Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q4 2019 Earnings Presentation
15 slides from Boeing Company (the)'s earnings presentation, Jan 29, 2020
Slide 1: Fourth-Quarter 2019 Performance Review
Fourth-Quarter 2019 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Greg Smith Chief Financial Officer Executive Vice President of Enterprise Performance & Strategy INVESTOR RELATIONS January 29, 2020 Copyright © 2020 Boeing. All rights reserved.
Slide 2: 2020 Priorities
BOEING 2020 PRIORITIES INVESTOR RELATIONS RETURN THE REBUILD FOCUS 737 MAX TO TRUST ON OUR SERVICE SAFELY VALUES OPERATE RESTORE INVEST WITH PRODUCTION IN OUR EXCELLENCE HEALTH FUTURE Copyright © 2020 Boeing. All rights reserved. Primary focus remains 737 MAX safe return to service 2
Slide 3: Business Environment
BOEING BUSINESS ENVIRONMENT INVESTOR RELATIONS Strong and Growing Markets 10-Year Served Market • Commercial aviation remains long-term growth industry Defense Commercial & Space ⎻ 20-year Commercial Market Outlook of 44,040 airplanes Airplanes Systems • Healthy airline industry profitability, resil
Slide 4: Full Year Financial Results
BOEING FULL YEAR FINANCIAL RESULTS INVESTOR RELATIONS Revenue (Billions) Core Earnings/(Loss) per Share* Operating Cash Flow (Billions) $105 $101.1 $20.00 $16 $15.3 $16.01 $90 $15.00 $12 $76.6 $75 $10.00 $8 $60 $45 $5.00 $4 $30 $0.00 $0 $15 ($3.47) ($2.4) $0 ($5.00) -$4 2018 2019 2018 2019 2018 2019
Slide 5: Fourth-Quarter Revenue and Earnings
BOEING FOURTH-QUARTER REVENUE AND EARNINGS INVESTOR RELATIONS Revenue (Billions) CoreCore Earnings perper Earnings/(Loss) Share* Share* $30 $28.3 $6.00 $5.48 $24 $4.00 $17.9 $18 $2.00 $12 $0.00 $6 ($2.00) ($2.33) $0 ($4.00) 2018 Q4 2019 Q4 2018 Q4 2019 Q4 * Non-GAAP measure. Additional information i
Slide 6: MAX
BOEING 737 MAX INVESTOR RELATIONS • 737 MAX production suspended temporarily, beginning in January • Results reflect updated production plan and delivery assumptions ⎻ Recorded lower BCA revenue, operating earnings and cash flow ⎻ Included $2.6B additional costs to produce aircraft in the 737 progra
Slide 7: Commercial Airplanes
BOEING COMMERCIAL AIRPLANES INVESTOR RELATIONS Revenues & Operating Margins • Financial results significantly impacted by 737 MAX grounding and production $16.5 20% $15 Revenue (billions) 15.7% • Delivered 79 airplanes, including 45 787s 0% Margin $10 $7.5 • Backlog of $377B $5 (20%) (38.1%) $0 (40%
Slide 8: Defense, Space & Security
BOEING DEFENSE, SPACE & SECURITY INVESTOR RELATIONS • Captured new and follow-on business; Revenues & Operating Margins well positioned for the future ⎻ Award for 10 Space Launch System core stages and $8 $6.9 15% up to 8 Exploration Upper Stages $6.0 Revenue (billions) $6 10% 11.2% Margin ⎻ Contrac
Slide 9: Global Services
BOEING GLOBAL SERVICES INVESTOR RELATIONS • Captured new and follow-on business Revenues & Operating Margins ⎻ Awarded V-22 support contracts for U.S. and Japan $6 30% ⎻ Received AH-64/CH-47 Global Support contract for the U.S. Army $4.9 $4.6 Revenue (billions) $4 20% Margin ⎻ Signed multiyear Landi
Slide 10: Cash Flow
BOEING CASH FLOW INVESTOR RELATIONS Operating Cash Flow (Billions) • Lower 737 delivery and $15.3 advance payments, $15 while continuing to produce $10 and store aircraft • Disciplined cash management $5 $2.9 • Timing of receipts and $0 expenditures ($2.2) ($2.4) ($5) 2018 Q4 2019 Q4 2018 2019 Copyr
Slide 11: Cash and Debt Balances
BOEING CASH AND DEBT BALANCES INVESTOR RELATIONS Cash S&P: A- Boeing debt Billions Marketable Securities Billions Moody’s: A3 Fitch: A- BCC debt $30 $30 $25.3 $25 $25 $22.8 $20 $20 $15 $15 $10.9 $10.0 $10 $10 $5 $9.8 $9.5 $5 $1.9 $2.0 $0 $1.1 $0.5 $0 2019 Q3 2019 Q4 2019 Q3 2019 Q4 Copyright © 2020
Slide 12: Copyright © 2020 Boeing. All rights reserved.
Copyright © 2020 Boeing. All rights reserved.
Slide 13: Caution Concerning Forward-Looking Statements
BOEING CAUTION CONCERNING FORWARD-LOOKING STATEMENTS INVESTOR RELATIONS 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,” “
Slide 14: Non-GAAP Measure Disclosure
BOEING NON-GAAP MEASURE DISCLOSURE INVESTOR RELATIONS The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core (loss)/earnings per share with the most directly comparable GAAP financial measure diluted
Slide 15: Non-GAAP Measure Disclosure
BOEING NON-GAAP MEASURE DISCLOSURE INVESTOR RELATIONS The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core (loss)/earnings per share with the most directly comparable GAAP financial measure diluted