Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Paris Air Show 2019 Investor & Analyst Event
25 slides from Mtu Aero Engines's conference presentation, Jun 19, 2019
Slide 1: Paris Air Show 2019 Investor & Analyst Event
Paris Air Show 2019 Investor & Analyst Event June 19, 2019
Slide 2: Agenda – Analyst / Investor Event at Paris Air Show
Agenda – Analyst / Investor Event at Paris Air Show Time Event 15:00 Begin & Welcome 15:00 – 15:45 MTU Management Presentation 15:45 – 16:15 Q&A Session 16:15 – 17:00 Get together 17:00 End of the event 19 June 2019 Paris Air Show - Event with Investors & Analysts 2 © MTU Aero Engines AG. The inform
Slide 3: Market Environment & Potential Market Opportunities
Market Environment & Potential Market Opportunities Reiner Winkler, Chief Executive Officer June 19, 2019 – Paris Air Show
Slide 4: Market environment remains encouraging
Market environment remains encouraging Market Indicator 2018 2019 F Passenger Traffic +6.5% +5.0% … normalizing at historical levels Airline Profits $30 bn $28bn … remain on a healthy level Crude Oil (Brent) $71 $70 Oil price in a range between $60 and $70 Originally 10% growth expected, but uncerta
Slide 5: MTU secured engine orders in the value of 1.3 bn US$ at the Paris Airshow 2019
MTU secured engine orders in the value of 1.3 bn US$ at the Paris Airshow 2019 Over 800 GTF and GENX engines have been ordered or optioned Undisclosed customers/lessors (China) 19 June 2019 Paris Air Show - Event with Investors & Analysts 5 © MTU Aero Engines AG. The information contained herein is
Slide 6: GTF technology well positioned in single-aisle and regional jet market
With 4 airframers and 5 aircraft platforms, the GTF technology is already very well positioned in the single-aisle and regional jet market Today Future A320 Family ceo/neo A321neo NGSA Airbus A220 with PW1100G PIP 737NG/MAX MAX7/10 NGSA Boeing C919 MS-21 Embraer E-Jet E2 (195/175) Regional Jet Bomba
Slide 7: Widebody segment: CF6-80C, GEnx and GE9X
In the widebody segment, MTU benefits from a continuing positive market environment for CF6-80C, GEnx and GE9X Today Future A380–800 A350–1000 stretch? A350 A330 ceo/neo A330 successor? 747-8I/F 777-9 stretch? 777X 777–300ER 787 787 successor? 767F NMA? CR929 Entry into 2019 2030 Service Source: MTU
Slide 8: MTU participates in the Next Generation Fighter
MTU participates in the Next Generation Fighter MTU and Safran join forces to develop the Next European Fighter Engine (NEFE) Highlights • Successor for Eurofighter / Rafale • First prototype expected by ~2031 • Entry into service expected by ~2040 • Roughly 1,100 engines (incl. spares) expected • J
Slide 9: Update Commercial OEM and Commercial MRO
Update Commercial OEM and Commercial MRO Michael Schreyögg, Chief Program Officer June 19, 2019 – Paris Air Show
Slide 10: Geared Turbofan engines on track
Geared Turbofan engines on track Highlights • Further ramp up of GTF deliveries in 2019 on track • 460+ GTF powered aircraft delivered to 37 airline operators worldwide as of May 2019 • GTF engines performed over 2.5 million flight hours • GTF performance targets all met • Seal and combustor upgrade
Slide 11: Independent MRO continues its success and secures future growth
Independent MRO continues its success and secures future growth Independent MRO campaign wins 2014 – 2019 in US$ billion 5,0 Highlights 4,5 4,5 • Ongoing strong campaign wins over the past years 4,0 • 1.8 bn U$ of new campaign wins secured per May 2019 3,5 12 year GE90 contract signed with United
Slide 12: Global network of MTU Maintenance centers of excellence
Global network of MTU Maintenance centers of excellence All Locations are getting ready to efficiently master future growth MTU Maintenance Lease Services MTU Maintenance Hannover EME AERO – New GTF MRO shop New repair Shop in Serbia MTU Maintenance Zhuhai MTU Maintenance Canada MTU Maintenance Berl
Slide 13: Facts of the new parts repair shop in Serbia
Facts of the new parts repair shop in Serbia Highlights • 100% MTU subsidiary • Focus on commercial parts repairs • Best cost location • 80% labor cost advantage compared to Germany • Operations expected to start in 2022 • Initial capacity for 400,000 repair hours • 400-500 employees with option to
Slide 14: Status OEM capacity extension and Technology Roadmap
Status OEM capacity extension and Technology Roadmap Lars Wagner, Chief Operating Officer June 19, 2019 – Paris Air Show
Slide 15: Extension of MTU Munich facility
Extension of MTU Munich facility Focus on high tech work, high automation, increase in efficiency and reduction in production costs Further optimization of production facilities for next generation New engineering of engines center New production center LPT disk Extension of logistic center New test
Slide 16: MTU Polska enabler for competitive production costs
MTU Polska enabler for competitive production costs Focus on low and mid tech work and additive manufacturing processes Highlights • In operation since 2009 • 1st extension took place in 2014/15 • 2nd extension completed until end of 2019 • 10th anniversary celebrated on May 16, 2019 • Currently ove
Slide 17: MTU's approach CLAIRE | Clean Air Engine
MTU’s approach CLAIRE | Clean Air Engine Vision 2020 & Flightpath 2050 Targets BASE CLAIRE 1 CLAIRE 2 CLAIRE 3 15% 40% 25% 50% 40% 65% BPR 5 BPR 12 BPR > 14 BPR > 20 OPR 36 OPR 46 OPR 60+ OPR > 70 Integrated Ultra Efficient Ultra Low Engine Fan + Pressure More V2500 Geared ∆ CO2 in % Ratio Electri
Slide 18: Propulsion concepts roadmap towards Emission-Free Flying
Propulsion concepts roadmap towards “Emission-Free Flying” – our responsibility today Application range and emission reduction potential readiness short urban -100% long0% level mobility range range evolutionary CO2/NOx Gen2 GTF development based propulsion gas turbine two revolutionary engine conce
Slide 19: Next European Fighter Engine (NEFE) – a new impulse at the military market
Next European Fighter Engine (NEFE) – a new impulse at the military market Military technology development for NEFE Targets Key enabler Long range Variable cycle engine technology High mission flexibility Very efficient components High availability High temperature, low weight materials
Slide 20: Key Synergies | Technical, Competences & Technology Funding
Key Synergies | Technical, Competences & Technology Funding Commercial & Military Technology Development Gen2 GTF Gen2 GTF TRL5 2027+ EIS 2033+ commercial military NEFE Prototype NEFE Prototype TRL5 2023+ EIS 2031+ Significant synergies between commercial and military technology development achievab
Slide 21: Guidance 2019, Long term Outlook and Cash Deployment Strategy
Guidance 2019, Long term Outlook and Cash Deployment Strategy Peter Kameritsch, CFO June 19, 2019 – Paris Air Show
Slide 22: Guidance 2019 confirmed
Guidance 2019 confirmed Organic Growth Military revenues + 10% Commercial OE Up low teens Commercial Spares Up mid to high single digit Commercial MRO Up high single digit* Total Group Sales ~ 4.7 bn € EBIT adj. margin ~ 15.5% Net Income adj. Growth in line with EBIT adj. CCR** 55% - 65% (ex 50% - 6
Slide 23: Long-term outlook 2019–2025
Long-term outlook 2019–2025 Improved Free Cashflow conversion confirmed despite ongoing capacity build-up Net Income adj. Steady growth Growing less than revenues Working Capital • No consumption of prepayments • Inventory turns will improve • More FHAs with preferential Cashflow profile Will declin
Slide 24: MTU's Cash Deployment Strategy
MTU’s target is a balanced leverage ratio in the range of 1 x net Debt/EBITDA MTU’s Cash Deployment Strategy Prio Instrument 2019–2025 Investment in Limited opportunities for new programs I organic growth Ongoing spendings for capacity build-up Dividend II Growth stronger than net income deployment
Slide 25: Thank you very much for your attention! Q&A
Thank you very much for your attention! Q&A June 19, 2019 – Paris Air Show
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