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?