GERMAN EQUITY FORUM 2016

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1 Extend Your Expectations GERMAN EQUITY FORUM 2016 NOVEMBER 21, 2016 This document contains information which is proprietary to FACC or other companies. Any reproduction, disclosure or use of this information without FACC s prior written consent is expressly prohibited. Page 1

2 FACC AG at a glance 100% focus on lightweight EUR 600 mill. of revenues TIER 1 partner to the leading aerospace OEM s 4 plants & 2 engineering centers in Austria Global network 3,200 employees worldwide This document contains information which is proprietary to FACC or other companies. Any reproduction, disclosure or use of this information without FACC s prior written consent is expressly prohibited. Page 2 Page 2

3 1 2 3 FACC Company Overview The Aerospace Global Market Financials & Outlook Page 3

4 FACC activities are focused on a defined product portfolio from the product idea to customer tailored solutions AEROSTRUCTURES ENGINES & NACELLES INTERIORS Page 4

From Austria to the world Global engineering and production

(Canada) FACC AG (Austria) FACC Slovakia (Slovakia) BTC (China)

International supply chain partners FACC Germany (Germany) FACC

5 From Austria to the world Global engineering and production footprint to meet customers needs worldwide FACC Montreal (Canada) FACC AG (Austria) FACC Slovakia (Slovakia) BTC (China) Fesher (China) Manufacturing/Engineering Engineering International supply chain partners FACC Germany (Germany) FACC India (India) FACC Wichita (US) Mubadala (Abu Dhabi) TAML (India) ACM (Malaysia) Page 5

architecture rolled out to market A321 rate increase benefits FACC product portfolio C-Series program demands growing Embraer E2

6 FACC Business Highlight Focus remained on strategic growth and program execution. Significant achievement. Resources on boarded to support future program demands A350 on track, more then 110 Units delivered to Airbus A320 new cabin architecture rolled out to market A321 rate increase benefits FACC product portfolio C-Series program demands growing Embraer E2 part delivery started MRO Business ramping up Engagement with LH Technik B737 Winglet retrofit program From Austria to the the world Cabine Retrofit for Jet Blue Page 6

7 Innovation Highlights Reduction of cost, performance increases, new material and process developments are pushed forward in our R&D departments. After years of development, FACC is the first company worldwide using Thermographic Inspection Method to NDI inspect monolithic part construction. Inspection time reduced from hours to minutes Real time and in process inspection possible US-Customer approval granted in September 2016 Aerospace material developed are pushed forward to benefiting FACC business model Alternative materials from new suppler Produced in low cost countries to boost benefit from off-shore production Significant reduction in material- and logistic cost Step 1: Material is used for FACC parts produced needed China Market Step 2: Fully qualified for western Aerospace customers in Q2/2017 Page 7

8 1 2 3 FACC Company Overview The Aerospace Global Market Financials & Outlook Page 8

9 The Aerospace Market Overview A350 demand increasing in steps BUSINESS JET Reduced order intake for middle market AC B787 demand Increasing by 40% A320 NEO rate to 60 AC / month in preparation C-Series ramp up gains momentum A380 & B747sales decrease as expected A330 NEO sales starts to pick up Page 9

10 New airplane demand BOEING and AIRBUS predict a demand of aircrafts until 2034 Overall demand / worldwide demand per type Regional jets Single aisle Small widebody Medium wide-body Large widebody Page 10

11 Program portfolio (2) BUSINESS JETS & HELICOPTER Challenger 350 Learjet 40/45 Global 5000 Global 7000/8000 Legacy 450/500 Lineage 1000E Phenom 100/300 Gulfstream G350/ 450/550/650 Cessna Citation Cessna Mustang Falcon 900 Falcon 2000 Falcon 7X Hawker 800 EC135/EC145 Page 11

12 Program portfolio (1) CIVIL AEROSPACE Page 12

13 Lightweight Application Road Map A swift change in composite application helps to improve aircraft efficiency Past Today Mainly Secondary Structure Fairings, Flight Control Surfaces & Interior Limited application on primary structure Primary structure (Wing, Fuselage), made out of composite Technology step up mainly driven by automated composite production Material & Process not significantly changed Page 13

last technology airplanes like A350 or B787 The A350 & B787 are step changing the Industry High degree of

14 Growing composite demand in airplanes Changes in air travel and Airline demands triggers development of more efficient products From a 3% composite content on a 1970 s built B737 s to more than 50% composite content on last technology airplanes like A350 or B787 The A350 & B787 are step changing the Industry High degree of automated production Significant content of primary structure made out > 50% of composite 22% 13% 3% Page 14

system weight added to fulfill customer expectations Airline Cost Structure Significant increase in fuel

15 Significant changes in air travel Real life examples 1970 s Today Passenger Comfort Increased significantly Longer distance flights Point to point travel due to extended range capability Interior system weight added to fulfill customer expectations Airline Cost Structure Significant increase in fuel cost Reduction in ticketing and sales cost Fuel efficient aircraft is a must have for profitability Source: ICAO Page 15

16 Market Demands - Summary FACC is well positioned in the Aerospace Market Fully established Tier 1 partner to the OEM s Strong business volume on all new platforms (A350, A330 Neo, A320 Neo, B787, C-Series, ) Leading edge technology in all segments Well positioned due to Strong R&D Turn key from design to manufacturing Global business set up Leading edge production process & facilities Page 16

17 1 2 3 FACC Company Overview The Aerospace Global Market Financials & Outlook Page 17

18 Growth momentum continues Highlights of the first half year 2016/17 SUSTAINABILITY Significant growth in all business segments going forward Aerostructures continuous its stable development Further operational earnings improvement in the Engine & Nacelle Segment Interiors segment growing the most but impacted by ramp up cost STABILITY As of October 1, 2016 Mr. Ales Starek joined the board of FACC AG CEO decision expected by the end of November 2016 INNOVATIONS US-Customer approval for Thermographic Inspection Method MRO business ramping up Page 18

19 Production revenues by segment New projects are gaining further ground Overall growth of 22.1% + 13 % + 26 % + 33 % HIGHLIGHTS Overall increase in production revenues of 59.8 mill. EUR or 22.8 % Engineering revenues (NRC) improved by 3.3 mill. EUR to 26.1 mill EUR Growth from new programs A350 XWB A321 rates C-Series Page 19

Continous earnings improvement EBIT in the first half 2016 includes 1.4 mill. EUR one off cost in regard of the Fake President Incident EBIT EUR mill.

20 Continous earnings improvement EBIT in the first half 2016 includes 1.4 mill. EUR one off cost in regard of the Fake President Incident EBIT EUR mill. EBIT Q2 2015/16 Q2 2016/17 H1 2015/16 H1 2016/17 Aerostructures Engines & Nacelles ,8-3,7 Interiors ,1-5,9 Page 20

21 Capital expenditures Consequent control of investments however in line with the progress of the business growth EUR mill. Page 21

22 Equity and net financial debt Equity / Equity ratio EUR mill. Net financial debt EUR mill. 39,5 % 43,8 % 43,5 % Page 22

23 Outlook Focus on Profitability Strong organic growth due to rate increase on major aircraft programs A350 XWB, A320, Boeing 787. Start of serial deliveries for new programs like Bombardier C-Series Wing to Body Fairings, New A320 Interior, Embraer E2 wing components Improvements in efficiency measures ongoing Page 23

24 IR-Information Share Information ISIN Official Market Ticker Symbol Reuters Bloomberg AT00000FACC2 Vienna Stock Exchange / prime-market FACC FACC.VI FACC AV Shares Outstanding 45,790,000 Market Capitalisation ~ 250 EUR mill. IR Contact Manuel Taverne Director Investor Relations Phone: +43/59/ Mobile: +43/664/ m.taverne@facc.com Shareholder Structure 44,5% FACC International Free Float 55,5% Page 24

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