Annual Report PDF - Black Sun Plc

Directors’ Report: Business ReviewBAE Systems’ business modelBAE Systems’ business model is driven by its strategy to deliver sustainable growth inshareholder value. It is underpinned by the Group’s commitment to Total Performance.A strong portfolio ofproducts, servicesand capabilities…SALES 1 BY MARKET SEGMENT (%)PlatformsReadiness &SustainmentBAE Systems has three marketsegments designed to meet theevolving needs of its customers inboth its home and export markets.39%42%48%ServicesElectronic Systems13%6%Cyber & IntelligenceSERVICESIn Readiness & Sustainment, the Groupprovides total support for missionsuccess, ranging from preparation andtraining programmes that are designed toensure military personnel and equipmentare ready for deployment (Readiness),through to maintenance andenhancement services (Sustainment).In Cyber & Intelligence, the Group helpsgovernment and commercial clients tocollect information to reveal intelligence,maintain security, manage risk andstrengthen resilience, and also providesmission-critical cyber security solutions,information technology, intelligence andanalytical tools, and support solutionsto the intelligence, defence and civiliancommunities.Contracts can be multi-year, therebyproviding the Group with strong incumbentpositions and intimacy with customers.BAE Systems has a track record ofdelivering both enhanced capability andcost savings, and this is an area of potentialgrowth for the Group as customers’ budgetsremain under pressure.ELECTRONIC SYSTEMSThe Group designs, develops,manufactures and integrates a diverseportfolio of mission-critical electronicsystems.The Group’s capabilities help meet itscustomers’ requirements in the areasof electronic warfare, signal processingand battlespace management.The Group’s wide range of productsinclude situational awareness andsurvivability systems, intelligence,surveillance and reconnaissancesystems, secure networkedcommunications and navigationsystems, precision targeting andnight vision systems.This high technology business isunderpinned by the investment of asignificant proportion of the Group’sresearch and development spend.PLATFORMSThe Group designs, develops,manufactures and integrates a broadrange of defence systems and equipment.In air, the Group provides advancedmilitary air capability through deliveringcombat aircraft and jet trainers, and isaddressing the emerging global marketfor autonomous systems and relatedtechnologies.In land, the Group provides armouredcombat vehicles, tactical wheeledvehicles, missile launchers, artillerysystems and munitions.In maritime, the Group provides aboveand under water battlespace capabilitythrough the delivery of surface ships andnuclear powered submarines.…and underpinned bya culture of TotalPerformance.BAE Systems is committed todeveloping a culture of TotalPerformance, which encompassesCustomer Focus, ProgrammeExecution, Financial Performance andResponsible Behaviour, and provides aplatform to deliver sustainable growthin shareholder value and enhancethe Group’s reputation. The Group’ssuccess is measured by the Board witha range of financial and non-financialKey Performance Indicators (KPIs).FOCUSThe Group’s priority to all its customersis to understand their needs andexpectations, and deliver on itscommitments throughout the life of theproducts and services it has delivered.Customer Focus is measured throughschedule adherence metrics relatingto milestone performance across theGroup’s major contracts, and customersatisfaction.p16For more information on the Group’s KPIsCUSTOMER4 www.baesystems.com