Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Investor Day (November 2019)
92 slides from Mtu Aero Engines's investor day presentation, Nov 28, 2019
Slide 1: Welcome to Langenhagen – Investor & Analyst Day 2019
Welcome to Langenhagen Investor & Analyst Day 2019 28 November 2019 1 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 2: Agenda – MTU Investor & Analyst Day 2019
Agenda – MTU Investor & Analyst Day 2019 Time Event Speaker 11:15 – 11:25 Welcome Thomas Franz, VP Investor Relations 11:25 – 11:45 Market environment Reiner Winkler, Chief Executive Officer 11:45 – 12:35 Technology roadmap | Extension of production facilities | Lars Wagner, Chief Operating Officer
Slide 3: MTU's market environment
MTU´s market environment Reiner Winkler | Chief Executive Officer (CEO)
Slide 4: Slow down in world economy in 2019 but positive outlook for 2020
Slow down in world economy in 2019 but positive outlook for 2020 GDP growth of top 3 economies (y-o-y) Global GDP growth Global trade growth 4% 7% 5.2% 3% 6% China 3.6% 3.2% 3.1% 3.2% 2% 5% 2.5% 2.7% US 1% 4% 1.1% EZ 0% 3% 17Q3 18Q3 19Q3 17Q3 18Q3 19Q3 2017 2018 2019E 2020F 2017 2018 2019E 2020F • S
Slide 5: Freight traffic and oil are a concern but passenger demand remains strong
Freight traffic and oil are a concern but passenger demand remains strong Global freight traffic growth Global passenger traffic growth Oil price (Brent) 90 9.7% 8.0% 6.5% 80 5.1% 4.6% 70 3.5% 4.5% 4.3% 60 50 40 Oct 2017 Oct 2018 Apr 2017 Apr 2018 Apr 2019 Jan 2017 Jan 2018 Jan 2019 Jul 2017 Jul 201
Slide 6: Global freight traffic is slowing down but North America is most influential to MTU
Global freight traffic is slowing down but North America is most influential to MTU Freight traffic growth MTU fleet in cargo service – 2,200 engines 9.7% Global Rest of the 7.9% North America JT8D-200 World 6.8% PW2000 Europe 3.5% GEnx -1.2% Asia CF6- Pacific 50/6/ -3.5% North 80A CF6-80 America 20
Slide 7: Softening of economic growth offer several silver linings
Softening of economic growth offer several silver linings US interest rates Oil price 3 2.5 71 2 65 54 1.5 1 0.5 0 2017 2018 2019 YTD US interest rates are being reduced, supporting the OE backlog as well as • The current slowdown is keeping energy prices and supply disruptions in check emerging mar
Slide 8: MTU revenues have returned to above-average growth following short periods of decline
MTU revenues have returned to above-average growth following short periods of decline Global GDP, traffic and MTU revenue growth 2000-2017 CAGR • Strong underlying travel demand growth with almost twice the growth rate as GDP growth. This development is expected to continue as the middle-class and u
Slide 9: High visibility and positive fundamentals for OE over the short to medium term
High visibility and positive fundamentals for OE over the short to medium term Backlog at historically high level, 8 years of production Aircraft on order 14,000 Narrowbodies • Growing production capacity is turning backlog into deliveries (now 8.1 years of production compared to 8.6 last year) Wide
Slide 10: Aftermarket growth remains robust in 2019
Aftermarket growth remains robust in 2019 Flight hours of MTU programs +3% A number of factors continue to support aftermarket demand for MTU programs • Parked fleet and retirements in relation to the fleet remain at an all time low (park rate at 6.3%, retirement rate at 2.7%) • Passenger traffic gr
Slide 11: MTU's activity is diversified geographically and structurally across fleet
MTU’s activity is diversified geographically and structurally across fleet In service fleet and orders relevant to MTU by region and market segment (22,900 engines) Middle East & Africa Regional Jets Freighters & military applications Passenger North America Twin-Aisles Europe & CIS China Latin Amer
Slide 12: A diversified fleet will support MTU in facing current market risks
A diversified fleet will support MTU in facing current market risks Mitigation through fleet and backlog in programs relevant to MTU Trade conflicts Economic slowdown Oil price uncertainty Climate impact Escalation in 2019 (US-China, US, Eurozone and Key MTU programs Rising awareness for climate Jap
Slide 13: We are committed to ambitious goals to reduce CO2 emissions
We are committed to ambitious goals to reduce CO2 emissions Reduction of emission and noise levels Our objective is to cut aircraft engine CO2 emissions by up to 40% and noise emissions by as much as 65%. Ambitious technology agenda CLAIRE MTU is compliant with strategic industry goals such as SRIA
Slide 14: MTU's technology roadmap
MTU´s technology roadmap Lars Wagner | Chief Operating Officer (COO)
Slide 15: Our motivation: IATA Flightpath 2050 CO2 reduction
Our motivation IATA Flightpath 2050 Reduction by… CO2 emissions normalized to 2005 levels Evolutionary technology Operational measures Optimized air space Alternate fuels and revolutionary technologies economic CO2 neutral growth measures -50% 2000 2010 2020 2030 2040 2050 28 November 2019 15 © MTU
Slide 16: MTU's approach CLAIRE | Clean Air Engine
MTU’s approach CLAIRE | Clean Air Engine Vision 2020 and Flightpath 2050 targets 100% 100% -40% -15% -50% -25% -65% -40% 2000 2015 2030 2050 V2500 Geared Turbo Fan Fan with low pressure ratio Integrated high- efficiency propulsion ∆ Noise reduction in % ∆ CO2-reduction in % Increase in alternate fue
Slide 17: Our approach: propulsion concepts
Our approach Maturity Application Evolutionary Gen2 GTF development Short- range Mid- range Long- range turbine Short- Mid- Long- Revolutionary concepts Gas range range range Short- Mid- Long- Drop-in power-/sun-to-liquid: SAF range range range Short- Mid- Long- Turbo-electric, hybrid concepts range
Slide 18: GTF Gen2 concept for 2030+
GTF Gen2 concept for 2030+ Targets • -10% fuel • -10% dB noise Further CO2 reduction by: Drop-in fuels Sustainable aviation fuels SAF Hydrogen Increase in electrical components 28 November 2019 18 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group co
Slide 19: New European Fighter Engine – NEFE
New European Fighter Engine – NEFE Military technology development Targets Key enabler • Long range • Variable cycle engine • High mission flexibility technology • Low observability • “World class” components • High availability • High-temp, low-weight materials • Low operation costs • Integrated ai
Slide 20: Key synergies: technical, competences and technology funding
Key synergies: technical, competences and technology funding Commercial and military technology development Commercial Gen2 GTF Gen2 GTF technology entry into ready 2025+ service 2030+ High pressure Low Materials Additive Materials & Virtual engine Life cycle Rig & demo testing Military compressor p
Slide 21: Revolutionary concepts
Revolutionary concepts Composite cycle (turbine and piston) STIG cycle (steam ingestion) -12% fuel burn -20% fuel burn 28 November 2019 21 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 22: Revolutionary concepts
Revolutionary concepts (Hybrid-) electric propulsion 100% batteries Hybrid: Gas turbine with generator E-motor PMAD eFuels Fuel cell with liquid hydrogen H2 PMAD: power management and distribution 28 November 2019 22 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU A
Slide 23: Propulsion concepts for emission free flying
Propulsion concepts for emission free flying Participation e.SAT (Schematic) Characteristics Project plan • Development of a 5-seat box wing flight taxi • Electric architecture with ROTAX piston engine • Low-noise fan Partners • e.SAT and e.SAT Powertrain GmbH • RWTH Aachen, MTU, … Electric boost Sc
Slide 24: Propulsion concepts for emission free flying
Propulsion concepts for emission free flying Participation DO228hep (Schematic) Characteristics Project plan • Proof of concept for electric propulsion • Potential integration of fuel cell Partners • DLR Schedule • Flight test 2021 E-motor Fuel cell Battery 28 November 2019 24 © MTU Aero Engines AG.
Slide 25: Our potential contribution
Our potential contribution Today 1 Next generation GTF 1 -10% CO2 Low FPR1, high BPR2 and OPR3 as well as lean burn combustor CO2 free, 1 still NOX 2 Revolutionary engine concepts Higher efficiency, reduced NOX and GHG4 (STIG) -20% fuel burn and 3 Emission free flying 2 significant NOX reduction Fue
Slide 26: Expansion of production facilities
Expansion of production facilities 28 November 2019 26 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 27: Geared turbofan engines are setting new economical standards
Geared turbofan engines are setting new economical standards – and are a key driver of our production ramp-up First geared turbofan (GTF) engine generation Production ramp-up within one decade Modules and engines p.a. Low-pressure turbine ̴ 16% reduction in fuel burn Increase by High-pressure factor
Slide 28: Automation in engine manufacturing
Automation in engine manufacturing Why we constantly increase our level of automation Reduction of costs Better process stability and quality Reduction of turnaround time and working capital • Increased operating times • Less manual interference • Higher automation level • Process data management •
Slide 29: MTU as role model for automation in aero engine manufacturing
MTU as role model for automation in aero engine manufacturing Semiautomated hub strut case Semiautomated flow path Closed door automated Closed door automated Manufacturing Hardware manufacturing Manufacturing of blisks Turbine blade manufacturing 2011 2012 2015 2019 28 November 2019 29 © MTU Aero E
Slide 30: Closed door automated manufacturing of blisks
Closed door automated manufacturing of blisks Manufacturing 4.0 Main features • Fully automated system • IT-controlled eco-system for autonomous parts and tool flow management • Production of 4,000 blisks per year -25% +40% -30% 28 November 2019 30 © MTU Aero Engines AG. The information contained he
Slide 31: Closed door blade manufacturing
Closed door blade manufacturing Manufacturing 4.0 Main features • Fully-automated system • IT-controlled eco-system for autonomous parts and tools flow management • Offset correction for individual geometry and adjustment of NC-programs → continual high quality • Production capacity 7,000 hours per
Slide 32: Our next steps in automation
Our next steps in automation Simulation Process data Manufacturing management execution system Automated manufacturing Automated manufacturing w. autonomous mobile robots Automated manufacturing Automated ECM manufacturing vanes and shrouds Flow path hardware Bearing chambers Rotors 2020 2020 2021 2
Slide 33: Autonomous mobile robots
Autonomous mobile robots Manufacturing 4.0 Main features • Fully-automated system • Eco-system of freely moving robots for autonomous storage, parts and tool management • Offset correction for individual geometry and adjustment of NC-programs → continual high quality • No dedicated storage necessary
Slide 34: Electro chemical machining
Electro chemical machining Manufacturing 4.0 Main features • Dissolving material from workpiece by electrochemical process (electrolysis) • Replacement of two processes (broaching and edge rounding) • Improved surface quality at lower cost -50% +30% -20% 28 November 2019 34 © MTU Aero Engines AG. Th
Slide 35: Working capital management
Working capital management 28 November 2019 35 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 36: Working capital management center of competence
Working capital management MTU established a center of competence for working capital management Enabler Flexibility Response time Forecast accuracy Digitalization Short term: Big data analysis Mid-term: Exception management Long-term: AI-disposition • Daily visualization on digital dashboards • Mat
Slide 37: Outlook
Outlook 28 November 2019 37 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 38: Outlook
Outlook • We have promising commercial and military technology in the pipeline Technology • Revolutionary concepts including fuel cells with (hybrid-)electric roadmap drive train enable emission reduced/free flying in the long run • Automation and Industry 4.0 are key to utilizing possibilities in p
Slide 39: Q&A
Q&A 28 November 2019 39 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 40: Lunch Break
Lunch Break Presentation continues at 13:30 CET 28 November 2019 40 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 41: Market success in OEM and MRO businesses
Market success in OEM and MRO businesses Michael Schreyögg | Chief Program Officer (CPO)
Slide 42: Positive market trends in all business segments
Positive market trends in all business segments 28 November 2019 42 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 43: Solid growth in new civil aircraft deliveries over the next 20 years
Solid growth in new civil aircraft deliveries over the next 20 years Positive market environment for the aviation industry 20-year annual 20-year annual RPK* 20-year annual global 20-year new aircraft GDP growth 2.7% traffic growth 4.5% fleet growth 3.7%** deliveries 46,000** Solid new aircaft deliv
Slide 44: Total commercial engine MRO revenues will double over the next 10 years
Total commercial engine MRO revenues will double over the next 10 years Worldwide MRO market MRO revenues (in bn US$) • Total MRO revenues will grow from ~ US$ 34 bn today to 70 US$ 66 bn by 2029 CAGR 2019-29 Total MRO market: high single digit No access • MTU’s MRO market coverage maintains at ~80%
Slide 45: Military outlook – German defense budget expected to increase
Military outlook – German defense budget expected to increase by 6.2% in 2020, reaching 1.42% of GDP in bn€ 70 NATO reported Defense Budget 1.5% GDP target line 60 50.3 50 47.3 = = 1.42% 1.39% GDP 40 GDP 30 20 10 2019 2020 2021 2022 2023 2024 Source: Süddeutsche Zeitung Nov 18, 2019 13:29 Uhr Nato,
Slide 46: MTU's key growth drivers
MTU’s key growth drivers 28 November 2019 46 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 47: The number of GTF powered aircraft is steadily rising
The number of GTF powered aircraft is steadily rising GTF Source: MTU Source: MTU Source: Airbus Source: MTU Source: Swiss International Airlines Source: MTU A320neo A220-100 A220-300 A321neo E190-E2 E195-E2 EIS Jan 25, 2016 EIS Jul 15, 2016 EIS Dec 14, 2016 EIS Sep 7, 2017 EIS Apr 24, 2018 EIS Sep
Slide 48: GTF – 10,000 orders and commitments, 80+ customers
GTF – 10,000 orders and commitments, 80+ customers worldwide, 5 aircraft platforms GTF 600+ aircraft 40+ 4 million + 200 million + in service operators flight hours passengers 280 million + 2.7 million + Up to 75% gallons of fuel saved metric tonnes of smaller noise CO2 avoided footprint Source: Pra
Slide 49: MTU participates in the large business jet scene
MTU participates in the large business jet scene – the segment with the strongest growth and the highest revenues in the business jet market Gulfstream G500/G600 Dassault Falcon 6X EIS 2018/2019 EIS 2022 expected • Gulfstream G500/G600 >10,000 flying hours accumulated • Mach 0.9 – fastest jets in th
Slide 50: The regional jet market will be dominated by the GTF
The regional jet market will be dominated by the GTF – market share to increase to 90% A220 | PW1500G E-Jet E2 | PW1900/1700G EIS 2016 EIS 2018 • GTF exclusive powerplant for all 3 new RJ platforms • A220 gained order momentum since Airbus stepped in • Boeing’s 80% stake into Embraer expected for 20
Slide 51: PW1100G-JM powering the A320neo key revenue driver
PW1100G-JM powering the A320neo will be the key revenue driver in coming years Airbus A320neo / PW1100G-JM / EIS 2016 • PW1100G-JM (A320) covers roughly 55% of total GTF order book • >500 A320neo and A321neo equipped with GTF delivered • Benefits in fuel, noise and emission proven since 1st flight h
Slide 52: GTF installed base growing to ~15,000 in 2030
GTF installed base growing – GTF engine fleet to increase to ~ 15.000 in 2030 No. of installed engines • Strongest driver is A320neo GTF engine Thousands 16 • Annual production rate at >1,300 GTF engines by the middle of 14 the next decade • Upside potential from NGSA 2030+ 12 10 GTF engine fleet 8
Slide 53: The GTF will lead the industry's engine architecture
The GTF will lead the industryʼs engine architecture for the next decades • GTF concept used on regional and narrowbody platforms • Flexibility to be extended to higher thrust levels >70 klb • Technology roadmap is in place thrust range • Further innovations and flight experiences makes the GTF a pr
Slide 54: GTF industrialization – cost structure optimized and reliable output achieved
GTF industrialization – cost structure optimized and reliable output achieved Blisk manufacturing, Munich MTU Maintenance, Hannover • High degree of automation PW1100G-JM MRO readiness achieved • Production cost optimized in 2016 • Annual capa. of 4,000 blisks GTF assembly line, Munich EME Aero, Pol
Slide 55: Managing GTF challenges requires additional shop visits
Managing GTF challenges requires additional shop visits Limited durability (on-wing time) and technical issues especially under severe environmental conditions (e.g. India) Nov. 2019: Indian regulator action for GTF engines • Technical issues have been addressed • New design available and has been i
Slide 56: EJ200 with attractive national and international growth potential
EJ200 with attractive national and international growth potential EJ200 Eurofighter EIS 2003 Program highlights: • Over 1,300 EJ200 sold • >1,000,000 engine flight hours accumulated • Replacement of tranche 1 → decision expected in 2020 • Replacement of Tornado fleet – competition F/A-18 → decision
Slide 57: MTU's profitable spare parts business is secured by mature and new programs
MTU’s profitable spare parts business is secured by mature and new engine programs Unabated flight hour demand secures spare parts revenue growth No. of flight hours • V2500 key spare parts revenue driver with high visibility • CF6-80C/E – high portion of freighter application will result in solid s
Slide 58: MRO revenues significantly outperformed the market
MRO revenues significantly outperformed the market MTU Maintenance Zhuhai 100% MRO revenues reported ~ 4.5 bn US$ Highlights • Market approach via independent MRO and CAGR OEM-MRO partnerships + high teens % • Largest engine maintenance portfolio worldwide • Broad, diversified customer base • Strong
Slide 59: Independent MRO and OEM-MRO cooperation are the basis for future growth
Independent MRO and OEM-MRO cooperation are the basis for future growth Independent MRO campaign wins 2015-2019 OEM-MRO cooperation order book as of (in bn US$) 30th September 2019 6.7 Widebody Narrowbody 4.5 ~ € 11bn 3.0 2.1 2.2 0 2015 2016 2017 2018 Est. 2019 Independent MRO business very successf
Slide 60: Increasing demand requires capacity expansion in best cost countries
Increasing demand requires capacity expansion primarily in best cost countries Capacity demand vs. available capacity Available capacity Current capacity Highlights demand • Rising demand for mature and new engine programs Best-cost • Short-term: full capacity utilization at existing locations locat
Slide 61: Key expansion projects support future profitable growth
Key expansion projects support future profitable growth EME Aero MTU Maintenance Zhuhai MTU Maintenance Serbia Other MRO expansions • Most efficient GTF MRO • Prolongation of JV until 2051 • New parts repairs shop • MTU Maintenance Hannover shop worldwide • LEAP repair licenses • Capacity 400,000 re
Slide 62: MTU achieves an advantageous position compared to its competitors
MTU achieves an advantageous position compared to its competitors by covering all market segments Competitive MRO landscape OEM Independent Standardized solutions Customized solutions MTU's strengths • Well positioned in all market segments as a unique selling point GE RR • Technological know-how fr
Slide 63: MTU Maintenance offers intelligent solutions over the entire engine lifecycle
MTU Maintenance offers intelligent solutions over the entire engine lifecycle PERFORMPlus MOVEPlus New engines Sunset engines More flight hours at lower cost Maximized value with effective with customized MRO end-of-life asset management MTUPlus Intelligent Solutions Mature engines Solutions for les
Slide 64: MRO technology roadmap
MRO technology roadmap focusses on more efficient processes, automation and digitalization in the OEM-MRO and independent MRO businesses Repair & automation technologies Life-cycle management Intelligent MRO processes • Provide essential repair technologies for • Introduce comprehensive on-/near-win
Slide 65: Future profitable growth requires balanced management of operational and strategic aspects
Future profitable growth requires balanced management of operational and strategic aspects Operational and strategic aspects Expansion of service and product portfolio Customer retention Profitability Growth Expansion of MRO network structure Maintain and expand Quality Strengthening of core partner
Slide 66: Outlook for the next decade
Outlook for the next decade 28 November 2019 66 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 67: MTU's growth story will continue in the future
MTU’s growth story will continue in the future Commercial OEM Military OEM Commercial MRO • 25% program share targeted for the next • Next European Fighter Engine (NEFE) key • Development of product portfolio generation of GTF engines for future growth • Active fleet management • Upside potential dr
Slide 68: Q&A
Q&A 28 November 2019 68 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 69: Financials
Financials Peter Kameritsch | Chief Financial Officer (CFO) | Chief Information Officer (CIO)
Slide 70: MTU included in German large cap index DAX
MTU included in german large cap index DAX MTU share price development [Jan.-Sept. 2019; +53.5%] MTU trading volume [Jan.-Sept. 2019; in million shares] 270 20 250 16 230 12 210 8 190 170 4 150 0 Jan. 19 Feb. 19 Mar. 19 Apr. 19 May 19 Jun. 19 Jul. 19 Aug. 19 Sept. Jan. 19 Feb. 19 Mar. 19 Apr. 19 May
Slide 71: MTU included in German large cap index DAX
MTU included in German large cap index DAX Better reputation DAX is the German blue chip index More visibility • Broader press coverage • Higher public recognition • Reputation on labour market Higher trading volume • Money in DAX ETFs 10x MDAX • Money in DAX Futures/Derivatives 40x MDAX • More acti
Slide 72: IFRS16 implementation
IFRS16 implementation New IFRS standard for lease contracts • All lease contracts to be recognized in the balance sheet as right-of-use assets/lease liabilities • Operating expenses decrease while finance costs increase • Lease payments to be shown in financing cash flow compared to operating cashfl
Slide 73: Changes through applying IFRS 16 (leases)
Changes through applying IFRS 16 (leases) Balance sheet as of 01.01.2019 P/L 9M2019 Equity Revenues: -15M € +1M € EBIT: +1M € Right-of-use assets/ EBITDA: +28M € net-investment +128M € Lease liability Financial result: -9M € +127M € of which FX -6M € P/L Sum -9M € Balance sheet as of 30.09.2019 Cash
Slide 74: Capital structure management
Capital structure management 28 November 2019 74 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 75: Key capital structure considerations
Key capital structure considerations Position at 30.06.2019 Targets Equity ratio ~30% and 52m shares No new equity Net debt/EBITDA ~ 0.9 Net debt/EBITDA will be in range between 0.5-1.5 Investment grade rating from Fitch (BBB) Keep investment grade rating and Moody’s (Baa3) Maintain flexibility for
Slide 76: Convertible bond May 2016
Convertible bond May 2016 1. Nominal value 500M € 2. Maturity 7 years, May 2023 Assessment 3. 50% conversion premium leads to a conversion price of ~125€ per share • Convert deeply in the money • Market value at ~ 1bn € 4. Possible execution of Issuer Call from June 2020 • Nearing date for Issuer Ca
Slide 77: First step: Convertible transaction Sept. 2019
First step Convertible transaction Sept. 2019 Issue of new convertible bond 1. Nominal value 500M € 2. Maturity 7.5 years Market reception 3. Issue price 103% and 0.05% coupon implying -0.34% yield to maturity • Orderbook already closed 3 hours after announcement • Orderbook oversubscribed by factor
Slide 78: Partial repurchase of convertible bond 2016
First step Convertible transaction Sept. 2019 Offer for partial repurchase of convertible bond 2016 1. Nominal value up to 275M € 2. Payment with proceeds of convertible bond 2019 Market reception 3. Repurchase of ~ 2.2M underlying shares • Repurchase offer was well received with orderbook of ~ 400M
Slide 79: Dilution risk reduced and postponed
First step Convertible transaction Sept. 2019 Dilution risk reduced and postponed Potential conversion Potential conversion before transaction after transaction Market reception - 0.9M Shares • Convertible refinancing seen as credit positive by Moody’s 1.8M • Extension of debt and maturity profile a
Slide 80: Capital structure management conclusion
Conclusion Capital structure management 1. No need for new equity as FCF further improves 4. MTU has a well diversified refinancing profile 2. Management of dilution remains a key item on the 5. Balanced leverage ratio of net debt/EBITDA agenda around 0.5-1.5 grants flexibility for business developm
Slide 81: Guidance 2020
Guidance 2020 28 November 2019 81 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 82: The year 2020: Sustainable growth path confirmed
The year 2020 Sustainable growth path confirmed • Further ramp of GTF volumes • Total OE losses to stabilize despite • Investment in efficiency gains and • Ongoing strong growth of aftermarket continuous ramp-up capacity ramp-up in both segments high (Com. Spares & MRO) • Launch of invest in new par
Slide 83: The year 2020: Further growth of EBIT adj. and Free Cashflow
The year 2020: Further growth of EBIT adj. and Free Cashflow 2020 main drivers Military stable Commercial OE Up high single digit Commercial Spares Up mid to high single digit Core MRO up high single digit Commercial MRO Acceleration of GTF-Retrofit program under evaluation EBIT adj. High single dig
Slide 84: Q&A
Q&A 28 November 2019 84 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 85: Executive Summary
Executive Summary Reiner Winkler | Chief Executive Officer (CEO)
Slide 86: MTU Aero Engines – lifetime excellence
MTU Aero Engines – lifetime excellence M€ Broad know-how and portfolio • 150 technology projects, 400 patents and 200 invention disclosure 600 80% reports per year • 30% of aircraft have MTU technology on board 70% 500 Growing MRO business 60% • >1,000 shop visits per year for over 30 different engi
Slide 87: MTU's technological excellence and partnerships build foundation for long-term success
MTUʼs technological excellence and established partnerships build the foundation for long-term success “ MTU‘s „ financial strength makes it a reliable long-term partner operational excellence „ “ MTU has a sound technological basis and provides „ “ Very high level of quality performance “ No „ need
Slide 88: MTU's road into the 2020s
MTUs road into the 2020s Continued huge demand drives new engine • GTF delivers game-changing economic and environmental performance 1 deliveries • GTF engine fleet to increase to 15,000 in 2030 MTU´s expected ongoing engine fleet utilization • V2500s peak still ahead 2 secures aftermarket • New pro
Slide 89: Q&A
Q&A 28 November 2019 89 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 90: Thank you!
(miru Thank you!
Slide 91: 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
Slide 92: Proprietary Notice
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