Presentation main title (Arial 32) - c.ymcdn.comc.ymcdn.com/sites/ · PDF filePresentation main title (Arial 32) Author: dm737c Created Date: 20111005162455Z

BOEING is a trademark of Boeing Management Company.

Copyright © 2011 Boeing. All rights reserved.

Proprietary: The information contained herein is proprietary to The Boeing Company and shall not be reproduced or disclosed in whole or

in part or used for any reason except when such user possesses direct, written authorization from The Boeing Company.

John Byrne Vice President, AM&S

Boeing Commercial Airplanes September 2011

Titanium Conference

BOEING is a trademark of Boeing Management Company.

Copyright © 2011 Boeing. All rights reserved.

The statements contained herein are based on good faith assumptions and provided for general information purposes only.

These statements do not constitute an offer, promise, warranty or guarantee of performance. Actual results may vary

depending on certain events or conditions. This document should not be used or relied upon for any purpose other than

that intended by Boeing.

COPYRIGHT © 2011 THE BOEING COMPANY

SCM&O | AM&S

787 Dreamliner – It’s More Than A Dream

| 2

Boeing, ANA celebrate

1st 787 Dreamliner

delivery

We celebrate a significant

moment in the history of

flight -- first delivery of the

game-changing 787

Dreamliner.

Employees in Everett celebrate 787 delivery (September 26, 2011)

http://boeingnews.web.boeing.com/archive/2011/784.html




SCM&O | AM&S

| 3

Current Market Outlook (CMO)

Market trends and realities

Boeing product strategy and development

Agenda


SCM&O | AM&S

| 4

Agenda





SCM&O | AM&S

| 5

2011 CMO By The Numbers


SCM&O | AM&S

| 6

Drivers Of Air Travel


SCM&O | AM&S

| 7

World Air Travel Has Grown 5% Per Year Since 1980


SCM&O | AM&S

| 8

Air Travel Becoming More Diverse Geographically


SCM&O | AM&S

Airlines Will Need 33,500 New Airplanes Valued At $4.0 Trillion

Airplane deliveries: 33,500 2011 - 2030

Market value: $4.0T 2011 - 2030

0

5,000

10,000

15,000

25,000

1,980 regional jets

6%

23,370 single-aisle

70%

7,330 twin-aisle

22%

820 large 2%

0

500

1,000

1,500

2,500

Airp

lane

uni

ts

Mar

ket v

alue

, $ b

illio

ns

$70B regional jets

2%

$1,950B single-aisle

48%

$1,770B twin-aisle

43%

$270B large 7%

20,000 2,000


SCM&O | AM&S

| 10

Older, Less Efficient Airplanes Will Be Replaced By More Efficient, Newer Generation Airplanes


SCM&O | AM&S

| 11

Forecast Summary Market Share By Business Model


SCM&O | AM&S

| 12

Agenda





SCM&O | AM&S

| 13

Market Forecast Drivers And Considerations


SCM&O | AM&S

| 14

Emerging Markets Are Driving The Economic Growth


SCM&O | AM&S

| 15

Air Travel Growth Has Been Met By Increased Frequencies And Nonstops


SCM&O | AM&S

| 16

Air Travel Growth Varies By Market


SCM&O | AM&S

Aircraft Will Continue To Be Long-lived Assets

| 17


SCM&O | AM&S

| 18

Boeing And The Industry Are Tracking Climate Change


SCM&O | AM&S

| 19

Market Trends And Realities Summary

Single-aisle airplane demand stronger and

more resilient than expected

Emerging markets and business models

creating a more diverse and balanced

marketplace

Passengers getting what they want-- more

frequencies and nonstop service-- spurring

strong demand for long-range twins

Rising and volatile fuel prices will continue

to change our industry


SCM&O | AM&S

| 20

Agenda





SCM&O | AM&S

| 21

Airlines Are Focusing On The Future


SCM&O | AM&S

| 22

Boeing Product Forecast In-line With The Realities Of The Market

Large

Twin-aisle

Single-aisle

Regional jet

Size category


SCM&O | AM&S

Long Term Development Needs For Airframe Structure

Titanium can be utilized in several ways to decrease airlines operating costs

Maximum titanium utilization toward this goal will require reducing the cost of

titanium hardware

Titanium cost reduction/performance improvement approaches

Reduce buy:fly

Welding

Powder metallurgy

Hot stretch forming

Extrusions

SPF – SPF/DB

Improved machining technology – machinability

Improved performance

Strength

Temperature capability

Lower temperature SPF alloys

Information courtesy of Rodney Boyer | 23


SCM&O | AM&S

|

Titanium’s Value Chain Challenges

Titanium is the highest cost of raw material options

Titanium BTF costs are significantly higher than other raw materials

Long lead times increase inventory level in supply chain

Difficult to quickly respond to market fluctuations

Boeing hopes to utilize emergent Titanium technologies and alloys on

the next generation of Boeing aircrafts to reduce cost and improve

performance


SCM&O | AM&S

All Programs Fly Weight - Ti

| 25


SCM&O | AM&S

Demand Profile With Inventory Burn Down

| 26

Based on 3Q Firing Order

Current Ti Buy

Inventory Mound

Inventory burn

from reductions

Demand


SCM&O | AM&S

Optimized processing and machinability

Reduced price with closed loop scrap

recovery

Superior performance

Safer airplanes

More affordable airplanes

New applications for Ti

- New Alloys

- New products

- New Processes

- New Technologies

However - today new,

efficient uses for Aluminum

and Carbon Fiber are being

incorporated which

minimizes Titanium usage

in commercial airplanes.

Key Messages

Titanium Industry

Documents

Presentation main title (Arial 32) - c.ymcdn.comc.ymcdn.com/sites/ · PDF filePresentation main title (Arial 32) Author: dm737c Created Date: 20111005162455Z