Engine lifecycle management

Jan Steenbock, VP Marketing & Sales Far East Asia

MRO Asia Singapore, November 5, 2015

MRO Asia 2015 - Engine lifecycle management 5 November 2015 2 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

CFM56-3

JT8D-200

AE 3007

PW4 -94

CF6-80E

PW4000 -112

PW6000 V2500-D5

V2500-A1

CFM56 -5A

RB211 -524

CF6-501

CF6-6/80A GP7000 Trent 900

GEnx

GE90B

SaM146 Trent 1000

CF34-3

CFM56-21

CFM56-7

V2500-A5

GE90G

# active engines Independent approach

OEM network Non-served Trent

800

JT9D JT8D

Trent 500

PW4000 -100

CFM56-5B CF34-8

Trent 700

CF34 -10

CF6-80C

CFM56 -5C

RB211 -535

PW 20001

Engine management over the life cycle

New / in production fleets Mature fleets Sunset fleets

MRO focus •No/limited surplus material •Focus on cost/hour and on-wing times •Classic MRO approach

Increased surplus availability●

Focus on cost/visit and customized builds● End-of-life asset and material management●

MRO alternatives

MRO Asia 2015 - Engine lifecycle management 5 November 2015 3 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

How to reduce operating cost for newer engines?

MTUPlus New Engine Solutions

MTUPlus Workscoping

Improvement

• Extended part life • Improved HPC/HPT efficiency

• Lower SFC • Longer on-wing time

Event-based

•Full customization for each visit

•Workscope-to-cost •Balance cost vs. operational needs and performance

Fleet management

• Customization for engine fleet(s)

• MRO-optimized removals over contract period

• Build-up for cost-effective on-wing time

Repair vs. replace

• Parts salvation with focus on high-cost items

• Lower scrap rates • In-house high-tech MTUPlus repairs

MTUPlus Repairs

MRO Asia 2015 - Engine lifecycle management 5 November 2015 4 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

MTUPlus Mature Engine Solutions

Alternative MRO / Smart Repair

Lease

•Lease engine ful-filling operator needs (config., LLP cycles)

•Lease at daily/ monthly rate

•On-wing exchange* •Sale & lease-back*

Salvation

•Engine teardown •Parts evaluation, repair & certification

•Parts management, storage, re-marketing*

•Asset/part purchase* *optional services

Maintenance

•Optimized engine repair w.r.t. cycles, cost, residual value

•Tailored workscoping •Used material usage •Module swap

Exchange

•Exchange engine ful-filling operator needs (config., LLP cycles)

•Purchase at current market value

•On-wing exchange* •Financing*

Alternatives to MRO / Instant Power

How to reduce operating cost for mature engines?

MRO Asia 2015 - Engine lifecycle management 5 November 2015 5 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

How to optimize asset value for mature engines? MTUPlus Asset Value Maximization

MTU competence as lessor and MRO guarantees maximized asset value

MRO Asia 2015 - Engine lifecycle management 5 November 2015 6 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

Smart management solutions can generate additional revenues

$ additional lease

Acquisition

Phase -out

Tier 1 Tier 2

Tier 3

20 yrs.

$ teardown

End-of-life asset and material management Case study

A. Shortened service life B. Lengthened service life

Acquisition Phase-out

Tier 1

$ additional lease

$ teardown

Tier 2

Tier 3

Tier 4

Tier 5

25 yrs.

MRO Asia 2015 - Engine lifecycle management 5 November 2015 7 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.

Acquisition (new/used assets)

MRO & operations

Operator transition Phase-out

How to optimize asset value over the entire lifecycle? Lease Enhancement Program (LEP)

•Carefree operations •High-quality standards •Guaranteed thrust

Lessee •EoL inspections •Logistical services

Lessor •Flexible phase-in/-out of engines

•Spare engine financing •Minimized inventory

(GSE, QEC, rotables…)

•Ease of portability throughout the life

•Risk mitigation

•End-of-life value maximization

•Alignment of airframe/ engine life

•MRO cost predictability •Proactive management •Residual value retention / maximization

A one-stop solution for asset owners and operators