Audit Committee Overview

BAE SYSTEMS Balance of Incentives Annual Incentive Financial based on PLC targets and also include relevant sector targets for Executive Committee members Non financial includes the underpinning elements of Diversity and Inclusion and Safety 3 strategic metrics: - Advancing technology LTI - Improve operational effectiveness - Improve efficiency and competitiveness Financial Non Financial Earnings Growth Cash TSR ■Strategic Copyright 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark. 25

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