Slide 1: 2024 Half Year Results
BAE Systems 2024 Half Year Results 1 2024 Half Year Results 1 August 2024 baesystems.com © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 2: Cautionary Statement
BAE Systems 2024 Half Year Results 2 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 plc and its strategy, plans and objec
Slide 3: 2024 Half year review: key messages
BAE Systems 2024 Half Year Results 3 2024 ‐ Half year review Charles Woodburn ‐ CEO Our 3 key messages today Full year guidance upgraded on all key metrics ‐ 1 Driven by strong operational and financial delivery 2 Significant strategic progress continues Enhanced visibility in the long term outlook
Slide 4: 2024 Half year review
BAE Systems 2024 Half Year Results 4 2024 – Half year review Record order backlog of £74bn – Full year guidance upgraded on all key metrics Positioned for good long‐term growth Increased Strong operational Strong top line and Disciplined capital investment in performance profit growth allocation bus
Slide 5: BAE Systems positioned for significant long-term value creation
BAE Systems 2024 Half Year Results 5 BAE Systems positioned for significant long‐term value creation Global reach Sustainable and visible revenue growth Diverse portfolio and multi‐domain capabilities Underlying margin progression Excellent backlog and opportunity pipeline High return on capital emp
Slide 6: Significant backlog and pipeline supports sustainable and visible medium-term sales growth
BAE Systems 2024 Half Year Results 6 Significant backlog and pipeline supports sustainable and visible medium‐term sales growth 2023 Sales: £25bn Backlog and pipeline/incumbent ~ £180bn Incumbent position position: ~£250+bn¹ examples • £30bn+ Electronic Maritime Systems 22% F35 Build, Upgrades and E
Slide 7: Significant growth drivers and opportunities over medium to long term
BAE Systems 2024 Half Year Results 7 Significant growth drivers and opportunities over medium to long term AUKUS Electronic Warfare / GCAP Precision Guidance / Space AUKUS Electronic Warfare / Precision Guidance / Space Munitions restocking (Europe &US) Hunter Class Frigates Combat Vehicles/Artiller
Slide 8: Continued long-term strategic progress
BAE Systems 2024 Half Year Results 8 Continued long‐term strategic progress AUKUS GCAP Space & Portfolio Mission Enhanced Systems © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 9: Space & Mission Systems
BAE Systems 2024 Half Year Results 9 Space & Mission Systems Tom Arseneault A Space and Defence Technology Leader © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 10: Space & Mission Systems Performance
BAE Systems 2024 Half Year Results 10 Space & Mission Systems Performance Key takeaways 30% growth in order backlog Pipeline supports medium‐term sales growth Key growth programmes • Sales stable H1 on $3.9bn Tactical Solutions • High‐end Munitions H1 – strong H2 Ground Solutions (JASSM, LRASM, etc)
Slide 11: Integration and synergy capture proceeding at pace
BAE Systems 2024 Half Year Results 11 Integration and synergy capture proceeding at pace Integration Synergy • Space & Mission Systems business • Cost synergies: on track to achieve expected established and contributing to near‐term $30m in cost reductions our world‐class portfolio • Revenue synergi
Slide 12: Key milestones and strategic wins
BAE Systems 2024 Half Year Results 12 Key milestones and strategic wins Achieved SatCom production Won ACX & OCX contracts on MethaneSAT launched 4 March WSF – M launched 11 April installation certification NOAA GeoXO program Monitoring global methane Weather System Follow‐On – Achieved STC (Supplem
Slide 13: Financial Review
BAE Systems 2024 Half Year Results 13 Financial Review Brad Greve ‐ CFO © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 14: 2024 half year financials
BAE Systems 2024 Half Year Results 14 2024 half year financials High Sales Earnings Cash Capital Demand Growth Growth Generation Allocation Orders Sales Underlying EBIT Free Cash Flow Dividend £15.1bn £13.4bn, +13% £1,393m, +13% £219m up 8% Order Backlog Underlying EPS Shareholder returns £74bn 31.4
Slide 15: Order intake
BAE Systems 2024 Half Year Results 15 Order intake Order intake £15.1bn ES P&S Air Maritime C&I £3.2bn £2.8bn £2.3bn £5.7bn £1.2bn SMS £0.7bn CV90 £0.9bn MBDA £1.3bn Hunter £4.6bn I&S £0.9bn Electronic Combat £0.6bn AMPV £0.6bn F‐35 £0.3bn Submarines £0.3bn Digital Intelligence £0.3bn C4ISR £0.5bn A
Slide 16: Sales
BAE Systems 2024 Half Year Results 16 Sales Group By reporting segment(1) £4.0bn £3.4bn £2.9bn £13.4bn £2.1bn +13% £1.2bn (constant currency) ES P&S Air Maritime C&I Variance: Constant Currency +13% +34% +13% +7% +14% +4% Variance: Reported +11% +31% +10% +6% +13% +2% (1) excludes HQ £85m (variance
Slide 17: Underlying EBIT / Return on Sales
BAE Systems 2024 Half Year Results 17 Underlying EBIT / Return on Sales Group By reporting segment(1) Return on Sales 10.4% 14.0% 10.4% 11.1% 7.8% 8.5% £473m £446m £1,393m £228m +13% £216m (constant currency) £101m ES P&S Air Maritime C&I Variance: Constant Currency +13% +24% +29% ‐1% +19% +7% Varia
Slide 18: Operating business cash flow
BAE Systems 2024 Half Year Results 18 Operating business cash flow Group By reporting segment (1) Cash conversion(2) 34% 39% ‐6% 162% ‐108% 16% £724m £474m £184m ‐£833m £16m £(13)m £(247)m ES P&S Air Maritime C&I Variance ‐£833m +£27m ‐£34m ‐£606m ‐£168m ‐£35m 1) Excludes HQ £(190)m (variance ‐£17m)
Slide 19: Net Debt
BAE Systems 2024 Half Year Results 19 Net Debt (£m, excluding lease liabilities) Free cash flow £219m 31 December Operating Business Interest Shareholder Acquisitions Other(2) 30 June 2023 Cash Flow & tax returns(1) & Disposals 2024 (1) Dividends £562m & share buyback £250m (2) Includes cash outflow
Slide 20: 2024 Upgraded Group guidance
BAE Systems 2024 Half Year Results 20 2024 Upgraded Group guidance(1) Guidance based on £1:$1.24, including the acquisition of Ball Aerospace, & the reduction in the stake in Air Astana Underlying Underlying 2024 Free Sales EBIT EPS Cash Flow +12% to +14% +12% to +14% +7% to +9% >£1.5bn Prev: +10% t
Slide 21: Capital allocation
BAE Systems 2024 Half Year Results 21 Capital allocation Investment in our people Capex to drive growth Investment in the business R&D increasing Dividend M&A Buyback Balance sheet strength and flexibility – maintain investment grade rating © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a r
Slide 22: What we look to achieve in the years 2024-26
BAE Systems 2024 Half Year Results 22 What we look to achieve in the 3 years 2024‐26 A value compounding framework Strong consistent programme Good top line growth Compelling performance predictable Invest to support growth & value compounding customer priorities Continued margin expansion model Por
Slide 23: Supplementary Information
BAE Systems 2024 Half Year Results 23 Supplementary Information © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 24: 2024 half year summary financials
BAE Systems 2024 Half Year Results 24 2024 half year summary financials Half Year Half Year Constant Average $ rate: June 2024 $1.26, June 2023 $1.23 2024 2023 Currency Reported Order Intake £15,115m £21,129m Sales £13,399m £12,018m +13% +11% Underlying EBIT (1) £1,393m £1,258m +13% +11% Return on S
Slide 25: Underlying earnings per share (pence)
BAE Systems 2024 Half Year Results 25 Underlying earnings per share (pence) ‐ 0.3 + 2.7 ‐ 0.4 31.4p ‐ 0.3 + 0.2 ‐ ‐ 0.1 29.6p 30 June FX Tax Share Acquisitions Underlying Underlying 30 June 2023 rate Buyback & Disposals EBIT Interest 2024 © 2024 BAE Systems. All Rights Reserved. BAE SYSTEMS is a reg
Slide 26: Electronic Systems
BAE Systems 2024 Half Year Results 26 Electronic Systems Business Description Financial Performance Electronic Systems, with 22,600 employees, comprises the US‐ and UK‐based Half Year 2024 2023 electronics solutions and the US‐based Space & Mission Systems business. The Sales $4,279m $3,186m teams d
Slide 27: Platforms & Services
BAE Systems 2024 Half Year Results 27 Platforms & Services Business Description Financial Performance Platforms & Services, with 11,900 employees, has operations in the US, Sweden Half Year 2024 2023 and UK, manufactures and upgrades combat vehicles, weapons and munitions, Sales $2,638m $2,333m and
Slide 28: Air
BAE Systems 2024 Half Year Results 28 Air Business Description Financial Performance Air, with 26,700 employees, comprises the Group’s UK‐based air build and Half Year 2024 2023 support activities for European and international markets, US programmes, Sales £4,009m £3,786m development of Future Comb
Slide 29: Maritime
BAE Systems 2024 Half Year Results 29 Maritime Business Description Financial Performance Maritime, with 28,500 employees, comprises the Group’s UK‐based maritime Half Year 2024 2023 and land activities, including major submarine, ship build and support Sales £2,929m £2,603m programmes, as well as o
Slide 30: Cyber & Intelligence
BAE Systems 2024 Half Year Results 30 Cyber & Intelligence Business Description Financial Performance Cyber & Intelligence, with 11,000 employees, comprises the US‐based Half Year 2024 2023 Intelligence & Security and UK‐headquartered Digital Intelligence business, and Sales $1,496m $1,427m covers t
Slide 31: 2024 half year summary by reporting segment
BAE Systems 2024 Half Year Results 31 2024 half year summary by reporting segment(1) Underlying Return Free Order Order Sales EBIT on Sales Cash Flow(2) Intake Backlog £m £m % £m £bn £bn Electronic Systems 3,383 473 14.0 184 3.2 11.6 Platforms & Services 2,085 216 10.4 (13) 2.8 12.2 Air 4,009 446 11
Slide 32: Upgraded three year free cash flow guidance
BAE Systems 2024 Half Year Results 32 Upgraded three year free cash flow guidance(1) including the acquisition of Ball Aerospace (3) 2020 2021 2022 2023 2024 2025 2026 2020(2) ‐ 22 : In excess of £3bn £5.2bn 2021 ‐ 23 : In excess of £5.5bn £6.4bn 2022 ‐ 24: In excess of £6bn £2.0bn £2.6bn >£1.5bn (p
Slide 33: Summarised balance sheet
BAE Systems 2024 Half Year Results 33 Summarised balance sheet (£m) 30 June 31 December 2024 2023 Intangible fixed assets 16,045 12,099 Tangible fixed assets 6,333 5,003 Investments 789 916 Working capital (4,739) (5,468) Pension surplus 578 229 Lease liabilities (1,825) (1,396) Tax assets & liabili
Slide 34: Reconciliation of earnings
BAE Systems 2024 Half Year Results 34 Reconciliation of earnings (£m / pence EPS) Half Year 2024 Half Year 2023 Income Reclass. EAI Reclass. Income Reclass. EAI Reclass. Statement interest & tax Other “Reported” Statement interest & tax Other “Reported” Operating Profit / Underlying EBIT 1,296 ‐ 97
Slide 35: Key drivers behind long-term growth outlook
BAE Systems 2024 Half Year Results 35 Key drivers behind long‐term growth outlook Opportunity Cash to set Diverse deploy Leading geographic disruptive footprint Leading defence technology franchises Order backlog Growing defence budgets Well‐positioned for good sustained top‐line growth Scope to fur
Slide 36: Multi-decade programmes with long-term embedded value
BAE Systems 2024 Half Year Results 36 Multi‐decade programmes with long‐term embedded value ‐ illustrative Concept and Low rate Full rate Ongoing sustainment, design production production support and upgrades Backlog Represents Just a Portion of Embedded Value Tempest Hawk F15 EW Bradley Dreadnought
Slide 37: Geographic diversity - a strength now and into the future
BAE Systems 2024 Half Year Results 37 Geographic diversity ‐ a strength now and into the future UK – 26% sales* • Submarine build • Ship build & support • Typhoon build & support • F‐35 (aft fuselage) & support • GCAP/Tempest • Digital Intelligence • UK Munitions Europe and RoW – 14% sales* Japan •
Slide 38: Multi year programme visibility underpinned by a £74bn backlog
BAE Systems 2024 Half Year Results 38 Multi year programme visibility underpinned by a £74bn backlog 2024 HY Sector Backlog Sector sales outlook Major Programme/Franchise Sales outlook(1) Electronic Combat Solutions ES Defence other ES $14.7bn ES Commercial Space & Mission Systems Combat Mission Sys
Slide 39: £74bn backlog + pipeline supports medium to long-term growth
BAE Systems 2024 Half Year Results 39 £74bn backlog + pipeline supports medium to long‐term growth Electronic Combat (incl F35) Electronic ES Defence other Systems (ES) ES Commercial Space & Mission Systems M109 Platforms & AMPV Services ACV US Ship Repair US Ordnance & Weapons Hagglunds & Bofors Te
Slide 40: Portfolio uniquely placed to address current and future threat environment
BAE Systems 2024 Half Year Results 40 Portfolio uniquely placed to address current and future threat environment Precision munitions AUKUS – pillar 1 and 2 Combat vehicles Global Combat Air Programme US FMS ‐ Combat vehicles USA Munitions restocking Asia – artillery/precision weapons Positive spendi
Slide 41: ESG Agenda evolving and progressing
BAE Systems 2024 Half Year Results 41 ESG Agenda evolving and progressing ‘We serve, supply and protect those who serve and protect us, in a corporate culture that is performance driven and values led’ • Environmental stewardship Addressing climate risks • Net Zero delivery • Biodiversity & nature •