Welcome to this lecture from the Insurance Institute of London

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Brett Day
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Welcome to this lecture from the Insurance Institute of London CII CPD event accredited - demonstrates the quality of an event and that it meets CII/PFS member CPD scheme requirements.

1 Welcome to this lecture from the Insurance Institute of London CII CPD event accredited - demonstrates the quality of an event and that it meets CII/PFS member CPD scheme requirements. This lecture and podcast count as 45 minutes of CPD and can be included as part of your CPD requirement should you consider it relevant to your professional development needs. It is recommended that you keep any evidence of the CPD activity you have completed and upload copies to the recording tool as the CII may ask to see this if your record is selected for review.

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3 Agenda a 50,000 foot view of Boeing The importance of air travel The pent-up demand (backlog) The future outlook Product line-up & competition Boeing company priorities & focus Boeing Risk Management goals and philosophy for hazard risk & insurance 3

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7 The Importance of Air Travel According to the International Air Transportation Association (IATA), 1/3 of all world trade value, travels by air 3.5B passenger trips will be taken in 2015, 100,000 passenger aircraft flights each day Aviation employs around 58 million people worldwide Air travel has become much more affordable over the past 37 years vs Walt Disney World (One Day Pass, Adult) $6.50 $ % National Football League Game (Ticket) $9.67 $ % New Vehicle $6,470 $31, % New Single-Family Home $55,700 $265, % Movie Ticket $2.34 $ % Air Travel (R/T Domestic Fare) $ $ % 7

8 The Boeing Company 8

9 The Boeing Company 9

10 The Boeing Company 10

11 Backlog ~5,789 Commercial Airplanes Backlog By Model Single- Aisle 46% 747 Large 2% Model by value 767 Twin- Aisle 52% 777 4,299 Execution Risks, including Raw material Supply chain Labor - Workforce Customer viability Financing availability Geopolitical influences ME, Central & S. Asia Leasing & Gov't North America Americas Region 787 L. America & Africa Asia Europe China, Pacific Asia East & Pacific SE Asia 11

12 Robust Market Opportunity ( Outlook) 36,770 new airplanes valued at $5.2 trillion 12

13 Seats Seats Boeing product line-up vs. the competition 600 Airbus Boeing A X A X A A A A A321neo 737 MAX A320neo 737 MAX A319neo 737 MAX

14 Increasingly Competitive Landscape Updated: 02/01/2010 Large 400+ Seats Twin-Aisle Seats A350 Single-Aisle Seats Russian MS-21 Embraer 2XX Chinese C919 Small Single-Aisle Seats Bombardier CSeries Bombardier CRJ1000 Embraer 190/195 Russian (Sukhoi) SSJ 110/120 Regional Seats Japanese (MHI) MRJ Bombardier CRJ 700/900 Embraer 170/175 Russian (Sukhoi) Superjet 100 Chinese (AVIC1) ARJ21 14

15 Video Segment 15

16 Build Something Better Doing Things Right Doing The Right Things 16

17 Build Something Better Breaking the Development Cost Curve Developing our teams Creating the value to win Driving productivity, quality and reliability Partnering for Success 17

Boeing Risk Management & Insurance Financial smoothing for Hazard

in risk assessment Assist business units in continuity planning &

Procure and manage all commercial (re)insurance Claim direction and

19 Boeing Risk Management & Insurance Financial smoothing for Hazard Risks Contractual risk allocation and insurance Assist business units in risk assessment Assist business units in continuity planning & recovery Conduct hazard risk cost allocation Manage two captives Procure and manage all commercial (re)insurance Claim direction and resolution Not risk adverse, but rather, risk controlled and volatility adverse 19

20 Approach and philosophy Retain risk where modelled outcome in narrow range Maintain consistent approach / communication Develop long term partnerships Develop multi-line engagements Dovetail coverage to risk needs and appetite Match risk transfer with insurer business models Avoid immature/volatile products &/or markets Purchase cover on most efficient basis - cost of capital Monitor Boeing exposure to (re)insurer Track market loss impact on (re)insurer, business trends, (re)insurer efficiency and results, staff retention, internal risk controls Gravitate towards (re)insurers who best match Boeing goals 20

21 WANTED. Financially independent, mature and stable company with broad interests, many children and a global mindset, seeks similarly minded partner(s) for long-term mutually successful relationship(s) 21

22 Video Segment 22

23 Together let s Build Something Better. 23

Feedback Please take a moment to complete this feedback form. Your comments will enable us to ensure that future CPD activities satisfy the needs and objectives of our members.

25 Feedback Please take a moment to complete this feedback form. Your comments will enable us to ensure that future CPD activities satisfy the needs and objectives of our members. Every entry will be put in a draw to win two free tickets to one of our most prestigious events such as the President s Lunch at Mansion House or our Black Tie Ball or Young Members Event. Scan this QR code with the QR reader on your phone to access the survey.

Boeing Commercial Airplanes

May 2014 Investor Conference Boeing Commercial Airplanes Ray Conner President and Chief Executive Officer Boeing Vice Chairman May 21, 2014 Boeing Commercial Airplanes Strong operating performance Record