devonport site visit summary presentation · 3/19/2013 · ship-lift large-scale docking...

www.babcockinternational.comMarine Land Aviation Nuclear

Devonport site visit – summary presentation13th March 2019


Disclaimer

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

or acquire, securities of the Company in any jurisdiction or an inducement to enter into investment activity. No part of this Presentation, nor the

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

other trend projections, as well as statements about Babcock’s or management’s beliefs or expectations, may constitute forward-looking

statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are

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.

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Marine: how we operate

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› 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:


Marine: how we do it

4

› Design, integrate and support technology

(both ours and OEMs’)

› Upgrade platforms & predict critical support

› Deliver savings and advance the definition

of availability

› 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


Marine: where we operate

5

Canada

UK

New

Zealand

South KoreaSpain

Bahrain

Oman

Australia

Clyde

Rosyth

Devonport

Bristol


Technology focused business

6

› 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)


Unique combination of technical expertise

and infrastructure

Ship-lift

Large-scale docking facilities

Astute Class jetty

Vanguard Class refit facility Frigate support centre

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Ow

ned

Ma

nag

ed


Solving complex problems for our customers

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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)


What we do at Devonport

9


Devonport: introduction

› 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

our customers

› 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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› Vanguard Class

› Dreadnought Class

› Trafalgar Class

› Astute Class

› Astute replacement

› Albion Class (LPD)

› T23 Class

› T26 Class

Devonport: longevity across programmes

2020 2030 2040 2050 2060 2070

In service

Decommission

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Devonport: strong track record

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

over the life of the Terms of Business

Agreement (ToBA) 2010-2025

across all sites

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Devonport: strategic support partner to MOD

› 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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Devonport: integrated with our customers

› 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


Devonport: integral to customer operations

› 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

www.babcockinternational.comMarine Land Aviation Nuclear16

Devonport Royal Dockyard and Naval BaseInnovations hub on site with a number

of ground-breaking technological

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

on Amphibious Assault Ships

New Engineering and Business

hub completed in 2018

New Type 26 frigates will be

base-ported at Devonport

STEM programme and

apprenticeship schemes


Data acquisitionSensor technology to

capture material state

data

Data distributionSensor bearer

infrastructure to

distribute sensor data

and allow aggregation,

exploiting hard wired

and Li-Fi network

infrastructure

On Board AnalyticsOn-Board analytics suite

to enable the maintainer

to observe & orient data

and derive information

to enable risk based

decisions

Data release controlThe maintainer remains

in control of on-board

data, providing a shore-

side link when additional

support is required

through existing bearers

Shore side analysisData 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

Connected PlatformInnovation Vision

iFrigateTM

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Mission Systems

› Weapons centre of excellence - navy gunnery &

weapons systems:

• 4.5” medium calibre gun / Phalanx close in

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

1818


› 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)

Surface ship facilities

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› 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

Submarine facilities

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Nuclear facilities

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› Low level refuelling facility

› Reactor access house (SSBN refit)

› Reactor access house (SSN defueling)

› Nuclear fuel transfer rail services


Summary

› 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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Appendix

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Devonport Royal Dockyard and Naval Base

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Historically MOD owned

16901 Dock constructed in South Yard

18535,6 &7 Docks constructed

1907 8,9,10 &11 Docks constructed

1974 Frigate Refit Complex constructed

1979Submarine Refit Complex constructed

1987GOCO – “SODA”

1997 Privatised, assets purchased

1997 – 20029 Dock upgrade

2002 WSMI contract

2002 – presentcontinued site and nuclear investment

2005 Partnering on FNF contract

2009WSMI extension

2010 Terms of Business Agreement

2013 Energy from Waste Plant (CHP)

2013Devonport 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


Marine Sector (FY18)

2

5

49%

19%

32%

Bid pipeline

UK 79% UK67%

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

1. Excludes gain share

2. Includes customer procurement related revenue

Addressable market

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devonport site visit summary presentation · 3/19/2013 · ship-lift large-scale docking...

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