Copyright 2014 Boeing. All rights reserved. 1

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1 Business Environment and Supply Chain Jill Christenson Senior Manager, Strategy and Strategic Sourcing, Supplier Management, Aircraft Materials and Structures Boeing Commercial Airplanes April 14, 2016 The statements contained herein are based on good faith assumptions and are to be used for general information purposes only. These statements do not constitute an offer, promise, warranty or guarantee of performance. Copyright 2014 Boeing. All rights reserved. 1

2 Airplane deliveries: 38, New airplane deliveries by region ,000 25,000 20,000 15,000 10,000 5, ,490 Regional jets 7% 26,730 Singleaisle 70% 4,770 Small wide-body 13% 3,520 Medium wide-body 9% 540 Large wide-body 1% Region Airplanes Asia 14,330 North America 7,890 Europe 7,310 Middle East 3,180 Latin America 3,020 Africa 1,170 C.I.S. 1,150 World Total 38,050 8% 19% 3% 8% 3% 38,050 21% 38% Copyright 2014 Boeing. All rights reserved. 2

3 Winning in the marketplace We all play a role in reaching and sustaining market leadership Build and design quality Airplane performance Reliability and maintainability Delivery discipline World-class support Competitive pricing Copyright 2014 Boeing. All rights reserved. 3

4 thousand parts million parts million parts million parts million parts 3 6 $43 billion spend 5,400 factories 500,000 people Suppliers Boeing Copyright 2014 Boeing. All rights reserved. 4

5 People working together as a global enterprise for aerospace leadership Supplier Management leads the development and continuous improvement of an extended supply chain that creates a sustainable competitive advantage Copyright 2014 Boeing. All rights reserved. 5

6 Rigorous process drives sourcing decisions Copyright Copyright Boeing. Boeing. All rights All rights reserved. reserved. 6 6

7 A highly structured system focused on collaboration Copyright Copyright Boeing. Boeing. All rights All rights reserved. reserved. 7 7

8 Boeing Commercial Airplanes system for managing supplier performance Copyright Copyright Boeing. Boeing. All rights All rights reserved. reserved. 8 8

9 Partnering for Success Affordability focus areas 1 st Time Quality Quality parts Rate readiness Design Cost Out / Lean+ Value Engineering Accelerated Opportunity Capture Supply Chain Architecture Value creation / innovation Strategic sourcing Competition / Commercial Rebalancing / Volume Risk / Reward Statement of work adjustment Design Cost Out of Our Products Supply Chain Architecture BCA SM Cost Down Leadership Achieve First Time Quality Competition, Commercial Rebalancing, & Volume Copyright 2014 Boeing. All rights reserved. 9

10 Structures Major assemblies Body sections Movable wing sections Doors Flight Control Surfaces Fuselage Interiors Passenger Seats Cabin Systems Galley Inserts Interiors Cargo Systems Propulsion Engines Struts Nacelles Systems Avionics Flight Systems Hydraulics Wheels & Brakes Landing Gear Environmental Control Systems Electrical Systems CAS Materials Management & Spares Technical & Engineering Services Customer Support Internal Non-Production Common Commodities Machined parts Sheet metal parts Assemblies Tubing Wiring Tooling Raw materials Standards Boeing commodities present opportunities across the corporation Copyright 2014 Boeing. All rights reserved

11 Expectations of Our Suppliers Boeing is looking for suppliers who: Do their homework to understand how their products and services can directly benefit Boeing Share our commitment to performance excellence in terms of cost, quality and delivery Are financially healthy and are continuously focused on improving affordability and efficiency through Partnering for Success and Lean operations Share their knowledge for how we can all better manage our businesses and deliver value and solutions Provide visibility and insight into their extended supply chains to ensure quality, safety, performance and compliance We need suppliers who are looking toward the future with us Copyright 2014 Boeing. All rights reserved. 11

12 Getting Started with Boeing For additional information on becoming a Boeing supplier, visit the Doing Business with Boeing website: Register on Boeing Supplier Gateway Select Register as a potential supplier if you don t have an existing account It is very important that we know your business size classification Identify what commodity area your product or service falls into Complete your profile by including information on your products and services Contact information doingbusinesswithboeing.com Phone: Copyright 2014 Boeing. All rights reserved

13 Questions? Copyright 2014 Boeing. All rights reserved. 13

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