MTU Aero Engines : Corporate Governance Presentation

Corporate Governance @ MTU Aero Engines AG

MTU at a Glance

COMMERCIAL OEM BUSINESS

MILITARY OEM BUSINESS

COMMERCIAL MRO BUSINESS*

1. Revenues adj.: ~ € 1.7 billion (26 %)**

1. Decades of partnerships with OEMs increasingly include maintenance

1. Balanced product portfolio in all thrust categories

1. Order volume secures business beyond mid of this decade

1. Approx. 30% of active aircraft with MTU participation

1. Revenues: ~ € 0.5 billion (8 %) **

1. European and U.S. engine programs I Full system capability
   I R&D is typically customer financed
   I Leading partner of the German Armed Forces

1. Revenues: ~ € 4.2 billion (66 %) **

1. Services: maintenance, leasing and asset mgmt.

1. Exposure to highest growth engines (PW1000G, V2500, CFM56, CF34, GE90)

1. Global network with direct customer business, partner of OEMs and airlines

1. More than 1,400 customers, including over 200 airlines

FY 23 Actuals: Revenues		EBIT adj. margin **	FY 23 Actuals: Revenues
€ 2.2 billion **		22.1%	€ 4.2 billion **
MTU group FY 2023 **: Revenue adj. € 6.3 billion	I EBIT adj. ** € 818 million (12.9%) I FCF € 352 million

* MRO = Maintenance, Repair and Overhaul ** FY 2023 Actuals (Group revenues/ EBIT and Commercial OEM revenues/ EBIT mainly adjusted for PW1100G powder metal issue)

EBIT adj. margin ** 7.8%

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Agenda items of the AGM on May 8, 2024

Agenda Item

1. Presentation of the adopted annual financial statements, the approved consolidated financial statements, the combined management report for the Company and the Group, and the report of the Supervisory Board including the explanatory report of the Executive Board on the statements pursuant to Sections 289a and 315a of the German Commercial Code (HGB), each for fiscal year 2023
2. Resolution on appropriation of net profit (payment of a dividend of EUR 2.00 per dividend-entitlednon-par share)
3. Resolution on the discharge of members of the Executive Board for fiscal year 2023
4. Resolution on the discharge of members of the Supervisory Board for fiscal year 2023
5. Resolution on the appointment of the auditor for fiscal year 2024 (KPMG)
6. Resolution on the appointment of the auditor of the sustainability report for fiscal year 2024 (KPMG)
7. Election of a Supervisory Board member - Dr. Johannes Bussmann, CEO of TÜV SÜD AG, Munich
8. Resolution adopting the compensation system of the Executive Board
9. Resolution adopting the compensation report
10. Resolution concerning the authorization to purchase and use treasury shares pursuant to Section 71 (1) no. 8 of the German Stock Corporation Act (AktG) and to exclude subscription rights, revocation of the existing authorization

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Supervisory Board

Supervisory Board postAGM May 8, 2024

12 SUPERVISORY BOARD MEMBERS*

6 Shareholder Representatives

elected by the Annual General Meeting

6 Employee Representatives

elected by MTU Aero Engines employees

GENDER*

58%	42%
Female
Male

AVERAGE TENURE TIME ~3.6 YEARS*

4
4	2
	1	1
0-5 years	6-10 years	> 10 years

Shareholder Representative average tenure 3.8 years Employee Representative average tenure 3.3 years

AVERAGE AGE ~ 58 YEARS*

Only
Shareholder	33%	67%
Representatives	>= 60 years	<60 years
(post AGM 8 May 2024)

Mandates (listed and unlisted companies)*

		3
	2
1
0 or 1 other	2 other	3 or 4 other
companies	companies	companies
		*) post AGM 08 May 2024

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Shareholder Representative structure postAGM May 8, 2024

(MTU considers all its Shareholder Representatives as fully independent )

Gordon Riske (since 2022)

1. Chairman of the Supervisory Board I Independent Management Consultant
   I Former CEO of Kion Group AG, Frankfurt am Main

• Atlas CopCo AB , (Sweden) (listed)
• Sunlight Group Energy Storage Systems S.A., Greece (unlisted)

Prof. Dr. Marion A. Weissenberger-Eibl

(since 2013)

1. Director of the Fraunhofer Institute for Systems and Innovation Research ISI in Karlsruhe and holder of the Chair of Innovation and Technology Management at the Karlsruhe Institute of Technology

• Heidelberg Materials AG (listed)
• Semperit AG Holding, Vienna, Austria (listed)
• ExxonMobil Europe Holding GmbH (unlisted)

Ute Wolf (since 2023)

1. Independent Consultant

1. Former CFO of Evonik, Industries AG, Essen

• DWS Group GmbH& Co. KGaA (listed)
• Klöckner & Co. SE (listed)
• Infineon Technologies AG (listed)

Dr. Christine Bortenlänger (since 2018)

1. Chief Executive of Deutsches Aktieninstitut, Deutsches Aktieninstitut e.V., Frankfurt/Main

• Covestro AG (listed)
• • Covestro Deutschland AG (Covestro Group)
• Siemens Energy AG (listed)
• • Siemens Energy Management GmbH (Siemens- Energy-Group)
• TÜV Süd AG (unlisted)

Dr. Johannes Bussmann (proposed - AGM May

8, 2024)

1. CEO TÜV Süd AG, Munich
   • Diehl Stiftung & Co. KG

Dr. Joachim Rauhut (from 2009 until AGM May 8, 2024)

1. Independent Consultant
   • Stabilus S.A. (listed)

Dr. Rainer Martens (since 2021)

1. Independent Consultant

1. Former Member of the Executive Board (COO) MTU Aero Engines AG, Munich

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Committees of the Supervisory Board (postAGM May 8, 2024)

AUDIT COMMITTEE

Examination and preparation of the decisions of the Supervisory Board on the approval of the annual and consolidated financial statements, the management reports and the profit distribution proposal.

PERSONNEL COMMITTEE

Preparation of the personnel decisions of the Supervisory Board, in particular the appointment and dismissal of members of the Board of Management and their remuneration

MEDIATION COMMITTEE

Submission of proposals to the Supervisory Board in the event that the Supervisory Board cannot reach the two-thirds majority required for the appointment or dismissal of a Managing Board member.

NOMINATION COMMITTEE

Recommendation of shareholder representative candidates for election to the Supervisory Board

• Ute Wolf, Chairman
• Dr. Christine Bortenlänger

• Claudia Sowa-Frank
• Josef Mailer

• Gordon Riske, Chairman

• Daniele Frijia

• not yet determined

• Josef Mailer

• Gordon Riske, Chairman

• Daniele Frijia

• not yet determined

• Josef Mailer

• Gordon Riske, Chairman
• not yet determined

• Shareholder Representative (considered fully independent by MTU)  Employee Representative

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Candidate for Supervisory Board : Dr. Johannes Bussmann, CEO of TÜV Süd AG

Dr. Johannes Bussmann, CEO TÜV Süd AG

Gender:	male
Age:	54
Education:	Aerospace Engineer
Nationality:	German
Independence:	Yes

Other (non-executive) mandates:

1. Diehl Stiftung & Co. KG

Special knowledge and experience:

1. Many years of management experience I Expert in aviation industry
   I No conflicts of interests and regarded as independent

since 2023	CEO, TÜV Süd AG, Munich
2015 - 2022	CEO, Lufthansa Technik AG, Hamburg
2012 - 2015	Member of the Board of Management, HR and
	Production, Lufthansa Technik AG, Hamburg
2011 - 2012	Division Manager, Aero Engines, Lufthansa Technik AG,
	Hamburg
2007 - 2011	Division Manager, Component Services, Lufthansa
	Technik AG, Hamburg
2005 - 2006	Vice President Marketing & Sales Global, Lufthansa
	Technik AG, Hamburg
2001 - 2005	Director Sales Asia-Pacific, Lufthansa Technik AG,
	Singapore
1999 - 2001	Projekt Engineer Sales, Lufthansa Technik AG,
	Hamburg
1998 - 1999	Development Engineer Power Plant, ABB Deutschland
	AG, Changcha / New Delhi / Mannheim

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Supervisory Board tenures - staggered terms of Shareholder Representatives

Clear milestones for change of long-term Supervisory Board Members; Reduced terms for new members: 4 years

2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Gordon Riske (Chairman)

Dr. Joachim Rauhut

(mandate will not be renewed on AGM 2024)

Prof. Dr. Marion A.

Weissenberger-Eibl

Dr. Christine

Bortenlänger

Dr. Rainer Martens

Ute Wolf

(from May 11, 2023)

Dr. Johannes Bussmann

(proposed

AGM May 8, 2024)

Year of election

Year of termination

AGM election

AGM 2024

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Executive Board