MTU Press Conference Engines of the future MTUs contribution to - - PowerPoint PPT Presentation

MTU Press Conference – „Engines of the future – MTU’s contribution to meeting tomorrow’s market requirements “

Reiner Winkler, CEO Michael Schreyögg, Chief Program Officer Berlin, May 21, 2014

• 6. Mai 2014

2

Commercial aviation is a global Multi Billion US-$ Industry

Airlines Aircraft Deliveries Engine Deliveries Engine MRO

• approx. 3 bn pax
• 650 bn US$ revenue
• 12.9 bn US$ profit
• 1,350 aircraft
• approx.100 bn US$

revenue

• 2,800 engines
• approx. 15 bn. US$

revenue

• 7,200 engines
• approx. 21 bn. US$

revenue

Today: ~ 21,000 active aircraft

Quelle: IATA, Flightglobal Insight

Until 2035: ~ 40,000 active aircraft

• 6. Mai 2014

3 Source: MTU, Ascend Note: includes airliners, freighter & regional jets

Robust growth in air traffic leads to growing demand of aircraft

Billion passenger kilometers No. Aircraft Forecast (4,6% p.a. Growth) History

4000 8000 12000 16000

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

1000 2000 3000 4000

Passagierluftverkehrsprognose 2014-2033 (MTU) Passagierluftverkehr 1980-2013 Auslieferungen Auftragseingänge

Pax traffic forecast 2013-2032 Pax traffic 1980-2012 Aircraft firm orders Aircraft deliveries

• 6. Mai 2014

4

MTU is Built on Three Pillars

* FY2013 – figures

Commercial Business Military Business Commercial MRO

• Partner of all major OEMs
• Focus on Low-Pressure

Turbines and High-Pressure Compressors

• Approx. 30% of active aircraft

with MTU participation

• Capability to develop and

manufac-ture entire engines

• R&D is typically customer

financed

• MTU has high shares in key

European military programs

• One of the world's largest

engine MRO provider

• Exposure to highest growth

engines (V2500, CFM56, CF34, GE90)

• Strong presence in Asia

EBIT margin* Business Sales* MTU Group* € 1,891m (50%) € 500 m (13%) € 1,382 m (37%)

OEM MRO

11.0% 8.2% Sales: € 3,742 m / EBIT margin: 10.1%

• 6. Mai 2014

5

MTU Milestones

Timeline

Strong Position in all Segments

2018

New Widebody Engine

201x

A320neo & C-Series First Delivery

2015

IAE Upshare (16%)

2012

GE90 MRO Success

2011

GTF Milestone (18%)

2011

A320neo First Flight

2014

Embraer selects GTF for 2nd gen

2013

• 6. Mai 2014

6

Airline requirements and challenges for the engine

Primary requirements of the market

Profitability Aircraft Performance Rules and Regulations Passenger Comfort

• 6. Mai 2014

7

Total Cost Breakdown of Airlines

Share of operational cost (illustrative)

Quelle: IATA

• 6. Mai 2014

8

Challenges OEM segment

• Availability of key technologies and processes
• New engine concepts
• Optimized aerodynamics
• New high temperature materials
• New manufacturing concepts
• Virtual manufacturing
• Number of development programs

in parallel

• 6. Mai 2014

9

New blisk production Improved manufacturing Expansion Poland site Assembly neo engine New logistic center Supplier development

Important ramp-up projects

• 6. Mai 2014

10

CLAIRE – MTU‘s Clean AIR Engine technology program

Targest CLAIRE technology program

• 100%
• 80%
• 60%
• 40%
• 20%

0% 2000 2015 2030 2050

CO2 Noise

Basis

Geared Turbofan

CLAIRE 1

Ultra High Bypass Ratio Engine

CLAIRE 2

Integrated Ultra Efficient Engine

CLAIRE 3

• 6. Mai 2014

11

Commerical OEM business – Overview 2014

• Development of all programs on track
• First flight A320neo
• Ramp up new programs

• 6. Mai 2014

12 12

Military Segment – Overview 2014

• Further deliveries of A400M to the customers
• Focus on services for German customer
• Key technologies for future engines

• 6. Mai 2014

13

Commercial MRO Business – Overview 2014

• New contracts amounting 1.4 bn USD and 30 new

customers solely for MRO business (2013)

• Contract volume > 5.5 bn USD (March 31, 2014)
• Market share: 8%
• “OEMRO” – aftermarket opportunities for new

programs

• Independent MRO provider with tailor-made

alternative solutions

• Expansion of the engine lease business through

Sumitomo

• 6. Mai 2014

14

Summary

Attractive market environment

• Passenger growth 4.6 percent per year
• Record level: backlog of 11,200 aircraft
• Growing airline profits
• Beneficial financing opportunities

Strong market position in all segments

• Strong deliveries of V2500, GEnx and GP7000
• From 2014 onwards steep ramp up of GTF family
• GTF will significantly increase MTUs future market share
• Aftermarket growth via V2500; until 2020 increasing share

through GEnx and GP7000 MTU Outlook 2014

• Revenue growth to 3.75 bn. Euro
• Adjusted EBIT on previous year‘s level ~ 370 million Euro

Thank you for your attention!