Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Investor Day (November 2015)
81 slides from Mtu Aero Engines's investor day presentation, Nov 25, 2015
Slide 1: Investor & Analyst Day 2015
Investor & Analyst Day 2015 MTU Aero Engines AG London, 25 November 2015
Slide 2: Agenda – MTU Investor and Analyst Day 2015
Agenda – MTU Investor and Analyst Day 2015 Time Agenda Speaker 11:00 – 11:10 Welcome Michael Röger 11:10 – 11:20 Excellent Position in an Attractive Market Reiner Winkler Geared Turbofan: Flying and Producing 11:20 – 12:10 Efficiently Dr. Rainer Martens Technology Roadmap: Key for Success Geared up
Slide 3: Agenda – MTU Investor and Analyst Day 2015
Agenda – MTU Investor and Analyst Day 2015 Time Agenda Speaker 13:00 – 14:00 Lunch Break Flight hour Agreements: Beneficial for the Reiner Winkler 14:00 – 14:40 Operator and MRO Provider Michael Schreyögg 14:40 – 15:20 Financials & Outlook Reiner Winkler 15:20 End of Conference 25 November 2015 Inve
Slide 4: Excellent Position in an Attractive Market
Excellent Position in an Attractive Market Reiner Winkler, Chief Executive Officer London, 25 November 2015
Slide 5: Market Overview
Market Overview Status Market Indicator 2014 A 2015 E 2016 E Passenger Traffic +6.0% +6.7% Airline Profits $16 bn $29 bn Crude Oil (Brent) 100 $ 54 $ Airliner Deliveries 1,350 ~ 1,390 Airliner Orderbook 11,520 11,710 Airliner Engine Fleet 41,410 43,350 Source: IATA, Ascend, EIA 25 November 2015 In
Slide 6: Commercial OEM: Milestones Set for Future Growth
Commercial OEM: Milestones Set for Future Growth • Over 7,000 GTF engines on firm order or • First development modules for GE9X in optioned production • PW1100G-JM (A320neo) received its FAA certification in Jan 2015 • GTF performance in flight test programs according to plan • Ramp up of new engine
Slide 7: Military Business: Stable Business with Strong Export Potential
Military Business: Stable Business with Strong Export Potential • In • Kuwait signed a MoU for 28 Eurofighter • MTU received the EASA certification for Typhoon aircraft maintaining TP400 • TP400 engine production fully ramped up • First flight of CH-53K powered by GE38 took place in October 25 Novem
Slide 8: MRO: Workload Secured for Decades
MRO: Workload Secured for Decades • MTU signed MRO network agreement for • MTU Maintenance Hannover started the PW1100G-JM in Jun 2015 maintenance work for airlines in Iran • Optimization of V2500 FhA agreements • GEnx TCF MRO capability established on track 25 November 2015 Investor & Analyst Day 2
Slide 9: MTU's Agenda for 2016
MTU’s Agenda for 2016 • Assembly line for the PW1100G-JM engine in operation • GTF module production ramped up according to plan • Position of MTU in the changing MRO market environment optimized • Continuous improvement of Flight hour Agreement performance • MRO readiness at MTU Maintenance Hannove
Slide 10: Geared Turbofan: Flying and Producing Efficiently
Geared Turbofan: Flying and Producing Efficiently Dr. Rainer Martens, Chief Operating Officer London, 25 November, 2015
Slide 11: The GTF Concept at a Glance: GTF versus Direct Drive Turbo Fan
The GTF Concept at a Glance: GTF versus Direct Drive Turbo Fan Source: • 25% less stages • higher propulsive P&W Fan drive gear 2 stg HPT • 45% less airfoils efficiency 3 stg LPC 3 stg LPT 8 stg HPC • lower cycle • higher low spool temperature component efficiency • shorter, lighter 2 stg HPT 7 stg
Slide 12: The GTF Concept at a Glance: Enabling a Reduced Noise Footprint
The GTF Concept at a Glance: Enabling a Reduced Noise Footprint Year 2000 Narrowbody aircraft Year 2015 leaving Munich airport GTF powered A320 NEO Noise footprint reduced by approx. 70% Noise Simulation: Pratt & Whitney SEL Contour Source: Wyle Laboratories GTF engines help protecting the environme
Slide 13: 2015 Development Milestones GTF Engines, PW800, GE9X and GE38
2015 Development Milestones GTF Engines, PW800, GE9X and GE38 PW1500G / PW1100G- PW1200G / PW1400G / PW1900G / PW800 / GE9X / GE38 / CSeries JM / MRJ MS-21 PW1700G / G500, B777X CH-53K A320neo E-Jet 2nd G600 Gen. First Engine to Test 2015 2015 Design 2016 Freeze Tested in Flying Testbed
Slide 14: Production Ramp Up
Production Ramp Up 2009 2015 2020 Turbines 800 1150 1850 Compressors 200 320 1580 Turbine Center 30 380 350 Frame Engine 30 110 290 Assembly Total 1060 1960 4070 +10% +15% Yearly increase Yearly increase MTU faces a steep increase in commercial engine business 25 November 2015 Investor & Analyst Day
Slide 15: Strategic Setup Production and Supply Chain
Strategic Setup Production and Supply Chain High Tech Mid - Low Tech Raw Material, Mid-Low Tech MTU AE Munich MTU AE Polska Supplier • Sophisticated parts and • Adopting established parts and • Raw parts production processes production lines from Munich • Finished parts as second source • Automation
Slide 16: Measures Ensuring MTU's Ramp Up Capability
Measures Ensuring MTU’s Ramp Up Capability Infrastructure Prime Supplier • Blisk-Building • Blisk • Logistic-Building • Blades and Vanes LPT • Extension MTU-Polska • Vanes HPC • NEO Assembly • Rings Building 076 • Supply-Chain Titan-Aluminid • MRO Readiness Hannover Infrastructure is in place Pr
Slide 17: Blisk Manufacturing
Blisk Manufacturing Production System Building 077 Changes, Improvements • Increase of machine hours per year from 3,500 to 6,000 • Increase of Blisk output per year from 500 to 3,600 • 50% reduction of indirect costs • More efficient use of area • Increase of shifts from 15 to 18 • Introduction of
Slide 18: New Logistics Building
New Logistics Building New Logistics Building Changes, Improvements • Increase of goods received per year from 80,000 to 115,000 within 5 years • Improved efficiency leads to a 14% reduction of process time • Efficient flow oriented processes • 30% reduction in lead time • Weather protected storage
Slide 19: Rotor, Stator Production
Rotor, Stator Production Production System Rotor Changes, Improvements • Reduction of small quantity part numbers by 70% • 12% reduction in hourly rate • 30% reduction in labor time for turning operations • Increase of disc quantity per year from 2,300 to 3,000 • Decommissioning of 14 machines clear
Slide 20: Extension Polska
Extension Polska Production MTU AE Polska Changes, Improvements • 20,000 sqm shop floor • 180k hours engineering capacity • Low labour rates • Execution of V2500 Upshare • ‘Mid Tech’ competencies are kept within MTU putting suppliers under pressure • GE9X Hub Strut Case production at lowest costs •
Slide 21: NEO Engine Assembly
NEO Engine Assembly Production System NEO Engine Assembly Changes, Improvements • New civil engine assembly line with 220 engines per year • Logistic system is based on pull/just-in- sequence principle • Flow oriented assembly line • High tech transportation and assembly system • IT-Supported work f
Slide 22: Summary GTF
Summary GTF • The GTF is a new revolutionary design with unmatched performance • The market success of this very efficient and successful product requires MTU’s supply chain to come to a new level of quantity and quality • Successful production ramp up in the past and already implemented activities
Slide 23: Technology Roadmap: Key for Success
Technology Roadmap: Key for Success Dr. Rainer Martens, Chief Operating Officer London, 25 November, 2015
Slide 24: Market Demands - Requirements for Future Engines
Market Demands - Requirements for Future Engines Next generation commercial & military engines Environment Business Performance improvement programs (PIP) Environmental regulations Flight hour Agreements Reduction of emissions and noise Requirements Aggressive production cost targets M
Slide 25: MTU's Technology Roadmap – Meeting the Requirements
MTU‘s Technology Roadmap – Meeting the Requirements Integrated Improve efficiency, weight, design Compression- and pressure ratios Product System Optimal High Improve efficiency, weight design, Speed LPT temperature and erosion/corrosion & TCF capability High Temp. Higher cycle parameters, reduce Li
Slide 26: Execution of MTU's Technology Roadmap – Technology Network
Execution of MTU‘s Technology Roadmap – Technology Network DLR Köln: • Computational Fluid Dynamics • Compressor Testing • Ceramic Matrix Composites University Hannover: RWTH & FhG Aachen: • Airfoil Dynamics • Compressor Aerodynamic • MRO • Manufacturing Technologies TU München: • Component Design U
Slide 27: Next Generation GTF - Characteristics
Next Generation GTF - Characteristics Ultra high BPR 14 -20 with lowest OPR 60+ fan pressure ratio integrated compression system Ultra efficient Newest light weight high speed and expansion system heat resistant materials BPR = By Pass Ratio OPR = Overall Pressure Ratio MTU’s Technolgy Roadmap will
Slide 28: Timeline of Future Engine Concepts
Timeline of Future Engine Concepts BPR 5 ∆SFC % OPR 36 ∆CO2 % V2500 BPR 12 - 15% 1st gen GTF BPR 14-20 OPR 60+ - 25% Source: ENOVAL 2nd gen GTF - 45% Future propulsion concepts 2000 2010 2020 2030 2040 2050 The geared jet engine concept offers a substantial improvement potential 25 November 2015 Inv
Slide 29: A few Words about Electric Flight: Basic Concepts
A few Words about Electric Flight: Basic Concepts Source: Airbus Electric Hybrid – electric • Thrust generated with fans driven by electric • Combined system consisting of gas turbine and motors. No gas turbines on board. fans driven by electric motors • Energy required for the electric motors is •
Slide 30: A few Words about Electric Flight: Technical Challenges
A few Words about Electric Flight: Technical Challenges Battery Technology: • For an application in short range regional jets todays batteries require a tenfold improvement in energy density as well as in power density – both requirements are contradictory • Extrapolating todays improvement in Batte
Slide 31: Summary Technology
Summary Technology • MTU‘s Technology Roadmap will lead to a next generation GTF – incorporating a wide range of new technologies • With the next generation GTF MTU is well positioned to cover the full range of thrust for future aircraft and applications • Turbo Engines will power aircrafts for a lo
Slide 32: Thank you for your attention! Questions & Answers
Thank you for your attention! Questions & Answers 25 November 2015 Investor & Analyst Day 2015 32
Slide 33: Geared up for Growth with a Broad Portfolio
Geared up for Growth with a Broad Portfolio Michael Schreyögg, Chief Program Officer London, 25 November 2015
Slide 34: Business Jet & Regional Jet Market
Business Jet & Regional Jet Market PW300/PW500/PW800 PW1200/PW1500 CF34 PW1700/PW1900 • Installed base of more • 3,400 orders and options • ~6,600 engines flying than 7,000 engines • GTF family exclusively • Exclusive powerplant for • 10 business jet powers future Regional current regional jets appl
Slide 35: Narrowbody Market
Narrowbody Market PW1100G-JM V2500 CFM56 • Strong order book • ~ 5,600 engines flying • Largest installed fleet • ~50% market share on • Strong growth of spare • Strong MRO growth A320neo family in total; parts sales until mid of • #1 independent provider: higher market share of next decade over 10%
Slide 36: Widebody Market
Widebody Market GE9X GEnX GE90-110/-115B • Revenue potential 4 bn€ • Market share of 60% on • ~ 1,500 engines flying; • 950 orders and options 787, exclusive on 747-8 strong MRO growth • Entry into service • In production since 2011 • Independent MRO offer expected in 2020 • ~770 engines in service
Slide 37: Military Business
Military Business GE38 TP400-D6 EJ200 • Power for CH-53K for US • Ramp up successfully • Strong revenue marine corps achieved contribution, both • Latest Technology • More than 100 engines OEM&MRO Turboshaft engine produced • 450 Eurofighter in service • First flight October 2015 • 16 aircraft are o
Slide 38: Emerging Markets Slowdown: A Severe Threat?
Emerging Markets Slowdown: A Severe Threat? Michael Schreyögg, Chief Program Officer London, 25 November 2015
Slide 39: Emerging Market Slowdown Represents a Risk for OE and Aftermarket
Emerging Market Slowdown Represents a Risk for OE and Aftermarket ● Emerging markets (EM) currently experience slower or negative GDP growth and large currency depreciations against the US$ This is caused by the slowdown in China, sliding commodity prices and the looming prospect of rising US intere
Slide 40: Method to Assess MTU's Exposure
Method to Assess MTU’s Exposure ● Top-down assessment ● 11 high risk EM countries identified UAE 0% Qatar Philippines Taiwan China ● GDP growth forecast downgrade for 2016 Thailand India -10% Egypt 12 month FX change Peru ● Currency devaluation vs. US$ in last 12m Chile Indonesia Hungary South Afric
Slide 41: Exposure of MTU Deliveries is Limited and Below Industry Average
Exposure of MTU Deliveries is Limited and Below Industry Average # engines to be delivered until 2018 [000] 4 100% (3,036 engines) 3 Advanced 2 Developing 42% 1 Emerging Markets 13% (EM) Flag carrier 7% High risk Non-flag carriers 0 MTU OEM portfolio EM High risk EM Non-flag carriers in high-risk EM
Slide 42: Exposure of MTU Fleet is also Limited and Below Industry Average
Exposure of MTU Fleet is also Limited and Below Industry Average # engines in service [000] 14 13,200 (100%) 12 Advanced 10 8 6 Developing 30% 4 Emerging 2 Markets 9% (EM) 4% High risk Flag carriers 0 Non-flag carriers MTU OEM portfolio EM High risk EM Non-flag carriers in high-risk EM Industry aver
Slide 43: MTU's Exposure to Emerging Markets: Limited and Manageable
MTU‘s Exposure to Emerging Markets: Limited and Manageable ● 11 emerging countries have been identified as high risk (Brazil, Russia, Mexico, Indonesia, Turkey, Poland, Colombia, South Africa, Malaysia, Chile, Peru) ● High risk EM have ordered 13% of MTU’s engines to be delivered in the next 3 years
Slide 44: MRO Business: Uniquely Positioned for Growth
MRO Business: Uniquely Positioned for Growth Michael Schreyögg, Chief Programm Officer London, 25 November 2015
Slide 45: MTU's Diversified Approach Ensures a Broad Market Coverage
MTU’s Diversified Approach Ensures a Broad Market Coverage OEM Airline 1 Independent 2 cooperation 3 cooperation • Over 700 customers (airlines, • MTU is OEM network partner • JV with China Southern MROs, lessors…) • MRO share is secured at • JV with Lufthansa Technik • #1 independent for engine pro
Slide 46: MTU's MRO Portfolio is the Basis for Future Growth
MTU’s MRO Portfolio is the Basis for Future Growth MRO Sales ($bn) 60 Market CAGR Approach Portfolio CAGR 2015-25 50 Total Market ~8% MTU-served ~10% 6% No access as - 40 of today 30 Independent CF34, CFM56, 8% or CF6, GE90G, 20 PW2000, Airline Cooperation V2500 10 17% OEM PW1000G, GEnx, Cooperation
Slide 47: Independent Business
1 Independent Business MARKET TRENDS CHARACTERISTICS MTU POSITIONING • Market CAGR ~8% over • Direct customer contact • Largest MRO portfolio, next 10 years • Highly competitive market with #1 independent • Increasing demand for strong price and performance • Tailored/ integrated solutions integrate
Slide 48: Independent: Evolution of MTU's Business Model
1 Independent: Evolution of MTU‘s Business Model From an engine MRO to a provider of service solutions Vertical integration End-of-life Long-term Engine MRO solutions for leasing/ financing operators and related services asset owners beyond MRO • Classic engine MRO • LRU management • Leasing • Parts
Slide 49: OEM Cooperation
2 OEM Cooperation MARKET TRENDS CHARACTERISTICS MTU POSITIONING • Increasing OEM market • OEM is contract holder • OEM program share secures coverage • Long term deals with focus MRO workload for decades • OEM-FHA share has grown on reducing life-cycle cost • Standardization of up to 40% • Competiti
Slide 50: Airline Cooperation
3 Airline Cooperation MARKET TRENDS CHARACTERISTICS MTU POSITIONING • 60% of global order books • Partners provide baseload • Local presence with high come from emerging markets volume and access to MTU quality standards • Strong growth young airlines licences • Activities in low-cost labor with lar
Slide 51: MTU Maintenance Zhuhai – A Success Story
3 MTU Maintenance Zhuhai – A Success Story Joint Venture with China Southern Air Holding Company Key Facts Fast Growing Chinese Market • 50:50 joint venture since 2001 Revenues Shop visits (bn. $) • Portfolio: V2500-A5, CFM56-3/5B/7 future potential: PW1100G, LEAP 13.7% 8.7% 7.6 1,254 CAGR CAGR • Ca
Slide 52: MTU's Diversified Approach Ensures a Broad Market Coverage
MTU’s Diversified Approach Ensures a Broad Market Coverage OEM Airline 1 Independent 2 cooperation 3 cooperation • Remain #1 provider with • Provide cost efficient • Develop current cooperation customer focus industrialized MRO • Provide integrated lifecycle • Leverage OEM network • Investigate futu
Slide 53: Outlook
Outlook 2015 2025 Airline Airline Cooperation Cooperation CAGR OEM ~ 10% Cooperation w/o MTU Zhuhai OEM Independent high single digit Cooperation Independent • All market channels contribute to strong MRO revenue increase – with OEM cooperation growing fastest • Independent segment remains the bigge
Slide 54: Thank you for your attention! Questions & Answers
Thank you for your attention! Questions & Answers 25 November 2015 Investor & Analyst Day 2015 54
Slide 55: Flight hour Agreements – Beneficial for the Operator and MRO Provider
Flight hour Agreements – Beneficial for the Operator and MRO Provider Reiner Winkler, Chief Executive Officer Michael Schreyögg, Chief Program Officer London, 25 November 2015
Slide 56: Evolution of Engine Maintenance Contract Options
Evolution of Engine Maintenance Contract Options INTEGRATED SOLUTIONS Flight hour Agreements (FhA) FIXED RATE Service scope Fixed price/Not to exceed TRADITIONAL Time & Material (T&M) time 25 November 2015 Investor & Analyst Day 2015 56
Slide 57: Typical Cash / P&L Profile of an Engine under Time & Material
Typical Cash / P&L Profile of an Engine under Time & Material $ Cash-In cum. Revenue cum. Costs cum. Cash Flow cum. $ 1st Shopvisit 2nd Shopvisit 3rd Shopvisit The traditional T&M model shows a correlation of Sales and Cash flow 25 November 2015 Investor & Analyst Day 2015 57
Slide 58: Typical Cash / P&L Profile of an Engine under FhA
Typical Cash / P&L Profile of an Engine under FhA $ Cash-In cum. Revenue cum. Costs cum. Cash Flow cum. $ 1st Shopvisit 2nd Shopvisit 3rd Shopvisit FhAs lead to an improved Cash Flow profile, P&L recognition remains unchanged 25 November 2015 Investor & Analyst Day 2015 58
Slide 59: Flight Hour Agreement - Contract Approach Differences
Flight Hour Agreement - Contract Approach Differences Fixed rate per flight-h / cycle Pay as you go (PAYG) Pay at Shop Visit (PASV) Fixed rate per h paid Fixed rate per h paid at regularly when engine time of MRO event is operated Smoothed Cash flow cash flow tied to overhaul Cycle 25 November 2015
Slide 60: Flight Hour Agreements – Benefits
Flight Hour Agreements – Benefits Operator MRO provider • Exclusive shop visit volume • MRO cost predictability and • Predictable and steady cash- transparency flow and workload • Predictable cash-flow • Possibility to include service packages (e.g. unscheduled • Risk transfer to MRO provider event
Slide 61: What Can be Done in Order to Improve FhA Performance?
What Can be Done in Order to Improve FhA Performance? Increase on-wing time • On-wing support • Engine trend monitoring • Coatings • Select standard • Removal strategy • Modifications Reduce Shop Visit costs • Workscoping • Material management • Repair development • Coatings 25 November 2015 Investo
Slide 62: Improving FhA Performance – On-Wing Support
Improving FhA Performance – On-Wing Support Example 1: Accessory Gear Box Example 2: Low Pressure Turbine (AGB) oil leakage (LPT) swap • AGB oil leakage detected • Fully equipped mobile container to perform LPT module swaps • AGB removed on-site on-site • AGB repaired and installed • LPT module chan
Slide 63: Improving FhA Performance – Engine Trend Monitoring
Improving FhA Performance – Engine Trend Monitoring Example 1: High Pressure Turbine Example 2: Broken Bolt (HPT) stage 2 blade crack • HPT Boroscope inspection (BSI) • Variable Stator Vane stage 1&2 Bolt broken • BSI findings: 1 blade cracked • Engine inspected • Engine removed • On-site bolt repla
Slide 64: Improving FhA Performance – Erosion Coating (ERCoatnt)
Improving FhA Performance – Erosion Coating (ERCoatnt) uncoated uncoated uncoated ERCoatnt ERCoatnt ERCoatnt Profile with material loss and sharpened trailing edge Profile nearly unchanged 25 November 2015 Investor & Analyst Day 2015 64
Slide 65: Summary
Summary • Demand for Flight hour Agreements is increasing • FhAs do not lead to a change in the revenue profile but to a change in the cash flow profile • The airlines as well as the OEMs benefit from FhAs • The MRO service cost are improved by an increase in reliability and by lower cost per shop v
Slide 66: Typical Financial Profile of a 10 Years FhA Contract
Typical Financial Profile of a 10 Years FhA Contract $ Accumulated $ Cost per Shopvisit TOTAL Sales FHA Cash In (cum.) FHA Cost (cum.) FHA Revenue (cum.) Shopvisit Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 TOTAL Costs Increase OWT Reduce SV Cost 25 November 2015 Investor
Slide 67: Typical Financial Profile of a 10 Years FhA Contract
Typical Financial Profile of a 10 Years FhA Contract $ Accumulated $ Cost per Shopvisit TOTAL Sales FHA Cash In (cum.) FHA Cost (cum.) FHA Revenue (cum.) Shopvisit Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 TOTAL Costs Benefit 25 November 2015 Investor & Analyst Day 2015
Slide 68: Cash Flow Streams of V2500 IAE FhA Agreements
Cash Flow Streams of V2500 IAE FhA Agreements Airline Customers Income from Flight hour Agreement IAE Partner, IAE Partner Spares Purchase e.g. MTU OEM e.g. MTU MRO OEM-MRO subcontracting for engines under FhA Roughly 60% of the V2500 fleet is under FhA contract with IAE 25 November 2015 Investor &
Slide 69: Summary
Summary • IAE currently works together with airline customers on several cost reduction initiatives for FhA agreements • Impacting MTU´s financials via • Less shop visits from IAE and therefore less sales for MRO division short term • Lower spare parts sales short term, but… • Higher EBIT margin on
Slide 70: Thank you for your attention! Questions & Answers
Thank you for your attention! Questions & Answers 25 November 2015 Investor & Analyst Day 2015 70
Slide 71: Financials & Outlook
Financials & Outlook Reiner Winkler, Chief Executive Officer London, 25 November 2015
Slide 72: Financial Highlights 9M 2015
Financial Highlights 9M 2015 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 3.500 400 10,2% +16% 9,6% 3.000 10% 3.257 +23% 2.500 2.812 300 333 8% 2.000 271 6% 200 1.500 4% 1.000 100 500 2% 0 0 0% 9M 2014 9M 2015 9M 2014 9M 2015 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 300 4,53 1
Slide 73: Guidance 2015
Guidance 2015 in m€ FY 2014 Guidance 2015 Revenues 3,914 ~ 4,600 EBIT adj. 383 ~ 430 9.8% Net income adj. 253 ~ 295 • Guidance 2015 based on 1,10 US$/€ • Commercial US$ OE sales up high single digit • Commercial US$ spare parts sales up low to mid single digit • Military revenues down 10% • Commerci
Slide 74: New IFRS 15: Revenues from Contracts with Customers
New IFRS 15: Revenues from Contracts with Customers Background IFRS 15 • IASB and FASB intend to harmonize IFRS and US-GAAP regulation on revenue recognition • IFRS 15 was issued in May 2014 and will replace previous standards • IFRS 15 regulates revenue recognition in more detail, by providing a 5-
Slide 75: New IFRS 15: Revenues from Contracts with Customers
New IFRS 15: Revenues from Contracts with Customers Update November 2015 • IASB rules mandatory application of IFRS 15 from 2018 onwards; postponed by 1 year • In Europe application of IFRS 15 requires EU endorsement which is now expected for Q1/2016 • MTU has launched an internal project in 2015 wi
Slide 76: Head- and Tailwinds 2016
Head- and Tailwinds 2016 Revenue Growth Military: Stable New engine Sales (Com. OE): Stable Spare parts Sales (Com. Spares): Low to mid single digit Commercial MRO: High single digit Tailwind from US$ fx-rate due to improved Hedge book Slight headwind from Com. OE mix and R&D (P&L) 25 November 2015
Slide 77: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge Book as of November 25, 2015 (% of net exposure) (mUS$) 984 (=93%) 749 (=68%) 500 (=40%) 130 (=10%) 2015 2016 2017 2018 Average hedge rate (US$/€): 1.25 1.25 1.22 1.15 25 November 2015 Investor & Analyst Day 2015 77
Slide 78: Long Term Outlook 2014 – 2025 - Update
Long Term Outlook 2014 – 2025 - Update Investment Phase Consolidation Phase 2014-2017 2018-2025 Revenues Military: Military: Com. OE: Com. OE: Com. Spares: Com. Spares: Com. MRO: Com. MRO: EBIT adjusted Growth in line with revenues Growth stronger than revenues Net Income adj. Growth stronger than E
Slide 79: Key Takeaways
Key Takeaways • MTU well prepared with its technology roadmap for future engine projects • Production and supply chain strategy for the ramp up is implemented • MTU benefits from its broad product portfolio in all business segments • Risk of slowdown in emerging markets is manageable • Diversified M
Slide 80: Thank you for your attention! Questions & Answers
Thank you for your attention! Questions & Answers 25 November 2015 Investor & Analyst Day 2015 80
Slide 81: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could