Post on 04-May-2022
MTU Aero Engines AG
December 2021 – Investor Relations
Sustainability Presentation
OUR IDEAS AND CONCEPTS FOR A SUSTAINABLE FUTURE
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
AGENDA
December 2021 Sustanability Presentation 2021 2
1 Corporate Governance
Conducting Business Responsibility
2 Product Responsibility
Technology Roadmap towards Emission-free Flying
3 Environmental Protection in Manufacturing
and Maintenance
4 Procurement Practices
Responsible Resourcing
5 Responsibility towards Employees
6 Commitment to Society
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6CORPORATE RESPONSIBILITY STRATEGY
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Revenues
€ 1.5 billion**
EBIT adj margin**
20.7%
Revenues
€ 2.7 billion**
EBIT adj margin**
5.4%
MTU is built on excellence in these three pillars
3
Commercial OEM business
• Revenues: € 1.0 billion (26%)**
• Decades of partnerships with OEMs
increasingly include maintenance
• Balanced product portfolio in all thrust categories
• Order volume secures business beyond mid
of this decade
• Approx. 30% of active aircraft with MTU
participation
Military OEM business
• Revenues: € 0.5 billion (12%)**
• European and U.S. engine programs
• Full system capability
• R&D is typically customer financed
• Leading partner of the German Armed Forces
Commercial MRO business*
• Revenues: € 2.5 billion (62%)**
• Services: maintenance, leasing and asset mgmt.
• Exposure to highest growth engines
(PW1000G, V2500, CFM56, CF34, GE90)
• Global network with direct customer business,
partner of OEMs and airlines
• More than 1,400 customers, including over
200 airlines
*) MRO = Maintenance, Repair and Overhaul **) Basis: Fiscal year 2020
MTU group fiscal year 2021: Revenue € 4.2 billion EBIT € 468 million EBIT adj. margin 11.2%
Sustanability Presentation 2021 December 2021
CORPORATE
GOVERNANCEResponsible Business Conduct
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© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our claims – CR strategy goals for corporate governance until 2025
• Comprehensive sustainability management
• Ensuring the security of information and systems
• Protecting personal data in all areas of the company
• Compliance as part of the corporate culture
• Active commitment to combating corruption in
all business areas
• Ensuring adherence to embargo and export guidelines
• Regular and open dialogue with all stakeholder groups
5
Integrity and responsible business practices
are the cornerstones of our corporate culture.
December 2021 Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our sustainability strategy addresses the global challenges
and stakeholder requirements that MTU’s business faces
December 2021 Sustanability Presentation 2021 6
Product
Corporate
Governance
Manufacturing
& Maintenance
Procurement
Practices
Employees
Society
OUR CR FIELDS OF ACTION
In doing so, we stand for responsible and
environmentally friendly production,
maintenance and procurement and offer a
safe and attractive working environment.
As a technology leader, we play a decisive role in making aviation sustainable and achieving emissions-free flight through innovative propulsion solutions.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our CR management team drives sustainability forward within the company
December 2021 Sustanability Presentation 2021 7
CR Board consist of 7 members from the tier 1 senior management representing the following
division: Corporate Communication, Corporate Quality (Environmental protection & maintenance),
Human Resource, Procurement & Logistics, Finance/Accounting, Development & Technology,
and Legal Department
CR management at MTU Supervisory Board
• Involved in ESG topics via the Non-financial statement and ESG targets
for management compensation
Executive Board
• Overall responsibility for CR management
• Approves sustainability strategy and objectives
• The CEO is in charge of the general operative and strategic direction
• Other Board members are responsible for sustainability in their areas of respective
areas of responsibility
CR Board
• Implementing the sustainability strategy
• Regular reporting to the Executive Board
Central CR coordination is in charge of
• Responsible for group-wide CR activities and management, stakeholder dialog,
CR reporting
CR divisional coordinators
• Responsible for CR measures and strategy in their individual divisions
Overall CR
coordination
CR divisional
coordinators
CR Board
Executive Board
Supervisory Board(Key topics)
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
MTU is committed to the UN Sustainable Development Goals and contributes to 8 goals
8
17MTU is convinced
that the world-wide
challenges should
be addressed in
partnerships only
13Climate action through
sustainable engine
technologies and energy-
efficient production sites
9Advancing sustainable
aviation – MTU makes
major contributions to
industry, innovation and
infrastructure beyond
national boundaries
5MTU is committed to
diversity and equality of
opportunity (important
focus on promotion of
women)
4MTU is committed
to high-quality education
& training
8Decent working
conditions are a top
priority at MTU
12MTU is committed to
responsible and
ecofriendly production
16Good corporate
governance practice
(group-wide
Code of Conduct)
December 2021 Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Sustainability ratings and rankings – MTU well ranked in some important CR ratings
December 2021 Sustanability Presentation 2021 9
MSCI
ISS ESG CDP MSCI ESG Research
MTU Aero Engines is rated Prime
Status (C+) in the overall rating.
MTU is leader in the A&S sector.
(from A+ to D-)
In this global carbon accounting of the
annual climate footprint, MTU received
a score of B in 2020.
(from A to D-)
MTU Aero Engines is rated AA.
(from AAA to CCC)
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
A company-wide compliance system ensures ethical and correct conduct
December 2021 Sustanability Presentation 2021 10
Compliance Board consists of 3 members from the tier 1 senior management: Controlling, Human
Resources, Legal Department
The compliance Officer’s duties include conducting preventive measures, investigating incidents
of white-collar crime, and collaborating closely with the compliance Board in further developing
the compliance system. Compliance officer provides quarterly updates to the Executive Board
and the Supervisory Board’s Audit Committee.
• CEO is overall responsible for the company’s business ethics and anti-corruption policy
• Compliance Board and compliance officer are group-wide responsible for ensuring
ethical and correct conduct
• Compliance Board holds regular (4× a year) and ad-hoc meetings
• The Supervisory Board’s Audit Committee overseas the Executive Boards’ compliance
activities
• Managing directors of MTU sites must ensure that compliance is embedded in their
local organization
• Global whistleblower system (iTrust)
• A corporate audit unit examines the legal conformity of business processes and
compliance
• Mandatory group-wide anti-corruption training for managers and for employees
in specific functions
• Data protection and IT Security
• Code of Conduct for employees and suppliers
• Since 2009 member of the Trace International
MTU’s compliance organization
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Revised risk analysis implemented in 2021 to identify potential CR risks even earlier
December 2021 Sustanability Presentation 2021 11
General CR Risk management
• Internal CR risks are integrated into our opportunity and risk
management system acc. COSO II Enterprise Risk management
Framework
• CR Risks with an impact on third parties are assessed separately
according to CR-specific criteria, time horizons and likelihoods
• Compliance risks are separately assessed and reported by the
compliance Officer
• CR Board is responsible for the CR risk evaluation and reporting:
Potential CR risks are compiled and evaluated on a quarterly
basis
Significant CR risks are reported (via the risk board) to the
Executive Board
No material CR risks identified in 2020
Revised risk analysis implemented in 2021
• Risk assessment with focus on the present and the future
• Covers longer time periods than traditional risk management,
e.g., to better assess risks from climate change
• Identification of CR risks at an even earlier stage
• CR risks are assessed using the gross method, i.e. before
any risk mitigations are made.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Executive management Board
December 2021 Sustanability Presentation 2021 12
Reiner WinklerChief Executive Officer
• CEO since Jan. 2014; joined MTU in 2001;
• Appointed until 30 Sept. 2024
• Born in 1961; citizenship: German
Peter KameritschChief Financial Officer & Chief Information Officer
• CFO and CIO since Jan. 2018; joined MTU in 1999
• Appointed until 31 Dec. 2025
• Born in 1969; citizenship: German / Austrian
Michael SchreyöggChief Program Officer
• Executive member since July 2013; joined MTU in 1990
• Appointed until 30 Jun 2026
• Born in 1966; citizenship: German
Lars WagnerChief Operating Officer
• COO since Jan. 2018; joined MTU in July 2015
• Appointed until 31 Dec 2025
• Born in 1975; citizenship: German* STI = Short term incentive
Entire Executive Board is responsible for sustainability
• Approves sustainability strategy and objectives
Variable compensation (STI*) is linked to the achievement
of specific sustainability targets
• Supervisory Board defines explicit targets and corridors
• Non-financial ESG targets taken into account as part of the STI via
a multiplier from 0.8 to 1.2
• The specific targets for each fiscal year and the resulting target
achievement are published ex-post in the compensation report
In 2017 the Supervisory Board set a target quota of 25%
for female members of the Executive Board, to be achieved
by 2022.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Supervisory Board structure (as of 2021)
December 2021 Sustanability Presentation 2021 13
1
2
1
2
0 other company 1 other company 2 other companies 3 other companies
33%Female
66%Male
21
3
3
2
1
1-5 years 6-10 years > 10 years
12 Supervisory Board Members
6 Shareholder
Representatives
elected by the Annual General
Meeting
6 Employee
Representatives
elected by MTU Aero Engines
employees
Gender
Average Tenure today ~7.9 years
• Shareholder Representative average tenure 9.8 years
• Employee Representative average tenure 6 years
Employee
Representative
Shareholder
Representative
Mandates – Shareholder Representatives
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Supervisory Board tenures – Staggered terms of shareholder representatives
December 2021 Sustanability Presentation 2021 14
Year of
election
Year of
termination
AGM
election
Clear milestones for change of long-term Supervisory Board Members; Reduced terms for new members: 4 years
PRODUCT
RESPONSIBILITY Technology Roadmap towards
emission-free flying
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© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our claims – CR strategy goals for product responsibility until 2025
December 2021 Sustanability Presentation 2021 16
• Highest priority for product quality and flight safety
• Reducing the climate impact of products
• Minimizing the health effects of product use
(exhaust and noise emissions)
The company’s most significant contribution
towards sustainable development are eco-efficient
engine technologies
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
To reach the ambitious goals of the Paris climate agreement aviation must reach climate
neutrality by 2050
17December 2021 Sustanability Presentation 2021
• In the future, the focus will be on the entire climate
impact.
• MTU is committed to the goals of the Paris Agreement,
which aim to limit global warming to well below 2°C.
• MTU is currently revising its CLAIRE *) agenda with
faster development of new propulsion concepts and
implementation of emission-free concepts (CLAIRE
update available in 2021)
Reducing all climate impacting effects (CO2, NOX and
contrails) is a joint aviation effort:
CO2
Contrails
NOx
* CLAIRE – Clean Air Engine
• In the past, targets in the aviation sector mainly concentrated on
the impact of CO2 emissions.
• CLAIRE*) roadmap was focused on reducing CO2 and noise
emissions
• 1st generation of the GTF engines achieved significant reduction
in CO2 emissions and noise levels
MTU’s approach CLAIRE | Clean Air Engine
Vision 2020 and Flightpath 2050 targets
CO2 emissions
Noise emissions
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Geared turbofan engines are setting new economical standards
December 2021 Sustanability Presentation 2021 18
16%reduction in
fuel burn
MRO cost savings
25% fewer stages, 45% fewer blades,
lower operating temperature
75%reduction of noise
footprint
Fewer emissions
CO2/NOX
Source: P&W
First geared turbofan (GTF) engine generation GTF engine highlights*
* Source: https://pwgtf.com/family – GTF Fast Facts March/April 2022
1.100+ aircrafts in service
11 million+ Flight hours
2 billion+ Gallons of fuel saved
6 million+Metric tonnes of
CO2 avoided
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
CO2 NOxContrails
-100% -100% -100%
New concepts
Gen2 GTF WET Engine Flying fuel cell
CO2 NOxContrails
-10%
SAF -100%
CO2 NOxContrails
-20% -80%
SAF -100% -80%
Evolutionary Revolutionary
19December 2021 Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Strategy for sustainable aero engines
20December 2021 Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Sustainable aviation fuels are essential for timely reductions of aviation-related greenhouse
gas emissions on a significant scale
December 2021 Sustanability Presentation 2021 21
• SAF is the key technology to reach climate neutral aviation
• SAF can be used as drop-in in the current fleet: no need to
modify the engine or aircraft
• Current maximum volume blending limit of 50% 40% less
CO2 and 50 – 70% less soot and particulates, lower levels of
contrails
• Only minimal quantities used today
• Currently 2 to 5 times more expensive than fossil fuels
• SAF market needs to be scaled up on industrial levels
immediately
Sustainable Aviation Fuels (SAF)
• Green hydrogen means zero CO2
• 3 ways of usage:
Direct burn in a GTF engine
As basis for SAF
Hydrogen in combination with a fuel cell
• Limited modifications on GTF engine necessary
(H2 direct burn)
• Redesign of aircraft H2 needs 4 times more tank volume
and must be carried in liquid state (-253º Celsius)
• Corresponding hydrogen infrastructure required
Hydrogen (H2)
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Innovation and sustainable solutions will strengthen our competitiveness
and future success
December 2021 Sustanability Presentation 2021 22
Research and Development spending
in m€ and in % to sales
~100 research partners Universities, research institutions, companies, participation
in aviation research programs
• ~90% of R&D investment targeted at reducing emissions
• Long-term focus is on emission-free flight
• Currently ~150 technology projects in the research
pipeline
• ~400 patent applications every year
• Strong research network
200 201
214
186
2017 2018 2019 2020
5,1%
4,4%
4,6%
4,7%
Total R&D R&D ratio
ENVIRONMENTAL
PROTECTION IN
MANUFACTURING
AND MAINTENANCE
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© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our claims – CR strategy goals for manufacturing and maintenance until 2025
December 2021 Sustanability Presentation 2021 24
• Reducing CO2 emissions at all production sites
(scope 1 and 2)
• Continuously improving resource efficiency
• Efficient management processes have been established
• Advanced procedures in site and plant operations
• Raising employee awareness of climate protection in
production
With our new ecoRoadmap we support the Paris Climate
Agreement.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
All MTU sites aim to be highly efficient in the use of energy and resources,
limit emissions and avoid environmental risks
25
10.0 million Euros
investments for environmental
protection in 2020
0 fines
for environmental incidents
77.3%waste recycling rate in 2020
89.5%of MTU production activities certified
to an external standard in terms of
energy use
Target: 60% less CO2 (scope 1 & 2) by 2030
at our Munich site (ecoRoadmap)
~70%off all engine blades get a second
or third lease on life
December 2021 Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
• Committed to Paris Climate Agreement
• EcoRoadmap aims significant CO2
reduction *)
• CLAIR-IS successor program underway *)
• Participation in different climate protection
initiatives (e.g. UN Global Compact)
• Reporting scope 1 and 2
• Reporting on Scope 3 (supply chain and
airline customers) not available yet, partly
possible
• MRO follows “Repair instead of replace”
approach
• Aiming for high material efficiency in
production (e.g. additive manufacturing)
• Authorized and limited use of REACh**)-
listed materials projects for
replacement ongoing
• High recycling rates for waste
• Enshrined in the global Code of Conduct
• Responsibility at the Executive Board
• Environmental management system in
place
• Environmental Certifications for German
sites (e.g. ISO 14001, EMAS)***)
• Annual reviews by external auditors
• Employee training
• Environmental protection efforts extended
to suppliers
MTU places high priority on an environment-friendly production
December 2021 Sustanability Presentation 2021 26
*) CLAIR-IS ( = Clean Air Industrial Site) project only at Munich site
**) REACh = Registration, Evaluation, Authorisation and Restriction
of Chemicals; e.g. chromium trioxide***) only at German sites
Environmental management Conservation of Resources Emissions
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
New ecoRoadmap aims to make MTU Munichʼs operations to be balance sheet – climate
neutral by late 2021
December 2021 Sustanability Presentation 2021 27
* Baseline year 2019
Reduction of CO2 emission by 60% by 2030* in Munich
• 1st step is MTU Munich facility to be balance sheet – climate neutral by late
2021
• An annual CO2 reduction of 6% on average is aimed for the Munich site
• Baseline year is 2019 with 41,000 metric tons of CO2 emissions (scope 1 & 2)
How to achieve CO2 reduction at our Munich site
• Sustainable operational measures:
Reduction in consumption
Improve energy efficiency
Use of high-quality, emission-free energy (green electricity, bio-methane,
photovoltaic system, deep geothermal energy)
• Unavoidable emissions are offset with high-quality carbon offset certificates
Similar projects will follow at our other German and international sites in the near future
PROCUREMENT
PRACTICES Responsible Sourcing
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1
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© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our claims – CR strategy goals for procurement practices until 2025
December 2021 Sustanability Presentation 2021 29
• Human and employee rights are central components
of our business relationships
• In our cooperation with suppliers, we pay attention to a
resource- and environment-friendly value chain
• CSR is embedded in our contracts and sourcing
decisions. In this way, we ensure social and ecological
standards.
• Responsible handling of conflict minerals is ensured
A binding Code of Conduct for Suppliers is in place
since 2014.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
MTUʼs commitment to responsible sourcing includes environmental and social aspects as
well as transparency in the supply chain
December 2021 Sustanability Presentation 2021 30
CR efforts are concentrated on tier 1 suppliers
MTU suppliers 2020 by region
(production and non-production material)
Conflict minerals – transparency in the supply chain
• MTU strives for a sustainable and transparent value chain that
excludes the use of conflict minerals (tantalum, tin, tungsten and gold).
• The company does not procure minerals directly but they enter
production and pre-production via the global, multi-step supply chain.
• Following the Dood Frank Act, U.S. partners and U.S. customers
require MTU to disclose the origin of the minerals used in its
components (Conformant Smelters and Refiners List).
• MTU’s relevant suppliers are contractually obliged to provide
information about the source of minerals in accordance with EICC/
GeSi Conflict Minerals Reporting Template.
• In 2020, no infractions of the Dodd-Frank Act came to the
knowledge of MTU.
Global, extensive and complex supply chain
Code of Conduct for Suppliers since 2014
• Fixed element of the contracts with suppliers
• Based on UN Global Compact and the core labor standards
of the International Labour Organization (ILO)
• Binding for all direct suppliers and sub-suppliers
• Covers 95.9% of the purchase volume
• Focus on Human Rights
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Outlook 2025
• We intend to integrate the enhanced version of our
supplier risk analysis into our existing process for
analyzing supplier risk and, in the next step, we plan
to review key suppliers to check their compliance with
sustainability criteria. This development is currently in
the concept phase.
• CR assessments of suppliers are incorporated into
sourcing decisions.
We want to create sustainable products with the cooperation of our suppliers in long-term
relations based on trust
December 2021 Sustanability Presentation 2021 31
Risk management and assessment
• Suppliers are vetted before accepted to MTU’s supply chain
• ISO 14001 for environmental aspects required
• ISO 9001 for quality management aspects required
• Binding self-disclosure and Code of Conduct compliance
• Regular training for MTU’s purchasers on compliance and Code
of Conduct topics
• Annual risk analysis of all key suppliers
No violation of Code of Conduct in 2020 and previous years
RESPONSIBILITY
TOWARDS
EMPLOYEES
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4
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6
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our claims – CR strategy goals for employee responsibility until 2025
December 2021 Sustanability Presentation 2021 33
• Ensuring compliance with human rights at our own sites
• Providing active and targeted employee development at all
hierarchical levels
• Promoting ongoing diversity & equality of opportunity for the workforce
• Enabling a work-life balance for all employees
• Ensuring health and safety in the workplace
• Promoting mutual employer/employee dialogue
• Continuously increasing internal and external employer attractiveness
• Trust-based leadership
• Ensuring a high level of employee satisfaction
We create an innovative and respectful working environment in which
our employees can develop in the long term and deliver the best
results for MTU. Good collaboration and reliable leadership are
important pillars of our success.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
MTU’s employees are its most valuable resource Page 1 / 2
December 2021 34
• Regular employee surveys are an important
yardstick for successful teamwork and
leadership.
• In 2020, MTU conducted two surveys in the
form of “Pulse Checks” at its German
locations
• “Pulse Checks” to continue in 2021
• Group-wide MTU Leadership Values
(“We transform, We empower, We create
trust”) introduced in 2018 are a common
set of values and principles for managers
• Development Center as key instrument to
identify and support talented employees to
take over management positions
• Numerous group wide initiatives to develop
and support MTU managers
• Change Leadership as a key leadership skill
to give the company a stronger basis for the
future.
• Wide range of measures to support the
professional development of women
• Safeguarding company‘s know-how by
investing in training and development
of talented employees
• Training and development of employees
is enshrined in the Code of Conduct, MTU
Principles and HR strategy
• Ongoing development of training and
knowledge management to align it to future
requirements (e.g. focus on digitalization)
Employee Development & Knowledge management Leadership & Commitment Employee Survey
Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
MTU’s employees are its most valuable resource Page 2 / 2
December 2021 35
• A diverse workforce bolsters our innovative
capabilities and collaborative culture, which
in turn ensures our competitiveness
• Diversity officer has been officially appointed
• Zero-tolerance principle for human rights
violations
• MTU is committed to respecting the
individuality and dignity of every individual,
maintaining equality of opportunity in the
workplace and preventing discrimination
• Fair working conditions (e.g. legally binding
employment contracts, appropriate
remuneration, freedom of association,
collective agreement)
• Guidelines: Code of Conduct, MTU
Principles, General Act on Equal Treatment
• MTU places high value on occupational
safety and health management
• Occupational safety is decentralized at
MTU sites
• Part of MTU’s integrated management
system (IMS)
• Regular workplace risk assessments
• Mandatory regular safety training for all
employees and temporary workers across
the Group
• Additional health service offers (e.g.
company doctor, counseling, fitness center)
Occupational Safety & Health management
Human rights & Fair Working Conditions Diversity
Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
We do believe that a diverse workforce is a good basis for the company’s future success
As a globally active company,
we consider internationalization
to be a key indicator of diversity
Intercultural cooperation is
valued and promoted at all MTU
sites
• 55 different employee
nationalities are working
together in Germany
Cultural
We are committed to equality
of leadership and gender.
Proportion of women in 2020
(group wide):
• of total workforce
15.1% (14.7%2)
• in management positions
11.3% (11.5%2)
Goal by 2022:
• 13% women in manage-
ment positions (in Germany)
• 25% female members
of Executive Board
Currently 33% women
on the Supervisory Board
Gender & Equality
Cross-generational collabo-
ration makes it possible to
combine valuable experiences
and new impulses in a pro-
ductive way.
Age groups in 20201:
• < 30 year olds
16.4% (18.2%2)
• 30 – 50 year olds
53.7% (52.8%2)
• > 50 year olds
29.9% (29.0%2)
Young & Old side by side
At our locations in Germany, we
have elected representatives for
employees with severe
disabilities as well as dedicated
inclusion officers who act as
points of contact for issues
relating to disability.
Proportion of employees with
disabilities at MTU’s German
locations in 2020:
• of total workforce
5.1% (5.1%2)
Disability & Inclusion
Equality of opportunity
regardless of gender, ethnic
origin, age, religion, disability
or sexual orientation is the
foundation for a respectful
corporate culture, which we
strengthen and develop through
a variety of specific measures.
Sexual Orientation & Identity
1Based on active workforce 2Year 2019
36December 2021 Sustanability Presentation 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Getting the next generation passionate about science and technology
December 2021 Sustanability Presentation 2021 37
• Apprentices accounted for 3.1% (2.7% in 2019) of total workforce
in 2020
• Numerous educational projects and initiatives for young people
• Multilayered training concept: trainee programs, dual vocational
training, work placements for high school students, work experience
for students and opportunities for writing bachelor’s/master’s/doctoral
theses
• MTU “Studienstiftung” foundation to support highly talented young
women studying scientific and technical disciplines
• Collaboration/sponsorship schemes with different universities
• At our new site in Serbia, we establish a local training program
for aviation industry specialists
324 (3.1%) Apprentices in 2020
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
MTU received several attractive employer awards
December 2021 Sustanability Presentation 2021 38
TOP Employer British
Columbia (Canada)
Women’s Career
Index
TOP Employer in
Germany every year
since 2006
Rank “25” in 2020
Universum
Young Profes-
sional Ranking
Progress Index
Compatibility
“Success Factor
Family”
Rank “25” in 2021
Universum
Student Ranking
Employer Awards Employee Benefits at MTU
Occupational health management
(e.g. company doctor, company sport programs, fitness center)
Occupational pensions financed by MTU
Employee participation
(e.g. employee stock option program, profit-sharing)
Employee mobility (e.g. plant buses, commuter buses)
Balance work and family life (e.g. flexible working hours, childcare)
Compensation based on the collective agreement for the
metal sector
Insurance (e.g. retirement or private insurance coverage)
Flexible working hours
(e.g. ~50 different working hour models, sabbatical, mobile working)
TOP Employer in
Poland every year
since 2014
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Motivated and skilled employees are the key for our success
39
10,313 employees at MTU
143 million euros
investment in social benefits
(e.g. company pension scheme)
2.1 accidents
per 1,000 employees (MTU group)
3.0 million euros
invested in employee training
4.2% staff turnover
45%Mobile working
December 2021 Sustanability Presentation 2021
94.8% health rate
in Germany
1.6 training days
per employee
As of year-end 2020
COMMITMENT
TO SOCIETY
2
1
3
4
5
6
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our claims – CR strategy goals for commitment to society until 2025
December 2021 Sustanability Presentation 2021 41
• Research collaborations for joint knowledge building
• Corporate citizenship: MTU is part of society and a good
neighbor
• Employees use the knowledge they have acquired at MTU
to play a responsible role in society
In all that we do to contribute to social development, our
focus is on research and education. In addition, we support
social projects that have a local impact close to our
locations.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Our strong technology network is a key part of fulfilling our responsibility to society
and safeguards our capacity for innovation
December 2021 Sustanability Presentation 2021 42
Centers of competence Coop. with universities Research institutes
• Collaboration with universities and research institutes
• MTU is co-founder of Bauhaus Luftfahrt e.V. , an internationally
oriented think tank, which aims to develop innovative approaches
for future air transport systems.
• MTU Aero Engines is a founding member of the Aviation Initiative
for Renewable Energy in Germany (aireg).
• The German Aerospace Center (DLR) is building an Institute of Test
and Simulation for Gas Turbines in Augsburg. MTU contributed ideas
and was deeply involved in the conceptual design, and it will make
intensive use of the institute’s facilities.
• Collaboration with various Fraunhofer Institutes throughout Germany
is a further focal point of MTU’s cooperative ventures -particularly when
it comes to production and materials technologies
Germany as a research location:
6 Competence centers with own research focus
University of Stuttgart
Turbine testing and
thermodynamics
University & LZ Hannover
Turbine and maintenance
repair and overhaul
RWTH Aachen
Compressor and
manufacturing
TU Munich
Structural design
UniBW Munich
Military propulsion systems
DLR Cologne
Propulsion systems
aireg
Bauhaus
Luftfahrt e.V.
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
• ~60 projects, institutions or organizations have been
supported in 2020
• Support of various charity organizations with a social focus
• Corporate Communication department is in the
responsibility to approve sponsoring and donations acc.
to an internal guideline
Corporate citizenship – MTU supports local and regional associations, organizations and
institutions near company’s sites
December 2021 Sustanability Presentation 2021 43
Donations and sponsorship in 2020 (distribution in %)
In 2020, the Bavarian network
of emergency responders
“Helfernetz Bayern” named MTU as
a “rescuer-friendly company.”
Examples:
• Funding of the parent-run initiative day-care center
TurBienchen e.V., Munich
• External rescue operations carried out by MTU’s on-site fire
brigade and company doctor, Munich
• Participation in Munich Business Climate Pact
• MTU encourages corporate volunteering, e.g. flood in 2021
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Useful Links
Appendix
December 2021 Sustanability Presentation 2021 44
• Reporting standard GRI G4
• Non-financial statement (see Annual
Report 2021) with a limited
assurance by independent auditor
• A materiality matrix defines the most
important CR topics according to
their relevance for MTU and their
impact on third parties
• Implementation of TCFD
recommendation on its way
Sustainability
report
https://www.mtu.de/company/c
orporate-
responsibility/sustainability-
reports/
Non Financial
Statement in the
annual report 2021
(pages: 92 – 108)
https://www.mtu.de/investor-
relations/publications-
events/financial-
reports/financial-reports-
archive/
Sustainability
on the website
https://www.mtu.de/company/c
orporate-responsibility/
Executive Board
https://www.mtu.de/company/e
xecutive-board/
Supervisory Board
https://www.mtu.de/company/s
upervisory-board/
Corporate Governance
https://www.mtu.de/investor-
relations/corporate-
governance/
© MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of
1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or
pursuant to an available exemption therefrom. Any public offering of securities of MTU Aero Engines to be
made in the United States would have to be made by means of a prospectus that would be obtainable from
MTU Aero Engines and would contain detailed information about the issuer of the securities and its
management, as well as financial statements.
Neither this document nor the information contained herein constitutes an offer to sell or the solicitation of
an offer to buy any securities.
These materials do not constitute an offer of securities for sale in the United States; the securities may not
be offered or sold in the United States absent registration or an exemption from registration.
No money, securities or other consideration is being solicited, and, if sent in response to the information
contained herein, will not be accepted.
Proprietary NoticeThis document contains proprietary information of the MTU Aero Engines AG group companies. The
document and its contents shall not be copied or disclosed to any third party or used for any purpose other
than that for which it is provided, without the prior written agreement of MTU Aero Engines AG.
Cautionary Note Regarding Forward-Looking Statements
45
Certain of the statements contained herein may be statements of future expectations and other forward-
looking statements that are based on management’s current views and assumptions and involve known and
unknown risks and uncertainties that could cause actual results, performance or events to differ materially
from those expressed or implied in such statements. In addition to statements that are forward-looking by
reason of context, the words “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “forecast,”
“believe,” “estimate,” “predict,” “potential,” or “continue” and similar expressions identify forward-looking
statements.
Actual results, performance or events may differ materially from those in such statements due to, without
limitation, (i) competition from other companies in MTU’s industry and MTU’s ability to retain or increase its
market share, (ii) MTU’s reliance on certain customers for its sales, (iii) risks related to MTU’s participation
in consortia and risk and revenue sharing agreements for new aero engine programs, (iv) the impact of non-
compete provisions included in certain of MTU’s contracts, (v) the impact of a decline in German or other
European defense budgets or changes in funding priorities for military aircraft, (vi) risks associated with
government funding, (vii) the impact of significant disruptions in MTU’s supply from key vendors, (viii) the
continued success of MTU’s research and development initiatives, (ix) currency exchange rate fluctuations,
(x) changes in tax legislation, (xi) the impact of any product liability claims, (xii) MTU’s ability to comply with
regulations affecting its business and its ability to respond to changes in the regulatory environment, (xiii)
the cyclicality of the airline industry and the current financial difficulties of commercial airlines, (xiv) our
substantial leverage and (xv) general local and global economic conditions. Many of these factors may be
more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
The company assumes no obligation to update any forward-looking statement.
December 2021 Sustanability Presentation 2021