boeing commercial airplanes · copyright © 2016 boeing. all rights reserved. may 2016 | investor...

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


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



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



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



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



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.



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



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



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



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



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



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

boeing commercial airplanes · copyright © 2016 boeing. all rights reserved. may 2016 | investor...

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