Order Situation

Significant increase in orders

In financial year 2005, MTU increased its order backlog from €3,408 million to €3,649 million as of December 31, 2005, which is equivalent to 1.7 times the 2005 revenues earned by MTU.

In the commercial engine business, the order backlog increased by 21.4 % to €1,844 million compared to €1,519 million the year before. This growth resulted primarily from the success of campaigns for the V2500 engine powering the Airbus A320 family and the new GP7000 engine to power the Airbus A380. The first order received from launch customer LAN Airlines of Chile for the PW6000 also had a positive effect.

In the military engine business, the order backlog decreased to €1,590 million in late 2005, from €1,717 million the year before. MTU managed to reduce the high 2005 order backlog especially through deliveries under the EJ200 program in support of the Eurofighter. This was counteracted by the receipt of an order from Austria for 18 Eurofighters with 38 engines worth €94 million; deliveries under this contract will begin in 2007.

The expansion of the Cooperative Model of industry-military engine maintenance with the German Air Forces in 2005 will strengthen MTU’s military engine business long-term. In the future, not only the EJ200 for the Eurofighter, but also the RB199 for the Tornado, the J79 for the Phantom and the RR250-C20 for the Bo-105 helicopter will all be repaired under MTU’s industrial leadership. The 10-year agreement is worth totally €370 million.

The order backlog in commercial engine maintenance increased by 25.0 %, to €215 million. Also, in the financial year, the order value of MRO services under existing longterm contracts increased by €943 million, to €2,896 million. This increase is to a major part attributable to a ten-year agreement inked with the US’ JetBlue. The expected order volume, at €6,545 million, was 22.1% above the previous year’s level. This order volume is equivalent to three times MTU’s 2005 annual revenues.

Date: 24 05 2006