Boeing Defense, Space & Security...Structural test article build near completion –test initiation...
Transcript of Boeing Defense, Space & Security...Structural test article build near completion –test initiation...
Copyright © 2016 Boeing. All rights reserved.
May 2016 Investor Conference
Leanne CaretPresident and CEO, Boeing Defense, Space & Security
May 11, 2016
Boeing Defense, Space & Security
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Copyright © 2016 Boeing. All rights reserved.
May 2016 | Investor Conference
Addressing an evolving global environment
Environment
2
300
350
400
450
500
550
600
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
US DoD Base Budget
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Market Served
Return to budget growth
Strong support for Boeing solutions
Acquisition reform favorable to industry
Non-traditional & disruptive competitors
Regional threats diverse and growing
Foreign policy aligning against common threats
Opportunities exist, timing & funding uncertain
Presence & partnerships more essential
U.S.
International
Source: USG DoD Budgets
Source: Boeing global market fact based analysis
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May 2016 | Investor Conference
Backlog more balanced and diverse
Backlog Diversification – Defense & Space
3
2000 20152000 2015
stable… more balanced…
Total Backlog Business Mix
BoeingMilitary Aircraft
Network & Space Systems
Global Services& Support
Americas
Americas
Europe
Europe
Asia
Middle East
Other
2000 2015
more diverse…
Geographic Mix
$62B$58B
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May 2016 | Investor Conference
Evolving, winning, and expanding for long-term growth
10 year – $3T market
4
Win NewFranchises
EvolveRobust
Core
ExpandGlobal
Services
Advanced
Weapons
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One Boeing expertise delivering superior customer solutions
Strategy
5
Healthy, cost-competitive business
Differentiated, capabilities-based
Globally differentiated through depth and scale
Best team and talent across industry
Market Leader in a Diverse Portfolio
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Returning value to customers and shareholders
Growing Boeing’s Services Business
6
PLAYBOOKSERVICES STRATEGY
THE
Extend
Innovate
Grow
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
Off-platform success
Industry-leading margins
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Positioning for profitable growth
Investing for Growth
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$0.9B (2016 Guidance)
R&D• Future Franchises
• Product Enhancements
• Additive Manufacturing
• Advanced Materials
Business
Capture
Connect Protect Explore Inspire
Invest to expand, differentiate, reduce cost
Focused opportunity development and capture
Evolve next generation support solutions
Global presence
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May 2016 | Investor Conference
Progressing to meet customer commitments
Development Update
8
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
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
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Aggressively driving productivity to expand margins
Increased Focus on Margin Expansion
9
10.2%
2013-2015
Double
Digit
Near-term Focus
Mid
Teens
Aspirational Goal
Key Drivers / Areas of Focus
Supply chain efficiencies
First-time production quality
Development efficiency
Internal cost optimization
Competitive landscape
Geopolitical environment
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Our Approach
10
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
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