Harry Breach's questions to BAE SYSTEMS PLC /FI/ (BAESY) leadership • H1 2022
Question
Harry Breach of Stifel asked for clarification on the accounting of MBDA's free cash flow. He also inquired about the potential for broader cooperation with Japan beyond the Tempest program and sought more detail on the company's strategic thinking for acquisitions in the space sector.
Answer
CFO Bradley Greve explained that BAE proportionately consolidates its 37.5% share of MBDA's free cash flow. CEO Charles Woodburn noted that as Japan increases defense spending, there are broader opportunities in maritime, electronics, and combat vehicles. On space, he stated that BAE has an active M&A pipeline and is not ruling out any specific areas, seeing a major opportunity in LEO satellites for sovereign capabilities.