Employees

A highly-skilled and well-qualified workforce

As of December 31, 2005, MTU had a workforce of 6,746, which is 671 fewer employees than the previous year. The lower level compared to the year before is attributable primarily to the sale of Atena Engineering GmbH, effective June 30, 2005, whose staff of 463 has still been on MTU’s payroll on December 31, 2004. MTU also continued its efficiency improvement programs throughout 2005. Personnel expenditures decreased to €503.9 million in 2005 compared to €510.0 million in the prior year. This relatively moderate decrease is a result of higher performance- based compensation in 2005, an increase in vacation and flextime credits, higher overtime pay and severance packages for employees who voluntarily opted out of their employment contracts during financial year 2005.

96% of the 6,746 employees at MTU have completed qualified vocational training. Roughly 27% are technical college or university graduates. MTU invested €2.9 million in continuing education and advanced training programs for its experienced team of highly-qualified employees in Germany alone. On average, every employee at the German locations spent 3.7 days on internal and external training.

The success of occupational safety training programs is underscored by the very small number of work-related accidents at all of the company’s German sites compared to the industry average. Here, the MTU Maintenance Hannover facility stands out with an annual rate of only two accidents per 1,000 employees. The high level of occupational safety is also reflected in the high health rate at all locations, which topped 95% again for the year ending December 31, 2005.

Team and leadership potential development is one of the topics high on MTU’s agenda. MTU has long championed a teamwork approach and been supporting the required processes in all departments. Detailed analyses have shown that a team approach leads to increased quality and efficiency, cost savings and stronger identification of the employees with the company. By the same token, MTU encourages teamwork across geographical boundaries. For example, MTU Maintenance Hannover employees provide training to their counterparts at MTU Maintenance Zhuhai in China to impart the knowhow needed to maintain state-of-the-art aircraft engines.

MTU revamped its leadership development program in 2005. The company now takes a holistic approach to human resources development across all hierarchy levels. To date, nearly 100 employees have enrolled in the “Building on Talent” program, the “First Leadership Program”, and the “Professional Leadership Program” to enhance their career opportunities.

MTU’s commitment to training and education is a mainstay of its ability to recruit and retain young professionals. As of December 31, 2005, the company trained a total of 295 apprentices to become industrial and engine technicians, mechatronic technicians, electroplating experts, or sales engineers. In partnership with the vocational academies in Berlin and Stuttgart, MTU furthermore offers training in business administration and industrial and mechanical engineering. Beginning in 2005, young professionals have the opportunity to earn advanced technical college entrance qualification alongside their trade certification in three-year dual training programs.

In order to attract and retain employees, MTU supplements its advanced training programs with a flexible salary system, comprehensive fringe benefits and a well-rounded healthcare plan. The company places significant emphasis on work/life issues to enable employees to balance career and family. For its committed efforts, MTU was awarded a certificate in September 2005 by Renate Schmidt, German Federal Minister for Family, Senior Citizens, Women and Youth, and Wolfgang Clement, German Federal Minister for Economic Affairs and Labor, in recognition of its family-friendly personnel policies.