Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q3 2020 Earnings Presentation
16 slides from Boeing Company (the)'s earnings presentation, Oct 28, 2020
Slide 1: Third-Quarter 2020 Performance Review
Third-Quarter 2020 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Greg Smith Executive Vice President Enterprise Operations, Chief Financial Officer October 28, 2020 Copyright © 2020 Boeing. All rights reserved.
Slide 2: Business Update
BUSINESS UPDATE Focused on meeting our customer commitments with the highest safety and quality standard 2 Copyright © 2020 Boeing. All rights reserved.
Slide 3: Business Environment
BUSINESS ENVIRONMENT • Stable global demand for our defense, space 10 YR MARKET SERVED and government services 2020 Boeing Market Outlook • COVID-19 continues to impact demand Defense for air travel • Recovery continues, but remains slow and uneven $8.5T • Challenged by entry protocols and travel re
Slide 4: Commercial Airplane Production Rates
COMMERCIAL AIRPLANE PRODUCTION RATES 787 777 / 737 767 747 777X 10 Gradual increase to 31 per month by the beginning of 2022 6 with further gradual 5 increases to correspond with 3 3 2 0.5 0.5 PER MO. PER MO. PER MO. PER MO. market demand PER MO. PER MO. PER MO. PER MO. Current 2021 Current 2021 Cur
Slide 5: Business Transformation
BUSINESS TRANSFORMATION Suspended Dividend Announced Reduced Announced Additional Production Organizational and Terminated Production Rates, Rate Reductions and Shared Realignments and BOEING Share Repurchase Lower Staffing Levels Business Transformation Effort Simplification ACTIONS March through 1
Slide 6: Third-Quarter Revenue and Earnings
THIRD-QUARTER REVENUE AND EARNINGS Revenue (Billions) CoreCore Earnings perper Earnings/(Loss) Share* Share* $25 $2.00 $1.45 $20.0 $20 $1.00 $15 $14.1 $0.00 $10 ($1.00) $5 ($1.39) $0 ($2.00) 2019 Q3 2020 Q3 2019 Q3 2020 Q3 * Non-GAAP measure. Additional information is provided in the company’s earni
Slide 7: Commercial Airplanes
COMMERCIAL AIRPLANES • Financial results significantly impacted by Revenues & Operating Margins COVID-19 and 737 MAX grounding • No change to previously announced production rate $10 $8.2 Revenue (billions) assumptions $6 360% Margin $3.6 • Delivered 28 airplanes; Backlog of $313B $2 0% -$2 (0.5%) (
Slide 8: Defense, Space & Security
DEFENSE, SPACE & SECURITY • Captured new and follow-on business Revenues & Operating Margins • Award for 8 F-15EX advanced fighter jets for the U.S. Air Force • Contract extension for the International Space Station for NASA $8 20% $7.0 $6.8 • Contract for 9 additional MH-47G Block II Chinook helico
Slide 9: Global Services
GLOBAL SERVICES Revenues & Operating Margins • Commercial services significantly impacted by COVID-19 Revenue Comm’l $6 30% • Outlook for government services remains stable $4.7 Gov’t $4 14.4% $3.7 20% Revenue (billions) • Delivered first Operational Flight Trainer for the UK P-8A Margin 7.3% $2 10%
Slide 10: Cash Flow
CASH FLOW Operating Cash Flow (Billions) $0 • COVID-19 disruption • Lower commercial airplane deliveries, advance payments ($2) and commercial services ($2.4) • Timing of receipts and ($4) expenditures ($4.8) • Disciplined cash management ($6) 2019 Q3 2020 Q3 Cash generation impacted by COVID-19 and
Slide 11: 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 $32.4 $59.5 $59.1 $30 $60 $27.1 $50 $20.0 $10.6 $20 $40 $30 $10 $20 $16.5 $12.4 $10 $1.9 $1.9 $0 $0 2020 Q2 2020 Q3 2020 Q2 2020 Q3 Focused on proactively managing liquidit
Slide 12: Summary
SUMMARY • COVID-19 continues to have a severe impact on aerospace industry • Long-term industry fundamentals remain strong; portfolio well-positioned • Focused on our values and achieving our priorities • Proactively managing liquidity and strengthening the balance sheet • Transforming our business
Slide 13: Copyright © 2020 Boeing. All rights reserved.
Copyright © 2020 Boeing. All rights reserved.
Slide 14: 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 15: 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)/earnings per share with the most directly comparable GAAP financial measure diluted (loss)/earnings per share
Slide 16: 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 $590 million and $2,099 millio