Engine lifecycle management. Jan Steenbock, VP Marketing & Sales Far East Asia

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1 Engine lifecycle management Jan Steenbock, VP Marketing & Sales Far East Asia MRO Asia Singapore, November 5, 2015

2 Engine management over the life cycle New / in production fleets Mature fleets Sunset fleets # active engines Independent approach OEM network Non-served GEnx GP7000 Trent 900 SaM146 Trent 1000 MRO focus CFM56-7 V2500-A5 Trent 700 GE90G CF34-8 CF34-10 CF6-80E PW CFM56-5B PW6000 GE90B PW Trent 800 PW Trent CFM56 AE CFM56 CF6-80C -5C A V2500-D5 RB RB CF34-3 PW4 CFM JT8D-200 CF6-6/80A V2500-A1 CFM CF JT8D JT9D MRO alternatives 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 2

3 How to reduce operating cost for newer engines? MTU Plus New Engine Solutions MTU Plus Workscoping MTU Plus Repairs Event-based Fleet management Repair vs. replace Improvement Full customization for each visit Workscope-to-cost Balance cost vs. operational needs and performance Customization for engine fleet(s) MRO-optimized removals over contract period Build-up for costeffective on-wing time Parts salvation with focus on high-cost items Lower scrap rates In-house high-tech MTU Plus repairs Extended part life Improved HPC/HPT efficiency Lower SFC Longer on-wing time 3

4 How to reduce operating cost for mature engines? MTU Plus Mature Engine Solutions Alternative MRO / Smart Repair Alternatives to MRO / Instant Power Salvation Maintenance Exchange Lease Engine teardown Parts evaluation, repair & certification Parts management, storage, re-marketing* Asset/part purchase* *optional services Optimized engine repair w.r.t. cycles, cost, residual value Tailored workscoping Used material usage Module swap Exchange engine fulfilling operator needs (config., LLP cycles) Purchase at current market value On-wing exchange* Financing* Lease engine fulfilling operator needs (config., LLP cycles) Lease at daily/ monthly rate On-wing exchange* Sale & lease-back* 4

5 How to optimize asset value for mature engines? MTU Plus Asset Value Maximization MTU competence as lessor and MRO guarantees maximized asset value 5

6 End-of-life asset and material management Case study A. Shortened service life B. Lengthened service life Acquisition Phase-out Acquisition $ teardown $ additional lease Phase -out 20 yrs. Tier 4 Tier 5 25 yrs. $ additional lease $ teardown Tier 3 Tier 3 Tier 2 Tier 1 Tier 2 Tier 1 Smart management solutions can generate additional revenues 6

7 How to optimize asset value over the entire lifecycle? Lease Enhancement Program (LEP) Acquisition (new/used assets) MRO & operations Operator transition Phase-out Lessor Flexible phase-in/-out of engines Spare engine financing Minimized inventory (GSE, QEC, rotables ) Lessee MRO cost predictability Ease of portability Proactive management throughout the life Residual value Risk mitigation retention / maximization End-of-life value maximization Alignment of airframe/ engine life Carefree operations High-quality standards Guaranteed thrust EoL inspections Logistical services A one-stop solution for asset owners and operators 7

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