11/28/12

Company Description Sector: Industrials / Industry: Aerospace & Defense 3 Main Divisions: 1. Commercial Airplanes ~ 60% of revenues 2. Defense, Space, and Security ~ 40% of revenues 3. Boeing Capital Corporation < 1% of revenues Geographic Sales Breakdown: A. US ~ 50% of revenues B. Asia (including China) ~ 18% of revenues C. Europe ~ 14% of revenues Competitors: Airbus (subsidiary of European Aeronautic Defense and Space Company) Lockheed Martin (LMT) Northrop Grumman (NOC)

Quick Stats Current Price: $74.09 Market Cap: $55.87B Enterprise Value: $56.32B Beta: Week Price Range: $ $77.83 Div Yield: 2.40% Income Statement Statistics: Revenue (ttm): $78.95B Quarterly Revenue Growth (YoY): 12.90% EBITDA (ttm): $7.73B Profit Margin (ttm): 5.47% Net Income (ttm): $4.31B Valuation Statistics: Trailing Price / Earnings Ratio: Forward Price / Earnings Ratio: Yr Growth Estimate: 11.90% Prices / Sales Ratio: 0.71 Price / Book Ratio: Enterprise Value / EBITDA: 7.28 Balance Sheet Cash: $11.12B Debt: $11.19B

Investment Thesis  Beginning to Ride the Powerful Aerospace Cycle  Recent Earning Have Been Stellar and Stock Still Cheap Because of Over-Heightened Defense Spending Cut Headwinds  Huge Backlog and Solid and Increasing Dividend Makes Boeing a Safe Play

Boeing Regaining Market Share

Boeing’s Impressive Airplane Deliveries

Stellar Earnings Outpacing Estimates

Boeing’s Huge Backlog Backlog stands at $378 billion including 4,100 unfilled commercial airplane orders Would take over 7 years to clear this backlog out!

Steadily Increasing Dividend Current Dividend = 2.40%

Industry/Peer Analysis

Risks 1. Expected Defense Cuts in Washington However… A. Implemented cost cutting B. 25% of DSS revenues are international 2. Expenses Tied to Fuel Costs Huge operating expense ~ 1/3 of total expenses 3. Pension and Health Care Benefits Currently have ~ $24 billion in accrued liabilities

Conclusion/Price Target Boeing will continue to blow out earnings, pushing the P/E ratio down, until the stock becomes too cheap that the price will have to go up 12 month price target of $90, representing a 21% gain