Income statement for the year ended 31 December

2023 £m 2022 £m 2021 Re-presented1 £m 2020 £m 2019 £m
Continuing operations




Sales2




Electronic Systems 5,458 5,057 4,491 4,557 4,439
Platforms & Services 3,922 3,688 3,395 3,503 3,337
Air 8,058 7,698 7,449 7,910 7,457
Maritime 5,536 4,598 4,169 3,257 3,116
Cyber & Intelligence 2,321 2,205 1,923 1,812 1,732
HQ 471 420 281 190 387
Intra-group sales (482) (410) (398) (367) (359)

25,284 23,256 21,310 20,862 20,109
Underlying EBIT3




Electronic Systems 878 838 766 674 n/a
Platforms & Services 354 326 259 190 n/a
Air 949 849 772 909 n/a
Maritime 425 356 351 279 n/a
Cyber & Intelligence 199 232 179 135 n/a
HQ (123) (122) (122) (150) n/a

2,682 2,479 2,205 2,037 -
Underlying EBITA4




Electronic Systems n/a n/a n/a n/a 687
Platforms & Services n/a n/a n/a n/a 267
Air n/a n/a n/a n/a 887
Maritime n/a n/a n/a n/a 268
Cyber & Intelligence n/a n/a n/a n/a 91
HQ n/a n/a n/a n/a (83)


- - 2,117 1,928
Adjusting Items5




Profit/(loss) on business transactions - 94 158 (5) 9
Profit on sale of investment property - - 182 - -
Settlement gain on transfer of US pension liabilities - - - 64 -
Impairment - inventory write down re business exited in 2018 - - - (13) -
Derecognition of intangible assets - - - - (36)
Guaranteed Minimum Pension equalisation charge - - - (7) -
Gain related to past services on the pension schemes - 13 - - - -
Acquisition-related (costs)/income (20) (16) 10 (20) -
EBIT3 2,722 2,570 2,555 2,065 n/a
EBITA4 n/a n/a n/a n/a 2,090
Amortisation of programme, customer-related and other intangible assets, and impairment of intangibles3 (116) (111) (101) (46) n/a
Amortisation and impairment of intangible assets4 n/a n/a n/a n/a (115)
Financial and taxation expense of equity accounted investments (33) (75) (65) (80) (76)
Operating profit 2,573 2,384 2,389 1,930 1,899
Net finance costs (247) (395) (279) (334) (273)
Profit before taxation 2,326 1,989 2,110 1,596 1,626
Taxation expense (386) (315) (198) (225) (94)
Profit for the year 1,940 1,674 1,912 1,371 1,532






Balance sheet as at 31 December7





2023
£m
2022
£m
2021
£m
2020
£m
2019
£m
Intangible assets 12,099 12,644 11,716 11,745 10,371
Property, plant and equipment, right-of-use assets and investment property6 5,003 4,723 4,010 3,836 3,712
Equity accounted investments and other investments 916 886 630 409 441
Working capital6,7 (5,468) (4,119) (3,740) (3,699) (3,378)
Lease liabilities (1,396) (1,582) (1,252) (1203) (1,291)
Net other financial assets and liabilities (112) (138) (1) 36 34
Group's share of the post-employment benefits surplus /(deficit) 229 646 (2,124) (4,485) (4,455)
Net tax assets and liabilities 474 363 589 906 690
Net debt (1,022) (2,023) (2,160) (2,718) (743)
Net assets held for sale - - - 94 130
Net Assets 10,723 11,400 7,668 4,921 5,511
Non-controlling interests (164) (185) (232) (278) (104)
Total equity attributable to equity holders of BAE Systems plc 10,559 11,215 7,436 4,643 5,407






Movement in net debt for the year ended 31 December





2023
£m
2022
£m
2021
£m
2020
£m
2019
£m
Net cash flow from operating activities 3,760 2,839 2,447 1,166 1,597
Deduct: Net capital expenditure8 (789) (519) (209) (392) (454)
Deduct: Principal element of lease payment and receipts (282) (227) (207) (226) (230)
Add back: Dividends received from equity accounted investments 134 94 57 27 142
Add back: Taxation 395 365 234 251 252
Operating business cash flow 3,218 2,552 2,322 826 1,307
Deduct: Taxation paid (395) (365) (234) (251) (252)
Deduct: Net interest paid (230) (237) (224) (208) (205)
Free Cash Flow9 2,593 1,950 1,864 367 850
Acquisitions and disposals (22) (38) 213 (1,674) 74
Dividends paid (including non-controlling interests) (945) (968) (979) (765) (780)
Purchase of own shares (561) (788) (368) - -
Other movements (including foreign exchange)10 (64) (19) (172) 97 17
Net decrease/(increase) in net debt 1,001 137 558 (1,975) 161
Opening net debt (2,023) (2,160) (2,718) (743) (904)

Closing net debt

 

(1,022) (2,023) (2,160) (2,718) (743)
Other information




           

2023
2022
2021
2020
2019
Continuing operations
Basic earnings per share - total (pence) 61.3 51.1 55.2 40.7 46.4
Basic earnings per share - underlying11 (pence) excluding one-off tax benefit (derived from EBIT) 63.2 55.5 47.8 44.3 n/a
Basic earnings per share - underlying12 (pence) excluding one-off tax benefit (derived from EBITA) n/a n/a n/a n/a 45.8
Basic earnings per share - underlying11 (pence) including one-off tax benefit (derived from EBIT) 63.2 55.5 50.7 44.3 n/a
Basic earnings per share - underlying12(pence) including one-off tax benefit (derived from EBITA) n/a n/a n/a n/a 50.8
Order backlog13 including the Group's share of equity accounted investments (£bn) 69.8 58.9 44.0 45.2 45.4
Dividend per ordinary share (pence)14 30 27.0 25.1 23.7 23.2
Number of employees, excluding share of employees of equity accounted investments, at year end 92,000 84,000 82,000 81,000 79,000
Capital expenditure including leased assets15(£m) 516 780 697 715 715

  1. With effect from 2022, the Group established a new Digital Intelligence business, bringing together our non-US digital and data capabilities to further strengthen how we deliver these services and capabilities for our customers. The new Digital Intelligence business is reported within the Cyber & Intelligence segment. In addition, our BAE Systems Australia business transitioned from the Air segment to the Maritime segment. Comparative segmental financial information for 2021 has been re-presented to reflect the new business structure. The information presented for 2019 to 2020 reflects the structure prior to the re-organisation.
  2. Revenue plus the Group's share of revenue of equity accounted investments, excluding subsidiaries' revenue from equity accounted investments.
  3. Operating profit excluding amortisation of programme, customer-related and other intangible assets, impairment of intangible assets, finance costs and taxation expense of equity accounted investments (EBIT) and adjusting items.
    Underlying EBIT has been used as a profitability measure from 2020.
  4. Operating profit excluding amortisation and impairment of intangible assets, finance costs and taxation expense of equity accounted investments (EBITA) and adjusting items.
    Underlying EBITA has been used as a profitability measure for 2019 numbers.
  5. Adjusting items are items of financial performance which have been determined by management as being material by their size or incidence and not relevant to an understanding of the Group's underlying business performance and includes; profit or loss on business transactions, the impact of substantively enacted tax rate changes, and costs incurred which are one-off in nature - for example non-routine costs or income relating to post-retirement benefit schemes.
  6. Funding received from the UK Government for property, plant and equipment at Barrow-in-Furness, UK, was previously reported against the associated assets in property, plant and equipment, right-of-use assets and investment property. From 2022, costs reimbursed from the UK Government for these works has been presented as working capital. The prior years have been re-presented to reflect this change.
  7. Inventories, plus trade, other & contract receivables and contract liabilities, trade & other payables, and provisions. 2019-2021 comparatives have been re-presented together as working capital to align with presentation in the 2023 Annual Report.
  8. Includes net expenditure on property, plant and equipment (net of proceeds from funding of assets), investment property, intangible assets, and other investments, and equity accounted investment funding.
  9. Free cash flow provides a measure of cash generated by the Group's operations after servicing debt and tax obligations, available for use in line with the Group's capital allocation policy.
  10. Includes cash flows from matured derivative financial instruments, foreign exchange, cash collateral and other non-cash movements.
  11. Basic earnings per share excluding amortisation of programme, customer-related and other intangible assets, impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items (EBITBasic earnings per share excluding post-tax impact of amortisation of programme, customer-related and other intangible assets, impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items attributable to shareholders.
  12. Basic earnings per share excluding amortisation and impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items (EBITA).
    Underlying EBITA has been used as a profitability measure for the 2019 numbers.
  13. Funded and unfunded unexecuted customer orders including the Group's share of order backlog of equity accounted investments. Unfunded orders include the elements of US multi-year contracts for which funding has not been authorised by the customer.
  14. An interim dividend of 13.8p per share was paid in 2020, in respect of the year ended 31 December 2019, having been proposed as a 2019 final dividend but deferred in light of the pandemic.
  15. Cash expenditure on the purchase of; property, plant and equipment, investment property, other investments, intangible assets, and equity accounted investment funding plus the principal element of finance lease payments net of funding received from the UK Government relating to property, plant and equipment in Barrow-in-Furness, UK.

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