Delivering Real Advantage
Total Page:16
File Type:pdf, Size:1020Kb
BAE SYSTEMS plc BAE Systems is an international company Annual Review 2005 CONTENTS 6 Carlton Gardens London SW1Y 5AD engaged in the development, delivery and support Results in brief, United Kingdom of advanced defence and aerospace systems in highlights and outlook 1 Telephone +44 (0)1252 373232 Chairman’s letter 2 the air,on land, at sea and in space. The Company Chief Executive’s review 3 Registered in England and Wales No. 1470151 designs, manufactures and supports military Market overview 5 Website details aircraft, surface ships, submarines, combat Group strategy framework 6 www.baesystems.com Embed a high performance vehicles, radar,avionics, communications, culture across the Company 7 electronics and guided weapon systems. It is a Win profitable new business and optimise value from our order book 8 pioneer in technology with a heritage stretching Grow our export business from a back hundreds of years. It is at the forefront of strong transatlantic business base 9 Increase UK/US industrial innovation, working to develop the next generation technology sharing 10 of intelligent defence and security systems. Optimise our business portfolio 11 Business portfolio actions 12 Electronics, Intelligence BAE Systems has major operations across five & Support 14 continents and customers in some 130 countries. Land & Armaments 16 Programmes 18 1 The Company employs approximately 100,000 Customer Solutions & Support 20 people and generates annual sales in excess of Integrated Systems & Partnerships 22 £15 billion through its wholly-owned and equity Commercial Aerospace 24 accounted investment operations. Summarised financial review 26 Corporate responsibility 27 1 including share of employees of equity accounted investments Board of directors 28 Corporate governance 30 Summarised financial statements 33 Auditors’ statement 36 Shareholder information 37 Delivering real advantage Important note This Annual Review is a summary of the information in the full Annual Report of BAE Systems plc. It does not contain sufficient information to allow a full understanding of the results of the Group and state of affairs of the Company or of the Group, and of their policies and arrangements concerning directors’ remuneration. For further information, the full Annual Report should be consulted. This can be found on the Company’s website, www.baesystems.com. Alternatively, copies are available, free of charge, from: The Company Secretary BAE Systems plc 6 Carlton Gardens London SW1Y 5AD If in future years you wish to receive the full Annual Report you should write to the Company’s registrars, Cover image Lloyds TSB Registrars, at the address shown on page 37. Bradley A3 BAE SYSTEMS plc BAE Systems is an international company Annual Review 2005 CONTENTS 6 Carlton Gardens London SW1Y 5AD engaged in the development, delivery and support Results in brief, United Kingdom of advanced defence and aerospace systems in highlights and outlook 1 Telephone +44 (0)1252 373232 Chairman’s letter 2 the air,on land, at sea and in space. The Company Chief Executive’s review 3 Registered in England and Wales No. 1470151 designs, manufactures and supports military Market overview 5 Website details aircraft, surface ships, submarines, combat Group strategy framework 6 www.baesystems.com Embed a high performance vehicles, radar,avionics, communications, culture across the Company 7 electronics and guided weapon systems. It is a Win profitable new business and optimise value from our order book 8 pioneer in technology with a heritage stretching Grow our export business from a back hundreds of years. It is at the forefront of strong transatlantic business base 9 Increase UK/US industrial innovation, working to develop the next generation technology sharing 10 of intelligent defence and security systems. Optimise our business portfolio 11 Business portfolio actions 12 Electronics, Intelligence BAE Systems has major operations across five & Support 14 continents and customers in some 130 countries. Land & Armaments 16 Programmes 18 1 The Company employs approximately 100,000 Customer Solutions & Support 20 people and generates annual sales in excess of Integrated Systems & Partnerships 22 £15 billion through its wholly-owned and equity Commercial Aerospace 24 accounted investment operations. Summarised financial review 26 Corporate responsibility 27 1 including share of employees of equity accounted investments Board of directors 28 Corporate governance 30 Summarised financial statements 33 Auditors’ statement 36 Shareholder information 37 Delivering real advantage Important note This Annual Review is a summary of the information in the full Annual Report of BAE Systems plc. It does not contain sufficient information to allow a full understanding of the results of the Group and state of affairs of the Company or of the Group, and of their policies and arrangements concerning directors’ remuneration. For further information, the full Annual Report should be consulted. This can be found on the Company’s website, www.baesystems.com. Alternatively, copies are available, free of charge, from: The Company Secretary BAE Systems plc 6 Carlton Gardens London SW1Y 5AD If in future years you wish to receive the full Annual Report you should write to the Company’s registrars, Cover image Lloyds TSB Registrars, at the address shown on page 37. Bradley A3 Operating and financial review BAE Systems at a glance Shareholder information BAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air,land and naval forces as well as advanced electronics, information technology solutions and customer support services. Registered office Visit the website for more details: Dividend reinvestment plan 6 Carlton Gardens www.shareview.co.uk The company offers holders of its ordinary London shares the option to elect to have their SW1Y 5AD Details of software and equipment dividend reinvested in shares purchased Electronics, Land & Armaments Programmes Customer Solutions Integrated Systems Commercial United Kingdom requirements are given on the website. in the market instead of cash. If you would Intelligence & Support & Support & Partnerships Aerospace Telephone: +44 (0)1252 373232 like to make this election, please request Company website: www.baesystems.com Shareholder dealing service a dividend reinvestment plan mandate Hoare Govett Limited offers a low cost from our registrars: Registered in England & Wales, postal dealing service enabling UK resident No. 1470151 shareholders to buy or sell BAE Systems plc Lloyds TSB Registrars shares. Basic commission is 1%, subject to The Causeway, Worthing Registrars a minimum charge of £15.00. If you require West Sussex BN99 6DA Lloyds TSB Registrars (0140) further information please contact: Telephone: 0870 241 3018 The Causeway, Worthing Telephone number from outside the UK: West Sussex BN99 6DA Hoare Govett Limited +44 121 415 7058 United Kingdom Telephone: +44 (0)20 7678 8300 Telephone: 0870 600 3982 American Depositary Receipts (+44 121 415 7058 from outside the UK) This notice has been approved by Hoare The BAE Systems plc American Depositary Principal operations An industry leader in a variety of A global leader in the design, Comprises the Company’s air Provides support solutions for current Comprises a portfolio of high- Comprises the Company’s 20% Principal operations military communications, electronic development, production and through- systems, naval ships and submarines and future customer requirements, technology defence systems interest in Airbus together with the Govett Limited which is authorised and Receipts (ADRs) are traded on the Over identification, navigation and guidance life service support of armoured activities together with the Company’s addressing the trend within armed businesses: Integrated System Aerostructures business and the If you have any queries regarding your regulated by the Financial Services Authority. The Counter market (OTC) under the systems, and a provider of network combat vehicles, major and minor participation in the UK’s Future forces to work more closely with Technologies; Underwater Systems; regional aircraft asset management shareholding, please contact the registrars. symbol BAESY. One ADR represents centric warfare solutions and a broad calibre naval guns, missile launchers, Carrier programme. industry to optimise their military 37.5% interest in MBDA; 20.5% and support activities. range of support solutions, including canisters, artillery systems and capability in the most effective manner. interest in Saab; and 50% interest ShareGift four BAE Systems plc ordinary shares. major ship repair activities for the intelligent munitions. Key capabilities include the integration in Gripen International. The Orr Mackintosh Foundation operates a JPMorgan Chase Bank, N.A. is the depositary. US Navy. and delivery of effective supply chain charity donation scheme for shareholders and logistics management. CS&S is the prime contractor on the with small parcels of shares which may If you should have any queries, Al Yamamah programme. be uneconomic to sell. Details of the please contact: Shareview service scheme are available from ShareGift JPMorgan Chase Bank, N.A. Main operating regions US, UK/Europe US, UK, Sweden, South Africa UK UK, Saudi Arabia, Australia UK, Sweden, France, Germany, Italy UK, France, Germany, Spain, US Main operating regions The Shareview service from our registrar, at www.sharegift.org or by telephone JPMorgan Service