Bae Systems Plc · LSE:BA.
Bae Systems — Investor Day (May 2025)
25 slides from Bae Systems's investor day presentation, May 14, 2025
Slide 1: 1 © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
1 © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 2: Cautionary Statement
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 objectives and the markets and economies i
Slide 3: Air Sector: Driving performance. Securing growth
Air Sector Driving performance. Securing growth Simon Barnes, Group Managing Director, Air Sector © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark.
Slide 4: Air has a strong track record of growth
Air has a strong track record of growth Momentum for next phase of growth Sales Underlying EBIT Operating business cash flow £1,007m £1,243m £8.5bn £7.4bn +30% +127% +14% £772m £548m 2021 2024 2021 2024 2021 2024 +5% CAGR +50% backlog growth +9% CAGR +140 bp margin £4.6bn of cash generated © 2025 BA
Slide 5: Well positioned with strong growth potential
Well positioned with strong growth potential Strong growth potential for We have a strong well positioned core business revenue, EBIT We have a strong well positioned core business and cash Our evolved portfolio positions us to capture future growth Our evolved portfolio positions us to capture futu
Slide 6: A broad based business
A broad based business 2024 Established market positions and growing regional presence Sales by Line of Business F E Europe 50+ years D A UK US 100+ years 70+ years C Japan 5+ years B Qatar Saudi Arabia 10+ years Australia A Saudi Arabia 33% B European & International 25% 50+ years 65+ years C MBDA
Slide 7: End to end offering drives significant value
End to end offering drives significant value 2024 Sales split Through-life sovereign combat air capabilities Platforms 51% Services 49% Design and development of Combat Air platforms Through life support services Multi-domain training and manpower Mission systems Uncrewed systems Complex systems int
Slide 8: Expanded portfolio to capture growth: Leading position in complex combat air
Expanded portfolio to capture growth Leading position in complex combat air Complex Combat Air • Leading position across international Complex Combat Air programmes Emerging Disruptive – Typhoon: 40+ yrs runway Emerging & Disruptive – F-35: 3600 programme of record Support Services – GCAP: renewing
Slide 9: Expanded portfolio to capture growth: Ground-breaking capabilities for the air domain
Expanded portfolio to capture growth Developing ground-breaking capabilities for the air domain Complex Combat Air • Foundation of leading technologies and know how Complex Combat Air Emerging Disruptive • FalconWorks® created to accelerate technology Emerging & Disruptive development and deployment
Slide 10: Expanded portfolio to capture growth: Support provides long-term revenue
Expanded portfolio to capture growth Support provides strategic insights and long-term revenue Complex Combat Air • Key aspect of our differentiated model Complex Combat Air delivering significant long-term revenue Emerging Disruptive streams Emerging & Disruptive • Embedded position with customers
Slide 11: Expanded portfolio to capture growth: Training and sovereign defence needs
Expanded portfolio to capture growth Training is a critical part of sovereign defence needs Complex Combat Air • Critical aspect of sovereign defence needs Complex Combat Air Emerging Disruptive • Supports strong customer relationships over long term Emerging & Disruptive Support Services • Signific
Slide 12: Expanded portfolio to capture growth: European leader in missiles
Expanded portfolio to capture growth European leader in the missile industry Complex Combat Air • Leading non-US company operating in the global Complex Combat Air complex weapons market Emerging Disruptive Emerging & Disruptive • Strategic value and leverage between MBDA and BAE Support Services Sy
Slide 13: MBDA portfolio
MBDA portfolio MBDA Offering missiles and missile systems to achieve the full spectrum of effects In focus Operates across all missions In service across air, land and sea Deep Strike Tactical Strike Battlefield Area Protection Force Protection Air Dominance €37bn order backlog at end 2024 Long dist
Slide 14: MBDA: Investing for sustained growth
MBDA Investing for sustained growth Sites and buildings Production investment IT and enabling investments Increased workforce 60% 20% 20% © 2025 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark. 14
Slide 15: Established lead sovereign industrial partner to UK Government
Diverse market positions Established lead sovereign industrial partner to UK Government UK Europe US Middle East Asia UK Europe US Middle East Asia • Established market leadership • Around a third of the Air Sector by revenue • Working across all complex combat air programmes • Key role in RAF train
Slide 16: Embedded in European and NATO sovereign defence
Diverse market positions Embedded in European and NATO sovereign defence UK Europe US Middle East Asia UK Europe US Middle East Asia Asia Asia Long-standing partnerships provide access to European market and exports: • Panavia GmbH (Tornado) • Eurofighter GmbH (Typhoon) • MBDA • NATO standard platfo
Slide 17: Track record of selling into, and partnering with, the US
Diverse market positions Track record of selling into, and partnering with, the US UK Europe US Middle East Asia UK Europe US Middle East Asia • Long-term position on F-35 through partnership with Lockheed Martin, with strong global demand for the platform • Position provides opportunity to access n
Slide 18: Long-term partner of choice in Saudi Arabia
Diverse market positions Long-term partner of choice in Saudi Arabia UK Europe US Middle East Asia UK Europe US Middle East Asia • Embedded position in Saudi Arabia under a Government to Government framework, in 60th year of partnership • End to end activity, from training to support for platforms •
Slide 19: Presence across Middle East presents further growth opportunities
Diverse market positions Presence across Middle East presents further growth opportunities UK Europe US Middle East Asia UK Europe US Middle East Asia • Qatar: a significant partnership, across Typhoon, Hawk and training • Supports strategic international relationship with Royal Air Force & Qatar Em
Slide 20: New partnerships and regional growth opportunities
Diverse market positions New partnerships and regional growth opportunities UK Europe US Middle East Asia UK Europe US Middle East Asia • Broadening opportunities to participate in Asia • Australia is an established user of F-35 and Hawk with further opportunities under AUKUS pillar two across the G
Slide 21: Investing to support future growth
Investing to support future growth Projected spend 2025-2029 Enabling Customer and company funded R&D investments People c. £4bn > £1bn > 3,500 early careers Products and technologies Enablers • Tempest • Operational excellence • Typhoon • Workforce and skills • Technology demonstrators • Digital en
Slide 22: Strong opportunities across the portfolio
Strong opportunities across the portfolio 2024 Sales Outlook Commentary Opportunities Kingdom of Future Fighter competition Saudi Arabia £2.8bn Long term position in 60th year of partnership Increased support Further European Typhoon European & Türkiye Typhoon Strengthened outlook following increase
Slide 23: Growth potential across the Air Sector
Growth potential across the Air Sector Tornado/Hawk/Others 2024: £8.5bn MBDA Uncrewed Systems FCAS / GCAP F-35 Typhoon For illustrative purpose only – not to scale Projections are based on internal management estimates and reflect management’s current assumptions, including assumed receipts of futur
Slide 24: Air: well positioned with strong growth potential
Air: well positioned with strong growth potential Strong growth potential for We have a strong well positioned core business revenue, EBIT We have a strong well positioned core business and cash Our evolved portfolio positions us to capture future growth Our evolved portfolio positions us to capture
Slide 25: Today's agenda
Today’s agenda Time Business area 08:15 – 09:15 Air Sector Overview Overviews and latest developments on our Typhoon, F-35, FCAS & GCAP 09:15 – 11:00 Combat Complex Air Programmes programmes 11:00 – 11:30 Coffee break Emerging and Disruptive Explore how we’re driving the rapid development and deploy