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Boeing Company (the) — The Boeing Company — Q2 2018 Earnings Presentation

14 slides from Boeing Company (the)'s earnings presentation, Jul 25, 2018

1. Slide 1: Second-Quarter 2018 Performance Review

   Second-Quarter 2018 Performance Review Dennis Muilenburg Chairman, President and Chief Executive Officer Greg Smith Chief Financial Officer Executive Vice President of Enterprise Performance & Strategy July 25, 2018 Copyright © 2018 Boeing. All rights reserved.

2. Slide 2: Second-Quarter Summary

   Second-Quarter Summary Boeing | Investor Relations 2Q18 BCA Backlog  Strong results - generated higher revenue and earnings; strong cash flow North America  Repurchased $3.0B of shares; paid $1.0B in dividends Other 5,876 Airplanes in backlog  Delivered 194 commercial airplanes, including 52 737

3. Slide 3: Business Environment

   Business Environment Boeing | Investor Relations Strong and Growing Markets 10 Year Served Market  Commercial aviation remains long-term growth industry Defense Commercial – 20 year Commercial Market Outlook increased by 1,700 airplanes to 42,730 & Space Systems Airplanes  Robust airline profitabi

4. Slide 4: Second-Quarter Revenue and Earnings

   Second-Quarter Revenue and Earnings Boeing | Investor Relations Revenue (Billions) Core Earnings per Share * $30 $5.00 $25 $24.3 $23.1 $4.00 2018 Q2 results included $3.33 charges for KC-46 Tanker $20 ($0.57) and litigation outcome ($0.21) $3.00 $2.49 $15 $2.00 $10 $1.00 $5 $0 $0.00 2017 Q2 2018 Q2

5. Slide 5: Commercial Airplanes

   Commercial Airplanes Boeing | Investor Relations  Delivered 194 airplanes Revenues & Operating Margins $20 20% – Included 52 737 MAX deliveries; 10 customers received their first MAX $14.3 $14.5 Revenue (billions) $15 15%  Won 239 net orders Margin $10 10% 11.4% – Encompassed 91 widebody orders in

6. Slide 6: Defense, Space & Security

   Defense, Space & Security Boeing | Investor Relations  Captured new and follow-on business Revenues & Operating Margins $8 20% – Finalized production contract for 28 F/A-18 Super Hornets for Kuwait $5.6 Revenue (billions) $6 $5.1 15% Margin – Contract for 18 F/A-18 Super Hornets for U.S. Navy $4 11

7. Slide 7: Global Services

   Global Services Boeing | Investor Relations  Captured new and follow-on business Revenues & Operating Margins $6 30% – Awarded F/A-18 depot maintenance contract for Navy and Marine Corps Revenue (billions) $4.1 $4 $3.6 20% – Captured Primera Air 737 Global Fleet Care contract Margin $2 16.0% 14.7%

8. Slide 8: Cash Flow

   Cash Flow Boeing | Investor Relations Operating Cash Flow (Billions) $10 $7.8 $7.0  Planned higher commercial production rates $4.9 $4.7 $5  Strong operating performance  Timing of receipts and expenditures $0 2017 Q2 2018 Q2 1H17 1H18 Strong cash flow reflects healthy business 8 Copyright © 2018

9. Slide 9: Cash and Debt Balances

   Cash and Debt Balances Boeing | Investor Relations Billions Cash Billions S&P: A Boeing debt Moody’s: A2 Marketable Securities Fitch: A BCC debt $12 $12 $9.9 $9.8 $10.0 $9.6 $9 $9 $6 $8.1 $6 $9.2 $3 $3 $2.5 $2.5 $1.7 $0 $0.7 $0 2018 Q1 2018 Q2 2018 Q1 2018 Q2 Strong liquidity with manageable debt le

10. Slide 10: Financial Guidance

    Financial Guidance Boeing | Investor Relations 2018 $97.0 – 99.0B Revenue $96.0 – 98.0B * Core EPS $14.30 – 14.50 Operating Cash Flow $15.0 – 15.5B Capital Expenditures ~$2.2B * Non-GAAP measures. Definitions, reconciliations, and further disclosures regarding this non-GAAP measure are provided in t

11. Slide 11: Copyright © 2018 Boeing. All rights reserved.

    Copyright © 2018 Boeing. All rights reserved.

12. Slide 12: 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,”

13. 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 table provided below reconciles the non-GAAP financial measure core earnings per share with the most directly comparable GAAP financial measure diluted earn

14. Slide 14: Non-GAAP Measure Disclosure

    Non-GAAP Measure Disclosure Boeing | Investor Relations The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles segment operating margin excluding the KC-46 Tanker charge with segment operating margin, the most directly comparable GAAP

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