Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q2 2020 Earnings Presentation
14 slides from Boeing Company (the)'s earnings presentation, Jul 29, 2020
Slide 1: Second-Quarter 2020 Performance Review
Second-Quarter 2020 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Greg Smith Executive Vice President Enterprise Operations, Chief Financial Officer and interim leader of Communications July 29, 2020 Copyright © 2020 Boeing. All rights reserved.
Slide 2: Our Focus
OUR FOCUS Strengthening our Culture; Partnering with Improving Performance Supporting our Workforce Customers and Suppliers and Transforming our and Communities to Navigate Uncertainty Business for the Future Meeting our Commitments and Delivering on our Priorities Positioning to recover from COVID-
Slide 3: Business Environment
BUSINESS ENVIRONMENT • Stable global demand for our defense, DAILY OPERATIONS 2020 YTD Global Passenger Flights ACTIVE FLEET TREND 2020 YTD Global Fleet Status space and government services 100K 25k • COVID-19 creating unprecedented shock in 80K 20k demand for air travel Parked 60K 15k • Recovery st
Slide 4: Commercial Airplane Production Rates
COMMERCIAL AIRPLANE PRODUCTION RATES 787 777 / 737 767 747 777X 10 Slower than planned production No Change to Current Rate at this Time rate ramp 6 Gradual increase to 5 31 per month by the beginning of 2022 3 3 0.5 0.5 PER MO. PER MO. PER MO. 2 PER MO. with further gradual PER MO. PER MO. PER MO.
Slide 5: Second-Quarter Revenue and Earnings
SECOND-QUARTER REVENUE AND EARNINGS Revenue (Billions) Core CoreEarnings Loss perper Share Share* * $20 $0.00 $15.8 $15 ($2.00) $11.8 $10 ($4.00) ($4.79) $5 ($6.00) ($5.82) $0 ($8.00) 2019 Q2 2020 Q2 2019 Q2 2020 Q2 * Non-GAAP measure. Additional information is provided in the company’s earnings pre
Slide 6: Commercial Airplanes
COMMERCIAL AIRPLANES • Financial results significantly impacted by Revenues & Operating Margins COVID-19 and 737 MAX grounding • Restarted operations across production facilities in the quarter $4.7 and resumed early stages of 737 production in May Revenue (billions) $4 Margin $1.6 • Adjusting produ
Slide 7: Defense, Space & Security
DEFENSE, SPACE & SECURITY • Captured new and follow-on business Revenues & Operating Margins • Award for 3 additional MQ-25 unmanned aerial refueling aircraft for the U.S. Navy • Contracts for Cruise Missile Systems for the U.S. Navy $8 $6.6 $6.6 20% Revenue (billions) • Contract for 24 AH-64E Apach
Slide 8: Global Services
GLOBAL SERVICES • Financial results significantly impacted by COVID-19 Revenues & Operating Margins • Lower volume across the commercial portfolio $4.5 • Booked asset impairments and severance costs (~$0.9B) $4 $3.5 Revenue (billions) $3 • Outlook for government services remains stable 60% Margin $2
Slide 9: Cash Flow
CASH FLOW Operating Cash Flow (Billions) $0 • COVID-19 caused delivery and production disruption ($0.6) • Lower commercial airplane ($2) delivery, advance payments and commercial services ($4) • Timing of receipts and expenditures ($5.3) ($6) 2019 Q2 2020 Q2 • Disciplined cash management Cash genera
Slide 10: 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 $30 $60 $50 $20.0 $20 $40 $36.9 $15.5 $30 $10 $20 $15.0 $12.4 $10 $2.0 $1.9 $0 $0.5 $0 2020 Q1 2020 Q2 2020 Q1 2020 Q2 Focused on proactively managing liquidity
Slide 11: Taking Actions to Position for the Future
TAKING ACTIONS TO POSITION FOR THE FUTURE • Navigating through dynamic environment; constantly assessing business impact • Managing liquidity to bridge to recovery • Suspended dividend and terminated share repurchase program • Raised additional debt to bolster liquidity • Disciplined cash management
Slide 12: Copyright © 2020 Boeing. All rights reserved.
Copyright © 2020 Boeing. All rights reserved.
Slide 13: 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 14: 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 per share with the most directly comparable GAAP financial measure diluted loss per share. See page 6 of the co