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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 62 Countries / 6,717 Suppliers / $22.1B Spend
BCA Global Spend
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

8. 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

9. 787 International Team at Work

10. 787 Supply Chain

11. 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

12. 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

13. 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