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

0

4000

8000

12000

16000

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

0

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!