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DISCLAIMER: This document and all information contained herein is the sole property of Mitsubishi Aircraft Corporation (“Mitsubishi Aircraft”), and shall not be (a) used for any

purpose other than that for which it is supplied or (b) reproduced or disclosed in any way to any third party, in each case, in whole or in part, without Mitsubishi Aircraft’s prior written

consent. No rights or licenses under any intellectual property right in or to any information contained herein are granted by the delivery of this document or the disclosure of its contents.

This document and all information contained herein is provided for informational purposes only and is subject to change. In addition, the information herein may include certain

statements, estimates, targets and projections that reflect significant assumptions and subjective judgments by Mitsubishi Aircraft concerning anticipated results that may or may not prove

to be correct and there can be no assurance that any such statements, estimates, targets or projections are attainable or will be realized. No statement herein (or the acceptance thereof)

shall constitute any contractual offer by, nor create any obligation on the part of, Mitsubishi Aircraft. Mitsubishi Aircraft hereby expressly disclaims all representations or warranties,

express or implied, with respect to the information contained herein.

MITSUBISHI AIRCRAFT PROPRIETARY

Maintenance Cost Estimation Method of

an Aircraft Manufacturer

Taro Ogawa Strategic Marketing Director,

Mitsubishi Aircraft Corporation

September 10th, 2014

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Today’s Topics

• The Company and the MRJ

• Maintenance Cost Estimation Method of an Aircraft

Manufacturer

This picture is available for public use .

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

The Company and the MRJ

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Mitsubishi Aircraft Corporation

Mitsubishi Aircraft

Corporation America, Inc. (Addison/Dallas)

Mitsubishi Aircraft

Corporation Europe B.V. (Amsterdam)

Headquarters (Nagoya)

Tokyo Office

36% 64%

Capital : US$1.0 billion Development Bank of Japan

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MRJ Family

MRJ100X (Plan)

MRJ90

MRJ70 76 seats

88 seats

100 seats

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Airlines Airlines

Most Efficient

Aircraft

MRJ Key Features

Environment Environment

Lowest Fuel Burn,

Noise, Emissions

Passengers Passengers

Most Comfortable

Cabin

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Program Schedule

2015. 2Q First Flight

2017. 2Q First Delivery

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(as of June 26, 2014)

First Flight Test Aircraft

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

MRJ Order Status

Order Option /

Purchase Right

All Nippon Airways 15 10

Trans States Holdings 50 50

SkyWest, Inc. 100 100

Air Mandalay Limited 6 4

Total 171 164

335

Eastern Air Lines (MOU)

Japan Airlines (LOI)

20 Orders + 20

32 Orders

Purchase

Rights

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Maintenance Cost Estimation Method of an Aircraft Manufacturer

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Maintenance Cost – the Second Largest Element in COC

Cash Operating Cost (COC) Breakdown

* Typical regional jet, US regional operation, 500nm Trip, Fuel Price=$3.0/USG

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

“Designing” Maintenance Cost of New Aircraft

Existing

Aircraft

Maintenance

cost data

Target for new

aircraft

Maintenance Cost

of existing aircraft

• Maintenance cost benchmarking is essential to establish a target

• U.S. DoT Form 41 is one of the useful database for benchmarking

U.S. DoT

Form 41 Publications

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

U.S. DoT Form 41 Financial Data

• Published data collected by U.S. Department of

Transportation

• Includes maintenance cost data of all airlines in the U.S.

• Quarterly cost data by aircraft type by airline

• Huge database publicly available online from 1990 in a

consistent format

• No influence from currency exchange rate

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Normalization of DoT Form 41 Data

• Aircraft age

• Outsource/In-house ratio

• Labor rates

• Average flight time

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as to the information contained herein.

Aging Curve

0.00

0.50

1.00

1.50

2.00

2.50

0 5 10 15 20 25 30 35 40 45

Aircraft Age

Aging

Factor

Mature period

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as to the information contained herein.

0.0 1.0 2.0 3.0 4.0

Material Cost

($/FH)

0.0 1.0 2.0 3.0 4.0

Labor Cost

($/FH)

Average Flight Hour Adjustment

Average flight hour (FH/FC) Average flight hour (FH/FC)

1.5 (baseline) 1.5 (baseline)

Labor Cost Labor Cost Material Cost Material Cost

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Normalized Maintenance Cost from DoT Form 41

* 100% in-house maintenance, Labor Rate $50/MH, 1.5FH/FC, Mature

Limited available data

Aircraft

Maintenance

Cost

($/FH)

• DoT Form 41 data was processed and aggregated by aircraft family

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Model Adjustment – Family Aircraft

• Aircraft families (e.g. 737-700 and 737-800) have many common

systems which have almost the same maintenance cost

• Maintenance costs for each type are estimated by analyzing

specification differences between family aircraft

Same

• Avionics

• APU

• Wing

• Empennage

• Landing Gear

• Electrical &Mechanical

components, etc.

MRJ90

MRJ70

Different

• Fuselage length

• Cabin length

• Weight, etc.

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Maintenance Costs for Benchmarking

• MRJ target cost is established to be lower than competition

Aircraft

Maintenance

Cost

($/FH)

* 100% in-house maintenance, Labor Rate $50/MH, 1.5FH/FC, Mature

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Designing Maintenance Cost – Bottom-Up Approach

On-Airplane Off-Airplane

System

（ATA 21 - 49）

“Airframe”

Maintenance

Cost

(Line/A/C/D-

check)

“Component”

Maintenance

Cost

Structure

（ATA 51 - 57） (Mixed)

• Aircraft Maintenance Cost

= Airframe Maintenance Cost + Component Maintenance

Cost

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Airframe Maintenance Cost

On-Airplane Off-Airplane

System “Airframe”

Maintenance

Cost

(Line/A/C/D-

check)

“Component”

Maintenance

Cost

Structure (Mixed)

Maintenance Program

Analysis

• Analyzing maintenance program

• Collecting field data for estimation

• Task card MH / Actual

Labor MH

• Routine / Non-routine

• Labor cost / Material

cost

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Component Maintenance Cost

On-Airplane Off-Airplane

System “Airframe”

Maintenance

Cost

(Line/A/C/D-

check)

“Component”

Maintenance

Cost

Structure (Mixed)

Supplier cost data

• Avionics

• Landing Gear

• Brakes

• Wheels & Tires

• APU

• Other components

• Collecting & analyzing maintenance cost information from

system suppliers

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Engine Maintenance Cost

• Geared Turbo Fan (GTF) engine contributes lower

maintenance cost.

60% fewer

turbine airfoils

High bypass ratio:

Lower core

deterioration

Fan Drive Gear System:

No Life-limited parts (LLPs)

25,000-cycle LLPs

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

MRJ’s Low Maintenance Cost by Design

• State-of-the-art technology for cost reduction

- Composite material

- Full Fly-by-Wire

- LED/HID lighting

• Maintainability validation by digital & physical

mockups

• MSG-3 Analysis feedbacks

to MRJ design

• Engine maintenance cost

reduction by GTF engine

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Summary

• Maintenance cost is the second largest element

in cash operating cost

• U.S. DoT Form 41 is useful data to benchmark

the maintenance costs of the competition

• Aircraft Manufacturers design aircraft to achieve

lower maintenance cost by design

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Mitsubishi Regional Jet, a new concept from Japan for the skies of the world.

http://www.mrj-japan.com/

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This document does not constitute an offer of any kind and no assurances are given as to the information contained herein.

Legend

This document and all information contained herein is the sole property of Mitsubishi

Aircraft Corporation (“Mitsubishi Aircraft”), and shall not be (a) used for any purpose

other than that for which it is supplied or (b) reproduced or disclosed in any way to any

third party, in each case, in whole or in part, without Mitsubishi Aircraft’s prior written

consent. No rights or licenses under any intellectual property right in or to any

information contained herein are granted by the delivery of this document or the

disclosure of its contents. This document and all information contained herein is

provided for informational purposes only and is subject to change. In addition, the

information herein may include certain statements, estimates, targets and projections

that reflect significant assumptions and subjective judgments by Mitsubishi Aircraft

concerning anticipated results that may or may not prove to be correct and there can be

no assurance that any such statements, estimates, targets or projections are attainable or

will be realized. No statement herein (or the acceptance thereof) shall constitute any

contractual offer by, nor create any obligation on the part of, Mitsubishi Aircraft.

Mitsubishi Aircraft hereby expressly disclaims all representations or warranties,

express or implied, with respect to the information contained