Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q2 2021 Earnings Presentation
14 slides from Boeing Company (the)'s earnings presentation, Jul 28, 2021
Slide 1: Second-Quarter 2021 Performance Review
Second-Quarter 2021 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Dave Dohnalek Interim Chief Financial Officer July 28, 2021 Copyright © 2021 Boeing. All rights reserved.
Slide 2: Business Update
BUSINESS UPDATE 737 MAX Business Transformation Defense, Space & Global Services • Progress following return to service • Executing on business transformation (as of 7/25/2021) strategy Successful 1st unmanned MQ-25 aerial refueling 130+ Delivered of F/A-18 Since Ungrounding Overhead & Supply Chain
Slide 3: Business Environment
BUSINESS ENVIRONMENT • Stable global demand for our defense, space Commercial operations recovery accelerating, but uneven Regional dynamics impacted by cases, government policy, and market sizes and government services Current flight operations compared to Flight Operations • Commercial recovery ac
Slide 4: Second-Quarter Revenue and Earnings
SECOND-QUARTER REVENUE AND EARNINGS Revenue (Billions) Core Core Earnings (Loss) / Earnings per Share* per Share* $20 $2.00 $17.0 $0.40 $15 $0.00 $11.8 $10 ($2.00) $5 ($4.00) ($4.79) $0 ($6.00) 2020 Q2 2021 Q2 2020 Q2 2021 Q2 * Non-GAAP measure. Additional information is provided in the company’s ea
Slide 5: Commercial Airplanes
COMMERCIAL AIRPLANES • Continued momentum on safely returning the 737 to service Revenues & Operating Margins • Completed 737 MAX 10 first flight $8 $6.0 Revenue (billions) • 787 deliveries remain impacted, focusing resources on $4 530% Margin undelivered airplanes $1.6 ⎻ Temporarily at lower produc
Slide 6: Defense, Space & Security
DEFENSE, SPACE & SECURITY • Captured new and follow-on business Revenues & Operating Margins ⎻ Award for 14 H-47 ER Chinook helicopters for the U.K. Royal Air Force $9 30% Revenue (billions) $6.6 $6.9 ⎻ Germany agreement to purchase 5 P-8A Poseidon aircraft $6 20% Margin 13.9% 9.1% • Executed balanc
Slide 7: Global Services
GLOBAL SERVICES Revenues & Operating Margins • Commercial services recovering from COVID-19 impacts Revenue Comm’l • Outlook for government services remains stable Gov’t $6 40% $4.1 Revenue (billions) • Announced partnership to expand capacity for 737-800 $4 $3.5 13.1% Margin 20% converted freighter
Slide 8: Cash Flow
CASH FLOW Operating Cash Flow (Billions) $0 • Higher commercial deliveries ($0.5) • Higher order receipts ($2) • Lower expenditures on lower wide- body production rates ($4) • Disciplined cash management and business transformation efforts ($5.3) • Timing of receipts and expenditures ($6) 2020 Q2 20
Slide 9: 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 $62.1 $30 $60 $50 $21.9 $21.3 $20 $40 $7.0 $8.2 $30 $10 $20 $14.9 $13.1 $10 $1.6 $1.5 $0 $0 2021 Q1 2021 Q2 2021 Q1 2021 Q2 Stable cash and debt balances; sufficient
Slide 10: Summary
SUMMARY • Environment remains dynamic; recovery accelerating but remains uneven • Key enablers ⎻ Vaccination pace and case rates; passenger traffic recovery ⎻ U.S.-China trade relations ⎻ Remaining 737 MAX regulatory approvals ⎻ Resumption of 787 deliveries • Continuing to take action to: ⎻ Proactiv
Slide 11: Copyright © 2021 Boeing. All rights reserved.
Copyright © 2021 Boeing. All rights reserved.
Slide 12: 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 13: 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 earnings/(loss) per share with the most directly comparable GAAP financial measure diluted earnings/(loss) per share
Slide 14: 737 MAX - Additional Detail
737 MAX - ADDITIONAL DETAIL • Commercial Airplanes produced at abnormally low production rates in 2020 and expects to continue to do so through 2021. As a result, it expects to incur approximately $5 billion of abnormal production costs on a cumulative basis, which are being expensed as incurred • C