Post on 19-Jul-2018
GKN Aerospace
Investor Visit I Wednesday 21st June 2017
The global technology partner to the aerospace industry
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GKN plc -Tier 1 Supplier to the major Automotive and Aerospace OE manufacturers
Global engineering group
Sales of £9.4 billion in 2016
58,000 people in more than 30 countries
Driveline
(45%)
£4,216m
Powder Metallurgy
(11%)
£1,032m
Aerospace
(36%)
£3,423m
Land Systems
(8%)
£704m
Other
(0%)
£39m
2016 – Sales by division
Driveline
(40%)
£323m
Powder Metallurgy
(15%)
£118m
Aerospace
(43%)
£339m
Land Systems
(8%)
£704m
Other
(0%)
£4m loss
2016 – Trading Profit by division
All group financial date in this document relates to 2016 unless otherwise stated. Figures are presented on a management basis
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Our Strategy
Three strong
divisions
Lead in Chosen markets
Five Strategic
Objectives
Creating long-term
shareholder value
Leverage global footprint
Technology driving margin
Operational excellence
Sustain above
market growth
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GKN plc - Key Financial Metrics
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74% Commercial
26% Military
Sales by market
AM
19%
OE
81%
Airbus 19%
Boeing 12%
UTC 10%
GE 9%
Lockheed 7%
Safran 4%
Rolls-Royce 3%
Gulfstream 3%
Honeywell 3%
Others 30%
Sales by customer
Aerostructures 50% Engine
structures 36%
Special products 9%
Services, 5%
Sales by product
2016 sales: £3.42bn
18,000 employees
14 countries
4 R&D centres
GKN Aerospace: the global technology partner to the industry
AM
19%
OE
81%
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GKN Aerospace’s growth story
Our strategy has seen sales increase more than 400% since 2006 2016
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
£650m sales
£3.42bn sales
2006
Volvo Sheets Metal Inc
Filton Fokker
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Near East and Asia
6 manufacturing sites
Positioned where our customers need a technology partner
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Germany
7 UK
1
Norway 2
Sweden
2 Romania
8 Netherlands
23
USA
4
Mexico
1
Canada
1
Turkey
1
China 2
India
1
Thailand
1
Singapore
55 manufacturing locations
14 countries
3 continents
North America
28 manufacturing sites
Europe
21 manufacturing sites
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Leadership in our chosen technologies
Aerostructures
Global
#2
Engine Structures
Global
#2
Electrical Wiring
Global
#3
Transparencies
Global
#2
Focused on leadership positions
Willingness to invest in premium platforms
Remain acquisitional
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Market fundamentals remain strong
Backlog at near historic levels of around 8 years
− Anticipate manufacturing rates to outstrip orders over short-term
Customers predict total aircraft numbers to double by 2035***
* IATA
** Teal
*** Boeing Current Market Outlook 2016-2036
Defence spending
forecast to grow 2%
per annum over
next 5 years**
Air freight traffic
forecast to grow 4.1%
per annum to 2030*
Air passenger
traffic forecast to
grow 3.8% per
annum to 2030*
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Why we are winning
Customer-valued
technology
Strong leadership positions
Clear technology roadmap
Well-positioned on
growth platforms
Extensive content on growing
civil platforms
F-35 driving military growth
Global footprint to serve
our customers
Presence in growth regions
Investment in customer
adjacent facilities
Strong customer
partnerships
RRSPs are well-balanced
across their life cycles
Well-placed for growth
opportunities
GKN Aerospace Filton and Western Approach
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GKN Aerospace Filton
Customers Airbus
Dassault
Triumph
BAE Systems
Programmes: Large Civil: Airbus A320 family, A330, A380,
A350XWB, Boeing 787
Military Transport: A400M
Business Jet: Dassault Falcon 5X
Military Fast Jet: Joint Strike Fighter
Investment: > £60M capital investment since 2009
Approx £25M projected over next 3 yrs
Filton Engineering Centre established
− Over 200 design and engineering specialists
People: Safety
Employee engagement
Education and Community support
Apprenticeship programmes
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GKN Aerospace - Filton Overview
>1,500 employees > £350M Sales
12 Value Streams
Wing Assembly Wing Systems Components
• Major structural assembly
• Metallic and Composite
• Automated and robotic assembly
• Full system capability – hydraulic, pneumatic,
fuel, anti-ice
• Electron beam welding, automated robotic
welding and assembly
• Large structural and complex parts – max 6m x
2m
• Hard and soft metal capability
Business Support Capability
• Design - build capability
• Filton Engineering Centre
• Independent quality approvals
• Metrology and conformance engineering
• Additional capabilities through GKN network
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Investment in New Technologies at Filton
Additive Manufacturing Centre of Excellence
One of 5 global centres of excellence
Powder Bed
− Electron Beam Melting
− Laser Melting
Linear Friction Welding
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GKN Aerospace - Western Approach Overview
GKN’s Centre of Excellence for major
composite primary structure components
Approx £235M invested in new state-of-the-art
composite structures manufacturing and assembly facility
Over 30,000m2 of floor space
First Advanced Fibre Placement spar manufacture
– largest composite part in GKN
First Fixed Trailing Edge automated moving assembly
system
Fully integrated product teams working closely with
customer and supply chain
Programmes
A350 XWB Spar manufacture and Fixed Trailing Edge
Assembly
A400M Spar manufacture
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Outer Spar
Mid Spar Inner Spar
A350 Fixed Trailing Edge Design
3 Spars total over 27m in length with an accuracy of +/- 0.3mm
Total weight of spar carbon is 1230kg/aircraft
FTE assembly weighs 1800kg
The FTE is 7% of total wing weight and supports 10x its own weight
First “large Scale” assembly operation undertaken by GKN
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Questions?