Edward Stacey's questions to BAE SYSTEMS PLC /FI/ (BAESY) leadership • H1 2015
Question
Edward Stacey of Espirito Santo Investment Bank questioned the potential outcomes for BAE's stake in the MBDA joint venture and sought clarity on how the large Successor submarine program would be funded within the UK's baseline procurement budget without squeezing other areas.
Answer
CEO Ian King stated unequivocally that MBDA is a core, strategic part of BAE's portfolio and that preemption rights prevent the company from becoming a minority partner. Regarding the Successor program, he clarified that its funding has always been factored into the UK's long-term budget assumptions and is not a new pressure on the defense budget.