1. CEO Communications Agenda Setting Conference, Zurich, Dec 4, 2008 Eckhard Zanger, MTU Aero Engines, SVP Communications and IR

2. 8. Oktober 20072 The product: turbofan engine HPC high-pressure compressor HPT high-pressure turbine LPT low-pressure turbine combustor Fan LPC low- pressure compressor

3. 8. Oktober 20073 The commercial product application range PW4000 GrowthGP7000CF6PW2000V2500 JT8DPW500PW300PW6000 Airbus A319, A320, A321, Boeing MD-90 Boeing 757, Boeing C-17, (milit.: F117)‏ Airbus A380Airbus A300, A310, A330, Boeing 747, 767, MD-11 Boeing 777 Boeing MD-80-Series Cessna Bravo, Cessna Excel Learjet 60, Do328JET, Gulfstream G200, Hawker 1000, Dassault Falcon 7X, Cessna Sovereign Airbus A318

4. 8. Oktober 20074 The military product application range GP7000 F/A-18 Hornet Sikorsky CH53-G PAH-1 Eurocopter Tiger Transall Breguet Atlantic TP400-D6 TyneT64MTR390250-C20 Alpha JetPanavia TornadoF4-Phantom II Eurofighter Typhoon EJ200RB199J79Larzac04 F414 / F404 Airbus A400M

5. 8. Oktober 20075 Cooperation structures in the aero engines industry

6. 8. Oktober 20076 MTU Aero Engines German Mid-Cap Company Revenues: 2.6 bn € Employees: 7,500 CEO: Egon Behle Prior positions at ZF Lenksysteme GmbH, ZF Friedrichshafen AG, Fortuna Spezialmaschinen GmbH, Renk AG, Dornier GmbH and Robert Bosch GmbH Studies in Aerospace Engineering at Stuttgart University

7. 8. Oktober 20077 CEOs occupy a bigger slice of reporting The growing personalisation of business coverage – as shown in the example of German DAX 30 blue chip companies – is part of bigger general trend. One cause is the increasing competition between media outlets. 100%= all reports about DAX 30 companies and board members

8. 8. Oktober 20078 Management turnover accelerates Reporting about management changes has increased notably over the last years, while references to the capabilities of top managers declined. Rumours about impending resignations are becoming more often self-fulfilling prophecies. 100%= all reports about DAX 30 CEOs, missing to 100%: corporate issues

9. 8. Oktober 20079 Integrity of CEOs gets questioned more positive more negative While positive reports about top executives have been the rule in the first years of the decade, the scandals of the new economy period have affected the media image of the personal integrity of top managers – with a marked effect on the public trust. Share of positive – share of negative reports

10. 8. Oktober 200710 Communication generates opportunities more positive more negative The coverage of DC demonstrates how a CEO loses his operative freedom when he comes under continuous attack from the media. Successful communications, on the other hand, can improve the outlook, even when the problems have not yet been tackled. Share of positive – share of negative reports on Jürgen Schrempp (till 31.12.2005) /Dieter Zetsche (since 1.1.2006) versus DaimlerChrysler Image Malus Image Bonus

11. 8. Oktober 200711 Overwhelmed by the events more positive The example of Siemens shows the key role of communications for the protection of the image of the CEO. Already in January 2006, Klaus Kleinfeld was rated worse than the company, before being engulfed by the corruption scandal in September. Share of positive – share of negative reports on Heinrich von Pierer (till 31.12.2004) /Klaus Kleinfeld (since 1.1.2005) versus Siemens more negative

12. 8. Oktober 200712 Management remained an image drawback more positive more negative The communication of Deutsche Börse did not manage to transfer the operative success of the business into a favourable reputation for the CEO. This holds true for Werner Seifert as well as for his successor Reto Francioni. Share of positive – share of negative reports on Werner Seifert (until 10.05.2005) /Reto Francioni (since 1.11.2005) versus Deutsche Börse

13. 8. Oktober 200713 After wages, competency was critizised Basis: stories in 23 weekly media, TV-news and dailies Competency Personality Salaries

14. 8. Oktober 200714 Change of the company‘s public identity The change of the CEO for MTU was a distinctive conjunction of the public image of managers in 2008. While Stark having drawn positive and partly also negative statements upon himself, Egon Behle is portrayed particularly factually. StarkBehle negativeno clear ratingpositiveVolume of coverage / statements

15. 8. Oktober 200715 Only Stark had a distinctive coverage in 2007 The managers of MTU were normally portrayed outstandingly neutrally and factually in the media. 2007 negativeno clear ratingpositiveVolume of coverage / statements

16. 8. Oktober 200716 Behle and Stark neutral after the change of leadership The manager image of MTU changed rapidly after January 2008. All top-managers, including the old and the new CEO, were almost exclusively portrayed neutrally in the media. 2008 negativeno clear ratingpositiveVolume of coverage / statements

17. 8. Oktober 200717 Unexpected parting well configured Stark’s decision not to prolong his contract came unexpected for the media in 2007. In the course of this management change, the communication was mainly targeted towards pointing out Starks business successes. negativeno clear ratingpositiveVolume of coverage / statements

18. 8. Oktober 200718 Upcoming parting didn‘t weaken Stark Regardless of communicating Stark’s departure at the end of the year fairly early, MTU managed to avoid having the media set its focus on the successor too early. The image of the company was thus embossed by Stark until the official change of office.

19. 8. Oktober 200719 Getting to know the new CEO was the main issue in the first quarter The leading nationwide German media mentioned Behle only four times between 2005 and 2007 in his former function as the CEO of ZF-Lenksysteme. Therefore, in the first quarter of 2008, getting to know the new manager dominated the coverage. negativeno clear ratingpositiveVolume of coverage / statements

20. 8. Oktober 200720 Factual topics took over in the second quarter After the short phase of getting to know the new CEO was over, the public profile of Behle concentrated almost exclusively on factual topics. The public got to know him as a technically and economically competent man of action. negativeno clear ratingpositiveVolume of coverage / statements

21. 8. Oktober 200721 CEO Change – Activities at MTU Media positioning: 8 weeks after arrival: clear and open background briefing with top 12 journalists (newswires, business and financial media, trade press) resulted in portraits and positive ongoing media coverage Interviews with major business / financial dailies and trade magazines Other than media: Welcome speech and discussion with 1,000 employees in week 2 Internal “Road show” at five other MTU locations worldwide Two dozen meetings with relevant top politicians Investor and analyst road shows in Europe and the U.S.

22. 8. Oktober 200722 Conclusions 1.Personalization of business topics has increased ►In the past, coverage was fact-driven and less demanding for the CEO ►Today, positioning of CEOs has to be story-driven to support the company perception 2.Public appearance of CEO must be as authentic as possible and as necessary 3.“The higher they rise, the deeper they fall” - media presence must be limited and well- balanced 4.Focus on business topics – CEO is the representative of his organization 5.Set your own agenda – don‘t believe you have to react and comment on everything 6.Celebrity status damages the CEO‘s reputation, sooner or later 7.Don’t concentrate on one singular topic or image aspect - if this one fails, all is lost 8.CEO change: the stories about the outgoing and the incoming CEO have to match