Boeing Company (the) · NYSE:BA

Boeing Company (the) — Investor Presentation (June 2015)

28 slides from Boeing Company (the)'s investor presentation, June 2015

  1. Slide 1: 2015 Current Market Outlook

    2015 Current Market Outlook Randy Tinseth Boeing Commercial Airplanes July 2014 Vice President, Marketing 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 .

  2. Slide 2: Agenda

    Agenda Recent market performance, trends 20-year traffic and airplane forecast Product strategy Copyright © 2015 Boeing. All rights reserved.

  3. Slide 3: Global economic growth rate

    Since 2010 Global Passenger Cargo Airlines economic market market managing growth rate resilient, recovering better than below average growing nicely ever before NOTE: Annual growth rates (%) and cumulative profit ($B) Copyright © 2015 Boeing. All rights reserved.

  4. Slide 4: Growth driven by emerging economies

    Growth driven Market Continued New airplanes, by emerging much more strong capabilities economies, diverse, replacement opening new LCCs balanced demand markets Copyright © 2015 Boeing. All rights reserved.

  5. Slide 5: 20-year traffic and airplane forecast

    20-year traffic and airplane forecast Copyright © 2015 Boeing. All rights reserved.

  6. Slide 6: Twenty-year traffic and product forecast

    Twenty-year traffic and product forecast All regions of the world • 185 airlines / groups • 63 traffic flows All jets 30 seats and above • No turbo props • No business jets Freighters Scheduled and nonscheduled flying Copyright © 2015 Boeing. All rights reserved.

  7. Slide 7: Product strategy and forecast inputs

    Product Long-range Suppliers and strategy business plan airline customers Copyright © 2015 Boeing. All rights reserved.

  8. Slide 8: Forecast accuracy versus actual fleet

    Fleet consists of all jet aircraft with at least 90 seats 12,000 Medium-term Accurate 10,000 Actual 8,000 2005 CMO Forecast 6,000 Conservative 4,000 2,000 0 Under-forecasted 2005 - 2014 single-aisles 20,000 Long-term 16,000 Actual Over-forecasted large 12,000 1995 CMO and regional jets Forecast 8,00

  9. Slide 9: Forecast drivers recap

    reca Market Airplane High liberalization capabilities Environment speed rail Airline Fuel Emerging strategies & price markets business models Infrastructure Economic growth 2015-2034 Current Market Outlook Copyright © 2015 Boeing. All rights reserved.

  10. Slide 10: Resilient, growing market expected to continue

    Resilient, growing market expected to continue 5% long-term growth rate 6.0 5.0 Above trend 4.0 RPKs (trillions) since 3.0 2010 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

  11. Slide 11: Macroeconomics, value of service, demand

    Macroeconomics Trade GDP level GDP per capita Labor force Value of service Network structure Infrastructure Business model Regulatory environment Demand Copyright © 2015 Boeing. All rights reserved.

  12. Slide 12: World economy, passenger and cargo traffic growth

    2014 to 2034 World economy 3.1% (GDP) Number of airline 4.0% passengers Airline traffic 4.9% (RPK) Cargo traffic 4.7% (RTK) Copyright © 2015 Boeing. All rights reserved.

  13. Slide 13: Traffic growth, passengers and airplanes

    ~6% traffic growth +180 million +900 more airplanes (RPKs) passengers (passenger) SOURCE: IATA and BCA Analysis Copyright © 2015 Boeing. All rights reserved.

  14. Slide 14: Market fragmentation drives growth

    Market fragmentation drives growth 2.5 Air Travel Growth Frequency Growth Nonstop 2.0 Markets World 1.5 1.0 Average Airplane Size 0.5 SOURCE: August OAG Index 1994=1.00 Copyright © 2015 Boeing. All rights reserved.

  15. Slide 15: It's what passengers want, not bigger airplanes

    It’s what passengers want, not bigger airplanes 14% New direct routes 78% 8% Additional Larger airplane frequencies size on existing routes Copyright © 2015 Boeing. All rights reserved.

  16. Slide 16: New airplane deliveries by region

    Airplane deliveries: 38,050 New airplane deliveries by region 2015 - 2034 2015 - 2034 30,000 Region Airplanes 26,730 25,000 Asia 14,330 3% North America 7,890 8% 3% 20,000 Europe 7,310 8% 38% 15,000 10,000 Middle East 3,180 38,050 4,770 Latin America 3,020 19% 5,000 2,490 3,520 540 Africa 1,170 0 21

  17. Slide 17: New airplane values by region

    Airplane deliveries: $5.6 trillion New airplane values by region 2015 - 2034 2015 - 2034 3,000 Region Airplanes $2,770B 2,500 Asia $2,200B 3% 6% 3% 2,000 North America $940B 1,500 Europe $1,050B 13% 39% $1,250B $1,220B 1,000 Middle East $730B $5.6T Latin America $350B 500 $100B 19% $230B Africa $160

  18. Slide 18: Global fleet will double

    Global fleet will double Units 45,000 43,560 40,000 35,000 21,960 30,000 Growth 58% 25,000 38,050 21,600 20,000 16,090 15,000 Replacement 42% 10,000 5,000 5,510 0 Retained fleet 2014 2034 Copyright © 2015 Boeing. All rights reserved.

  19. Slide 19: Western jets retired

    Western jets retired with >90 seats, excluding hull losses 700 Widebody 600 Single-aisle 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SOURCE: Flight Global Ascend Copyright © 2015 Boeing. All rights reserved.

  20. Slide 20: Fleet mix 2014 and 2034

    2034 2014 2% 9% 6% 3% Regional jet 8% 12% 13% 11% Single-aisle 21,600 43,560 Small wide-body airplanes airplanes Medium wide-body Large wide-body 70% 65% SOURCE: Ascend & Boeing CMO Copyright © 2015 Boeing. All rights reserved.

  21. Slide 21: Air cargo market

    Air cargo market Year-over-year RTK growth 6% 5% 4% 3% 2% 1% 0% -1% -2% 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 SOURCE: IATA Carrier Tracker (industry international scheduled freight) and A4A US domestic cargo traffic Copyright © 2015 Boeing. All rights reserved.

  22. Slide 22: New freighter deliveries and market value

    New freighter deliveries: 920 Market value: $290 billion 2015–2034 2015–2034 700 650 250 $230B 600 200 Market value 500 Airplane units 400 150 300 270 100 200 $60B 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

  23. Slide 23: Freighter fleet share and deliveries

    Share of fleet Delivery units 100% 80% Large production 650 >80 tonnes 60% Wide-body conversions 40-120 tonnes 1,020 2,340 40% Medium wide-body production 40-80 tonnes 400 20% Standard-body conversions <45 tonnes 270 0% 2014 2034 2015 to 2034 Freighters Freighters Freighters 1,720 2,930 Copyright ©

  24. Slide 24: Product strategy

    Product strategy Copyright © 2015 Boeing. All rights reserved.

  25. Slide 25: Superior value, efficient market coverage

    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 200 737 MAX 200 200 737 MAX 9 737-900ER 737-800 737 MAX 8 150 150 737-700 737 MAX

  26. Slide 26: Backlog by value and region

    Backlog by value ($B) 747 Leasing, 777 Large Gov't & North 1% America BBJ Backlog = 5,715 aircraft L. Single- ME, America & Africa Aisle 737 Central Region Model 45% & S. Asia Asia Value = $435 billion Twin- Aisle Pacific 54% Europe China, & East & Russia SE Asia 787 767 Copyright © 2015 Boeing. All

  27. Slide 27: Things to remember

    Things to remember Strong, growing market being driven by expansion Single-aisle fuelling forecast Boeing product strategy is right for today and the future Copyright © 2015 Boeing. All rights reserved.

  28. Slide 28: For more information, visit CMO website

    For more information, please visit our CMO website: http://www.boeing.com/cmo Copyright © 2015 Boeing. All rights reserved.

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