Report Publication Announcement • Mar 29, 2012
Report Publication Announcement
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This notice advises you that you can read the full BAE Systems Annual Report 2011 and Notice of Annual General Meeting online at: www.baesystems.com/reporting It also provides a brief overview of our performance in 2011.
For more information on the benefits of e-communications see back page
I am writing to advise you that the Company's Annual Report for 2011 has been published together with the Notice of Annual General Meeting. These documents are available to be viewed on the Company's Shareholder Reporting website that you can access at:
You will see from the Annual Report 2011 that BAE Systems maintains a well-defined strategy with a defence focus at its core, but with the flexibility to adapt to changes in the business landscape. In the current challenging business environment, the Group continues to take the actions the Board believes are necessary to remain competitive and to deliver value for shareholders.
The Board has recommended a final dividend of 11.3p per share making a total of 18.8p per share for the year, an increase of 7.4% over 2010. Subject to shareholder approval at the 2012 Annual General Meeting (AGM), the 2011 final dividend will be paid on 1 June 2012 to shareholders registered on 20 April 2012.
As was the case last year, the Company is utilising the electronic communications provisions that shareholders agreed several years ago which enable us to deliver documents to shareholders via our website. Environmental and financial savings will result from this.
On the back of this document you will find a guide to the Shareholder Reporting website. The Annual Report 2011 is provided on this site in a format that we hope will help you access easily the information you require from the Report. You will also find the Notice of Annual
General Meeting on the website. This year's meeting is to be held on 2 May 2012 at the Queen Elizabeth II Conference Centre, London starting at 11.00am. If you are unable to attend the meeting but wish to vote by proxy you can do so via the Shareholder Reporting website. Simply click on the shareholder voting icon and use the numbers on the enclosed card to access the voting system – even if you will be attending the meeting you can still vote by proxy and, if you wish, change your vote during the meeting. Alternatively, you can vote by proxy using the enclosed card.
The AGM is an important part of the Company's governance that allows shareholders to understand more about BAE Systems and ask questions on the resolutions that are to be put to the meeting. If, ahead of the meeting, you would like to ask a question in relation to the business to be discussed at the AGM, you can do so online on the Shareholder Reporting website. We will provide written answers dealing with those topics that feature most frequently in your questions. These will be published on the day of the AGM and be available to everyone attending the meeting; they will also be posted on our website.
Overleaf you will see the top-level financial figures in respect of the Company's performance in 2011 and an overview of the different businesses within the BAE Systems Group. This is just a brief summary and is not a substitute for the full Report that can be accessed online.
Finally, I would like to highlight the importance I place on communications with our shareholders and the central role the AGM plays in this. I want attendance at our AGM to be an interesting and worthwhile experience, allowing directors to report on their stewardship of the Company and to answer shareholders' questions on this. I hope as many shareholders as possible are able to attend and participate in the meeting on 2 May.
Yours sincerely
Dick Olver Chairman 29 March 2012
It is recommended that you read the full Notice of Annual General Meeting before taking a decision on how to vote at the Annual General Meeting. It is also recommended that you read the full BAE Systems Annual Report 2011. This notice does not set out the matters on which shareholders are being asked to vote at the Annual General Meeting and is not a substitute for such documents.
If you have sold or otherwise transferred all your shares in BAE Systems plc, please forward this document at once to the purchaser or transferee or to the stockbroker, bank or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. If you have sold or otherwise transferred only part of your holding of shares, you should retain this document.
BAE Systems is a global defence, aerospace and security company with approximately 93,500 employees2 worldwide. The Group delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services. Principal
Financial Key Points
programme
agreement benefit
– Headline sales2 reduced by 14%
| Results from continuing operations | 2011 | Restated1 2010 |
|---|---|---|
| Sales2 | £19,154m £22,275m | |
| Underlying EBITA3 | £2,025m | £2,179m |
| Operating profit | £1,580m | £1,601m |
| Underlying earnings4 per share: | ||
| – including R&D tax benefit | 45.6p | 39.8p |
| – excluding R&D tax benefit | 39.7p | 39.8p |
| Basic earnings per share5 | 37.0p | 27.9p |
| Order book6 | £36.2bn | £39.5bn |
| Other results including discontinued operations | 2011 | 2010 |
| Dividend per share | 18.8p | 17.5p |
| Operating business cash flow7 | £634m | £1,187m |
Net debt (as defined by the Group) £(1,439)m £(242)m
– Underlying EBITA3 of £2,025m (2010 £2,179m) impacted by:
OPVs upon agreement of a sale to the Brazilian Navy
– a £160m charge in the first half on the Omani Offshore Patrol Vessel (OPV)
– deferred recognition of sales and profit relating to the formalisation of price
– Benefit of 5.9p per share from an agreement with the UK tax authorities – Underlying earnings4 per share broadly in line with 2010, excluding the tax
– a £60m benefit from the increase in the carrying value of the Trinidad and Tobago
– a £125m benefit from a UK Ministry of Defence settlement agreement
Electronic Systems comprises the US- and UK-based electronics activities, including electronic warfare systems and electrooptical sensors, military and commercial digital engine and flight controls, next-generation military communications systems and data links, persistent surveillance capabilities, and hybrid electric drive systems.
operations
– £500m market purchase of shares completed
escalation on the Salam Typhoon programme
– \$1.25bn (£0.8bn) debt financing completed
– Total dividend increased by 7.4% to 18.8p
Sales2
13,400 Number of employees2
£2,645m
Cyber & Intelligence comprises the Group's cyber, secure government, and commercial and financial security activities within the US-based Intelligence & Security business, and the UK-headquartered BAE Systems Detica business.
US UK
Platforms & Services (US) comprises the US-headquartered Land & Armaments business, with operations in the US, UK, Sweden and South Africa, together with US-based services and sustainment activities, including ship repair and modernisation services.
UK
Platforms & Services (UK) comprises the Group's UK-based air and maritime activities, and certain shared services activities, including the UK-based Advanced Technology Centre.
Platforms & Services (International) comprises the Group's businesses in Saudi Arabia, Australia, India and Oman, together with its 37.5% interest in the pan-European MBDA joint venture.
Saudi Arabia Australia India
US UK
£5,305m 24,100
£6,258m 29,000
£3,794m 15,900
Cautionary statement: All statements other than statements of historical fact included in this document, including, without limitation, those regarding the financial condition, results, operations and businesses of BAE Systems and its strategy, plans and objectives and the markets and economies in which it operates, 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 report save as would arise under English law.
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© BAE Systems plc 2012. All rights reserved.
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TOTAL
AEROSPACE TECHNICAL
ELECTRONICS
PROGRAMME
SERVICES
VEHICLES
CUSTOMERS
INCLUSION
INDIA
DEFENCE
AUSTRALIA
PERFORMANCE
MILITARY
INTELLIGENCE DIVERSITY
PLATFORMS
ETHICS
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