BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
May 14 - 15, 2018
BAE Systems Investor Day 2018Electronic Systems
1
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Plc Cautionary Statement
2
All statements other than statements of historical fact included in this statement are forward-looking statements. Such forward-looking statements, which reflect management's assumptions made on the basis of information available to it at this time, involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of BAE Systems or the markets and economies in which BAE Systems operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BAE Systems plc and its directors accept no liability to third parties in respect of this statement, save as would arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.
Issued by:BAE Systems plcLondon
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Safety
3
• There are no planned fire alarms
• In the event of a fire or other event requiring evacuation
• Distinct alarms will sound
• Quickly and calmly proceed to the nearest exit (lighted EXIT sign)
• Follow egress routes and directions from Emergency Personnel
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Agenda
4
• 08:00 Introduction Charles Woodburn Auditorium• 08:05 Business Update Peter Lynas Auditorium• 08:15 Q&A Auditorium• 08:45 US Operations & Market Overview Jerry DeMuro Auditorium• 09:05 BAE Systems Inc. Portfolio Tom Arseneault Auditorium• 09:30 Overview of Electronic Systems Terry Crimmins Auditorium• 10:10 Break • 10:40 Q&A Auditorium • 11:10 Summary & Closing Remarks Jerry DeMuro Auditorium• 11:15 Lunch Tent• 12:00 Product demos NHQ/MER• 14:30 Tea & coffee Lobby• 14:45 Depart
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Product Demo Schedule
5
Group 2
• Coach Bus ride
• Product Demonstrations – Merrimack
• Space Solutions
• Thermal Targeting Solutions
• Electronic Warfare
• Optical Electronic Warfare
• Series Hybrid Bus Ride
• Product Demonstrations – Nashua
• Precision Munitions
• High-integrity Avionic Solutions
• Advanced Display Solutions
• Product Demonstrations – Nashua
• Precision Munitions
• High-integrity Avionic Solutions
• Advanced Display Solutions
• Series Hybrid Bus Ride
• Product displays – Merrimack
• Space Solutions
• Thermal Targeting Solutions
• Electronic Warfare
• Optical Electronic Warfare
• Coach Bus Ride
Group 1
• Attendees will break up into two pre-determined groups from 12:00 – 14:30• Each product demonstration will be 8 minutes and 2 minutes to transition to the next demo
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
6
Charles Woodburn
Chief Executive
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Introduction
7
• First in a series of Investor events over the next couple of years covering our major
divisions
• Focus of this event is the Electronic Systems business
• Aim to demonstrate:
• Portfolio well aligned to US budget growth
• Strength and depth of our portfolio
• Investment in technology for now and the future
• Well positioned for medium term growth
• Chance to see a range of product sets
• Plenty of opportunity for Q&A and discussions with management
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Strategic Priorities
8
• Electronic Systems demonstrates our strategic priorities in action
• Operational Excellence
• Improving competitiveness and efficiency
• Advancing and further leveraging our technology
BAE SYSTEMS © 2018 BA E Systems
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9
Peter Lynas
Finance Director
BAE SYSTEMS © 2018 BA E Systems
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Business Update
10
• Guidance for the year confirmed in trading update
• UK – outlook stable from long term contracted positions
• Furthered by Astute Boat 7 award and Dreadnought funding
• Modernising Defence Programme review
• KSA Typhoon - Memorandum of Intent – negotiations progressing
• Strong existing order backlog - series of decisions expected by half year
• SEA 5000 – 9 ship Australian future frigate programme
• Amphibious Combat Vehicle
• Qatar Typhoon
• Cash – outlook unchanged – 2019 and beyond benefits of lower cash tax and interest
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
11
Q&A Session
BAE SYSTEMS © 2018 BA E Systems
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US Operationsand
Market Overview
Jerry DeMuroPresident and CEOBAE Systems Inc.
12
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Current Landscape
• Recent budget agreement provides stability and growth
• Two year increase of $300B above budget caps
• DoD Investment accounts increase by 21%
• National Defense Strategy Issued
• Emphasis on peer threats
• Priorities well defined
• Core programs and adjacent markets well supported
• Congressional restrictions on Gulf Nations arms sales lifted
• Commercial Aviation backlog at record levels
• International budgets driven by same threats as the US - Partners and Allies increasing defense budgets as a result
13
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14
Strong near-term uplift to defense budget
• Bipartisan agreement raised defense budget caps for FY18 and FY19
• FY18-19 increases will result in higher industry sales over next several years
• National Defense Strategy will guide future growth areas
• Nuclear modernization
• Space and cyberspace
• Missile defense
• C4ISR and lethality in contested environments
• Military application of autonomy, AI & machine learning
Source: OMB
FY19FY17 FY21FY18 Enacted
FY20 FY22
+11%
FY23FY16
$B
National Defense (050) Top-line Budget Authority, Then Year $B
Actual FY19 President’s Request
778760743733716
634607
701
0
100
200
300
400
500
600
700
800
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Portfolio well aligned with DoD budget growth
FY17-19 %
Growth
FY19 Budget ($B)
BAE Programs & Opportunities
Nuclear Modernization 135% $6.7 ICBM systems engineering, submarine missile tubes
Combat Vehicles 102% $6.8 Combat vehicles for Army, Marine Corps, partners
Long Range Strike 83% $4.9 B-21 bomber
Long Range / Precision
Fires53% $11.7
Missiles and precision-guided munitions, extended
range artillery, railgun
Space 38% $7.3Threat detection, secure communications, ground-
based C2/battle management
Navy Ship Depot
Maintenance11% $9.8 Non-nuclear ship repair
Fighters 10%* $16.1 Electronic warfare suites for F-35, F-15
Estimated DoD Spending by Category
* FY17 to F18 grow th is 25% due to C ongressional plus-ups
15
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
One of the world’s largest defense companies
BAE Systems, Inc.
• Operates under a Special Security Agreement for over 25 years
• A U.S. company chartered in Delaware
• Top 6 US defense contractor
• Over 32,000 employees worldwide
• Locations in 35 states and 27 countries
The HonorableMichael Chertoff
Chairman
former Secretary of theU.S. Department ofHomeland Security
Admiral Jonathan Greenert
(USN, Retired)
former Chief of Naval Operations
General John Campbell(US Army, Retired)
former CommanderResolute Support Mission
& U.S. Forces-Afghanistan
The HonorableMichael G. Vickers
former Undersecretary of Defense
for Intelligence
The HonorableEllen O. Tauscher
former Member of Congress &
Undersecretary of State
The HonorableKelly A. Ayotte
former U.S. Senator & Attorney Generalof New Hampshire
16
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
17
BAE Systems, Inc. Rich Heritage
Electronic Systems
Platforms & Services
Intelligence &
Security
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
BAE Systems Inc. US major site locations
San Diego, CAC hula V ista, CA
Phoenix, A Z
Honolulu, HIEWA , HI
Wahiawa, HI
Mobile, A L
Radford, VA
Norfolk, VAC hesapeake, VA
Stafford, VAReston, VA
Manassas, VAMcLean, VA
Springfield, VASterling, VA
Dulles, VAWallops Isl., V A
Washington, D.C.
San Jose, CA
Elgin, O K
A nniston, AL
A iken, SC
York, PA
Sterling Heights, MI
Minneapolis, MNA berdeen, SD
C harlotte, NC
Kingsport, TN
Jacksonville, FLMay port, FL
A rlington, VA“Headquarters”
Endicott, NYGreenlawn, NY
Rome, NY
Hudson, NHMerrimack, NH
Nashua, NH
Lexington, MABurlington, MA
SagamoreBourne, MA
Pittsburgh, PAF t. Wayne, IN
A ustin, TX
Dallas, TX
F t. Worth, TX
Way ne/Totowa, NJMt. Laurel, NJ
C lear, AK
F t. Walton Beach, F L
A nnapolis Jct., MDC alifornia, MD
Rockv ille, MDSt. Inigoes, MD
Lexington Park, MD
Summerville, SC
Hill A FB, UT
* Sites of 50 people or more
Key port, WA
St. Louis, MO
Day ton, OH
Middletown, RI
Kings Bay , GA
18
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Served Markets
2017 Sales – Domains
Air
42%
Land
30%
Maritime
22%
Cyber
6%
73%
16%
11%
US Defense, Intel & Civilian Agencies
International Defense
Commercial
2017 Sales – Market Breakdown
19
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Diverse Product/Program Portfolio
More than 9,500 Active Contracts
• Ranging in size from $10k to $1.7B
• 75% Firm Fixed Price Contracts
• 25% Cost Reimbursable Contracts
Diverse Customer Base
• 1,400 different commercial and defense customers
• 80+ countries
20
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
BAE Systems, Inc. Sectors
Employees
32,100HQ
Arlington, VA2017 Revenue
$10.0B
Intelligence & Security Platforms & Services
Electronic Systems
21
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
BAE Systems Inc.Portfolio
Tom ArseneaultChief Operating OfficerBAE Systems Inc.
22
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
From the depths of the ocean…
An impressive and diverse portfolio of products and technologies
23
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
…to the far reaches of space
NASA image
An impressive and diverse portfolio of products and technologies
24
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Electronic Systems
Platforms & ServicesIntelligence & Security
Employees
32,100HQ
Arlington, VA2017 Revenue
$10.0B
BAE Systems, Inc. Sectors
25
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
26
On land, at sea, on target
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Platforms & Services
Hägglunds
Combat Vehicles U.S.
Ship Repair
Weapon Systems
Combat Vehicles
Amphibious & International
Employees
11,400HQ
Arlington, VA2017 Revenue
$3.8B
27
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Combat Vehicles
M109A CV
1.1
M88
BradleyA MPV PA R 8X8 (FNSS)
MPF
CV90
BvS10 Beowulf
Modernization New Platforms
International
28
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
M109A7 Self-propelled Howitzer
Modernized indirect fire platform with increased survivability and capabilities
• Modernized legacy artillery platform for the U.S. Army
• Over 500+ sets needed for force modernization
29
BAE SYSTEMS © 2018 BA E Systems
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Transitioning to low rate production in 2018
• Multi-variant replacement for legacy M113 armored personnel carrier family
• Over 2900 vehicles required to support modernization demands
Armored Multi-Purpose Vehicle (AMPV)
30
BAE SYSTEMS © 2018 BA E Systems
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Amphibious Combat Vehicle 1.1
Competitive award announcement anticipated in June 2018 timeframe
• Wheeled amphibious vehicle for U.S. Marine Corps
• Requirements for 700 vehicles to meet sea and land combat conditions for the Marines
31
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Mobile Protected Firepower (MPF)
Competitive down-select anticipated in late 2018
• Light tank supporting the U.S. Army’s Infantry Brigades
• Potential initial demand for over 500 vehicles
32
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Robotic Combat Vehicle – Black Knight
Helping shape the future of unmanned combat vehicles
• Semi-autonomous combat vehicle
• Demonstrates our commitment to investing in future technologies
33
BAE SYSTEMS © 2018 BA E Systems
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Weapon Systems and Technologies
34
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Precision-Guided Munitions, Weapons and Technology
35
BAE SYSTEMS © 2018 BA E Systems
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Supporting the U.S. Navy’s maintenance requirements to meet operational needs
• Lead east coast surface modernization capability
• Located with the fleet
U.S. Navy Ship Repair - Norfolk
36
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Meeting the Navy’s maintenance needs to support the pivot the Pacific
• Lead west coast surface modernization capability
• Investments in dry-dock capacity a discriminator for critical naval maintenance and modernization
U.S. Navy Ship Repair – San Diego
37
BAE SYSTEMS © 2018 BA E Systems
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Intelligence & Security
Air Force Solutions
Integrated Defense Solutions
Intelligence Solutions
Employees
6,900HQ
McLean, VA2017 Revenue
$1.6B
38
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
39
Air Force Solutions
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Intelligence Solutions
40
BAE SYSTEMS © 2018 BA E Systems
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Integrated Defense Solutions
US Navy image
41
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Electronic Systems
FAST Labs TM
Survivability, Targeting & Sensing Solutions
Electronic Combat Solutions Controls & Avionics Solutions
Power & Propulsion Solutions
C4ISR Systems
Employees
14,400HQ
Nashua, NH2017 Revenue
$4.6B
42
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
43
Terry CrimminsPresident, Electronic Systems
Electronic SystemsOverview
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44
• Overview
• Business performance
• Our portfolio and markets
• Moving forward
Agenda
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45
Electronic Systems – Our footprint and our people
14,400 people1,000 customers
>6,500 Active Contracts
San Jose, CA116 employees
Austin, TX423 employees
Ft. Worth, TX76 employees
Ft. Wayne, IN836 employees
Endicott, NY1244 employees
Greenlawn, NY603 employees
Rome, NY69 employees
Hudson, NH1034 employees
Merrimack, NH982 employees
Nashua, NH3366 employees
Lexington, MA104 employees
Burlington, MA232 employees
Wayne/Totowa, NJ676 employees
Mt. Laurel, NJ75 employees
Arlington, VA 71 employeesReston,VA88 employees
Manassas, VA250 employees
Guaymas, Mexico
Rochester, UK1308 employees
Singapore
Rokar, Jerusalem, Israel100 employees
Dallas, TX65 employees
San Diego, CA848 employees
Pittsburgh, PA87 employees
* 417 people work at other sites with less than 50 employees
1,845 hold advanced degrees
14.5 average years of service
990 U.S. patents
296 U.S. patents pending
246 non-U.S. patents
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Diverse product/program portfolio
Over 6,500 active contracts
• Ranging in size from $10k to $1.7B
• 70% firm fixed price contracts
• 30% cost reimbursable
Key franchises
• Electronic Warfare
• Engine/Flight Controls
• APKWS & THAAD
• HybriDrive® Systems
• IFF & Datalinks
Our portfolio
60%
Business MixUS Defense 60%
Commercial 22%
Int. Defense 18%
Lockheed 15%
US Air Force 13%
Boeing 13%
US Navy 11%
Restricted 9%
International 5%
Metro/Municipalities 5%
Airlines 5%
US Army 5%
Other Defense Primes 4%
General Electric 4%
BAE Plc 2%
Northrop Grumman 1%
DARPA 1%
All other 8%
Our Customers
46
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
4.0
4.5
5.0
5.5
2014 2015 2016 2017 2018E
$ b
Revenues
12%
13%
14%
15%
16%
17%
600
700
800
900
2014 2015 2016 2017 2018E
RO
S %$
m
EBITA ROS
How the business has performed
47
EBITA
• Top-line growth across the period driven by the diversity and resiliency of portfolio
• Closed 2017 with record order backlog (> $7b)
• Track record of consistent ROS delivery
• Performance driven by strong program execution
• R&D investment capacity increasing while delivering bottom line
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48
Electronic Systems – Our structure
Electronic Combat
Solutions$1.3b
Controls & Avionics
Solutions$0.9b
FAST Labs ™
$0.2b
Power & Propulsion
Solutions$0.3b
Survivability, Targeting
& Sensing Solutions$0.8b
Command, Control, Communications,
Computers, Intelligence, Surveillance & Reconnaissance Systems
$1.2b
We maintain 5 business areas aligned to distinct market streams, with a sixth business –
FAST Labs™ – serving as an innovation engine for the entire enterprise
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Competitive LandscapeU
S D
efe
nse • Key
Competitors: Northrop Grumman, Raytheon, Harris
• Activities / Trends:
• Standing up new (or strengthening existing) business units focused on advanced technology
• Partnering with small, innovative commercial firms for disruptive technology
• Competing for scarce talent, esp. in STEM
Inte
rna
tio
na
l De
fen
se • Key
Competitors: Raytheon, Northrop Grumman
• Activities / Trends:
• Standing up wholly-owned subsidiaries in-country
• Leveraging franchise positions developed for U.S. markets to address international force modernization opportunities
Co
mm
erc
ial A
vio
nic
s • Key Competitors: UTAS / Rockwell Collins, Honeywell, GE Aviation Systems
• Activities / Trends:
• Consolidating to address OEM demands for price reductions
• Investing in emerging trend for more aircraft electrification
• Ramping up production rates
Hyb
rid
Po
we
r • Key Competitors: Cummins, Allison, many other players; highly fragmented competitive landscape
• Activities / Trends:
• Hybrid power growth continues, all electric emerging
• Battery tech players driving market shifts
49
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
50
Electronic Support• Rapid detection, identification and
tracking• Precision direction finding and
geolocation• Passive targeting support
Electronic attack• Electronic attack of military and
commercial communications, navigation and radar systems
• Threat analysis and response
Self Protection• Multispectral (RF/IR) Countermeasures• On Board & Off-Board technique
generators
Electronic Combat Solutions2017 Sales: $1.3b
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
51
The market is strong and growing
• Increasing sophistication of adversaries• Growing demand for smaller systems
Our capabilities address market drivers
• Threat detection, tracking, & situational awareness• Broad-band electronic attack• Self-protection countermeasures
We win by differentiation
• Threat knowledge & exploitation• Discriminating lasers
Major programs
• F-35 (AN/ASQ-239 EW/CM system)• Eagle Passive/Active Warning Survivability System• Digital Electronic Warfare System (AN/ALQ-239)• EC-130H Compass Call Weapon System• Long Range Anti-Ship Missile • Advanced Threat Infrared Countermeasures • Common Missile Warning System
RF and OpticalElectronic Warfare
X
Domains
Air Land Sea Space Other
– World leading EW market position
– Our systems are on 80% of U.S. military fixed-
wing aircraft
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
52
Overview of Electronic Warfare
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
53
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• IFF systems• Mission Workstations• Space Processing• Acoustics• Geospatial exploitation and analytics tools• Mission planning for aircraft, manned and UAVs• Datalink Networks
C4ISR Systems2017 Sales: $1.2b
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
55
Robust market demand• Growing threat to U.S. space assets• Significant funding directed at ‘space security’
Our capabilities are market disruptors• World-class Digital/RF/IR/Optical
technologies • Platform protection domain expertise
We win with differentiators• Industry leading RH45® semiconductor
technologies • Moore’s Law enabling ‘air breathing’
capabilities to migrate to higher altitudes
Major programs/products
• Radiation-hardened computers & components
• Space sensors & digital receivers
• Hallmark program (DARPA)
Space– Technology driving
key strategic wins in
space
X
Domains
Air Land Sea Space Other
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Space Security
55
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
56
• Flight Controls: Fly-by-wire systems, Active Inceptor Systems, Vehicle Management Systems
• Engine Controls: Full Authority Digital Engine Controls (FADEC)
• Mission Avionics: Defensive Weapon Systems, Stores Management, Mission Computers
• Flight Deck Systems: Control Panels, Detection and Alerting Systems
• Aftermarket Solutions: Spares, Repair and Overhaul, Asset Management, technical support
Controls & Avionics Solutions2017 Sales: $0.9b
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
57
Portfolio of major commercial avionic equipment
Denotes where an engine that has our
controls (GE, CFM) is the sole powerplantfor the platform
FC – Flight ControlsFADEC – Full-Authority Digital Engine Controls
737 NG / MA X 747-8 / 747-400 767 777 777X
Bombardier Global
7000 / 8000787
A irbus A 320 C EO /
A 320 NEO
Embraer Legacy
450 / 500
Bombardier C -Series
C S-100 / C S-300
FC, Cabin/Cockpit Systems, FADEC (exclusive on 747-8)
FC, Cabin/Cockpit Systems, FADEC
FADEC
FC, Cabin/Cockpit Systems, FADEC
FC, Cabin/Cockpit Systems, FADEC (exclusive on –F, -300LR, -200ER)
FC, FADEC
FADEC FC FC FC, FADEC
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Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
58
Portfolio of military avionic equipment
C -17
FBW Integrated Flight & Fire Control
A -10
GCAS/FBW
F -15F -22
FBW
F /A -18
FBW
GCAS & DFLCC
F -16
F -35
FBW / ACS
B-2
E-2
AFCS
FBW
P-3
T-50
FBW / ACS
AFCS
JA S39
FBW
FBWFBW
C H-47 V -22
FBWAFCS
S-92B525
FBW
A W609
FBW
Q F-16
Ty phoon TornadoHawk
FBWFBW FBW
ACS – Active Control SidesticksAFCS – Autopilot Flight Control SystemGCAS – Ground Collision Avoidance SystemFBW – Fly by Wire – Controls all primary & secondary surfaces
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59
Exploiting the Electro Optical/Infrared spectrum to provide unmatched infrared countermeasures, precision guidance and seeker solutions, advanced targeting solutions, and state-of-the-art tactical imaging systems
• Missile threat warning (CMWS, LIMWS)• Infrared countermeasures• Precision munitions guidance systems• Strategic missile seekers• Thermal targeting systems• Helmet and Head Up display solutions
Survivability, Targeting & Sensing Solutions2017 Sales: $0.8b
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62
Immediate and long-term market pull
• Restoring depleted stockpiles – key US priority• Robust international demand (esp. Middle East)• Need for low cost solutions for precision strike• Growing ballistic missile threat
We are driving next generation capabilities
• Accelerating development of discriminating tech• $35M+ in relevant CRAD to supplement IRAD
We win on technology and best value • World class seeker manufacturing • Advanced seekers at affordable price• Innovative DASALS® technology • AJ-GPS navigation
Major programs
• APKWS® – four military branches, 24+ LOR• Missile Seekers – USG & FMS
Precision Munitions
– More than 35 years of missile technology
development experience, world class seeker
factory & proven IR seeker development and manufacturing
X X X
Domains
Air Land Sea Space Other
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
APKWS® Laser-guided Rocket
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BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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• Delivers propulsion and power management performance with innovative electric products and solutions
• Serves a diversified market footprint: Advancing vehicle mobility, efficiency, and capability in markets such as; transit, marine, military and truck
• Holds a significant IP portfolio; patents world-wide; using technology evolved from over 20 years of investment in aircraft controls and power systems
• More than 8,000 electric drive systems deployed worldwide
Power & Propulsion Solutions2017 Sales: $0.3b
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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Researching, developing, and integrating advanced electronic technologies that provide discriminating capabilities to BAE Systems’ products and services.
Advanced Electronics Autonomy Cyber Electronic warfare Sensors and processing
FAST Labs™2017 Sales: $0.2b
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Our technology pipeline sustains our growth trajectory
Year 1 Year 2 Year 3 Year 4 Year 5
Market
R&D Seedlings
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BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
We leverage our customer base to drive technology forward
Our customers supplement our
shareholders R&D investment 18 to 1
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BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Electronic Systems – Moving Forward
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BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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• Electronics portfolio is well-aligned with The U.S. National Defense Strategy and will prosper in the near term budget surge
• Our defense products have broad international appeal
• Commercial markets provide profitable adjacencies, and fold back capabilities into our defense base
• Success in all these growth markets create resilient franchises in long cycle businesses
• Ensuring future market leadership
• Investing in emerging technologies
• Leveraging customer S&T funding
• Capitalizing business to drive operational excellence and sustain profit margins
Summary
Continuing to create significant shareholder value
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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Thank you
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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Break
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
70
Q&A Session
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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Jerry DeMuroPresident and CEOBAE Systems, Inc
Closing Remarks
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Closing Remarks
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BAE Systems Inc. holds a strong position in the Defense and Security Market
• ES and P&S US very well placed for mid term growth and I&S is stable
• Continued investment in the business
• Strong profit to cash conversion
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
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Lunch
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
74
Thank you
BAE SYSTEMS © 2018 BA E Systems
Non-export controlled. Releasable to non-US persons per INC-DSEA-2018-0081
Acronyms
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• AJ-GPS: Anti-jam Global Positioning System• APKWS: Advanced Precision Kill Weapon System• CRAD: Contract Research and Development• CMWS: Common Missile Warning System• DARPA: Defense Advanced Research Projects Agency• DASALS: Distributed Aperture Semi-active Laser Seeker• FMS: Foreign Military Sales• IFF: Identification Friend or Foe• IR: Infrared• IRAD: Internal Research & Development• LIMWS: Limited Interim Missile Warning System• OEM: Original Equipment Manufacturer• RF: Radio Frequency• S&T: Science & Technology• SIGINT: Signals Intelligence• STEM: Science, Technology, Engineering and Mathematics• UAV: Unmanned Aerial Vehicle
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