BOEING Presentation

BOEING"FOREVER NEW FRONTIERS"

INTRODUCTION
FOUNDED IN 1916 IN PUGET SOUND, WASHINGTON WORLD S LEADING AEROSPACE COMPANY SERVICE PROVIDER TO FAMOUS COMPANIES THE SECOND BIGGEST DEFENSE COMPANY IN THE WORLD IN MORE THAN 70 COUNTRIES TOTAL COMPANY REVENUES FOR 2009 WERE $61.5 BILLION

PRODUCTS ARE :
 Commercial Airliners  Military Aircraft  Munitions  Space Systems  Computer Services

THREE CLASS CONFIGURATION

First Class

Business Class

Economy Class

WHAT BUSINESS ARE WE IN«????
 The Boeing Company is a major American AEROSPACE and DEFENSE corporation.  It is the largest global aircraft manufacturer by revenue, orders & deliveries

VISION 2016
 People working together as a global enterprise for aerospace leadership  Strategies: run healthy core businesses leverage strengths into new products & servies.  Core Competencies : detailed customer knowledge .  Values : leadership integrity quality customer satisfaction

WORLD CLASS PERFORMANCE

? Corporate functions :
? Business Development & strategy ? Communications ? Engineering, operations & technology ? Finance/shared services group/Boeing capital corp. ? Human Resources/Administration ? International

Commercial Airplanes

Integrated Defense System

? Law
Two business supported by seven corporate functions

PRODUCT CATEGORY
COMMERCIAL AIRLINERS:  737  747  767  777  787 Dreamliner  BBJ/VIP

FINANCIAL PERFORMANCE
Year-end 2 0 06
BCC/ Other 1% Integrated Defense Systems
$4

EPS Growth
3 2 .6 * 3 0 .2 2 5 .8 2 0 .3

$3

5% 3 4% 6
Commercial Airplanes

$2

$1

0 9 .8

$0

Total revenue = $ 1.5billion 6
$60

20 05
$5 20 $0 20 $ 0 15 $ 0 10 $0 5 $ 0
20 04

20 06

20 07

20 08

4 9.3
$40

5 1.4

5 .6 3

6 1.5

8 % Compound Annual Growth Rate

20 5 2124 0 5 15 2
87 81 76 6 5 174

2 95
24 2

>4 X reven ue
71
20 0 7Q3

$20

20 05

20 06

Backlog Growth
$0 2003 2004 2005 2006

Revenue Growth

Implementation of E-Service
?Reverse auctions ?Adoption of intranets and extranets ?Assessing the significance of digital channels ?E-procurement ?Customer acquisition ?Process redesign ?Intranet content creation

Assessing the significance of digital channels
.

Revenue and Earnings
Billion DOUBLE-DIGIT s $18 GROWTH IN

INVESTOR RELATIONS
Per share .

REVENUE AND $1 EARNINGS +1

$12 $6 $0

$1 . %

$1. 50 $1. $0. 0
Revenue

$1. + %
EPS

9

$0. 5 $0. 0
006Q3 2007Q3

COMPETITORS
Airbus Lockheed Martin European Aeronautic Defence & Space Company (EADS)

COMPETITORS
Boeing VS Airbus

COMPARISON BETWEEN AIRBUS A380 & BOEING 747
The A380 produces 50% less cabin noise than a 747 and has higher cabin air pressure; both features are expected to reduce the effects of travel fatigue. In a 555-passenger configuration, the A380 has 33% more seats than a 747 and 50% more cabin area and volume resulting in more space per passenger. Compared to a 747, the A380 has larger windows.The wider cabin allows for 19 inch wide economy seats instead of 17 inch seats on a 747.

The A-380 offers better take-off and landing performance than the Boeing 747
A - 380 Take ± off : 9,800 ft
1800 ft less

Boeing 747

Take ± off : 11,600ft

A - 380 Boeing 747

Landing : 6,900 ft
500 ft less

Landing : 7,400 ft

Shorter distance means less noise exposure outside the airport boundaries

COMPARISON WITH COMPETITORS
. Company Revenue Market cap P/E

Boeing Co. Airbus S.A.s EADS N.V LOckheed Martin Co. Northrop grumman Co. Raytheon Co.

64.61B 66.34 B 61.37 B 46.41B 63.61 B 45.87 B

47.40B N/A N/A 24.60 B 18.57 B 16.72 B

14.01 N/A N/A 9.22 9.30 9.46

BAE System plc

20.29 B

17.73 B

17.80

BOEING COMPANY STATEMENT

LOCKHEED
 Revenue- $ 46.41 B

MARTIN

 Main player in the aerospace industry

 Company focuses on aeronautic design , development & manufacturing for both military & public sectors  Space system development (space launches, satellites etc.)

LOCKHEED MARTIN 10YEARS HISTORY

NORTHROP GRUMMAN
 Another major aerospace & defense player  Company¶s yearly sales ± $31.5 billion  Area focus ± defense & technology system  Provides major information system as ; command control system missile control system public safety system radar system

BOEING

VS. Northrop Grumman

.
 EADS) is a large pan-European aerospace corporation, formed by the merger on 10 July 2000  Revenue-$61.37 billion

COMPETITOR ANALYSIS
A. CHARACTERISTICS OF THE INDUSTRY

? Extremely high capital  Cyclical demand requirements  Only a few can ? High risks survive ? New product development  Swings through cost are high boom and bust ? Long payback periods cycles

COMPETITOR ANALYSIS
B. BARRIERS TO ENTRY
? Know - how ? Capital costs ? Long time horizons
 

Risks High fixed costs

MARKETING POLICY

Segmentation ? Boeing uses Geography as its segmentation tool. Short haul routes appear to reveal that Europe and North America is the more attractive segment.

"Forever new frontiers"
THANKYOU
FROM: PREETI YADAV M100700040

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