BAE-annual-report-2014

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Strategic Report GROUP STRATEGIC FRAMEWORK Our strategy sets out what we aim to achieve as a company. Our vision is to be the premier international defence, aerospace and security company Our mission is to safeguard and enhance our customers’ vital interests and deliver sustainable growth in shareholder value Our strategy – Maintain and grow our defence businesses – Continue to grow our business in adjacent markets – Develop and expand our international business – Inspire and develop our people to drive success – Enhance overall financial performance and competitive positions Strategic objectives Continuously improve efficiency and competitiveness Continue to drive value from our defence platforms and services Accelerate the growth of our cyber, intelligence and security business Continue to win new international orders Continue to grow our electronic systems business Leverage our technology and engineering capabilities Our values are Trusted, Innovative and Bold 10 BAE Systems Annual Report 2014
Strategic Report Our strategy has guided us through challenging market conditions in recent years. Government spending is still under pressure in the US and UK, our largest markets, and competition is increasing around the world. We have responded by focusing on meeting our commitments to customers and on improving efficiency, affordability and financial performance. All of these are essential to sustaining and winning new business in these competitive times. We have also continued to invest in our business and people and to develop the technology and skills we need to drive the business forward. The operating environment is still challenging, but we have positive momentum and a strong foundation to build on. Our strategy has evolved in a number of areas, to provide a clear focus for our stakeholders. Vision Our vision is to be the premier international defence, aerospace and security company – a change from ‘global’ to recognise that, as a defence contractor, not all markets are accessible to the Group. Mission Our mission has been updated to recognise the important role we play in protecting and enhancing our customers’ vital interests, from defence and national security to critical infrastructure and commercial information. Strategy Our strategy sets out five key longer-term areas of focus to help us achieve our vision. Maintaining and growing our defence businesses remains a core part of our strategy. We also continue to pursue growth in adjacent markets, including cyber security and commercial avionics. We are a trusted partner to the governments of a number of countries around the world and we continue to expand our international business. We will continue to support and develop our people and enhance competitiveness to drive success. Strategic objectives We define our strategic objectives, which set near-term priorities and help employees to align their personal objectives to the Group’s strategy. This year, we have added a sixth strategic objective to accelerate plans to use our technology and engineering capabilities to find new ways to create value. Each year, the Group has an overall objective to meet its financial targets and each Executive Committee member has specific annual objectives which focus on deliverables in support of the Group’s six strategic objectives. Values Our values underpin our strategy, define how we work and represent a clear definition of our corporate culture. STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS P12 How our business works P18 Performance against our 2014 objectives BAE Systems Annual Report 2014 11
Page 1 and 2: ANNUAL REPORT 2014
Page 3 and 4: Strategic Report 2014 AT A GLANCE I
Page 5 and 6: Strategic Report OUTLOOK FOR 2015 G
Page 7 and 8: Strategic Report The review confirm
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Page 11: Strategic Report LAND 15% SALES 1 A
Page 15 and 16: Strategic Report OUR BUSINESS IS EN
Page 17 and 18: Strategic Report The Group’s Elec
Page 19 and 20: Strategic Report M&A In August, the
Page 21 and 22: Strategic Report The Executive Comm
Page 23 and 24: Strategic Report OBJECTIVE 2014 PER
Page 25 and 26: Strategic Report Income statement S
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Page 29 and 30: Strategic Report SEGMENTAL PERFORMA
Page 31 and 32: Strategic Report OPERATIONAL AND ST
Page 33 and 34: Strategic Report CYBER & INTELLIGEN
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Page 39 and 40: Strategic Report PLATFORMS & SERVIC
Page 41 and 42: Strategic Report On the aircraft ca
Page 45 and 46: Strategic Report RESPONSIBLE BUSINE
Page 47 and 48: Strategic Report Our employees Our
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Page 51 and 52: Strategic Report BOARD Overall resp
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Governance AUDIT COMMITTEE REPORT N
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Governance We have since assessed t
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Governance expand its network of Et
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Governance REMUNERATION COMMITTEE R
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Governance ANNUAL REMUNERATION REPO
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Governance 2. Further detail on bon
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Governance Long-Term Incentive Plan
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Governance Pension entitlements TOT
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Governance Description of share pla
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Governance Share interests as at 31
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Governance Breakdown of scheme inte
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Governance PREFACE TO THE DIRECTORS
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Governance EXECUTIVE DIRECTORS’ P
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Governance EXECUTIVE DIRECTORS’ P
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Governance NON-EXECUTIVE DIRECTORS
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Governance Service contracts Execut
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Governance DIRECTORS’ REPORT Comp
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Governance The Company must have si
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Governance Statement of directors
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Governance The contracts requiring
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Financial statements FINANCIAL STAT
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Financial statements PREPARATION co
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Financial statements CONSOLIDATED S
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Financial statements CONSOLIDATED C
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Financial statements 1. SEGMENTAL A
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Financial statements 2. OPERATING C
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Financial statements 5. FINANCE COS
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Financial statements 6. TAXATION EX
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Financial statements 7. HELD FOR SA
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Financial statements 9. INTANGIBLE
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Financial statements 10. PROPERTY,
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Financial statements 10. PROPERTY,
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Financial statements 12. EQUITY ACC
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Financial statements 13. TRADE AND
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Financial statements 15. DEFERRED T
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Financial statements 16. INVENTORIE
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Financial statements 20. TRADE AND
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Financial statements 21. RETIREMENT
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Financial statements 23. SHARE CAPI
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Financial statements 24. CASH FLOW
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Financial statements 26. ACQUISITIO
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Financial statements 27. FAIR VALUE
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Financial statements 28. FINANCIAL
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Financial statements 29. SHARE-BASE
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Financial statements 31. CONTINGENT
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Financial statements COMPANY BALANC
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Financial statements 2. INVESTMENTS
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Financial statements 9. SHARE CAPIT
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Financial statements 11. RESERVES S
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