Randy Tinseth Vice President, Marketing Boeing Commercial Airplanes June 2017. The statements contained herein are based on good faith assumptions are to be used for general information purposes only. These statements do not constitute an offer, promise, warranty or guarantee of performance. BOEING
737 MAX 10 737 MAX 7 & 8 787 / 777 Services 361 orders / commitments 368 orders / commitments 56 orders / commitments $6B contracts / agreements 147 incremental 16 customers
Agenda Agenda Market performance and trends Market performance and trends Current Current Market Market Outlook Outlook (CMO) (CMO) Product Product strategy strategy
Record airline performance in 2016 9% Traffic growth rates (RPKs) 20% Cargo growth rates (RTKs) $40 Net profit (billions) 8% 7% 6% 18% 16% 14% 12% $35 $30 $25 5% 4% 10% 8% $20 3% 6% $15 2% 1% 4% 2% 0% $10 $5 0% 2010 2011 2012 2013 2014 2015 2016-2% 2010 2011 2012 2013 2014 2015 2016 $0 2010 2011 2012 2013 2014 2015 2016 SOURCE: ICAO / IATA
900 800 700 600 762 748 723 648 601 500 462 477 400 300 200 100 0 2010 2011 2012 2013 2014 2015 2016
Passenger traffic growth Cargo traffic growth Airline profits SOURCE: Boeing estimates for growth, IATA forecast for airline profits
Headwinds in the market Economic Geopolitical $ $ $ $ Wide economic growth variation Populism Volatile exchange rates Increased geopolitical uncertainty BREXIT Trade / air cargo Terrorism frequency, breadth
Agenda Agenda Market performance and trends Current Current Market Market Outlook Outlook (CMO) (CMO) Product strategy
20-year forecast All jets >30 seats Freighters All flights Scheduled Traffic No turbo props Nonscheduled Product No biz jets No military
Fleet consists of all jet aircraft with at least 90 seats 20,000 16,000 Actual Deliveries 12,000 8,000 4,000 0 1997-2016
100% 90% 80% LG WB 70% 60% 50% SM WB 40% 30% 20% SA 10% 0% Actual Deliveries (1997-2016) CMO 1997 GMF 1997
reca Economic growth Competitive landscape Airport infrastructure Environmental regulations Airline strategies & business models Fuel price Emerging markets Market liberalization Airplane capabilities
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E RPKs (trillions) Resilient, growing market expected to continue 5% long-term growth rate 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 RPKs = Revenue Passenger Kilometers SOURCE: ICAO scheduled traffic / 2016E IATA December 2016
Average annual growth World economy ( (GDP) 2.8% Number of airline passengers Cargo traffic (RTK) Passenger traffic (RPK) 4.0% 4.2% 4.7%
Airplane deliveries: 41,030 2017-2036 30,000 25,000 20,000 15,000 10,000 5,000 0 2,370 Regional jets 6% 29,530 Singleaisle 72% 5,050 Small pax widebody 12% NOTE: Market share may not equal 100% due to rounding 3,160 Med/Lg pax widebody 8% 920 Freighters 2% Market value: $6,050 billion 2017-2036 3,500 3,000 2,500 2,000 1,500 1,000 500 0 $110B Regional jets 2% $3,180B Singleaisle 53% $1,340B Small pax widebody 22% $1,160B Med/Lg pax widebody 19% $260B Freighters 4%
Units 50,000 46,950 45,000 40,000 35,000 30,000 25,000 23,480 20,000 15,000 10,000 23,470 Growth 57% 17,560 Replacement 43% 41,030 5,000 5,920 Retained fleet 0 2016 2036
New airplane deliveries by region 2017 2036 Region Airplanes Asia 16,050 North America 8,640 Europe 7,530 Middle East 3,350 Latin America 3,010 C.I.S. 1,230 Africa 1,220 World Total 41,030 8% 19% 3% 7% 3% 21% 39% Market value by region 2017 2036 Region $B Asia 2,500 North America 1,040 Europe 1,110 12% 19% 2% 6% 3% 41,030 $6.1T Middle East 730 Latin America 350 C.I.S. 140 Africa 180 World Total $6,050B 17% 41%
RPKs (billions) Within Europe 2016 traffic Added traffic 2017-2036 Annual growth % 3.2% North America 2.9% Middle East 5.3% China Africa South America Central America Southeast Asia CIS South Asia Northeast Asia 5.6% 4.7% 4.6% 4.0% 3.5% 5.2% 5.7% 2.4% Europe GDP growth: 1.7% Europe traffic growth: 3.7% 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
ASK Share LCC share of intra-europe service 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SOURCE: OAG / Innovata
Europe will need 7,530 new airplanes valued at $1.1 trillion Airplane deliveries: 7,530 2017-2036 6,000 5,000 4,000 3,000 2,000 1,000 0 100 Regional jets 1% 5,900 Singleaisle 78% NOTE: market share may not equal 100% due to rounding 940 Small pax widebody 12% 490 Med/Lg pax widebody 7% 700 600 500 400 300 200 100 100 $10B 0 Freighters Regional jets 1% 1% Market value: $1,110 billion 2017-2036 $640B Singleaisle 58% $250B Small pax widebody 23% $180B Med/Lg pax widebody 16% $30B Freighters 3%
Units 9,000 8,000 8,160 7,000 6,000 3,360 Growth 45% 5,000 4,800 4,000 3,000 2,000 4,170 Replacement 55% 7,530 1,000 0 2016 630 Retained fleet 2036
Commercial Aviation Services: $8.5T 2017-2036 5,000 4,000 3,000 2,000 1,000 0 CAGR $125B Corporate & External 3.0% $450B Marketing & Planning 4.6% $1,140B Flight Ops 4.1% $2,110B Maintenance & Engineering 4.0% $4,300B Ground, & Cargo Ops 4.1% Services by region 2017-2036 Region Services CAGR Asia 3,200 5.3% North America 1,775 3.1% Europe 1,765 2.8% Middle East 730 5.0% Latin America 530 5.0% CIS 250 3.9% Africa 210 5.3% World Total $8,460 4.0% 2% 6% 3% 9% 21% $8.5T 21% 38%
Agenda Agenda Market performance and trends Current Market Outlook (CMO) Product Product strategy strategy
Seats Seats Superior value, efficient market coverage Current Boeing Future Boeing 500 500 747-8 747-8 450 450 777-9 400 777-300ER 400 777-8 350 350 787-10 777-200LR 300 787-9 787-9 300 250 787-8 787-8 250 200 767-300ER 737 MAX 200 200 737-900ER 737 MAX 9 150 737-800 737-700 737 MAX 8 737 MAX 7 150 100 100 Boeing Standard Rules seat counts
Backlog by value ($B) 747 ME, Central & S. Asia Leasing, Gov't & BBJ Region North America L. America & Africa Asia Pacific Backlog = 5,744 aircraft Value = $417 billion 777 Large 1% Twin- Aisle 48% Model Single- Aisle 51% 737 Europe & Russia China, East & SE Asia 787 767
Less-stressful stowage Dynamic LED lighting More headroom Welcoming architecture Larger, dimmable windows Better economy seating options Every seat a window seat
787 opening new markets More than 150 new nonstop markets now connected with the 787 In operation Announced As of June 12, 2017
Status as of June 12, 2017 1,223 orders from 69 customers Total 557 deliveries 787-8 338 deliveries 787-9 219 deliveries 169M passenger flown 876,300 flights 5.1M flight hours 99.4% schedule reliability >12 hours daily utilization 1,370 total routes 610 unique city-pairs 150 new markets
Product portfolio 2-class seating Boeing Emerging Airbus 2-class seating 600 A380 600 550 550 500 747-8 500 450 450 400 777-9 777-300ER 400 350 300 777-8 787-10 777-200LR 787-9 A350-1000 A350-900 A330-300/-900neo 350 300 250 787-8 A330-200/-800neo 250 200 150 100 767-300ER 737 MAX 9 737 MAX 8 737 MAX 7 CS500 CS300 CS100 E195 E2 C919-300 C919-200 MS-21-300 MS-21-200 C919-100 SSJ 110 A321neo/LR A320neo A319neo 200 150 100 Green text denotes study airplanes