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Marine Land Aviation Nuclear
Devonport site visit – summary presentation
13th March 2019
Devonport site visit summary presentation 13 th March 2019 Marine - - PowerPoint PPT Presentation
Devonport site visit summary presentation 13 th March 2019 Marine Land Aviation Nuclear www.babcockinternational.com Disclaimer This document has been prepared by Babcock International Group PLC (the Company) solely for use at a
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Marine Land Aviation Nuclear
13th March 2019
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Marine Land Aviation Nuclear
This document has been prepared by Babcock International Group PLC (the “Company”) solely for use at a presentation in connection with the Company's analyst and investor site visit on 13 March 2019. For the purposes of this notice, the presentation that follows (the “Presentation”) shall mean and include the slides that follow, the oral presentation of the slides by the Company, hard copies of this document and any materials distributed at, or in connection with, that presentation. The Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue, or the solicitation of an offer to buy
fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Statements in this Presentation, including those regarding the possible or assumed future or other performance of the Company or its industry or
beyond Babcock’s control. These risks, uncertainties and factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. Forward looking statements in the Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. They speak only as at the date of this Presentation and the Company undertakes no obligation to update these forward-looking statements. The information and opinions contained in this Presentation do not purport to be comprehensive, are provided as at the date of the Presentation and are subject to change without notice. The Company is not under any obligation to update or keep current the information contained herein. 2
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Marine Land Aviation Nuclear
3 › All UK submarine refits and life-extension › 75% surface ship refits › Submarine and ship fleet time support › Design, build, assembly and support of QEC › Future class support and systems upgrades › 100% Canadian submarine refits › Australian ship and submarine support › Weapons technology to South Korea, Spain › US-UK submarine missile tube programme › New Zealand and Oman dockyards › Owned intellectual property in complex energy, marine and defence systems › Through-life support of complex assets › Platform integrator of OEM technology › Design and use of support technology
UK Naval International Naval Technology
Surface ships Equipment Submarines Training Surface ships Equipment Submarines Training Engineering consultancy Equipment Energy and Marine Systems
Advanced technology Technical expertise Unique infrastructure All supported by:
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› Design, integrate and support technology (both ours and OEMs’) › Upgrade platforms & predict critical support › Deliver savings and advance the definition
› Long heritage of innovative engineering knowledge and applied technology › Deliver critical programmes for complex assets in highly regulated environments › Owned and managed unique infrastructure › UK and International infrastructure › Supports naval and commercial marine programmes
Advanced technology Technical expertise Unique infrastructure
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Marine Land Aviation Nuclear
5 Canada UK New Zealand South Korea Spain Bahrain Oman Australia
Clyde Rosyth Devonport Bristol
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› Owned intellectual property – complex systems / equipment design and development – ecoSMRT, weapons handling and launch systems (WHLS) › Through-life support of complex equipment – Weapons and C4ISR › Design, engineering and management services – platform integrator of OEM technology › Use of innovative support technologies – enabling digital asset management (iSupport)
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Marine Land Aviation Nuclear
Ship-lift Large-scale docking facilities Astute Class jetty Vanguard Class refit facility Frigate support centre 7
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Upgrade legacy platforms and systems Upgrade critical and complex national infrastructure Deliver critical and highly complex programmes Reduce through life support costs Enhance platform and system availability (at lower cost)
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Marine Land Aviation Nuclear
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Marine Land Aviation Nuclear
› Largest naval dockyard in Europe › Dockyard owned by Babcock (Naval Base operated by Babcock) › UK centre of excellence for deep maintenance of Royal Navy complex platforms › Provide critical marine and nuclear engineering services, integral to our customers’ operations › Strategic support partner to the UK Ministry of Defence (MOD) › Involvement in a range of complex naval programmes › Strong track record of delivery › Mainly operate long term, incentive-based contracts that are structured to deliver both performance and cost benefits to
› Employ around 5,500 people at Devonport and its satellite sites – 257 of these are graduates, 335 apprentices and around 3,600 are in an engineering role › The site has served the Royal Navy for over 300 years and will continue to for decades to come
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Marine Land Aviation Nuclear
› Vanguard Class › Dreadnought Class › Trafalgar Class › Astute Class › Astute replacement › Albion Class (LPD) › T23 Class › T26 Class
2020 2030 2040 2050 2060 2070
In service Decommission
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Marine Land Aviation Nuclear
Over the last ten years we’ve delivered: Warship refit programmes › 17 x Type 23 Frigates › 4 x Landing Platform Dock Submarine refit programmes › 3 x Vanguard Class Submarine - Long Overhaul Periods (Refuel) › 6 x Trafalgar Class Revalidation and Assistance Maintenance Periods (RAMPs) › On track to deliver c.£1bn savings
Agreement (ToBA) 2010-2025 across all sites
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Marine Land Aviation Nuclear
› Integral to key UK programmes › Continuous At Sea Deterrent › Frigate and anti-submarine warfare deployment › Amphibious assault capability › Key contracts › MSDF - TOBA › Vanguard Class refit and refuel › T23 life-extension › Amphibious support › Weapons support contracts
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Marine Land Aviation Nuclear
› Babcock own and operate the Royal Dockyard and nuclear license site › Babcock operate the Naval Base › Completely intertwined with MOD, Royal Naval and Royal Marines site operations and planning › Unique infrastructure and expertise, not replicated anywhere
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HMS Defiance (MOD) HMS Drake (MOD) Waterfront Wharf's (MOD) RM base (MOD) Devonport Royal Dockyard
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Marine Land Aviation Nuclear
› Centre of excellence for: › Anti submarine warfare surface fleet (ASW) › All submarine deep maintenance work › Amphibious assets › Weapons support › Base port for: › Albion Class (LPD) › T23 ASW frigate fleet › Future T26 fleet › Trafalgar Class SSN fleet › The forefront of our intelligent support technology
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HMS Defiance (MOD) HMS Drake (MOD) Waterfront Wharf's (MOD) RM base (MOD) Devonport Royal Dockyard
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Innovations hub on site with a number
projects in progress Currently working on five streams of Type 23 frigates Ongoing investment in infrastructure across the site Only site with the ability to refuel and defuel nuclear submarines Dispatching specialist teams around the globe to support our customer Successful refit programmes
New Engineering and Business hub completed in 2018 New Type 26 frigates will be base-ported at Devonport STEM programme and apprenticeship schemes
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Marine Land Aviation Nuclear
Data acquisition
Sensor technology to capture material state data
Data distribution
Sensor bearer infrastructure to distribute sensor data and allow aggregation, exploiting hard wired and Li-Fi network infrastructure
On Board Analytics
On-Board analytics suite to enable the maintainer to observe & orient data and derive information to enable risk based decisions
Data release control
The maintainer remains in control of on-board data, providing a shore- side link when additional support is required through existing bearers
Shore side analysis
Data analysis shore side to enable forward deployed support to be provided and to optimise the next support period and de-risk Class support to the end of life
Innovation Vision
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Marine Land Aviation Nuclear
› Weapons centre of excellence - navy gunnery & weapons systems:
weapons system / harpoon launch control equipment / Tomahawk land attack missile (TLAM) › Delivering all strategic RF communications and infrastructure for the MOD and customers worldwide › Delivering complex communications systems for land and sea › Supporting counter-UAV and air defence systems including future UK ground based air defence › Asset management and through-life support of complex equipment for the royal navy fleet including pumps, motors and switchgear
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Marine Land Aviation Nuclear
› Frigate Support Centre (refits) › Non-tidal frigate basin (pre/post refit) › Waterfront wharfs (fleet time) › Landing craft basin and facility (refits) › Large vessels docks (refits) › Asset docks (maintenance) › Non-tidal ship and submarine basin (pre/post refit) › Large vessel wharfs (supply and provisions)
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Marine Land Aviation Nuclear
› Submarine and ship basin (non-tidal pre & post refit/power testing) › Seismically qualified dock (SSBN) › Nuclear defueling dock (SSN) › Fleet time support and maintenance dock › Decommissioning/dismantling dock › Maintenance berths › Non-tidal submarine disposal basin
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› Low level refuelling facility › Reactor access house (SSBN refit) › Reactor access house (SSN defueling) › Nuclear fuel transfer rail services
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Marine Land Aviation Nuclear
› Leader in naval engineering and support, supported by:
› Advanced technology › Technical expertise › Unique infrastructure
› Proven operating model based on unique combination of technical expertise and infrastructure › Technology focused business › Devonport
› Longevity across programmes › Strategic support partner to MOD › Strong track record of delivery › Integrated with our customers › Integral to customers’ operations
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Historically MOD owned 1690 1 Dock constructed in South Yard 1853 5,6 &7 Docks constructed 1907 8,9,10 &11 Docks constructed 1974 Frigate Refit Complex constructed 1979 Submarine Refit Complex constructed 1987 GOCO – “SODA” 1997 Privatised, assets purchased 1997 – 2002 9 Dock upgrade 2002 WSMI contract 2002 – present continued site and nuclear investment 2005 Partnering on FNF contract 2009 WSMI extension 2010 Terms of Business Agreement 2013 Energy from Waste Plant (CHP) 2013 Devonport landing craft collocation 2014 14 Dock RAH build and SRC upgrade 2014 MOD opened Royal Marines facility 2015 South Yard regeneration commenced (Council/ MOD) 2016 New Engineering & Business Centre build
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Marine Land Aviation Nuclear
2 5 49% 19% 32%
Bid pipeline
UK 79% UK 67% Intl 21% Intl 33%
Revenue Pipeline
Geography
58% 14% 28%
Revenue split
£12bn
UK Naval International Naval Technology2 7%-11% 8%-12% 6%-15%
Typical margin range1
Addressable market
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