February 2010 1

Company Overview

February 2010 2

Introduction

BAE Systems is a global defence, security and aerospace company

delivering a full range of products and services for air, land and

naval forces, as well as advanced electronics, security, information

technology solutions and customer support services.

Key Facts

- 107,000 highly skilled people

- Global capability

- Customers in over 100 countries

- Annual sales exceed £22.4 billion

- Around 200 inventions patented globally every year

- Operations in seven home markets

February 2010 3

Our global operations

BAE Systems Home Markets

Australia

• c6,100 employees

India

• c70 employees

Saudi Arabia

• c4,400 employees

South Africa

• c800 employees

Sweden

• c1,600 employees

United Kingdom

• c32,800 employees

•United States

• c46,900 employees

Global Business Development Offices

February 2010 4

Military Air Solutions (MAS)

• A through-life business delivering advanced military air capability to our customers in the UK and overseas.

• Core Capabilities

• Prime contracting, in-service support, systems integration, rapid engineering, manufacturing, maintenance, repair and upgrade and military training.

• Facts

• Employs 15,500 people

• Comprises three through-life businesses:

• Typhoon Mission Support & International Programmes (TMS&IP)

• Air Mission Support & Services (AMSS)

• Autonomous Systems & Future Capability (AS&FC)

• 17 UK sites with a presence in Germany and the US

February 2010 5

Detica

• A provider of specialist solutions to help public and private sector clients deliver effective services to citizens and customers while protecting them from harm.

• Core Capabilities:

• Business and technical consulting

• Systems integration, delivery management and system support

• Managed services

• Key Facts:

• Over 1,500 highly-skilled people

• Offices in London, Guildford, Gatwick, Gloucester and Manchester

February 2010 6

Surface Ships

• Formerly BVT Surface Fleet, Surface Ships is the UK’s only provider of through-life surface warship capability; providing design, manufacture, integration and support.

• Core Capabilities

• Design, manufacture and integration of surface warships and their support vessels

• Complex engineering, integration and through-life support across the lifecycle of a ship

• Concept, prototyping and in-service support including system upgrades, ship modernisation, reactivation Ship repair and Naval Base management

• Key Facts

• Over 7,000 employees

• Offices in Glasgow, Portsmouth and Bristol

February 2010 7

Corporate Responsibility (CR) Drivers

• Good business practise

• Global presence

• Past reputational issues

• Negative perception of the industry (in the UK)

• Stakeholder expectations – employees, customer, investors

• Sustainable business model

February 2010 8

Corporate Responsibility (CR)

• BAE Systems is committed to becoming recognised as a leader in responsible

business worldwide

• We continue to integrate corporate responsibility across the Company

• BAE Systems’ CR agenda is currently focused on:

• Business conduct

• Integrating business conduct into the business, building on our response to the Woolf Report

• Safety and well-being

• Continuing progress against our four year plan towards leadership in safety

• Reducing Lost Work Day Cases to achieve world class performance

• Diversity & Inclusion

• Implementing a Diversity & Inclusion maturity matrix across the Company

• Environmental Sustainability

• Developing an environmental objective for senior leaders

• Reducing the impact of our products and operations

• Community Involvement

• Supporting local communities and charities with emphasis on armed forces, education and health charities

• CR agenda is externally assured to measure progress and effectiveness.

February 2010 9

The Journey to Safety Excellence

February 2010 10

Safety Maturity Matrix

• 5 levels covering: leadership, compliance, competency, performance, improvement

• Progression driven through top level objectives

• 2008: All businesses required to be at minimum Level 3

• 2009: 60% of manufacturing businesses required to be at Level 4

• 2010: All businesses required to be at level 4 and demonstrate progress to Level 5

• Underpinned by cross-site, cross businesses audit programme

• Next stage – focus on safety culture programme

February 2010 11

Safety Performance 2009

• Key areas of focus:

• Establishing common (minimum) standards across all operations

• Disseminating best practise

• Visible leadership

• All senior leaders conducting safety reviews

• 30% reduction in Lost Work Day Rate (further 20% minimum target set for 2010)

• 8% reduction in majors (main causes: slips & trips, falls from heights, manual handling)

• Cultural shift demonstrated through Maturity Matrix progress

February 2010 12

Thank you