Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q4 2020 Earnings Presentation
19 slides from Boeing Company (the)'s earnings presentation, Jan 27, 2021
Slide 1: Fourth-Quarter 2020 Performance Review
Fourth-Quarter 2020 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Greg Smith Executive Vice President Enterprise Operations, Chief Financial Officer January 27, 2021 Copyright © 2021 Boeing. All rights reserved.
Slide 2: 737 MAX Update
737 MAX UPDATE COMPREHENSIVE RETURN TO SERVICE EFFORT PROGRESS FOLLOWING RETURN TO SERVICE Through November 2020 As of 1/25/21 ~400,000 40+ Engineering Hours Delivered Since Ungrounding 1,400+ 5 Test and Check Flights Airlines Back in Service 2,700+ 3,000+ Revenue Flights Flight Hours ~5,500 Regulat
Slide 3: Business Environment: Air traffic remains impacted by pandemic
BUSINESS ENVIRONMENT Air traffic remains impacted by pandemic • Stable global demand for our defense, space International traffic disproportionally affected, cargo recovery advancing and government services Passenger Market Cargo Market • COVID-19 significantly impacting demand for air travel 20% 20
Slide 4: Commercial Airplane Production Rates
COMMERCIAL AIRPLANE PRODUCTION RATES 787 777 / 737 767 747 777X Gradual increase to 5 31 per month in early 2022 with further gradual increases to 3 2 correspond with 0.5 PER MO. PER MO. market demand PER MO. PER MO. 2021 2021 2021 2021 Final assembly will be consolidated to Boeing South Carolina in
Slide 5: 2021 Priorities
2021 PRIORITIES Focused on safety, quality and transparency as we rebuild trust and transform our business for the future Copyright © 2021 Boeing. All rights reserved. 5
Slide 6: Full Year Financial Results
FULL YEAR FINANCIAL RESULTS Revenue (Billions) Core Loss per Share* Operating Cash Flow (Billions) $0 $0 $90 $76.6 ($5) ($2.4) $75 ($3.47) ($4) $60 $58.2 ($10) ($8) ($15) $45 ($12) $30 ($20) ($16) $15 ($25) ($23.25) $0 ($30) ($20) ($18.4) 2019 2020 2019 2020 2019 2020 * Non-GAAP measures. Definition
Slide 7: Fourth-Quarter Revenue and Earnings
FOURTH-QUARTER REVENUE AND EARNINGS Revenue (Billions) Core Loss per Share* Revenue (4Q20 vs. 4Q19) - Lower commercial deliveries $25 $0 - Lower services volume + Lower 737 MAX customer consideration charge ($3) ($2.33) $20 $17.9 Core Loss per Share* (4Q20 vs. 4Q19) $15.3 ($6) $15 - Lower commercial
Slide 8: Commercial Airplanes
COMMERCIAL AIRPLANES • Financial results significantly impacted by COVID-19, 737 Revenues & Operating Margins MAX grounding, 777X charge and lower 787 deliveries • Began receiving regulatory approval for 737 MAX to resume $7.5 $8 operations; restarted deliveries in December 650% Revenue (billions) $
Slide 9: Defense, Space & Security
DEFENSE, SPACE & SECURITY • Captured new and follow-on business Revenues & Operating Margins ⎻ Contract for 2 KC-46 aircraft to Japan ⎻ Award for AEW&C upgrades for the Republic of Korea Air Force $9 15% $6.8 Revenue (billions) ⎻ Contracts for proprietary space programs $6 $5.9 10% Margin 7.4% • Exe
Slide 10: Global Services
GLOBAL SERVICES Revenues & Operating Margins • Commercial services significantly impacted by COVID-19 Revenue including asset impairments (~$0.3B) $6 Gov’t Comm’l 30% $4.6 • Outlook for government services remains stable $4 $3.7 20% Revenue (billions) 14.7% Margin • Captured new and follow-on busine
Slide 11: Cash Flow
CASH FLOW Operating Cash Flow (Billions) $1 • COVID-19 business disruption ($2) ($2.2) ($2.4) • Lower commercial airplane ($5) ($4.0) deliveries, advance payments ($8) and commercial services ($11) • Timing of receipts and ($14) expenditures ($17) ($20) ($18.4) • Disciplined liquidity management 201
Slide 12: Cash and Debt Balances
CASH AND DEBT BALANCES Cash S&P: BBB- Boeing debt Billions Marketable Securities Billions Moody’s: Baa2 Fitch: BBB- BCC debt $70 $62.0 $30 $59.1 $60 $27.1 $25.6 $50 $10.6 $7.8 $20 $40 $30 $10 $17.8 $20 $16.5 $10 $1.9 $1.6 $0 $0 2020 Q3 2020 Q4 2020 Q3 2020 Q4 Focused on proactively managing liquidit
Slide 13: 2021 Key Drivers
2021 KEY DRIVERS • Informed by current commercial market recovery expectations and customer discussions to date • Government services, defense and space expected to remain relatively stable • Environment continues to be dynamic; monitoring risks and opportunities • Focused on proactively managing li
Slide 14: Summary
SUMMARY • Continuing to take action to: ⎻ Preserve liquidity ⎻ Prepare for market recovery ⎻ Improve performance Infrastructure Overhead & Supply Chain Portfolio & Operational Organization Health Investments Excellence ⎻ Sustain key investments ⎻ Position to be more productive and competitive • Nume
Slide 15: Copyright © 2021 Boeing. All rights reserved.
Copyright © 2021 Boeing. All rights reserved.
Slide 16: Caution Concerning Forward-Looking Statements
CAUTION CONCERNING 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,” a
Slide 17: Non-GAAP Measure Disclosure
NON-GAAP MEASURE DISCLOSURE The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core loss per share with the most directly comparable GAAP financial measure diluted loss per share. See page 6 of the co
Slide 18: Non-GAAP Measure Disclosure
NON-GAAP MEASURE DISCLOSURE The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core loss per share with the most directly comparable GAAP financial measure diluted loss per share. See page 6 of the co
Slide 19: 737 MAX - Additional Detail
737 MAX - ADDITIONAL DETAIL • As Commercial Airplanes continues to produce at abnormally low production rates in 2020 and 2021, it expects to incur approximately $5 billion of abnormal production costs that are being expensed as incurred • Commercial Airplanes expensed $2,567 million of abnormal pro