Results 16 February 2012 1 BAE Systems 2012 Ian King 2 BAE Systems 2012 Strategy and business environment Near term focus on delivering bottom line performance Strategy to sustain and provide ID: 699407
Download Presentation The PPT/PDF document "BAE Systems 2011 Preliminary" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
BAE Systems
2011 Preliminary Results16 February 2012
1
© BAE Systems 2012Slide2
Ian King
2
© BAE Systems 2012Slide3
Strategy and business environment
Near term focus on delivering bottom line performance
Strategy
to sustain and provide
platform
for
growth
Improve profit and cash generation
Grow Cyber, Intelligence and Security
Grow Electronic Systems
Drive value from Platforms and Services positions
Increase International business
US
Budget passed following Continuing Resolution
January announcements align with planning assumptions
UK
SDSR impacts clearMitigating actions well underway
3
© BAE Systems 2012Slide4
Strategy and business environment
Near term focus on delivering bottom line performance
Strategy
to sustain and provide
platform
for
growth
Improve profit and cash generation
Grow Cyber, Intelligence and Security
Grow Electronic Systems
Drive value from Platforms and Services positions
Increase International business
US
Budget passed following Continuing Resolution
January announcements align with planning assumptions
UK
SDSR impacts clearMitigating actions well underway
4
© BAE Systems 2012Slide5
Strategy and business environment
Near term focus on delivering bottom line performance
Strategy
to sustain and provide
platform
for
growth
Improve profit and cash generation
Grow Cyber, Intelligence and Security
Grow Electronic Systems
Drive value from Platforms and Services positions
Increase International business
US
Budget passed following Continuing Resolution
January announcements align with planning assumptions
UK
SDSR impacts clearMitigating actions well underway
5
© BAE Systems 2012Slide6
International Markets
India
Continued Hawk order intakeMMRCA – Typhoon bid
Land opportunities progressing
Brazil OPV
New business
Opportunity to expand Brazilian Navy business relationshipAustraliaGood positions across defence domainsOman Typhoon RFP released KSA
Budgets approved
Increasing business opportunities
6
© BAE Systems 2012Slide7
Summary
Strong performance in challenging environment
Cost reduction and efficiency improvement
Good
programme
execution
Broad international footprintStrong positions in priority capabilitiesResilient platform for future growthUnambiguous focus on shareholder value 7
© BAE Systems 2012Slide8
Peter Lynas
8© BAE Systems 2012Slide9
Financial Highlights
(1) Continuing operations
(2) Earnings before amortisation and impairment of intangible assets, finance costs and taxation expense (EBITA) and non-recurring items
(3) Earnings
excluding amortisation and impairment of intangible assets, non-cash finance movements and non-recurring
items
9
© BAE Systems 2012Slide10
Summary Income Statement
(continuing operations)
10
© BAE Systems 2012
*
2011 underlying finance costs exclude charges relating to the early redemption of debt (£13m)Slide11
Balance Sheet
11
© BAE Systems 2012Slide12
Pension Deficit (IAS 19)
* includes assets held in Reservoir Trust
12
© BAE Systems 2012Slide13
Funding Deficit
£
2.9bn
£3.0bn
£1.9bn
Funding deficit increased by £1.1bn
Revised deficit recovery plans agreed
Deficit recovery periods sustained
Incremental funding of £0.2bn over
next 5 years
Next funding valuation date April 2014
13
© BAE Systems 2012Slide14
Operating Cash Flow
14© BAE Systems 2012Slide15
Movement in Net Debt
15
© BAE Systems 2012Slide16
Capital Allocation
£2.2bn returned to shareholders over 2 years
16
© BAE Systems 2012Slide17
Electronic
Systems
Defence
86%
2011 SALES
Commercial
14%
17
© BAE Systems 2012Slide18
Cyber & Intelligence
2011 SALES
US $1,779m
Detica $465m
18
© BAE Systems 2012Slide19
Platforms & Services (US)
2011 SALES
Support
Solutions
Land & Armaments
Platforms
32%
Military &
Technical Services
68%
19
© BAE Systems 2012Slide20
Platforms & Services (US)
Land & Armaments
Support
Solutions
20
© BAE Systems 2012Slide21
Platforms & Services (UK)
2011 SALES
Maritime
Air
Platforms
68%
Military &
Technical Services
32%
21
© BAE Systems 2012Slide22
Platforms & Services (International)
2011 SALES
KSA
Australia
Platforms
35%
Military &
Technical Services
65%
MBDA, India
22
© BAE Systems 2012Slide23
Underlying Earnings Per Share
23© BAE Systems 201239.7
45.6
*
UK R&D tax benefit
penceSlide24
2012 Guidance
* excluding R&D tax benefit
24
© BAE Systems 2012Slide25
2012 Guidance
* excluding R&D tax benefit
25
© BAE Systems 2012Slide26
Summary
Strong performance in challenging environment
Cost reduction and efficiency improvement
Good
programme
execution
Broad international footprintStrong positions in priority capabilitiesResilient platform for future growthUnambiguous focus on shareholder value 26
© BAE Systems 2012Slide27
BAE Systems
2011 Preliminary Results16 February 2012
27
© BAE Systems 2012Slide28
Handouts
28© BAE Systems 2012Slide29
Financial Summary
29
© BAE Systems 2012Slide30
Like-for-Like Sales & Underlying EBITA - Group
30
© BAE Systems 2012Slide31
Like-for-Like Sales & Underlying EBITA
by sector
31
© BAE Systems 2012Slide32
Like-for-Like Sales & Underlying EBITA
by sector
32
© BAE Systems 2012Slide33
Reconciliation of Earnings
33
© BAE Systems 2012Slide34
Working Capital Movements
Reconciliation to Cash Flow
* includes
cash held for Tanzanian charitable donation and cash on customer account
34
© BAE Systems 2012