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Copyright © 2016 Boeing. All rights reserved.
May 2016 Investor Conference
Ray ConnerVice Chairman, The Boeing CompanyPresident and CEO, Boeing Commercial Airplanes
May 11, 2016
Boeing Commercial Airplanes
1
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Airline industry trends remain healthy… growing market environment
Airline Business Environment
2
Global economic growth rate below average
Passenger market resilient, growing
Cargo market slowly recovering, challenging
Load factors and utilization at historic highs
Volatile fuel prices, strong U.S. dollar
Adequate financing and liquidity
Airline financials healthy, growing profitability0
1000
2000
3000
4000
5000
6000
7000
2001 2003 2005 2007 2009 2011 2013 2015
Backlog Net Deferrals/Accelerations Debookings/Cancelations(Total change as a % of backlog)
3% 9% 1%6%30% 1% 4% 1%
0%
1%
2%
3%
4%
5%
6%
7%
Jan-14 Jun-14 Dec-14 Apr-15 Oct-15
Available Seat Kilometers (capacity)
Revenue Passenger Kilometers (traffic)
7%
6%
5%
4%
3%
2%
1%
0%
Jan-14 Jun-14 Dec-14 Apr-15 Oct-15
Units
Sources: IATA Carrier Tracker (industry international scheduled freight) and A4A US domestic cargo traffic
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Growth
Growth
Replacement
Replacement
2000 20152000 2015
Unprecedented backlog provides solid foundation for long-term growth
Backlog Growth & Stability
3
Commercial Aircraft
Growth & Replacement
BCA
BacklogBCA
Geographic Mix
~5,800
Americas
Americas
Europe
Europe
Asia
Asia
Other
Middle East
Other
2000 2015
more orders… more balanced… more diverse…
~1,600
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Expand market share while growing profitably
4
BCA Strategy
Differentiated products and services
Aligned and disciplined airplane development
Lean and responsive production system
Expand market position
Enable and integrate services growth
1Q16 Commercial
Airplanes Backlog5,740 Units
Wide-Body
$2.7T Services
$2.8T
Narrow-Body
$2.9T
20-Year Current
Market Outlook2015-2034
$8.4TNarrow-
Body
45%
Wide-
Body
55%
$424B
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Most comprehensive product lineup in the industry
5
Pro
du
ct L
ine
up
Boeing Airbus
*single class *single class
787-9
747-8
787-8
787-10
737 MAX 8
737 MAX 7
737 MAX 9
777-8
777-9
777-300ER
737 MAX 200*
A350-1000
A321neo/LR
A320neo
A319neo
A330-200/-800neo
A350-900
A380
A330-300/-900neo
A320neo* high density
500
450
400
350
300
250
200
150
550
2-class seating
600
100
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
737 family has captured 50% market share since 737 MAX launch
737 vs. A320 Family Orders Since 2011
6
Orders since 737 MAX launch in December 2011. Data as of March 31, 2016.
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
0
100
200
300
400
500
600
700
800
900
1,000
2010 2011 2012 2013 2014 2015 2016 2020
BCA Production
7
Conservatively increasing production rates
17 rate increases5 planned key rate increases
777 transition
Guidance
Deli
veri
es
762
>900
648
477
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Development programs meeting cost, schedule and performance
Development Update
8
737 MAX
Flight test program on schedule with first four airplanes flying
Recurring/non-recurring cost reductions on track
Product development design efficiencies being realized
777X
Detailed design progressing to plan
Performance, reliability, maintainability on track
Supplier integration underway and meeting targets
787-10
95% design/build commonality on 787-9/-10 driving producibility benefits
Recurring/non-recurring cost better than plan and continues to improve
Major assembly began early and progressing well
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Increasing productivity while meeting planned production rates
Productivity Focused
9
Systems integration that enables
increased analytics and continuous
improvement
Tailor automotive productivity to
aerospace
Equipment platforms driving
flexibility and modularity
Leverage investments to transform
the production system
Increase technology across
Programs – common and
standard
Innovate with discipline and
focus
737 Automated Wing Panel Assembly
Will enable 60% reduction in defects, 30% reduction in flow
time, 50% reduction in employee injury
777 Fuselage Automated Upright Build (FAUB)
Automated, guided robots that will drill and fill ~50,000 fasteners
that are today installed by hand
787 Rear Fuselage Quadbots
Automated, guided robots that drill and fasten frames to
fuselage with real time inspection, driving first-time quality
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Winning market share with world-class support & services
Growing Boeing’s Services Business
Strategy
Provide 24/7 global support
Increase parts portfolio, broaden distribution
Enhance value-added maintenance & engineering
Leverage market-leading data analytics
Meet robust global demand for training
Leverage One Boeing opportunities
Results
Record orders in 2014 and 2015
Growing backlog
10
20-Year Current Airplane
Services Market Outlook
2015-2034
Information Services
Flight Services
Engineering &
Maintenance Services
$2.8T
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Key Drivers / Areas of Focus
Delivering on backlog
Supply chain efficiencies
First-time production quality
Development transition/efficiency
Factory automation
Internal cost optimization
Market conditions
Competitive landscape
Aspirational GoalNear-term Focus2013-2015
Aggressively focused on productivity to drive margin expansion
BCA Margins – Focused on Mid Teens
11
Mid
Teens
9.8%
Double
Digit
Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
12
Summary Execute on backlog
Expand market position - drive innovation and growth
Improve bottom line through performance and productivity
Design for customer value, producibility, maintainability and reliability
Maintain competitive advantage
Deliver results with the best team and talent
The aerospace leader and enduring global industrial champion
Copyright © 2016 Boeing. All rights reserved.