Audit Committee Overview

• . Audit Committee - Relationship With Internal Audit The Role of Internal Audit Internal Audit plays an integral role in the Company's risk management and assurance Framework and provides regular reports to the Audit Committee. Operates in alignment with IIA Code of Practice. The independent assurance that Internal Audit provides is a key element of the Company's governance framework. Taken with management operations and reporting, functional oversight and external audit assurance, Internal Audit provides a service that gives confidence to the Board and amongst the Company's stakeholders. Regular sessions held with the Audit Director without attendance from Senior Management. BAE SYSTEMS Links with the Audit / CR Committee . . Engagement with senior members of the Audit team outside normal regular meetings The annual Internal Audit programme is agreed jointly by the Audit and Corporate Responsibility committees to ensure that the overarching programme covers financial and operational risks and includes the assessment of ethical and reputational risk management and the Company's values. Increasing focus on Information management, IT and supply chain integrity Cyber risk assessment and monitoring Internal Audit Providing assurance - improving performance Copyright 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark. 14

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