Bae Systems Plc · LSE:BA.

Bae Systems — Investor Day (July 2014)

68 slides from Bae Systems's investor day presentation, Jul 10, 2014

  1. Slide 1: Air Domain Investor Briefing

    © BAE Systems 2014 AIR DOMAIN INVESTOR BRIEFING 10/11 July 2014

  2. Slide 2: Forward-looking statements

    © BAE Systems 2014 Air Domain Investor Briefing – 10/11 July 2014 All statements other than statements of historical fact included in these presentations, including, without limitation, those regarding the financial condition, results, operations and businesses of BAE Systems and its strategy, plans

  3. Slide 3: Ian King, Peter Lynas

    © BAE Systems 2014 Ian King Peter Lynas 2

  4. Slide 4: BAE Systems - Air Domain: Broadly Based Capabilities

    © BAE Systems 2014 BAE SYSTEMS - AIR DOMAIN BROADLY BASED CAPABILITIES • Pre-eminent combat aircraft position ‒ Typhoon export prime contractor ‒ Key F-35 partner • Deep support and upgrade provision • A leader in advanced airborne electronic systems • Growing commercial aero electronics activity •

  5. Slide 5: Agenda

    © BAE Systems 2014 Agenda Day 1 • Sales overview - Peter Lynas • Typhoon - Nigel Whitehead • Lunch • US overview - Jerry DeMuro • F-35 - Nigel Whitehead - Tom Arseneault • F-35 manufacture - Site tour • International Programmes - Guy Griffiths • UAS programmes - Nigel Whitehead Day 2 • Typhoon assem

  6. Slide 6: Sales by domain – 2014

    © BAE Systems 2014 Sales by domain – 2014* ‒ Broad spread across domains Defence Commercial 93% 7% Land 17% Air 51% Electronic systems 24% Weapons 6% Naval 25% Cyber 7% Platforms Support, 24% upgrades & other services * BAE Systems estimates 46% 5

  7. Slide 7: Sales by domain – Strong Air platform positions

    © BAE Systems 2014 Sales by domain – 2014* ‒ Strong Air platform positions Sales by aircraft platform Land 17% Tornado F-35 14% Hawk 6% 10% UAV 1% Air 51% Naval Typhoon Other Air 25% 31% platforms Weapons 25% Commercial 6% aerospace Cyber 7% 7% * BAE Systems estimates 6

  8. Slide 8: Sales by major programme

    © BAE Systems 2014 Sales by major programme ‒ Strong position from key programmes 2015 – 2019 sales* Saudi Support KSA Typhoon Air F-35 Programmes European Typhoon 67% Astute USN Ship Repair Successor Oman Land QEC Carrier Programmes 3% Type 26 RN support Naval UK MASS Programmes 30% Over the next 5

  9. Slide 9: Air domain sales – Anticipated revenue sustainment

    © BAE Systems 2014 Air domain sales* ‒ Anticipated revenue sustainment UAV / UCAV Hawk & training systems Commercial Weapons & Other Electronic Systems F-35 Typhoon Tornado 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 * BAE Systems estimates 8

  10. Slide 10: Nigel Whitehead

    © BAE Systems 2014 Nigel Whitehead 9

  11. Slide 11: BAE Systems Air Sector Overview

    © BAE Systems 2014 BAE SYSTEMS AIR SECTOR OVERVIEW July 2014 10

  12. Slide 12: BAE Systems in the Air Domain

    © BAE Systems 2014 BAE SYSTEMS IN THE AIR DOMAIN • Lead position in the UK • Pan-European programme partner • Key technology partner on F-35 • Major role across all markets • Growing international customer base • Positioning for future programmes 11

  13. Slide 13: Today's portfolio

    © BAE Systems 2014 Today’s portfolio 12

  14. Slide 14: Typhoon: A Great Track Record

    © BAE Systems 2014 TYPHOON A GREAT TRACK RECORD More than 400 aircraft delivered In service around the world with six air forces Oman soon to be number seven Operation Ellamy: • Proved Typhoon’s world class credentials • Illustrated our ‘End-to-End’ service offering 13

  15. Slide 15: Typhoon: Fit for the Future

    © BAE Systems 2014 TYPHOON FIT FOR THE FUTURE “Future Force 2020” – Typhoon capability enhancements Unrivalled swing-role performance with Meteor, Stormshadow, Paveway IV and Brimstone Superior in air combat to all other aircraft in its class • Quicker to climb, accelerate and intercept • Combat eff

  16. Slide 16: The development journey

    © BAE Systems 2014 The development journey 15

  17. Slide 17: Multi-role/swing role - weapon configurations

    © BAE Systems 2014 Multi-role/swing role - weapon configurations 16

  18. Slide 18: Eurofighter 2020 & beyond

    © BAE Systems 2014 Eurofighter 2020 & beyond 17

  19. Slide 19: Typhoon Support

    © BAE Systems 2014 TYPHOON SUPPORT • Working in partnership with our customers to ensure ongoing operational requirements are met • Maximises availability in a cost-effective way • Demonstrates commitment to through-life support • Typhoon Availability Service delivers: • Air and ground crew training

  20. Slide 20: Training Solutions

    © BAE Systems 2014 TRAINING SOLUTIONS • Providing effective, integrated Training Solutions • Hawk aircraft sold in 18 countries – the world’s most successful lead-in fighter trainer • Potential for future orders • US TX requirement is a massive opportunity 19

  21. Slide 21: Jerry DeMuro

    © BAE Systems 2014 Jerry DeMuro 20

  22. Slide 22: Inc. – a commanding breadth of capabilities

    © BAE Systems 2014 Inc. – a commanding breadth of capabilities ELECTRONICS MARITIME LAND INTELLIGENCE SUPPORT SERVICES 21

  23. Slide 23: Inc. air domain sales

    © BAE Systems 2014 Inc. air domain sales* * Estimated Sales 2014-2018 22

  24. Slide 24: Inc. air overview – extensive platform diversity

    © BAE Systems 2014 Inc. air overview – extensive platform diversity 23

  25. Slide 25: BAE Systems in the Air Domain

    © BAE Systems 2014 BAE SYSTEMS IN THE AIR DOMAIN • Lead position in the UK • Pan-European programme partner • Key technology partner on F-35 ‒ Major role across all markets • Growing international customer base • Positioning for future programmes 24

  26. Slide 26: Nigel Whitehead

    © BAE Systems 2014 Nigel Whitehead 25

  27. Slide 27: F-35 Lightning II

    © BAE Systems 2014 F-35 LIGHTNING II • Largest defence programme in the world • Requirement in excess of 3,000 aircraft • US-led with 8 International Participant Nations – UK, Italy, Netherlands, Australia, Canada, Denmark, Norway & Turkey • Already selected by Israel, Japan & South Korea • Lockheed

  28. Slide 28: Our expertise and technology applied to F-35

    © BAE Systems 2014 OUR EXPERTISE AND TECHNOLOGY APPLIED TO F-35 BAE Systems helped Lockheed Martin win versus Boeing in 2001 by bringing military aircraft expertise that is critical to the development, manufacture and support of the F-35 Lightning II • STOVL expertise • Advanced manufacturing • Syst

  29. Slide 29: F-35 team – BAE Systems contribution

    © BAE Systems 2014 F-35 team – BAE Systems contribution BAE Systems – Military Air & Information • BAE Systems – Electronic Systems ➔ Aft Fuselage ➔ Electronic Warfare System ➔ Horizontal & Vertical Tails ➔ Active Interceptor ➔ Vehicle Management Computer ➔ CV Wing Fold ➔ Fuel System ➔ Crew Escape S

  30. Slide 30: Tom Arseneault

    © BAE Systems 2014 Tom Arseneault 29

  31. Slide 31: F-35 team – BAE Systems contribution

    © BAE Systems 2014 F-35 team – BAE Systems contribution BAE Systems – Military Air & Information • BAE Systems – Electronic Systems ➔ Aft Fuselage ➔ Electronic Warfare System ➔ Horizontal & Vertical Tails ➔ Active Interceptor ➔ Vehicle Management Computer ➔ CV Wing Fold ➔ Fuel System ➔ Crew Escape S

  32. Slide 32: F-35 - Electronic Warfare System

    © BAE Systems 2014 F-35 - Electronic Warfare System 31

  33. Slide 33: F-35 - Fly-by-Wire flight control system

    © BAE Systems 2014 F-35 - Fly-by-Wire flight control system 32

  34. Slide 34: Tom Arseneault

    © BAE Systems 2014 Tom Arseneault 33

  35. Slide 35: BAE Systems, Inc. Aircraft Electronics Overview

    © BAE Systems 2014 BAE SYSTEMS, INC. AIRCRAFT ELECTRONICS OVERVIEW 34

  36. Slide 36: Aircraft Electronics: A Diverse Portfolio

    © BAE Systems 2014 AIRCRAFT ELECTRONICS: A DIVERSE PORTFOLIO • Products / programmes • Customer base • A $30bn addressable market • Well positioned across all aspects of aircraft requirements ‒ Flight & engine controls (propulsion and steering) ‒ Communications & Management Systems ‒ Defence & attac

  37. Slide 37: Military Aircraft Electronics

    © BAE Systems 2014 MILITARY AIRCRAFT ELECTRONICS • Flight Contols • FADEC Systems • Fly-by-Wire / Active Inceptor Systems • Electronic combat • Survivability & targeting • Intelligence, surveillance & reconnaissance solutions • Non-OEM combat aircraft upgrades 36

  38. Slide 38: Military Flight/Engine Controls & Communications

    © BAE Systems 2014 MILITARY FLIGHT/ ENGINE CONTROLS & COMMUNICATIONS • Flight controls (Fly-by-wire / active inceptor systems) • Identification friend or foe (IFF) • Link 16 • Q-Sight 37

  39. Slide 39: Electronic Combat

    © BAE Systems 2014 ELECTRONIC COMBAT Keeping the electromagnetic spectrum to our advantage • Electronic Attack • Electronic Protection • Electronic Warfare Support 38

  40. Slide 40: Survivability & Targeting

    © BAE Systems 2014 SURVIVABILITY & TARGETING • ATIRCM • CIRCM • APKWS 39

  41. Slide 41: Intelligence, Surveillance & Reconnaissance Solutions

    © BAE Systems 2014 Intelligence, Surveillance & Reconnaissance Solutions Actionable intelligence for our warfighters through electronic products and innovative technical solutions from the depths of the ocean to outer space, and everywhere in between • SIGINT sensors • EO/IR sensors • Multi-INT sens

  42. Slide 42: Non-OEM fighter upgrades (F-16)

    © BAE Systems 2014 Non-OEM fighter upgrades (F-16) 41

  43. Slide 43: F-16 global installed base

    © BAE Systems 2014 F-16 global installed base NORWAY POLAND TURKEY PAKISTAN (57) (48) (211) (58) U.A.E. ITALY (79) DENMARK (29) (62) NETHERLANDS (105) BELGIUM (71) KOREA U.S. AIR FORCE PORTUGAL (169) (645) (28) TAIWAN MOROCCO (146) (24) U.S. NAVY THAILAND (14) (58) GREECE OMAN (140) (12) SINGAPORE (

  44. Slide 44: Broad range of commercial aircraft products

    © BAE Systems 2014 Broad range of commercial aircraft products 43

  45. Slide 45: Commercial aircraft market

    © BAE Systems 2014 Commercial aircraft market $12b addressable market expected to grow at ~4-5% with strong deliveries in all segments ... Underpinned by global traffic growth and emerging economies of the Far East / China 44

  46. Slide 46: Platform Positions

    © BAE Systems 2014 Platform Positions 45

  47. Slide 47: Broad range of commercial aircraft products

    © BAE Systems 2014 Broad range of commercial aircraft products 46

  48. Slide 48: Engine & Flight Controls

    © BAE Systems 2014 ENGINE & FLIGHT CONTROLS • Premier FADEC design, development and support • State-of-the-art fly-by-wire controls on multiple platforms • Boeing 777, 747-8, 737MAX, 767 • Airbus A320 • Bombardier CRJ, Cseries, Global 7000/8000 • Embraer Legacy, KC-390 47

  49. Slide 49: Intelligent cabin systems for the future

    © BAE Systems 2014 Intelligent cabin systems for the future 48

  50. Slide 50: Commercial Aftermarket Support Services

    © BAE Systems 2014 COMMERCIAL AFTERMARKET SUPPORT SERVICES Building a worldwide network to support wheels up to wheels down customer service & support • Engine controls • Flight controls • Flight deck systems • Cabin systems & modifications 49

  51. Slide 51: International Operating Group

    © BAE Systems 2014 INTERNATIONAL OPERATING GROUP Guy Griffiths 50

  52. Slide 52: KSA regional map

    © BAE Systems 2014 KSA regional map 51

  53. Slide 53: BAE Systems in KSA - timeline

    © BAE Systems 2014 BAE Systems in KSA - timeline 52

  54. Slide 54: RSAF Force structure

    © BAE Systems 2014 RSAF Force structure Capability Type In service Service Comments entry F15C/D 81 1991 Typhoon 38 2009 72 ordered F15S To be Combat 68 2000 upgraded to F15SA F15SA 84 ordered 0 Est. 2015 in 2011 Tornado IDS 80 1993 53

  55. Slide 55: Contract structure

    © BAE Systems 2014 Contract structure SCOPE OF ACTIVITIES SBDCP •5 year £3.4bn contract agreed in 2012 for RSAF support through to 2016 •£1.6bn aircrew training contract awarded May 2012, including supply of 22 Hawk / 55 Pilatus PC-21 •Number of other spares, maintenance, weapons contracts Salam Typ

  56. Slide 56: SBDCP

    © BAE Systems 2014 SBDCP Technician Pilot Hawk training training procurement PC21 Tornado Weapons procurement upgrades Spares, repairs, Facilities logistics 55

  57. Slide 57: SALAM

    © BAE Systems 2014 SALAM Aircraft Capability supply upgrades Support Facilities Weapons 56

  58. Slide 58: BAE Systems in Oman - Timeline

    © BAE Systems 2014 BAE Systems in Oman - Timeline 1974 1977 • 32 Hunters • 27 Jaguars 2012 1994 • 12 Typhoon 1968 • 8 Hawk Mk 166 • 12 Hawk Mk 203 • 24 Strikemaster 1959 1993 • 4 Hawk Mk 103 Sultan of Oman Air Force Formed • 2 Scottish Aviation Pioneers • Percival Provost Percival Provost Strikemast

  59. Slide 59: Oman: Force structure

    © BAE Systems 2014 Oman: Force structure Capability Type In service Service entry Jaguar 5 1977 Hawk Mk 103 Hawk Mk 203 14 1994 Combat F16 11 2005 F16 0 2014 Typhoon 0 2017 58

  60. Slide 60: Oman growth prospects

    © BAE Systems 2014 Oman growth prospects Weapons Support Further aircraft 59

  61. Slide 61: Australia: Force Mix

    © BAE Systems 2014 Australia: Force Mix Capability Equipment In service Service entry Comments Type F/A – 18A 2021 55 1985 withdrawal F/A – 18F 24 2010 Combat EA – 18G 12 new build 0 Est. 2018 on order F – 35A 24 Jul 2014 • 2 under build 0 Est. 2018 • Further 70 FOC 2023 approved F/A – 18B 2021 16 1

  62. Slide 62: Missile Capability Trends

    © BAE Systems 2014 MISSILE CAPABILITY TRENDS Air-launched weapons providing a major contribution to operational advantage of Air Platforms • Total system capability of platform, sensors and weapons Major political and military drivers for Air-Launched weapons • Stand-off - for platform survivability

  63. Slide 63: Technology trends

    © BAE Systems 2014 Technology trends Warhead Programmable Seeker Intelligent Multi-mode Solid state Datalink Real time targeting Propulsion Ramjet / Hybrid motor Advanced Propellant 62

  64. Slide 64: Major Programmes

    © BAE Systems 2014 MAJOR PROGRAMMES Storm Shadow - long range strike • Strategic and hardened targets • Combat proven - Tornado [Typhoon] Dual-Mode Brimstone - unique precision • Fast moving targets with low collateral • Combat proven - Tornado [Typhoon / UAS] Meteor - step change in air superiority

  65. Slide 65: Aircraft platforms - MBDA weapons access

    © BAE Systems 2014 Aircraft platforms - MBDA weapons access Tornado Typhoon F-35 Rafale Gripen F-15/F-18 Air-to-Air Meteor Meteor Meteor Meteor Interception (@ Block 4) RF/IR MICA RF/IR MICA Air-to-Air ASRAAM ASRAAM ASRAAM IR MICA ASRAAM Combat (@ Block 3) Anti-Ship Marte ER Exocet AM39 Spear3 Deep

  66. Slide 66: UAS / FCAS

    © BAE Systems 2014 Nigel Whitehead UAS / FCAS 65

  67. Slide 67: UAS Development

    © BAE Systems 2014 UAS DEVELOPMENT • Sustaining and developing air systems engineering skills and capabilities • Taranis – most advanced aircraft ever built and flown by British engineers • Success of Taranis and Mantis programmes positions us as partner of choice for future UAS collaboration 66

  68. Slide 68: FCAS programme timeline

    © BAE Systems 2014 FCAS programme timeline 67

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