The Company. Munich, 2017

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1 The Company Munich, 2017

2 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

3 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

MTU Aero Engines business model Commercial engine business Military

portfolio of products in all thrust categories Partnerships with OEMs

4 MTU Aero Engines business model Commercial engine business Military engine business Commercial maintenance Share in sales: ~ 50% Balanced portfolio of products in all thrust categories Partnerships with OEMs going back decades Share in sales: ~ 10% European and U.S. engine programs Lead industrial partner to the German Armed Forces Share in sales: ~ 40% Access to high-growth segments Provider of services to airlines worldwide

777X PW1000G-family A320neo, E2-Jet, C Series, MS-21, MRJ 0 GEnx 787 747-8 GP7000 A380

5 Return on investment in the commercial engine business + Cumulated cash flow V2500 A320 PW2000 PW , C CF6-80 LM , 767, IGT A300, A310, A330 Entry into service - GE9X 777X PW1000G-family A320neo, E2-Jet, C Series, MS-21, MRJ 0 GEnx GP7000 A380 Phase-out 40 Calendar years after program launch Production Pre-development R & D Maintenance

6 Value to customers& partners Pillars of MTU s corporate strategy Profitable growth Leading technology Balanced portfolio Benchmark Competitiveness Employees & Competence

Main company locations worldwide MTU Aero Engines,Headquarters Munich MTU Maintenance Hannover MTU Maintenance Lease Services Aerospace Embedded Solutions MTU Aero Engines Polska MTU Maintenance

7 Main company locations worldwide MTU Aero Engines,Headquarters Munich MTU Maintenance Hannover MTU Maintenance Lease Services Aerospace Embedded Solutions MTU Aero Engines Polska MTU Maintenance Canada MTU Maintenance Dallas Ceramic Coating Center MTU AENA Vericor Power Systems MTU Maintenance Zhuhai 50% MTU 50% China Southern Airfoil Services (ASSB) 50% MTU; 50% LHT OEM business Engine MRO Parts repair MTU Maintenance Berlin-Brandenburg Pratt & Whitney Canada Customer Service Centre Europe

Global MTU Aero Engines workforce MTU Aero Engines has a total workforce of around 9,000 employees worldwide 4,000 of which are employed by MTU Maintenance.

8 Global MTU Aero Engines workforce MTU Aero Engines has a total workforce of around 9,000 employees worldwide 4,000 of which are employed by MTU Maintenance. Around 7,300 people work at our locations in Germany: 4,700 in Munich 1,900 in Hannover 700 in Berlin-Brandenburg. MTU Aero Engines workforce is made up of 48 different nationalities

9 MTU s history from 1934 to date BMW Flugmotorenbau GmbH is founded 1957 BMW Triebwerkbau 1989 MTU becomes an affiliate of Deutsche Aerospace, later renamed DaimlerChrysler Aerospace (DASA) 2005 MTU goes public 2000 MTU becomes a directly managed DaimlerChrysler company 1945 BMW Siemens & Halske Daimler Benz 1965 MAN takes over BMW Triebwerkbau 1969 MTU 50% Daimler Benz 50% MAN Today Shareholder structure: 91% Institutional investors 7% Private shareholders 2% MTU-owned shares

10 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

11 Commercial aviation a growth market Until 2036: Passenger traffic with rate of 4.5% p.a. = Doubling of overall active aircraft fleet worldwide 7,100 billion passenger kilometers in ,000 billion passenger kilometers in ,000 active aircraft in ,000 active aircraft in Quelle: Ascend, IATA, MTU 11

12 Major players in the engine market OEMs Engine subsystem suppliers Engine component suppliers Material suppliers

13 An airline s operating costs 8% Tickets, sale and service 9% Taxes and fees Miscellaneous 2% Fuel 30% 15% A/C Ownership MTU s products and services can significantly reduce costs for ~ 35% operating costs. 11% Maintenance (Aircraft & Engine) Workforce and operation 25%

14 MTU a key partner to the OEMs 6% Others 32% 39% Revenue in the commercial engine business in 2016: 2.4 billion 23%

15 MTU a key partner to the OEMs Program MTU s OEM partners Program share 16% 15 18% 6.6% 4% 22.5% MTU is the partner of choice for Pratt & Whitney and GE Aviation in the major engine programs. * IAE: International Aero Engines a joint venture of Pratt & Whitney, Japanese Aero Engine Corporation and MTU Aero Engines

16 Major players in the commercial maintenance market MTU is among the TOP 5 maintenance providers for commercial engines. Source: ACAS December 2014 Active engines under contract, commercial aircraft excluding turboprops and business jets

17 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

Turbine center frame High-pressure turbine Combustion chamber

18 MTU competency Development/Production Low-pressure turbine Turbine center frame High-pressure compressor Maintenance Low-pressure turbine Turbine center frame High-pressure turbine Combustion chamber High-pressure compressor Low-pressure compressor Fan MTU components

19 40 Years experience in compressor development Demo program Engine program EJ200 LPC / HPC PW6000 TP400 IPC GTF family Market entry RB199-IPC, HPC Approx. 20 Technology Compressors in 40 years HPC12 / JTDP NGSA Rig Next generation GTF

RB199-IPT Next generation GTF ADP Demo Clean

20 40 years experience in low-pressure turbines, from conventional to high-speed LPTs High Speed Demo Engine Program V2500 PW4000 PW6000 GP7000 GTF family Market entry RB199-IPT Next generation GTF ADP Demo Clean Demo GTF Rig

21 MTU technology agenda BASIS Claire 1 Claire 2 Claire 3 15% 40% 25% 50% 40% 65% V2500 Geared turbofan Ultra-low fan pressure ratio engine Integrated ultra efficient engine CO 2 in % noise emission in %

Enabler Product MTU s technology roadmap Integrated compressionsystem Optimal high speed LPT & TCF High temperature light weight LPT materials

22 Enabler Product MTU s technology roadmap Integrated compressionsystem Optimal high speed LPT & TCF High temperature light weight LPT materials Additive Manufacturing Virtual Design & Production The most sophisticated level of technology in accordance with ambitious cost goals

temperature level 3 stage LPC 10 stage HPC 2 stage HPT 7 stage LPT Source: cfmaeroengines The new GTF offers operators

23 Geared turbofan versus conventional turbofan higher propulsive efficiency higher low spool component efficiency shorter, lighter Source: P&W FDGS 3 stage LPC 8 stage HPC 2 stage HPT 3 stage LPT 25% less stages 45% fewer airfoils lower cycle temperature level 3 stage LPC 10 stage HPC 2 stage HPT 7 stage LPT Source: cfmaeroengines The new GTF offers operators significant improvements in fuel burn and maintenance costs and with over 8,000 engines on firm order already a bestseller

75% Today s aircraft with conventional turbofan A320neo powered by

24 Geared turbofan: Appreciable reduction in noise Example: Munich Airport Reduction in noise footprint by approx. 75% Today s aircraft with conventional turbofan A320neo powered by the geared turbofan Sound Exposure Level (SEL) footprint (db)

25 Development of jet engines % 1 Turbojet: JT3C (707) 20% Turbofan: 1st generation BPR* = 2, JT8D (727, 737) 12% Turbofan: 2nd generation BPR = 4-6, PW2000 (757) % Turbofan: 3rd generation BPR = 7-8, PW4000, GE90 (777) 16% Geared turbofan BPR ~ 10-12, PW1000G (A320neo) 10% Ultra-low fan pressure ratio engine, BPR ~ Integrated ultra efficient engine 1 SFC*, CO 2 % * BPR: Bypass Ratio; SFC: Specific Fuel Consumption

26 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

Commercial engine business New geared turbofan generation went into revenue service in 2016: Fuel burn and CO 2 emission reduced by 16%, noise cut in half

27 Commercial engine business New geared turbofan generation went into revenue service in 2016: Fuel burn and CO 2 emission reduced by 16%, noise cut in half Growth across all market segments: Ten development programs running at the same time Balanced portfolio: From business jet to widebody aircraft

28 Key commercial engine programs Pounds (thrust) 100,000 80,000 60,000 40,000 20,000 Cessna Bravo Falcon 7X Gulfstream G500 Airbus A320neo Airbus A320 Boeing 757 Airbus A300/ A330 Boeing 787 Airbus A380 Boeing 777 Boeing 777X

29 Military engine business European cooperation partner and transatlantic systems company Cooperation partner to the Federal Armed Forces in all key military engine programs Partner in U.S. military programs

30 Key military engines Panavia Tornado Eurofighter Typhoon Transall A400M Tiger Sikorsky CH-53 Boeing C-17 CH-53K F/A-18E/F/ EA-18G Boeing F

31 Commercial maintenance Market success: Customer base of 150 airlines worldwide Contract volume: Over 7 billion U.S. dollars Number of shop visits: More than 17,000 engines repaired and overhauled worldwide

CF34-series PW200/300/500 Industrial gas

32 Commercial maintenance the key products Large commercial engines V2500 CFM56-series CF6-series GE90-series PW2000 Small commercial engines CF34-series PW200/300/500 Industrial gas turbines LM2500/2500+ LM5000 LM6000 Services solutions Aircraft on-ground/ on-wing services Leasing Spare engines Repair procedures

33 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

34 Revenue in million 4, , , OEM business 2, , ,401.2 OEM business 2,905.2 Commercial engine business Military engine business Commercial maintenance

35 EBIT adjusted, in million OEM business Commercial maintenance

36 Financial Highlights 2016 Revenues (m ) EBIT adj. / EBIT adj. Margin (m / %) % ,9% % 10,6% % 10% 8% 6% 4% 2% 0 FY 2015 FY FY 2015 FY % Net Income adj. / EPS adj. (m / ) Free Cash Flow (m ) ,74 6,01 +13% FY 2015 FY ,00 6,00 5,00 4,00 3,00 2,00 1,00 0, % FY 2015 FY Conference Call with Investors and Analysts 36

37 Agenda The company Aviation and engine market MTU s know-how Business segments Financials Corporate responsibility

Corporate Responsibility Sustainable business practices Compliance, corporate governance, risk management, ratings & rankings Environmental protection MTU climate strategy, environmental management

38 Corporate Responsibility Sustainable business practices Compliance, corporate governance, risk management, ratings & rankings Environmental protection MTU climate strategy, environmental management on the shop floor Product responsibility Eco-efficient engines/clean Air Engine, sustainable production and maintenance procedures, European SRIA standards* Responsibility toward employees Occupational health & safety, work-life balance, development of young talent Commitment to society Economic cooperation/support of universities and research institutes, local sponsoring * Strategic Research and Innovation Agenda

39 Thank you very much for your attention

40 Proprietary Notice This document contains proprietary information of the MTU Aero Engines AG group companies. The document and its contents shall not be copied or disclosed to any third party or used for any purpose other than that for which it is provided, without the prior written agreement of MTU Aero Engines AG. 2/23/2017 The Company 40

MTU Aero Engines Lifetime Excellence. July 2018

MTU Aero Engines Lifetime Excellence Agenda Our 1 environment Our 2 track record Our 3 expertise Your 4 questions 46,000 Aircrafts The globally active fleet of 23,000 aircrafts will double by 2036. Less