier 1 partner, we’re delivering up to 15% of each aircraft (excluding propulsion) • We run c.1 year ahead of Lockheed Martin • Major role in our home markets • Full rate production expected in 202
Slide 14: F-35 – build and support
14 F-35 – build and support Sales growth driven by: F-35 build and support Order Backlog, Pipeline/incumbent position (Air and Electronic • Move to full rate levels Systems) • Cycle of Electronic Warfare upgrades ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 (1) Dates reflect position at 1st January each year
Slide 16: Typhoon Support and Upgrade
16 Typhoon Support and Upgrade • We provide maintenance, support and training for aircraft in service • Working with our air force partners to achieve an innovative efficient service • We ensure operational requirements are met whilst driving value for money for our customers • We provide Typhoon su
Slide 17: Typhoon Support and Upgrade
17 Typhoon Support and Upgrade Order Backlog, Pipeline/incumbent position UK Typhoon Support Sales growth driven by: Qatar Typhoon Support • Sustainment increasing as more KSA Typhoon Support jets enter into service ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 (1) Dates reflect position at 1st January each ye
Slide 18: Typhoon Production
18 Typhoon Production Order Backlog, Opportunity Sales outlook driven by: Typhoon Support and upgrade • Kuwait and Qatar in backlog ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 • Germany 38 announcement will (1) Dates reflect position at 1st January each year extend backlog 2019 Group 5 Year Sales Revenues ou
Slide 20: KSA Support
20 KSA Support Order Backlog, Pipeline/incumbent position Sales outlook driven by: KSA Support • Incumbent defence programme ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 support positions – (1) Dates reflect position at 1st January each year Out of service dates 10 years + 2019 * 5 Year Sales Opportunity: Gro
Slide 21: Submarine Build in the UK – Key Facts
21 Submarine Build in the UK – Key Facts Dreadnought • MoD budget £31bn for 4 boats • Construction of the first two boats continues to advance • First boat due to enter service in early 2030s - approx. 2 decades of production ahead • Majority of scope currently cost plus under single source contract
Slide 22: Submarine Build in the UK
22 Submarine Build in the UK Order Backlog, Pipeline/incumbent position Sales outlook driven by: Dreadnought • Contracted Astute and ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 Dreadnought programmes Order Backlog, Opportunity • As Astute boats delivered in Astute/future coming years capacity submarine trans
Slide 24: Global Combat Ships - Key Facts
24 Global Combat Ships - Key Facts Highly capable and versatile multi-mission warship; All variants will share a common acoustically quiet hull and open systems architecture to support technological upgrades UK Type 26 – 8 ships Canada – 15 ships • First two ships, HMS Glasgow and HMS Cardiff • BAE
Slide 25: Global Combat Ship build
25 Global Combat Ship build Sales outlook driven by: Order Backlog, Pipeline/incumbent position, Opportunity • UK (8) and Australia (9) – first ship mid Type 26 2020s – 2 plus decades of build • Canada – Warship designer licence fee ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 and engineering support • Revenu
Slide 27: Electronic Combat Solutions
27 Electronic Combat Solutions Sales growth driven by: 2019 5 Year Sales • Decades of leadership in Group outlook designing, delivering and Revenues sustaining electronic warfare systems for the world’s most * Revenues reflect restated total following restructuring of Electronic Systems sector advan
Slide 28: Electronic Combat Solutions – Key Facts
28 Electronic Combat Solutions – Key Facts Critical capabilities • Passive threat detection and situational awareness • Autonomous and networked systems • Full spectrum electronic warfare • Precision geo-location and direction finding • Platform agnostic architectures support rapid upgrades of modul
Slide 29: Electronic Combat Solutions Video
29 Electronic Combat Solutions Video Electronic Combat Solutions Video Copyright© 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 30: Military Global Positioning System (GPS) business acquisition
30 Military Global Positioning System (GPS) business acquisition Sales growth driven by: Completed 5 Year Sales • Leading provider of mission acquisition outlook critical military GPS receiver on 31 July for: solutions • A pioneer in the market for more than 45 years • Advanced, hardened and secure
Slide 31: Military GPS business acquisition – Key Facts
31 Military GPS business acquisition – Key Facts • Integration proceeding, complementing Precision Strike & Sensing Solutions business within Electronic Systems • Design and manufacture advanced GPS receiver technology for commercial and military devices • Built-in functionality supports fielding ac
Slide 33: US Ship Repair
33 US Ship Repair Sales outlook driven by: Order Backlog, Pipeline/incumbent position US Ship Repair • Incumbent positions as leading provider of non-nuclear ship ‘20 ‘21 ‘22 ‘23 ‘24 2025 2030 2040 repair, modernisation, overhaul and conversions across Atlantic (1) Dates reflect position at 1st Janu
Slide 35: Combat Mission Systems
35 Combat Mission Systems Sales outlook driven by: Order Backlog, Pipeline/incumbent position, Opportunity • c.1,350 vehicles in backlog with M109 production continuing to ramp • Operating under contracts for long term programmes: M109, AMPV, ACV, AMPV Bradley, M88 • AMPV and ACV expected to transit
Slide 36: Combat Mission Systems – Key Facts
36 Combat Mission Systems – Key Facts M109 – Self-propelled Howitzer • Producing vehicles under 2020 Full Rate Production contract • US Army acquisition plan of 689 vehicles AMPV – Armored Multi-Purpose Vehicle • Low rate initial production underway, first LRIP vehicles delivered in second half of 2
Slide 38: Technology
38 Technology • We have a strong base and growth outlook from existing programmes • Advancing our technology strategy through increased investment, M&A and partnerships • Investing in and developing our technologies to provide a differentiating advantage • To drive further growth and sustain the bus
Slide 39: Tempest – Key Facts
39 Tempest – Key Facts • 2018 UK Combat Air Strategy launch set out a bold vision for the UK future combat air capability • Ambitious goal to create Tempest, a UK led International future combat air system • Pioneering new technology and staying ahead of evolving threats • Investing in people, skill
Slide 40: Factory of the Future – Key Facts
40 Factory of the Future – Key Facts • Our people have designed a first-of-its-kind, fully connected, digital factory • Created a connected, intelligent hub at our site in Warton, in the North West of England • Demonstrates how military aircraft can be built in the future • Recently started the manu
Slide 41: Tempest and Factory of Future Video
41 Tempest and Factory of Future Video Tempest and Factory of Future Video Copyright© 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 42: FAST Labs™ – Key Facts
42 FAST Labs™ – Key Facts FAST Labs collaborates to develop and implement discriminating technology capabilities in: • Advanced Electronics • Autonomy • Cyber • Electronic warfare • Sensors and processing Commercial CTO Model • Fuels innovation velocity • External Technology Scouting – discovers and
Slide 43: FAST Labs™ – Leveraging external technologies through scouting and partnering
43 FAST Labs™ – Leveraging external technologies through scouting and partnering with innovation ecosystem • Accelerating the pace of innovation and technology transition with a dedicated technology scouting team • Partnering with external innovation ecosystem drives rapid transition of disruptive c
Slide 45: Questions and Answer Session
45 Questions and Answer Session Panel: Charles Woodburn – CEO BAE Systems Brad Greve – CFO BAE Systems Tom Arseneault – President and CEO, BAE Systems, Inc. Copyright© 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 47: Summary
47 Summary • Defence business back to near normal activity levels • Strong customer relationships in our key markets • Defence and security remains a priority • Investing in technology aligned to customer priorities • Multi year growth visibility underpinned by order backlog • Focus on strong progra

BAE Systems — Investor Day (November 2020) on 6ix

Bae Systems — Investor Day (November 2020)

Slide 1: BAE Systems - Major programmes and markets presentation

Slide 2: Agenda

Slide 3: Welcome and introduction

Slide 4: Positive outlook for the business

Slide 5: COVID Video

Slide 6: Business and Market Update

Slide 7: Business Update

Slide 8: Market Environment - United States

Slide 9: Market Environment - United States

Slide 10: Market Environment

Slide 11: Major programmes overview

Slide 12: Key Franchises and Programmes

Slide 13: F-35 – Key Facts

Slide 14: F-35 – build and support

Slide 15: F-35 Video

Slide 16: Typhoon Support and Upgrade

Slide 17: Typhoon Support and Upgrade

Slide 18: Typhoon Production

Slide 19: Typhoon Support Video

Slide 20: KSA Support

Slide 21: Submarine Build in the UK – Key Facts

Slide 22: Submarine Build in the UK

Slide 23: Submarine Video

Slide 24: Global Combat Ships - Key Facts

Slide 25: Global Combat Ship build

Slide 26: Global Combat Ship Video

Slide 27: Electronic Combat Solutions

Slide 28: Electronic Combat Solutions – Key Facts

Slide 29: Electronic Combat Solutions Video

Slide 30: Military Global Positioning System (GPS) business acquisition

Slide 31: Military GPS business acquisition – Key Facts

Slide 32: GPS Video

Slide 33: US Ship Repair

Slide 34: US Ship Repair Video

Slide 35: Combat Mission Systems

Slide 36: Combat Mission Systems – Key Facts

Slide 37: Combat Mission Systems Video

Slide 38: Technology

Slide 39: Tempest – Key Facts

Slide 40: Factory of the Future – Key Facts

Slide 41: Tempest and Factory of Future Video

Slide 42: FAST Labs™ – Key Facts

Slide 43: FAST Labs™ – Leveraging external technologies through scouting and partnering

Slide 44: Break

Slide 45: Questions and Answer Session

Slide 46: Summary and Wrap Up

Slide 47: Summary

Slide 48: Thank you