Japan International Transport Institute, USA June 26th 2013, Washington, D.C. MRJ and The Future of Regional Jets Howard Thrall Senior Vice President Mitsubishi Aircraft Corporation America DISCLAIMER: This document and all information contained herein is the sole property of Mitsubishi Aircraft Corporation ( Mitsubishi Aircraft ), and shall not be (a) used for any purpose other than that for which it is supplied or (b) reproduced or disclosed in any way to any third party, in each case, in whole or in part, without Mitsubishi Aircraft s prior written consent. No rights or licenses under any intellectual property right in or to any information contained herein are granted by the delivery of this document or the disclosure of its contents. This document and all information contained herein is provided for informational purposes only and is subject to change. In addition, the information herein may include certain statements, estimates, targets and projections that reflect significant assumptions and subjective judgments by Mitsubishi Aircraft concerning anticipated results that may or may not prove to be correct and there can be no assurance that any such statements, estimates, targets or projections are attainable or will be realized. No statement herein (or the acceptance thereof) shall constitute any contractual offer by, nor create any obligation on the part of, Mitsubishi Aircraft. Mitsubishi Aircraft hereby expressly disclaims all representations or warranties, express or implied, with respect to the information contained herein. MITSUBISHI AIRCRAFT PROPRIETARY 1
Agenda 1. Industry Overview 2. Market Trends & Forecast 3. Mitsubishi Aircraft Corporation 4. The Mitsubishi Regional Jet 5. Closing Remarks 2
Industry Overview Regional aircraft have become the backbone of the airline industry Regulatory, economic, and technological developments have enabled significant growth in the regional airline industry 50% of US aircraft departures are regional jets (25% Worldwide) Regional jets connect smaller cities and feed airlines hubs to fill larger jets There are four distinctive motives airlines have for introducing regional jets 1. Replace larger jets in an effort to reduce over-capacity and improve load factors 2. Supplement larger jets to increase frequency and adjust capacity 3. Replace turboprops to offer higher quality jet service and more seats 4. Introduce new service on routes not economical with larger jets 3
Industry Overview Long term demand for regional jets is driven primarily by GDP growth and infrastructure development Global market forecast for regional jets over the next 20 years is 5,000 plus units an average of over 250 aircraft per year Trending away from Turboprops to newer regional jets as technologies provide more fuel efficiency and traveling experience Historically, two dominant players, however, product evolution and changing market conditions create new opportunities After careful analysis, Mitsubishi saw and seized the opportunity for a new kind of regional jet and has developed a family of products for the global market in the 70-90 seat market segment, and is fully committed to deliver the highest quality planes in the world together with the level of in-service product support legendary in Japan. 4
Market Trends & Forecast 5
Commercial Jet Market Seats B747 A380 500 B777 400 Wide Body B787 B767 A350 A330 300 B737/MAX A320/neo 200 100 0 Narrow Body Regional Jet MS21 E-Jet CRJ CSeries MRJ C919 SSJ100 ARJ21 6
RJ Significant Role in Air Transportation 80.0 Daily Departure (thousands) 70.0 60.0 50.0 40.0 30.0 20.0 Annual growth 3.0% All Jets RJ WB & NB 1 of 4 departures worldwide are made by RJs! 50% in the USA 10.0 0.0 2004 2012 Source: Diio 7
RJ Fleet Transition 50 seat RJ is steadily declining Significant growth in larger RJ fleet 8,000 RJs in Service 7,000 6,000 5,000 4,000 Actual Forecast 90-100 seat RJ 3,000 2,000 70 seat RJ 1,000 50 seat RJ 0 2001 2006 2011 2016 2021 2026 2031 Source: Ascend Online, Mitsubishi Aircraft Forecast 2012 8
5,000+ Demand for Next 20 Years 25,000 20,000 New Deliveries Retained Number of Aircraft in Service 15,000 10,000 17,230 5,000 5,420 7,410 0 2,620 2011 2031 2011 2031 2011 2031 2011 2031 Turboprop Regional Jet Narrow Body Wide Body Source: Ascend (2011), Mitsubishi Aircraft (2031) 9
Diversified 20 Year Demand Forecast CIS 370 7% Latin America 740 14% Middle East Africa 130 320 2% 6% 70-100 seat Regional Jet 5,280 aircraft North America 1,640 31% Asia Pacific 1,030 20% Europe 1,050 20% 70 100 seat Regional Jet demand forecast (2012 2031) Source: Mitsubishi Aircraft 10
Mitsubishi Aircraft Corporation 11
Mitsubishi Aircraft Corporation 36% 64% Development Bank of Japan Capital : US$1.0 billion Headquarters (Nagoya) Mitsubishi Aircraft Corporation America, Inc. (Addison/Dallas) Mitsubishi Aircraft Corporation Europe B.V. (Amsterdam) Tokyo Office 12
Mitsubishi Heavy Industries Long History and Experience Total Integration MU-2 YS11 MU300 MH2000 MRJ Sub-assembly Wing GX Challenger-300 787 Fuselage 767 777 DASH8 CRJ Parts DC10 747 MD11 757 737 Source : MHI, Boeing, Airbus, Bombardier Web site A380 13
The MRJ 14
MRJ Key Features Environment Lowest Fuel Burn, Noise, Emissions Passengers Most Comfortable Cabin Airlines Most Efficient Aircraft 15
State of the Art Technologies Human-Centered Flight Deck & FBW Technology Passenger-Oriented Cabin Composite Structure (Empennage) High Aspect Ratio Wing & Advanced Aerodynamics (CFD Design & Low Noise Airframe) New GTF Engine 16
MRJ Family MRJ100X (Plan) 100 seats MRJ90 92 seats MRJ70 78 seats 17
Game Changing Fuel Efficiency Significantly Lower Fuel Burn & CO 2 Emissions 60 seats 80 seats 40% 100 seats 30% CRJ700NG(70) EMB170(76) Current RJs Block Fuel / Seat 20% MRJ70(78) EMB175(84) EMB190(100) CRJ900NG(86) SSJ100/95(98) A318(117) 737-600(122) 120 seats 10% CRJ1000NG(98) EMB195(116) MRJ 140 seats 0% MRJ90(92) 160 seats -10% RE2.1-10% 0% 10% 20% 30% 40% 50% 60% * Mitsubishi Aircraft Estimate, Single Class Typical Seat, LRC, 500nm Trip Block Fuel / Trip 18
Enhancing the Passenger Experience Enhanced Service Level Compatible with Mainline Flights MRJ Flight Mainline Flight Larger cabin space provides mainline comfort Bigger overhead bins accommodate large roller bags No gate-check for large roller bags 19
Passenger Centric Cabin (US Male 97.5%ile) Maximum size roller bag 22 x 18 x 10 in 18.5 in 2 in 80 in Mainline jet comfort Same seat width as 787 MRJ 18.5 in 787 (8abreast) 18.5 in 787 (9abreast) 17.2 in EMB170/190 18.25 in CRJ 17.3 in Ample head & foot clearance at the seat 18 in Large overhead bin 108.5 in IATA-recommended maximum size bag 20
Most Spacious Cabin Widest & highest cabin Widest passenger seat Largest overhead bin 79 in 80 in 74.7 in 18.25 in 18.5 in 17.3 in 19.75 in 18 in 16 in 108.0 in EMB170/190 108.5 in MRJ70/90 100.5 in CRJ700/900 IATA-recommended maximum size bag (25 x 45 x 56 cm (9.8 x 17.7 x 22.0 in)) * Passenger Scale: 74 in (1.88 m) (US Male 97.5 %ile) 21
Interior Arrangement : Typical Dual Class MRJ90: 81 Pax Dual-Class, 9F+72Y (36"/30" pitch) L G A S S G A L C MRJ70: 69 Pax Dual-Class, 9F+60Y (36 /30" pitch) L G A S S G A L C L: Lavatory G: Galley S: Stowage A: Flight Attendant C: Cargo Compartment 22
Significantly Lower CO 2 Emissions Lower CO 2 emissions mean: - Contributing to preventing global warming -CO 2 trading cost benefits - Enhancing corporate value 20,000 15,000 More than 20% CO 2 Emission [t. / year / aircraft] 10,000 EMB190 MRJ90 5,000 0 RE 2.1 *Mitsubishi Aircraft estimation, 500nm Trip, 2,200 cycle/year 23
Historical Market Success Largest Cumulative Firm Orders before First Flight 200 165 Cumulative Orders Before First Flight 150 100 77 91 (Units) 50 * Cumulative order at first flight of all variants 0 MRJ E-Jets * CRJ700/900 * Source: Ascend, Mitsubishi Aircraft 24
MRJ Order Status Order Option ANA 15 10 Trans States Holdings 50 50 SkyWest, Inc. 100 100 Total 165 160 325 25
Major Partners Industry-leading partners on the MRJ program Engine Electrical Power, Air Management, APU, Fire Protection Avionics (Incl. Flight Control Computer) Landing Gear Sumitomo Precision Product AIDC Slats, flaps, belly fairing, rudder, elevator Hydraulic System Passenger, service and cargo doors Pylon Main Structure Flight Deck Final Assembly Flight Control Actuator Payload Systems 26
World Class Customer Support World class support by proven partners under the full responsibility of Mitsubishi Aircraft Corporation Technical Support Supported by Material Support IP planning : Supported by Training Supported by Logistics partner: TBD Web Portal Supported by Technical Publications Supported by Preferred MRO Network Partner:TBD 27
Closing Remarks The Mitsubishi Regional Jet Backed by MHI s deep rooted history in aviation together with exceptional strength from parent company and Blue-Chip Japanese shareholders financial, industrial, and cultural strength First tier team of Supplier-Partners, including roughly 50% US content (Pratt & Whitney, UTAS, Rockwell Collins, Spirit, et al) The greenest, most comfortable and fuel-efficient aircraft in its class Enjoying historical success in a growing market segment Excellent global demand for next generation family of regional jets 28
Mitsubishi Regional Jet, a new concept from Japan for the skies of the world. http://www.mrj japan.com/ 29
Legend This document and all information contained herein is the sole property of Mitsubishi Aircraft Corporation ( Mitsubishi Aircraft ), and shall not be (a) used for any purpose other than that for which it is supplied or (b) reproduced or disclosed in any way to any third party, in each case, in whole or in part, without Mitsubishi Aircraft s prior written consent. No rights or licenses under any intellectual property right in or to any information contained herein are granted by the delivery of this document or the disclosure of its contents. This document and all information contained herein is provided for informational purposes only and is subject to change. In addition, the information herein may include certain statements, estimates, targets and projections that reflect significant assumptions and subjective judgments by Mitsubishi Aircraft concerning anticipated results that may or may not prove to be correct and there can be no assurance that any such statements, estimates, targets or projections are attainable or will be realized. No statement herein (or the acceptance thereof) shall constitute any contractual offer by, nor create any obligation on the part of, Mitsubishi Aircraft. Mitsubishi Aircraft hereby expressly disclaims all representations or warranties, express or implied, with respect to the information contained 30