Full Thrust Debut on the Stock Exchange

The IPO

MTU Aero Engines’ IPO was among the most successful of the year 2005. Trading of the MTU shares commenced on the Frankfurt Stock Exchange (Prime Standard) on June 6, 2005, at an issue price of €21. The issue price of the registered shares was at the upper end of the €19 to €22 range. At this issue price, the shares were oversubscribed more than sevenfold. After the  reenshoe
option had been fully exercised, 35.65 million shares were sold in total. All  hares are fully entitled to dividends for the business year that began on January 1, 2005.

Shareholding structure

The percentage of free float shares in 2005 was 64.8%. The primary shareholder at this time, private equity firm Kohlberg Kravis Roberts & Co. (KKR), reduced its share in MTU to 29.3% at the IPO. After the IPO, management owned 5.9% of the shares. Approximately 83 % of the free float  hares were placed with institutional investors. The remaining shares were held by private investors. Many employees and management personnel also bought MTU shares.

High interest in MTU shares on the part of international investors is reflected in the shareholding structure. A total of 77 % of the institutional investors come from outside Germany, in particular from Great Britain, the US, and France.



MTU shares in the MDAX

MTU Aero Engines Holding AG’s shares were included in the MDAX, the index for mid-size companies, on September 19, 2005. MTU’s shares thus count among the 50 most important mid-cap values on the German capital market. As regards the key criteria for inclusion in the index, on the qualifying date, August 31, 2005, MTU shares ranked 16th in trade volumes and 32nd in market capitalization.

Capital market environment

In 2005, the international stock markets continued the previous year’s upward trend. After the German and international indexes in 2004 achieved a positive year-end balance for the first time in three years, the MDAX gained about 35% in 2005 and finished trading at 7311.5 points. The trading year was driven by a positive business development worldwide. Later in the year, however, a few negative developments, such as the rising crude oil prices, interest and inflation fears and strongly fluctuating currency exchange rates prevented a stronger upward trend. In the last months of the year, the stock markets recovered again, bolstered by an overall more stable stock exchange climate.

Development of the MTU shares

MTU shares ended the year at €26.28, 25% higher than the issue price of June 6, 2005. Since the IPO, MTU shares thus outperformed the MDAX, which rose 22% in the same period. This favorable development of the share price was supported by a sustained rise in worldwide passenger traffic as well as increased deliveries of new engines.

Partial repayment of high yield bonds

Since the IPO, MTU Aero Engines has repaid a total of €110 million of its high yield bonds in two tranches. The company used its strong liquidity position to repay its debt, thus significantly reducing future interest payments. The repayment was made at the contractually defined rate of 108.25%, plus the accrued interest. The original value of the high yield bond, issued in March 2004, was €275 million. This leaves €165 million outstanding.

Investor Relations

MTU places great emphasis on providing transparent and prompt information for investors and analysts. Since its official listing, MTU has stayed in continuous dialog with institutional investors, private investors and financial analysts to make sure MTU’s shares receive fair valuation. In addition to the eight agency banks, by year’s end eight additional analysts had begun observing MTU and its shares, and will in the future publish their recommendations and comments. Management presented the operating results for the year under review as well as the strategic orientation of the Group in road shows, company visits and capital market conferences. On October 11, the first Analyst/Investor Day took place at MTU in Munich. The company also held numerous meetings during the Paris Air Show in Le Bourget, the industry’s most important trade show.

For more details, please visit our investor relations website at http://www.mtu.de or contact our investor relations office in Munich at +49-(0)89-1489-8313.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debut on the stock exchange floor: IPO of MTU Aero Engines Holding AG on June 6, 2005.

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