munich, 2017 - mtu aero · pdf filedevelopment of jet engines 04.05.2017 25 ... the...

The Company Munich, 2017

© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

Agenda

The company

Aviation and engine market

MTU‘s know-how

Business segments

Financials

Corporate responsibility


MTU Aero Engines’ business model

Commercial engine business

Share in sales: ~ 50%

• Balanced portfolio of products in all

thrust categories

• Partnerships with OEMs going back

decades


• European and U.S. engine programs

• Lead industrial partner to the German

Armed Forces


• Access to high-growth segments

• Provider of services to airlines

worldwide

Military engine business Commercial maintenance

04.05.2017 4


Calendar years after program launch

Return on investment in the commercial engine business

Cumulated

cash flow

GE9X

777X

Entry into service

V2500

A320

PW2000

PW4000

757, C-17

777

CF6-80

LM6000

747, 767, IGT

A300, A310, A330

40

PW1000G-family

A320neo, E2-Jet, C Series,

MS-21, MRJ

GEnx

787

747-8

GP7000

A380

+

- 0

R & D Maintenance

Production

Phase-out

Pre-devel-

opment

04.05.2017 5


Employees & Competence

Balanced

portfolio

Benchmark

Competitiveness Leading

technology

Profitable

growth

Va

lue

to

cu

sto

mers

& p

art

ners

Pillars of MTU’s corporate strategy

04.05.2017 6


Vericor Power Systems

MTU AENA

MTU Maintenance Dallas

MTU Maintenance Canada

MTU Maintenance

Berlin-Brandenburg

Pratt & Whitney Canada

Customer Service

Centre Europe

Ceramic

Coating Center

MTU Maintenance Hannover

MTU Maintenance Lease Services

MTU Aero Engines ,Headquarters Munich

Aerospace Embedded Solutions

MTU Aero Engines

Polska

MTU Maintenance Zhuhai

50% MTU

50% China Southern

Airfoil Services (ASSB)

50% MTU; 50% LHT

OEM business

Engine MRO

Parts repair

Main company locations worldwide

04.05.2017 7


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.

04.05.2017 8


1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

1934 BMW Flugmotorenbau

GmbH is founded

1957 BMW

Triebwerkbau

1945 BMW

Siemens & Halske

Daimler Benz

1965 MAN takes over

BMW Triebwerkbau

1989 MTU becomes an affiliate of

Deutsche

Aerospace, later

renamed DaimlerChrysler

Aerospace (DASA)

2000 MTU becomes a directly

managed

DaimlerChrysler company

2005 MTU goes public

1969 MTU

50% Daimler Benz

50% MAN

Today

Shareholder structure:

91% Institutional investors

7% Private shareholders

2% MTU-owned shares

MTU’s history from 1934 to date

04.05.2017 9


Agenda

The company


MTU‘s know-how

Business segments

Financials



23,000 active aircraft in 2016

45,000 active aircraft in 2036

Commercial aviation – a growth market

7,100 billion passenger kilometers in 2016

17,000 billion passenger kilometers in 2036

Quelle: Ascend, IATA, MTU

Until 2036:

Passenger traffic with rate of

4.5% p.a.

=

Doubling of overall active

aircraft fleet worldwide

04.05.2017 11


Material suppliers

Engine component suppliers

Engine subsystem suppliers

OEMs

Major players in the engine market

04.05.2017 12

http://en.wikipedia.org/wiki/Image:MHI_logo.jpg

http://www.hanwhatechwin.com/


An airline’s operating costs

04.05.2017 13

Fuel 30%

Miscellaneous 2%

Workforce and operation 25%

11% Maintenance

(Aircraft & Engine)

15% A/C Ownership

9% Taxes and fees

8% Tickets, sale and service

MTU’s products and services can

significantly reduce costs for ~ 35%

operating costs.


32%

23%

39%

6% Others

Revenue in the commercial

engine business in 2016:

€ 2.4 billion

MTU – a key partner to the OEMs

04.05.2017 14


Program

MTU‘s OEM partners

Program share 22.5% 15 –18% 6.6% 16% 4%

* IAE: International Aero Engines a joint venture of Pratt & Whitney, Japanese Aero Engine Corporation and MTU Aero Engines

MTU is the partner of choice for Pratt & Whitney and

GE Aviation in the major engine programs.

MTU – a key partner to the OEMs

04.05.2017 15


Major players in the commercial maintenance market

Source: ACAS December 2014 – Active engines under contract, commercial aircraft excluding turboprops and business jets

MTU is among the TOP 5 maintenance providers

for commercial engines.

04.05.2017 16


Agenda

The company


MTU‘s know-how

Business segments

Financials



MTU components

Development/Production

Low-pressure turbine

Turbine center frame

High-pressure turbine

Combustion chamber

High-pressure compressor

Low-pressure compressor

Fan

Low-pressure turbine

Turbine center frame

High-pressure compressor

Maintenance

MTU competency

04.05.2017 18


Demo program

Engine program

40 Years experience in compressor development

04.05.2017 19

Approx. 20 Technology

Compressors in 40 years

1970 1980 1990 2000 2010 2020

Market entry

RB199-IPC, HPC

EJ200 LPC / HPC TP400 IPC GTF family

NGSA Rig HPC12 / JTDP

PW6000

Next generation

GTF


High Speed Demo

Engine Program

40 years experience in low-pressure turbines, from conventional to high-speed LPTs

04.05.2017 20

1970 1980 1990 2000 2010 2020

V2500 PW4000

GP7000

GTF family

ADP Demo

PW6000

Market entry

RB199-IPT

Clean Demo GTF Rig

Next generation

GTF


2000 2015 2030 2050

V2500 Ultra-low

fan pressure

ratio engine

BASIS Claire 1 Claire 2 Claire 3

Integrated

ultra

efficient

engine

15% 25% 40% 40%

Geared

turbofan

50% 65%

∆ CO2 in %

∆ noise emission in %

MTU technology agenda

04.05.2017 21


MTU‘s technology roadmap

The most sophisticated level of technology in accordance with ambitious cost goals

Pro

du

ct

En

ab

ler

Integrated

compression-

system

Optimal high

speed LPT

& TCF

High temperature

light weight

LPT materials

Additive

Manufacturing

Virtual Design

& Production

04.05.2017 22


Geared turbofan versus conventional turbofan

• higher propulsive

efficiency

• higher low spool

component efficiency

• shorter, lighter

Source:

P&W

Source:

cfmaeroengines

• 25% less stages

• 45% fewer airfoils

• lower cycle temperature level

FDGS

3 stage LPC

8 stage HPC

2 stage HPT

3 stage LPT

3 stage LPC

10 stage HPC

2 stage HPT

7 stage LPT

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.

04.05.2017 23


Example: Munich Airport

Today’s aircraft with conventional turbofan A320neo powered by the geared turbofan

Reduction in noise

footprint by approx.

75%

Geared turbofan: Appreciable reduction in noise

04.05.2017 24

75 80 85 90 95

Sound Exposure Level (SEL) footprint (dB)


* BPR: Bypass Ratio; SFC: Specific Fuel Consumption

1950

2050

2015

Integrated ultra

efficient engine

18%1 Turbojet:

JT3C (707)

20% Turbofan: 1st generation

BPR* = 2, JT8D (727, 737)

12%

Turbofan: 2nd generation

BPR = 4-6, PW2000 (757)

12-20% 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 ~ 15-20

1∆SFC*, ∆CO2 %

Development of jet engines

04.05.2017 25


Agenda

The company


MTU‘s know-how

Business segments

Financials




New geared turbofan generation went into revenue

service in 2016:

Fuel burn and CO2 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

04.05.2017 27


20,000 40,000 60,000 80,000

100,000

Pounds (thrust)

Airbus

A380

Airbus

A320 Gulfstream

G500

Falcon

7X

Cessna

Bravo

Boeing

757 Airbus

A320neo

Boeing

777X

Boeing

777 Airbus

A300/

A330

Boeing

787

Key commercial engine programs

04.05.2017 28


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

04.05.2017 29


F/A-18E/F/

EA-18G

Tiger Transall Eurofighter

Typhoon

Panavia

Tornado

Sikorsky

CH-53 A400M Boeing

F15 Boeing

C-17

CH-53K

Key military engines

04.05.2017 30


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

04.05.2017 31

http://www.ilovechile.cl/wp-content/uploads/2013/03/LATAM-logo-e1363883577910.png

http://en.wikipedia.org/wiki/File:Gol_logo.png


Small commercial

engines

• CF34-series

• PW200/300/500

Large commercial

engines

• V2500

• CFM56-series

• CF6-series

• GE90-series

• PW2000

Industrial gas

turbines

• LM2500/2500+

• LM5000

• LM6000

Services

solutions

• Aircraft on-ground/

on-wing services

• Leasing

• Spare engines

• Repair procedures

Commercial maintenance – the key products

04.05.2017 32


Agenda

The company


MTU‘s know-how

Business segments

Financials




Military engine business

Commercial maintenance 2,414.0 2,401.2

483.1 504.0

1,580.6 1.914.1

4,435.3 4,732.7

OEM

business

2,905.2

OEM

business

2,897.1

2015 2016

Revenue in million €

04.05.2017 34


OEM business

Commercial maintenance 285.0

321.5

155.2

181.5

2015 2016

EBIT adjusted, in million €

04.05.2017 35

440.3

503.0


72

82

0

20

40

60

80

100

FY 2015 FY 2016

307345

6,016,74

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

0

50

100

150

200

250

300

350

400

450

FY 2015 FY 2016

440503

9,9%10,6%

0%

2%

4%

6%

8%

10%

12%

0

100

200

300

400

500

600

700

FY 2015 FY 2016

4.4354.733

0

1.000

2.000

3.000

4.000

5.000

FY 2015 FY 2016

Financial Highlights 2016

Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %)

Net Income adj. / EPS adj. (m€ / €) Free Cash Flow (m€)

36

7%

+14%

+13%+14%

23.02.2017 Conference Call with Investors and Analysts


Agenda

The company


MTU‘s know-how

Business segments

Financials



* Strategic Research and Innovation Agenda

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

04.05.2017 38

Thank you very much for your attention


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

Proprietary Notice

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