Boeing Company (the) · NYSE:BA

Boeing Company (the) — Investor Presentation (July 2014)

33 slides from Boeing Company (the)'s investor presentation, July 2014

  1. Slide 1: Boeing Commercial Airplanes July 2014

    Boeing Commercial Airplanes July 2014 The statements contained herein are based on good faith assumptions and are to be used for general information purposes only. These statements do not constitute an offer, promise, warranty or guarantee of performance. July 2014 Copyright © 2014 Boeing. All right

  2. Slide 2: Twenty-year traffic and product forecast

    Twenty-year traffic and product forecast All regions of the world • 169 airlines / groups • 63 traffic flows All jets 30 seats and above • No turbo props • No business jets Freighters Scheduled and nonscheduled flying Copyright © 2014 Boeing. All rights reserved.

  3. Slide 3: Product strategy, long-range business plan, suppliers and airline customers

    Product Long-range Suppliers and strategy business plan airline customers Copyright © 2014 Boeing. All rights reserved.

  4. Slide 4: Fleet consists of all jet aircraft with at least 90 seats

    Fleet consists of all jet aircraft with at least 90 seats 10,000 Medium-term Accurate Actual 8,000 2004 CMO 6,000 Forecast Conservative 4,000 2,000 0 Under-forecasted 2004-2013 single-aisles 20,000 Long-term 16,000 Actual Over-forecasted large 12,000 1994 CMO and regional jets Forecast 8,000 4,000 0

  5. Slide 5: What's trending in aviation?

    Agenda What’s trending in aviation? 20-year traffic and airplane forecast Product strategy & development Copyright © 2014 Boeing. All rights reserved.

  6. Slide 6: What's trending in aviation?

    What’s trending in aviation? Strong, resilient, Passengers flying Single-aisle is fastest growing market where they want growing, most expected to continue when they want dynamic segment Copyright © 2014 Boeing. All rights reserved.

  7. Slide 7: 4,000 new markets; low cost carrier will continue fast growth

    4,000 new markets Low cost carrier will Versatility drives continue fast growth growth Copyright © 2014 Boeing. All rights reserved.

  8. Slide 8: >75% of recent deliveries and orders in medium-size space

    Single-aisle backlog and forecast >75% of recent deliveries and orders in medium-size Large S-A space • Versatile and flexible for expansion and frequency 79% • Efficient across market 76% 70-75% spectrum with lower risk Market focus will remain in Small S-A this size space (737 MAX 8) 2010-2013 Ord

  9. Slide 9: 737 MAX 8 average number of seats

    Average number of seats last 15 years Flexibility More markets More frequency Passenger preference 170 737 MAX 8 160 2,000-3,000 nmi 150 seats Efficiency Unit cost Fuel per seat LCC growth 2000 2002 2004 2006 2008 2010 2012 2014 SOURCE: Ascend, single-aisle airplanes excluding regional jets and prop

  10. Slide 10: 20-year traffic and airplane forecast

    20-year traffic and airplane forecast Copyright © 2014 Boeing. All rights reserved.

  11. Slide 11: Current Market Outlook 2014-2033 drivers

    reca Market Airplane High liberalization capabilities Environment speed rail Airline Fuel Emerging strategies & price markets business models Economic Infrastructure growth Current Market Outlook 2014-2033 Copyright © 2014 Boeing. All rights reserved.

  12. Slide 12: Resilient, growing market expected to continue

    Resilient, growing market expected to continue RPKs (trillions) 6.0 4 recessions 2 financial crises 5.0 2 Gulf wars 1 oil shock 4.0 1 near pandemic (SARS) 9/11 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

  13. Slide 13: Macroeconomics, value of service, demand

    Macroeconomics Trade GDP level GDP per capita Labor force Value of service Network structure Infrastructure Business model Type of service Regulatory environment Demand Copyright © 2014 Boeing. All rights reserved.

  14. Slide 14: World economy (GDP) growth 2013 to 2033

    2013 to 2033 World economy 3.2% (GDP) Number of airline 4.2% passengers Airline traffic 5.0% (RPK) Cargo traffic 4.7% (RTK) Copyright © 2014 Boeing. All rights reserved.

  15. Slide 15: World air travel growth

    World 2.5 Air Travel Growth Frequency Growth 2.0 Nonstop Markets 1.5 Average 1.0 Airplane Size 0.5 SOURCE: August OAG Index 1993=1.00 Copyright © 2014 Boeing. All rights reserved.

  16. Slide 16: 787 Dreamliner opening new markets around the world

    787 Dreamliner opening new markets around the world As of June 30, 2014 Current new nonstop routes flown with the 787: Delhi-Birmingham (AI) Houston-Lagos (UA) Tokyo-San Jose (NH) Stockholm-Fort Lauderdale (DY) Delhi-Melbourne (AI) Tokyo-San Diego (JL) Addis Ababa-Dulles (ET) Stockholm-Bangkok (DY)

  17. Slide 17: They've been telling it for 15 years and still... nothing

    They’ve been telling it for 15 years and still… nothing SOURCE: Airbus Annual Press Conference, 13 January 2014 Copyright © 2014 Boeing. All rights reserved.

  18. Slide 18: Top 25 long-haul airports

    Top 25 long-haul airports 2000 2014 +58% +60% +46% -2% 304 299 Capacity Frequency Cities served Seats per flight SOURCE: Industry schedules Copyright © 2014 Boeing. All rights reserved.

  19. Slide 19: Airplane deliveries: 36,770 Market value: $5.2T

    Airplane deliveries: 36,770 Market value: $5.2T 2014 - 2033 2014 - 2033 30,000 3,000 25,680 $2,560B 25,000 2,500 20,000 2,000 15,000 1,500 $1,140B $1,160B 10,000 1,000 5,000 4,520 3,460 500 2,490 $240B 620 $100B 0 0 Regional Single- Small Medium Large Regional Single- Small Medium Large jets aisle w

  20. Slide 20: Units: growth and replacement

    Units 45,000 42,180 40,000 35,000 21,270 30,000 Growth 58% 25,000 36,770 20,910 20,000 15,500 15,000 Replacement 10,000 42% 5,000 5,410 0 Retained fleet 2013 2033 Copyright © 2014 Boeing. All rights reserved.

  21. Slide 21: Annual GDP growth, 2013-2033

    Annual GDP growth, 2013 – 2033 South Asia 6.5 China 6.2 Southeast Asia 4.7 Africa 4.7 Asia Pacific 4.4 Latin America 3.9 Middle East 3.8 CIS 3.3 World 3.2 Oceania 2.7 North America 2.5 Europe 1.9 Northeast Asia 1.5 SOURCE: IHS Economics Copyright © 2014 Boeing. All rights reserved.

  22. Slide 22: RPKs by traffic flow

    RPKs, billions Added traffic Annual 2013 traffic 2014-2033 growth % Within Asia Pacific* 6.3% Within China 6.6% Within North America 2.3% Within Europe 3.5% Middle East - Asia Pacific 7.4% Europe - Asia Pacific 5.3% North Atlantic 3.1% World Within Latin America 6.9% Average Trans-Pacific 4.3% Growt

  23. Slide 23: New airplane deliveries and market value by region

    New airplane deliveries by region Market value by region 2014–2033 2014–2033 Region Airplanes Region $B 3% 3% Asia Pacific 13,460 Asia Pacific 2,020 8% 3% 7% 3% Europe 7,450 Europe 1,040 8% 37% 12% North America 7,550 North America 870 39% Middle East 2,950 36,770 Middle East 640 $5.2T Latin America

  24. Slide 24: RTKs (billions)

    RTKs = Revenue Tonne Kilometers 250 200 RTKs (billions) 150 100 50 0 1980 1984 1988 1992 1996 2000 2004 2008 2012 Copyright © 2014 Boeing. All rights reserved.

  25. Slide 25: Freighter share of fleet and delivery units

    Share of fleet Delivery units 100% 80% Large production 590 >80 tonnes 60% Wide-body conversions 960 40-120 tonnes 2,170 40% Medium wide-body production 40-80 tonnes 370 20% Standard-body conversions <45 tonnes 250 0% 2013 2033 2014 to 2033 Freighters Freighters Freighters 1,690 2,730 Copyright © 20

  26. Slide 26: New freighter deliveries: market value $240 billion

    New freighter deliveries: 840 Market value: $240 billion 2014–2033 2014–2033 700 250 590 600 200 $190B Market value 500 Airplane units 400 150 300 250 100 200 $50B 50 100 0 $0B 0 0 Large Medium Standard Large Medium Standard >80 tonnes 40-80 tonnes <45 tonnes >80 tonnes 40-80 tonnes <45 tonnes 70% 3

  27. Slide 27: Product strategy & development

    Product strategy & development Copyright © 2014 Boeing. All rights reserved.

  28. Slide 28: More value to our customers in all markets

    More value to our customers in all markets Efficiency designed-in from the start Environmental performance Passenger experience Long-range, fast, reliable Low operating cost Operational commonality Standardization Copyright © 2014 Boeing. All rights reserved.

  29. Slide 29: Backlog ($B) by model and region

    374 374 350 747 Backlog ($B) 319 777 Large 2% 300 295 Single- Aisle 737 256 Model 46% 250 Twin- Aisle 52% 787 200 767 150 Leasing, Gov't & North BBJ America 100 ME, Central & L. S. Asia Region America & Africa 50 Europe Asia & Pacific Russia China, East & 0 SE Asia 2010 2011 2012 2013 1Q14 Copyright

  30. Slide 30: Superior value, efficient market coverage: current and future Boeing

    Superior value, efficient market coverage Current Boeing Future Boeing 500 500 747-8 747-8 450 450 777-9X 400 400 777-300ER 777-8X 350 350 Seats Seats 787-10 777-200ER 300 300 787-9 787-9 250 250 787-8 787-8 767-300ER 200 200 737 MAX 9 737-900ER 737-800 737 MAX 8 150 150 737-700 737 MAX 7 100 100 Co

  31. Slide 31: Superior value, efficient market coverage vs Airbus

    Superior value, efficient market coverage 600 Airbus Future Boeing 600 A380 550 550 500 500 747-8 450 450 777-9X 400 400 Seats Seats 777-8X 350 350 A350-1000 787-10 300 A350-900 300 787-9 A330-300 250 A350-800 250 A330-200 787-8 200 200 A321neo 737 MAX 9 A320neo 737 MAX 8 150 150 A319neo 737 MAX 7 1

  32. Slide 32: Things to remember

    Things to remember Strong, growing market being driven by customers flying where they want, when they want Single-aisle -- fastest growing and most dynamic segment -- fueling forecast With the most comprehensive widebody lineup in the industry, Boeing will be able to meet customers’ needs now and in

  33. Slide 33: For more information, please visit our CMO website

    For more information, please visit our CMO website: http://www.boeing.com/cmo You can also visit my blog, Randy’s Journal: http://boeingblogs.com/randy/ Copyright © 2014 Boeing. All rights reserved.

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