1. BAE Systems 2011 Preliminary Results 16 February 2012 1 © BAE Systems 2012

2. Ian King 2 © BAE Systems 2012

3. Strategy and business environment Near term focus on delivering bottom line performance Strategy to sustain and provide platform for growth  Improve profit and cash generation  Grow Cyber, Intelligence and Security  Grow Electronic Systems  Drive value from Platforms and Services positions  Increase International business US  Budget passed following Continuing Resolution  January announcements align with planning assumptions UK  SDSR impacts clear  Mitigating actions well underway 3 © BAE Systems 2012

4. Strategy and business environment Near term focus on delivering bottom line performance Strategy to sustain and provide platform for growth  Improve profit and cash generation  Grow Cyber, Intelligence and Security  Grow Electronic Systems  Drive value from Platforms and Services positions  Increase International business US  Budget passed following Continuing Resolution  January announcements align with planning assumptions UK  SDSR impacts clear  Mitigating actions well underway 4 © BAE Systems 2012

5. Strategy and business environment Near term focus on delivering bottom line performance Strategy to sustain and provide platform for growth  Improve profit and cash generation  Grow Cyber, Intelligence and Security  Grow Electronic Systems  Drive value from Platforms and Services positions  Increase International business US  Budget passed following Continuing Resolution  January announcements align with planning assumptions UK  SDSR impacts clear  Mitigating actions well underway 5 © BAE Systems 2012

6. International Markets India –Continued Hawk order intake –MMRCA – Typhoon bid –Land opportunities progressing Brazil OPV –New business –Opportunity to expand Brazilian Navy business relationship Australia –Good positions across defence domains Oman –Typhoon RFP released KSA –Budgets approved –Increasing business opportunities 6 © BAE Systems 2012

7. Summary Strong performance in challenging environment –Cost reduction and efficiency improvement –Good programme execution –Broad international footprint –Strong positions in priority capabilities Resilient platform for future growth Unambiguous focus on shareholder value 7 © BAE Systems 2012

8. Peter Lynas 8 © BAE Systems 2012

9. Financial Highlights (1) Continuing operations (2) Earnings before amortisation and impairment of intangible assets, finance costs and taxation expense (EBITA) and non-recurring items (3) Earnings excluding amortisation and impairment of intangible assets, non-cash finance movements and non-recurring items 9 © BAE Systems 2012

10. Summary Income Statement (continuing operations) 10 © BAE Systems 2012 * 2011 underlying finance costs exclude charges relating to the early redemption of debt (£13m)

11. Balance Sheet 11 © BAE Systems 2012

12. Pension Deficit (IAS 19) * includes assets held in Reservoir Trust 12 © BAE Systems 2012

13. Funding Deficit £2.9bn £3.0bn £1.9bn Funding deficit increased by £1.1bn Revised deficit recovery plans agreed Deficit recovery periods sustained Incremental funding of £0.2bn over next 5 years Next funding valuation date April 2014 13 © BAE Systems 2012

14. Operating Cash Flow 14 © BAE Systems 2012

15. Movement in Net Debt 15 © BAE Systems 2012

16. Capital Allocation £2.2bn returned to shareholders over 2 years 16 © BAE Systems 2012

17. Electronic Systems Defence 86% 2011 SALES Commercial 14% 17 © BAE Systems 2012

18. Cyber & Intelligence 2011 SALES US $1,779m Detica $465m 18 © BAE Systems 2012

19. Platforms & Services (US) 2011 SALES Support Solutions Land & Armaments Platforms 32% Military & Technical Services 68% 19 © BAE Systems 2012

20. Platforms & Services (US) Land & Armaments Support Solutions 20 © BAE Systems 2012

21. Platforms & Services (UK) 2011 SALES Maritime Air Platforms 68% Military & Technical Services 32% 21 © BAE Systems 2012

22. Platforms & Services (International) 2011 SALES KSA Australia Platforms 35% Military & Technical Services 65% MBDA, India 22 © BAE Systems 2012

23. Underlying Earnings Per Share 23 © BAE Systems 2012 39.7 45.6 * UK R&D tax benefit pence

24. 2012 Guidance * excluding R&D tax benefit 24 © BAE Systems 2012

25. 2012 Guidance * excluding R&D tax benefit 25 © BAE Systems 2012

26. Summary Strong performance in challenging environment –Cost reduction and efficiency improvement –Good programme execution –Broad international footprint –Strong positions in priority capabilities Resilient platform for future growth Unambiguous focus on shareholder value 26 © BAE Systems 2012

27. BAE Systems 2011 Preliminary Results 16 February 2012 27 © BAE Systems 2012

28. Handouts 28 © BAE Systems 2012

29. Financial Summary 29 © BAE Systems 2012

30. Like-for-Like Sales & Underlying EBITA - Group 30 © BAE Systems 2012

31. Like-for-Like Sales & Underlying EBITA by sector 31 © BAE Systems 2012

32. Like-for-Like Sales & Underlying EBITA by sector 32 © BAE Systems 2012

33. Reconciliation of Earnings 33 © BAE Systems 2012

34. Working Capital Movements Reconciliation to Cash Flow * includes cash held for Tanzanian charitable donation and cash on customer account 34 © BAE Systems 2012