Wiki source code of BAE Systems

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1 {{box cssClass="floatinginfobox" title="**Contents**"}}
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5 = Summary =
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7 * BAE Systems is one of the largest global defence companies.
8 * BAE Systems provides advanced defence technology protects people and national security and keeps critical information and infrastructure secure.
9 * The company employ a skilled workforce of 89,600 people in more than 40 countries.
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11 [[image:BAESF0.png||height="166" width="720"]]
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14 = Company Overview =
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16 BAE Systems (LSE:BA, OTC:BAESF) provides advanced defence technology protects people and national security and keeps critical information and infrastructure secure. The company provide its customers with a competitive edge across the air, maritime, land and cyber domains. The company employ a skilled workforce of 89,600 people in more than 40 countries, and work closely with local partners to support economic development by transferring knowledge, skills and technology.{{footnote}}https://www.baesystems.com/en/our-company/about-us{{/footnote}}
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19 [[image:BAESF1.jpg||alt="BAESF0.png"]]
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22 == Locations and Markets ==
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24 BAE Systems has leading positions in its principal markets – in the US, UK, the Kingdom of Saudi Arabia and Australia – as well as established positions in a number of other international markets. BAE Systems is one of the largest global defence companies.{{footnote}}https://www.baesystems.com/en/our-company/about-us/where-we-operate{{/footnote}}
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27 [[image:BAESF2.png]]
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30 === US ===
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32 The US continues to represent the single largest defence market in the world. BAE Systems is a top ten defence supplier in the US.{{footnote}}https://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/results-and-reports/results/2021/bae-ar-complete-2020.pdf{{/footnote}}
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35 The Group’s US-based portfolio is well aligned to customer priorities and growth areas, which the company expect to continue under the new administration. These include electronic warfare, precision-guided munitions, hypersonics and space security, naval ship repair and modernisation services and combat vehicles.
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38 BAE Systems is a leader in advanced electronic systems, real-time intelligence and analysis, naval gun systems, naval ship repair and modernisation and tracked combat vehicles. The company's position is supported by strong positions on a number of franchise US defence programmes, including F-35 Lightning II, M109 self-propelled howitzer, Armored Multi-Purpose Vehicle and Amphibious Combat Vehicle.
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41 === UK ===
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43 BAE Systems is the largest defence company in the UK, with strong and long standing relationships with the Ministry of Defence and its supply chains.
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46 In the UK, the government has re-stated its commitment to meeting the NATO target of spending of at least 2% of Gross Domestic Product on defence. While the government’s Integrated Foreign Policy, Defence and Security Review is due to be published early in 2021, the UK government has made a series of recent programme announcements related to the review and the company welcome the UK government’s increased investment in defence and security
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48
49 === Saudi Arabia ===
50
51 The Kingdom of Saudi Arabia continues to be a leading military power and one of the largest defence markets globally.
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54 Saudi Arabia has a strong commitment to defence and security spending driven by regional security instability. Saudi Arabia’s Vision 2030 strategy to promote in-Kingdom industrialisation and diversification away from reliance on oil continues to shape its activities, in support of Saudi Arabia’s national objectives of technology development, local skills, and the development of an indigenous defence industry and capability. BAE Systems is working with Saudi Arabian Military Industries (SAMI) to explore how the company can collaborate to deliver further In-Kingdom Industrial Participation. This is through the restructuring of the Group’s portfolio of interests in a number of industrial companies, along with sustaining current industrialised capability, and by building on its strong history in Saudi Arabia. The company remain well placed as a leading in-country contractor in support of air defence platforms and training systems for the Royal Saudi Air Force, as well as support for mine countermeasure vessels for the Royal Saudi Naval Forces.
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57 === Australia ===
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59 BAE Systems is the largest defence company in Australia, with strong activities across all domains and the business is set to grow significantly in the coming years as the Hunter Class Frigate programme matures.
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62 Regional instability, the impact of the COVID-19 pandemic, and the rapid pace of military modernisation and technology advancement in the Asia-Pacific region continue to drive the government’s commitment to defence spending, with major recapitalisation programmes underway in the air, maritime and land domains. Underpinned also by its policies of developing a strong, sustainable and secure Australian defence industry and supporting leading-edge technological innovation, the Australian government continues its policy of approving a ten-year funding model for defence. The government announcement in July to increase their ten-year investment in new and upgraded defence capabilities from A$195bn to A$270bn should provide further opportunities to enhance and extend its growth profile.
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65 [[image:BAESF3.jpg]]
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67
68 === International ===
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70 BAE Systems has many strong and enduring relationships in international markets
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73 Regional security tensions, the growing emphasis on indigenous capabilities and varying economic conditions continue to influence defence spending internationally. BAE Systems has developed and seeks to further relationships with partners and customers in a number of countries.
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76 In Qatar, the build contracts for 24 Typhoon and nine Hawks are progressing well and its relationships are strengthening as the company implement its support and training commitments with the Qatari Armed Forces.
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79 Through its shareholding in MBDA, its position in the missiles and missile systems market continues to grow in European domestic and other international markets. MBDA and the Eurofighter consortium are well placed to benefit from the expected European defence spending increases as a number of countries look to move nearer to their NATO commitments. In addition to Germany’s order for 38 new Typhoon aircraft in November, Germany and Spain are considering future Typhoon orders, and other Typhoon and support opportunities are being pursued in the Middle East and Europe.
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82 BAE Systems has a strong presence in Sweden through BAE Systems Hägglunds supplying and supporting tracked vehicles for international customers, and Sweden is one of the international partners on the Tempest programme.
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85 In Canada, BAE Systems is the warship design partner on the Canadian Surface Combatant programme of 15 ships for the Royal Canadian Navy. BAE Systems is working on other prospects in Canada.
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88 [[image:BAESF4.jpg]]
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91 = Products & Services =
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93 == Future technologies ==
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95 The company maintain a deep understanding of emerging and game changing technologies so the company can identify the areas of investment that will ensure the company maintain global leading in military, aerospace, and security capabilities. Partnering with academic and industrial leaders the company develop new technologies to support its future product strategies. This enables it to deliver innovative, affordable and effective capabilities to its customers and drive sustainable growth within the business.
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97
98 == Air ==
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100 BAE Systems Air, BAE Systems has a long and proud heritage in the development, manufacture upgrade and support of world-leading combat and fast jet trainer aircraft.
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103 Today, the company operate across the globe, in multiple markets to support its customers - wherever, whenever and whatever their challenges may be. The company support them across the whole life cycle of the air sector - from design, development and production, through to provision of aircraft, training, support and maintenance.
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106 To achieve this the company, collaborate with partners large and small, from within and beyond the defence sector both from the UK and around the globe. The company's international Air sector enables even greater collaboration, as the company work with agility and focus in support of its customers.
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109 == Land ==
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111 The company design, manufacture, upgrade, and support tracked and untracked and amphibious combat vehicles. The company also manufacture ammunition and precision munitions as well as being a supplier of artillery systems and missile launchers, and precision imaging and targeting solutions. The company manage and operate munitions facilities that support and sustain national capabilities.
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114 == Cyber security & intelligence ==
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116 BAE Systems is a leading supplier of cyber, intelligence, and security capabilities to government agencies, and a growing supplier of cyber and network security capabilities to commercial customers.
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119 == Electronics ==
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121 The company develop and deliver a wide range of advanced technologies for the commercial and military electronics markets. The company's portfolio includes flight and engine controls, electronic warfare and night vision systems, surveillance and reconnaissance sensors, mobile networked-communications equipment, systems integration, and environmentally friendly energy management systems.
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124 == Services ==
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126 The company offer the full spectrum of support, from engineering services to information management to commercial, financial, and human resource services, which the company tailor to meet the individual requirements of each customer.
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129 == Sea ==
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131 The company design, manufacture, and support complex surface ships, submarines, torpedoes, radars, and command and combat systems. The company also provide ship repair, maintenance and upgrade services, and are a supplier of naval gun systems, as well as being a provider of commercial shipbuilding.
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134 [[image:BAESF5.jpg]]
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138 = Financial Highlights =
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140 **Half Year 2022 Results**{{footnote}}https://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/results-and-reports/results/2022/2022-half-year-results-announcement.pdf{{/footnote}}
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142 * Sales increased by 2.8% on a constant currency basis5 to £10.6bn.
143 * Underlying EBIT of £1,112m increased by 4.4% on a constant currency basis.
144 * Underlying earnings per share increased by 11.9% to 24.5p, excluding the impact in 2021 of the
145 * one-off tax benefit. The Group’s underlying effective tax rate for the first half of the year was 19%.
146 * Free cash inflow of £123m (2021 £461m inflow, including £250m receipt in respect of the Filton and Broughton site disposals).
147 * Net debt (excluding lease liabilities) at £3,135m (£2,160m at 31 December 2021).
148 * Order backlog of £52.7bn (£44.0bn at 31 December 2021).
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150
151 **Group Portfolio actions**
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153 * UK Triennial pension review completed.
154 * Acquisition of Bohemia Interactive Simulations (BISim) completed in March.
155 * Agreement signed in July for the sale of BAE Systems’ financial crime detection business from Cyber & Intelligence, with completion expected in the next few months.
156 * Reflecting the changes in operational reporting lines effective from the beginning of the year, the BAE Systems Australia business has moved from being reported in the Air segment to the Maritime segment. Additionally, the Group has established a new Digital Intelligence business, bringing together the non-US digital and data capabilities to further strengthen how the company deliver these services and capabilities to its customers. Digital Intelligence is reported within the Cyber & Intelligence segment.
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159 **Electronic Systems**
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161 * Cumulatively, over 1,100 electronic warfare systems have been delivered on the F-35 programme.
162 * Deliveries continue of next-generation EW Eagle Passive Active Warning Survivability System to support upgrade of US Air Force F-15 platform and testing on F-15E and F-15EX test aircraft.
163 * Awarded $176m (£145m) for Airborne High Frequency Radio Modernization programme.
164 * Selected to design, test and supply energy management components for GE Aviation’s megawatt class hybrid electric propulsion system supporting NASA’s Electrified Powertrain Flight Demonstration project.
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166
167 **Platforms & Services**
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169 * M109A7 programme is consistently delivering at full rate production levels and received a $299m (£246m) contract.
170 * Deliveries of all five variants of Armored Multi-Purpose Vehicles to the US Army continue.
171 * Amphibious Combat Vehicle deliveries to US Marine Corps continue, with design and development under way for new mission variants.
172 * Bradley vehicle upgrade work continues on contracts for 459 vehicles.
173 * BAE Systems Hägglunds is ramping to perform on multiple contracts for CV90 and BvS10.
174 * CV90 wins Slovakia’s competitive evaluation for its Infantry Fighting Vehicle programme.
175 * US Ship Repair profitability was significantly impacted by the COVID-19 pandemic but continues to recover.
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178 **Air**
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180 * Production on F-35 is at full rate levels. 74 rear fuselage assemblies have been completed in the period.
181 * The Qatar Typhoon and Hawk programme is progressing well. The first Typhoon deliveries will commence in the second half of 2022.
182 * Work continues on the Typhoon programme and the production programme has been extended further following the award in June of 20 further aircraft for Spain.
183 * The future electronically scanned European Common Radar Solution continues in line with the Typhoon plan.
184 * The sector continues to work closely with industry partners and the UK government to continue to fulfil contractual support arrangements in Saudi Arabia.
185 * The Future Combat Air System (FCAS) programme continues as anticipated with the initial Concept & Assessment Phase contract underway across national and international partners.
186 * Saudi British Defence Co-operation Programme five-year renewal support funding agreed.
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188
189 **Maritime**
190
191 * £2.5bn of further contract funding awarded as part of Delivery Phase 3 for the Dreadnought programme.
192 * New Submarine Build Capability contract maintains BAE Systems' role as the lead for the design and build of nuclear submarines within the UK submarine enterprise.
193 * The Submersible Ship Nuclear Replacement (SSNR) programme has moved into its Functional  Design phase.
194 * Ongoing support to the Royal Navy’s Portsmouth-based flotilla and the operation of HM Naval Base Portsmouth under the UK Ministry of Defence’s Future Maritime Support Programme, including support to the UK’s two aircraft carriers.
195 * The Hunter Class Frigate programme in Australia continues to make strong progress through the prototyping phase.
196 * HMAS Toowoomba, the fifth ANZAC Class frigate to move through the ANZAC Mid Life Capability Assurance Programme (AMCAP) was returned to the Australian Navy following successful completion of the dry production phase of AMCAP.
197 * Mobilisation of the Challenger 3 and Mechanised Infantry Vehicle contracts secured by the RBSL joint venture is advancing well.
198 * Transition to the Next Generation Munitions Supply Solution (NGMS) contract is ongoing.
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200
201 = References =
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204 {{putFootnotes/}}
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