Human Resources Report 2015/2016

Shaping Culture and Leadership

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Contents

Human Resources Report 2015/2016

Shaping Culture and Leadership

MTU Aero Engines

Our Company, Our Strategy ............................................................................................ 4

Human Resource Strategy

New Horizons, New Objectives .................................................................................... 6

Corporate Culture and Organizational Development

Identity Work for the Future ........................................................................................ 10
Mission Statement Process: Shaping the Future ......................................................................... 12
Management Survey ......................................................................................................................... 13
Shop Floor Management.................................................................................................................... 13
Women in Management..................................................................................................................... 14
Work Ability ........................................................................................................................................ 16
Health Management: A Broad Spectrum of Benefits ................................................................ 18

Training
Starting a Career with Thrust ...................................................................................... 20
Secondary School Students: Get Involved, Get Started ............................................................... 22
Training Concept: The Career Paths .............................................................................................. 23
Internationality: Trainee Exchange ................................................................................................ 23
Trainers: Production on Board ........................................................................................................ 24
Students: Ready for Takeoff ............................................................................................................. 25
Master’s Program: Career on Track ............................................................................................... 25

Human Resource Development

Building Technical and Managerial Knowledge .......................................... 26
Talent Management ........................................................................................................................... 29
Business Challenge ........................................................................................................................... 30
Leadership Guide ............................................................................................................................... 31

Compensation and Additional Benefits

A Broad Palette of Employee Benefits ................................................................... 32
Flexible Work Schedules .................................................................................................................. 34
Mobile Working ................................................................................................................................. 34
Combining Family and Career ........................................................................................................ 34
Support from an External Service Provider ................................................................................. 35
Individual Education Benefits ......................................................................................................... 35
Company Pension Scheme ............................................................................................................... 35

Standards of Human Resource Work

Seal of Approval for Career Prospects .................................................................. 36
Germany’s Top Employers ............................................................................................................... 38
Focus Magazine’s Employee Survey on XING .............................................................................. 39
Rankings by Students and Graduates ............................................................................................ 39

3
 MTU Aero Engines
Our Company, Our Strategy
MTU Aero Engines AG and its subsidiaries are
together the leading aero engines manufacturer
in Germany and today an established name
worldwide. We develop, manufacture, sell and
service commercial and military aircraft propul-
sion systems and the gas turbines derived from
them. MTU aims to offer products and services
that span the entire lifecycle of a propulsion
system, whether commercial or military. We
derive our own propulsion from innovative tech-
nologies, the highest quality in batch production
and a flexible range of services customizable to
our customers’ demands.
The official legal predecessor of the present-day
MTU Aero Engines, BMW Flugmotorenbau GmbH,
was founded in 1934. Ever since then MTU has
exerted a decisive influence on advances in avi-
ation propulsion systems—and we continue to do
so today.
4
In the commercial sector MTU Aero Engines
develops and manufactures engine modules and
components. MTU is one of the leading subsys-
tem and component manufacturers in the global
aero engine industry, thanks in particular to our
technological preeminence in low-pressure tur-
bines, high-pressure compressors, turbine center
frames and repair and production processes. Our
brand can be found on products of all thrust and
performance classes, from small engines for busi-
ness jets to the highest-thrust propulsion systems
in the world. As a risk and revenue sharing part-
ner we have a hand in the most important com-
mercial aero engine programs. In these programs
MTU assumes complete responsibility for devel-
oping and manufacturing its modules and com-
ponents. Our cooperation partners are the largest
aero engine manufacturers (OEMs) in the world:
Pratt & Whitney, GE Aviation and Rolls-Royce.
In the military sector MTU is the industrial partner
for nearly all aviation propulsion systems of the
Bundeswehr, the German Armed Forces, and we
handle all the corresponding system management
tasks, from supplying basic technologies, to
developing and manufacturing aero engines and
components, to providing maintenance and com-
prehensive customer service.
The MRO business (Maintenance, Repair and
Overhaul) refers to our commercial maintenance
activities, which are joined under the heading
MTU Maintenance. Through the MTU Mainte-
nance Group we have locations in all important
markets, making us the world’s largest indepen-
dent provider of commercial aero engine mainte-
nance services. We repair and overhaul aero
engines and industrial gas turbines, offering ex-
tensive service options as well as all-in-one solu-
tions. Our customers are airlines and industrial
gas turbine operators around the world.
In 2015 both flight hours and new orders for
standard- and wide-body aircraft remained con-
sistently high, and over the next fifteen years
worldwide air traffic is expected to nearly double.
We are well prepared for this market trend, having
laid the foundation for sustainable growth.
MTU’s objectives are carefully aligned to rein-
force our strategic position and build on it with
profitable growth. Besides maintaining and ex-
panding our leading position in technology, we
aim to ramp up new programs. Another objective
is to improve our competitive edge by increasing
our productivity and decreasing our tied-up capi-
tal.
Our mid-term development objectives in new
commercial aero engine technology conform to
the voluntary agreement of the Advisory Council
for Aviation Research and Innovation in Europe
(ACARE). The council has committed itself to
ambitious targets for the future of air traffic and
published them in its Strategic Research and
Innovation Agenda (SRIA). Engines with MTU
technology are making a decisive contribution
here: in our technology agenda Clean Air Engine
(Claire), we’re combining MTU’s key technologies
into a commercial propulsion system that by the
year 2050 will consume 40 percent less fuel,
produce correspondingly fewer CO2 emissions
and achieve a noise reduction of 65 percent. The
European aviation industry and aviation research
sector has outlined a three-phase plan for reach-
ing the CO2- and noise-reduction objectives de-
fined in the Strategic Research and Innovation
Agenda.
Our technology portfolio comprises some 150
technology projects, all carefully aligned to our
customers’ future requirements under consider-
ation of societal, economic and environmental
factors. In our technology projects we develop
technologies for future generations of propulsion
systems.
5
 Human Resource Strategy
New Horizons, New Objectives
Over the past decade, even while facing chang-
ing demands, MTU has noticeably built up its
strong position as an employer. In the process
we’ve actively shaped and enhanced the working
world in our company with the help of a clear
strategic alignment. Our present structures and
basic benefits provide a solid foundation for our
current human resource work and make MTU
a desirable, attractive employer. So that things
stay this way, Senior Vice President of Human
Resources Hans-Peter Kleitsch and his team
have reviewed and realigned our human re-
source strategy.
Mr. Kleitsch, why did we initiate a realign-
ment of our human resource strategy in
2015?
We had adopted our previous human re-
source strategy in 2007, and with the help of
various measures we’d implemented it with
tremendous success. But society, our markets
and even our company itself are constantly
changing. Just within our direct field of business
many new demands have arisen: aero engine
development, production and maintenance are
gradually merging, our financial power is be-
coming increasingly important for maintaining
our independence, and our business activities
are progressively shifting from the military to
the commercial sector. Meanwhile MTU’s board
of directors team was reshuffled in early 2014,
and changes to our organizational structure
were set in motion as well. It was with all these
changes in mind that we undertook a thorough
revision of our human resource strategy in 2015.
What does that mean for MTU?
For us as a company it means we have to
face recent changes on the market and grow
with them. And that means we have to be willing
to put our ways of thinking and behaving to the
test and adapt them to suit our new challenges.
6
So essentially it’s a question of our corporate
culture and initiating certain change processes
even though they won’t take effect overnight.
One competitor sets itself apart from the rest
not only with products, after all, but also and
especially with corporate culture. When a com-
pany manages not to stand still but to change
with the times and continuously reinvent itself,
that company can be successful for a very long
time. MTU is just such a company—one with a
long tradition behind it, but one that has con-
sistently succeeded in adapting to changing
demands. Now, over the last two years, we’ve
launched yet another change initiative. We
change in order to remain the successful com-
pany we’ve always been.
What developments will be especially im-
portant for MTU’s strategic human resource
management in the future?
Here we can make out five basic trends. First,
the demographic change has been an important
topic for us for a long time now. It’s behind the
shift we’re registering in the makeup of both
our workforce and our applicant pool. But since
we’ve been addressing the issue for several
years now, it’s an area where we’re already very
well positioned. Second, we’re witnessing a
clear and ongoing transition in societal values:
career expectations, identities and attachments
are all changing. This means our workforce is
becoming less homogeneous, and that makes
leadership and human resource work more com-
plex and demanding.
A third trend is the ubiquitous digitalization and
virtualization of work. In aero engine construc-
tion and maintenance, as in other fields, the
developments of Industry 4.0 are producing
marked changes. Fourth, globalization has led
not only to an increase in mobility and air traffic
but also to lasting changes in our company, in-
cluding changes to the internal demands on our
human resource management and to the needs
and biographies of our employees. The fifth
important situation—another one that we, work-
ing in the business field that we do, have been
dealing with for a long time—is scarcity of re-
sources. This situation makes efficiency an im-
portant criterion not only for our aero engines
but for all processes of our human resource
work as well.
7
 How do you plan to tackle these developments
strategically over the long term?
Our operating environment, as defined by so-
ciety, the markets and internal demands, dictates
five strategic spheres of activity: increasing flexi-
bility, enhancing leadership, building on our good
position as an employer, optimizing our workforce
structure and digitalizing and improving the pro-
cesses of our human resource work.
So what’s important in terms of flexibility?
Our goal is to continue to have a personnel
structure adequate to the demands we face.
Long-term planning and preparation are espe-
cially important in the effort to achieve need-
sensitive flexibility. It’s a question of capacity
utilization, qualifications, work hours, work loca-
tions and costs. In production, the “breathing
factory” concept will help us use our resources
in a need-sensitive fashion. Decoupling actual
operating times from standard work hours is an
important tool in this connection, since it will
allow us to keep operations running longer. But
we should also consider making work schedules
and contracts more flexible in order to meet our
location-specific needs. Moreover, we want to
help staff members obtain multiple qualifications,
which will not only develop our already more-
than-qualified employees even further but also
give them a broader assignment range. We’re
also developing new work concepts that accom-
modate individual life phases.
And another core topic is leadership?
Yes, and especially here a look back is very
instructive: leadership styles and leadership cul-
tures also change considerably over time. This
change can’t be left to happen on its own, how-
ever, but must be carefully steered and closely
monitored to ensure it remains in step with the
demands of our society, our company and our
employees. The goal here is to reinforce our
shared understanding of leadership while also
improving leadership quality and effectivity. The
high performance standards anchored deep with-
in our corporate culture are becoming more and
more apparent in light of the manifold challenges
we face. Where several generations are working
together, we focus on establishing a balance of
values. After all, it isn’t enough for the old and
the young to simply work side by side, each with
their own value priorities and behavioral habits.
We want to encourage cooperation and recipro-
city.
8
How are we doing in the competition for
talent?
That’s a topic we’ve worked on very intensely
for many years. MTU has a very good reputation
among students, young professionals and ex-
perienced professionals in the aviation industry.
Our attractiveness as an employer is high. But
we don’t want to rest on our laurels, and in fact
we can’t afford to; instead we need to build on
our position. That’s the only way to guarantee
we’ll get the high-quality recruits we need. The
key is to continuously identify our highest-priority
applicant groups and find out what they care
about. Concretely what we’re looking to do is
register and evaluate the indicators for our at-
tractiveness among these groups. This helps us
align our long-term communications measures
to these important target groups and their needs.
We’ll be expanding both our presence in global
employer rankings and our social media activi-
ties. We also want to keep perfecting the on-
boarding phase for our new employees.
And you want to optimize our workforce
structure as well?
Naturally that’s always a topic in every com-
pany, especially in times of changing markets
and demographics. Facing such changes, we
need to make sure all our personnel needs are
covered, company-wide, for both the short and
the long term. First, of course, it’s about fine-
tuning our current workforce to match our per-
sonnel needs. All pertinent criteria must be con-
sidered, including qualifications, age structure
balance and personnel costs. Second, it’s im-
portant that we conduct a risk assessment of
our workforce structure. What potential for over-
burdening or incapacity exists among what em-
Head Count – Total Workforce (2014–2015 End-of-year Figures)
2014 Total Percentage 2015 Total Percentage

MTU Aero Engines AG 4,614 55.4 % 4,618 55.4 %

MTU Maintenance Hannover GmbH 1,920 23.0 % 1,871 22.5 %

MTU Maintenance Berlin-Brandenburg GmbH 693 8.3% 683 8.2 %
German Locations 7,227 86.7% 7,172 86.1 %
MTU Maintenance Canada Ltd. 402 4.8 % 402 4.8 %
MTU Aero Engines North America Inc. 135 1.6 % 151 1.8 %
Vericor Power Systems LLC. 37 0.4 % 39 0.5 %
MTU Aero Engines Polska 525 6.3 % 562 6.7 %
MTU Maintenance Lease Services B.V. 7 0.1 % 8 0.1 %
Total Abroad 1,106 13.3% 1,162 13.9 %
Consolidated MTU Group 8,333 100 % 8,334 100 %
Europe North America

ployee groups, and how can we best assist these
people? In this way we can improve our employ-
ees’ work ability throughout their professional
lives—to the benefit our employees and the com-
pany.
And what needs to be done in terms of
digitalization?
Ultimately that’s also a question of continuous
development. Digitalization is a permanent chal-
lenge but one that holds in store great benefits
for employees, managers and human resource
managers. We want to make all process-, data-
or qualification-related standards available at all
times and in all places. In the future our employ-
ees should be able to submit and update their
personal data themselves. This will increase not
only transparency but also data access speed.
As mobile devices become increasingly wide-
spread, we’re working to ensure proper security;
a high-tech company like MTU needs to maintain
strict standards of secrecy and confidentiality.
So we’ll also be further intensifying our efforts
to sensitize employees to data security concerns.
How will we go about implementing our new
human resource strategy?
In 2015 we refined our strategy in such a
way that our new strategic alignment could pick
up where our previous one left off, leaving no
cracks. We began to implement the measures of
our refined strategy in 2016. And always when
you start to implement a strategy, to put it into
practice, things get concrete—more recent devel-
opments and demands reveal the need for further
action. So far our new strategic principles have
proven to be a fitting and constructive way of
supporting MTU’s development. But reacting to
the unexpected is precisely one of MTU’s great
strengths. Such challenges bring out exceptional
ambition not only in our engineering department
but also in our human resource management,
not to mention in me personally. That’s an un-
mistakable part of our corporate culture.

9
 Corporate Culture and
Organizational Development
Identity Work for the Future
What do the markets demand? What challenges
do we face in terms of technology, production
and the environment? Who do we want to be
tomorrow? All these questions are examined and
answered by an array of MTU cultural initia-
tives. Our current success gives us a standard
to live up to—and the motivation to set our sights
even higher.
Figures and facts are essential management
indicators for every company, but a company
consists of much more. That’s what is meant by
the term “corporate culture.” Definitions of cor-
porate culture, however, all seem to fall short
of what they set out to describe. Is it a set of
beliefs that distinguishes one company from
the next? That seems doubtful, given the way
fashionable management catchphrases come
and go. Perhaps it’s more a question of the pat-
terns of behavior and identity which develop in
every organization over time. Perhaps that’s
what sets one organization apart from its peers.
MTU’s corporate culture is a clear example of
this. Our current core business and our company
history make our name synonymous with count-
less technological innovations and the highest
quality standards in aero engine design and pro-
duction. In close collaboration with our partners
in the aero engine and aircraft industry we cre-
ate products with lifespans of several decades,
and with our maintenance services we ensure
that those products operate reliably at all times.
This line of work has left its mark on both our
corporate culture and our ideas of leadership,
and it’s clearly palpable in all areas of our com-
pany. For us aero engines are more than just a
product. With their power and their high tech-
nological standards, they fascinate us, and one
senses that clearly in our company.
Many of MTU’s strengths are likewise reflected
in our corporate culture. Our employees’ solid
qualifications, technical expertise and compre-
hensive experience have given us strong pro-
grams and an outstanding market position. This
makes our company confident, determined and
proactive. The internal cooperation and high
level of continuity in our organization are clear
strengths that we can build on. Nevertheless,
what matters here as elsewhere is not absolute
strengths and weaknesses but establishing an
10
equilibrium of behavior and identity. That’s why,
in light of the transitions in our markets, we
need to ensure that our sense of continuity
doesn’t block our openness to change. We do
that through even more openness, namely to
the discussions and conflicts that are an inevit-
able part of the adaptation process.
Over the past two years we’ve put intense work
into precisely such central issues of corporate
identity and culture as these—and that work is
ongoing. The Mission Statement process serves
as our main toolkit in this effort, helping us
clarify and sharpen our future orientation. Ad-
ditionally, our regular surveys of employees and
managers give us an overview of where we’re
in need of development and optimization. This
human resources report details a wealth of
initiatives and measures aimed at enhancing
our corporate culture and thus our organization,
including the employee survey, futures work-
shops, health management and many other
aspects of human resource work. In training
and human resource development our central
methods are our enhanced talent management,
the MTU Business Challenge program and our
trainer strategy. We’re also changing our work
culture with concepts such as shop floor man-
agement and mobile working. We launch some
change initiatives at specific locations, others
company-wide. But in each case, specific needs
determine the direction and methods of change.
Total Workforce Head Count 2015
683
Berlin
7,172
1,871
Hanover
4,618
Munich
11
Mission Statement Process: Shaping the Future
MTU’s Mission Statement process was brought to life with
targeted measures for shaping the future. Our locations in
Ludwigsfelde and Hanover chose different approaches: the
former a dialogue picture to concretize the Mission Statement,
the latter a dialogue-oriented process.
Enhancing MTU’s Mission Statement is a practice
firmly anchored in our corporate culture. It sparks
ideas for the kind of renewal and reorientation
that are of fundamental importance in long cycles.
Meanwhile MTU’s employee surveys provide im-
portant points of reference for testing the Mis-
sion Statement’s orienting power. Does it still
transmit objectives and clarity of purpose to all
essential MTU divisions? How content are our
employees with the processes and general condi-
tions of their work? In the run-up to the employee
survey in late 2015, we took the opportunity to
update the methodology of this important tool of
inner-company dialogue and thus generate new
momentum. Our switch to a different external
partner gave us access to benchmarks that pro-
vide a better comparison with other companies.
In addition, the survey questions themselves
were given more focus. The survey was once
again conducted at all our locations in Germany.
The participation rate rose to 79 percent, a
3-point increase over 2012. This shows our work-
force’s interest and investment in the advance-
ment and alignment of our company. The results
were published internally in early 2016, and
we’re following up as we do after every survey,
with measures developed in workshops with
supervisors.
Trends on the maintenance market are making
business in this area more short-term, leading
to numerous challenges for our established pro-
cesses. In 2014 these changes were addressed
at our Ludwigsfelde location with the help of
group workshops. The “futures workshop” had
the task of bringing the location’s diverse fields
of activity together in a gigantic dialogue picture.
Over the course of four months there arose a
teeming image of the MTU world in Ludwigsfelde:
all work areas related to maintenance can be
seen here, all bustling at once. The picture is
designed to reveal at a glance the complexity and
interdependency of this world. An employee
can’t support a company’s operations effectively,
after all, unless he or she understands those
operations as a whole. With the help of a guiding
12
line, the new picture of the location was dis-
cussed with every employee, with special atten-
tion paid to the interactions between assignment
areas. Summarized into core messages, the
changes were presented succinctly in straight-
forward, practical terms. We concluded the
Mission Statement process at our Ludwigsfelde
location in mid-2015.
It was also in 2015 that our Hanover location
initiated the futures dialogue RESPONSE, which
adopted the slogan “Customer first—better every
day!” The objective was to further strengthen
the location’s competitive edge. The program
consisted of a cumulative series of work and
information meetings, beginning with an event
where the directors presented to management
their understanding of the changes. At subse-
quent events the whole management team was
on hand to discuss the impending challenges and
consequences, proceeding first by area, then by
work process. This clarified the special demands
the location would be facing. Afterwards, work-
groups were formed to develop joint solution
proposals for the identified action points. In fall
2015, after several months of work, the results
were ready to be presented to our employees.
The presentation event served as the kickoff for
a dialogue-oriented change process. The work-
groups made themselves available in “market-
places” to answer employees’ questions. Em-
ployees were also invited to fill out feedback
cards. Managers responded to employees’ ques-
tions and suggestions in several different com-
munication formats. The largest topic areas were
addressed by the directors in “cylinder events,”
regular information sessions open to all em-
ployees. Further topic areas will be discussed
in 2016 at RESPONSE “futures jours fixes,” reg-
ular meetings that will continue to make dialogue
with employees a priority.
Following these specific futures initiatives at our
Ludwigsfelde and Hanover locations, the whole
company’s Mission Statement process is due for
a revision and update in 2016. The Mission State-
ment developed in 2008 and the corresponding
MTU dialogue picture will once again be sub-
jected to a thorough review. The next futures
initiative has been prepared by an interdisci-
plinary team assembled from several locations
and specializations. The process will also take
into account the results of the 2015 employee
survey.
Management Survey
Human resource management is an indispensable partner
and facilitator for managers. That’s why it’s so important that
we occasionally ask how things stand with the cooperation
between the two. In 2014 we did, and our survey yielded some
impressive results.
Like the employee survey, the survey of man-
agers in late 2014 produced very important in-
formation for our human resource management.
Managers can’t perform their management duties
properly, after all, unless human resource man-
agement is providing them with the necessary
support and all relevant information. A total of
100 executives from all specialty areas at our
headquarters in Munich were surveyed with a
standardized questionnaire. The survey con-
tained three sections: services, structure and
organization. Additionally, upper management
was asked to evaluate our strategic alignment.
Shop Floor Management
The growth and complexity of our business make efficient
direction of our MTU shop floor areas essential. The shop floor
management program gives us the right tools to optimize
our communication and decision-making processes with great
precision.
With our new engine programs, the company’s
production and assembly figures are set to grow
rapidly over the coming years. To accommodate
this growth we need to make our decision-making
processes faster and more efficient. This is
especially challenging in the context of the high-
ly specialized, one-off production and complex
maintenance performed in MTU’s shop floor
areas. The demands in terms of component costs,
cycle times, warehouse stores, deliverability and
quality are mounting constantly. In response we
need to strengthen our structured and standard-
ized problem solving processes. This entails
permanent changes to our leadership behavior
and leadership culture. To achieve these objec-
tives MTU has been using shop floor manage-
ment since 2013.
The survey produced very positive results over-
all, validating the work of our human resource
management. We received particularly positive
feedback for our skillful counseling and proactive
support. The consideration we show for man-
agers’ needs when implementing personnel mea-
sures and the strong role the human resources
department plays in personnel decisions both
met with widespread approval. Some potential
for optimization was also identified. Suggestions
were made for improvements to our human re-
source statistics and our potential process. There
were also calls for an even stronger role of the
human resources department in organizational
development and greater transparency in our
current services. We seized some opportunities
for improvement already in 2015—for example,
with our new talent management concept.
In 2015 our focus was on production, assembly,
maintenance and logistics. In the next phase,
in 2016, administration areas will take center
stage—for example, development, production
development or support. At our Hanover and
Ludwigsfelde locations, shop floor management
will be supported by process coaching.
The objective of MTU’s shop floor management
is for managers of all levels to see themselves
as driving forces in a learning organization and
promote continuous improvement in their areas.
A systematic communication and decision-making
cascade guarantees that problems are addressed
transparently. The daily routine begins with a
meeting between the team leader and his or her
employees and ends later that morning with a
meeting between the center director and his or
her managers. In this way, the time-consuming
“meet & mail” approach progressively gives way
to “go & see,” where quick decisions are made
at the site of value creation.
13
Women in Management
When a company makes the percentage of women in its em-
ployee and management ranks a priority, it puts the adaptability
of its corporate culture to the test. Knowing this, MTU has been
systematically working towards change in this area for many
years. A broad palette of policies is in place to ensure that the
initiative keeps moving forward, continuously fueled by fresh
ideas and insights.
The percentage of women in management posi-
tions has long been a topic of wide discussion. In
day-to-day working life, however, it’s a topic that
men and women alike approach with reserva-
tions, albeit for very different reasons. As in all
social transformation processes, uncertainties
will likely recede as everyday reality gradually
shifts. The change process is overturning long-
established patterns of behavior and thought in
society, patterns that are also reflected in work
organizations and cultures. But every industry has
been shaped by its own particularities, and the
high tech industry, arising as it has out of indus-
trial production, still has a hard time inspiring
young women to train or study in a technical
field. A further obstacle for today’s corporate
cultures is developing and retaining female em-
ployees in skilled jobs and management posi-
tions. It seems that even today, contrary to all
our ideals and self-perceptions, we unwittingly
fall back on conventional gender roles for struc-
ture in the working phase of our lives.
Any company hoping to effect a future-oriented
shift in its corporate culture will have to investi-
gate the hidden patterns of thought and behavior
that are making this situation so resistant to
change. Like a kind of autopilot, internalized and
14
institutionalized patterns in companies seem to
promote homogeneity and—against all intentions
—hinder the development of greater diversity.
But with the impending demographic change, we
can’t afford to let female potential go to waste.
That’s why it’s so important that MTU speak
directly to the many women who hold advanced
qualifications and fill them with enthusiasm for
the fascinating world of aviation. In 2010 we re-
doubled our efforts to raise the share of women
in MTU’s management ranks. These policies are
beginning to bear fruit, and we’ll be carefully
monitoring their long-term effects over the com-
ing years. The percentage of women in our work-
force as a whole has already risen to 14.3 per-
cent, but the changes will take effect at the man-
agement level only over the middle term. The
share of women among MTU’s managers, from
master craftspeople to the highest executives, is
currently 8.9 percent.
For many years MTU has been committed to
helping women enter technical fields. We’ve
participated in Girls’ Day every year since 2002,
giving schoolgirls an early glimpse into our oper-
ations and familiarizing them with the exciting
professional world of aero engine technology. The
MTU Study Foundation has been active since
2001, sponsoring motivated, highly talented
female students of technical disciplines as they
develop their personal qualities and professional
qualifications, and preparing these young women
to enter the working world. The yearly foundation
meetings provide a chance for networking and
encourage the female recruits in their personal
development. In the cross-mentoring program,
meanwhile, female employees with initial leader-
ship experience are paired with managers from
other companies. These managers act as their
mentors, and MTU managers provide similar
 support to female leaders from other firms in
return. Besides helping female managers see the
Management Structure bigger picture and get to know other corporate
German Location Totals cultures, the program promotes mutual under-
2015 End-of-year Figures standing. Within the company, the MTU women’s
network has been facilitating interaction between
8.0 % female MTUers since 1996, organizing discus-
sion forums, continuing-education seminars and
0.4 % other events.
761
3.2 % MTU has set itself ambitious goals for better
utilizing the potential of female specialists.
14.4%
Through a range of efforts we’ve established a
solid foundation of policies that will promote cul-
tural change in this area for a long time to come.
74.0%
When hiring we formulate our job advertisements
to speak more directly to female applicants, and
Board of Directors 3
as a result the number of women among our
Upper Management (OFK) 24
external hires has risen considerably. In talent
Management (FK) 110
management we’ve purposely shifted our focus
Extended Management (EFK) 563
to women in order to identify more female pros-
Master Craftspeople 61
pects. We then foster these high-potential female
candidates with targeted development discus-
sions and in-person meetings. What’s more, by
10.6% flexibilizing our labor organization, introducing
mobile work and creating a standard concept
for part-time management positions, we’ve suc-
ceeded in improving the compatibility of family
Management Personnel 761 and career for both men and women in our com-
Total Workforce 7,172 pany.

Besides evaluating and enhancing our existing

Share of Women in Total Workforce
14.3 %
Share of Women in Management
methods, we’ve introduced two new ones. Our
established cross-mentoring program has been
joined by an internal mentoring program de-
signed to boost female talents’ networking and
visibility. Meanwhile our highest executives are
being systematically sensitized to these issues.
This is necessary because unconscious patterns
of thought and behavior are often still based
primarily on male paradigms of career and pro-
fessional life. Also, we’re currently testing a
workshop on unconscious patterns of thought
and behavior, another potential human resource
management project. In cases where our un-
conscious patterns contradict our self-image,
we often fail to recognize them even when con-
fronted with them directly. The aim of the work-
shop is to objectivize the way opinions are
formed in the hiring process, thereby minimizing
our loss of talent.

8.9 %

15
Work Ability Employee Tenure
If we want to know how work ability is faring in a company, one German Location Totals
early indicator is health factors: trust, commitment, physical and 2015 End-of-year Figures
psychological condition, health behavior and work-life balance. Years Permanent Workforce Percentage
With the help of these factors we want to establish a broader
understanding of health, for our employees’ sake and for the sake 0-5 929 14.9%
6-10 945 15.2%
of our company’s productivity. 11-15 14.9%
929
16-20 854 13.7%
21-25 402 6.5%
Health is a fundamental value in MTU’s corporate 26-30 1,036 16.6%
culture. Our efforts at continuous optimization 31-35 474 7.6%
in this area are especially important against the > 35 656 10.5%
background of the demographic change. The
older a person gets, after all, the more likely he Total 6,225 100.0%
or she is to develop health problems. This can be
a burden not only on the individual’s well-being Overall average at German locations: 19.2 years
but also on a company’s productivity. Thus, with
the share of older workers on the rise, company
health promotion is growing in strategic impor-
tance.
and sinking productivity. That’s because these
The average age at MTU has risen over the last are so-called late indicators, meaning they only
five years, as it has at other companies; it’s cur- point out situations where employee health is
rently 45 years. But it’s also true that the longer already considerably compromised. For some
an employee remains with a company, gathering time now specialists have been working to un-
expertise and professional experience, the more cover early indicators. The best we know of
valuable he or she becomes, especially in a highly at present are trust, commitment, physical and
specialized field such as ours. That’s why it’s psychological condition, health behavior and
crucial that we continue to be forward-looking in work-life balance.
our methods of company health promotion.
By watching for early signs in these areas, we
It has long been clear that we can’t check only can tell when changes are happening which may
the obvious health statistics, such as sick-leave hamper work ability or hinder performance. But
rates, accidents on the job, employee turnover this requires us to monitor a wide range of risk
factors. Work ability can suffer due to a chronic
illness or a psychological impairment. Uncer-
tainty, fear and poor physical fitness likewise
have a negative effect. An employee’s perfor-
mance potential is also influenced—negatively or
positively—by work environment, working con-
ditions and the behavior of his or her manager
and team. These factors are also closely linked to
job satisfaction and motivation. All this makes
clear that if we want to see more than just the
tip of the iceberg, we need to keep a close watch
on early indicators. This will entail developing
health promotion projects and instruments that
can help us keep these early indicators under
observation.

16
In 2015 we revised the employee survey to in- to cause psychological strain. With these refer-
clude a longer-range view of performance and ence points in hand, we can devise targeted
work ability, adding questions that cover very measures to protect our employees’ long-term
diverse aspects of health in its relation to early work ability. MTU’s specific work ability indicators
indicators. A synopsis of the answers produces are job satisfaction, social relations and leader-
a so-called work ability index (WAI). MTU’s spe- ship, job demands, influence and development
cific work ability index was developed based on opportunities.
tried-and-tested health management question-
naires. It consists of thirteen questions about
factors that significantly affect our employees’
ability to handle their workload at any given time.
In this way the index can signal whether a team’s
working situation is conducive to health or likely
17
Health Management: A Broad Spectrum of Benefits
Health promotion has a high priority in our company. Accident
prevention, occupational medicine and acute care are indispens-
able basic services. But we also provide a variety of other
services, including medical and psychosocial counseling, health
studios, high-quality company restaurants, action days on
health promotion and much more.
Thanks to the continuous optimization of our
company health care system, MTU currently has
a solid foundation of structures and services pro-
tecting our employees’ work ability. Acute care,
occupational medicine and preventive measures
are the three main pillars of our present program.
With the help of these tools, integrated health
management at MTU strives to protect and pro-
mote employee health and motivation. Realizing
these goals means bolstering our employees’
health reserves, productivity and well-being. To
help implement this agenda, each of our German
locations has a team of occupational physicians,
social counselors and other health practitioners,
either in-house or external.
At our Munich location our MTU Health Studio
stands ready with a range of services and its own
physiotherapy area. Here employees can receive
immediate treatment for ailments, and by follow-
ing up with a specially designed exercise regimen,
they can make sure the improvement lasts. At
our Ludwigsfelde and Hanover locations we’ve
established partnerships with local health stu-
dios.
18
We’ve also established special permanent ser-
vices to make health compatible with convenience.
At our Munich location, equipment for “on-the-
job MTU vibration training” has been installed in
both production and office areas, making our
employees’ path to physical fitness that much
shorter. Vibration training builds general muscle
strength and in particular the deep muscles of
the core, helping prevent back problems. In office
work areas we also combat back problems with
ergonomic sitting training. Meanwhile our “active
break” service offers effective techniques for
limbering up: during long meetings, employees
can choose to have a qualified trainer lead them
through a brief series of movements that will
improve their ability to concentrate and retain
information.
At our action days on general health promotion
and health counseling, internal and external
experts clarify a variety of subjects, offering
clear information and practical everyday tips
for staying healthy longer. The broad palette of
topics ranges from movement and stress to
nutrition and relaxation. In 2015, for example,
our Ludwigsfelde location organized action days
on work safety and health, setting up several
stations on the topics cholesterol, blood sugar,
business yoga, electromyostimulation training
and social counseling. Another event, this one
organized jointly with Audi’s health insurance
provider, the Audi BKK, offered a long list of
health courses. Here the emphasis was on
men’s health, a topic chosen due to our high
percentage of male employees. Meanwhile our
Hanover location took on the topic of cardiovas-
cular illnesses. The “Heart Ticket” event gave
employees the chance to determine their indi-
vidual risk, and health-conscious behavior was Health Rate of Active Workforce
encouraged with a “health card” and precisely German Locations
rewarded with attractive raffle prizes. 2015 End-of-year Figures

By expanding psychological stress screening at Munich Salaried Employees 96.3%

our Hanover location, we’ve devised a cross- Wage Workers 92.9%
disciplinary approach to the whole subject of Total 94.9 %
health. Here we use both individual experience
and objective observations to determine the Hanover Salaried Employees 96.5%
conditions that lead to stress. The identified Wage Workers 92.3%
factors are further clarified in the course of an Total 93.5 %
inspection and an employee workshop. With
this information in hand, managers can begin to Berlin Salaried Employees 95.5%
change the factors in a targeted way, thereby Wage Workers 92.4%
reducing stress levels. Total 93.6%

We also pay careful attention to the subject of Total Salaried Employees 96.3%
nutrition. Company restaurants at MTU’s German Wage Workers 92.7%
locations always offer options for lighter fare in Total 94.5 %
addition to their usual broad selection of food
and drink. Conscientiously prepared, low-fat
meals with high-quality ingredients and plenty of
vegetables and salad are a given. We changed
our vending machine provider at our Munich At all our locations in Germany, psychosocial
location in 2015, making it considerably easier counseling provides relief to employees dealing
for our employees to come by healthy, freshly with conflicts or stress in their professional or
prepared snacks. At our Ludwigsfelde location private environments. In cases of severe psycho-
the action week “Healthy Cuisine” encouraged social distress, our cooperative relationship with
employees to take a healthy interest in balanced a psychotherapeutic clinic guarantees that we
nutrition. can arrange for the necessary help in a timely
fashion. The open-minded, pragmatic way our
When health impairments consistently get in the employees make use of our psychosocial sup-
way of an employee’s productivity, we look for port services testifies to the high level of trust in
ways to get that employee working again. This is MTU’s corporate culture.
also a legal requirement known as Workplace
Reintegration Management (Betriebliches Ein-
gliederungsmanagement, BEM). The goal is to
save a job by helping the employee lastingly over-
come his or her impairment. Since health limita-
tions are always individual, each employee needs
a custom-tailored solution. This isn’t always easy,
as it requires carefully coordinated processes.
In 2015 we reached a supplementary agreement
at our Hanover location based on our group-wide
works agreement of 1998. The agreement lays
down a new approach to BEM. Foregoing the
usual committees, it gives primary responsibility
for the reintegration process to the employee’s
manager. Over the course of 2016 we’ll be
gathering experience in a pilot project at our
Munich location, and an independent contractor
that specializes in such projects will be giving us
individual support.

19
 Training
Starting a Career with Thrust

If you become an aero engine expert at our com-

We offer many ways to enter the fascinating
world of aero engine technology at MTU:
secondary school internships, traineeships,
dual-study programs, university internships,
student work placements, MTU Study Founda-
tion events, term papers and theses. After
all, the long-term, systematic expansion of
our technological expertise is the core of our
corporate culture and the foundation of our
company’s success story.
pany today, you’re standing on the shoulders of
generations, and someday you’ll pass your skills
on to the specialists of tomorrow. We attach
great importance to this continuity. From the
start our training emphasizes proximity to the
production process and rapid specialization and
employability, and as the demands, needs and
concerns of the aero industry change, so do our
training profiles. What changes relatively little is
the percentage of trainees in our workforce,
which in 2015 was 5 percent of permanent staff
at our German locations.

Systematically advancing our highly specialized

technological expertise requires a high level of
continuity; the necessary know-how has to be
built up and expanded over many years and even
decades. This makes it crucial that MTU recruits
receive proper training, whether in school, at
university or in parallel with work.

20
21
Secondary School Students:
Get Involved, Get Started
Our factory gates stand wide open to interested young people,
even those who are still in secondary school. Between school
partnerships, training expos, secondary school internships and
our web presence, young people have many ways to discover and
get to know the MTU world. Once connected with us, it doesn’t
take long for them to see what we can offer—and what we expect
in return.
We pursue strategic involvement in schools in
order to generate enthusiasm among young peo-
ple for the propulsive force of our products and
ideas. Through our school partnerships we visit
school classes directly and invite them to visit us
at MTU. On these occasions it’s our trainees them-
selves who present information about careers
and training. Students who don’t hear about MTU
by this route can always get to know us at voca-
tional training expos, regional job fairs or Girls’
Day.
Whether through our secondary school intern-
ship program or elective courses in technology,
we want to familiarize students with aero engines
as early as possible, hopefully sparking an enthu-
siasm that will guide their educational and pro-
fessional plans. Under our trainees’ supervision,
Hauptschule or Realschule students can experi-
ment with the assembly and disassembly of a
reciprocating engine. Meanwhile Gymnasium
students can test whether their knowledge of
mathematics and physics is enough to get them
22
off the ground. Through practical applications
school classes discover that all the formulas and
laws they learn are the knowledge base of our
business. Ultrasound, for example: when it makes
the leap from the physics books to the factory
floor, it can be used to test for cracks in engine
components.
On the other side of the lectern, educators par-
ticipating in the “Teachers in Business” program
work for one year as “interns” at MTU before
returning to their schools with new experiences
to share. The program has also produced ready-
to-use teaching materials—for example, for upper-
level geography courses. These materials cover
everything from location decisions in a globalized
world to the connections between atmosphere
and aviation, and all this knowledge is available
on the MTU website, only a click away from the
classroom.
Direct lines to the fascinating world of aero
engine technology also lie waiting on Facebook,
XING and MTU’s own training website, outlets
particularly likely to catch the attention of sec-
ondary school students. Anyone who can’t attend
a trade fair or presentation in person can expe-
rience it anyway via real-time online updates,
reports and videos. We’ve also made it as simple
as possible to walk out of the classroom and into
a career: by taking our easy-to-use online test,
anyone can qualify for an in-person job interview.
Training Concept: The Career Paths
Our training concept offers two ways of getting on board at
MTU, the dual-training program and the dual-study program.
The latter is a cooperative education program combining voca-
tional training and tertiary studies. Both programs open doors
to further advancement possibilities at MTU after graduation.
Our training and dual-study programs are cen-
tered on our core business. Our classical training
programs are aircraft mechanics (with a special-
ization in engine technology), industrial mechan-
ics, mechatronics and surface coating, but we
now offer a program in warehouse logistics as
well. Our dual-study programs are mechanical
engineering (concentration construction and
development or production and management),
industrial engineering, business informatics or
business administration (industrial, with a spe-
cialization in finance and accounting). When re-
fining our training programs, we always keep a
close eye on market developments—in the inter-
est of our company and our graduates.
To make the transition from school to training as
seamless as possible, our orientation seminar
introduces newcomers to both the company and
each other. The four pillars of the MTU training
concept reflect central values of our corporate
culture. Mutual respect and good manners are
essential to establishing a candid and comfort-
able working atmosphere. Personal responsibility
is the key to taking control of one’s life: we assist
trainees step by step as they learn to work self-
sufficiently. Team orientation is an absolute ne-
cessity in creating such complex products as
aero engines. Value creation has proven its worth
as the basic principle of all our training, and the
results can be seen in many stages of our work
processes.

Internationality: Trainee Exchange Our Hanover location has long offered its train-
ees a comprehensive exchange program on the
Trainees should have the chance to get to know our international European stage. Alongside the Netherlands and
France, Spain has now established itself as a
business field from early on. To this end we’ve developed several
permanent exchange partner. Participating train-
practical programs with our international partners. ees are sent for up to three months to an aviation
technology company abroad, where they get a
taste of the international scene. Aside from being
For the sake of their mobility, it’s important that a performance incentive for our trainees, the
our trainees gather some initial experience out- program brings MTU to the attention of many
side their training centers. A three-week ex- talented external recruits.
change program with BAE Systems and MBDA
Missile Systems gives many of our trainees the
chance to experience working life and unfamiliar
customs in the U.K.—and many British trainees the
chance to experience these things in Germany.
Another program allows our prospective indus-
trial mechanics to spend three weeks working at
our MTU site in Poland. An exchange program
for mechatronics technicians gives our trainees
in this area insight into the educational and pro-
fessional worlds of Finland and Denmark. Finally,
a three-week English language program—including
a final exam and a week of professional experi-
ence—broadens our trainees’ horizons and equips
them to tackle international assignments later on.

23
Trainers: Production on Board Vocational Training Programs
The close link between training and production has long been
an indispensable part of MTU’s corporate culture. Now we’ve
made this link even stronger. 345
It’s not only MTU trainees who are always striving
to get better and learn something new; our in-
structors also work steadily to improve the day-
51 294
to-day reality of our training. After all, training is
an investment on the part of the company and
should pay off for everyone involved. Industrial Mechanics
Mechatronics
We’ve refined the concept behind our MTU trainer Surface Coating
rotation. Our trainer strategy ensures that train- Warehouse Logistics
B.A. Manufacturing Engineering
ing and production remain in close contact, con-
B.A. Sales of Technical Goods
stantly communicating their respective demands. B.A. Business Administration
The principle of having trainers switch between B.A. Industrial Studies
training and production areas has been applied B.A. Mechanical Engineering
universally, making rotation a basic tenet of our B.A. Industrial Engineering
MTU trainer strategy. This allows for a rapid ex- Aircraft Mechanics
change of experiences, needs and current devel-
opments—from production to training and vice
versa.

Throughout our training department, cross-loca-
tional communication between trainers, regular
departmental workshops and the exchange of
experiences with other companies in our region
and industry produce a steady stream of sug-
gestions for improvement. We also survey cus-
tomers, trainees, trainers and the works council,
making sure every opinion is taken into account.
This is how MTU ensures the preeminence of its
training programs in terms of quality standards,
methods, implementation and evaluation. Each
year anew, MTU’s trainees do themselves and
our company credit: in 2015 the Chamber of
Commerce and Industry for Munich and Upper
Bavaria once again singled out an MTU trainee
as best in the state.

Trainees
German Locations
2015 End-of-year Figures

Permanent Workforce 2015

Munich 4,058 65.2%
Hanover 1,600 25.7%
Berlin 567 9.1%
Total 6,225 100.0%

Trainees 2015
Munich 191 4.5%
Hanover 92 5.4%
Berlin 62 9.9%
Total 345 5.3%

24
Students: Ready for Takeoff
MTU offers university students diverse opportunities to gain
practical career orientation before they graduate. Almost every
department in our company stands open to them: development
and construction, production, quality control, information tech-
nology, purchasing and logistics, program management, market-
ing, human resources, and finance and accounting.
Trade fairs, presentations at universities, factory
tours, the Internet: the ways for students to get
to know MTU are many and varied. A glimpse
into the world of practical applications—as an
intern or a work-placement student, for example,
or while researching and writing a term paper
or thesis—can help a student solidify his or her
professional plans. From our orientation for new-
comers to our Stammtisch (regulars’ table) for
interns, students at MTU receive close guidance
and professional support from their first day for-
ward.
Master’s Program: Career on Track
With the new MTU master’s program we’ve created yet another
instrument of targeted employee development. Such instruments
give our employees individual support and reinforce their
attachment to MTU while also boosting our attractiveness as an
employer.
MTU has long supported employees seeking to
develop themselves through training or continu-
ing education, and these remain important ele-
ments of our company and our corporate culture
to this day. Since the introduction of the master’s
degree in Europe, many of our employees have
chosen to pursue this form of professional quali-
fication. In 2015 we created a framework to help,
the MTU master’s program. The program’s ob-
jective is to support our employees in a manner
consistent with their personal potential and pro-
fessional prospects. We make certain that the
employee and MTU agree on clear objectives
that advance the interests of both parties. By
systematically supervising the decision-making
process, we can clarify whether the employee
wouldn’t be better served by a different educa-
tional program or career path. We’ve also com-
The MTU Study Foundation sponsors motivated,
highly talented female students as they work on
their professional and personal qualifications. It
stands open to all women who have chosen a
technical course of study. The foundation is also
intended as a forum of exchange and networking
between prospective female engineers as they
begin climbing the career ladder. Our yearly
foundation meetings, for example, promote
female recruits’ networking skills and personal
development.
Our close collaboration with institutes and uni-
versity departments is an important channel of
interaction with the academic world. Bachelor’s,
master’s and doctoral theses provide outstanding
opportunities for students to relate university
knowledge to real-world applications. The disser-
tations we supervise cover important specialty
topics in our industry and allow us to have a hand
in the latest academic research. Our factory
tours and internships lure students to us from
Germany and all over Europe.
piled a master’s portfolio—an overview of re-
commended courses of study that have already
proven their quality and suitability to MTU’s
development objectives. The portfolio also
includes program details such as admission
requirements, tuition and duration.
The MTU master’s program is designed to last
three years and may be done part-time while
working or full-time. Participants are awarded
a scholarship. If an employee choses to study
full-time, he or she is assigned a mentor in the
company. The mentor ensures that the employee
remains connected with MTU, and answers any
questions the employee may have. The employee
is given a student work-placement job in the
company, further ensuring that he or she stays
in the loop. This also puts MTU in a position to
profit from his or her newly acquired knowledge.
25
 Human Resource Development
Building Technical and Managerial
Knowledge
Top-qualified employees have always been
and will always be the core of MTU’s highly
specialized aero engine business. They are a
central component of our expertise and our
corporate culture. As we work to continuously
expand this culture of technical and managerial
knowledge, strategic human resource develop-
ment has an important role to play. It’s the
creative brain and motor for education and
training at our company—meaning it’s the
indispensable basis for MTU’s organizational
development and future success.
Human resource development at MTU is char-
acterized by its broad purview, from strategic or-
ganizational and managerial development to the
everyday, practical transmission of know-how.
Even as we work to update MTU’s qualifications
profile for the sake of the next generation of
employees and aero engines, we’re duty-bound
to respect the roots of our corporate culture.
Hence our thinking must be progressive and
conservative at once.
Human resource development at MTU is syn-
onymous with the world >campus, which guides
MTU through its organizational transformations
while also fulfilling the traditional tasks of an
integrated human resource development divi-
sion. >campus acts as a catalyst in the many
fundamental, long-term change processes trans-
forming our corporate culture. An important
example of such a process is the restructuring
of MTU’s talent management in 2015. Another
key initiative is the “MTU Business Challenge,”
a training program for managers.
Human resource development also ensures that
we retain and expand our technical and manage-
rial knowledge. It does this with a broad palette
of training and consulting services, ranging from
support for newcomers to continuing education
for managers. Our development programs for
managers of all levels are an essential element
in this regard. The International Leadership Pro-
gram (ILP), for example, is a cross-locational
26
initiative helping experienced managers at MTU
further develop their skills. The objective is to
promote international project coordination and
communication and to cultivate a shared under-
standing of leadership across borders. The pro-
gram also seeks to strengthen managers in
their role as drivers of change processes. The
Junior Enrollee and Trainee program (JET), mean-
while, is an offer specially aimed at recent uni-
versity graduates. Each recruit is assigned a
target area at the beginning of the program. He
or she then undergoes 18 months of systematic
preparation. Aside from gathering extensive
professional experience at several different as-
signment posts, the recruit attends a series
of training events designed to foster his or her
personal and methodological growth. The re-
cruit’s personal developmental goals and pro-
gress towards achieving them are discussed at
regular interim balance meetings.
Human resource development also provides sup-
port and guidance in transforming company and
management structures. At our Ludwigsfelde
location, for example, we adjusted the man-
agement structure in the shop floor area and
created a new level in the form of shift coordi-
nators. The coordinators serve as a link between
shifts on the shop floor. In 2015 they attended
a training course to prepare for their specific
assignment area. The goal of the course was
to sharpen the future coordinators’ sense of
smooth processes and frictionless cooperation.
The focus was on communication, both in theory
and in practice. Conflicts often arise on the
shop floor, not least due to the growing com-
plexity of work processes, but these conflicts
can be recognized early and deescalated. The
participants rehearsed common conflict situa-
tions through role-play, building their awareness
of the various ways such situations can be
resolved. The training also encouraged network-
ing among the new shift coordinators. Over the
six-month training period they developed a
friendly rapport, which will make their future
cooperation not only more pleasant but also
more effective. A sequel training course will
focus on aspects of leadership.
27
>campus Training Figures
German Locations • 2015 End-of-year Figures

Participation in Training Courses

Total Munich Hanover Berlin

3,675 20,263 2,242 11,732 1,158 6,725 275 1,806

15 % 85 % 16 % 84 % 15 % 85 % 13 % 87 %

23,938
13,974 7,883 2,081

Participation in Training Courses Average Age of Workforce

by Age Group

Not specified > 65 Age Permanent Workforce Percentage

162 13
1% 0% > 60 280 4.5%
55-60 885 14.2%
16–25 56–65 51-55 1,110 17.8%
3,872 2,580 46-50 908 14.6%
16 % 11 % 41-45 773 12.4%
36-40 746 12.0%
26–35 46–55 31-35 675 10.8%
6,335 5,836 26-30 540 8.7%
26 % 24 % 18-25 308 4.9%

36–45 Total 6,225 100.0 %

5,139
21 % Overall average at German locations: 44.55 years

Total Training Investment in € Total Training Days

Excluding Travel Costs
1,515,254 10,298
Munich Munich
18,605
2,670,013
252,190 1,286
Berlin Berlin

902,569 7,021
Hanover Hanover

Training Investment per Employee in € Training Days per Employee

Total 356 Total 2.5
Munich 311 Munich 2.1
Hanover 463 Hanover 3.6
Berlin 368 Berlin 1.9
28
Talent Management
The skilled workers and managers of MTU, like those of many
companies, will soon undergo a generational shift. So that the
shift comes off as smoothly as possible, we honed our process
for identifying and developing potential in 2015, bringing our
methods into line with impending demands. Talent management
now consists of an enhanced potential analysis, measures to
systematically heighten the visibility of high-potential candidates
and a more targeted, more individualized approach to candidate
development. After all, talents should look forward to promising
careers at MTU.
The demographic shift in society is reflected in
the age structure at MTU. Over the next decade
we’ll be doing succession planning for a large
number of experienced skilled workers and man-
agers. In order to master these qualitatively and
quantitatively challenging conditions and orches-
trate the transition effectively, we’ve reworked
our talent management process. The objective
of the restructuring was to register employee
potential comprehensively with new evaluation
criteria and procedures and to make the results
useable in promotion decisions. We also wanted
to make sure we could compare talents at dif-
ferent locations.
Our revised talent management system consists
of five core elements. Scientific indicators allow
us to create more focused potential categories,
which in turn produce future-oriented potential
ratings. The ratings form the basis for potential
conferences. The employee’s direct supervisor
always attends these conferences, ensuring a
well-rounded portrayal and discussion of the
candidate. Another new element is the use of
development centers. Here, trained observers
draw on exercises, interviews and simulations to
estimate an employee’s potential. The highly
nuanced results enable resolute development
planning and an increased visibility of talents
beyond their specific areas or locations. The
whole system is backed up by objective proce-
dures, creating transparency for both the candi-
date and MTU. The outcome is clarity about the
candidate’s developmental areas and the next
steps towards his or her career goals. In parallel
the revised IT basis of the process allows us to
monitor evaluations of the employee’s develop-
ment progress.
The new talent management process is espe-
cially helpful in succession planning for crucial
positions. Continuity, particularly in key positions,
is indispensable to our company’s success. The
new system will be implemented over the course
of 2016.
29
Business Challenge
Investors are very appreciative of a company that shows a
dependable trajectory on the capital markets, especially in times
of turbulent trading floors and fluctuating stock indexes. MTU
aspires to satisfy these expectations and demands. In the day-
to-day operations of the company, however, it’s managers who
are responsible for implementing our chosen strategies. Since
2014 a new educational and cultural initiative, “MTU Business
Challenge,” has been giving our managers the knowledge to do
precisely that.
As a publically traded company, MTU must be
thoroughly attuned to the demands of the capital
markets. These demands have grown steadily in
recent years, amid the turbulence on stock ex-
changes and financial markets. Investors expect
reliability, target achievement and continuous
commercial progress. Market and sales struc-
tures in MTU’s field of business are changing,
however, and financing models are changing with
them. Due to shifts in our customers’ demands,
aero engine production and maintenance are
steadily merging; more and more they’re expect-
ed to go hand-in-hand in long-term service pack-
ages.
In order to satisfy these development demands,
we need all levels of MTU’s management to un-
derstand equally that our future commercial suc-
cess will stand or fall by financial management.
It’s also important that managers possess thor-
ough knowledge of their specific position in the
company’s value creation and investment chains.
After all, every manager, along with the area he
or she supervises, represents a discrete unit of
value creation. Every manager must therefore
learn to gauge the effects of his or her manage-
ment actions on MTU’s overall results.
Our educational and cultural initiative “MTU Busi-
ness Challenge—Management in an MDAX Com-
pany” is addressing these crucial demands. In
2014 and 2015 all managers at our German lo-
cations were invited to take part in an initial,
two-day event. The objective was to establish a
common knowledge base and a common under-
standing of the challenges modern-day financial
management faces in an MDAX company. The
event also sought to strengthen managers’ entre-
preneurial thinking and conduct. Participants
acquired important capital market basics and
business management insights, both in relation
to real-world scenarios. An in-depth look at the
product and capital market cycle sharpened our
30
managers’ sense that MTU stock shares are
as much a part of our portfolio as aero engine
products and services.
External trainers communicated these principles
with a planning game, a teaching method that
allowed such subjects as profit and loss state-
ments, cash flow statements and cash flow anal-
yses to become interactive experiences. Theo-
retical points were tied in with real conditions at
MTU and in the participants’ work environments.
Concretely participants were asked to examine
a business case calculation.
Launched in fall 2014, the training course was
greeted with very strong interest, with a total of
more than 750 managers taking part. According
to the feedback we received, the essential factors
in the event’s success were the way it entwined
theory and practice and the way it presented the
material. Participating managers also felt that the
event enabled them to provide more informed
answers to their teams’ questions about company
decisions.
This success validated our plans to continue and
even expand the educational and cultural initia-
tive over the coming years. In 2016 all our loca-
tions worldwide will be addressing the key issue
of leadership. The goal is to increase the effec-
tiveness of management actions and promote
feedback and dialogue culture. Again we’ll be
emphasizing connections between the material
and MTU’s overall commercial and strategical
context. Concretely we’ll be presenting and
practicing instruments for feedback processes
and effectiveness in leadership. We’ll also be
taking a detailed look at the MTU working world
of tomorrow.
Leadership Guide
Managers should have ready access to the knowledge they need,
and that knowledge should be structured in a self-explanatory
way. Since 2014 MTU has been fulfilling these criteria with a
wiki. The high volume of user traffic speaks to the popularity of
this service.
Wiki systems are widely used today for the
systematic collection and organization of knowl-
edge. The best-known example must be Wikipe-
dia, the online encyclopedia whose capacity for
compiling knowledge has generated tremendous
momentum since the website’s launch fifteen
years ago. Today many universities, organizations
and associations are making use of that power
to compile their own knowledge.
Since 2014 MTU has been doing the same at
its location in Munich, assembling an internal
MTU wiki for managers. The website provides
managers with a quick overview. Since it makes
information available at all times, it’s especially
helpful for bringing new managers up to speed
and introducing new regulations. The executive
summary gives a brief overview of all topics
related to management and personnel. The wiki
also contains links to concrete regulations, new
works agreements, descriptions of structures
and processes, and lists of contact persons. By
these straightforward means we’ve established
transparency about everyday management regu-
lations.
Leadership information and leadership and per-
sonnel process requirements are now available
only through the Leadership Guide. This ensures
that managers make regular use of this instru-
ment and thus keep it in mind as a reference
work. All contents are saved in a central system,
and access is regulated by multileveled authori-
zation concepts. The Leadership Guide on the
wiki was rated very highly in the management
survey. The high volume of page views is another
clear sign of its broad appeal. In 2016 our two
other German sites will be adopting the Leader-
ship Guide as well.
31
 Compensation and Additional Benefits
A Broad Palette of Employee Benefits
MTU’s compensation and employee benefit
system is extensive. Besides its primary com-
ponents, namely fixed and variable compensa-
tion, it contains a wealth of additional benefits.
Depending on an employee’s needs and stage
in life, different elements of this system will take
priority—for example, flexible work schedules
or childcare.
Today’s society is characterized by dramatic
changes in living conditions—increased individual
mobility, for example—and especially by the
growing significance of work as a source of
meaning in life. At the same time, new values
outside work are also gaining in importance—
sustainability, leisure time, health, time for chil-
dren and the redistribution of family responsi-
bilities are only a few examples. The individual
search for a new balance of values is often
summed up in the catchphrase “work-life bal-
ance.” Employees ought to be able to find this
balance for themselves in accordance with their
individual needs and living situations. For this
they need sufficient latitude from their employ-
ers.
32
If MTU wants to come out ahead in the growing
competition for talented applicants, it is essen-
tial that we give our employees this kind of lee-
way. The basis for that will be the MTU com-
pensation system, which offers performance-
and market-driven compensation. We offer both
exempt and non-exempt employees numerous
additional monetary and non-monetary com-
pensation components aside from basic pay.
These benefits have a different value for each
employee depending on his or her stage in life
and personal priorities. For both exempt and
non-exempt employees, performance-related
pay at MTU is dependent partly on company
success and partly on individual performance.
Performance evaluations focus on a division’s
collective goals and the employee’s total contri-
bution towards achieving them. One optional
element among our additional benefits is the
employee stock ownership plan, which employ-
ees may accept or decline on a yearly basis.
Twenty percent of our employees participated
in 2015, together amassing an investment
volume of 8.9 million euros, the largest share
the program has ever taken in MTU’s equity.
33
Flexible Work Schedules
Our employees’ success in finding their own work-life balance is
to a large extent contingent on whether they are free to organize
their own time. That’s why we offer flexible work schedules.
Time sovereignty is an important condition for
productivity—not only at any given moment but
also over the long term. It’s decisive for motiva-
tion, health and satisfaction. Where time sover-
eignty is lacking, the lack is felt as a strain and
a burden. Time sovereignty at work is therefore
highly important for quality of life and productiv-
ity in all life phases. MTU offers a whole spectrum
of ways that employees can take charge of their
own time, a spectrum we’ve been expanding for
Mobile Working
We continuously strive to make our work arrangements more
need-sensitive. Since 2015 we’ve been testing further possibili-
ties for flexibilization with our pilot project “Mobile Working.”
Attempts to make working conditions more flexi-
ble face special challenges at a company like
MTU. We run up against limitations here not only
because a large share of our workforce is em-
ployed in production but also because our field
of business entails special standards of confi-
dentiality and secrecy.
Combining Family and Career
MTU has a deep and long-standing commitment to making
family and career compatible. We were years ahead of the curve
in this area, instituting policies that have meanwhile become
standard practice—and we’ve been improving them ever since.
Flexible work hours, part-time schedules, child-
care: these benefits are a given for our employ-
ees. Located just outside the front gates of our
Munich headquarters, the parents’ initiative
TurBienchen e.V. provides wiggle room for chil-
dren—and for parents’ busy schedules. The day
care center receives financial support from MTU
and fulfills an urgent need in light of the scarcity
of childcare services. MTU sponsors childcare
34
years. The MTU sabbatical program, for example,
follows the principle of maximum flexibility. Any
employee with an open-ended contract at one
of our locations in Germany may request a sab-
batical period of between two and six months to
realize personal projects or dreams. Employees
may also take a flexible leave of absence for
the sake of professional education—to obtain a
master craftsperson certificate, for example, or
to undergo advanced specialized training.
In spite of this, improving our employees’ time
sovereignty is important to us—and has been for
a long time. As far back as fifteen years ago we
established company regulations for telecom-
muting. Since 2015 we’ve been testing further
up-to-date methods of need-sensitive work coor-
dination with our “Mobile Working” project. The
works agreement establishes a broad, flexible
framework that managers and employees can
flesh out according to company requirements
and personal needs. The manager and the em-
ployee determine together whether mobile work-
ing is suitable for the assignment area in ques-
tion, whether the employee will need additional
equipment and when the employee’s presence
will be required in the office. Upon conclusion
of the pilot project, we’ll assess the results and
use them to enhance our current offers.
on our company grounds during summer too. In
the “Summer Kids” program, employees’ children
between the ages of three and twelve are kept
busy during summer vacation with exciting
activities. Employees’ families are also welcome
on Family Fun Day, which we’ll be celebrating
again in 2016.
Support from an External Service Provider With this comprehensive catalogue of benefits,
our employees have support for many of the
MTU’s own, internal services for making family and career difficulties of organizing and caring for a family,
which helps them keep a clear head for work.
compatible have long been supplemented by those of an
In any and all emergencies, the services are
external service provider. available to our employees over the Internet, only
a click away. What’s more, feedback from em-
Despite all the services we offer to make family ployees and continuous quality control ensure
and career compatible, our employees some- satisfaction with the services provided.
times need extra help in a pinch. Their specific
needs vary widely from case to case: childcare
in an emergency, nursing home care for a parent,
housekeeping help. MTU has long entrusted
additional family services such as these to an
external service provider. But we subject these
services to the same close scrutiny as we do
our own, constantly weighing them against the
expectations of our company and our employees.

Individual Education Benefits With these diverse opportunities and in consul-

tation with management, an employee can me-
Investments in education occupy an important place in our thodically cultivate and advance his or her career.
The support options include our master’s pro-
employee benefit system. With the help of diverse offers,
gram, the International Leadership Program (ILP)
employees can precisely plan their own career paths and and the Junior Enrollee and Trainee program
receive systematic support in pursuing them. (JET). In addition, our human resource develop-
ment division, >campus, offers diverse opportu-
nities for individualized career advancement.
One thing no one can take away from you is Employees can also realize their personal edu-
knowledge: that’s clear from the modern devel- cation goals by taking an MTU sabbatical or an
opment and career paths that employees in many education leave of up to 36 months.
different areas of our company have followed.
Education is an especially important investment
for an employee, one from which he or she will
benefit a whole life long. At MTU we not only
instruct trainees in a wide spectrum of vocational
training programs; we also offer our permanent
employees a broad palette of continuing educa-
tion opportunities among their employee bene-
fits.

Company Pension Scheme als to the company, inclusion in a reinsured pen-

sion fund. A well-known pension fund associa-
The company pension scheme is an important compensation tion handles the transactions. Employees may
also choose to make private provisions for retire-
component in MTU’s system of benefits. Granted to every
ment by means of deferred compensation. The
employee, it supplements the German national pension scheme. benefits of our company pension scheme include
pension and disability payments as well as pro-
Company pension schemes are one of the three visions for surviving dependents.
pillars of the retirement planning system, along-
side the public pension scheme and private
retirement provisions. MTU grants all employees
and managers employer-sponsored company
retirement benefits. These benefits take the form
of a direct entitlement or, for more recent arriv-

35
 Standards of Human Resource Work
Seal of Approval for Career Prospects
Applicants must prove their abilities in rounds
of interviews, but employers undergo close
inspection too—for employer rankings, which
tell young professionals, skilled workers, man-
agers and employees how companies measure
up to one another. MTU has once again distin-
guished itself in these rankings as a highly
attractive employer.
As a company’s culture and leadership evolve,
its human resource work must change too.
That’s why MTU has to constantly monitor
whether it’s still in touch with the needs of its
current employees and future applicants. Up-
and-coming generations simply have a different
notion of commitment in societal, professional
and private life. Many veteran employees are
36
looking to move in new directions in response to
new personal priorities or unexpected demands
in their private lives. Not only do we regularly
check internally, for ourselves, whether our em-
ployment conditions and benefit components are
still suitable; we also see external evaluations
and comparisons with other employers as im-
portant indicators. The results of these assess-
ments have always been more than satisfactory
for MTU, and over the past two years it was no
different. Every notable employer ranking during
that time spoke loud and clear: MTU is an em-
ployer of choice, with a fixed place in the career
planning of students, university graduates,
young recruits and skilled workers. Well beyond
its own circle of employees, MTU enjoys an
exceptional reputation as an attractive employer.
37
Germany’s Top Employers
One of the most important employer evaluations is the “Top
Employer” review. MTU was recently awarded this honor again,
with special praise for three categories: talent strategy, career &
succession planning and compensation & benefits.
The Top Employers Institute certifies companies
around the world for offering their employees
outstanding working conditions. In 2016 MTU
was named a “Top Employer” for the tenth time
in a row. Using a comprehensive questionnaire
survey and interviews with HR administrators,
the institute examines nine categories: talent
strategy, personnel planning, onboarding, train-
ing & development, performance management,
manager development, career & succession plan-
ning, compensation & benefits and corporate
culture.
The study consists of over 100 questions, which
are weighted every year by an external committee
of HR experts in light of both recent HR trends
and the current economic situation of the country
in question. In order to lend even more authority
to the certification process, the audit firm Grant
Thornton was contracted to review, analyze
statistically and compare all answers and docu-
ments. All this ensures that “Top Employer”
certification is awarded only to companies that
fulfill the objective evaluation criteria to a high
degree.
MTU was one of 117 German companies from
various industries to receive certification this
year. We saw the honor as another validation of
the intense work we put into building and main-
taining our attractiveness as an employer. MTU
received especially high marks in three areas:
talent strategy, career & succession planning and
compensation & benefits. This reflects the great
importance that MTU places on being an em-
ployee-oriented company.
One of the grounds for MTU’s certification this
year was our universal talent management con-
cept, with its clear-cut objectives and organiza-
tional embeddedness. In “career & succession
planning” we scored extra points for our many
programs aimed at secondary school students,
university students and graduates. Our solid
results were also due in part to our programs for
realizing career goals, such as competency-based
training courses, coaching, mentoring and se-
condment. Over 90 percent of vacant manage-
ment positions in our company were filled by
38
internal recruitment, a strong argument for the
effectiveness of our systematic human resource
development and succession planning. MTU
measured up especially well not only in remu-
neration and additional compensation compo-
nents (vacation bonuses, holiday bonuses, profit
sharing, shift allowances) but also in secondary
benefits. In work schedule flexibility—including
flextime, part-time work, sabbaticals and parental
leave—MTU outperformed some of the top-ranked
companies in Germany.
There was also high praise for the commitment
MTU’s top management has shown to manager
development. Examples here include our man-
agers’ readiness to support programs by acting
as mentors and the way projects are entrusted
to new managers in the interest of development.
The institute also highlighted in its evaluation
the diverse methods we employ in building our
managers’ skills and qualifications.
Despite our thoroughly international business
field, some 86 percent of our workforce is em-
ployed at our locations in Germany. Nevertheless,
our employer profile attracts positive attention
even beyond German borders. MTU Aero Engines
Polska received the “Top Employer” seal of
approval for the second time, placing it among
the best 37 companies in Poland. Also coming
in for recognition in 2015 was the Vancouver
location of MTU Aero Engines Canada, which
was named one of the “Best Employers” in British
Columbia. This evaluation looked at several
areas: workplace, health, financial & family bene-
fits, employee communications, performance
management and community involvement.
Focus Magazine’s Employee Survey on XING
If you survey employees directly on the careers forum XING,
you’re sure to get direct answers. And precisely in these assess-
ments MTU has made a strong showing—again.
In their study of Germany’s “Best Employers in
2015,” the news magazine Focus and the careers
website XING found that MTU’s reputation as an
attractive employer extends well beyond its own
industry. In the first evaluation round, employees
at 2,000 companies with workforces of at least
500 were asked to share their opinions of their
employers via XING. Their responses were com-
bined with evaluations from other websites such
as Kununu. The second evaluation round, a
broad-based online survey, collected and com-
piled 70,000 evaluations. Employees of all ages
and hierarchy levels assessed whether the every-
day reality of their work lived up to the promises
Rankings by Students and Graduates
An overview of the relative attractiveness of various employers
can be very useful, especially for those just embarking upon a
career. Several evaluations—including surveys by the trendence
Institute in Berlin, the “Young Professionals” studies conducted
by Universum and the business magazine Wirtschaftswoche,
and assessments on the website Kununu—show that hopping on
board at MTU is a good choice.
MTU’s attractive employer profile is familiar
even to those who haven’t entered the labor
market yet. In the 2015 edition of the employer
ranking by the trendence Institute in Berlin, MTU
made by HR departments and careers websites.
The results showed that a total of 800 companies
from 22 different industries had achieved em-
ployee satisfaction with outstanding working con-
ditions. MTU ranked thirteenth in the industry
category “Ship, Aircraft, Railway Vehicle and
Other Vehicle Construction.” The top-scoring
company earned 8,600 of a possible 10,000
points. With a total of 7,014 points, MTU finished
ahead of many big names in our industry—and
well-known employers in other industries as well.
again rated well among engineering students
nearing graduation. The trendence “Graduate
Barometer in Engineering” shows that our posi-
tioning as a highly specialized company extends
beyond the aviation industry. Engineering gradu-
ates again placed us in the top half of all com-
panies in the study, which includes the many
large conglomerates of the high-tech German
business environment.
Our score in this evaluation was confirmed and
even surpassed by our placing in the 2015 study
conducted by the consulting firm Universum
Communications and the business magazine
Wirtschaftswoche. Here we finished in the top
third, in 30th place. This survey of over 5,381
professionals all across Germany examines not
only how employers are perceived and how
attractive they are but also which career goals
are important to up-and-coming specialists.
The Kununu ranking also looks at MTU through
the eyes of both employees and potential appli-
cants. In this survey conducted by the largest
employer evaluation forum in the German-speak-
ing world, MTU fetched the title “Top Company.”
39
 GER 04/16/MUC/00000/DE/EB/E

MTU Aero Engines AG

Dachauer Straße 665
80995 Munich • Germany
Tel. +49 89 1489-0
Fax +49 89 1489-5500
info@mtu.de
www.mtu.de