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Copyright © 2014 Boeing. All rights reserved. May 2014 Investor Conference Boeing Commercial Airplanes Ray Conner President and Chief Executive Officer Boeing Vice Chairman May 21, 2014

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Page 1: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 Investor Conference

Boeing Commercial

Airplanes

Ray Conner President and Chief Executive Officer Boeing Vice Chairman May 21, 2014

Page 2: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Boeing Commercial Airplanes

Strong operating performance

Record backlog

Executing planned rate increases

Disciplined development program management

Enhanced services offering

Executing on commitments and enabling growth

Deliveries 715 - 725

Revenue $57.5B – 59.5B

Margins ~ 10%

1Q14 | 1Q13 Delta

2014 Guidance

Revenue $12.7B 19%

Earnings $1.5B 23%

Margins 11.8% 0.4 Pts

Deliveries 161 18%

2

Page 3: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

First Quarter Highlights Video

3

Page 4: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Strong passenger growth; improving cargo market

Continued maintenance and engineering outsourcing

Stable fuel pricing

Adequate financing and liquidity

Strategic airline partnerships continue to evolve

Airlines on track for record profitability

Airline Industry Net Profitability

Source ICAO/ IATA

Airline Business Environment

Net Profit (Loss) Billions Percent of Revenue

4

Page 5: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Single-Aisle

$2.3T

Services

$2.5T Twin-Aisle

$2.5T 35,280

airplanes

Total Market Value

~$7.3 trillion

2013–2032

Near-term customer decisions will define future market leadership

Airplane & Services Market Opportunity

20 Year Market Outlook

5

Page 6: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

$374B | 5,154 Units

256

295 319

374

374

Substantial and balanced backlog

Backlog

Model

Single- Aisle 46%

Twin- Aisle 52%

747

737

767

787

777 Large 2%

Region L.

America & Africa

Asia Pacific

Leasing, Gov't & BBJ

North America

ME, Central

& S. Asia

China, East &

SE Asia

Europe &

Russia

6

Page 7: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Differentiated products and services

Aligned and disciplined airplane

development

Lean and responsive production system

Strengthen single-aisle market position

Expand twin-aisle market leadership

Enable and integrate services growth

Capturing market share while growing profitably

BCA Strategy

7

Page 8: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

3-class seating BOEING

747-8

MAX 9

MAX 8

MAX 7

787-9

787-8

787-10

777-8X

777-9X

777-300ER

AIRBUS

Product Line-Up

8

Page 9: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

462 477

601

737 Program (42 per month)

55% reduced factory flow time

49% “cost of quality” reduction

63% floor space reduction

777 Program (8.3 per month)

27% reduced factory flow time

10% “cost of quality” reduction

20% floor space reduction

Increasing productivity while meeting planned production rates

Productivity

9

787 Program (10 per month)

25% reduced total flow time

Parts shortages at record low levels

15% improvement in 787-8 unit cost

Page 10: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Production system stabilizing at

10/month

Charleston on schedule to

transition to 3/month

Positive in-service reliability trend

Delivering to 18 new customers

this year

First 787-9 delivering mid-year

Delivery guidance remains unchanged

787 Program Update

10

Page 11: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Provide 24/7 global support and entry-into-service for new products

Increase parts portfolio and broaden distribution

Enhance maintenance and engineering capabilities

Drive integrated information solutions

Meet global demand for training

Leverage One Boeing productivity opportunities

Providing world-class support and expanding services market share

Services Strategy

11

Page 12: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.

May 2014 | Investor Conference

Deliver on development program commitments

Execute rate and stabilize

Drive affordability and profitability

Grow services

Delivering on our commitments and securing our future

Imperatives

12

Page 13: Boeing Commercial Airplaness2.q4cdn.com/661678649/files/doc_presentations/04_Conner_2014... · Aligned and disciplined airplane development Lean and responsive production ... 787-9

Copyright © 2014 Boeing. All rights reserved.