Bae Systems Plc · LSE:BA.

Bae Systems — Investor Day (November 2010)

120 slides from Bae Systems's investor day presentation, Nov 9, 2010

Slide 2: Cautionary statement
Investor Day 2010 Cautionary statement: 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 and objectives and the ma
Slide 3: Agenda
Agenda 14:00 Ian King - Introduction 14:15 Nigel Whitehead - UK market environment 14:25 Kevin Taylor - military air support in the UK - a demonstrable success 14:50 Martin Sutherland - UK security market, capabilities and opportunities 15:15 Q&A 15:40 Break 16:00 Linda Hudson - US market environmen
Slide 4: Safety
Safety No planned practice alarms (test alarm is on Monday) If you hear fire alarm, it will sound throughout the building All automatic Fire Door Shutters will be activated separating the building to prevent fire from spreading Do not use lifts Please proceed to the Assembly Area outside m
Slide 5: Agenda
Agenda 14:00 Ian King - Introduction 14:15 Nigel Whitehead - UK market environment 14:25 Kevin Taylor - military air support in the UK - a demonstrable success 14:50 Martin Sutherland - UK security market, capabilities and opportunities 15:15 Q&A 15:40 Break 16:00 Linda Hudson - US market environmen
Slide 7: Programmes & Support
Programmes & Support First Half First Half 2010 2009 SALES Sales £3,035m £2,399m Readiness & Sustainment Underlying EBITA £316m £277m Margin 10.4% 11.5% Platforms & Cyber & Products Security Order book £23.7bn £21.2bn Electronic Systems Cash flow £(50)m £(47)m © BAE Systems 2010 6
Slide 8: SDSR Summary
SDSR Summary Royal Air Force Royal Navy Army Security • Fast jet fleet based around • Nuclear deterrent (CASD) • Restructured Army (5 brigades) • Focus on counter-terrorism Typhoon and JSF • 7 hunter-killer submarines • One high readiness brigade • Review of civil liberties • Nimrod MRA4 not in-serv
Slide 9: SDSR Impact on BAE Systems
SDSR Impact on BAE Systems Military Air Solutions Maritime Global Combat Systems Detica • Typhoon capability upgrade • Queen Elizabeth Class build • Munitions partnering • Opportunity to access growth in • JSF ramp-up continues programme continues with two agreement continues cyber security funding
Slide 10: Overview of Programmes & Support
Overview of Programmes & Support Military Air Solutions Surface Ships Submarine Solutions Detica • Typhoon • Type 45 Destroyers • Astute class • Commercial • F-35 JSF • Queen Elizabeth Class carriers • Successor • Government • Tornado ATTAC •Type 26 Combat Ship • Hawk • Oman Corvette • Unmanned Air
Slide 11: Kevin Taylor - Air Sector Customer Support and Services Journey
Kevin Taylor Air Sector - Customer Support and Services Journey © BAE Systems 2010 10
Slide 12: Air Support - the evolution
Air Support - the evolution Hawk HIOS UK DLO Strategy Large Aircraft Support Tornado Harrier HPAC ATTAC Typhoon Availability F35 Service © BAE Systems 2010 11
Slide 13: Case Study - Tornado
Case Study - Tornado 2001 First pilot contract signed (GR4 Avionics), £45m 2001 Structural repairs, £35m 2002, F3 Foxhunter radar ‘power by the hour’ 8 year contract, £75m 2004,Secondary Power System 10 year contract, £76m 2005, Combined Maintenance and Upgrade (CMU) contract, £130m 2006
Slide 14: Availability Transformation: Tornado Aircraft Contract
Availability Transformation: Tornado Aircraft Contract A whole-aircraft end-to-end Tornado through-life support service that is: Sustainable Affordable Flexible Effective Gainshare for continuous improvement © BAE Systems 2010 13
Slide 15: Partnering in action
Partnering in action Tornado - Savings on Tornado support - £1.3bn 2001/2 – 2006/7* Reduced minor maintenance hours by 37%.* Hawk - Exceeding 95% dispatch reliability, saving 10% of cost Nimrod MR2 - 40% increase in aircraft availability, 8% Cost Reduction VC10 - Costs reduced by 20% and i
Slide 16: Case Study - Typhoon
Case Study - Typhoon CASE WHITE UK RAF partnered Entry into Service programme 17(R) Squadron and 29 Squadron based at Warton from December 2003 to July 2005 Aircrew and Groundcrew training Operational Evaluation Unit and Operational Conversion Unit Pilots and instructor pilots Over 180 g
Slide 17: Typhoon Availability Support (TAS)
Typhoon Availability Support (TAS) TAS contract signed - 4 March ‘09 TAS contract In-Service Date - 4 Sept ‘10 TAS service to extend to RAF Leuchars - 1 Oct ‘10 The five year TAS contract will transform the service approach to enable a reduction in fleet through life support cost of £2.5bn. Although
Slide 18: BAE R&S Assets
BAE R&S Assets Developed Enabling Capabilities Business and Solution Modelling Supply Chain and Logistics Service Excellence Underpinning Information Management Systems Global Awareness and Appetite Network of Best Practice Strategy (US / UK / Australia) © BAE Systems 2010 17
Slide 19: R&S Services: A Strategy for Growth
$110B+ Global R&S Market A Strategy for Growth OEM 3rd Party $25b $0.4b $23b Higher Value $6.6b Defend 2 Grow & expand integrated current OEM R&S Services offerings position 1 3 Develop a Lower Value strong R&S services footprint $1.5b $54b Grow R&S leadership across all segments through a unique co
Slide 20: Transferring the learning - Salam Support Service
Transferring the learning - Salam Support Service Building on the experience of ATTAC, HPAC & evolving TAS Integrated end-to-end aircraft availability service to deliver over 3 years: Forward and Depth Capability including AGE & Spares Training Devices and Trained RSAF Groundcrew in Forward
Slide 21: Air Sector Opportunities
Air Sector Opportunities UK - Typhoon, F-35, Extended Aircraft Service Provision, Emergent UAV Service Provision US - F-35, Tx, 3rd Party Provision Australia - F-35, 3rd Party Provision KSA - Salam, Hawk, 3rd Party Provision Worldwide $90bn of new combat air acquisition opportunities plus su
Slide 22: Summary
Summary BAE Systems has a track record of working in relationship with Customers around the world to deliver robust readiness and sustainment BAE Systems has differentiating capabilities that means we can deliver coherent and effective long term support solutions BAE Systems offers value for m
Slide 23: Martin Sutherland - Detica, UK security market
Martin Sutherland Detica - UK security market, capabilities and opportunities © BAE Systems 2010 22
Slide 24: Outline
Detica history and capabilities Outline UK market in security Longer term growth opportunities © BAE Systems 2010
Slide 25: Introduction to Detica
Introduction to Detica Detica provides specialist solutions to help public and private sector clients deliver effective services to citizens and customers while protecting them from harm • World-class expertise and innovation – creating intelligence from fast, complex, high- volume data at exception
Slide 26: Trusted partner with governments and industry
Trusted partner with governments and industry Key facts Core services • Over 30 years’ experience • Business and technical • Over 1,500 people services • Acquired by BAE Systems in • Systems integration and September 2008 to managed services transform our position in • Electronic solutions intellige
Slide 27: Delivering unique integrated solutions
Delivering unique integrated solutions An innovator and A global partner A solution integrator thought leader Cyber security and Business and technical consulting Operational decision-making information assurance Software and electronic Real-time situational Border and transportation systems awarene
Slide 28: Some of our key customers
Some of our key customers Secure SecureGovernment Government Government Government Telecoms Telecoms Financial FinancialServices Services © BAE Systems 2010 27
Slide 29: Some example projects
Some example projects Data Cyber defence for Defence Internet cleansing for acquisition Industrial Base telecoms Mobile data terminals IFB insurance fraud detection Example of the fraud rings detected HMRC tax evasion © BAE Systems 2010 28
Slide 30: Products underpin our capabilities
Products underpin our capabilities A revolution in detecting A major leap forward in High performance hardware serious organised crime advanced text analytics for the toughest problems Making the internet a Cost-effective compliance with Gaining a deeper insight into safer place for everyone data re
Slide 31: Outline
Detica history and capabilities Outline UK market in security Longer term growth opportunities © BAE Systems 2010
Slide 32: Nature of the threat
Nature of the threat UK National Security Strategy: Priority Risks Tier One Hostile attacks upon UK cyber space A major accident or natural hazard International terrorism affecting the UK or its An international military crisis interests Tier Two An attack on the UK or Overseas Territories An increa
Slide 33: National Security Strategy & Strategic Defence and Security Review
National Security Strategy & Strategic Defence and Security Review “In a world of startling change, the first duty of the Government remains: the security of our country.” Foreword to the National Security Strategy Key points What it means for us • Cyber security • Our IBP – Re-prioritisation of cyb
Slide 34: Comprehensive Spending Review
Comprehensive Spending Review “Britain’s deficit last year was the largest in its peacetime history at 11 per cent of GDP, and the state was borrowing one pound for every four it spent.” Introduction, Comprehensive Spending Review 2010 Key points What it means for us • Risk and compliance • Defence
Slide 35: Outline
Detica history and capabilities Outline UK market in security Longer term growth opportunities © BAE Systems 2010
Slide 36: The security strategy in summary
The security strategy in summary 1 Security in the UK • HMG remains concerned about security and integrity of systems (cyber, border, benefits system, national grid) • Spending cuts and focus on use of technology to drive efficiencies is an opportunity • Interest in creation of public-private sector
Slide 37: Core propositions for security franchises
Core propositions for security franchises STRATEGY REPOSITION IN THE UK INNOVATION INTERNATIONAL Communications Protecting Critical Cyber Intelligence-Led Financial Crime Intercept National Security Operations & Compliance & Surveillance Infrastructure A cyber solutions A global business for A globa
Slide 38: Vision of our business in 2015
Vision of our business in 2015 • Shift from domestic market focus to international focus – Our business will feel much more international – not necessarily a home market model • Need to build up export business so it becomes significantly bigger than UK business – We have a common set of tools, meth
Slide 40: Linda Hudson - US Defense Environment
Linda Hudson BAE Systems, Inc. US Defense Environment © BAE Systems 2010 39
Slide 41: U.S. Defense Budget – Official Plan
U.S. Defense Budget – Official Plan Future Years Defense Plan (FYDP) FY11-FY15 $694 $708 • World’s largest defense budget $666 $632 $648 • Base doubled since 2000 $616 • 45% of global total • 1.5 times that of next 10 combined $ Billions (Current) • 14 times that of United Kingdom • Base budget grow
Slide 42: U.S. Defense Budget – Factors to Consider
U.S. Defense Budget – Factors to Consider Future Years Defense Plan (FYDP) FY11-FY15 • Political shift • Economic pressures $694 $708 $666 • Deficit reduction $632 $648 $616 • Healthcare costs • World events $ Billions (Current) • Declining support for Afghanistan • Terrorist threats • Aging equipme
Slide 43: U.S. Defense Budget - Areas of Growth
U.S. Defense Budget - Areas of Growth Areas of above market growth remain inside a flattening budget • Readiness and Sustainment • Need to upgrade existing platforms as investment slows • Market significant at $100B per annum • Intelligence and Security • DoD and agency budgets expected to grow 7.5%
Slide 44: Project Evolution - Facing the Challenge
Project Evolution - Facing the Challenge Why? • Competitiveness Process Outcomes increasing • Analyze layers/ • Eliminated one layer of • Contract decisions spans of control management being made on cost • Focus on key alone • Increased span of markets control • Contract losses • Streamline for agil
Slide 45: BAE Systems, Inc. Senior Leadership Team
BAE Systems, Inc. Senior Leadership Team Office of the Linda Hudson Executive President & CEO President & CEO Committee BAE Systems, Inc. Bob Murphy Larry Prior Executive Vice President Executive Vice President Product Sectors Service Sectors Frank Pope Tom President Arseneault Dave Herr John Gannon
Slide 47: Headlines for US Security Sector
Headlines for US Security Sector The market is substantial…. $40B unclassified budget, larger classified budget The market is resilient…. Intelligence is a traditional safe-haven during DoD cuts The market is growing Expected to grow, on average at 7.5% CAGR through 2015, there are also
Slide 48: Understanding Our Customers
Understanding Our Customers Common capability needs emerge : Analysis, Targeting and Support to Operations Knowledge Management and Information Sharing Cybersecurity Identity Management Collection and Information Capture Training Innovation, service delivery and an unparalleled understan
Slide 49: Understanding Our Strengths
Understanding Our Strengths BAE is a pure play national security global competitor Building on 30 years experience in managing security systems and solutions both at home and abroad The US/UK Special Relationship finds substance in Intelligence and Security Workforce possesses diverse securi
Slide 50: Leveraging the Group's Global Position
Leveraging the Group’s Global Position Developing a global Business… United Kingdom 32,800 Sweden employees 1,600 employees United States Saudi Arabia India 46,900 4,400 2,300 employees employees employees South Africa Australia 800 employees 6,100 employees A unique transatlantic position – with le
Slide 51: Understanding the Opportunity
Understanding the Opportunity Success requires a strategic, targeted approach Key fast streams for growth identified to include: C4ISR, UAS, TPED The “Counters” Border Security Critical National Infrastructure Protection Cyber Security Support to operations with mission success as ou
Slide 52: Dual-use Technologies and Information Sharing
Focusing on Cyber as a Priority Federal – Civil Gov Gov Commercial Government Dual‐use Technologies and Dual‐use Technologies and Information Sharing Information Sharing • BAE Systems is presently positioned at • The secure government arena are • Government is set to significantly the heart of the s
Slide 53: Comprehensive National Cybersecurity Initiative
Comprehensive National Cybersecurity Initiative The 12 Interdependent Initiatives and Responsible Agencies Limit the thousands of Internet access points to Federal civilian networks to 50 or 1 Develop Trusted Internet Connections less; expand DHS US-CERT with a 24/7 capability; support e-Gov initiat
Slide 54: Driving Organic Growth
Driving Organic Growth A US heritage as a premier electronic, intelligence and support solutions A position among the top, largest providers of managed information technology services Core customer experience and leading technology solutions Analysis and targeting Imagery processing that s
Slide 55: Cyber Acquisition
Cyber Acquisition Cyber acquisitions will be small and focused Consolidation of the security services industry will accelerate to create opportunities and we will gain technology contract positions customer intimacy and access Limitations exist but are often over-stated OCI affects a s
Slide 56: Conclusions
Conclusions US security market is area for real growth Initial growth in Federal market, but new opportunities in critical infrastructure Headwinds exist but are manageable Top line pressure still allows for "fast lane” opportunities In-sourcing countered by long term cost and demographic
Slide 58: Leading Market Position in U.S. Navy Surface Ship Repair
Leading Market Position in U.S. Navy Surface Ship Repair and Modernization San Francisco Ship Repair HQ Full Service Shipyard Capabilities Ship Repair Norfolk Ship Repair Drydocks, Piers, Cranes Skilled Workforce San Diego Ship Repair Significant Production Facilities Organic QA and Engineering Atla
Slide 59: BAE Systems Ship Repair Facilities
BAE Systems Ship Repair Facilities Norfolk Ship Repair San Diego Ship Repair Norfolk San Diego 1,400 Personnel 1,500 Personnel Acres: 109 (Owned by BAE Systems) Acres: 17 (Leased from Port of San Drydocks: 52,500-ton and Diego) 3 acres (Owned by BAE Systems) 14,000-ton Drydock: 26,000-ton Piers: Fou
Slide 60: BAE Systems Ship Repair Facilities
BAE Systems Ship Repair Facilities Jacksonville Shipyard Mobile Shipyard Jacksonville Mobile 500 Personnel 500 Personnel Strategically StrategicallyLocated Acres: 101 (Owned by BAE Systems) Acres: 423 (Owned by BAE Systems) Located Drydock: 13,500-ton Drydocks: 46,400-ton and to support 3 Marine Rai
Slide 61: Customers / R&S Availabilities / Programs
Customers / R&S Availabilities / Programs COMMERCIAL Programs U.S. Navy Military Sealift Command Maritime Administration CG U.S. Coast Guard U.S. Army DDG Off Shore Energy Industry Commercial Maritime FFG R&S Availability Packages MILITARY TO CIVILIAN (MSC) LSD/LPD/LHA/D Complex Overhauls Modernizat
Slide 62: Ship Depot Maintenance Budgets
Ship Depot Maintenance Budgets - Funds all Public, 2 Private Nuclear yards and all Private Non-nuclear yards Presidents Budget Request Plus-ups IMA PHNSY PILOT 7,000 6029 6,000 4618 5062 5134 5265 5,000 3143 4298 4276 4154 S t trra a tteeggyy 3922 e R& ss R SS &S Drr i i v v e 4,000 2588 2561 g e e
Slide 63: Historic Fleet Size and Maintenance Funding Trends
Historic Fleet Size and Maintenance Funding Trends The Battle Force and Maintenance Budgets Depot Maint Ships in Battle Force 6000 600 5000 500 4000 400 # Ships $M 3000 300 2000 200 1000 100 72% of the U.S Navy’s 313 Ship Goal 0 are In Service Today 1980 1982 1984 1986 1988 1990 1992 1994 1995 1996
Slide 64: Multi-Ship Multi-Option (MSMO)
Multi-Ship Multi-Option (MSMO) – Primary USN R&S Vehicle • Multi-Ship, Multi-Option – Foundation of our Maritime Strategy Multi-Ship, Multi-Option • By Homeport and Ship–Class Foundation – One Yearof our Base Maritime + Four Options Strategy (except Hawaii/Mayport) By Homeport and Ship Class – One
Slide 65: MSMO Objectives - Navy/Industry Team
MSMO Objectives - Navy/Industry Team Support Fleet • Support Response Fleet Response Plan through Plan through Improved MSMO Maintenance Improved Maintenance Program: Readiness Readiness Summary Trusted advisor on maintenance & modernization Stable, flexible, responsive industrial base • Trusted
Slide 66: BAE Systems Ship Repair: MSMO Trusted Partner
BAE Systems Ship Repair: MSMO Trusted Partner San Diego, CA Norfolk, VA CG MSMO (7) DDG MSMO (22) CG MSMO (6) DDG PSA’s (5) DDG MSMO (11) LHA/LHD MSMO (Team) (4) DDG Topside (Team) (12) LPD-17 MSMO (3) LHA/LHD MSMO (5) LPD-17 FOA/PSA (2) LPD-17 FOA/PSA (2) MCM MSMO (6) CVN (Team) (4) CVN (Team) (2)
Slide 67: AEGIS Modernization – Mid-Life Class Upgrades
AEGIS Modernization – Mid-Life Class Upgrades Æ Sustain Force Structure ¾ Mid-Life Recapitalization to both CG-47 Æ Meet the Emerging Threat Class and DDG-51 Class Æ Upgrade Technology ¾ Program Includes 22 Cruisers and 65 Destroyers Æ Extend Service Life ¾ Successfully Completed 12 CG Mods Æ Improv
Slide 68: AEGIS Modernization Program of Record
AEGIS Modernization Program of Record Extend to cover all DDGS Each Modernization Availability ~ $40M © BAE Systems 2010 67
Slide 69: MSMO Technology and Logistics Initiatives
MSMO Technology and Logistics (R&S) Initiatives • Aluminum Welding – Partner with NAVSEA & ALCOA • Shaft Refurbishment – Capital Investment for CG Spares • Fiber Optic Installations – Aircraft Industry Best Practices • Stability Improvements – Cable Way Improvement Program • Coating Systems – Inters
Slide 70: Anchored in Safety
“Anchored in Safety”: Improving Safety Across the Industry 2.6 2.8 2.9 Lost Time Case 4433,,00 0000++ Injuries/Illnesses Hoou H Industry Average urrss o off O OSSH HAA T Trraaiin niinngg: : 2200 0088//00 99 Exceeding industry standards: 68% improvement in lost-time cases from 2007 to 2010 © BAE Syst
Slide 71: Committed Employees – Satisfied Customers
Committed Employees Æ Satisfied Customers Mobile Day One © BAE Systems 2010 70
Slide 72: Take Aways
Take Aways BAE Systems Ship Repair: • Largest non-nuclear ship repair, maintenance and modernization company in the US • Expanded to all major Navy homeports • Holds majority of Navy Surface Combatant repair and modernization contracts • Best positioned to execute the Navy’s modernization and servic
Slide 74: Electronic Solutions Business Areas
Electronic Solutions Business Areas Electronic Combat Communications & Solutions Survivability & Network Solutions Protection Solutions Technology Management Intelligence, Surveillance & Soldier & Reconnaissance Vehicle Solutions Solutions © BAE Systems 2010 73
Slide 75: Electronic Solutions Strategic Business Model
Electronic Solutions Strategic Business Model © BAE Systems 2010 74
Slide 87: Final thoughts
Final thoughts • We are focused on the “Fast Lanes” in an otherwise flat market • Innovative technology management coupled with deep mission understanding provides focus for investments resulting in responsive product offerings • M&A strategy, which targets gap filling technologies, will augment cap
Slide 88: Guy Griffiths - International Operating Group
Guy Griffiths International Operating Group © BAE Systems 2010 87
Slide 89: In Year Financial Performance
In Year Financial Performance SALES First Half First Half MBDA, Saudi 2010 2009 Air Astana Arabia Sales £2,078m £1,416m Underlying EBITA £218m £160m Australia Margin 10.5% 11.3% Platforms & Order book £9.6bn £10.8bn Products Readiness & Sustainment Cash flow £(553)m £122m Electronic Systems © BAE Sy
Slide 94: Market Share
Market Share Key Competitor Turnover p/a* *2008/2009 fiscal year as reporter in ADM Top 40 Survey. © BAE Systems 2010 93
Slide 95: Readiness & Sustainment
Readiness & Sustainment 2010 Sales 2015 Sales Other R&S Other R&S 55% 45% 41% 59% © BAE Systems 2010 94
Slide 100: GDP
GDP GDP at Constant 1999 Prices ($bn) $250.0 $200.0 $150.0 $bn $100.0 $50.0 $0.0 90 00 02 04 06 08 78 84 80 82 86 88 92 94 96 98 68 70 72 74 76 19 20 19 19 19 19 19 20 20 20 20 19 19 19 19 19 19 19 19 19 19 Year © BAE Systems 2010 99
Slide 102: Oil Price & Defence Budget
Oil Price & Defence Budget Oil Price and MODA Budget Corellation 140 120 100 $bn and $ 80 60 40 20 0 Y 1 Y 3 Y 5 Y 7 09 81 y 3 y 5 y 7 89 y 1 y 3 y 5 y 7 Y 9 0 0 0 0 8 8 8 9 9 9 9 9 20 20 20 20 20 19 19 19 19 19 19 19 19 19 19 y y y Year © BAE Systems 2010 101
Slide 106: GDP
GDP GDP Growth 1600 12.0% 1400 10.0% 9.5% 9.9% 1200 9.0% 8.5% 8.0% 1000 7.5% 7.4% 6.8% 800 5.8% 6.0% 600 4.5% 3.9% 4.0% 400 2.0% 200 0 0.0% 00‐01 01‐02 02‐03 03‐04 04‐05 05‐06 06‐07 07‐08 08‐09 09‐10 © BAE Systems 2010 105
Slide 107: Geopolitical risks and conflicts in India
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 108: Defence Budget
Defence Budget £25,000,000,000 £20,000,000,000 £15,000,000,000 40.7% £10,000,000,000 38.7% 45.5% 45.3% 41.4% 42.1% 41.7% £5,000,000,000 28.1% 29.9% 26.9% 25% £0 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 Defence Budget Capital Expenditure © BAE Systems 2010 107
Slide 109: Foreign Direct Investment
Foreign Direct Investment 100% 49% Non-defence FDI Limit 26% Current Foreign Direct Investment Limit 0% © BAE Systems 2010 108
Slide 117: Summary
Summary • Growth agenda in all IOG markets • Dependent on “pull-through” • Home Market Model © BAE Systems 2010 116
Slide 120: Agenda
Agenda 14:00 Ian King - Introduction 14:15 Nigel Whitehead - UK market environment 14:25 Kevin Taylor - military air support in the UK - a demonstrable success 14:50 Martin Sutherland - UK security market, capabilities and opportunities 15:15 Q&A 15:40 Break 16:00 Linda Hudson - US market environmen

BAE Systems — Investor Day (November 2010) on 6ix

Bae Systems — Investor Day (November 2010)

Slide 1: Investor Day 9th November 2010

Slide 2: Cautionary statement

Slide 3: Agenda

Slide 4: Safety

Slide 5: Agenda

Slide 6: Nigel Whitehead - Programmes & Support

Slide 7: Programmes & Support

Slide 8: SDSR Summary

Slide 9: SDSR Impact on BAE Systems

Slide 10: Overview of Programmes & Support

Slide 11: Kevin Taylor - Air Sector Customer Support and Services Journey

Slide 12: Air Support - the evolution

Slide 13: Case Study - Tornado

Slide 14: Availability Transformation: Tornado Aircraft Contract

Slide 15: Partnering in action

Slide 16: Case Study - Typhoon

Slide 17: Typhoon Availability Support (TAS)

Slide 18: BAE R&S Assets

Slide 19: R&S Services: A Strategy for Growth

Slide 20: Transferring the learning - Salam Support Service

Slide 21: Air Sector Opportunities

Slide 22: Summary

Slide 23: Martin Sutherland - Detica, UK security market

Slide 24: Outline

Slide 25: Introduction to Detica

Slide 26: Trusted partner with governments and industry

Slide 27: Delivering unique integrated solutions

Slide 28: Some of our key customers

Slide 29: Some example projects

Slide 30: Products underpin our capabilities

Slide 31: Outline

Slide 32: Nature of the threat

Slide 33: National Security Strategy & Strategic Defence and Security Review

Slide 34: Comprehensive Spending Review

Slide 35: Outline

Slide 36: The security strategy in summary

Slide 37: Core propositions for security franchises

Slide 38: Vision of our business in 2015

Slide 39: Q&A

Slide 40: Linda Hudson - US Defense Environment

Slide 41: U.S. Defense Budget – Official Plan

Slide 42: U.S. Defense Budget – Factors to Consider

Slide 43: U.S. Defense Budget - Areas of Growth

Slide 44: Project Evolution - Facing the Challenge

Slide 45: BAE Systems, Inc. Senior Leadership Team

Slide 46: Larry Prior - US Security Business

Slide 47: Headlines for US Security Sector

Slide 48: Understanding Our Customers

Slide 49: Understanding Our Strengths

Slide 50: Leveraging the Group's Global Position

Slide 51: Understanding the Opportunity

Slide 52: Dual-use Technologies and Information Sharing

Slide 53: Comprehensive National Cybersecurity Initiative

Slide 54: Driving Organic Growth

Slide 55: Cyber Acquisition

Slide 56: Conclusions

Slide 57: Bill Clifford - US naval sustainment

Slide 58: Leading Market Position in U.S. Navy Surface Ship Repair

Slide 59: BAE Systems Ship Repair Facilities

Slide 60: BAE Systems Ship Repair Facilities

Slide 61: Customers / R&S Availabilities / Programs

Slide 62: Ship Depot Maintenance Budgets

Slide 63: Historic Fleet Size and Maintenance Funding Trends

Slide 64: Multi-Ship Multi-Option (MSMO)

Slide 65: MSMO Objectives - Navy/Industry Team

Slide 66: BAE Systems Ship Repair: MSMO Trusted Partner

Slide 67: AEGIS Modernization – Mid-Life Class Upgrades

Slide 68: AEGIS Modernization Program of Record

Slide 69: MSMO Technology and Logistics Initiatives

Slide 70: Anchored in Safety

Slide 71: Committed Employees – Satisfied Customers

Slide 72: Take Aways

Slide 73: Tom Arseneault - Electronic Solutions

Slide 74: Electronic Solutions Business Areas

Slide 75: Electronic Solutions Strategic Business Model

Slide 76: Joint Strike Fighter

Slide 77: Compass Call

Slide 78: ATIRCM

Slide 79: Thermal Weapon Sight