May 2016 Investor Conference Boeing Defense, Space & Security Leanne Caret President and CEO, Boeing Defense, Space & Security May 11, 2016 1
Environment Return to budget growth 600 US DoD Base Budget U.S. Strong support for Boeing solutions Acquisition reform favorable to industry Non-traditional & disruptive competitors 550 500 450 400 350 International Regional threats diverse and growing Foreign policy aligning against common threats Opportunities exist, timing & funding uncertain Presence & partnerships more essential 300 140 120 100 80 60 40 20 0 Addressing an evolving global environment FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Source: USG DoD Budgets Market Served 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Boeing global market fact based analysis 2
Backlog Diversification Defense & Space Total Backlog stable $62B $58B Business Mix more balanced Global Services & Support Geographic Mix more diverse Other Europe Middle East Asia Network & Space Systems Americas Europe Boeing Military Aircraft Americas 2000 2015 2000 2015 Backlog more balanced and diverse 2000 2015 3
10 year $3T market Evolve Robust Core Advanced Weapons Win New Franchises Expand Global Services Evolving, winning, and expanding for long-term growth 4
Strategy Market Leader in a Diverse Portfolio Healthy, cost-competitive business Differentiated, capabilities-based Globally differentiated through depth and scale Best team and talent across industry One Boeing expertise delivering superior customer solutions 5
Growing Boeing s Services Business Strategy Leverage expansive installed base Capitalize on company-to-country strategies Pivot back to U.S. Integrate data analytics Leverage One Boeing opportunities Results Record orders THE SERVICES STRATEGY PLAYBOOK Extend Innovate Grow Off-platform success Industry-leading margins Returning value to customers and shareholders 6
Investing for Growth Invest to expand, differentiate, reduce cost Focused opportunity development and capture Evolve next generation support solutions Business Capture $0.9B (2016 Guidance) R&D Future Franchises Product Enhancements Additive Manufacturing Advanced Materials Global presence Connect Protect Explore Inspire Positioning for profitable growth 7
Development Update KC-46A Pegasus Four aircraft in active Flight Test ~ 630 flight hours complete Successfully completed fuel transfer on multiple platforms Anticipate Milestone C decision 2Q16 CST-100 Starliner (Commercial Crew) Firm configuration completed Structural test article build near completion test initiation 3Q16 First flight spacecraft build initiation 2Q16 Space Launch System Production at Michoud Assembly Facility on plan Critical Design Reviews completed NASA release of sole source RFP for Exploration Upper Stage Progressing to meet customer commitments 8
Increased Focus on Margin Expansion 10.2% Double Digit Mid Teens Key Drivers / Areas of Focus Supply chain efficiencies First-time production quality Development efficiency Internal cost optimization Competitive landscape Geopolitical environment 2013-2015 Near-term Focus Aspirational Goal Aggressively driving productivity to expand margins 9
Our Approach Drive Innovation and Growth through robust investment and franchise wins Improve bottom line through Performance and Productivity initiatives Deliver results with the Best Team and Talent The aerospace leader and enduring global industrial champion 10