Slide 1: Third-Quarter 2017 Performance Review
Third-Quarter 2017 Performance Review Dennis Muilenburg Chairman, President and Chief Executive Officer Greg Smith Chief Financial Officer Executive Vice President of Enterprise Performance & Strategy October 25, 2017 Copyright © 2017 Boeing. All rights reserved.
Slide 2: Third-Quarter Summary
Third-Quarter Summary Boeing | Investor Relations 3Q17 BCA Backlog Generated solid earnings and robust operating cash flow North Other America Repurchased $2.5B of shares; paid $0.9B in dividends 5,659 Airplanes in backlog Delivered record 202 commercial airplanes Europe Middle East Southeast
Slide 3: Business Environment
Business Environment Boeing | Investor Relations 2017 Current Market Outlook Commercial aviation remains long-term growth industry Regional Freighters jets Single aisle Medium / Large widebody Healthy airline profitability; robust passenger traffic Small widebody 41,030 New airplanes Strong na
Slide 4: Third-Quarter Revenue and Earnings
Third-Quarter Revenue and Earnings Boeing | Investor Relations Revenue (Billions) Core Earnings per Share * $30 $4.00 $3.51 $24.3 $3.50 $25 $23.9 Favorable $3.00 tax items ($0.98) $2.72 $20 $2.50 $15 $2.00 $1.50 $10 $1.00 $5 $0.50 $0 $0.00 2016 Q3 2017 Q3 2016 Q3 2017 Q3 * Non-GAAP measures. Definit
Slide 5: Commercial Airplanes
Commercial Airplanes Boeing | Investor Relations Revenues & Operating Margins Delivered record 202 airplanes $20 20% Revenue (billions) $15.2 $15.0 – Included 24 737 MAX 8 deliveries $15 15% Margin $10 10% Won 117 net orders $5 8.5% 9.9% 5% $0 0% – Orders valued at $7B; robust backlog of $412B 2
Slide 6: Defense, Space & Security
Defense, Space & Security Boeing | Investor Relations Revenues & Operating Margins Capturing new and follow-on business 20% $5.8 $5.5 Revenue (billions) $6 – Won Ground Based Strategic Deterrent design contract 15% Margin $4 10% – Preliminary design contract for next Air Force One $2 9.8% 10.2% 5%
Slide 7: Global Services
Global Services Boeing | Investor Relations Revenues & Operating Margins Successfully launched Boeing Global Services 25% $5 Revenue (billions) $3.5 $3.6 20% Capturing new and follow-on business Margin $3 15% 14.9% 14.2% 10% $2 5% – Awarded F/A-18 E/F Spares DLA contract $0 0% 2016 Q3 2017 Q3 –
Slide 8: Cash Flow
Cash Flow Boeing | Investor Relations Operating Cash Flow (Billions) $4 $3.4 $3.2 Solid operating performance $3 Favorable timing of receipts and expenditures $2 Repurchased 11 million shares in 3Q17 for $2.5 billion and paid $0.9B billion in dividends $1 $0 2016 Q3 2017 Q3 Execution driving r
Slide 9: Cash and Debt Balances
Cash and Debt Balances Boeing | Investor Relations S&P: A Boeing debt Cash Moody’s: A2 Marketable Securities Fitch: A BCC debt Billions Billions $12 $12 $10.3 $10.0 $9 $9 $7.8 $7.8 $6 8.7 8.6 $6 $3 $3.0 $3.0 $3 1.6 1.4 $0 $0 2017 Q2 2017 Q3 2017 Q2 2017 Q3 Strong liquidity with manageable debt level
Slide 10: Financial Guidance
Financial Guidance Boeing | Investor Relations 2017 Revenue $90.5 – 92.5B * $9.90 – 10.10 Core EPS $9.80 – 10.00 ~$12.5B Operating Cash Flow ~$12.25B Capital Expenditures ~$2.0B * Non-GAAP measures. Definitions, reconciliations, and further disclosures regarding this non-GAAP measure are provided in
Slide 11: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements Boeing | 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 12: Copyright © 2017 Boeing. All rights reserved.
Copyright © 2017 Boeing. All rights reserved.
Slide 13: Non-GAAP Measure Disclosure
Non-GAAP Measure Disclosure Boeing | Investor Relations The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The tables provided below reconcile the non-GAAP financial measures core earnings per share and operating margin excluding the KC-46 Tanker charge with the most