Supply Chain Risk Leadership Council Mike Bair Vice President, Business Strategy and Marketing Boeing Commercial Airplanes June 4, 2008

Partnering worldwide for mutual growth and prosperity The Boeing Company World’s leading aerospace company 153,000 employees in 48 US states and 70 countries 2007 revenue: $65 billion Customers in more than 90 countries Second largest U.S. defense contractor Suppliers in 100 countries One of largest U.S. exporters and in top twenty U.S. importers Customers in more than 90 countries 70 percent of commercial airplane revenue historically from customers outside the United States More than 153,000 employees in 48 states in the U.S. and 70 countries Total revenue in 2007: $66.4 billion (41 percent from international sales) Top-20 U.S. importer: >58,000 imports/year Imports: ~77.4% by air, 17.3% by truck, 5.3% by ocean Research, design and technology development centers and programs in multiple countries Suppliers in approximately 100 countries Manufacturing, services and technology partnerships with companies around the world One of largest U.S. exporters and in top twenty U.S. importers Manufacturing, service and technology partnerships with companies around the world Contracts with 22,000 suppliers and partners globally Research, design and technology-development centers and programs in multiple countries More than 150,000 Boeing employees in 49 states and 70 countries Partnering worldwide for mutual growth and prosperity

What We Do Today Design, assemble and support commercial jetliners Design, assemble and support defense systems Design and assemble satellites and launch vehicles Integrate large-scale systems; develop networking technology and network-centric solutions Provide financing solutions focused on customer requirements Develop technology and advanced systems to meet future customer needs

Boeing Growth Perspective 1996 - 2006 Integrated Defense Systems 53% Integrated Defense Systems 25% Commercial Airplanes 75% Boeing has executed a very deliberate strategy over the past decade that has transformed the company and contributed to our significant growth. This strategy has allowed us to nearly triple our revenues over the past decade. Today Boeing is the global leader in aerospace with about half of its revenues from Commercial Airplanes and half from Defense. We’re the largest and most well-balanced aerospace company in the world. As a result of that transformation, Boeing now has a broad, balanced portfolio that better positions us to perform well through industry cycles. Commercial Airplanes 47% 1996 Revenue $23B 2006 Revenue $61.5B Boeing…the global leader in aerospace 9/20/2018

International Business Environment Increased global trade and traffic Asymmetric security threats Rising oil prices Enriched Middle East Ascent of China, India and Russia Environmental focus Increased opportunity amid heightened uncertainty 9/20/2018

Federal Sentencing Guidelines Regulatory Landscape Consent Decrees Procurement Law Federal Sentencing Guidelines Japanese Commercial Code Administrative Agreement Export - Import Laws Patriot Act NYSE New York Stock Exchange Safe Harbor Sarbanes-Oxley Financial and Accounting Disclosure Information U.S. Securities and Exchange Commission Federal Acquisition Regulation Equal Employment Opportunity Commission

62 Countries / 6,717 Suppliers / $22.1B Spend BCA Global Spend - 2007 62 Countries / 6,717 Suppliers / $22.1B Spend Europe 280 Suppliers $1,308m N. America (excl. U.S.A.) 609 Suppliers $666m Asia 118 Suppliers $1,892m U.S.A. 5,657 Suppliers $18,094m Middle East 10 Suppliers $61m Africa 14 Suppliers $28m S. America 12 Suppliers $289k Australia 17 Suppliers $56m

Aligning global operations BCA Lean Global Enterprise Winnipeg Puget Sound Toronto London Moscow Design Center Seattle Beijing Long Beach Atlanta Dubai Legend: Top 20 partners, Global partners and IP suppliers Boeing Internal Top CAS suppliers Major Boeing Spares Centers Boeing Field Offices Bankstown Melbourne Aligning global operations

787 International Team at Work

787 Supply Chain

Dreamlifter – 747 Large Cargo Freighter 747 LCF Cargo Loader Fun Facts: Length: 118 ft., 1 inch (36 meters) Width: 27 feet, 6 inches (8.4 meters) Overall height in full "down" position: 13 ft., 9 inches (4.2 meters) Height of cargo deck in full "down" position: 5 ft., 10 inches (1.78 meters) Overall height in full "up" position: 33 ft., 1 inch (10 meters) Height of cargo deck in full "up" position: 25 ft., 4 inches (7.7 meters) Loader Weight Empty: 220,000 pounds (100 tons, 100,000 kilograms) Loader Weight Capacity: 150,000 pounds (68 tons, 680,000 kilograms) Maximum speed: 10 mph (16 kilometers) Number of tires: 32 Number of steerable axles: 16 Number of steering modes: 6

Dreamlifter Route Structure Joined Section 43-46 Charleston, SC to Everett, WA Joined Section 47-48 Charleston, SC to Everett, WA Section 41 Wichita, KS to Everett, WA Section 46 Grottaglie, Italy to Charleston, SC Section 44 Grottaglie, Italy to Charleston, SC Horizontal Stabilizer Foggia, Italy Wing Nagoya, Japan Section 43 Section 11/45

Globalization and What Comes With It Suppliers are both partners and customers Opportunities and challenges span the supply chain Expect challenges to increase Working together is critical to our success