Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Investor Day (June 2023)
34 slides from Mtu Aero Engines's investor day presentation, Jun 20, 2023
Slide 1: MTU Aero Engines – Paris Air Show 2023
PARIS AIR SHOW 2023 MTU Aero Engines – Paris Air Show 2023 20th of June 2023 I Paris
Slide 2: Welcome
Welcome Thomas Franz Vice President Investor Relations Paris Air Show / June 20, 2023 2
Slide 3: Agenda
Agenda 1 Market Environment Lars Wagner Chief Executive Officer (CEO) and 3 Business Segments Michael Schreyögg Chief Program Officer (CPO) 5 Financials Peter Kameritsch Chief Financial Officer (CFO) Chief Sustainability Officer (CSO) 2 Technology and ESG Lars Wagner Chief Executive Officer (CEO) an
Slide 4: Market Environment
Market Environment Lars Wagner Chief Executive Officer (CEO) and Chief Sustainability Officer (CSO) Paris Air Show / June 20, 2023 4
Slide 5: Challenges have evolved since fall 2022
Challenges have evolved since fall 2022 Covid-19 pandemic and Global economic slowdown remaining travel restrictions and price inflation + now endemic + global economy resilient so far in 2023 + China has re-opened earlier than expected – US Fed and ECB raised interest rates further + last travel re
Slide 6: Global economy has proven resilient so far in 2023
Global economy has proven resilient so far in 2023 Passenger flights have almost recovered, freighter flights holding up GLOBAL ECONOMIC GROWTH IMPROVING IN 2023 WEEKLY FLIGHT CYCLES COMPARED TO SAME WEEK IN 2019 75% 4 3.1% 3.0% 50% Cargo 30.8% 30,8% 2.6% 2.7% 2.7% 3 2.5% 25% 2.2% 1.7% 0% 2 -2,8% -2
Slide 7: Industry struggles to ramp up new deliveries fast enough
Industry struggles to ramp up new deliveries fast enough Airlines re-activate aircraft, delay retirements and grow average hours, boosting aftermarket AIRBUS AND BOEING DELIVERIES INDUSTRY STORAGE AND PARK RATE I Faster than expected post- # Aircraft Park rate Covid-19 air travel recovery # Aircraft
Slide 8: Technology & ESG
Technology & ESG Lars Wagner Chief Executive Officer (CEO) and Chief Sustainability Officer (CSO) Paris Air Show / June 20, 2023 8
Slide 9: Engine concepts towards emission-free aviation
Engine concepts towards emission-free aviation 2ND GENERATION GEARED TURBOFAN WET CONCEPT FLYING FUEL CELL I Reduced fan pressure ratio and higher overall I Gas-turbine with waste heat recovery and I An electrochemical reaction in fuel cells pressure ratio steam injection into the combustion chamber
Slide 10: Highlights of engine concepts towards emission-free aviation
Highlights of engine concepts towards emission-free aviation SWITCH FLYING FUEL CELL I Synergistic concept combining revolutionary technologies I eMoSys GmbH is a 100-percent subsidiary of MTU since within GTF architecture April 2023 – WET “Water-enhanced Turbofan” I eMoSys GmbH is an innovative ele
Slide 11: We are shaping change by transforming aviation – our CR fields of action
We are shaping change by transforming aviation – our CR fields of action Governance Product Manufacturing Procurement Employees Society & Maintenance Responsible corporate Climate action Good collaboration, We have established Focus on climate Corporate citizenship: governance that is a key concern,
Slide 12: Business Segments
Business Segments Michael Schreyögg Chief Program Officer (CPO) Paris Air Show / June 20, 2023 12
Slide 13: Strong recovery in air traffic, MTU back on track
Strong recovery in air traffic, MTU back on track Recovery in air GTF durability issues New military MRO network traffic speeds up projects on track expansion Paris Air Show / June 20, 2023 13
Slide 14: The GTF engine is the most fuel efficient, sustainable engine for narrowbody aircraft
The GTF engine is the most fuel efficient, sustainable engine for narrowbody aircraft GTF engines offer the lowest fuel consumption GTF Advantage provides step-change and CO2 emissions for today’s single-aisle aircraft in performance and durability I Entry into service in 2024 1,600+ 5 billion+ I Be
Slide 15: Continuous technical upgrades and improvements are key to further improve GTF durability
Continuous technical upgrades and improvements are key to further improve GTF durability Situation today Aircraft on ground situation Measures I Today’s GTF production standard provides I Much of current GTF fleet still needs I Continuous incorporation of technical longer on-wing time and improved m
Slide 16: Kick-off for the most advanced engine for the European next-generation fighter
Kick-off for the most advanced engine for the European next-generation fighter ~ 2,000 ~ 500 Achievements engines expected engineers at MTU I Foundation of 50:50 JV EUMET in 2021 I Strong partnerships across Europe I Start of demonstrator phase 1B, first milestones reached TIMELINE OF THE NEXT EUROP
Slide 17: Safran and MTU Aero Engines team up for European next-generation helicopter engine
Safran and MTU Aero Engines team up to pave the way for a European next-generation helicopter engine I Safran Helicopter Engines and MTU Aero Engines have signed a MoU to create a 50/50 joint venture I JV intended to develop a new engine for the European Next Generation Rotorcraft Technologies (ENGR
Slide 18: Expansion of our global MRO network is progressing
Expansion of our global MRO network is progressing Canada Zhuhai (JV) Move to new facility 2021 Shop expansion 2021 Dallas Zhuhai #2 (JV) Move to new facility 2023 New shop 2025 Hannover Ludwigsfelde Serbia EME Aero (JV) ASSB Airfoil Service (JV) Shop expansion 2021 Shop expansion 2019 Opened in Oct
Slide 19: Production
Production Dr. Silke Maurer Chief Operating Officer (COO) Paris Air Show / June 20, 2023 19
Slide 20: Challenges for operations will continue – and will be met by a revised strategy
Challenges for operations will continue – and will be met by a revised strategy Situation: The present and future are characterized by more changes compared to the past. Operations strategy will be reviewed and redesigned until the end of 2023 to ensure MTU’s profitable, continuous and sustainable g
Slide 21: The future of production – holistic target picture including digitalization and workforce
The future of production – holistic target picture including digitalization and workforce CORPORATE STRATEGY PREMISES DIGITALIZATION HR FRAMEWORK FRAMEWORK 1 FUNCTIONAL- & PROCESS CONCEPTS Match Match Making Evaluation of commodities 2 GLOBAL FOOTPRINT OEM Making 3 Recommendations for action and tra
Slide 22: Status site development
Status site development What was announced in 2019… What is the status quo in 2023 … … extension of MTU Munich facilities … the new production center LPT disks will be finished until Q4 2023 New testing center New production Further optimization Reduce production costs center LPT disk of production
Slide 23: Procurement and logistics - safeguarding the volatile material supply
Procurement and logistics - safeguarding the volatile material supply Strategic material buffers Diversified sourcing Contract management Support for suppliers along the supply chain strategy End2end supply chain meetings For long lead items, e.g. forgings Proactive extension of long Workshops at su
Slide 24: Procurement and logistics – status quo of supply chain
Procurement and logistics – status quo of supply chain Remaining bottlenecks Improvements expected by the end of 2023 I Bottlenecks are now shifting from pre-materials to later process Measures: steps in the supply chain, such as special processes or sub-suppliers I Support of direct suppliers, prim
Slide 25: Financials
Financials Peter Kameritsch Chief Financial Officer (CFO) Paris Air Show / June 20, 2023 25
Slide 26: 2023 – Business driver
2023 – Business driver Deviations to previous expectations I Supply chain challenges remain determining factor I Demand significantly above levels to be satisfied I Military programs – increase of funded development work and higher volumes I Commercial OE – Higher share of spare engines I Commercial
Slide 27: Guidance 2023 updated
Guidance 2023 updated ORGANIC REVENUE Military Commercial OE Total Group Sales EBIT adj. Up mid teens % Up thirty % EUR 6.1 – 6.3 bn € >800 Mio € FCF adj. Commercial Commercial MRO > 2022 actuals Spares MRO up high teens % Up high teens GTF share at mid to high to low twenties % thirties % of revenu
Slide 28: Analyst & Investor Day Questions & Answers
Analyst & Investor Day Questions & Answers Lars Wagner Michael Schreyögg Dr. Silke Maurer Peter Kameritsch Chief Executive Officer (CEO) and Chief Program Officer (CPO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Sustainability Officer (CSO) Q&A Paris Air Show / June 20, 2023 2
Slide 29: 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 30: Proprietary Notice
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 writt
Slide 31: Thank you for your attention.
Thank you for your attention. Paris Air Show / June 20, 2023 31
Slide 32: Contact
Contact Please contact us if you have any further questions MTU Aero Engines AG Thomas Franz Claudia Heinle Matthias Spies Investor Relations Vice President Investor Relations Senior Manager Investor Relations Senior Manager Investor Relations Dachauer Str. 665 Tel.: +49 89 1489 4787 Tel.: +49 89 14
Slide 33: Fingerfood & Drinks
Fingerfood & Drinks Paris Air Show / June 20, 2023 33
Slide 34: Sorry, there are technical difficulties
PARIS AIR SHOW 2023 + + + Sorry, there are technical difficulties + + + Please stand by +++ MTU Aero Engines – Paris Air Show 2023 20th of June 2023 / Paris