Investor Day 17Th May 2011

Investor Day 17th May 2011

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. Nothing in this document shall be regarded as a profit forecast.

. No planned practice alarms

. If there is a fire, alarm sounds with announcement to evacuate

. All automatic Fire Door Shutters will be activated separating the building to prevent fire from spreading and sprinklers will activate . Do not use lifts

. Please leave from the front of the hotel and turn left towards the courtyard

Services 14:30 Larry Prior - Services 15:00 John Gannon - US security

Electronics 15:15 Tom Arseneault - Electronics 15:35 Q&A 15:45 Break

Platforms 16:00 Bob Murphy - Land and Armaments 16:30 Nigel Whitehead - Programmes & Support 17:00 Q&A 17:10 Break

International 17:30 Guy Griffiths - International home markets 18:00 Ian King - Close and Q&A

18:15 Drinks 18:45 Dinner

. Company performing well

Group sales by activity* . Conservative planning assumptions Platforms . Aggressive cost reduction

Defence . Platforms sustained Services

. Focus on Services and growth fast lanes 48% . Defence Services Electronic Services . Cyber & Intelligence Systems . Electronics . Exports Cyber and Intelligence

. Strategy supports growth outlook

Office of the Linda Hudson Executive President & President & CEO Committee CEO BAE Systems, Inc.

Bob Murphy Larry Prior Executive Vice Executive Vice President President Product Sectors Service Sectors

Frank Pope Tom Arseneault Dave Herr John Gannon President President President President Land & Electronic Support Intelligence & Armaments Solutions Solutions Security Curt Gray Brad Jacobs SVP Dan Gobel SVP Human Resources & President Finance Administration Platform Solutions D. Michael Bennett Bob Fitch SVP SVP Information Management Government Relations

Doug Belair Gene Renuart SVP Senior Military Advisor Strategy & Planning

Ian Graham John Suttle SVP & General Michelle Lamberton SVP Counsel VP Communications Internal Audit

. Coming off a strong 2010 . Financial performance . Aligned organization to markets . Significant cost reductions

. Performing in the challenging environment of 2011 . Managed through budget uncertainties and continuing resolution . Continuing to reduce costs . Program performance and customer satisfaction is strong . Already closed on two acquisitions . On track to deliver our commitments . Strategy in place to return to growth and improve profitability in a challenging market

2010 Sales = $17.6B

. DoD proposed FY12 base budget is essentially flat . Expecting pressures and further erosion . Affordability becomes primary acquisition objective . Transition from Gates to Panetta . OCO for Iraq and Afghanistan declines - world remains dangerous . Targeted services, intelligence and security markets will grow . Platforms remaining in service longer . Commercial aviation is recovering . International demand for US products continues . Industry focusing on affordability and diversification

. Reduce costs to improve competitive positions and profitability

. Deliver superior performance to protect franchise positions

. Drive organic growth in market fast-lanes

. Acquire to strengthen positions and address adjacent markets

. Divest non-core assets

. Focus initiatives to attract and retain the best talent

. BAE Systems Inc. is a U.S. Company

. SSA is binding agreement - BAE Systems plc, BAE Systems, Inc., and the DoD . Mitigates concerns associated with Foreign Ownership, Control and influence . Negotiated and overseen by Defense Security Service (DSS) . Covers BAE Systems, Inc. and its owned and/or managed businesses . Control of BAE Systems, Inc. is limited to US citizens with DoD-issued security clearances

. Compliance and governance vested in the Inc. Board of Directors

The SSA is our license to trade in the US

. Continue aggressive cost reduction initiatives . Reposition land and armaments to support future customer demand . Drive organic growth in fast-lanes . Grow military and commercial electronics . Grow support and services . Grow intelligence and security . Grow exports . Continue to strengthen positions through acquisitions . Attract and retain the best talent

Return to growth and improve profitability in a challenging market

Services 14:30 Larry Prior - Services 15:00 John Gannon - US security

Electronics 15:15 Tom Arseneault - Electronics 15:35 Q&A 15:45 Break

Platforms 16:00 Bob Murphy - Land and Armaments 16:30 Nigel Whitehead - Programmes and Support 17:00 Q&A 17:10 Break

International 17:30 Guy Griffiths - International home markets 18:00 Ian King - Close and Q&A

18:15 Drinks 18:45 Dinner

Rising Demand for Services . Increased operational tempo . Fewer new starts . Platforms in service longer . Increased requirement to maintain and modernize equipment st . ISR: “Intelligence and information are the fire and maneuver of the 21 century”

Opportunities for Growth in: . Defense and Technical Services . Cyber and Intelligence

BAE Systems is well positioned for growth in Services

Our mission is to deliver sustainable growth in shareholder value through our commitment to Total Performance

Our values are - Trusted, Innovative and Bold

Our Strategy

- Operate and grow in the defence and security markets in the segments of Services, Electronic Systems and Platforms

- Grow in existing and develop new home markets

- Grow our export business

Invest and grow Invest and grow in Sustain our Implement the Develop new Implement in Services Electronic Platform positions home market home markets rationalisation including Systems strategy to grow and grow our and efficiency Readiness & our business export business programmes Sustainment, Cyber and Intelligence

Integrated Business Plans BAE Systems is committed to growing the services business

Services represent 48% of BAE Systems sales today

Platforms & Products

Defense Services

Electronic Systems Cyber & Intelligence

The group has invested in services to drive growth

Well positioned in Non-Nuclear Ship Repair, Modernization, Conversion and Overhaul

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

CRUISERS

DESTROYERS

Each Modernization Availability ~ $40M Extend to cover all DDGs

Maintaining and modernizing the fleet ensures sustainable growth

Strengths Today . The largest ever military procurement contracts . 30 year production program, 3000 aircraft . BAE Systems produces vital portions of the aircraft and electronic warfare capabilities

Opportunities Tomorrow

. Vital role in developing the F-35 Global Sustainment

. 50+ years of services

F-35 is a platform for sustainable growth

Strengths Today . BAE Systems Hawk Training Aircraft - over 900 aircraft; 18 Countries; over 2.5 million flying hours . F-35 lead-in trainer for the U.S. Navy, UK Royal Air Force and the Royal Australian Air Force Opportunities Tomorrow . T-X Advanced Jet Trainer Family of Systems . Program anticipated to be 350-500 aircraft, including ground based training system, spares and support Services for the air training domain is a material opportunity for the Group

.UK Harrier Line Pre 2002 - Before .UK Harrier Pulse Line - After Lean T-34, T-44 & T-6

Strengths Today . Lean Manufacture and Support Services for Military Aircraft around the world

Opportunities Tomorrow . Logistics, Maintenance, and Supply Chain Management to support US Navy Training Aircraft in the USA

Leveraging global capability across the group to win in the US

Strengths Today

• Royal Ordnance heritage • Commitment to UK munitions business and capital investment • Holston Army Ammunition Plant- “State of the Art” production • Long term franchise position Opportunities Tomorrow

• Operate Radford Army Ammunition Plant (RFAAP) • The only active full-spectrum US Military propellant manufacturing center

Munitions services are an emerging growth opportunity for the Group

Strengths Today . Extensive experience in radar design, range and launch operations . Support of US space launches at both Cape Canaveral and Vandenberg AFB at an affordable cost

Opportunities Tomorrow . Provide operation and maintenance (O&M) and sustainment services to US Air Force Launch Test Ranges

Significant emerging opportunities to support C4ISR Mission Networks

Full Life-Cycle . Facility management / training services . Maintenance / modification / modernization . Operational & fleet availability . Legacy platforms, current production, future systems

Cross-Domain . Maritime . Air . Land . C4ISTAR

BAE Systems maintains a competitive advantage

Ireland: Norkom UK: Detica Leading provider of counter‐fraud software to the Leading provider of security to the intelligence and international banking community security services USA: Intelligence & Security

Based out of Washington and focus on servicing . Employees: 350 . Employees: 1, 300 customers in the intelligence and security community

. Employees: 7,200

Denmark: ETI BAE Systems Australia A leading intercept and monitoring company with The business provides integrated solutions for the positions in Europe, Middle East and Asia Defence Force and security customers

. Employees: 260 . Employees: 55

BAE Systems maintains a ~$2.5B Cyber & Intelligence business

FederalFederal –Civi–Civill GovGov GovGov CommercialCommercial GovernmentGovernment

Services Services Products Products

and and

. Government will increase Sharing . BAE Systems is positioned at Sharing

. Secure government arena security requirements for the heart of the secure is setting the agenda for industry - to include the

Technologies government market Technologies

the wider federal /civil defense industrial base, ISPs use use government markets and others ‐ ‐ Information . The US/UK special relationship Information . Requirements extend to banks Dual remains core Dual . Extends to critical infrastructure and other mainstream . “Five Eyes” advantage industries BAE Systems is well positioned

TREIDAN™

New customers and new markets differentiates the Group’s service offerings

SecureSecure G Goovernmentvernment GovernmentGovernment TelecomTelecomss FiFinanancncialial Se Servrvicesices

Leveraging credentials in government to serve critical national infrastructure and financial services clients

. Growth in the global commercial security market is set to outpace growth in government expenditure

. Driven by a threat that increasingly targets commercial interests

Organised crime Border Counter- . There is a requirement for best-of-breed security terrorism capability, services by a trusted supplier

National . BAE Systems is leveraging its expertise security from secure government to help address

emerging requirements Critical Cyber National security Infrastructure . Timing and execution are key Traditional defence

The commercial market opportunity is a growth priority for the Group

Software suite covers: Product Capability Portfolio of 120 major anti‐money Enterprise Case Management global banking laundering; sanctions customers filtering; watch list Anomaly Detection

management; card Positions in more

fraud; cheque fraud; than 100 countries,

identity fraud and including the

internal fraud Link & Mass Compromise emerging markets of

Analysis Asia Pacific and the

Products operate Fuzzy Matching Middle East independently or as

part of an integrated More than 200

suite leading research and

Technical tools developers Partnering and distribution strategies Analytics platform to

give access to already cross‐sell services and

existing global products

networks

Norkom builds on BAE Systems existing product portfolio to reach new customers in new geographies - focusing on financial services

. Substantial, resilient and growing

. Driven by an evolving threat

. Increasing political awareness and demand for security

. Market is still being shaped . BAE Systems will help make the market and set requirements . Secure government, federal – civil government, commercial

BAE Systems is positioning to grow

GLOBAL PRESENCE HEADQUARTERS: ARLINGTON, VA ~7,200 EMPLOYEES . CALIFORNIA . INDIA ~1220 CURRENT OR . COLORADO . GERMANY FORMER MILITARY . MARYLAND . JAPAN . NEW HAMPSHIRE . MIDDLE EAST . NEW YORK . SOUTH ASIA . WASHINGTON D.C . SOUTH KOREA . UNITED KINGDOM

PROVIDE TOP QUALITY, CUSTOMER- EXCEEDING MARKET GROWTH THROUGH TAILORED INTELLIGENCE & SECURITY ALIGNMENT OF: SERVICES TO U.S. GOVERNMENT .MARKET-DRIVEN STRATEGY AGENCIES ANYWHERE IN THE WORLD .CUSTOMER-DRIVEN ORGANIC GROWTH .INTERNAL INVESTMENT .M&A

Analytics Targeting Knowledge & Data Cybersecurity & Support to Geospatial & ISR & Support to Management Operations

. Advanced . All-source . Image . IT infrastructure intrusion analysis Exploitation services management . Motion imagery Products . Mission . Full motion video application . Cross domain . Counter- solutions . Photogrammetry, development surveillance cartography and . Cross-domain . Cyber analysis . Analytic Training remote sensing data sharing . Real-time network . Watchlisting . Geospatial . Information forensics . Infrastructure products and portals . Integration and tools . Data discovery vulnerability . Imagery storage, tools solution development assessments ingest, discovery, . Fraud detection and dissemination

With areas of growth . Geospatial / full motion video Tighter market, but… . Advanced analytic training . Multi-INT fusion . Cybersecurity

. Sharpen focus on execution . Increase efficiencies & competitive advantage Stiffer Competition, but we… . Build capabilities through innovation . Increase customer intimacy . Align strategy, organization and investment

Target markets of higher growth potential

. Emerging needs from new threats

. Open source analysis

. Full motion video & multi-INT fusion

. Predictive analytics

. Next Generation Desktop/analyst tools

Grow into new and adjacent customers in the

intelligence community and DOD services

Invest in the business

. Focus on organic growth

. Build the top line, while guarding the bottom line

. Invest in human capital - leadership/skills

. Strategically align organization and leaders for new

markets

. Increase investment in the front end of the business

Invest in new strategic capabilities

. Global Analysis Tradecraft Advancement Center (GTAC)

. Training our analysts with real-world material - Yemen

. Activity-based intelligence management & exploitation

. Linking patterns of behavior and search for anomalies - Bin Laden

. Leading Edge NOSC Environment (LENE)

. Demonstrating superiority through performance - Monitoring BAE Systems networks

Pursue acquisitions in:

. Cybersecurity

. Identity management

. Knowledge management

. An ISS engineer in Reston, VA received praise for his participation in a demo video briefing to the Director of the National Geospatial-Intelligence Agency (NGA) and the Vice Chairman of the Joint Chiefs of Staff. The director said the video represented her vision for how NGA will revolutionize the user experience.

. A SpecTal/McClendon employee recently completed a briefing of her engineering research project to the U.S. Senate. The classified effort was the only NGA R&D project selected for the Intelligence Community Tech Days presentation. Among those that she briefed were the Director of National Intelligence and the Director of the National Geospatial-Intelligence Agency, as well as Senators, Congressmen and their staffers.

. A lead intelligence analyst on DIA's Afghanistan-Pakistan Task Force, published a document for the Secretary of Defense and senior executives in the White House. Several key policymakers expressed their gratitude for her work and are using it as a reference.

. One of our FMV analysts contributed to their program’s overview briefing for the new administration’s VIPs, including: the Vice President of the United States, who complimented the program, and the Director of the Central Intelligence Agency, who visited our FMV analysts’ workspace to receive the program briefing. Three different customer leads expressed the same sentiment, stating that they could not have achieved their mission without the BAE Systems team.

. Two of the nation’s largest actuary organizations have praised the call center work we do to support the Pension Benefit Guaranty Corporation (PBGC), a government agency that services and protects private sector pensions. The organizations wrote: “Customer service is a key component of the ease of compliance with any regulatory regime, and our members consistently report that excellent customer service is received when calls are placed to the PBGC.”

. One of our employees received a letter of thanks from Gen. David Petraeus, Commander, International Security Assistance Force/United States Forces - Afghanistan, who said our employee while deployed to (ISAF) Kabul, Afghanistan, “established himself as the subject matter expert on Afghan governance through his leadership, commitment and meticulous attention to details.” He went on to say “His briefings were precise and informative, and they helped to keep the entire ISAF leadership informed of key political developments, thus providing a common operating picture for all.”

© BAE Systems 2011/cleared for public release 44 Electronics Markets Tactical Communications 8% revenue Power Management $12B market Intelligence, Surveillance & & Energy Reconnaissance 4% revenue 16% revenue $0.6B market $6.1B market

Technology Management & Deep Mission Understanding Commercial Electronic Avionics Warfare 11% revenue $6B market Defense 31% revenue $5.7B market Avionics Soldier & Vehicle 12% revenue 18% revenue $6B market $7B market

12,500 Employees $4.6B Revenue 23 Sites

. Exploiting areas of continuing high demand in defense

. Pursuing large opportunities in core segments

. Investing in the technology to takeaway market share

. Balancing portfolio with commercial avionics and power management

. Leveraging strengths internationally

. Innovative technology management, coupled with deep mission understanding, provides focus for investments resulting in responsive product offerings.

. We will grow by:

. Exploiting areas of continuing high demand in defense

. Pursuing large opportunities in core segments

. Investing in technology to takeaway market share

. Balancing portfolio with Commercial Avionics and Power Management

. Leveraging strengths internationally

Services 14:30 Larry Prior - Services 15:00 John Gannon - US security

Electronics 15:15 Tom Arseneault - Electronics 15:35 Q&A 15:45 Break

Platforms 16:00 Bob Murphy - Land and Armaments 16:30 Nigel Whitehead - Programmes and Support 17:00 Q&A 17:10 Break

International 17:30 Guy Griffiths - International home markets 18:00 Ian King - Close and Q&A

18:15 Drinks 18:45 Dinner

$B % ROS 12

Portfolio well positioned for next cycle

Improved Competitive Position

76 © BAE Systems 2011/cleared for public release Vehicle Portfolio Positioned for Future Growth

Portfolio positioned to address future key customer priorities

Business Drivers Through 2015

• Bradley Transition from Reman to OEM • KSA Opportunity

• GCV or Further Bradley Evolution

• CV-90 Export • Canada/Norway

• AMPV

• Continued Growth in Platform Service & Support

GCV and CV-90…the catalyst for future growth

Business Drivers Through 2015

• Transition From MRAP and FMTV in 2011

• JLTV Opportunity • On 2 of 3 TD Teams

• MEC-V Opportunity • Strong Smart V Product Offering

JLTV & MEC-V represent the U.S. Army’s Future TWV Emphasis

JLTV

Kingdom Of Saudi Arabia Army’s #1 Priority Canada & Norway

Strong Competitive Position

Army’s 3rd Ground Priority Future Upgrades Continue AMPV has Broad Support to Funded, Supported and Emphasized by Sec Gates Replace M-113 Fleet Moving Forward Strongly Supported by the Army

We have a Resilient Portfolio of Capabilities

JLTV MEC-V

Competition Ongoing Army’s 2nd Ground Priority We are on 2 of 3 TD Teams Competitive Executable Solution

Leveraging Global TWV Capability

EFV CANCELLED

AAV Upgrade Naval Amphibious Vehicle Marine Personnel Carrier

Influencing Requirements Now Requirements TBD A Clear Priority Competitive Solution

India Worldwide Malaysia, Middle-East

Broad set of Capabilities to Generate Global Growth

. Restructured the Business…Enhanced Competitive Position

. Combat Vehicle Portfolio Positioned for Growth

. Aggressively Pursuing New TWV Programs

. Platform Services & Support Continues to Grow

. Positioned to Grow Export Markets

. Delivering Double Digit ROS%

Future Growth Underpinned by a Flexible Resilient Portfolio of Capabilities Aligned with Future Customer Requirements

86 © BAE Systems 2011/cleared for public release UK Market & Programmes

PROGRAMMES & SUPPORT Sales * Order Book by Operating Group *

Readiness & • Number 1 supplier to UK MODSustainment International 22% P&S Cyber and 52% EI&S Intelligence 12% L&A Electronic Platforms 14% Systems

. BAE Systems is the No.1 supplier to the UK Ministry of Defence Strong Order Book . 38,400 employees in the UK . Well established in air, maritime and land platforms and services World-class Products & . Strong export sales record Services . £883 million spend on R&D in the UK** Export Potential . Largest manufacturing-based employer in the UK, employing over 18,000 engineers**

87 © BAE Systems 2011/cleared for public release * As at 31.12.2010. Source: BAE Systems plc Annual Report and Accounts ** Oxford Economics, 2009 UK Defence and Security Market

TWO-TYPE FAST JET TWO AIRCRAFT ONGOING OPERATIONS FLEET CARRIERS

RETAIN UK CAPABILITY SUPPORT FOR EXPORTS GROWTH IN CYBER

HAWK

Operation Ellamy Submarine (Libya) Operations

Operation Herrick Quick Reaction (Afghanistan) Alert

UK remains a globally active nation with strong defence capability Atlantic Patrol Maritime Security World’s 4th largest defence budget

Operation Ellamy Submarine (Libya) Operations • Innovative Fast Jet availability contracts • Responsive to Urgent Operational Requirements • All Royal Navy Operation Herrick submarines built by Quick Reaction (Afghanistan) BAE Systems Alert • Through-life capability upgrade

• Specialist armoured vehicles • Vehicle support & upgrade BAE Systems • Assured munitions supply supports the UK Armed Forces in forward locations Atlantic Patrol •Surface Ship design, build & integration Maritime Security and at home in 17 •Through-life support & upgrade collocated bases •Availability-based support to patrol vessels

2011 2015 2020 2025

Type 45 Destroyer

Queen Elizabeth Class Aircraft Carrier

SURFACE SHIPSSURFACE Type 26 Frigate / Global Combat Ship*

Astute Class Attack Submarine

SUBMARINES Successor SSBN*

* Currently in design phase Through-life services for all UK Mission Systems

MISSION (Combat Systems, Surveillance Radar, Command Information Systems, Torpedoes) SYSTEMS

. 15 year Surface Ship ‘Terms of Business Agreement’ incentivised to Long-term work deliver efficiency savings of £350m to £900m programme . Long-term agreements designed to sustain key industrial capability

SYNTHETIC TRAINING NAVAL BASE SERVICES SUPPORT TO DEPLOYED SHIPS

. Terms of Business Agreement: enables transformation of UK shipbuild capability . Through-life Support across the surface fleet . Type 26 Frigate: £127m contract to define and establish requirements for the Royal Navy. The Global Combat Ship is being developed with interest from other navies

. Opportunities in several countries for supporting indigenous shipbuild and services . Successor submarine programme approaching new design phase . Future UK maritime support: naval base support, logistics and services

Full through- . Typhoon enhancements to support UK requirements and exports life capability . Workshare agreement covering all phases of F-35 lifecycle, the world’s in information largest defence programme superiority and combat air . Investing £800m in Samlesbury F-35 production facilities

. Tornado ATTAC contract transformed the way RAF aircraft are supported Innovative availability . Typhoon TAS contract maximising aircraft availability and cost effectiveness contracting for combat aircraft . Applying UK experience to Salam Support Solution for Royal Saudi AF support Typhoons

F-35 POSITION UNMANNED SYSTEMS EXPORT SUCCESS & POTENTIAL

TYPHOON CAPABILITY DEVELOPMENT F-35 POSITION

Norway

Denmark Canada UK* Netherlands *Typhoon Germany Austria and F-35 USA Turkey Spain Italy* Israel

KSA

Typhoon Australia F-35

Hawk Over 900 Aircraft to 18 Air Forces

Poland

USA Iraq Japan Qatar India* KSA* Oman* Malaysia * Typhoon and Hawk

Typhoon

Hawk

F-35 BAE Systems will continue to be a key partner in the global delivery of F-35

2010 Sales*

MBDA, India Air Astana KSA Platforms

Australia

Electronic Systems Readiness & Sustainment

*As at 31.12.2010. Source: BAE Systems plc Annual Report and Accounts 101 © BAE Systems 2011/cleared for public release Kingdom of Saudi Arabia

Magic Carpet

Lightning

Strikemaster

Al Yamamah

Tornado (Batch 1) Tornado (B2) Modernisation

Hawk / PC9

Sandown

Salam Typhoon

Training, weapons & spares

Industrialisation

Other opportunities

Manpower training & support services

. Key to regional stability

. Economic powerhouse

. Global cultural centre

. Rapidly increasing young population

. Tornado sustainment . Successful programme implementation

. Tactica . Vehicle deliveries

. Typhoon . Successful entry to service

. Land . Tactica . Substantial Bradley opportunity

. Air . Typhoon assembly location change . Tranche 3 requirements . Increasing support for expanding fleet . Enhanced training

. Industrialisation . Typhoon maintenance and upgrade facility

. Environment of sustained economic growth

. Defence White paper . Provides clear direction for defence and security requirements

. With a clear roadmap for defence funding

. BAE Systems well positioned . Largest Australian defence company . Key provider of capability in land sea and air

Hawk Wedgetail

LHD

AWD M-113

. Joint Strike Fighter . Support agreement

. New naval opportunities

. Growth in defence services provision

2010 Sales 2015 Sales

Other R&S Other R&S 55% 45% 41% 59%

Foreign investment and Developing Home Market management involvement in defence industry acceptable

Country has economic strength and growth

Leveraging Capabilities Country has increasing security requirements and defence needs

Defence industry seeking to expand its technological capability Multi-sector opportunities

. India has one of the fastest growing sustainable economies .....

. with significant growth in its defence budget

111 © BAE Systems 2011/cleared for public release Pakistan occupied Kashmir Shaksam Valley Naxal-affectedInstances areas of war in (PoK) Aksai Chin India-ChinaTerrorism incidents since 2006 India-Pakistan War, 1947 independent India’s DisputedTotal area Affected States: 16 history India-Pakistan War, 1965 Total affected Districts: 195 Ludhiana China Sikkim (India- China Uttarakhand Pakistan India-China War, 1962 India-China Disputed area Panipat Disputed area) India-Pakistan War, 1999 New India-Bangladesh Haryana RampurIndia-NepalIndia-Bhutan Border Border Delhi Jaipur Border Uttar Pradesh Ajmer Faizabad Arunachal Pradesh Rajasthan Lucknow Bihar Guwahati Bangladesh India-Myanmar Modasa Varanasi Border Madhya Pradesh West Bengal Gujarat Ahmedabad Malegaon arh India-Pakistan War, 1971 The Indian CoastChhat tLineisg Orissa Jharkhand MumbaiApproximately 7517 Kms Maharashtra

Andhra HyderabadPradesh

Karnataka Terror• 2005 incidents – 1608 in incidents; 700+ deaths 2006: 232 killed Bangalore • 2007:2006 147 – 1509 killed incidents; 750 deaths 2008: 332 killed Kerela Tamil Nadu • 20072009 – 1565 incidents; 650 deaths Sri Lanka • 2008 – 1591 incidents; 794 deaths

• 2009 – 1128 incidents; 1134 deaths

. Joint venture with Mahindra & Mahindra established

. Significant large scale opportunities

. Mine protected vehicle

. Future Infantry Combat Vehicle

. Artillery (M-777)

. Long standing relationship with HAL . Jaguar license build since 1979

. Hawk Indian Air Force and Indian Navy . Two contracts now totalling 123 aircraft . In-country assembly . HAL assembled aircraft deliveries underway

. MMRCA . Typhoon down select confirmed . Potential for 126 aircraft

– Long standing relationship with HAL – Jaguar license build since 1979

– Hawk Indian Air Force and Indian Navy – Two contracts now totalling 123 aircraft – In-country assembly – HAL assembled aircraft deliveries underway

– MMRCA – Typhoon down select confirmed – Potential for 126 aircraft

. Exploring opportunities for business in Naval sector

. Exploring route to market opportunities in the National Security and Commercial Security sectors

. Long standing relationship with BAE Systems and its legacy companies

. 70% of capability UK sourced eg:- . Jaguar . Hawk . Challenger . OPV’s . Typhoon . Progressing a significant new opportunity

. Growth agenda in all IOG markets

. Dependent on “pull-through”

. Home Market Model

. Company performing well Group sales by activity

. Conservative planning assumptions Platforms

. Aggressive cost reduction Defence Services . Platforms sustained 48% . Focus on Services and growth fast lanes Electronic Services . Defence Services Systems . Cyber & Intelligence Cyber and . Electronics Intelligence . Exports

. Strategy supports growth outlook