1. Welcome to the presentation of E-Service Group Members: K. Abbas, N. Asif, M.J. Feenstra, Majed Putrus, J. Laabs, J. Qian, J. Qu, R. Zeemans The Boeing Company

3. Boeing Management Model Driving performance through growth and productivity and leadership development

4. Financial Performance 46% Year-end 2006 53% Integrated Defense Systems Total revenue = $61.5 billion Commercial Airplanes BCC/ Other 1% Revenue Growth EPS Growth Backlog Growth 53.6 51.4 49.3 205 61.5 295 250 152 2.30 3.20 2003 2004 2005 2006 3.62 * 2.85 0.89 8% Compound Annual Growth Rate >4X revenue

7. Reverse auctions 1. Make Market (specs) 2. Identify Suppliers 3. Pre-Award Review 4. Approved Suppliers Listing 5. Identify Specific Terms & Conditions 6. Invite Suppliers 7. Set Up Auction 8. Conduct Auction 9. Contract Write-up

9. Assessing the significance of digital channels Products/services Now 2 years 5 years 10 years Airplanes Direct online sales Indirect online sales 1% 20% 10% 50% 50% 80% 60% 90% Military airplanes Direct online sales Indirect online sales 1% 5% 5% 10% 25% 20% 40% 60% Online airplane service delivery Direct online sales Indirect online sales 10% 15% 40% 50% 70% 80% 90% 95%

12. Process redesign

13. Intranet content creation Product search Review product Place order Receive order conformation Register on-site Receive dispatch confirmation Check order status Check order history Place support enquiry Place repeat / Modify rebuy order Key Pre-order activities Post-order activities

15. Questions? Remarks?