Welcome to BAE Systems, Inc. - Investis CMSfiles.investis.com/bae/presentations/us_presentation_full.pdf · • Funds an increase in ship building plan 0 100 200 300 400 500 600

Welcome to BAE Systems, Inc.

Mark RonaldPresident & CEO BAE Systems, Inc.

29 March 2006

2

2005 – A Landmark Year for BAE Systems plc

• Financial plan delivered

• U.S. position strengthened

• European portfolio restructured

• UK business outlook enhanced

• New export business opportunities

3

11%35%

9%15% 27%

3%8%

23%21%

12%

18% 18%

BAE Systems plc Financial Performance2005 Sales 2005 EBITA

* Includes United Defense from 24 June 05

• Good project execution• Improved terms of trade• Acquisitions successfully integrated• All sectors delivering

ProgrammesCS&S

IS&P

CommercialAerospace

ProgrammesCS&S

IS&P

CommercialAerospace

EI&S

Land &Armaments

EI&S

Land &Armaments

ProgrammesCS&S

IS&P

ProgrammesCS&S

IS&P

27%

A strong portfolio of performing businesses

23%27%

4

18%18%

12%

21% 23%

8%11%

35%

9%15% 27%

3%

23%

8%*

27%

3%*

2005 Sales 2005 EBITA

BAE Systems, Inc. Financial Performance

• Delivering U.S. growth • Reorganized to better serve our customers and markets• Strong leadership positions• Operating Groups delivering

Land &Armaments

Land &Armaments

EI&S EI&SCommercial

AerospaceCommercial

Aerospace

IS&PIS&P

IS&PIS&P

CS&S CS&SCS&S CS&SProgrammesProgrammes

ProgrammesProgrammes

A strong portfolio of performing businesses

* Includes United Defense from 24 June 05

5

Group Structure

BAE Systems plcBAE Systems plc

BAE Systems Inc.BAE Systems Inc.

ProgrammesProgrammesProgrammesCustomer Solutions & Support

Customer Customer Solutions Solutions & Support& Support

Integrated Systems &

Partnerships

Integrated Integrated Systems &Systems &

PartnershipsPartnershipsCommercial Aerospace

Commercial Commercial AerospaceAerospace

Land & Armaments

Land & Land & ArmamentsArmaments

EW / Self-Protect

Systems

Tactical Comms / C4ISR

Avionics & Electronics

US Support Solutions

Combat Vehicles

Guns

Precision Munitions & Ordnance

Electronics & IntegratedSolutions

Customer Solutions

Electronics Intelligence & Support

Electronics Electronics Intelligence Intelligence & Support& Support

Focus ofyour visit:

Tactical Comms/C4ISRReston, VA

Tactical Comms/C4ISRReston, VA

Combat VehiclesYork, PennsylvaniaCombat Vehicles

York, Pennsylvania

Washington,DC

Washington,DC

6

BAE Systems, Inc. Leadership Team

Land & Armaments

Tom RabautPresident

Land & Armaments

Tom RabautPresident

Customer Solutions

Marshall BankerPresident

Customer Solutions


Electronics &IntegratedSolutions

Walt HavensteinPresident



BAE Systems Inc.

Mark RonaldPresident & CEO

BAE Systems Inc.


HumanResources

Curt GraySr. Vice President

HumanResources

Curt GraySr. Vice President

GovernmentRelations

Robert FitchSr. Vice President

GovernmentRelations

Robert FitchSr. Vice President

Chief FinancialOfficer

Robert MurphySr. Vice President

Chief FinancialOfficer

Robert MurphySr. Vice President

GeneralCounsel

Sheila ChestonSr. Vice President

GeneralCounsel

Sheila ChestonSr. Vice President

PerformanceExcellence

Galen HoSr. Vice President

PerformanceExcellence

Galen HoSr. Vice President

7

BAE Systems, Inc. Board of DirectorsDr. Robert S. Cooper

former Director, DARPA

Richard J. Kerr

former Deputy Director

of Central Intelligence

Gen Kenneth A. Minihan(USAF, Retired)

former Director, NationalSecurity Agency

Lee H. Hamilton

former Member of Congress

Co-Chair 9/11 Comm.

Dr. William Schneider, Jr.

former Undersecretary of State

for Security, Science and Technology

Gen. Anthony C. Zinni(USMC, Retired)

former Commander-in-Chief,

CENTCOM

Special Security Agreement: Provides access to classified U.S. Government Programs the same as other U.S. defense companies

Admiral Robert Natter(USN, Retired)

former Commander of Fleet

Forces Cmd & Atlantic Cmd

Gen. J.H. Binford Peay, III (USA, Retired)

former Vice Chief of Staff US Army& Cmdr, U.S. Central Cmd

Sheila Cheston

BAE Systems, Inc.Sr. Vice PresidentGeneral Counsel

Robert Murphy

BAE Systems, Inc.Sr. Vice President

Chief Financial Officer

Robert Fitch

BAE Systems, Inc.Sr. Vice President

Government Relations

George Rose

BAE Systems plcGroup Finance Director

Mark Ronald

BAE Systems, Inc.President & CEO

Mike Turner

BAE Systems plcChief Executive

8

BAE Systems, Inc. LocationsLand & Armaments, Customer Solutions, and Electronics & Integrated Solutions Operating Groups

45,000 employees(38,000 in U.S.)

9

Delivering the U.S. Strategy

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2000 2001 2002 2003 2004 2005

• Successful acquisition record

– 13 U.S. businesses integrated since 2000

• Good organic growth– 7% in 2005

– 10% average over the last 4 years

• United Defense– Delivering global land strategy

U.S. Sales GrowthU.S. Sales Growth

$m

UDI

BAE Systems is the Pentagon’s 7th largest prime contractor

10

US Dollar*

$6,726m

$590m

8.8%

$6.0bn

$588m

Sales

EBITA

Margin

Order book

Cash flow

£ Sterling

£3,697m

£324m

8.8.%

£3.5bn

£323m

2005 Performance

* 1.82 £/$

Electronics, Intelligence & Support

• Sales up 20% including acquisitions– 6% like for like

• Former BAE Systems North America plus UDI Ship Repair

• Consistent conversion of operating profit to cash flow


Land & Land & ArmamentsArmaments ProgrammesProgrammes



PartnershipsPartnerships


11

Land & Armaments

* 1.82 £/$

£ Sterling

£1,270m£42m

£86m

6.8%

£4.4bn

£168m

Sales

EBITA

Underlying EBITA

Underlying Margin

Order book

Cash flow

2005 performance

US Dollar*

$2,311m$76m

$156m

6.8%

$7.6bn

$306m

• UDI land contribution from 24 June

• Strong order intake

• £24m rationalization in UK business

• Good contribution from Haaglundsand OMC


Land & Land & ArmamentsArmaments ProgrammesProgrammes



PartnershipsPartnerships


12

The U.S. Market & Budget Outlook

• Near-term trends

• Quadrennial Defense Review

• U.S. defense budget

13

Near-term U.S. Market Trends

• Focus on Iraq & Afghanistan operations– Force protection (e.g. counter-Improvised Explosive Devices)– Urban and counter-insurgency warfare– Equipment reset

• Continued funding of modernization programs– Future Combat System (FCS) and U.S. Army Modularity– Next generation aircraft & ships

• Force transformation– Capability-driven requirements– Technology (e.g. networks, autonomous systems, persistent Intelligence,

Surveillance & Reconnaissance)

Continued investment in both modernization and transformation

14

Department of Defense Technology Investment Budget

Fiscal Year 2007 DoD Technology Budget by Technology Area*

26%

12%

7%

5%

14%

13%

12%

7%

4%

0% 5% 10% 15% 20% 25% 30%

Space Platforms

Materials/Processes

Air Platforms

Human Systems

Counter WMD

Weapons

Info Systems

Sensors, Electronics and EW

Classified & Other

% of DoD Technology Investment*

*As defined by BAE Systems, the DoD Technology Base comprises the Applied Research (6.2) and the Advanced Technology Development (6.3) budget activities of the Fiscal Year 2007 DoD’s RDTE budget.

15

Quadrennial Defense Review

• Defeat terrorist networks

• Defend homeland in depth

• Prevent acquisition or use of Weapons of Mass Destruction

• Shape choices of countries at strategic crossroads (Assure, Dissuade, Deter, Defeat)

Post-9/11 Security Challenges Capability Focus Areas

.

DisruptiveTraditional

Catastrophic

Likelihood

Vuln

erab

ility

Lower Higher

Lower

Non-state and state actors employing “unconventional”methods to counter stronger state opponents; terrorism insurgency, etc.

IrregularTerrorist or rogue state employment of WMD or methods producing WMD-like effects against U.S. interests

States employing military forces in well-known forms of military competition and conflict

Competitors employing technology or methods that might counter or cancel our current military advantages

Source: Department of Defense Quadrennial Defense Review briefing dated 6 Feb 2006

• Defense investment priorities reaffirmed

• No big surprises (no major program cuts)

16

U.S. Defense Budget

• Good growth maintained

• Land sector benefit from supplemental awards

• Aircraft programs largely unaffected

• Funds an increase in ship building plan 0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011

Budget Supplementals

Conservative planning assumptions despite continued market growth

$B

17

BAE Systems, Inc.

• Strong track record of growth

• Focus on high technology

• Excellent, growing workforce

• Proven financial and program performance

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A Successful Acquirer and Integrator

Control Systems

AEL Industries

Condor Pacific

SINGERElectronic Systems

Commercial Electronics

ALPHATECH, Inc.

Growth of more than 250% since 2000Organizational Alignment Strategic Investment

19

A Leader in Technology and Performance Excellence

• High technology work force – Greater than 15,000 engineers– 45% operate in CMM 4/5 organizations

(industry average 12%)– 82 U.S. patents awarded in 2005

• Above industry average investment in R&D and high-tech facilities

• Productive partnerships with leading educational institutions in the U.S. and UK

• Established the Centre for Performance Excellence to develop, embed and sustain a high-performance culture throughout the company

A record of innovation and technological breakthroughsfrom the dawn of flight and invention of the radio

20

Providing Critical Technology on Next Generation Platforms

• Future Combat Systems– Manned and unmanned vehicles– Non-Line-of-Sight Cannon (NLOS-C) – Communications systems

• F-22 Raptor and F-35 Joint Strike Fighter– Electronic countermeasures, electronic combat suite– Vehicle Management Computer– Communication, Navigation and Identification (CNI)

modules• DD(X), Littoral Combat Ship, Deepwater

– Mk 110 57mm weapon system, close-in ship defense– Advanced Gun System (AGS)– Long Range Land Attack Projectile (LRLAP)– Advanced Vertical Launch System (AVLS)

21

A Strong, Vibrant Workforce

• BAE Systems, Inc. hired 5,300 employees last year, 2,300 of those were newly created jobs

• More than 50% of U.S. employees hold security clearances

• Employee survey results above industry norms

• Demonstrated commitment to ethics and business conduct, community involvement and employee development

• A high performance culture committed to its values– Performance, Customers, People, Partnering,

Innovation & Technology

22

Summary

• Solid financial performance and reputation for program performance

• Dramatic growth, both organic and through acquisition

• Leadership in Technology and Engineering• Skilled and innovative people, dedicated to

national security and supporting the men and women in uniform

• Commitment to ethics and integrity in everything we say and do

Date/reference/classification

Customer Solutions Operating GroupMarshall BankerPresident

2

BAE Systems Inc.

Communication, Navigation, Identification & ReconnaissanceElectronic ProtectionInformation WarfareNational Security SolutionsPlatform SolutionsSensor SystemsAdvanced Systems & TechnologyCenter for Transformation

Land &Armaments

Tom RabautPresident

Land &Armaments

Tom RabautPresident

CustomerSolutions


CustomerSolutions






BAE Systems Inc.


BAE Systems Inc.


Information Technology Technology Solutions & ServicesShip Repair

Armament Systems DivisionGround Systems DivisionSteel Products DivisionInternational DivisionLand SystemsBAE Systems, AB


3

Customer Solutions

Customer Solutions

BAE SystemsInformationTechnology

TechnologySolutions &

ServicesShip Repair

Headquarters: Rosslyn, VA13,800 Employees

Customers, Performance, People

4

Customer Solutions Locations

5

BAE Systems Information Technology

43%

20%

19%

18%Intelligence Agencies

Defense & Military

Federal - NationalSecurityFederal - Non-NS

William G. Shernit, PresidentHeadquartered inMcLean, Virginia USA

• 4,200 Employees• Locations in 30 StatesCapabilities• Managed IT & Network Operations

– Enterprise Architecture– Information Assurance

• Mission Critical Applications• Intelligence Analysis and Production

Business Make-up

6

BAE Systems Information Technology

• High growth markets• Strong customer base (82% National

Security)– High recompete win rates (98%)

• Double digit organic growth over last 6 years

• Award fees >92% over last 6 years• Very modern enterprise IT offering

– Next level of market now accessible• Strong information assurance / multi-

level security

49%

25%

9%

11% 6%

Enterprise IT Solutions

Mission Specific Support

Analytic Services

Information Sharing

Other

Services Provided

7

BAE Systems Technology Solutions & ServicesJohn Baran, President (acting)Headquartered inRockville, Maryland USA

• 7,000 Employees• 40 Major LocationsCapabilities• Systems Engineering and Technical

Assistance (SETA)• Systems/Subsystems Integration• Operations and Maintenance

Business Make-up

96%

4% Defense &MilitaryFederal

8

BAE Systems Technology Solutions & Services

• Strong SETA capabilities– Franchise customers– High award fees (averaged in excess of 94% last 2 years)

• Systems/Sub-systems integration– AEGIS, SOCOM, White House Operations– High double digit growth averaged over the last 3 years

• Base Operations– Largest manufacturer of RDX & HMX explosives in U.S.– Strong radar capabilities

9

BAE Systems Ship Repair

85%

8% 7% Navy

OtherGovernmentCommercial

• 2,700 Employees• Eight Locations; Four Shipyards

Al Krekich, PresidentHeadquartered inNorfolk, Virginia USA

Capabilities• Ship Repair• Ship Conversion• Ship Modernization• Ship Maintenance• Ship Corrosion Control Services

Business Make-up

10

BAE Systems Ship Repair – Geographic Presence

11

BAE Systems Ship Repair

• Strategically located in major U.S. homeports• Largest non-nuclear ship repair business in U.S.• Long-term franchise Multi-Ship Multi-Option contracts with U.S. Navy• Strong award fees (95% over the past 2 years)• Strong growing commercial demand

– Cruise ships– Mega yachts

12

Summary

• 55-year record of success in major National Security and Federal Programs – we have earned exceptional customer loyalty.

• Customer focused – delighting our customers is our top priority.• Very strong domain expertise in information technology systems and

services, combat systems integration, system engineering and technical services, and ship repair

• Our success depends on providing best quality services and maintaining a low cost professional operating environment.

A Strong, Growing BusinessA Strong, Growing Business

BAE SystemsWalt HavensteinPresident, Electronics & Integrated Solutions

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Land &Armaments

Tom RabautPresident

Land &Armaments

Tom RabautPresident

CustomerSolutions


CustomerSolutions






BAE Systems Inc.


BAE Systems Inc.


BAE Systems Inc.




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Big Blue Arrows

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Electronics & Integrated Solutions

• Found in the air, land, sea and space• Products aboard many military and commercial aircraft,

most naval ships, and many Army platforms• Products guide spacecraft, and we• Field the world’s most advanced electronic countermeasures

• Found in every element of C4ISR*• Sensors to analysis• Mission planning and targeting• Weapons and guidance systems• Tactical communications and data links

* Command, Control, Communications, Computing, Intelligence, Surveillance & Reconnaissance

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Electronic Protection includes:

• Self-Protection• IR Countermeasures

• Threat Warning• Integrated Systems for

Electronic Combat• EW Support Systems

Support SystemsAN/ALQ-212ATIRCM/CMWS

AN/AAR-57 CMWS

AN/ALE-55Fiber Optic Towed Decoy

F-35 JSF F-22A AN/ALQ-157JETEYE™

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Signal IntelligenceSituation Awareness

Information Warfare

Information Warfare

• Signal Intelligence• Multi-Mission Payloads• Situation Awareness• Mission Management• RF and Optical Engineering• Intelligence Systems Domain Expertise• Hyperspectral Imaging

AN/ALR-67 Radar Warning Receivers & Antenna Array

Communications Jamming

Multi-Mission Payloads

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Platform Solutions

• Electronic flight controls• Vehicle management systems• Autopilots• Full-authority digital engine controls• Pilot displays• Aircraft data distribution systems• Precision navigation and guidance systems• Terrain warning and ground

proximity systems• Unmanned aerial vehicle systems• Enhanced vision systems for day, night,

and all-weather use• Hybrid propulsion and vehicle power management systems

Military Power Management

C-17 Globemaster III

F-35 JSF

S-92 Helicopter

Helmet-Mounted Display

UAS

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Sensors Systems

• Infrared Imaging Systems• Electronic & Laser Subsystems• Integrated Defense Systems• Flight Systems• Integrated Microwave Assemblies• Missile Electronics / Mission Computers• IR & Laser Missile Seekers• Millimeter-Wave Seeker• Multi-Mode Seeker Laser Transmitters

and Receivers• Digital Radio Frequency Tags (DRaFT)• Cooled / Uncooled IR cameras• Uncooled Fixed Mount and Handheld

IR Cameras for Surveillance,Homeland Security and First Responders

PathfinderAircraft Modification

Mission Processors and Computers

Advanced Precision Kill Weapon Seeker

Light Thermal Weapon SightDRaFT/Gabriel

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Advanced Systems & Technology

• Sensors and Signal Processing• Signal Processing• Distributed Sensors• Underwater Acoustics

• Radio Frequency Technology• Antennas and Receivers• Advanced Microwave Devices• Electronic Combat

• Electro-Optical / Infrared • EO/IR Advanced Systems• Photonics• Lasers

• Networking and Information Processing• Communications & Networking Technology• Decision Support

Radio Frequency

Sensors and Signal Processing

EO/IRCommunications and Networking

Technology

PUBS-06-B54-10

Dependable Supplier of Innovative Solutions

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Strategic Initiatives

• Readiness and Sustainment: Innovative operational support to DoD customers• Provide new technologies through spiral upgrades,

obsolescence management• Homeland Security: Leverage traditional military capabilities

• Awareness• Prevention• Protection and response

• C4ISR: Expand opportunities afforded by BAE Systems’transatlantic presence

PUBS-06-B54-12

Integrated System Technologies (Insyte)E&IS Memorandum of Understanding

• Signed Fall 2005• Brings “one C4ISR face” to customer in the global and

homeland security markets• MOU outlines how to communicate, cooperate and

collaborate (current collaboration: America’s Shield and SHAMAN)

• Insyte Profile • 4,000 employees• Battlespace architecting, joint C4ISR and knowledge

management systems, land and naval sensor systems, real time command and control

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New Facilities

• MicroIR® Manufacturing Facility• Faraday Test Center• Steinmetz Center for Innovation• San Diego Innovation Center• Omaha Facility

PUBS-06-B54-14

Military People

Land & ArmamentsTom RabautPresident

2


Land &Armaments

Tom RabautPresident

Land &Armaments

Tom RabautPresident

CustomerSolutions


CustomerSolutions






BAE Systems Inc.


BAE Systems Inc.


BAE Systems Inc.




3

BAE Systems Land & Armaments

International Division

Arlington, VASanta Clara, CAFNNS, Turkey

Land & ArmamentsArlington, VA

Anniston, AL

York, PASanta Clara, CA

Sterling Heights, MIAiken, SC

Fayette County, PAOrlando, FL

Ground Systems Division

Minneapolis, MNAberdeen, SDLouisville, KYBerthoud, CO

Armament Systems Division

BAE Systems, AB

Örnsköldsvik, Karlskoga,

Sweden

LandSystems

United KingdomSouth Africa

Steel Products Division

4

Ground Combat Systems –Reset & Modularity

− U.S. Army at war and reorganizing− RESET – Restore battle-worn equipment to full

operational condition

− MODULARITY – Conversion of Active and Reserve Components to standardized expeditionary organizations

− Funding:− Reset linked to intensity and duration of military

operations

− Dependence upon supplemental funding

Bradley A3

Bradley A2 Armored Pers.Carrier

Recovery Vehicle

Howitzer

5

Ground Combat Systems –Other Combat Vehicles

− Premium as a systems integrator with new technologies and platforms

− Growing international demand for armored all-terrain vehicles as well as mine protected systems

CV90

Warrior

Challenger

Bradley

Amphibious Assault Vehicle

RG 31System integrator of a large installed base of ground combat systems – domestic and international

ATV-Bv206S and BvS10

6

Ground Combat Systems –Artillery Systems

− Support Agreements for UK and U.S. systems

− Other customers for M777 emerging

− ARCHER part of Swedish Precision Engagement program; Denmark and other potential international customers

− Upgrade of Indian Army towed systems plus potential new towed system

− New interest in mortars

Globally preeminent with towed and self-propelled cannon artillery and mortar systems

AS 90

M 777

ARCHER

FH 77 B05 L52

M 109 A6

Turreted Mortar System /AMOS

M 119

7

Ground Combat Systems –System Support

Fiscal realities dictate extended service life requirement for most existing systems.

Through Life Support, Combat Vehicle Sustainment Support and Engineering Support Agreement contracts are presenting the opportunity to capitalize on:

− OEM for ~85% of U.S. fleet− Design Authority for ~95% of UK fleet

WarriorChallenger

Field Ammunition ArtillerySupport Vehicle

AS 90

Military Track, Spares and Components

CVR (T)

M88 A1

M109 A6 Self-Propelled Howitzer

Terrier

8

The Next Generation

Future Combat Systems– System-of-Systems including 18 platforms

and a network– L&A role in common chassis, 5 manned

vehicle variants, and 2 ground robotic vehicles

Future Rapid Effects Systems– Program to replace current UK fleet with

tracked and/or wheeled medium weight vehicles

– Competing aggressively in Technology Demonstration Program

SEP– Swedish multi-role, medium weight modular

armored tactical system development program

– Realistic, low-risk precursor to FRES

Transformation technologies: rapidly deployable, lethal, survivable, networked

FCS

ICV

FMRV

NLOS-C

NLOS-M

ARV-Assault & RSTA

MEVSEP

Indirect Fire Control

Command & Control

FR ATGW (Overwatch)

Medical

ProtectedMobility

FRES

9

Naval Systems –Large Caliber Guns and Launcher Systems

− Essential to US DD(X) and CG(X).

− Extended Range Guided Munition and Long Range Land Attack Projectile (LRLAP) extend range and precision achievable only with Mk 45 and Advance Gun System

− Multi-year option contracts for domestic gun and VLS canister work

− Growing international customer interest in modern guns and launch systems.

Naval Armament Systems for all future combatant ships are our products

Mk 45 Mod 4 - 5 inch/62 Caliber

Mk 41 Vertical Launch Systems and Canisters

Advanced GunSystem

Long Range Land Attack Projectile

Mk 57 VLS

10

Naval Systems –Medium Caliber Guns

− Medium caliber guns selected for:− U.S. Navy

− Littoral Combat Ship

− DD(X) Destroyer

− Existing fleet

− U.S. Coast Guard− Deepwater National Security

Cutter

− Offshore Patrol Cutter

− Fast Response Cutter

− Navies of Sweden, Finland and Mexico

Mk 38 Mod 2 MGS

Mk 110 57mmClose In Gun System

57mm Mk 3 Gun

Positioned with advanced capabilities and associated ammunition which offer unprecedented operational advantages for USN, USCG and international customers

11

Munitions: Current and Future

− Accelerated fielding of Excalibur for operational U.S. and Canadian forces in Iraq and Afghanistan

− Sensor Fused Munition (BONUS) fielded in Sweden and France and being evaluated by the U.S. and UK

− CCF potential JDAM-like kit for the millions of “dumb” 105 and 155 mm projectiles

− Increase profitability of small arms ammunition and opportunities for specialty warheads and bunker busters

− Insensitive munitions gaining in importance to our customers, both for safety and effects

Insensitive Munitions

Premium on improved accuracy and precision in both area and point target fires, primarily through munitions improvements

Course Correcting Fuse

Bonus

Excalibur

Conventional Munitions

Course Correction Fuse

12

Survivability Systems

− Global War on Terrorism (GWOT)− Technology and expertise as system

integrator of armor capabilities

− Survivability solutions offering new opportunities for body armor

− Active systems defeating wide range of threats while minimizing collateral damage

Meeting the needs of the warfighter and opening new vistas for protecting the future force

ActiveProtection

Rocket Propelled Grenade/Anti-Tank Guided Missile Protection

Vehicle Armor

Body Armor

13

Distinctive Advantages

Strategic− Global− Geopolitical Support− 95% UK Installed

Base− 85% U.S. Installed

Base− Guns− Public/Private

Partnership

Tactical − Modeling &

Simulation− Software Expertise− Manufacturing Cost

Structure− “Warrior Saving”

Automation− Accuracy & Precision− Survivability− System Power

Management

Operational− Program

Management Culture

− Safety− “Veteran” Workforce− Lean− Performance

Sharing− Balance Scorecard

14

– DOD FY06 Supplemental submitted in February– House Passed Request HAC Approved

Carrier Mods (M113) $50 million $50 millionBFIST $116.2 million $116.2 millionBradley ODS - $250 millionBradley Reset* ($104 million) ($104 million)M88 (IRV) - $100 million*Contained in O&M unspecified request

– Senate action begins in April– Final passage expected by end of May

- FY07 Bridge Supplemental details submitted after FY06 Supplemental passes

- FY07 Budget, with Bridge Supplemental included, passes in Fall 2006

ProcurementFY07 Budget and Supplementals

Documents

Welcome to BAE Systems, Inc. - Investis CMSfiles.investis.com/bae/presentations/us_presentation_full.pdf · • Funds an increase in ship building plan 0 100 200 300 400 500 600