BAE-annual-report-2014
BAE-annual-report-2014
BAE-annual-report-2014
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Strategic Report<br />
PLATFORMS & SERVICES<br />
(INTERNATIONAL)<br />
Platforms & Services<br />
(International) comprises<br />
the Group’s businesses<br />
in Saudi Arabia, Australia<br />
and Oman, together with<br />
its 37.5% interest in the<br />
pan-European MBDA<br />
joint venture.<br />
In Saudi Arabia, the business provides<br />
operational capability support to the country’s<br />
air and naval forces on UK/Saudi<br />
government-to-government contracts. Contracts<br />
include multi-year agreements, such as the<br />
Saudi British Defence Co-operation Programme<br />
and Salam Typhoon programme.<br />
In Australia, the business delivers production,<br />
upgrade and support programmes for<br />
customers in the defence and commercial<br />
sectors across the air, naval and land domains.<br />
Services contracts include the provision of<br />
sustainment, training solutions and upgrades.<br />
Platforms contracts include naval ships, such as<br />
the Landing Helicopter Dock programme for the<br />
Australian Navy. Contracts are often multi-year<br />
and fixed price.<br />
In Oman, the business is developing its position<br />
building on a long history of relationships with<br />
the Omani armed forces, through the provision,<br />
support and upgrade of defence platforms and<br />
cyber security services. Resulting orders are<br />
placed with the relevant <strong>report</strong>ing segments.<br />
MBDA is a leading global prime contractor of<br />
missiles and missile systems across the air,<br />
naval and land domains.<br />
SALES 1 BY LINE OF BUSINESS (%) SALES 1 BY DOMAIN (%)<br />
A Saudi Arabia 61<br />
A<br />
B Australia 19<br />
A<br />
C<br />
C MBDA 20<br />
C<br />
A Air 70<br />
B Naval 19<br />
C Land 11<br />
SALAM TYPHOON AIRCRAFT<br />
Through the build-up of the Typhoon aircraft<br />
fleet and the continued development of the<br />
in-country industrial base, the Group remains<br />
committed to developing a greater indigenous<br />
capability in Saudi Arabia. On the Salam<br />
Typhoon programme, UK final assembly of the<br />
72 aircraft continues. At 31 December <strong>2014</strong>,<br />
45 aircraft have been delivered to the customer.<br />
B<br />
SALES 1 ANALYSIS: PLATFORMS AND SERVICES<br />
30% 70%<br />
Platforms<br />
Services<br />
B<br />
1. Including share of equity accounted investments.<br />
40<br />
<strong>BAE</strong> Systems<br />
Annual Report <strong>2014</strong>