Slide 1: Fourth-Quarter 2017 Performance Review
Fourth-Quarter 2017 Performance Review Dennis Muilenburg Chairman, President and Chief Executive Officer Greg Smith Chief Financial Officer Executive Vice President of Enterprise Performance & Strategy January 31, 2018 Copyright © 2018 Boeing. All rights reserved.
Slide 2: 2017 Summary
2017 Summary Boeing | Investor Relations Generated record earnings & operating cash flow; strong revenue 4Q17 BCA Backlog Repurchased $9.2B of shares; paid $3.4B in dividends Other North America Delivered record 763 commercial airplanes, including 74 737 MAXs; 5,864 Airplanes in delivery leade
Slide 3: Business Environment
Business Environment Boeing | Investor Relations 2017 Current Market Outlook Commercial aviation remains long-term growth industry Regional Freighters jets Single aisle Medium / Large widebody Robust airline profitability and passenger traffic Small widebody 41,030 New airplanes Strong narrowb
Slide 4: Full Year Financial Results
Full Year Financial Results Boeing | Investor Relations * Operating Cash Flow Revenue Core Earnings per Share (Billions) (Billions) $12.50 $12.04 $15 Tax Cuts $13.3 $100 $94.6 $93.4 and Jobs Act ($1.74) $13 $10.00 $10.5 $75 $10 $7.24 $7.50 $8 $50 $5.00 $5 $25 $2.50 $3 $0 $0.00 $0 2016 2017 2016 2017
Slide 5: Fourth-Quarter Revenue and Earnings
Fourth-Quarter Revenue and Earnings Boeing | Investor Relations Revenue (Billions) Core Earnings per Share * $30 $5.00 $4.80 $25.4 $4.50 Tax Cuts $25 $23.3 and Jobs $4.00 Act ($1.74) $3.50 $20 $3.00 $2.47 $15 $2.50 $2.00 $10 $1.50 $1.00 $5 $0.50 $0 $0.00 2016 Q4 2017 Q4 2016 Q4 2017 Q4 * Non-GAAP me
Slide 6: Commercial Airplanes
Commercial Airplanes Boeing | Investor Relations Revenues & Operating Margins Delivered record 209 airplanes $20 20% Revenue (billions) $14.4 $15.5 – Included 44 737 MAX 8 deliveries $15 15% Margin $10 10% 11.5% Won 414 net orders $5 8.3% 5% $0 0% – Orders valued at $25B; robust backlog of $421B
Slide 7: Defense, Space & Security
Defense, Space & Security Boeing | Investor Relations Revenues & Operating Margins Captured new and follow-on business 20% $5.5 Revenue (billions) $6 $5.3 – Contract with USAF to provide 36 F-15 aircraft to Qatar 15% Margin $4 10% 9.9% 10.0% – Awarded first international order for KC-46 Tanker $2
Slide 8: Global Services
Global Services Boeing | Investor Relations Revenues & Operating Margins Strong topline growth and operational execution 30% $5 $4.0 Revenue (billions) $3.4 Captured new and follow-on business 20% Margin $3 16.6% 15.4% 10% $2 – Awarded F-15 Qatar Sustainment contract $0 0% 2016 Q4 2017 Q4 – Capt
Slide 9: Cash Flow
Cash Flow Boeing | Investor Relations Operating Cash Flow (Billions) $15 $13.3 Increasing production rates $10.5 $10 Productivity improvements Working Capital focus $5 $2.8 $2.9 Disciplined cash management $0 2016 Q4 2017 Q4 2016 2017 Execution driving growing cash flow 9 Copyright © 2018 Bo
Slide 10: Cash Deployment
Cash Deployment Boeing | Investor Relations 2013 - 2017 Increased dividend per share more than 250% Research & Repurchased over 205 million shares Development Share Funded key investments Repurchases Capital Production rate and productivity Expenditures New product development (737 MAX, 78
Slide 11: Cash and Debt Balances
Cash and Debt Balances Boeing | Investor Relations S&P: A Boeing debt Cash Moody’s: A2 Marketable Securities Fitch: A BCC debt Billions Billions $12 $12 $10.0 $10.0 $9 $9 $8.6 $7.8 $6 8.6 8.8 $6 $3 $3.0 $3 $2.5 1.4 1.2 $0 $0 2017 Q3 2017 Q4 2017 Q3 2017 Q4 Strong liquidity with manageable debt level
Slide 12: Financial Guidance
Financial Guidance Boeing | Investor Relations Restated 2017(1) 2018 Revenue $94.0B $96.0 – 98.0B Core EPS * $12.33 $13.80 – 14.00 Operating Cash Flow $13.3B ~$15.0B Capital Expenditures $1.7B ~$2.2B * Non-GAAP measures. Definitions, reconciliations, and further disclosures regarding this non-GAAP m
Slide 13: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements Boeing | 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: Copyright © 2018 Boeing. All rights reserved.
Copyright © 2018 Boeing. All rights reserved.
Slide 15: Non-GAAP Measure Disclosure
Non-GAAP Measure Disclosure Boeing | Investor Relations The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core earnings per share with the most directly comparable GAAP financial measure diluted earn
Slide 16: Non-GAAP Measure Disclosure - Restated
Non-GAAP Measure Disclosure - Restated Boeing | Investor Relations The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures - Restated (Unaudited) The table provided below reconciles the non-GAAP financial measure core earnings per share with the most directly comparable GAAP financia