Boeing Company (the) · NYSE:BA

Boeing Company (the) — Investor Presentation (July 2016)

32 slides from Boeing Company (the)'s investor presentation, Jul 6, 2016

  1. Slide 1: Current Market Outlook

    Current 2 John Wojick Randy Tinseth 0 Senior Vice President, Vice President, Market 1 Global Sales & Marketing Marketing Boeing Commercial Airplanes Outlook 6 July 2016 Copyright © 2016 Boeing. All rights reserved.

  2. Slide 2: Agenda

    Agenda Market performance and trends Current Market Outlook (CMO) Copyright © 2016 Boeing. All rights reserved.

  3. Slide 3: Global market performance 2010 – 2015

    Global market performance 2010 – 2015 Passenger traffic Cargo traffic Airline growth growth profits Copyright © 2016 Boeing. All rights reserved.

  4. Slide 4: 2016 global market expectations

    2016 global market expectations Passenger traffic Cargo traffic Airline growth growth profits SOURCES: Boeing estimates for growth, IATA forecast for airline profits Copyright © 2016 Boeing. All rights reserved.

  5. Slide 5: Global aviation market trends

    Global aviation market trends Growth driven by Continued strong New airplanes, emerging replacement capabilities opening economies, LCCs demand new markets Copyright © 2016 Boeing. All rights reserved.

  6. Slide 6: Emerging markets / China leading future growth

    Emerging markets / China leading future growth GDP growth GDP contributions 2015-2035 2015-2035 Emerging Markets and China 4.3% $35 trillion Advanced Economies 1.8% $20 trillion Copyright © 2016 Boeing. All rights reserved.

  7. Slide 7: LCCs taking >1/3 of new single-aisle deliveries

    LCCs taking >1/3 of new single-aisle deliveries Single-aisle airplane fleet 4% 4% 4% 27% 33% 37% 30% 41% 44% 2035 2015 2025 25% 25 25% 26% % LCC Charter/IT Broad Network Other Networks SOURCE: Boeing CMOs Copyright © 2016 Boeing. All rights reserved.

  8. Slide 8: Airplanes turning 25 years old

    Replacement demand increasing 800 Single-aisle 250 Twin-aisle Excludes >700 airplanes Excludes >300 airplanes 700 older than 25 years older than 25 years 200 600 Airplanes turning 25 years old 500 150 400 100 300 200 50 100 0 0 2024 2016 2017 2018 2019 2020 2021 2022 2023 2025 2026 2027 2028 2029 20

  9. Slide 9: 787 Dreamliner opening new markets

    787 Dreamliner opening new markets >100 new nonstop markets now connected with the 787 Bergen Oslo Helsinki Edinburgh Dublin Copenhagen Calgary Warsaw Vancouver Manchester Dusseldorf Toronto Oakland Denver Boston Tashkent Beijing San Francisco Rome New York Seoul Tokyo Xi'an Wuhan Los Angeles Housto

  10. Slide 10: Agenda

    Agenda Market performance and trends Current Market Outlook (CMO) Products and customers Copyright © 2016 Boeing. All rights reserved.

  11. Slide 11: What's in the CMO?

    What’s in the CMO? 20-year Global All jets >30 Freighters All flights forecast coverage seats • Scheduled • Traffic • 63 traffic • No turbo props • Nonscheduled • Product flows • No biz jets • No military Copyright © 2016 Boeing. All rights reserved.

  12. Slide 12: Why the CMO?

    Why the CMO? Product Long-range Suppliers and strategy business plan airline customers Copyright © 2016 Boeing. All rights reserved.

  13. Slide 13: Market forecast drivers and considerations

    Market forecast drivers and considerations Emerging markets Airline strategies & Competitive business landscape models Environment Market liberalization Infrastructure Fuel price Airplane Economic capabilities growth Copyright © 2016 Boeing. All rights reserved.

  14. Slide 14: Resilient, growing market expected to continue

    Resilient, growing market expected to continue 5% long-term growth rate 7.0 6.0 5.0 RPKs (trillions) 4.0 3.0 2.0 1.0 0.0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

  15. Slide 15: 20-year forecast: continued long-term growth

    20-year forecast: continued long-term growth Average annual growth rates 4.8% 4.2% 4.0% 2.9% World GDP economy NumberPax of airline Passenger RPK traffic Cargo traffic RTK (GDP) passengers (RPK) (RTK) Copyright © 2016 Boeing. All rights reserved.

  16. Slide 16: Airlines need 39,620 new airplanes valued at $5.9 trillion

    Airlines need 39,620 new airplanes valued at $5.9 trillion Airplane deliveries: 39,620 Market value: $5,930B 2016 - 2035 2016 - 2035 30,000 28,140 Airplane Type Value 2% 25,000 4% Regional jets $110B 20,000 21% Single-aisle $3,000B 15,000 Small wide-body $1,350B $5.9T 51% 10,000 5,100 Medium wide-bo

  17. Slide 17: World fleet will double

    World fleet will double Units 50,000 45,240 45,000 40,000 35,000 22,730 Growth 30,000 57% 25,000 39,620 22,510 20,000 16,890 15,000 Replacement 43% 10,000 5,000 5,620 0 Retained fleet 2015 2035 Copyright © 2016 Boeing. All rights reserved.

  18. Slide 18: Emerging markets are driving economic growth

    Emerging markets are driving economic growth Annual GDP growth, 2015 – 2035 Asia 4.1 Middle East 3.8 Africa 3.7 Latin America 2.9 World 2.9 CIS 2.5 North America 2.3 Europe 1.8 SOURCE: IHS Economics Copyright © 2016 Boeing. All rights reserved.

  19. Slide 19: Air travel growth varies by market

    Air travel growth varies by market 2015 traffic Added traffic 2016-2035 Annual growth % Within Asia* 6.1% Within China 6.2% Within North America 2.6% Within Europe 3.2% World Middle East - Asia 6.9% Traffic Growth: Europe - Asia 4.7% 4.8% North Atlantic 2.9% World Transpacific 4.5% GDP Growth: North

  20. Slide 20: Market to become even more geographically balanced

    Market to become even more geographically balanced New airplane deliveries by region Market value by region 2016–2035 2016–2035 Region Airplanes Region $B Asia 15,130 3% Asia 2,350 2% 8% 3% 6% 3% North America 8,330 North America 1,030 8% 38% 13% Europe 7,570 Europe 1,120 40% Middle East 3,310 39,62

  21. Slide 21: Airlines will need 28,140 single-aisles valued at $3 trillion

    Airlines will need 28,140 single-aisles valued at $3 trillion Share of fleet Delivery units 100% C.I.S. Africa 3% 3% Latin 75% America 9% Middle East 5% Asia 50% 40% Europe 21% 25% North America 19% 0% 2015 2035 2016 to 2035 Airplanes Airplanes New airplanes 14,870 32,280 28,140 Copyright © 2016 Boe

  22. Slide 22: Single-aisle seat capacity growing at ~1% per year

    Single-aisle seat capacity growing at ~1% per year Average single-aisle seat capacity 220 210 200 190 180 170 160 150 140 Market LCC 130 120 Outlook Copyright © 2016 Boeing. All rights reserved.

  23. Slide 23: Single-aisle seating capacity increasing

    Single-aisle seating capacity increasing Fast growing Improved cabin Modest LCCs efficiencies upgauging Copyright © 2016 Boeing. All rights reserved.

  24. Slide 24: Medium-size aircraft are at heart of single-aisle market

    Medium-size aircraft are at heart of single-aisle market 76% Small – MAX 7 size Backlog Medium – MAX 8 size Large – MAX 9 size 5% 19% SOURCE: Ascend Online Data June 28, 2016 All passenger jet airplanes >110 seats in commercial use Copyright © 2016 Boeing. All rights reserved.

  25. Slide 25: Airlines will need 9,100 wide-bodies valued at $2.8 trillion

    Airlines will need 9,100 wide-bodies valued at $2.8 trillion Share of fleet Delivery units 100% C.I.S. Africa Latin 3% 2% America 3% 75% Middle East Asia 19% 41% 50% Europe 25% 17% North America 15% 0% 2015 2035 2016 to 2035 Airplanes Airplanes New airplanes 5,040 10,450 9,100 Copyright © 2016 Boein

  26. Slide 26: Copyright © 2016 Boeing. All rights reserved.

    Copyright © 2016 Boeing. All rights reserved.

  27. Slide 27: In 1990, >30 routes to / from Tokyo were served by large airplanes

    In 1990, >30 routes to / from Tokyo were served by large airplanes SOURCE: OAG / Innovata Copyright © 2016 Boeing. All rights reserved.

  28. Slide 28: In 2016, only 8 routes to / from Tokyo served by large airplanes

    In 2016, only 8 routes to / from Tokyo served by large airplanes SOURCE: OAG / Innovata Copyright © 2016 Boeing. All rights reserved.

  29. Slide 29: Shift from large to smaller wide-bodies

    Shift from large to smaller wide-bodies 100% 30% of fleet 11% of fleet 747 90% A380 80% 777 70% A340 60% MD11 50% 40% 787 30% A330 A350-900 20% 767 10% A300/A310 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 SOURC

  30. Slide 30: Market summary

    Market summary Market remains resilient, long-term growth continues Single-aisle stays fastest growing segment Wide-body fleet will double Copyright © 2016 Boeing. All rights reserved.

  31. Slide 31: Copyright © 2010 Boeing. All rights reserved.

    Copyright © 2010 Boeing. All rights reserved.

  32. Slide 32: Copyright © 2010 Boeing. All rights reserved. Author, Filename.ppt

    Copyright © 2010 Boeing. All rights reserved. Author, Filename.ppt | 32

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