BAE SYSTEMS PLC AGM Statement (5773N)

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RNS Number : 5773N

BAE SYSTEMS PLC

10 May 2018

BAE Systems plc - 2018 Annual General Meeting

10 May 2018

BAE Systems plc will hold its Annual General Meeting today at 11.00 a.m. in Farnborough, Hampshire, UK. At the meeting, Chairman, Sir Roger Carr, and Chief Executive, Charles Woodburn, will comment on the performance of the Group in 2017, as detailed in the results announcement published on 22 February 2018, and outline the continued progress in the Group in the year to date.

Charles Woodburn, Chief Executive, will say: "We have a large order backlog and strong franchises with good prospects to further these positions in the coming months. The new organisation structure is now established to drive our strategic priorities to deliver both in year targets and to provide a solid foundation for medium term growth."

The Group's outlook remains unchanged with 2018 underlying earnings per share expected to be in line with 2017.*

The results of voting at the Annual General Meeting will be announced later today.

* Compared with the Group's actual performance for 2017 as re-presented to reflect the impact of the adoption of IFRS 15 from 43.5p to 42.1p and assuming an average US$1.40 to sterling translation rate in 2018.

Key points in 2018 to date

In the UK, where our business is centred around our long-term contracted positions in Air and Maritime, Defence and Security remains a priority for the UK government and the Group expects this to be re-affirmed in the Modernising Defence Programme. The Group's contracted positions in Maritime are being furthered by additional awards on the UK submarine programmes.

In the US, the fiscal year 2018 budget and the President's proposal for 2019 maintain the positive momentum in funding for military readiness and modernisation. The Group's US portfolio remains well aligned with customer priorities and growth areas, providing greater near-term certainty and support to our medium term planning assumptions. Production is ramping up on a number of long-term programmes in Electronic Systems, combat vehicles and weapons systems and ship repair volumes are on plan to exceed 2017.

In March, the UK Government signed a Memorandum of Intent with the Kingdom of Saudi Arabia to aim to finalise discussions for the purchase of 48 Typhoon aircraft. Negotiations relating to the principal terms of the agreement are progressing.

In June, we expect the final down-selection decision on US Amphibious Combat Vehicle to be announced. We are one of two competitors for this programme.

Discussions to finalise the financing conditions within the contract signed with Qatar on 10 December 2017 are progressing.

In Australia we have secured the 10 year Jindalee Operational Radar Network upgrade programme contract; were not down selected for Land 400 Phase 2 Combat Reconnaissance Vehicle programme; and expect a decision by half year on the preferred tenderer for the Commonwealth's nine-ship SEA 5000 Future Frigate programme.

Investor event

The Group will hold an Investor event in the US on the 14(th) and 15(th) May focused on its US Electronic Systems business.

Half-year results

BAE Systems will announce its financial results for the half year ending 30 June 2018 on 1 August 2018.

The Board and directors

Revathi Advaithi was appointed to the Board as a non-executive director on 1 January 2018.

Cautionary statement

All statements other than statements of historical fact included in this statement are forward-looking statements. Such forward-looking statements, which reflect management's assumptions made on the basis of information available to it at this time, involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of BAE Systems or the markets and economies in which BAE Systems operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BAE Systems plc and its directors accept no liability to third parties in respect of this statement, save as would arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.

Issued by:

BAE Systems plc

London

This information is provided by RNS

The company news service from the London Stock Exchange

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May 10, 2018 02:00 ET (06:00 GMT)