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BAE Systems plc
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== Segments == Taken from their annual report<ref name=":1" />, BAE Systems has 5 major segments, which contribute most of its revenue, including electronic systems, platforms and services, air, maritime and cyber & intelligence. Here is a more detailed breakdown of each segment: === Electronic Systems === The electronic systems segment overlooks: * Design, build and support of integrated electronic warfare systems. ** '''Electronic Combat Solutions''' designs, builds and supports integrated electronic warfare systems for platform prime and government customers, and is a trusted mission systems provider for all three electronic warfare missions: electronic attack; electronic protection; and electronic support. * Development and production of avionics and electronic systems for military and commercial aircraft. ** '''Controls & Avionics Solutions''' develops and produces electronics for military and commercial aircraft, including fly-by-wire flight controls, full authority digital engine controls, power management solutions, cabin management systems and mission computers. * Design and manufacture of state-of-the-art systems and technology to enable the execution of precision strike missions. ** '''Precision Strike & Sensing Solutions''' designs and manufactures state-of-the-art systems and technology that enable our customers to execute their precision strike missions. * Next-generation threat detection, countermeasure and attack solutions. ** '''Countermeasure & Electromagnetic Attack Solutions''' provides next-generation threat detection, countermeasure, and attack solutions that deliver full-spectrum electronic warfare capabilities to enhance mission survivability. * Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems for airborne persistent surveillance, identification systems, signals intelligence, underwater and surface warfare solutions, and space resiliency. ** '''C4ISR Systems''' provides actionable intelligence through innovative technical solutions for airborne persistent surveillance, secure communications, identification systems, signals intelligence, underwater and surface warfare solutions, and space resiliency. * Electric and hybrid power and propulsion solutions to advance vehicle mobility, efficiency and capability. ** '''Power & Propulsion Solutions''' delivers propulsion and power management performance with innovative electrification products and solutions that advance vehicle mobility, efficiency and capability. Electronic Systems' operational and strategic key points include: * Opened state-of-the-art facilities in Manchester, New Hampshire; Cedar Rapids, Iowa; and Austin, Texas. * Cumulatively more than 1,200 electronic warfare systems delivered on F-35 programme. * Deliveries continue of next-generation EW Eagle Passive Active Warning Survivability System to support upgrade of US Air Force F-15 platform and testing on F-15E and F-15EX test aircraft. * Selected to design, test and supply energy management components for GE Aviation’s megawatt class hybrid electric propulsion system supporting NASA’s Electrified Powertrain Flight Demonstration project.The Long-Range Precision Guidance Kit programme reached a critical benchmark with the successful completion of its structural survivability test in the US Army’s Extended Range Cannon Artillery. * Delivered the 3,000th Multi-functional Information Distribution System Joint Tactical Radio System through our Data Link Solutions joint venture with Collins Aerospace === Platforms and Services === The platforms and services segment overlooks: * Design, manufacture, upgrade and support of tracked and amphibious combat vehicles. ** '''Combat Mission Systems''' focuses on a portfolio of tracked combat vehicles, amphibious vehicles, naval weapons, artillery systems, advanced weapons and precision munitions for the US military and international customers. * Manufacture, maintenance, repair and upgrade of naval gun systems, artillery, advanced weapons, missile launchers and precision munitions. ** '''BAE Systems Bofors''' provides advanced land and maritime weapons and precision-guided munitions. * Sustainment activities and services, including naval ship repair, modernisation and overhaul in the US. ** '''US Ship Repair''' is a major provider of non-nuclear ship repair, modernisation, overhaul and conversions to the US Navy and other government and commercial maritime customers across three US sites on the Atlantic and Pacific coasts. * Management and operation of government owned munitions facilities in the US. ** '''Ordnance Systems''' is the operator of the US Army’s Holston and Radford facilities under government-owned, contractor-operated agreements, and focuses on explosives, propellants and facility modernisation. * Production and upgrades for tracked and wheeled military vehicles for Turkish and international customers through a 49% interest in FNSS. ** '''FNSS''', the Turkish land systems business in which BAE Systems holds a 49% interest, produces and upgrades tracked and wheeled military vehicles for Turkish and international customers. Platforms and Services' operational and strategic key points include: * Significant increase in order intake, largely driven by the Hägglunds business. * US Army selected the BAE Systems Beowulf for its Cold Weather All-Terrain Vehicle (CATV) programme to replace the Small Unit Support Vehicles, with a contract estimated to be worth up to $278m (£231m) for 110 vehicles. * Submitted a proposal for the design concept phase for the US Army’s Optionally Manned Fighting Vehicle programme. * Our US shipyards marked continued performance improvements and secured $1.2bn (£1.0bn) in ship modernisation and repair orders. * Received a five-year contract extension for Ordnance Systems Radford operations through to 2026 and a one-year extension through to 2024 for the Holston facility and supply contracts. * Contract received worth $1.4bn (£1.2bn) to supply 152 CV9035 infantry fighting vehicles to replace the Slovakian Army’s infantry fighting vehicle fleet. * Czech government selected CV90 to replace its infantry fighting vehicle fleet. Contract expected in first half of 2023. === Air === The air segment overlooks: * World-leading capabilities in military and commercial aircraft technology. * A wide range of munitions, explosives, gun systems and artillery systems. * Training to the armed forces to train the right people to the right standard, at the right time. * Test support to commercial, military and aerospace customers. * Design and integration of new technology and systems upgrades to existing aircraft. * Advanced computer simulation to create realistic and immersive synthetic environments. * Advanced radar solutions to detect threats quicker and enable faster response times. * Design and manufacture of missiles and missile systems through a 37.5% interest in MBDA. Air's operational and strategic key points include: * Excellent progress on Tempest * The governments of the UK, Japan and Italy announced a new Global Combat Air Programme (GCAP), which will bring together the Tempest and F-X programmes. * Qatar Typhoon and Hawk programme is progressing well, with all nine Hawk aircraft accepted by the customer and eight Typhoon aircraft now delivered and in service with the Qatar Emiri Air Force. * Work continues on the Typhoon programme and the production programme has been extended following the award of 20 further aircraft for Spain during the year, for which BAE Systems supplies major units. * 11-year contract signed to continue to support the Royal Air Force’s fleet of Hawk fast jet trainer and Royal Air Force Aerobatic Team aircraft. * F-35 rear fuselage production continued at full-rate levels, with 150 assemblies completed in the year. * During the year, the Saudi British Defence Co-operation Programme was renewed for another five-year term. * All 22 Hawk aircraft have now been completed and have entered into service with the Royal Saudi Air Force. === Maritime === The maritime segment overlooks: * Design, manufacture and support of submarines and complex warships. * In-service support to surface ships and facilities management in the UK. * Design, manufacture and support of naval gun systems, torpedoes, radars, and naval command and combat systems. * Design and delivery of training systems and services for maritime platforms and equipment. * Design and manufacture of ammunition, precision munitions, artillery systems and missile launchers for UK and other armed forces. Maritime programmes include the construction of seven Astute Class submarines for the Royal Navy, as well as the design and production of the Royal Navy’s four Dreadnought Class submarines and eight Type 26 frigates. Additionally, the Maritime portfolio includes in-service support, including the delivery of training services and supporting the operation of HM Naval Base Portsmouth on behalf of the UK Ministry of Defence and the design and manufacture of combat systems, torpedoes and radars. Land UK’s munitions business designs, develops and manufactures a comprehensive range of munitions products serving a number of customers including its main customer, the UK Ministry of Defence. Rheinmetall BAE Systems Land (RBSL) – BAE Systems’ joint venture with Rheinmetall – is a UK-based business specialising in the design, manufacture and support of military vehicles used by the British Army and international customers. Land UK also develops and manufactures cased-telescoped weapons through its CTA International joint venture. In Australia, the business primarily delivers upgrade and support programmes for customers in the defence and commercial sectors across the air, maritime and land domains. This includes the Jindalee Operational Radar Network (JORN) upgrade. The business is also delivering the Hunter Class nine-ship Future Frigate programme. Services contracts include the provision of sustainment, training solutions and upgrades. Maritime's operational and strategic key points include: * The UK Ministry of Defence awarded a £4.2bn contract to BAE Systems to manufacture the next five City Class Type 26 frigates for the Royal Navy in Glasgow. * First City Class Type 26 Frigate entered the water and is being outfitted at Scotstoun shipyard in Glasgow. – £3.4bn of further contract funding awarded as part of Delivery Phase 3 for the Dreadnought programme. * The fifth Astute Class submarine, HMS Anson, exited our Barrow shipyard to commence sea trials in February 2023. The remaining two submarines, Agamemnon and Agincourt, are at advanced stages of construction. * Construction of the first two Dreadnought Class submarines is well advanced and, in September 2022, build activities commenced on the third of class submarine. A formal steel cut ceremony for the third boat was held in Barrow on 9 February 2023. – RBSL’s multi-million pound investment in its Telford manufacturing site completed in 2022, with manufacturing activities due to commence in 2023. * A$1.5bn (£0.8bn) extended ‘In Service Support’ contract for the Hawk aircraft commenced in 2022 for the Royal Australian Air Force. === Cyber & Intelligence === The cyber & intelligence segment overlooks: * Cyber, intelligence and security capabilities to US, UK and other government agencies to detect, deter and dissuade threats to national security. * Engineering, integration and sustainment services for critical weapon systems, Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) and cyber security. * Air and space force solutions to modernise, maintain, test, and cyber-harden aircraft, radars, strategic missile systems mission applications and information systems. * A range of space capabilities that enable integration across cyberspace, sea, land and air, allowing secure access to intelligence. * Mission-enabling solutions and services to intelligence and federal/civilian agencies. Intelligence & Security comprises the three US-based businesses. Air & Space Force Solutions focuses on providing the US Air Force, US Space Force and the combatant commands with innovative systems engineering and integration solutions to help to modernise, maintain, test and cyber-harden aircraft, radars, strategic missile systems, mission applications and information systems that detect, deter and dissuade threats to national security. Integrated Defense Solutions provides the US Army and US Navy with systems engineering, integration, and sustainment services for critical weapons systems, C5ISR and cyber security that enhance mission effectiveness. Our solutions are deployed across platforms and networks in the air, maritime, land and cyber domains. Intelligence Solutions provides innovative mission-enabling solutions and services to intelligence and federal/civilian agencies, as well as the provision of cost-effective synthetic training and simulation software products and components for global defence applications. Digital Intelligence provides cyber, intelligence and security expertise to help protect nations, businesses and citizens. Our services, solutions and products span customers in law enforcement, national security, central government and government enterprises, critical national infrastructure, telecommunications, military and space. Cyber & Intelligence's operational and strategic key points include: <u>Intelligence & Security</u> * Won a $699m (£581m) contract for operations, maintenance, and management services for the US Army’s Defense Supercomputing Resources Center. * Awarded one of the prime positions on a multi-award $300m (£249m) Indefinite Delivery, Indefinite Quantity contract to support critical mission operations for a government customer. * Multiple additional contract awards, including a $143m (£119m) five-year contract from the US Navy to support the integration of mission equipment, combat systems, and computer programmes for the Surface Combat Systems Center. * Completed the acquisition of Bohemia Interactive Simulations (BISim), which has been fully integrated into BAE Systems and continues to provide cutting-edge virtual training for allied militaries, including the $9m (£7m) DVS2 contract from the UK Ministry of Defence. <u>Digital Intelligence</u> [[File:Revenue2022.png|thumb|419x419px|2022 Revenue by segment]] * Strong order intake and revenue growth. * Continued integration and growth of the acquired In-Space Missions business. * In October 2022, the business completed the sale of the financial crime detection business.
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