BAE-annual-report-2014

Strategic Report
2014 AT
A GLANCE
IN 2014,
BAE SYSTEMS
DELIVERED
A SOLID
OVERALL
PERFORMANCE
Sales 1 were £16.6bn. The year-on-year reduction of
£1.5bn reflected £0.6bn of adverse exchange rate
translation, the expected volume reductions in Land
& Armaments and the previous year’s benefit from
the one-off price settlement for Salam Typhoon.
Underlying EBITA 2 was £1,702m. The year-on-year
position was broadly unchanged after allowing for
exchange rate translation and the one-off 2013
price settlement.
Margin performance delivered a return on sales
of 10.2%.
Underlying earnings 3 per share increased from 37.6p
to 38.0p after excluding the benefit from the price
escalation settlement in 2013.
£925m returned to shareholders in 2014, from
share repurchase programme and dividends.
Large order backlog 1,4 of £40.5bn.
SALES 1
£16,637M
£18,180m (2013)
ORDER BACKLOG 1,4
£40.5BN
£42.7bn (2013)
OPERATING BUSINESS CASH FLOW 6
£1,191M
£147m (2013)
KPI
KPI
UNDERLYING EBITA 2
£1,702M
£1,925m (2013)
OPERATING PROFIT
£1,300M
£806m (2013)
NET DEBT (AS DEFINED BY THE GROUP) 7
£(1,032)M
£(699)m (2013)
KPI References to Key Performance Indicators (KPIs) throughout the Annual Report
KPI
KPI
UNDERLYING EARNINGS 3 PER SHARE
38.0P
42.0p (2013)
BASIC EARNINGS PER SHARE 5
23.4P
5.2p (2013)
DIVIDEND PER SHARE
20.5P
20.1p (2013)
1. Including share of equity accounted investments.
2. Earnings before amortisation and impairment of intangible assets, finance costs and taxation expense (EBITA) excluding non-recurring items (see page 23).
3. Earnings excluding amortisation and impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, non-recurring items and, in 2014,
a credit in respect of the re-assessment of existing tax provisions (see note 8 to the Group accounts).
4. Comprises funded and unfunded unexecuted customer orders, and is stated after the elimination of intra-group orders.
5. Basic earnings per share in accordance with International Accounting Standard 33, Earnings per Share.
6. Net cash inflow from operating activities after capital expenditure (net), financial investment and dividends from equity accounted investments.
7. Comprises cash and cash equivalents, less loans and overdrafts (including debt-related derivative financial instruments) and cash received on customers’ account (see page 24).
KPI
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
BAE Systems
Annual Report 2014
01