The Boeing Company The Challenges of a Global Wellness Program

The Boeing Company World’s leader in aerospace 150,000 employees in 48 U.S states and more than 70 countries Market leader in commercial jetliners, military aircraft, satellites, missile defense, human space flight, launch systems and services Revenues of greater than $50 billion

Health Challenges Size Geography Aging Workforce 60+ Collective Bargaining Units 500+ Health Plan Options Historically Generous Coverage Employee Mobility Cultural Issues Data Privacy Integration

Out of every 100 Boeing people… 90 have 2 or more risk factors 85 eat too much fat and/or don’t consume at least 5 fruits & vegetables/day (67% RTC) 75 fracture one or more home safety principles 63 admit to having too much stress (43% RTC) 62 are overweight or obese (73% RTC) 61 don’t get enough exercise (57% RTC) 50 have 5 or more risk factors 48 are hypertensive 26 have seasonal allergies 14 have high cholesterol 12 smoke (28% RTC) 8 are clinically depressed 8 have arthritis 6 experience migraine headaches 6 have chronic back pain 4 have diabetes 3 have documented heart disease

Boeing Health Care Spending in Perspective At 1.8 billion, our annual Health Care spending is enough to purchase: 7 777s or, s or, 30 F/A-18 Super Hornets or, 56 CH-47 Chinooks

Wellness Issues

Boeing’s Top Actionable Health Conditions Source: Boeing Health & Productivity Analysis, 2003

Direct Health Care Cost is the Tip of the Iceberg Sources: Boeing 2004 HRA and Employers Health Coalition, Inc., Productivity Study, 2000

Boeing’s Health Risks Determinants of health status: -- Access to Care (10%)-- Genetics (20%) -- Environment (20%)-- Behavior (50%) Source: IFTF, Center for Disease Control and Prevention Source: Boeing Health Risk Assessment (HRA) results, 2004 '04-'05 HRA Risk Factor Comparison Tobacco Cholesterol Hypertension Stress Weight Exercise Nutrition Risk Factor % at Risk

Estimated Annual Excess Costs – 4 Lifestyle Risk Factors Risk FactorBoeing Employees & Spouses risk 1 Excess Annual risk 2 Total Annual Excess Cost Exercise234, ,106 (.61) $400$57m Stress234, ,798 (.63) $700$104m Weight234, ,452 (.62) $500$73m Smoking234,600 28,152 (.12) $1,623$46m Total234,600$280m 1.Sources: 2005 Boeing HRA data 2.Sources: 1998 Boeing Wellness data; HERO data; smoking data: Centers for Disease Control

Wellness Strategy & Programs

Goal: Solid Offerings Along the Continuum of Care –Health Promotion – Education – Fitness – Prevention – Screenings Well No Disease Low Risk –Targeted Risk Reduction Programs/ Health Risk Assessment At Risk Obesity High Cholesterol –Self-care Tools Including Nurse Triage –Decision Support for Major Procedures Acute Illness/ Discretionary Care Surgical Procedures Emergency Visits –Disease Management (Major Event Prevention and Ongoing Symptom Management) Chronic Illness Diabetes Coronary Heart Disease Arthritis –Case Management –Utilization Management Catastrophic Head Injury Cancer 20% people = 78% cost Benefits Wellness/ Care Management Team 80% people = 22% cost

Wellness Programs Are Coordinated Through The Company Wellness Team Wellness Team Representatives Fitness Wellness Medical SHEA WorkLife EAP Union Benefits HR

Risk Factors Mental Health Issues Inactivity Poor Nutrition Overweight Smoking Lack of knowledge Less than optimal condition management Poor health consumer behavior Partners: Safety, Medical, Fitness, EAP, Family Care Resources, Benefits, Disability Management Boeing Cost Drivers Arthritis Low Back Pain Hypertension Diabetes Heart Disease Depression Headache Boeing Productivity Drainers Allergies Depression Migraine Arthritis Hypertension Asthma Low Back Pain Problems Wellness Tools Health Letter BoeingWellness.com HRA w/Coaching Free & Clear Weight Program Fitness Program Stress Program Health Education Health Fairs Screenings/Flu Shots EAP Family Care Res. Disease Mgmnt. Safety Programs Solutions Monthly Focus Headache/Migraine Heart Weight Management Cancer Prevention Allergies/Asthma Injury Prevention Mental Health Arthritis Men’s Health Women’s Health Diabetes/Smoking Stress Management Wellness Strategy Model Programs & Services need to focus on the risk factors and problems

BoeingWellness: Enterprise/Local Alignment Telephone- Based coaching HRA Fitness Site Health Education BW.com portal Newsletter Flu Shots Other site- based programs People Working Together -Right Focus -One Program Sited-based Enterprise

U.S Health Risk Factor Goals* Risk Factor Boeing 2004 Boeing 2005 U.S U.S Goal Physical Inactivity 67%61%62%40% Overweight 40%37%35%25% Obesity 26%25%23%15% Smoking 9%12%24%12% * Centers for Disease Control - Healthy People 2010 Public Health Initiative

…and how would you like to get help? Risk Factor HRA Coaching On-Line Programs Site programs Fitness, Classes General Education Newsletter, Speakers Safety Systems Clinical Referral EAP Referral Disease Management BoeingWellness.com

Wellness Outcomes

We Evaluate Programs Three Ways Participation Statistics Survey Responses Data Analysis Program Decisions

2005 Program Participation Total Program International Monthly Health Letter – Employees145, (2.5%) Quarterly Health Letter - Retirees170, (<1%) Quit Tobacco (new)2,40024 (1%) Flu Shots54,000350(<1%) Annual Fitness Center Visits1,000,000NA Classes1,500NA Screening Events50NA Health Fairs50NA BW.com Registrations (new)55, (2%) Health Risk Assessments Completed78, (1%) Mayo Coaching Participation 4300 – 1 call 7300 – 5 call 50 – 1 call (1%) 60 – 5 call (<1%)

High Confidence In Ability To Make Lifestyle Changes Very confident Confident Not very confident Not at all confident Q. 7 - How confident are you in your ability to make positive lifestyle changes, such as losing weight, stopping smoking or better managing your stress since visiting this Web site? 81% say they are more confident

Coaching Outcomes % increasing confidence Direct outcomeIndirect outcome % increasing perception of health Weight n=4,526 52% in ability to manage their weight 54% lost weight 42% lost 5+ lbs. 12% maintained weight 53% inc. success in using HWM strategies 28% improved perception of overall health Physical Activity n=1,679 37% in ability to increase their level of physical activity 52% increased their exercise minutes 45% lost weight 16% maintained their weight 23% improved perception of overall health Nutrition n=511 50% in ability to make healthy eating choices 60% are making healthier eating choices 43% lost weight 15% maintained their weight 30% improved perception of overall health Stress n=657 60% in ability to manage stress 70% have fewer stress symptoms 31% use more stress management techniques 33% improved perception of overall health Tobacco n=2,403 n/a25-33% quit rateMany more have reduced smoking frequency/are closer to quitting n/a

Data Management Model Data Management System Medical Claims Disability Claims Injury & Illness Workers Comp HRA Clinic Visits Targeting Planning Evaluation Financial Mgmnt Vendor Mgmnt

On the horizon…

2006 Wellness Goals Growth of existing programs Integration & Culture Building Targeting & Evaluation Governance New programs Reach Choice Quality Impact BW.com HRA Coaching Flu Fitness Education International Stress Management Broadcast Education Weight Watchers Pilot Physical Activity Initiative Screenings Speakers Health Fairs Clinical Standards Fitness Center Operations Decision Support System Leadership Awareness Teaming Programs Consistency

Health & Productivity Culture WorkLife Programs Employee Assistance Program Safety Programs 24x7 Medical Leadership Personal Responsibility Outcome Health Plan Coverage, Quality, & DM Wellness Programs Early Intervention Programs Disability Management HPM System

Globalization Challenges Identification Eligibility Coordination & Communication Product Applicability Delivery Method Cost-Benefit