Boeing Company (the) · NYSE:BA

Boeing Company (the) — Investor Day (November 2022)

45 slides from Boeing Company (the)'s investor day presentation, Nov 2, 2022

Slide 2: Welcome – Agenda and Objectives
Welcome – Agenda and Objectives Matt Welch Vice President, Investor Relations CEO Perspective Dave Calhoun President and Chief Executive Officer Financial Update Brian West Executive Vice President and CFO Commercial Business Update Stan Deal Executive Vice President, President and CEO of Boeing Com
Slide 3: Forward-Looking Statements
Forward-Looking Statements 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,” “targets,” “anticipates,” and similar expressi
Slide 6: Market outlook: Single Aisle, Widebody, Regional
Single Aisle Government Services U.S. Widebody Commercial Services Non-U.S. Regional *2022 outlooks exclude Russia Copyright © 2022 Boeing. All rights reserved.
Slide 8: Free Cash Flow: Significant cash flow progress to date
Free Cash Flow* Significant cash flow progress to date  737 MAX return to service and deliveries  787 return to deliveries ~$10B  Commercial market recovery and order activity  BGS performance + Path to normalized cash flow ($4B)  737 and 787 inventory deliveries  Supply chain stability and fa
Slide 9: Robust aerospace safety and quality ecosystem
Robust aerospace safety and quality ecosystem De-risked product portfolio Strategic capabilities for leading-edge products and services Return cash to shareholders Copyright © 2022 Boeing. All rights reserved.
Slide 11: 2022 Free Cash Flow: Forward momentum over the year
1st Half ($3.7B) 3rd Quarter $2.9B 4th Quarter ~$2.5B Full Year $1.5B - $2.0B Forward momentum over the course of the year Copyright © 2022 Boeing. All rights reserved. *Non-GAAP measure; refer to Slide 44
Slide 12: Segment Operating Cash
Segment Operating Cash  BDS ($1.0B) - ($0.5B)  BGS $2.5B - $3.0B $4.5B - $6.5B ($1.5B)  BCA $2.5B - $3.5B  Other $0.5B - $0.5B $3B - $5B Key Assumptions  737 Deliveries 400 - 450  787 Deliveries 70 - 80 Operating CapEx Free Cash Cash Flow BCA delivery volume and continued strong BGS performanc
Slide 13: Improving Revenue & Operating Margins
Improving Revenue & Operating Margins Continued Investment Boeing ~$100B Revenue | ~10% Operating Margin R&D ~$3.5B BCA ~800 deliveries | Low-double digits CapEx ~$2.0B BGS Mid-single digit growth | Mid-teens BDS Low-single digit growth | High-single digits Copyright © 2022 Boeing. All rights reserv
Slide 14: Segment Operating Cash
Segment Operating Cash  BCA ~$9B ~$12B ($2B)  BGS ~$3B ~$10B  BDS ~$2B  Other ~($2B) Key Assumptions  737 Production Rate ~50/mo  787 Production Rate ~10/mo  777/777X Production Rate ~4/mo Operating CapEx Free Cash Cash Flow BCA production ramp, BDS program transitions, BGS profitable growth
Slide 15: Path to historical levels of cash flow generation
$2.7B $0.3B ($3B) + Volume $6B ~$10B + Program transitions - Investments + Productivity - Tax payments + Interest expense $3B - $5B + Production ramp + Productivity - 777X production ramp 2023 BCA BDS BGS CapEx 2025 / 2026 & Other Path to historical levels of cash flow generation Copyright © 2022 Bo
Slide 16: Liquidity
Liquidity (Billions) Sufficient liquidity with cash on hand & revolver Continue to invest in the business Cash generation to address debt maturities, ~$17 excess cash for accelerated debt paydown Investment grade rating remains a priority YE22 Free Cash Debt YE25 Targeting historical leverage Cash F
Slide 17: Big, diverse backlog enables growth
International Commercial Growth 30% 20% 30% Backlog Backlog Backlog $307B $55B $19B U.S. 70% Defense Replacement 80% 70% Big, diverse backlog enables growth Copyright © 2022 Boeing. All rights reserved. as of 3Q22
Slide 18: Meet customer commitments
Meet customer commitments Leverage Lean Invest in future capabilities Supply chain health Eliminate rework Restore balance sheet Program execution Expand digital capabilities Return cash to shareholders Copyright © 2022 Boeing. All rights reserved.
Slide 20: Resilient market
Resilient market Meet customer expectations Recover factory and supply chain stability Delivery predictability Certify development programs Copyright © 2022 Boeing. All rights reserved.
Slide 21: Commercial airplane family: 737, 787, 777X
120 450 777X 2-Class Seating the next long-haul Tonnes market leader 400 100 Payload and range for every market 350 787 80 Industry-leading the only complete reliability and 300 widebody family performance 60 250 Proven and 40 preferred 200 737 the most versatile single-aisle family 20 150 To be cer
Slide 22: BCA Delivery Mix & Inventory
BCA Delivery Mix 737 & 787 Inventory 800+ Production Deliveries Deliver 737 and 787 inventory 100% Disciplined rate increases to meet demand 50% Leverage Lean Invest in production capabilities 0% 2022 2023 2024 2025 2026+ Driving Stability and Productivity Copyright © 2022 Boeing. All rights reserve
Slide 24: Global threats driving budgetary environment
Global threats driving budgetary environment Product line up well-positioned to meet customer needs Execute fixed-priced development programs Stabilize factory and supply chain performance Margin and cash flow recovery Copyright © 2022 Boeing. All rights reserved.
Slide 25: Defense programs and Phantom Works
Existing Programs Future Franchises Strike Systems Advanced F/A-18 F-15EX T-7 MQ-28 Fighters Space & Missile Phantom Works Defense Satellites PAC-3 Comm Crew SLS MILSATCOM Human Space Vertical Lift H-47 AH-64 V-22 MH-139 FLRAA Mobility & C4ISR P-8 E-7 KC-46 MQ-25 Copyright © 2022 Boeing. All rights
Slide 26: Maturing Programs and Reducing Risk
Key risk reduction 2022 2023 2024 2025 2026 T-7 Flight test Low rate production Flight test MQ-25 Initial build KC-46 RVS / Change incorporation First Flight VC-25B Build Flight test Maturing Programs and Reducing Risk Copyright © 2022 Boeing. All rights reserved.
Slide 30: BGS Portfolio Mix
BGS Portfolio Mix Government Services Commercial Services Installed fleet growth Integrated digital solutions Cost-to-serve / Lean Disciplined investments Pre-Covid Covid Post-Covid 2019 2020-2021 2022-2026+ Focused on Execution and Profitable Growth Copyright © 2022 Boeing. All rights reserved.
Slide 32: Our Values
HOW WE OPERATE: HOW WE ACT: OUR VALUES Start with engineering excellence Lead on safety, quality, integrity and sustainability Be accountable — from beginning to end Foster a Just Culture grounded in humility, inclusion and transparency Apply Lean principles Import best leadership practices Eliminat
Slide 34: Advanced Composites and engineering technologies
Advanced Composites Full-Size Determinant Assembly Additive Manufacturing Digital Factory Model-Based Engineering T-7A Red Hawk Avionics Vertical Advanced Flight Deck MQ-25 Airpower Teaming System Wisk Commercial SAF cert by 2030 NASA Sustainable Flight Demonstrator NASA Electric Powertrain Flight D
Slide 44: Returning to historical levels of cash flow generation
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investme

Boeing — Investor Day (November 2022) on 6ix

Boeing Company (the) — Investor Day (November 2022)

Slide 1: Copyright © 2022 Boeing. All rights reserved.

Slide 2: Welcome – Agenda and Objectives

Slide 3: Forward-Looking Statements

Slide 4: Copyright © 2022 Boeing. All rights reserved.

Slide 5: 737 MAX Return to Service

Slide 6: Market outlook: Single Aisle, Widebody, Regional

Slide 7: Copyright © 2022 Boeing. All rights reserved.

Slide 8: Free Cash Flow: Significant cash flow progress to date

Slide 9: Robust aerospace safety and quality ecosystem

Slide 10: Copyright © 2022 Boeing. All rights reserved.

Slide 11: 2022 Free Cash Flow: Forward momentum over the year

Slide 12: Segment Operating Cash

Slide 13: Improving Revenue & Operating Margins

Slide 14: Segment Operating Cash

Slide 15: Path to historical levels of cash flow generation

Slide 16: Liquidity

Slide 17: Big, diverse backlog enables growth

Slide 18: Meet customer commitments

Slide 19: Copyright © 2022 Boeing. All rights reserved.

Slide 20: Resilient market

Slide 21: Commercial airplane family: 737, 787, 777X

Slide 22: BCA Delivery Mix & Inventory

Slide 23: Copyright © 2022 Boeing. All rights reserved.

Slide 24: Global threats driving budgetary environment

Slide 25: Defense programs and Phantom Works

Slide 26: Maturing Programs and Reducing Risk

Slide 27: Copyright © 2022 Boeing. All rights reserved.

Slide 28: On-time, predictable delivery

Slide 29: Copyright © 2022 Boeing. All rights reserved.

Slide 30: BGS Portfolio Mix

Slide 31: Copyright © 2022 Boeing. All rights reserved.

Slide 32: Our Values

Slide 33: Copyright © 2022 Boeing. All rights reserved.

Slide 34: Advanced Composites and engineering technologies

Slide 35: Copyright © 2022 Boeing. All rights reserved.

Slide 36: Copyright © 2022 Boeing. All rights reserved.

Slide 37: All of Resources

Slide 38: Copyright © 2022 Boeing. All rights reserved.

Slide 39: Copyright © 2022 Boeing. All rights reserved.

Slide 40: Copyright © 2022 Boeing. All rights reserved.

Slide 41: Copyright © 2022 Boeing. All rights reserved.

Slide 42: Copyright © 2022 Boeing. All rights reserved.

Slide 43: Copyright © 2022 Boeing. All rights reserved.

Slide 44: Returning to historical levels of cash flow generation

Slide 45: Copyright © 2022 Boeing. All rights reserved.