MTU Aero Engines : Speech of Management Board 2026

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26 ‌"Getting down to it -now and for our future" Annual General Meeting Speech of the Chief Executive Officer Dr. Johannes Bussmann M T U A E R O E N G I N E S | M U N IC H , M AY 7 TH 2 0 2 6 Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 2 Speech by the CEO Dr. Johannes Bussmann Annual General Meeting MTU Aero Engines AG Speech by the CEO Dr. Johannes Bussmann "Getting down to it - now and for our future", May 7 2026 in Munich - Speech text published in advance on April 30, 2026. The speech delivered at the Annual General Meeting may differ from this advance manuscript. The spoken word is binding - It certainly makes an impression, doesn't it? You can immediately see from these images why we love aviation: Precision. Power. The ability to connect people. Already as a young boy, I always wanted to understand how something so heavy could fly at all … I grew up in a rural low-flying area and used to watch the jets pass by, completely spellbound. Long after I'd taken my hands off my ears. Dear Shareholders and Shareholder Representatives, Ladies and Gentlemen, Welcome to the Annual General Meeting of MTU! Two years ago, almost to the day, I introduced myself to you - as a candidate for the Supervisory Board at that point. A lot has happened since then, and today I'm in a position to report to you, for the first time as CEO, on how your company is doing. In short: MTU is on the rise. MTU is growing. The whole MTU team is getting down to it. For MTU today and for our future. Since January, our Executive Board team has been fully completed. In Katja, Silke, and Ottmar, we have an excellent mix of experience in MTU, aviation, and other sectors. This helps us a lot in our day-to-day work: to preserve what is good as well as to create fresh momentum. We've mapped a clear trajectory. We are on our way at full thrust. So, what are the next minutes going to be about? ⁄ Firstly: We delivered in 2025. ⁄ Secondly: We are taking advantage of the major market opportunities ahead. ⁄ Thirdly: We achieve this together as one team. To ensure that MTU will be even stronger tomorrow than it is today. Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 3 Speech by the CEO Dr. Johannes Bussmann Getting down to it 2025 was a strong year. Despite tariffs and a weak US dollar, we delivered very reliable results: ⁄ Our adjusted revenue was up 16 percent. ⁄ Adjusted EBIT was as much as 29 percent higher. ⁄ And adjusted net income rose by 27 percent. ⁄ And what's particularly important is that our free cash flow doubled. Strong revenue. Strong earnings. Strong cash flow. These impressive figures are no accident. They show that we keep our word. And they are the result of operational strength. We did a number of things right in 2025. In the commercial and military business. And in maintenance. Commercial Business In our engines business for commercial aircraft, I'm sure you want to know how things are going with the geared turbofan engine . As you are aware, two-and-a-half years ago, our consortium started an unscheduled recall to workshop of the GTF. The reason was a materials issue in a component produced by our partner Pratt & Whitney. Since then, we at MTU have been making a very substantial contribution to the solution . Our teams are focusing on working through this schedule reliably. It should be resolved by no later than early 2027. Financial matters with customers as early as this year. Our customers will be happy with that. They rightly expect their planes to be up in the sky, able to earn money, as soon as possible. And we are of course happy as well. The GTF has been in operation since January 2016 . In these ten years, it has … ⁄ carried over 1.7 billion passengers, ⁄ saved 10.6 billion liters of fuel ⁄ and completed over 50 million flight hours. The GTF stands for strength in the present. And for stability in the future. But let's stay with the present for a little while longer. Military Business The focus on our business with military engines is greater than ever. Our most important products are the propulsion systems for the Eurofighter and the A400M transporter. The Eurofighter is currently protecting NATO's eastern flank. New orders from Germany, Italy, and Turkey have secured volume production of the engines well into the 2030s. Maintenance Business In the maintenance business, we service and repair engines at locations between Vancouver and Perth. Between Zhuhai and Sao Paulo. In total, our network maintained around 1,500 engines in 2025 . This means we got fit an average of four engines every day. For customers ranging from United Airlines through DHL down to China Southern. This makes us the number two worldwide. Our focus is always on finding the best solution for our customers. We're also constantly looking for ways to further improve our processes for them. For example, we recently acquired a stake in a software provider that digitizes data covering the entire lifecycle of an engine. This is intended to make our leasing business even more convenient and straightforward for customers. It's only a small example, but it makes one thing clear: you don't have to do everything yourself. When we find good solutions on the market, we seize the opportunity - always with the customer's added value in mind . Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 4 Speech by the CEO Dr. Johannes Bussmann Share Price & Dividend Our share price has reflected this operational strength since the Annual General Meeting a year ago. But despite strong results and very good prospects, our share price has been under pressure in recent months. Not least because of the conflicts in the Middle East. We do not take your loyalty for granted. Thank you very much for your support. It is also one of the reasons for proposing a dividend of 3.60 euros per share . That's 1.40 euros more than last year and represents a payout ratio of 20 percent of MTU's adjusted net income. A clear signal that we intend to gradually return to our target payout ratio of 40 percent. Our global MTU team is making today's and tomorrow's strength possible. On behalf of the entire Executive Board, I therefore want to thank our almost 14,000 colleagues . Thank you for your passion, your expertise, and your commitment to MTU! Outlook 2026 "Getting down to it" - that is our stance. We accept challenges. We seize opportunities. We actively shape the future. This will also apply in 2026. The number of passengers carried is set to rise again this year - to 5.2 billion. That's as if every person in Europe boards a plane seven times. Our order books are bulging, the backlog equating to more than three years' work. Although the most recent conflicts in the Middle East are currently weighing on aviation, we are confident that this will not change anything in the positive long-term trend . We are well represented with our modern engine products and are expanding this portfolio. That makes us resilient. For MTU this means that we will continue to grow . Profitably and in all business areas. Commercial. Military. Maintenance. This translates into our firm 2026 targets: ⁄ We want to increase adjusted revenue to between 9.2 and 9.7 billion euros. ⁄ And generate an adjusted EBIT of between 1.35 and 1.45 billion euros. ⁄ Adjusted net income is to follow a similar trajectory. ⁄ And we aim to achieve a ratio of free cash flow to adjusted net income of between 45 and 55 percent. In short: We deliver. We grow. We create value. Sustainably and profitably. Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 5 Speech by the CEO Dr. Johannes Bussmann Future Getting down to it does not end in the here and now. It is the driver of our future. And we are of course shaping this future in all three areas: Commercial, Military, Maintenance. Commercial Business Future in the commercial business means: more aircraft and more sustainable aircraft . In the next twenty years, the number of aircraft in the sky will double. Driven above all by growth in the middle class in India and Asia. At the same time, these new aircraft must become more sustainable. How can we achieve that? For example, with efficient and modern production . For almost two years, we have been manufacturing turbine discs in the world's most advanced automated production building in Munich. In automated processes, industrial robots equip components, tools, and machines; lathes and milling machines work as part of a network. Today, we can output up to 6,000 low-pressure turbine discs a year - for example for the GTF. In ten years' time, this number may double. Automation increases capacity, quality, and profitability. We will achieve more sustainable aircraft by tapping into the wealth of experience from over 50 million GTF hours flown. We are enhancing the engine further, making it even more efficient, quieter, and even more economical. I say "even more" because the GTF already has the lowest fuel consumption and the lowest CO 2 emissions of all short- and medium-haul aircraft. The enhanced variant is called GTF Advantage . It meanwhile has all the approvals, and the engine will take off in the course of this year. Customers can then use shop visits and let the GTF upgrade with the improved components of the Advantage. The same as it happens during a pit stop: The engine leaves more efficient than it arrived. The next step: to further develop the GTF so that it can power a next generation of aircraft . This timeline will take us into the second half of the next decade. In our industry, that is not as far as it sounds. You can imagine that such an engine can't just be developed and trialed overnight. That's why we and our US and Japanese partners decided already back last fall to take the GTF into the future together. To develop the next generation jointly. For more efficiency and fewer emissions. Future for us therefore means: We are making our engines even more sustainable step by step. We are building them to our usual highest standards of quality . And we're building more of them. Military Business The environment is more complex in the military business. It all appears clear. Future means that Germany needs greater military autonomy . The war in Ukraine, if nothing else, has made this painfully clear over the past four years. The status quo is that Germany depends on the USA for its air defense. We'll have to change that. To ensure national defense capabilities. For European sovereignty. But autonomy is created by actions, not words and waiting around. As committed Europeans, we would be very disappointed if the decision regarding the next generation of European fighters continues to be delayed. MTU has demonstrated its expertise in military engine construction for decades, especially in the Eurofighter. We are convinced that Europe needs a European fighter. Not only for independence in defense, but also to create jobs and safeguard expertise in Germany. It is equally indisputable that a European fighter needs a European engine. The engine is its heart. Politicians must finally make a clear decision on how to proceed . Declarations of intent alone will not make Europe more independent. At MTU, we have prepared in the past few months alternative scenarios for engine development. We are ready to do our part. Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 6 Speech by the CEO Dr. Johannes Bussmann We don't waste time on either/or debates: manned fighter jets or unmanned drones - we need a combination of both. That's why we're strategically expanding our portfolio: as a first step, we acquired a German provider of drone propulsion systems a month ago. With AeroDesignWorks, we gain immediate access to the market and an existing product. In this case, propulsion systems for light drones . These autonomous systems are becoming increasingly important in European defense strategy. Demand is growing rapidly. Over the next ten years, the global market volume is expected to more than triple. The demand is there. European drone providers are there. What has been missing so far are European propulsion systems. This is where MTU comes in. We bring decades of experience with military propulsion systems to the table. We can deliver reliable series production with the required quality. With our industrial strength, we aim to give the European drone market additional momentum on the propulsion side . Because European sovereignty can only be achieved where we have industrial mastery of our own military capabilities. MTU has strategically positioned itself in this growth market: ⁄ With AeroDesignWorks, we power light drones . ⁄ Through our subsidiary eMoSys, we can offer electric propulsion systems . ⁄ And for heavier drones , there are good opportunities to utilize conventional engine technology as well. We intend to expand our capabilities on this foundation. Looking ahead, we aim to be able to power a large portion of the drone spectrum. Wherever appropriate, we are happy to do so in collaboration with European partners. Our goal is for MTU to become the go-to partner for military engines in Europe . From rescue drones to fighter jets. From transport aircraft to helicopters. Because here, too, we are moving forward through our own initiative. Together with partners from France and Italy, we are working on a new, purely European next-genera-tion helicopter engine . We have just received a funding commitment from the European Defense Fund for this project. All of these are examples of how we seize opportunities when they arise for our business. Because, for us, future means that Europe needs to determ the course of its security policy and put it into practice. That's what we at MTU are using our expertise for in a targeted manner. Maintenance Business In the maintenance business, by contrast, the conditions are crystal clear: The global aircraft fleet in the sky will double - and their engines will require maintenance. How can we achieve that? We are growing through capacity, competence, and customer proximity. Last year, we increased capacity at our site in China. By opening a second plant. And a second test cell in Poland. We have created new competence in Ludwigsfelde. New competence means that the workshop is developing skills for a new engine type. The PW800 engine for business jets in this case. This segment has been on the rise again since the coronavirus pandemic and is turning into a market with much potential. We are developing greater competence, capacity , and customer proximity also at our site in Texas. We are expanding Fort Worth into a full-fledged location. Because we have acquired the license to service the LEAP engine. In terms of quantities, that is one of the largest engine programs in the world, used by both Airbus and Boeing. I very recently spent time with the site manager Gernot Sell on site. The video you're about to see gives you a glimpse behind the scenes. Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 7 Speech by the CEO Dr. Johannes Bussmann (Video Transcript) Johannes Bussmann: I am here in Fort Worth, Texas. Behind me you can see our new facility, where we will initially repair the LEAP engine. This engine is mounted beneath the A320neo as well as the 737 MAX; its population is huge. We are therefore looking forward to opening this facility. It is, of course, a lot of work building such a location. I am very pleased to be here today to take a good look at exactly that. Hello! Gernot Sell: Welcome to MTU Maintenance Fort Worth. We've achieved a great deal here. Come inside and take a look at what we've already accomplished. Johannes Bussmann: I can't wait. Johannes Bussmann: This is an impressive space. Gernot Sell: We have all the space we need here. We will load the first LEAP engine in the order system in July. From here, we will serve the North American market in future. Servicing LEAP and later also GEnx. And we will be available here as a support pillar for the future growth of MTU Maintenance. Johannes Bussmann: I'm looking forward to that already. I'd love to come back once the action has started. Gernot Sell: We can hardly wait for things to start ourselves. Gernot Sell: Here we can see the area that we are constructing right now so we can subsequently introduce the LEAP at the location. We will install the FOS systems here, which will later be available for disassembling and assembling the engines and then the modules that will also be disassembled and assembled next door. Gernot Sell: May I show you the training center now? Let's go. Gernot Sell: This is our training center, which we opened in November last year. This is where we have launched the training of the first batch of 23 mechanical engineers, whom we are training on LEAP-1B and on the MTU systems. Gernot Sell: Hi, Austin. Austin: How are you? Gernot Sell: Good to see you, Austin. Austin: Welcome. Gernot Sell: Austin, what's happening here exactly? Austin: We are right in the middle of the intensive maintenance training. We're currently focusing on the LEAP-1B. We've divided the engine up into larger modules for this purpose and are now working on the fan module. Gernot Sell: This is where we lay the basis for our quality standards. Here we put down the foundation for MTU's DNA, for our commitment to quality to deliver an airworthy engine of the highest quality to customers, as we are used to. Johannes Bussmann: Does that mean that, at the end of this training program, there will be exams, and everyone will have to pass the tests? Gernot Sell : Absolutely. Here we set both a practical and a theory exam to ensure that we achieve and guarantee the relevant quality standards. Johannes Bussmann: Very impressive work. Really great. I'm looking forward to when it starts in earnest. So, for now: I wish you a good start. I'll be back soon. Gernot Sell: We're also looking forward to that. Many, many thanks. (End of video) Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 8 Speech by the CEO Dr. Johannes Bussmann You've noticed: there's enthusiasm there. Our team is getting work done. By the way, the FOS system that Gernot mentioned stands for Fixed Overhaul System . The engine is suspended from it to make it easier and more efficient to work. We developed it ourselves. You may have seen how fired up I was. Even after so many years in the aviation industry, it's something special for me when a shop is built from the ground up . Just imagine: those enormous hall spaces you saw will be jam-packed with engines in a year's time. For us, future means that we are growing internationally . We are expanding our skills. And we go where our customers are. Balance & Investments A single red thread runs through everything we do: balance . For us, that means: ⁄ We think globally and strengthen our international presence. ⁄ We act in partnerships and have a balanced business portfolio. ⁄ We are at home in both the commercial and in the military area, with strong products. Balance protects us. Balance reduces risk. Balance strengthens our resilience. We invest to secure our stable position. Investments that we can afford thanks to our operational strength. ⁄ In new sites. ⁄ In expanded sites. ⁄ In ensuring our team has the necessary qualifications. ⁄ In new products and systems. ⁄ All this: Globally and here in Germany. These investments are a sign of our confidence - in MTU and also in Germany as a place to do business. An important signal, especially in times like these, I find. Outlook 2030 This faith in ourselves and in our potential translates into our medium-term outlook . ⁄ We expect revenue of between 13 and 14 billion euros in 2030. That is 50 to 60 percent more than in 2025. ⁄ The adjusted EBIT margin is planned to be between 14.5 and 15.5 percent. When you look at your own securities account, you are not likely to see many companies that can forecast such growth rates right now. Emissions-Free Flying MTU's success starts with our products. And it is evident in the fact that we reliably supply our customers. We intend to keep it that way in the future. That is why we are committed to tackling aviation's greatest challenge: achieving zero emissions . It is our duty to provide solutions for this. After all, technical challenges are best solved through engineering, not through ideology. In the short term , the comprehensive use of sustainable fuel could move a lot. The engines are already able to burn this fuel today. And the airport infrastructure needed is working as well. With this solution, we could use all the infrastructure we have today. Simply put: As soon as we have enough green fuel, this can be done very quickly, and we can fly sustainably. The actual challenge is, however, production: Large quantities at affordable prices are required. In the medium term , we want to further improve the geared turbofan , which is already efficient today. I just talked about this. Conventional engines will remain a key component in the future. Especially for long-haul flights. Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 9 Speech by the CEO Dr. Johannes Bussmann Together But our perspective does not end here. In aviation, we look decades ahead . ⁄ Firstly, we need this vision because of our extended development and production cycles. ⁄ Secondly, real technological change can only be achieved with vision. In the long term, hydrogen has this potential because of its energy density. It is at present the only technology with which we consider emission-free flying feasible on a commercial scale. To build such a future, it needs real development work. MTU is working on the Flying Fuel Cell TM to provide the propulsion system for a hydrogen-powered aircraft. I've brought something for you… This plate represents our opportunity to rethink flying . I still remember what I thought when I first saw it: how unremarkable. But an essential component for an aircraft that will one day only emit water vapor. This fuel cell converts hydrogen and oxygen into electrical energy and water . In other words, exactly what a fuel-cell aircraft is intended to use for propulsion - respectively for emission. In the animation here, you can see that we stack these cells. They thus provide enough voltage for the electric propulsion system - which, in turn, drives the propeller. With such a propulsion system, we aim to reduce current emissions to zero : no carbon dioxide. No nitrogen oxide. No particles that form contrails. Ladies and Gentlemen, why am I showing you this? Because it's an example of how we're developing the technology for the next-next generation of aviation . There is still some way to go, but we are making progress. Through actions, not words. Work on the technology is underway. The challenge will be getting it into the aircraft. That is why we agreed with Airbus last summer to collaborate on the development of such propulsion systems. And this automatically brings me to my last point for today: Getting down to it together -now and in the future. We've always worked successfully in partnerships: in the commercial and military business, we're counting over 15 partnerships in total. We work just as closely with our suppliers and customers. A cornerstone of partnerships is that the partners can rely on each other. ⁄ Our partners can do so because they know a healthy and high-performing MTU is at their side. ⁄ Our suppliers can do so because they can count on us even in challenging times. ⁄ Our customers can do so because we look for the best possible solution for them. We are also reliable for our employees . As employer now and in the future. Together as the MTU team, we are after all tackling one of the most beautiful challenges there is: profitable growth . And of course we are reliable for you, our shareholders . We reward your loyalty. We systematically let you share in MTU's success in the form of attractive dividends. Reliability is more than a word for us. It's our promise . Welcome Getting down to it Future Together Conclusion MTU Aero Engines AG 10 Speech by the CEO Dr. Johannes Bussmann Conclusion Ladies and Gentlemen, what was my focus today: ⁄ Firstly: We achieved a lot in 2025. And we're planning much, much more. ⁄ Secondly: We are financially strong. A technological leader. ⁄ Thirdly: We are getting down to it - for the future of your and our MTU. For sustainable and profitable growth. For this, we drive innovations. We invest. We deliver. With a clear trajectory and at full thrust. Because we know: Our tomorrow will be even better than our today. Because we take it in our own hands. Ultimately, there is one driving force and one responsibility that unite us: Our passion for engines . We connect people. We make sure that people travel safely . Thank you for walking this path together with us.

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