Presentation By: Nick Little Mike Mittelman Ying Jin Lei Huang Nelson Rony

1. Forever New Frontiers Presentation By: Nick Little Mike Mittelman Ying Jin Lei Huang Nelson Rony

2. Overview • An American multinational aerospace and defense corporation • Company founded in 1916 • Two business units: • -Boeing Commercial Airplanes • -Boeing Defense, Space & Security • World’s largest aerospace company • Second-largest defense contractor in the world

3. Boeing International • Customers and customer support in 150 countries • Contracts with 28,000 suppliers and partners globally • More than 170,000 Boeing employees in 50 states and 70 countries

4. Fortune 500: 2012 RankingsBoeing is #1 In Aerospace (again)!

5. 2012 revenues of $49.1 billion • Represent three quarters of the world’s fleet! • Approximately 70 percent of Boeing commercial airplane sales are outside of the United States

6. Headquartered in St. Louis, Mo., with global operations in four nations and 21 states • Responsible for 45% of the company’s income • 2012 revenues of $32.6 billion • Approximately 60,000 employees

7. Key Leadership

8. Major Subsidiaries • Aviall • Providing aftermarket supply-chain management services for the marine, aerospace and defense industries. • Continental DataGraphics (CDG) • Providing strategic engineering solutions and software for aerospace and defense. • Inventory Locator Service • Providing critical business intelligence regarding supply and demand of parts worldwide. • Jeppesen • A navigational solutions provider for the aviation, marine and rail industries.

9. Major Commercial Aerospace Products • Newest Product: Boeing 787 Dreamliner (bottom right two slides) • World’s Most Advanced Commercial Airplane

10. Major Defense Products 3 2 1 5 6 4 First Row: KC 767 Global Tanker1, AH 64D Apache2, ScanEagle3 Second Row: Unmanned Little Bird4, F-15E Strike Eagle5, Harpoon6

11. Liquidity Ratios - Cash balance and inventory has increased - Short-term and other investments have gone up. - Big increase in CFFO.

12. Efficiency Ratios • - Decreasing A/R collection period • - Biggest factor in a high CCC is • inventory, but it is the nature of our company - A/P is at a manageable time period

13. Boeing Buys Inventory Commodities at the right time, saving us money!

14. Solvency Ratios

15. Adjustment

16. Profitability Ratios • Different core products have different needs and cost structures • Building planes requires more infrastructure and more labor = higher costs - Honeywell will try to influence you based on comparing ratios, but it's apples to oranges. Barcode scanners & air conditioning vs. Airplanes!

17. Effective Income Tax Rate • Tax benefits of $397m and $371m recorded in 2011 and 2010 • Absence of research and development tax credits, but also an even lesser total research & development expense!(nets to less total exp.)

18. Compensation to Employees • New health care plan • Good for employees w/o costing us a material amount more • Our Pension Plan • Majority have defined benefit pension plan – the BEST plan an employee can have. • Only 7% of U.S. employees have this plan. • Share-based Compensation • Stock options • Share value trust • Restricted stock units & other rewards

19. Boeing: Delivering the Future International Expansion

20. U.S. Market StableForeign Market Rapidly Expanding! • 80% of commercial airplanes orders from overseas • Budget cuts completely offset • 20 % increase in total revenues • Tripling and Doubling Revenues • -India • -Asia • -South Africa

21. Growth of Product Sales

22. Revenue from Foreign Countries

23. Expanding Business Overseas: China! • 1916: the first engineer founder Bill Boeing hired wasChinese-born Wong Tsoo. • 1972: President Richard Nixon made his historic trip to China, opening up businesses to the multitude of opportunities China had to offer. • We have been conscious about expanding into China • every step of the way, from hiring our first engineer, to the opening of China’s business market by Nixon . Wong Tsoo (王助)

24. Huge sales volume increases in China! • As of March 5th, 2013:Air China placed an order for 31 airplanes! Main point:This one deal alone is worth over $5 billion dollars!

25. Huge sales volume increases in China! In 2013, Airplane deliveries to China are expected to increase 60% year-over-year! (source: http://www.china.org.cn/business/2013-03/03/content_28112442.htm) A Boeing 787 Dreamliner at Beijing Capital International Airport. Huge Business Milestone: 1,000th Boeing Plane will be delivered this month to China! More than 120 aircrafts will be delivered to various Chinese airlines this year alone.

26. Boeing: Driving the long-term Growth Value Creation

27. Stock Recovery Since Recession (Dec 29 2008 – Current)

28. Boeing (BA) Consistently Beats the Dow Jones & S&P 500 Averages

29. Relative Stock Price Since Recession

30. Long-Term Percentage Increase of Boeing’s Stock Value vs. Honeywell

31. Strong Management Confidence!

32. Stock buyback plan • Negative on our books, which lowers our Equity • Buy back our own shares because we think they are undervalued • Means we are confident in our stock price rising significantly

33. Which is a better value investment? Dividend Yield: Boeing: 2.50% Honeywell: 2.30% 1-year Stock Price Projected Increase: BA: 8.97% increase HON: 4.18% increase

34. Summary : Why you should invest with us! • ProvidesBestbenefit to employees • World demand will double in 20 years • TheGreatest corporation in defense industry • Great inventory management leads tohuge gains by avoid cost rises! • Versus Honeywell: Better Dividend, Better 1-Year Stock Target Price& 5x betterstock appreciation for your money!

35. Forever New Frontiers Present by: Nick Little, Mike Mittelman, Ying Jin, Lei Huang, Nelson Rony

36. Risks Industry-Wide:Company Specific: 787 Dreamliner Battery problem: - Extremely cheap fix - FAA scheduled to re-approve this week!

37. Adjustment Adjusted Debt to equity ratio: 2012: (82929-6579)/(5967+6579)=6.09 2011: (76378-5743)/(3608+5743)=7.56 2010: (65703-5570)/(2862+5570)=7.13 2009: (59828-1914)/(2225+1914)=13.99 2008: (54921-3795)/(-1142+3795)=19.27 Adjusted return on equity ratio: 2012:35.6% 2011:45.1% 2010:52.7% 2009:39.3% 2008:100%

38. Expanding Business Overseas: China!

39. Boeing’s Strategy

40. Future Market

42. Industry: Aerospace/Defense Products & Services

43. Forecast Indicators

44. This explain 2008-2009

45. Revenues: Defense vs. Commercial 60 % commercial, 40 % government

46. Investments

49. What we did… • 1916 William Boeing founded Pacific Aero products Co • 1940 Boeing during World War II built a large number of bombers (B-17 and B-29) • 1955 Bomarc missiles became world’s first long-range anti-aircraft missiles • 1957 Boeing707, USA’s 1st commercial jet plane • 1961 Boeing participated in Apollo program • 1967 Boeing 737 became best-selling commercial plane • 1972 Boeing involved in Space Shuttle program • 1995 Boeing involved in Space Station Project • 1996 Boeing acquired Rockwell’s aerospace and defense units • 1997 McDonnell Douglas Corp & Boeing merged • 2001 Headquarters was moved to Chicago • 2004 Dreamliner was launched • 2006 Aviall, Carmen Systems, C-map came under Boeing • 2006 Boeing, Lockheed Martin joined for United Launch Alliance

50. What we do… • Design, assemble and support defense systems • – World’s largest designer and manufacturer of military transports, tankers, fighters and helicopters • – Support Systems provides services to government customers worldwide • Design and assemble satellites and launch vehicles • – World’s largest provider of commercial and military satellites; largest NASA contractor