MTU Aero Engines Lifetime Excellence. July 2018

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Transcription:

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 than 2 billion people out of 7 billion have flown in an aircraft to date.

Up to 6 million components A passenger aircraft is made up of up to 6 million components.

In 100 Years is a pilot once forced to shut down an engine.

2.9 liters of kerosene fuel consumption per 100 passenger kilometers.

75 % of the noise footprint is reduced by the geared turbofan.

We shape the future of aviation!

MTU pursues a sustainable growth strategy in all of its business segments - based on stable and long-term customer relationships Balanced portfolio Leading technology Benchmark competitiveness Innovative culture

Our track record Partners and customers appreciate MTU s excellence.

MTU looks back on many important names from the German industrial history from 1934 to date 1934 BMW Flugmotorenbau GmbH is founded 1969 MTU 50 % Daimler Benz 50 % MAN 2005 MTU goes public 1965 MAN takes over BMW Triebwerkbau 1989 MTU becomes an affiliate of Deutsche Aerospace, later renamed DaimlerChrysler Aerospace (DASA) Today Shareholder structure 93 % Institutional investors 6 % Private shareholders 1 % MTU-owned shares Focus on military applications Focus on commercial applications

MTU is an essential partner in the engine value chain Material suppliers* Engine component suppliers* Subsystem/module suppliers* Engine OEMs* Airframers* Airline operations MRO Engine MRO *selected market participants OEM market Aftermarket

Cumulated cash flow A balanced portfolio and products in all thrust categories ensure MTU s long-term success Return on investment periods in the commercial OEM business + Entry into service V2500 A320 CF6-80, LM6000 747, 767, IGT A300, A310, A330 0 GEnx 787, 747-8 PW2000 PW4000 757, C-17 777 40 - GE9X 777X PW1000G family A320neo, E2-Jet, A220, MS-21, MRJ GP7000 A380 Calendar years after market launch Production Production Technology R&D Aftermarket

Our track record: partners and customers appreciate MTU s excellence Commercial OEM business Military OEM business Commercial MRO business

Our track record: partners and customers appreciate MTU s excellence Commercial OEM business Military OEM business Commercial MRO business Revenues: 2.5 billion (48 %)* Decades of partnerships with OEMs Balanced product portfolio in all thrust categories Order volume secures business into the next decade Partnerships with OEMs increasingly include maintenance Revenues: 0.4 billion (8 %)* European and U.S. engine programs Full system capability Leading partner of the German Armed Forces Service packages precisely tailored to the requirements of military partners Revenues: 2.3 billion (44 %)* Services: maintenance, leasing and asset management Global network Direct customer business, partner of OEMs and airlines 18,000 shop visits in 36+ years More than 1,400 customers, including over 200 airlines OEM MRO Revenues 2.9 billion* EBIT adj. 0.4 billion* Revenues 2.3 billion* EBIT adj 0.2 billion* * Basis: Fiscal 2017

Our track record: partners and customers appreciate MTU s excellence Commercial OEM business Military OEM business Commercial MRO business

In the commercial OEM business, 30 % of today s aircraft have MTU technology on board and MTU is growing faster than the market as a whole Commercial OEM business Business jets Regional jets Narrowbodies Widebodies Revenues will triple in 10 years Market share will increase from 0 % to 90 % Excellent market position will further improve New market segments have opened up Above-average growth

Our track record: partners and customers appreciate MTU s excellence Commercial OEM business Military OEM business Commercial MRO business

The military OEM business has been the basis for MTU's system capability for more than 80 years now Military OEM business Growing responsibility and increasing complexity A400MP400 TTP400-D6 Bo-105 Eurofighter RR250 EJ200 Tornado RB199 Tiger Phantom79 MTR390 Ju52 JJ79 BMW132 MTU founded as BMW Flugmotoren GmbH Production under license Conventional MRO Integrated services Cooperation with the German Armed Forces Performance-oriented logistics & service concept 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s

Our track record: partners and customers appreciate MTU s excellence Commercial OEM business Military OEM business Commercial MRO business

MTU is one of the world s leading service providers with the largest portfolio and the strongest growth rates in the market Commercial MRO business Direct customer business OEM partnerships Airline partnerships Efficient flowline production in Hannover Advanced GP7000 tested Partnership with China Southern Airlines Analysis, consulting and engine expertise Standardization and industrialization of processes MRO know-how: processes, systems, people Customized and flexible solutions Reduction of costs and sharing of investments Best practice in a best-cost environment

In 2017, MTU achieved record sales and earnings once again we keep our promises 2017 financial figures Revenues [million ] 4,733* +6 % 5,036* 1,914 +19 % 2,285 EBIT adj. [million ] 503 182 +21 % +7 % 607 194 Net Income [million ] 345 +24 % 429 Free Cash Flow [million ] 151 82 +84 % 504-20 % 404 2,401 +3 % 2,469 322 +28 % 412 FY 2016 FY2017 FY 2016 FY2017 FY 2016 FY 2017 FY 2016 FY 2017 Comm. OEM business Military OEM business Total OEM business Comm. MRO Total * Consolidated values

Our expertise MTU possesses unique capabilities and has a wealth of know-how.

MTU possesses unique capabilities and has a wealth of know-how Expertise Technology Processes Partnerships People Locations We are continuously expanding our technological lead by identifying and setting revolutionary trends We deliver on time, with the right quality and at reasonable costs digitalization opens up further potential for MTU, sustainability is our basic principle We enter into sustainable partnerships an essential prerequisite for MTU s long-term success We boast more than 10,000 engine experts innovative and competent Through our 14 locations worldwide, we are close to our customers

Boasting comprehensive system expertise, MTU focuses on five core engine competencies - three core components and on unique manufacturing and maintenance processes 1 High-pressure compressor (HPC) 2 Low-pressure turbine (LPT) 4 5 Manufacturing Maintenance 3 Turbine center frame (TCF) Technology 26

The geared turbofan is setting new standards - together with our partners, MTU will continue to expand its technological leadership in the future Technology today and tomorrow The geared turbofan today The next-generation geared turbofan (EIS 2030+) 16 % reduction in fuel burn Lowest fan-pressure ratios at very high bypass ratios BPR 14 20* Very high overall pressure ratio OPR 60+ ** within the highly integrated compressor system Approx. 75 % reduction of the noise footprint Fewer emissions CO 2 / NO x MRO cost savings 25 % fewer stages, 45 % fewer blades, lower operating temperature Temperature-resistant lightweight materials High-speed, highly efficient expansion system Source: P&W * BPR = Bypass Ratio ** OPR = Overall Pressure Ratio

We deliver on time, in the right quality and at reasonable costs - digitalization opens up further potential for MTU, sustainability is our core principle Processes Research & Development Program Management Production Service In-depth understanding of the system Long-term partnerships Highly automated and best-cost Many years of experience with the customer in the center of consulting competence Our aim is to continuously improve the products Business secured for the next generation Total volume to double in the next 5 years Optimization of operating costs, maximum asset utilization and recycling and remarketing, reduced risks 1,000 engineers, 6 centers of competence and 17 university cooperations Balanced portfolio with content in all thrust categories 6,300 suppliers Cutting-edge technologies Sustainability & digitalization

As a technology leader, MTU uses digitalization primarily to further optimize processes and tools, i.e. to continuously increase efficiency and reduce costs Digitalization Business 4.0 Technology 4.0 MRO 4.0 Production 4.0 Supply Chain 4.0

As a company, we take responsibility for our products, employees, customers, the environment and our society Sustainability Product responsibility Responsibility toward employees Environmental protection Sustainable business practices Commitment to society

We create sustainable partnerships an essential prerequisite for MTU s long-term success Research & Development Production Programs Service 6 centers of competence 17 cooperations with universities National and EU research projects Technology network 6,300 suppliers Long-term partnerships Double sourcing Pratt & Whitney General Electric Rolls-Royce, Safran, Avio, ITP Air forces Airline customers OEM networks Airline joint ventures External vendors Sumitomo Air forces Risk minimization Risk minimization Increase in efficiency Increase in efficiency Complementary technology Complementary technology Revenues/market access

We boast more than 10,000 innovative and competent engine experts 50 different nations work under the umbrella of MTU Aero Engines Approx. 20 years is the average job tenure of MTU s workforce (in Germany) Approx. 80 % of the total workforce are engineers or technicians* 350 apprentices at German locations incl. scientists

We are innovative and competent customer-oriented committed reliable high-tech connected sustainable results-oriented excellent efficient

With our 14 locations worldwide we are close to our customers MTU Maintenance Hannover MTU Aero Engines Polska MTU Maintenance Canada MTU Maintenance Dallas MTU AENA Vericor Power Systems MTU Maintenance Lease Services Ceramic Coating Center MTU Maintenance Berlin-Brandenburg Aerospace Embedded Solutions MTU Aero Engines, Munich headquarters Pratt & Whitney Canada Customer Service Center Europe MTU Maintenance Zhuhai 50 % MTU 50 % China Southern Airfoil Services (ASSB) 50 % MTU 50 % LHT Engine MRO OEM business Parts repair

For questions relating to our company our technological expertise our commercial engine business the sustainability of our products our commercial service portfolio our financial figures our military engine business job opportunities at MTU our military service portfolio Click the relevant icon for more information

Let s shape the future together!

Thank you.

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.