Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Investor Day (September 2008)
87 slides from Mtu Aero Engines's investor day presentation, Sep 26, 2008
Slide 1: Investor and Analyst Day 2008
Investor and Analyst Day 2008 MTU Aero Engines Munich 26 September 2008
Slide 2: Agenda
Agenda Time Event Speaker 11:00 – 12:00 Update on Strategy, Commercial and Military Business Egon W. Behle 12:00 – 12:40 Update on Commercial MRO Business Dr. Stefan Weingartner 12:40 – 13:30 Lunch with MTU Management 13:30 – 14:20 Overview of New Cost Efficiency Initiatives Reiner Winkler 14:20 – 1
Slide 3: Update on Strategy, Commercial and Military Business
Update on Strategy, Commercial and Military Business Egon W. Behle, CEO
Slide 4: Agenda
Agenda 1. Overview Key Strengths 2. Market Situation 3. Strategy and Program Highlights 26 September 2008 4
Slide 5: MTU – Top Performance for the Worldwide Aviation Industry
MTU – Top Performance for the Worldwide Aviation Industry • Leading technological position • Strong partnership with all engine OEMs • Largest independent MRO provider • Excellent financial performance and robustness 26 September 2008 5
Slide 6: Agenda
Agenda 1. Overview Key Strengths 2. Market Situation 3. Strategy and Program Highlights 26 September 2008 6
Slide 7: Latest Traffic Data Shows Lower but Continued Growth in Demand
Latest Traffic Data Shows Lower but Continued Growth in Demand – While There Has Been Some Relief in Oil Price Passenger Air Traffic Growth Highlights • July y/y international passenger traffic 40% growth fell to 1.9% - the lowest in five years 30% • Cargo traffic in July fell by 1.9% y/y Slowdown s
Slide 8: Long Term Outlook for Market Demand Remains Positive
Long Term Outlook for Market Demand Remains Positive Market drivers and outlook 800 CAGR 700 Passenger Traffic Jet Engine Fleet 90-08 08-30 600 Jet Engine Deliveries Passenger 5.1% 5.4% Indexed 1990 = 100 Air Traffic 500 Jet Engine 3.6% 3.7% 400 Fleet 300 Jet Engine 2.7% 4.2% Deliveries 200 100 0 19
Slide 9: Commercial Aero Engine Market Expected to Generate More Than $600bn Sales
Over the Next 20 Years the Commercial Aero Engine Market is Expected to Generate More Than $600bn Sales Expected Deliveries and Sales 2008-2030: CAGR ~4% 310 bn US$ 210 bn US$ Sales 110 bn US$ Widebody Narrowbody Regional & Business Jet 230+ seats 90-230 seats 20-90 seats % Engine Sales 49% 34% 17%
Slide 10: MTU's Commercial OEM Order Book Driven by Growth Platforms and Regions
MTU´s Commercial OEM Order Book is Driven by Growth Platforms and Dynamic Regions ~ 85% of order backlog from growth platforms ~ 60% of order backlog from growth regions ~ 15% Other engine programs ~ 40% North America ~ 60% Europe Middle East, RoW ~ 85% Asia, GP7000 South America V2500 Total 1,6 bn
Slide 11: Commercial MRO Contract Volume from Fast Growing Engines and Regions
Vast Majority of Commercial MRO Contract Volume Derives from Fast Growing Engines and Regions ~ 80% of order backlog from growth platforms ~ 55% of order backlog from growth regions ~ 20% Other engine programs ~ 55% ~45 % Asia/Pacific, North South America, America, ~ 80% Middle East Europe V2500, CF
Slide 12: Limited Exposure to Engines Affected by Current Retirements
MTU Has Limited Exposure to Engines That Are Primarily Affected by the Current Retirements (JT8D, CF6-50, 80A) MTU Commercial OEM revenues MTU installed engine fleet by engine type 2007 by engine type CF6-80E GP7000 PW6000 3% 0,03% 0,2% JT8D-200 CF6-50/-80A PW4000G 1% 2% 3% PW2000 (incl. F117) 14% J
Slide 13: Agenda
Agenda 1. Overview Key Strengths 2. Market Situation 3. Strategy and Program Highlights 26 September 2008 13
Slide 14: MTU Strategy Supports Profitable Growth
MTU Strategy Supports Profitable Growth Five Strategic Pillars 1. Maintain 2. Gain access 3. Strengthen 4. Evaluate 5. Further leadership to fastest core business acquisition improve cost in technology growing new by accessing opportunities competitiveness programs related niche businesses Global Fo
Slide 15: Geared Turbofan Technology is Gaining Momentum
Geared Turbofan Technology is Gaining Momentum Strategic Pillar Status 1. Maintain leadership in technology • First phase of flight testing successfully completed in August 2008; ongoing flight tests in full operations • Technology readiness by end of 2008 to support product EIS at the end of 2012 •
Slide 16: Secured Shares in New Engine Programs with Potential Revenues of ~20 bn €
In 2008 MTU Has Secured Shares in New Engine Programs with Potential Revenues of ~20 bn € Strategic Pillar Status 2. Gain access to fastest growing • 15% share in P&W PurePower Family new engine programs PW810, PW1000G Applications: ‒Cessna LCC (~5 bn€revenue potential) ‒MRJ (~5 bn€revenue potential
Slide 17: Ongoing Programs Provide Sustainable Basis for Profitable Growth
Ongoing Programs Provide Sustainable Basis for Profitable Growth Status main ongoing programs (comm. + mil. OEM) • V2500 performing well – V2500Select received EASA 25 Certification – Sales market share in 2008 above 50% (roughly 500 engines) • GP7000 – Superb engine (Fuel, noise), affected by A/C p
Slide 18: Further Potential Activity Fields Under Evaluation
Further Potential Activity Fields Under Evaluation Strategic Pillar Status 3. Strengthen core business by OEM: accessing related niche • “Aero Solutions” complements RRSP - businesses 2008 expected revenues ~40 m € • Project “More Electric Engine” examines commercial applications for DECU/DECMU MRO:
Slide 19: Continuous Process of M&A Evaluation
Continuous Process of M&A Evaluation Follows Strict Strategic and Financial Criteria Strategic Pillar Status 4. Evaluate acquisition opportunities Motivation: • Enhance position as Tier 1 supplier and reliable partner • Leading role in European consolidation • Access to growth markets / products Cri
Slide 20: Cost Reduction Programs Ensure Competitiveness
Cost Reduction Programs Ensure Competitiveness in Challenging Macro Environment Strategic Pillar Status 5. Further improve cost New cost cutting program: competitiveness • Challenge 2010 • Expected savings ~ 50 m €from 2010/11 on Existing cost cutting initiatives: • Impact 06 • 50 m €savings (1/3 in
Slide 21: Update on Commercial MRO
Update on Commercial MRO Dr. Stefan Weingartner President and CEO Commercial Maintenance
Slide 22: Agenda
Agenda 1. Commercial MRO 2. Summary H108 Financials 3. Market Outlook & Strategy 4. Operations 26 September 2008 22
Slide 23: MTU Maintenance at a Glance
MTU Maintenance at a Glance • Largest independent MRO provider in the world • Attractive product portfolio • Profitable and fast growing JV in China • Great synergies within MTU-group • Excellent and highly skilled workforce at all locations 26 September 2008 23
Slide 24: Commercial MRO – Overview
Commercial MRO – Overview Status Quo • Hanover: operational performance back on track • New organisation at MTU Maintenance Hanover: strongly customer focused and financially driven • New test cell in operation at MTU Maintenance Hanover • 17% organic sales growth in US$ • High double digit sales gr
Slide 25: Agenda
Agenda 1. Commercial MRO 2. Summary H108 Financials 3. Market Outlook & Strategy 4. Operations 26 September 2008 25
Slide 26: Summary H108 Financials – MRO Business
Summary H108 Financials – MRO Business Revenues Revenues MRO OEM OEM Business Business EBITDA MRO OEM Business m€ m€ 100 15 600 505 513 80 10.9% + 2% 10 400 60 55 8-10% 5.8% -55% 40 30 5 200 20 0 0 0 H1 2007 H1 2008 H1 2007 H1 2008 2009 ff. EBITDA Margin FX adjusted sales H1 2008: +17% 31.12.2007 30
Slide 27: Agenda
Agenda 1. Commercial MRO 2. Summary H108 Financials 3. Market Outlook & Strategy 4. Operations 26 September 2008 27
Slide 28: Commercial MRO – Market Trends
Commercial MRO – Market Trends General Market • High oil and jet fuel prices • Slow-down in air traffic growth due to oil price and weakening economy • Above average MRO-growth in the Middle East, Asia and Latin-America Market Trends • Retirement of fuel-inefficient aircraft • Ongoing consolidation
Slide 29: Commercial Engine MRO Forecast
Commercial Engine MRO Forecast Forecast 2008-17 (in bn USD) MTU’s Response 25 • MTU continuously adds new 20 engine programs to keep portfolio young • Cooperation in repair and material 15 solutions = CAG R 3 .8 % • Focus on High-tech development 10 and service solutions (eg. MTU’s Total Engine Care
Slide 30: Capacity Reduction Announcements by Airlines
Capacity Reduction Announcements by Airlines (April – Sep 2008) Affected Engine Types (Total 1500 units) Affected Market Areas ~ 20% V2500 PW2000 CFM56-7 ~ 25% CF6-80C RoW ~ 80% other engine ~ 75% programs North America 80% of the affected engines have no or 75% of the announced fleet reductions lim
Slide 31: Top 10 Engine MRO Providers 2007
Top 10 Engine MRO Providers 2007 2007 Estimated Engine MRO Revenue (US$ Bill.) Market Share 1 GE Engine Services 15% 2 Rolls-Royce 9% 3 Lufthansa Technik 8% 4 Pratt & Whitney 8% 5 MTU Maintenance* 7% 6 Delta TechOps 5% 7 Air France/KLM 4% 8 Snecma Services 4% 9 American Airlines 3% 10 SR Technics 2%
Slide 32: Agenda
Agenda 1. Commercial MRO 2. Summary H108 Financials 3. Market Outlook & Strategy 4. Operations 26 September 2008 32
Slide 33: MTU Maintenance Hanover: Achievements Over the Last 9 Months
MTU Maintenance Hanover: Achievements Over the Last 9 Months TAT OTD 100 100% • TAT decreased by 26% 90 80% Target TAT < 60 days 80 60% 40% 70 • OTD improved from 28% to 78% target 60 20% Target OTD >90% 50 0% Dec 07 Aug 08 Dec 07 Aug 08 • Inventory decreased by 7% Inventory 100% • 21 Kaizen Worksho
Slide 34: Masterplan Hanover – Major Initiatives to Improve Performance
Masterplan Hanover – Major Initiatives to Improve Performance Objective Ramp up phase – SLUs large engines • Integrated production system 45 • Decrease Inventory 40 • Reduce TAT • Increase flexibility 35 Implementation 30 • Smooth introduction vs. radical changes 25 • Implementation with a dedicated
Slide 35: Masterplan Hanover: Structure of Project
Masterplan Hanover: Structure of Project Resolve Clean-up Boost Win new Root-causes Legacy-Issues Efficiency Contracts Processes Inventory Cost Turnover • Planning • Inventory • Material • Incoming Orders • Production • WIP / GDNI • Personnel • Supply Chain • Receivables • SG&A Integrated Production
Slide 36: Masterplan Hannover: Project Plan On Time and On Track
Masterplan Hannover: Project Plan On Time and On Track Mar Apr May Jun Jul Aug Sep Oct Nov Dec Clean-up legacy issues from switch to new system Implementation of new organisation Definition of new integrated production system Implementation of new integrated production system CIP workshops sup
Slide 37: Kaizen Workshops Improve Productivity at MTU Maintenance Hannover
Kaizen Workshops are Regularly Conducted in Order to Improve Productivity at MTU Maintenance Hannover Examples: Job Order Planning and Repair Line 5 (V2500 HPT Blades) Disposition Process • Kaizen Workshop to improve efficiency and • Kaizen Workshop in order to reduce process TAT disturbances • Prod
Slide 38: Commercial MRO – New Test Facility in Hannover
Commercial MRO – New Test Facility in Hannover State of the art test facility Key facts • Risk mitigation: >500 test runs/anno • Permission to run both test cells at the same time capacity increase • Ready to test all new large engines CF6- 80E1, GP7000, GE90 • State-of-the-art control room requir
Slide 39: Commercial MRO – Growth Development Zhuhai Facility
Commercial MRO – Growth Development Zhuhai Facility Introduction Key Facts • No. 1 MRO facility in China with significant market shares (V2500 ~90%; CFM56-3 ~30%). • Future growth is supported by increasing demand for CFM56-7 MRO services in Asia. • MRO capabilities cover approx. 80% of narrow-body
Slide 40: Commercial MRO – Technology Developments Leading to Improved Services
Commerical MRO – Technology Developments Leading to Improved Services Intelligent maintenance- and repair concepts are key to value optimized maintenance. • MTUPlus workscopes and MTUPlus repair solutions are effective, economic measures to address customer and environmental topics as: reduction of
Slide 41: Commercial MRO - Highlights Repair Development H1 2008
Commercial MRO - Highlights Repair Development H1 2008 Repair Development (High Tech) • CBN Tip Coating ‒Application: V2500 HPT Blades ‒USP: material cost reduction, shorter process time, higher oxydation resistance (EGT Margin improvement) ‒EASA approval received on Sept. 10, 2008 • Airfoil Replace
Slide 42: Conclusions
Conclusions • Marginal impact on MTU by announced engine retirements • Implementation of new production/MRO system • Operational improvements implemented positive impact on bottom line • Q3 trend confirms year end targets • Sustainable basis for future profitable growth established 26 September 20
Slide 43: Overview of New Cost Efficiency Initiatives
Overview of New Cost Efficiency Initiatives Reiner Winkler, CFO
Slide 44: Agenda
Agenda 1. HY 2008 and Guidance 2. Perspectives for 2009 3. Cost Initiatives and Projects: Existing Projects and New Initiatives 26 September 2008 44
Slide 45: H1/2008: Revenue Growth 12% on US$ basis
H1/2008: Revenue Growth 12% on US$ basis MTU Group Revenues (m€) Segment Revenues (m€) *increase on US$ basis: 17% *increase on US$ basis:12% ** increase on US$ basis: 12% - 0.4% * +2%* 505 513 MRO +2% Military 223 227 1.261 1.256 Business - 3%** Commercial 545 531 Business H1 2007 H1 2008 H1 2007 H
Slide 46: H1/2008: EBITDA Improved by 8% on Group Level
H1/2008: EBITDA Improved by 8% on Group Level MTU Group EBITDA adj. (m€) Segment EBITDA adj. (m€) 22,0% 16,4% 10,9% 15,5% 14,4% 5,8% -46 % 30 + 8% 55 + 33 % 181 195 167 126 H1 2007 H1 2008 H1 2007 H1 2008 Group margin OEM MRO OEM margin MRO margin 26 September 2008 46
Slide 47: H1 2008: Net Income Grew by 80%
H1 2008: Net Income Grew by 80% Free Cash Flow Net Income / EPS 100 €m €/share 90 200 2,0 -5% 180 80 160 1,61 70 1,5 140 60 120 50 100 1,0 82 40 77 80 0,85 +79% 30 60 0,5 20 40 80 10 20 45 0 0,0 0 H1 2007 H1 2008 H1 2007 H1 2008 Net Income EPS 26 September 2008 47
Slide 48: FY 2008 Forecast Remains Unchanged
FY 2008 Forecast Remains Unchanged Revenues (m€) EBITDA adj. (m€) *increase on US$ basis: ~ 9 -10% 15,3% 15,0% stable stable 2.576 2.600 393 390 FY 2007 Outlook 2008 FY 2007 Outlook 2008 Free Cash Flow (m€) Net Income / EPS reported (m€) in €/share 3,6 3,0 154 + 17% 180 132 ~ 100 FY 2007 Outlook 200
Slide 49: New Key Financial Figure: EBIT adj.
New Key Financial Figure: EBIT adj. Main reasons for switching to EBIT adj. from 2009 onwards 1. Depreciation & amortization are part of operative costs, but not included in EBITDA. In order to extend the attention on the total operative cost base, MTU internally switched to EBIT adj. in 2008: EBIT
Slide 50: Reconciliation EBIT adj. / EBITDA adj. – MTU Group
Reconciliation EBIT adj. / EBITDA adj. – MTU Group 2007 2008 G Sales 2,575.9 2,600.0 EBIT reported 243.3 280.0 + PPA depr./ amort. 54.6 50.0 +/- other adjustments 14.7 extraordinary write-off CF34 licence 14.7 EBIT adjusted 312.6 330.0 EBIT adjusted margin 12.1% 12.7% D&A w/o PPA 80.3 75.0 R&D capit
Slide 51: Agenda
Agenda 1. HY 2008 and Guidance 2. Perspectives for 2009 3. Cost Initiatives and Projects: Existing Projects and New Initiatives 26 September 2008 51
Slide 52: Forecasts of Banks for FX Rate USD/Euro
Forecasts of Banks for FX Rate USD/Euro Reuters Poll (more than 50 banks) 1,60 Actuals 1,55 1,50 July-Poll 1,45 April-Poll Jan-Poll 1,40 Sept-Poll 1,35 1,30 1,25 Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09
Slide 53: MTU Assumes Average USD Exchange Rate of 1.50 for 2009
MTU Assumes an Average USD-exchange in the Range of 1.50 for 2009 1,60 Actuals Sept-Poll maximum 1,55 1,50 MTU- FX rate assumption 2009 1,45 1,40 Sept-Poll mean Sept-Poll minimum 1,35 1,30 1,25 Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep 08 08 08 08 08 08 08 0
Slide 54: MTU Has Extended the Hedge Portfolio on a Favourable Basis
MTU Has Extended the Hedge Portfolio on a Favourable Basis Hedge book as of September 25 2008 (% of net exposure) m US$ 626 (=72%) 520 (=56%) 330 (=33%) 2008 2009 2010 1,37 1,43 1,44 Average hedge rate (US$/EUR) 26 September 2008 54
Slide 55: Current Expectations: External Assumptions for Passenger Traffic
Current Expectations: External Assumptions for Passenger Traffic Source: Airline Monitor July 2008 2009 2010 USA -1,3% 3,0% Europe 2,1% 4,2% Asia 5,3% 7,5% Worldwide 2,3% 5,1% Sales expectations dependent on the financial situation of the airlines 26 September 2008 55
Slide 56: Current Expectations: MTU Assumptions for 2009
Current Expectations: MTU Assumptions for 2009 Commercial series: ramp up of GP7000, i.e. slightly higher sales in series in total compared to 2008 Spare Parts: -5% / +5% compared to 2008 MRO: sales with a slight increase compared to 2008 and margin improvement Military business stable compared to 2
Slide 57: Agenda
Agenda 1. HY 2008 and Guidance 2. Perspectives for 2009 3. Cost Initiatives and Projects: Existing Projects and New Initiatives 26 September 2008 57
Slide 58: Overview of Current MTU Cost Efficiency Initiatives
Overview of Current MTU Cost Efficiency Initiatives Impact 06 CoE-Concept • Reduction of Indirect Costs • Creation of centers of excellence Complexity reduction and • Improving general framework for offshoring – Manufacturing – Development • Reduction of Direct Labour – MRO Costs MTU Polska: Optimis
Slide 59: Progress of MTU Polska
Progress of MTU Polska • Ramp up of the production, start of production in Q2 2009 Friday, 01.08.08 Friday, Freitag,22.09.08 dem 12.09.08 26 September 2008 59
Slide 60: Introducing a New Cost Cutting Program “Challenge 2010”
Introducing a New Cost Cutting Program “Challenge 2010” Impact 06 CoE-Concept Challenge 2010 • Reduction of Indirect Costs • Creation of centers of excellence • Reduction of Product Costs Complexity reduction and • Improving general framework for offshoring – Manufacturing • Optimization of producti
Slide 61: Challenge 2010
Challenge 2010 Major initiatives: - Optimization of supply chain - Realization of best cost country supplies - Reevaluation designs for cost improvements - Optimization of existing production processes Optimization of production processes and R&D 50m€savings from 2010/11 Product Cost Reduction 26 Se
Slide 62: Actual Status Product Cost Reduction
Actual Status Product Cost Reduction 1. Define 12/2008 2. Measure 3. Analysis 4. Improve Definition of scope (goals, organi- Collection and structuring of data Identification of cost drivers firm establishment of cost reduction measures zation, time frame) (existing cost reduction programs,
Slide 63: Actual Status Optimization Production Processes and R&D
Actual Status Optimization Production Processes and R&D 12/2008 1. Define 12/2009 2. Measure 3. Analysis 4. Improve Definition of scope (goals, organi- Collection and structuring of data Identification of cost drivers firm establishment of zation, time frame) (existing optimization optimization me
Slide 64: Summary and Conclusion
Summary and Conclusion H1 shows profitable growth of MTU Despite downturn expectations, our guidance 2008 can be confirmed 2009: In contrast to some sharp downturn scenarios, MTU is slightly optimistic for the next year. We see risks and chances for 2009. But due to the volatility of the current mar
Slide 65: Reconciliation EBIT adj. / EBITDA adj. – MTU Group
Appendix Reconciliation EBIT adj. / EBITDA adj. – MTU Group 2005 2006 2007 H1 2008 2008 G Sales 2,182.7 2,416.2 2,575.9 1,256.1 2,600.0 EBIT reported 131.2 183.8 243.3 132.4 280.0 + PPA depr./ amort. 84.7 65.0 54.6 24.4 50.0 +/- other adjustments -54.2 -11.1 14.7 Restructuring costs 2.8 20.0 R&D pro
Slide 66: Reconciliation EBIT adj. / EBITDA adj. – OEM
Appendix Reconciliation EBIT adj. / EBITDA adj. – OEM 2005 2006 2007 H1 2008 Sales 1434.8 1,483.1 1,599.5 758.1 EBIT reported 94.3 119.0 204.1 118.7 + PPA depr./ amort. 72.6 56.8 46.9 21.9 +/- other adjustments -56.6 -11.7 Restructuring costs 2.8 20.0 R&D provision consumption -38.1 -16.1 Property S
Slide 67: Reconciliation EBIT adj. / EBITDA adj. – MRO
Appendix Reconciliation EBIT adj. / EBITDA adj. – MRO 2005 2006 2007 H1 2008 Sales 766.9 954.7 1,004.7 513.0 EBIT reported 38.4 67.7 39.9 15.5 + PPA depr./ amort. 12.1 8.2 7.7 2.5 +/- other adjustments 2.4 0.6 Impairment MTU Canada 2.4 0.6 Extraordinary write-off CF34 license 14.7 EBIT adjusted 52.9
Slide 68: Update on Technology
Update on Technology Dr. Jörg Henne, SVP Engineering and Technology
Slide 69: Agenda
Agenda 1. Environmental and Economic Challenges 2. The Geared Turbofan Concept 3. Geared Turbofan Technology Development & Demonstrator Program 4. MTU’s Long-term Technology Program Claire 26 September 2008 69 Environment al and Economic Challeng es
Slide 70: Environmental and Economic Challenges
Environmental and Economic Challenges Climate Change Emissions Requirements Graph shows • Tight regulations locally and by ICAO observations (black line) and model • CO2 reduction driven by community and political results with (red line) and demands (worldwide climate changes) without (blue line) an
Slide 71: Environmental and Economic Challenges: Airport Noise Restrictions
Environmental and Economic Challenges Growth in Airport Noise Restrictions Noise Requirements 500 • Tight regulations locally and by ICAO Restrictions: • Curfews • Noise is becoming an important economic 400 Number of Airports • Noise Charges factor (fees, quota, flight ban) • Noise Level Limits 300
Slide 72: Agenda
Agenda 1. Environmental and Economic Challenges 2. The Geared Turbofan Concept 3. Geared Turbofan Technology Development & Demonstrator Program 4. MTU’s Long-term Technology Program Claire 26 September 2008 72
Slide 73: Geared Turbofan Design Objectives
Geared Turbofan Design Objectives Criteria Existing Engine Objective Fuel Burn Base > -12% Noise -2 to -4 dB rel. ICAO stg. 4 > - 20dB rel ICAO stg. 4 Emissions - 40% rel ICAO96 -60% rel ICAO 96 Maintenance Cost Base > - 30% Reliability Base Zero Target (no IFSDs) • Fuel Burn is most critical object
Slide 74: Geared Turbofan Engine Concept
Geared Turbofan Engine Concept High Bypass Low Speed Fan High Speed Low Pressure Turbine Fan Drive High Speed Gear System Low Pressure Compressor 26 September 2008 74
Slide 75: The Geared Turbofan Heavily Benefits from the High Speed LPT
The Geared Turbofan Heavily Benefits from the High Speed LPT GTF LPT + 60% speed • 3 stages vs 5 • - 40% airfoil count • - 60 - 70% weight V2500 LPT • Reduced stage and airfoil count due to high rotational speed • Reduced weight and cost • High efficiency due to low aerodynamic loading and high row
Slide 76: Significantly Reduced Noise Emission
Significantly Reduced Noise Emission Munich International Airport (MUC) Today‘s Aircraft Geared Turbofan Powered Next Generation Aircraft Noise Simulation: Pratt & Whitney SEL Contour Source: Wyle Laboratories 72% Reduction in 75dB Single Event Noise Contour 26 September 2008 76
Slide 77: Geared Turbofan in Comparison with Alternative Concepts
Geared Turbofan in Comparison with Alternative Concepts Geared Turbofan • - 15 % fuel burn rel. to year 2000 engine • - 24 EPNdB noise emission rel. to year 2000 engine • Technology readiness 2008 Open Rotor • Potential SFC benefit in comparison to Geared Turbofan, but not (fully) useable • High noi
Slide 78: Agenda
Agenda 1. Environmental and Economic Challenges 2. The Geared Turbofan Concept 3. Geared Turbofan Technology Development & Demonstrator Program 4. MTU’s Long-term Technology Program Claire 26 September 2008 78
Slide 79: Technology Development & Validation
Technology Development & Validation Gear System Test Facility (P&W) HPC Rig (MTU) LPC Rig (P&W) LPT in the Clean Demo. (ATF Stuttgart) 26 September 2008 79
Slide 80: Geared Turbofan Demonstrator Program Milestones
Geared Turbofan Demonstrator Program Milestones Build Start Ground Test 747 FTB 1 st Flight A340 1st Flight May 2007 Nov. 2007 July 2008 4Q 2008 2007 2008 • Ground and flight test to demonstrate performance, noise and engine installation • Technology Readiness by end of 2008 to support product EIS e
Slide 81: GTF Demonstrator Program Has Gained Significant Attention
The Geared Turbofan Demonstrator Program Has Gained Significant Attention from Airliners and Airframers The GTF Demo Program met all targets; it has completed 250 hrs bench testing and achieved approximately 50 hrs flight testing. „I think it‘s going to be a good engine (the P&W-GTFTM). We don‘t thi
Slide 82: The Favorable Concept for Various Applications
The Favorable Concept for Various Applications Mitsubishi MRJ Bombardier CSeries A320 / B737 Successor • First two exclusive applications to new aircraft families • Installation on today’s wide body and single aisle airplanes appears possible 26 September 2008 82
Slide 83: Agenda
Agenda 1. Environmental and Economic Challenges 2. The Geared Turbofan Concept 3. Geared Turbofan Technology Development & Demonstrator Program 4. MTU’s Long-term Technology Program Claire 26 September 2008 83
Slide 84: MTU Technology Program CLAIRE
MTU Technology Program CLAIRE CLean AIR Engine Technology Program Base CLAIRE 1 CLAIRE 2 CLAIRE 3 100 ∆CO2 % up up to to up to 90 20% 15% 30% ACARE 80 TARGET 70 * Counter-Rotating Integrated Shrouded Propfan V2500 Geared Turbofan CRISP* IRA-Propfan** ** Intercooled recuperated 2005 2010 2015 2020 fr
Slide 85: Intercooled Recuperated Aero Engine
Intercooled Recuperated Aero Engine Intercooler Recuperator Fan HPT HPC LPT IPC Advanced engine cycle • Recuperator to exploit the heat of the exhaust gas • Intercooler to reduce work needed to compress air The Intercooled Recuperated Engine offers high thermal efficiency and low NOx-emissions. 26 S
Slide 86: Summary
Summary • Future engines need to reflect increasing environmental and economical challenges • The Geared Turbofan offers huge benefits with respect to fuel consumption, noise, and maintenance cost • The Geared Turbofan has achieved technology readiness and has been demonstrated in flight. The engine
Slide 87: 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 forwardlooking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could c