Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q1 2020 Earnings Presentation
14 slides from Boeing Company (the)'s earnings presentation, Apr 29, 2020
Slide 1: First-Quarter 2020 Performance Review
First-Quarter 2020 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Greg Smith Executive Vice President Enterprise Operations and Chief Financial Officer INVESTOR RELATIONS April 29, 2020 Copyright © 2020 Boeing. All rights reserved.
Slide 2: COVID-19 Response
BOEING COVID-19 RESPONSE INVESTOR RELATIONS EMPLOYEES INDUSTRY COMPANY COMMUNITY WORK-FROM-HOME SUPPORT GOVERNMENT DIVIDEND & LEADERSHIP 3D PRINTING CREDIT ACCESS FOR PAY ACTIONS FACE SHIELDS ENHANCED CLEANING & INDUSTRY RIGOROUS RETURN TO EVALUATING ADDITIONAL DONATING MASKS, WORK PROCEDURES ENGAGE
Slide 3: Business Environment
BOEING BUSINESS ENVIRONMENT INVESTOR RELATIONS COVID-19 creating unprecedented shock Access to liquidity important for industry to in demand for air travel bridge to recovery Near-term market contraction due to Product differentiation and diversity of decreased traffic, travel restrictions b
Slide 4: Commercial Airplane Production Rates
BOEING COMMERCIAL AIRPLANE PRODUCTION RATES INVESTOR RELATIONS 787 777 / 737 767 747 777X MAX 14 Slower than No Change to Current Rate at this Time planned production 10 rate ramp following production restart 7 5 3 Gradual increase to 3 3 0.5 0.5 PER MO. PER MO. PER MO. PER MO. PER MO. 31 per month
Slide 5: Boeing Portfolio
BOEING BOEING PORTFOLIO INVESTOR RELATIONS 11% Government GLOBAL Services SERVICES 34% DEFENSE, SPACE & 13% SECURITY Commercial Services 2019 Revenues $77 Billion 42% COMMERCIAL AIRPLANES The world’s most diversified aerospace and defense company 5 Copyright © 2020 Boeing. All rights reserved.
Slide 6: First-Quarter Revenue and Earnings
BOEING FIRST-QUARTER REVENUE AND EARNINGS INVESTOR RELATIONS Revenue (Billions) CoreCore Earnings perper Earnings/(Loss) Share* Share* $30 $4.00 $3.16 $24 $22.9 $3.00 $2.00 $18 $16.9 $1.00 $0.00 $12 ($1.00) $6 ($2.00) ($1.70) $0 ($3.00) 2019 Q1 2020 Q1 2019 Q1 2020 Q1 * Non-GAAP measure. Additional
Slide 7: Commercial Airplanes
BOEING COMMERCIAL AIRPLANES INVESTOR RELATIONS • Temporarily suspended operations at multiple locations due to COVID-19 Revenues & Operating Margins • Financial results significantly impacted by COVID-19 and 737 MAX grounding $15 40% $11.8 Revenue (billions) 20% • Adjusting production rates due to C
Slide 8: Defense, Space & Security
BOEING DEFENSE, SPACE & SECURITY INVESTOR RELATIONS • Suspension of operations and disruption due to COVID-19 Revenues & Operating Margins impacted several programs • Captured new and follow-on business; $8 $6.6 20% $6.0 well positioned for the future Revenue (billions) $6 10% 12.9% Margin $4 ⎻ Awar
Slide 9: Global Services
BOEING GLOBAL SERVICES INVESTOR RELATIONS • Decrease in commercial volume in 1Q20 due to COVID-19; Revenues & Operating Margins expect significantly larger impact in future periods • Right-sizing business to adjust to market realities $6 30% $4.6 $4.6 Revenue (billions) $4 20% Margin • Outlook for g
Slide 10: Cash Flow
BOEING CASH FLOW INVESTOR RELATIONS Operating Cash Flow (Billions) $4 • COVID-19 caused delivery $2.8 and production disruption $2 • Lower commercial airplane $0 delivery and advance payments ($2) • Timing of receipts and ($4) expenditures ($4.3) ($6) 2019 Q1 2020 Q1 • Disciplined cash management Ca
Slide 11: Cash and Debt Balances
BOEING CASH AND DEBT BALANCES INVESTOR RELATIONS Cash S&P: BBB Boeing debt Billions Marketable Securities Billions Moody’s: Baa2 Fitch: BBB BCC debt $40 $40 $36.9 $35 $35 $30 $30 $25.3 $25 $25 $20 $20 $15.5 $15 $15 $10.0 $10 $10 $15.0 $5 $9.5 $5 $2.0 $2.0 $0 $0.5 $0.5 $0 2019 Q4 2020 Q1 2019 Q4 2020
Slide 12: Copyright © 2020 Boeing. All rights reserved.
Copyright © 2020 Boeing. All rights reserved.
Slide 13: Caution Concerning Forward-Looking Statements
BOEING CAUTION CONCERNING FORWARD-LOOKING STATEMENTS INVESTOR RELATIONS This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “
Slide 14: Non-GAAP Measure Disclosure
BOEING NON-GAAP MEASURE DISCLOSURE INVESTOR RELATIONS The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core (loss)/earnings per share with the most directly comparable GAAP financial measure diluted