FACC // CAPITAL MARKETS DAYGlobal Markets & Strategy

Robert Machtlinger - CEO

GLOBAL MARKET FORECAST

GLOBAL MARKET FORECASTAirbus and Boeing released their Global Market Forecast 2018

2017 Aerospace Industry results have been another “Record Year”

Market consensus re-confirms long term growth to continue

World annual traffic will double every 15 years

2018 – 2037 demand for 37.400 new commercial airplanes

Market trends continue to develop

– Growth shifts to Asia Pacific

– Efficiency, Cost & Performance remain top line requirements

– Single Aisle market dominating market rates and market value

GLOBAL MARKET FORECAST2017 vs. 2018 comparison of market development KPI’s

Source: Airbus GMF 2018

GLOBAL MARKET FORECASTAirplane demand increased from 34.900 to 37.400

Source: Airbus GMF 2018

GLOBAL MARKET FORECASTIs an Airplane demand of 37.400 real and how accurate are forecasts

GLOBAL MARKET FORECASTThe growth market shifts from “West to East”

The center of global GDP and RPM shifts south and east west

Asia Pacific region will grow the most

In 2017, 30% of emerging country population took a flight

In 2037, 85% of emerging country population will take a flight

US and Europe will grow too, but less intense

GLOBAL MARKET FORECASTIn the past 20 years, there was a shift in airplane size demand

The travel desire of people is changing

Point to Point travel is in favor of using hub systems

Between 1997 and 2017, the demand in Single Aisle airplane increases by 4%

This trend is expected to continue in the next 20 years

Further, single aisle seat capacity is growing

GLOBAL MARKET FORECASTProduction & delivery rates with solid growth

Commercial Aircraft: Dynamic increase until 2020 (mostly driven by several ramp ups) and a more moderate growth afterwards

Overall growth driven from growing GDP particularly in emerging markets.

Business Jets: Benefiting from increasing GDP until 2020 with stable rates afterwards

Regional Jets: Constant over time

GLOBAL MARKET SUMMARY Long Term Forecast confirmed by OEM’s

Air traffic will double every 15 years

Airplane model ramp ups support higher growth rates up to 2020

Approx. 40.000 airplanes forecasted between 2018 and 2037

Narrow-bodies drive rate and value

Geopolitical Dynamics to be considered

Global Footprint is enabler for growth

CUSTOMER TRENDS & EXPECTATIONS

FOUR OEM MEGA TRENDSThe Aerospace Industry will reshape …

Changing OEM landscape

Next Generation Airplane Requirements

New Supply Chain Model

Strategic Partnership Approach and Life Cycle Service

TREND 1: CHANGING OEM LANDSCAPEThe industry will further consolidate

AIRBUS / Bombardier vs. BOEING / Embraer

OEM Customer base further reduced

Cross Company alignment will increase pressure on supply chains

Market dominance from both will further grow

COMAC market entry with airplane family

3rd player in the industry

Airplane family concept under set-up (ARJ 21, C919, CR929)

TREND 2: NEXT GENERATION REQUIREMENTSCost, performance and efficiency are key KPI’s

Efficiency improvements and electrical systems

Laminar Flow, Bionic Surfaces, Electrical Engines

Rate capability and Automation

Design for automation and digitalization

Life cycle monitoring

Cost Reduction through new technologies

Material Thermoplastics, SMC, ….

Process Oven, Presses, 3D printing, …

Performance

Rate

Capability Maturity

Efficiency

Reduced

Cost

Increased size of scope of the work packages triggered consolidation within the Tier 1 industry

OEMs have experienced

negotiation power from consolidated Tier 1 suppliers

delivery issues which resulted in resourcing as well as insourcing of work packages

OEMs counter-reaction

Set-up alternative sources

Insourcing & Vertical intergration

TREND 3: NEW SUPPLY CHAIN MODELVertical integration, innovation and global sourcing

TREND 4: SERVICE & PARTNERSHIPGlobal Footprint, IP Sharing and Life Cycle Support

Strategic Partnerships

Joint R&T and Product Development

IP sharing and participation

Global sourcing to support growing market demands

Strategy alignment for program lifetime support

OEM CUSTOMER TRENDS AND EXPECTATIONS

OEM Customer Base will further consolidate

Supply Chain model is in a transition phase

Innovation, Globalization and Cost Competiveness are key

to increase market share

Provide technology for future airplane applications

Global production network to support OEM’s in growing markets

Partnership and OEM alignment on defined work packages

FACC VISION 2020 ANDBEYOND

FACC STRATEGY From 2020 into the next decade …

Vision 2020 Execution

Mission critical factors

Preparation for the next decade

OUR MISSION

WE DESIGN FUTURE MOBILTY

WITH TOMORROW’S MATERIALS

VISION 2020 EXECUTION… we are on track to fulfill our commitment

1 Billion Euro Sales in FY 2020/21

Preferred Tier 1 Partner to all OEMs

Technology-, Cost & Quality Leadership

Sustainability throughout increasing

Profitability

Increasing Shareholder Value from a

constantly growing market share and

innovation

Nr. 1 Largest aerospace company in Austria

FACC AT A GLANCE // SPOT LIGHT

3,500 Employees worldwide

100%Aerospace composite lightweight

2 Engineering centers in Austria

Tier 1 Partner for allaerospace OEMs

GlobalNetwork of engineering- & production locations in 13 countries

100%Export

20% YoY average growthEUR 750,7 Mio. Sales in 2017/18

AllRepresented of every modern aircraft

5 Plants

FACC - WELL POSITIONED IN THE INDUSTRYThe Best for The Best

FACC provides turn key solutions to all OEMs

Our value chain covers

R&T

Engineering & Certification

Global production

Worldwide MRO Coverage

UNIQUE IN PRODUCTS & TECHNOLOGY

CABIN INTERIORS

Every second, FACC technology & innovation takes off with 100% dispatch reliability

ENGINES & NACELLESAEROSTRUCTURES AFTERMARKETSERVICES

FACC STRATEGY -FACTORS

… that are supporting our execution of profitability and growth

1. Automation and Execution of cost reduction

initiatives

2. Organic- and non-organic growth to

increase market share beyond aerospace

growth

FACC STRATEGY / FACTORSAutomation and further execution of cost reduction initiatives

Internal efficiency targets are set for EBIT step changes

8% YoY increase of production efficiency

1,5% YoY constant material cost decrease

Inventory reduction measures to reduce Working Capital

Continued introduction of automation & digitalization

Achievement: 150 million USD sales output increase between 2016 and 2018 with same staff

Significant automation projects are in pipeline

Low cost sourcing to reduce labor cost ratio

Fixed cost control to benefit from growing volume effects

… for organic and non-organic growth

FACC STRATEGY FACTORS

Innovations that provide technology for next generation airplanes

R&T Projects with customers in the pipeline Increasing network with partners and universities

Organic Growth

Benefit from 1 billion new contracts boarded in 2017 and 2018 Increase in market share from getting new contracts

Non-organic Growth

Pursue M&A to increase FACC core business Look after bolt on technology or vertical integration

New market entry

Increase FACC MRO business to meet 100 Million target in 2022 Front runner in new mobility systems

… a more sizeable and global technology & service company providing mobility solutions

Further system integration capabilities

Aerostructures Primary Structure

Cabin System and market leadership in Business jet Interior

Nacelle Systems & Engine Composite Casings

Grow twice as fast as the overall market

Increase footprint in all important markets

Non-organic growth to increase market share and competence

FACC ROADMAP 2030

URBAN AIRMOBILITYFACC as a front-runner in advancedmobility solutions

URBAN AIR MOBILITY (UAM)Three key topics

A huge opportunity

UAM business models are poised to take off and disrupt mobility markets and value chains

A multidisciplinary challenge

Setting up UAM operations requires technology and infrastructure development involving a wide range of industries

Things are getting real

First movers have already launched projects

DEVELOPMENT PROGRAMS …the pace of program development is increasing

0

10

20

30

40

50

60

70

80

90

100

85

2008 2009

30

2014

24

2016 2017

44

5 7

20112010

14

2012

20

2013

18

20182015

35

100

Known developments by date of announcement (cumulative, 2009-May 2018)1)

General aviationLarge commercial Regional Urban air taxi

1) Excluding UAVs and purely recreational developments

+34% p.a.

Source: Roland Berger Study " Aircraft Electrical Propulsion – Onwards and Upwards", 2018

UAM IS EXPECTED TO BECOME A SIGNIFICANT MARKET… consisting of hardware, transportation of PAX and related services

45.00%

Regional split of intra city market [%]

30.0%

25.0%45.0%

Americas

Europe andrest of the world

Asia Pacific

URBAN AIR MOBILITYFACC’s and eHang Strategic Partnership

Joint Development

FACC engineering, certification and technology leadership in lightweight composite systems supports industrialization of product

Step by Step penetration of market

Cargo vehicle delivery for oil platform support and other mission considered first. Certification for further use to follow with market readiness in 3-5 years

Market penetration

Step by step increase of units built from 300 in 2021 up to > 1.000 p.a. before 2025

Innovation as a key factor for a strong partnership

VISION 2020

> Safeguarding the increase in shareholder value, higher profitability and long-term growth with a revenue target of EUR 1 billion by financial year 2020/21

> Technology, cost and quality leadership

> Creation of a global customer, development and production network

> Positioning as leading Tier 1 supplier

INNOVATION IS OURDESTINATION

…BEYOND HORIZON

FACC // CAPITAL MARKETS DAYOperational Excellence

Andreas Ockel – COO

Kurt Pieringer – VP Cabin Systems

> Introduction

> Composite Materials

> Global operations footprint

> Operational excellence

> Operational challenges

> Takted production

> Automation / Industry 4.0

CONTENT

3% 3%

15% 16%

22%

50%52%

1967 1981 1987 1992 2007 2011 2015

B737

A320

A380

A350B787

Increasing utilisation due to superior characteristics

USE OF COMPOSITE MATERIALS

Prepreg-covering layer

Adhesive (optional)

Honeycomb / foam

Adhesive (optional)

Prepreg-covering layer

Superior characteristics

COMPOSITE OVERVIEW

Composites are defined by:

Material of fibre / roving (glass fibre, aramid fibre, carbon fibre, ceramic fibre)

Weave (plain / twill / satin)

Fibre orientation

Matrix (epoxy / phenol)

Stack-up

Usage of cores

Process parameters

Fibre technology

Material

Glas fibre

Resin / matrix

Carbon fibre

Aramid fibre

Glass ceramics

Epoxy

Phenol

Geometry

UD Tape

Fabric

Honeycomb technology

Material

Nomex core

Geometry

Aluminium core

Glas-fibre core

Hexagonal

Over-expanded

Flexcore

PMI

MATERIALS

Numerous advantages

Lighter than comparable metals

Mechanical characteristics better than those of comparable light metals

Low / no thermal expansion

High fatigue strength at dynamic loads

Structure can be adapted to mechanical requirements (acting forces / direction of forces)

Complex geometrical shapes to be manufactured with less effort (compared to metal)

COMPOSITE OVERVIEW

… lead to tangible advantages

Fuel savings

Lower emissions

Noise reduction

Absence of scrap materials reduces manufacturing costs

Superior characteristics … Real-life examples

787 Dreamliner 20% lower fuel consumption than old

generation

30% lower emissions than 767

787 Dreamliner noise footprint 60% smaller than old generation

90% of raw aluminium used to create airplane parts is turned into scrap during manufacturing process

20%+ lower weight

Lower cost of airframe maintenance

A350XWB Service intervals from 6 to 12 years

Lower need for fatigue-related inspections / corrosion-related checks

No corrosion

Better vibration absorption

Design flexibility

Source: Airbus, Boeing

COMPOSITE OVERVIEW

On-site offices Production plantsand partnerships

GLOBAL OPERATIONS FOOTPRINT

MROEngineering centerHeadquarters

Providing relevant information ontime

Ensuring efficiency and applicationof standards

Steady increase of productionefficiency

Ensuring bottom-up communication within operations covering all operational aspects

Employee

Line Management

Middle Management

Management Board

OPERATIONAL EXCELLENCE

OPERATIONAL EXCELLENCEEnsuring efficiency and application of standards

5S methods

Implementing and improving standards

One-piece flow

Decreasing production lead times / inventory

Total productive maintenance

Actions to prevent breakdown of machinery

Kanban

Reduction of inventory by applying pull principles

OPERATIONAL EXCELLENCEProviding relevant information on time

Visual management

Providing information

Communication of standards and procedures

Visualisation of target-performance comparison

Key performance indicators (KPI)

KPIs to be used as basis for

evaluation

analyses

tracking of production processes

OPERATIONAL EXCELLENCESteady increase of production efficiency

Kaizen / continuous improvement

Steady working on perfection of production

Value stream mapping / design

Visualisation of value stream

Identification of improvement potentials

SMED

Reduce non-productive time of machinery and equipment

CAQ (Computer-Aided Quality assurance)

Reduction of costs for quality check

Automated reporting and analyses

Employees

Line Management

Middle Management

Management Board

OPERATIONAL EXCELLENCEEnsuring bottom-up communication within operations covering all operational aspects

SQCDP

S ... Safety

Q … Quality

C … Cost

D … Delivery

P … People

OPERATIONAL EXCELLENCEApplied on the Airbus A350 Winglet

Work without mistakes

Increased efficiency by using a semiautomated drilling unit

Work in Progress

Reduction of “Work in Progress” by 20%

Pay attention to the right amount

Less tools necessary by adjusting the assembly strategy

Stick to standards

Continuous CM improvements

OPERATIONAL CHALLENGESCurrent challenges and solutions

Increasing rates

High customer demand (net increase in order book)

Ramp-up of major programmes (Airbus & Boeing)

Involvement in new business programmes (Comac)

Actions

Facility expansion

Takted production lines (efficiency gains)

Automation / I4.0

TAKTED PRODUCTIONContinuous improvements (Airbus A321 outboard flap)

Assembly shop floor reduction by 55%

Enabled rate capability increase by 50%+

Production cycle time reduction from 21 to 9 days

Ergonomic assembly using trunnions, robotic drilling & CSK

TAKTED PRODUCTIONContinuous improvements (Boeing 787 blocker doors)

Shift reduction from 3 to 2 shift model, capacity savings by 33%

Shop floor reduction by 27%

Enabled rate capability increase from 530 to 600+ blocker doors / month

Four separate product configurations in one mixed model line

AUTOMATION / I4.0

Implemented automated processes

Automated tape laying

Advanced high-speed NDI

Robot drilling

Hot drape forming

Phonometry

Results

Lower amount of manual labour

Decreased production lead times

AUTOMATION / I4.0

Ongoing / future automation campaigns

Automated transport systems

Automated drilling, riveting, grinding and painting applications

Seamless link of data in entire value stream

Results

Lower amount of manual labour

Increased efficiency in labour-intensive work steps by semi-automation

Real-time monitoring of production steps

Paced decision making

AUTOMATION / I4.0

Industry 4.0 campaigns

Real-time visualization

Proof of concept MES

Way forward

I4.0 – main streams defined and team established to drive initiatives

Strong focus on E2E (end to end) process introduction

Road map for new technology introduction established and I4.0 goals defined

Further cycle time reduction

Utilization and flexibility

Fixed cost reduction

Partnerships established

BEYOND HORIZONS

FACC // CAPITAL MARKETS DAYAftermarket Services

Christian Mundigler

06.12.2018corporate presentation58

From the product idea to custom-tailored solutions

TIER-1 PARTNER WITH A WIDE RANGE OF SERVICES

A NEWBUSINESSSEGMENT

Genuine one-stop shop

Expertise as an OEM

Aircraft part-specific know-how

High-performance infrastructure in America, Asia and Europe

Fast and cost-efficient service

AFTERMARKET SERVICESREPAIR I REFURBISH I REPLACE

21 450

10 600

10 850

37 390

26 540

-

10 000

20 000

30 000

40 000

50 000

Beginning 2018 2037 New Deliveries

Number of aircraft (>100 seats)

Replacement

Growth

Stay

20-year newdeliveries

Source: Airbus GMF 2018-2037

GROWING AEROSPACE MARKET

OEMs confirmed long-term outlook until 2037

Demand for more than 37,400 aircraft (new and replacements)

Transition from metal to composite components

Lightweight components increase the efficiency of modern aircraft

New airline interior strategy

Change or upgrade of the aircraft interior 2 to 3 times per aircraft lifetime

MRO – A MARKET WITH HIGH POTENTIAL FACC Aftermarket Services

Significant fleet growth with a demand for 37,400 new aircraft until 2037

Steadily increasing share of composite material on modern aircraft

High demand for cost-efficient repair designs, cabin upgrades, refurbishments and conversions

MRO market to grow by 4.6% p.a. and to reach some USD 118 bn by 2027

Overhaul

Repair

Replace(Spares)

Refurbish(STC-Projects)

Maintenance

OEMs

AirlinesMRO

Stations

Distributors & Traders

FACC

SERVICES AT A GLANCERepair / Refurbish / Replace

Russia & GUS

Fleet Growth: 2.4%

MRO growth: 2.0%

Europe

Fleet Growth: 2.8%

MRO Growth: 3.0%

South America

Fleet Growth: 3.1%

MRO Growth: 4.7%

North America

Fleet Growth: 1.5%

MRO Growth: 1.8%

Africa

Fleet Growth: 1.2%

MRO Growth: 3.0%

Middle East

Fleet Growth: 4.7%

MRO Growth: 4.3%

Asia

Fleet Growth: 6.6%

MRO Growth: 4.0%

MRO China: 10,6%

MRO India: 5,6%Established MRO SitesPossible MRO Sites

WORLD MARKET OUTLOOK

Source: Oliver Wyman; 2018

Market Forecast predict an above average growth for global MRO business

SUPPORT FOR ALL DIVISIONSAerostructures, Cabin Interiors, Engines & Nacelles

A TRUE ONE-STOP SHOP

FACC is an original component manufacturer with 30 years of aerospace experience holding EASA, FAA and TCCA approvals.

Benefit from

Original componentmanufacturer

Exceptional turn times

Favourable pricing

Benefit from

Comprehensive engineeringknow-how

Innovative design solutions

Simply certified

FY 20/21FY 18/19 FY 19/20

FACC OEM productrepair AERO

FY 21/22 FY 22/23

> USD 10 mill.

TARGETUSD 100 mill.

Wichita EASA 145 Ried CAAC 145 Montreal 145 Shanghai 145 Abu Dhabi 145

FACC OEM productrepair AERO

Plus INTERIOR retrofit

Plus MOD support

FACC OEM productrepair AERO

Plus INTERIOR retrofit

Plus MOD support

Plus NACELLES

FACC OEM productrepair AERO

Plus INTERIOR retrofit

Plus MOD support

Plus NACELLES

PLUS non-FACC parts

PRODUCT & SERVICE ROAD MAPDynamic growth expected

BUILDING ON THE COMPETENCE OF AN OEM

Deep and skilled recources in composite manufacturing and repair

Access to tooling assures the original contours are maintained for flight-critical surfaces

Comprehensive knowhow in NDT services: thermography, ultrasonic, X-ray, etc.

SPECIFIC INTERIOR OFFERS

Design, manufacturing and finishing of business jet interior products

Assembly and integration of all cabin systems

Extensive cabin finishing and repair capabilities

CAPABILITIESDesign organisation approvals

RefurbishmentSurfaces (paint, leather, decor), mechanism, cushions

Retrofit & Cabin UpgradePassenger luggage space upgrade, business jet cabin layout changes

Repair DesignAerostructures, Interiors components, Engines & Nacelles

ModificationAerodynamic surfaces, structures, cabin interiors, luggage compartments, P2F conversions

Minor AFM Changes

Minor OSD ChangesFlight crew data and master minimum equipment list

REPAIR & MODIFICATION CAPABILITIESOptimised composite repair solutions

Scope & Capabilities

One-stop repair shop

Full MRO service

Full modification and repair solutions (incl. approved design)

Expertise

Winglet & sharklet commercial & business jets

B737 “blended winglet“ to “split scimitar winglet“ modifications

B737/ 757 winglet heavy repairs

Wing control surfaces

Flap track fairings

Engines & Nacelles components

Interiors

TESTING CAPABILITIESDesign organisation approvals

FACC Design Service provides an experienced team of engineers with specialized knowledge in:

Design engineering

Stress

Fatigue analysis

Flammability

Full-scale testing

Material qualification and certification

of lightweight composite aircraft components and associated systems.

APPROVALS AS AN ENTRY POINTMaintenance & Design Organisation

FACC part 145 maintenance approvals

FACC Operations GmbH, AT:

EASA AT.145.040

TCCA 813-40

FAA 6FOY865C

CAAC in processScope: C5, C6, C7, C8, C20 and D1 for non-destructive testing

FACC Solutions, Inc., US:

FAA FSOR210X

EASA.145.6792Scope / rating: Limited airframe (see capability list)

FACC Part 21J Design Organisationapproval

FACC Operations GmbH, AT:

EASA.21J.276

Privilege to design repairs and modifications

FACC AFTERMARKET SERVICESCustomer approvals

FSI Wichita, US• AeroMexico

• Alaska Airlines

• Aviation Partners Boeing

• Boeing

• Bombardier

• Delta Airlines

• Embraer

• OrenAir

• Quantas

• Ryan Air

• SAS Group

• Sun Express

• TUI Group

• Turkish Airlines

FACC Ried, AT• Airbus

• Aviation Partners Boeing

• Bombardier

• Embraer

• FlyDubai

• GOL

• JetAviation

• GOL

• Southwest Airlines

• Spirit

• SunCountry

• SunWing

• United Airlines

• WestJet

AUSTRIAN AIRLINES // LAUNCH CUSTOMEROfficial launch customer for new “Passenger Luggage Space Upgrade“

ADVANTAGESPassenger Luggage Space Upgrade

Fast and easy retrofit overnight

Allows 5 instead of 3 roller bags per 4 frame overhead luggage bin

More space for luggage means faster boarding time

Modern appearance of main cabin due to new doors and latches

Bin decor and colour, different latches and colours at your choice

Robust hinges with quick release system for easy removal of doors prior to ceiling removal

THE FUTURE REQUIRES

P E R F O R M A N C E WE GUARANTEE IT

06.12.2018

FACC // CAPITAL MARKETS DAYNEW TECHNOLOGIES AND MATERIALS IN AEROSPACE

Rene Adam

OUR RESEARCH MISSION

INNOVATION IS OUR DESTINATION

STRATEGIC TOPICS AT FACC

Technology targets

One step ahead in technology development

Get ready for next generation technology and efficiency requirements

New patents to secure future FACC USP

New processes available and mature for 2022+ applications

TechnologyPrepared for the next

generation of material and process requirements

EfficiencyAutomation, Process

Stability, Digitalization

GlobalizationEnhance FACC global

footprint with partnerships

Organic GrowthIncrease market share

with established technology

Non-organic growth

Increase revenues from M&A at strategic

markets

New market EntryEnter other business

and generate additional revenues

Performance

Rate

capability

Maturity

Efficiency

Reduced

cost

FOCUS ON CUSTOMER REQUIREMENTSNext-generation aircraft technology

Efficiency improvement & electrical systems

Bionic surfaces, electrical engines

Rate capability & automation

Design for automation, digitalization

Life cycle monitoring

Cost reduction from new technologies

Materials: Thermoplastics, SMC

Processes: Oven, presses, 3D printing

STRONGER TOGETHERResearch partnerships

NEXT-GENERATION AIRPLANE TECHNOLOGY FACC innovation projects

New materials & processes

Pilot factory for thermoplastic part production

Fast curing composite materials

Natural based material systems for interior part production

Part performance & aerodynamics

Bionic & morphing part geometries

Life cycle health monitoring

Automation & digitalization

Thermographic inspection methods replacing NDI

Self-learning robotic systems

Artificial intelligence engineering toolsImage credits: FACC

UPCOMING TRENDS

Urban mobility

E-mobility

Connectivity

Performance, safety, cost

USD 32 bn business in 2030+

Bolt-on mobility to state-of-the-art transportation

Image credits: Airbus, Ital Design, Audi

Image credits: EHang

#1GLOBAL

MARKET FORECAST

GLOBAL MARKET FORECAST – 2018 UPDATEAirplane demand increased from 34,900 to 37,400

Image credits: AIRBUS

#2100 AIRCRAFT / MONTH*SINGLE AISLE

Image credits: airliners.net* A320 was designed for 14 aircraft / month

FAST CURING

SUSTAINABILITY

LOW COST

Thermoset ThermoplasticMetal

VS.

OUT OF AUTOCLAVE

Image credits: BMW GroupImage credits: FACC

Additive Manufacturing

Image credits: Trumpf

LIT FACTORY WITH FACC PARTNERSHIPFacility for I 4.0 and thermoplastic composites with turn key capability

Image credits: JKU Linz

LIT FACTORY (START 2019)

Future facility for I 4.0 and thermoplastic composites

Image credits: JKU Linz

ENDOWED PROFESSORSHIPFuture facility for I 4.0 and Digitalization TU Vienna

Image credits: TU Wien / Schlund, Rupprecht, Mayrhofer

DIGITAL TWINConsistent process chain from first scratch up to final assembly

Conceptual Design CAD Design Ply definition and manufacturing engineering Part layup based on virtual

data basis

ENVIRONMENTAL VS. MANUFACTURING DATAFind correlations between environmental data and part manufacturing conditions

Temperature, Humidity, climate conditions …

…. Impacting part quality

Find correlations

using Big / Smart Data

#3PRODUCT DEVELOPMENT

Quelle: https://www.wjw.de/produktion/laserschmelzen.html

VS.

INTEGRATION

CURRENT DESIGN FOR MILLING DESIGN FOR ADDITIVE MANUFACTURING

Image credits: FACC

WEIGHT REDUCTION

MORPHING SURFACES / WATEWinglet with active trailing edge

State-of-the-art winglet

Improves aircrafts’ aerodynamic efficiency (reduce induced drag)

Winglet with active trailing edge (WATE)

Reduces induced drag (as state-of-the-art winglet)

Simultaneously reduces loads of outer wing structure at critical flight points

Load reduction leads to lightweight composite parts

Allows optimum aerodynamic flight shape under different flight conditions

BIONICDESIGN

GREENMATERIALS

STRUCTURAL STRENGTH MONITORING

Baseline: Human nervous system

The brain detects intensity and location of pain and estimates the necessity of a medical investigation

Monitoring of structure condition

The system monitors the structure and detects structural damages

Structural strength control

The system rates the remaining capacity and suggests maintenance procedures

Image credits: Airbus

#4THE CHALLENGE

Image credits: David Paul Morris/Getty Images

THETHIRD DIMENSIONURBAN AIR MOBILITY

Image credits: Airbus, Ital Design, Audi

URBAN AIR MOBILITY

Positive and enthusiastic customer feedback generates strong emotional pull for UAM

Possible use cases

Airport-city transportation, urban taxi or commute traffic

Challenges

Innovation is faster than regulatory / government

High level of safety needed / public acceptance

Noise generation and technology (e.g. energy density of battery)

Transportation cost

Image credits: Airbus, Ital Design, Audi

Material and process development (e.g. PUR resin systems, fast curing resin systems, CF-SMC, green materials)

Additive manufacturing (metal and plastics, topology optimization, DFM …)

Integral-monolithic composite structures (e.g. empennage, wingbox cover …)

Automation and digitalization (e.g. cyber physical systems, IoT, I4.0 …)

Technology and knowledge management

SUMMARYTechnology roadmap

UPCOMING CHALLENGES

PEOPLE-CENTERED PRODUCT DESIGN

“WE DESIGN THE FUTURE OF MOBILITY WITH THE MATERIALS

OF TOMORROW.“

FACC // CAPITAL MARKETS DAYFinancials & Financing

Ales Starek – CFO

Florian Heindl - Treasury

06.12.2018

HIGH FOCUS ON FINANCIAL EXCELLENCE

Constant growth in revenues since 2014 with a CAGR of almost 10%

Substantial deleveraging of the balance sheet to a range of 2 to 2.5

Significant improvement in Free Cash Flow to EUR 28 mill.

Sustainable improvement in operating result.

SIGNIFICANT IMPROVEMENT OF KEY FINANCIAL INDICATORS

-4,5

-58,8

25,0

15,252-55

48,6

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 E

CONTINUOUS STRONG PERFORMANCE

in EUR mln

528,9580,2

705,7750,7 760-770

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 E

Significant growth of 10% and operational turnaround since IPO

1)

1) Due to a correction according to IAS 8, previous year’s figures have been restated retrospectively (see Note 3 of the Annual Report 2017/18)2) The one-time effects in the amount of EUR 15.2 million were largely due to the conclusion of customer negotiations. As a consequence of the amendments to IAS 8, the relevant receivables were

value-adjusted or provisions were established in previous periods.

1)

2)

25,0

8,4

51,2

38,1

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18

273,3 269,2

331,0 334,4

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18

AEROSTRUCTURES

WINGCOMPONENTS

FAIRINGS

CONTROL SURFACESREVENUES

in mln. EUR

EBIT

1) Due to a correction according to IAS 8, previous year’s figures have been restated retrospectively (see Note 3 of the Annual Report 2017/18)

1)

1)

-22,6-29,1

-13,8

16,9

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18

93,8113,8

142,0161,9

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18

ENGINES & NACELLES

ENGINE COMPONENTS

NACELLE COMPONENTS

1) Due to an error correction according to IAS 8, previous year’s figures have been restated retrospectively (see Note 3 of the Annual Report 2017/18)

REVENUES

in mln. EUR

EBIT

1)

1)

-7,0-38,1

-12,4

8,8

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18

161,7197,2

232,8254,3

FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18

CABIN INTERIORS

FLOOR-TO-FLOOR

CABIN PANEL

1) Due to a correction according to IAS 8, previous year’s figures have been restated retrospectively (see Note 3 of the Annual Report 2017/18)

REVENUES

in mln. EUR

EBIT

1)

1)

STRONG IMPROVEMENT IN FCF IN 2017/18Strong improvement of Free Cash Flow due to EBITDA and Working Capital improvement as well as investment controlin EUR mln

55,8

-14,3

-35,7

-34,4

EBITDA FY2016/17

Changes inWC

Investments FCF FY2016/17

96,7

28,0

-33,6

-35,1

EBITDA FY2017/18

Changes inWC

Investments FCF 2017/18

7,8

-41,6

1,5

-50,9

EBITDA FY2015/16

Changes inWC

Investments FCF FY2015/16

18,4

-70,5

-11,0

-77,8

EBITDA FY2014/15

Changes inWC

Investments FCF FY2014/15

2014/15 2015/16 2016/17 2017/18

314,9267,1 269,7

323,1

FY 14/15 FY 15/16 FY 16/17 FY 17/18

102,6

171,8

197,0181,9

FY 14/15 FY 15/16 FY 16/17 FY 17/18

BALANCE SHEET FIGURES

40 % 39 %

46 %

EQUITY NET DEBTin EUR mln in EUR mln

NET DEBT / EBITDA

negative

5,6

3,5

1,9

FY 14/15 FY 15/16 FY 16/17 FY 17/18

44 %

372,9

-1,1

-2,85

376,8

Revenue pre IFRS15

Payments tocustomers

Change in conceptof revenuerecognition

Revenue post IFRS15

REVENUE H1 2018/19

IFRS 15 – REVENUE RECOGNITION

in mln EUR

-3.9

FACC has analyzed its contract types in order to comply with the new IFRS 15 accounting standard as of March 1, 2018.

Under IFRS 15, revenue is recognized either at a point in time or over time as soon as the control over the goods or services has passed to the customer.

Provided that a significant financing component is determined in the case of long-term amortization via series deliveries, sales revenues are only recognized in the amount of the present value of the agreed payments.

As compounding effects are recognized as income in the financial result, the payments received are not fully allocated to sales revenues, as was previously the case.

IFRS 15 - RECONCILIATION

Feb. 28, 2018 Adaptation IFRS 15 March 1, 2018

ASSETS

Intangible assets 147 660 -127 335 20 325

Property, plant and equipment 173 704 -48 457 125 246

Contract receivables 0 100 021 100 021

Contract costs 0 38 251 38 251

Deferred taxes 0 13 016 13 016

Non-current assets 351 185 -24 504 326 681

Inventories 130 562 40 395 170 957

Trade receiveables 86 061 0 85 816

Receivables from construction contracts 17 212 -17 212 0

Current assets 352 373 23 184 375 311

BALANCE SHEET TOTAL 703 558 -1 320 701 992

EQUITY AND LIABILITIES

Retained earnings 55 644 -42 786 12 612

Equity 323 094 -42 786 280 062

Deferred taxes 1 246 -1 246 0

Non-current liabilities 211 101 209 855

Advance payments received from customer related Engineering 7 907 42 711 50 619

Current liabilities 169 363 212 074

BALANCE SHEET TOTAL 703 558 -42 786 701 992

The adjustment effects on Group equity to the Consolidated Financial Statement of 28 February 2018 were modified as a result of further analyses.

IFRS 15 - DEFINITIONSContract assets

Development services and customized tools, which represent contractual obligations on the part of the Group and

have already been partially recognized as revenue, are reported as contract assets. If development services or tool

developments are not paid immediately or in full but are charged to the customer as price premiums on series

components, actual sales revenues may depend on whether the planned quantity of series products has been

achieved. This constitutes a variable remuneration which is recognized as a contract asset on the basis of a prudent

estimate and is reassessed on a regular basis. Payments to customers are treated as advance discounts and are

reported under contract assets. They are recognized as a reduction in revenue according to the expected duration of

the program. When assessing the impairment of contract assets, the regulations on financial assets must be

observed.

Contract costs

In the absence of an enforceable contractual claim to remuneration for the provision of development services and the

development of tools pursuant to IFRS 15, the associated expenses shall be capitalized as contract costs. The

services rendered together with the subsequent series production constitute a single unit. In this case, the cost of

development and the price of tools are added to the price of the series components and recognized as sales revenue

once the serial parts have been delivered. The contract costs are spread over the duration of the program and

recognized as expenses.

INVESTMENTS

Investments in automation, capacity and logistics

I4.0 and automated processses as key elements ofFACC´s investment plan

Customers demand for higher automation and rate increases

Investments led to significant increase in capacity at the Engines/Nacelles (Plant 4) and Cabin Interiors segment (Plant 2)

INVESTMENTS Preparing to fulfill future customer demands

Phase One – Execution since 2017:

FACC - SUSTAINABLE GROWTHMulti year investment program

EUR 35 mlnTotal volume

6.400 square meters

Capacity extensions at Plant 1 (Aerostructures) and Plant 4 (Engine & Nacelles)

Doubling the floor space in Wichita (USA) foraftermarket services

Investments into new programs for furthergrowth

Extension of plant 3 (Aerostructures): buildingand equipment

Further automation and I4.0 initatives

Investments into new programs

EUR 45 mlnTotal volume

Phase Two: Execution since 2018

2019Completion

FACC - SUSTAINABLE GROWTH

FUNDING STRATEGY

FUNDING STRATEGY

Reduce the number of financing instruments and bilateral contracts and hencereduce complexity and contractual compliance risk

Implement USD funding component to reduce translation risk in financialstatements

Stable Financial Backbone: Syndicated loan provides flexibility for furtherorganic and non-organic growth, a safety net and reduces complexity

Flatten FACC long term maturity profile (EUR 34 mln promissory note (2019) andEUR 90 mln bond (2020))

Improve investor perception by improvement of credit rating to raise equity anddebt capital market potentials

Medium term target leverage ratio: 2,0 - 2,5 (Net financial debt / EBITDA)

FINANCIAL DEBT

NET INTEREST INCOME GROSS FINANCIAL DEBT

in mln. EUR

-13,1

-10,5-11,3

FY 14/15 FY 15/16 FY 16/17 FY 17/18

4,3%

4,6%

in mln. EUR

-228,1 -245,3 -245,4-213,5

FY 14/15 FY 15/16 FY 16/17 FY 17/18

5,8%

4,5%

-9,7

Syndicated loan signed by seven European banks

Four different credit facilities with a long termcommitment: 5 years plus 2 year extension options

FINANCIAL DEBTSyndicated Loan (Total EUR 225,0 Mln.)

Volume Agreed Purpose

100 mill. Revolving credit facility (EUR or USD)

50 mill. M&A term loan (EUR or USD)

50 mill. OEKB framework loan „KRR“ for export receivables (EUR)

25 mill. OEKB loan „Exportinvest“ for export related investments (EUR)

FINANCIAL DEBTBenefits of the new syndicated loan structure

Sustainable, long-term and confirmed funding contract

Stable basis for supporting FACC‘s organic and strategic growthopportunities

Improvement of external credit rating, maturity profile and equityinvestor perception

Improvement in documentary, collateral and covenant transparency

Stable basis for funding activities in 2019/2020 (bond + promissorynote refinancing)

Sustainable long-term involvement of strategic core banks

0

25 000 000

50 000 000

75 000 000

100 000 000

125 000 000

150 000 000

FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26

FINANCIAL DEBTMaturity profile as of October 31, 2018 (annual redemptions in EUR)

EUR 175 mill. unusedliquidity from newsyndicated loan as safety netfor upcoming maturities

FINANCIAL DEBTPossible instruments in the future

Capital increase

Special loans(European Investment

Bank)

Private Placement

PromissoryNotes

(Schuldschein)

ConvertibleBond

(Bond)

FACC strives for capital market (oriented) products

Adjustable to Syn Loan wording

Strong position because of sufficient SynLoan liquidity

Mix of instruments depending on futurebusiness strategy and opportunities

Straight bond is least attractive option at the moment (size, complex documentaryand regulatory environment)

FX HEDGING STRATEGY

FX HEDGING STRATEGYPolicy

Extensive use of natural hedging

Speculative positions are strictly forbidden

12 month rolling hedge period

80% target hedge ratio over hedge period

Up to 36 months maturities are permitted

Only simple FX products are permitted

3,7

-13,4-9,7

Changes to P&L Changes to othercomprehensive

income/loss

Changes to equity

5 % Devaluation of EURO

FX HEDGING STRATEGYSensitivity Analysis based on an average of 1.1567 for fiscal year 2017/18

Sensitivity Analysis regarding a 5 percentage points fluctuation of the US Dollar and itsimpact on

Profit & Loss statement

Other comprehensive income/loss

Equity

-3,4

8,7

5,3

Changes to P&L Changes to othercomprehensive

income/loss

Changes to equity

5 % Appreciation of EURO

This document contains forward-looking statements. Words such as ‘outlook’, 'believe', 'intend', 'anticipate', 'plan', 'expect', ‘objective’, ‘goal’, ‘estimate’, ‘may’, ‘will’ and similar expressions often identify these forward-looking statements.

Forward-looking statements are subject to future events, risks and uncertainties - currently known or unknown. Actual results, performance or events may therefore differ materially from those expressed or implied in these forward-looking statements.

Neither FACC nor any other person assumes responsibility for the accuracy or completeness of any forward-looking statements. FACC will not update these forward-looking statements in order to reflect changes to facts, assumptions or expectations.

This document or statements related to it do not constitute an offer, recommendation or invitation to purchase or sell securities of FACC.

DISCLAIMER

INNOVATION IS OUR DESTINATION