GKN Aerospace Proprietary and Confidential

GKN Aerospace Visit Filton and Western Approach

Guy Stainer | 10th February 2015

GKN Aerospace Proprietary and Confidential

GKN: A Tier 1 Supplier to the major OE manufacturers in Automotive, Aerospace and Land Systems markets

GKN Aerospace

A leading first tier supplier to the

global aerospace industry.

GKN Driveline

A world leading supplier of

automotive driveline systems

and solutions.

GKN Powder Metallurgy

One of the world’s largest

manufacturers of metal powder

and sintered components.

GKN Land Systems

A leading supplier of engineered

power management products,

systems and services.

2013 - Sales by division

Driveline

(45%)

£3,416m

Aerospace

(30%)

£2,243m

Land Systems

(12%)

£899m

Other

(1%)

£104m

All group financial data in this document relates to 2013 unless otherwise stated. Sales figures are presented on a management basis

Powder Metallurgy

(12%)

£932m

Global engineering group

Sales of £7.6 billion in 2013 (£5.6bn 9 mths to

end Sept 2014, with 8.9% trading margin)

48,000 people in more than 30 countries

GKN Aerospace Proprietary and Confidential

Clear strategy: five key elements

Creating long-term

shareholder value Four strong divisions

Lead in chosen markets

Leverage global footprint

Technology driving margin

Operational excellence

Increasing cash flow,

EPS and dividends

BUSINESS

PERFORMANCE

Growth target:

Above market

Group target:

8-10%

Target: 20%

Sustain above

market growth

Cash Flow

Growth

ROIC Margin

Five strategic

objectives

GKN Aerospace Proprietary and Confidential

GKN Aerospace

£2.2billion International Aerospace enterprise

32 sites, approx 12,000 people

Kevin Cummings

CEO

GKN Aerospace

Daniele Cagnatel

GKN Aerospace

Aerostructures

North America

John Pritchard

GKN Aerospace

Aerostructures

Europe

Mike McCann

GKN Aerospace

Engine Systems

Gavin Wesson

GKN Aerospace

Special Products

Group

GKN Aerospace Proprietary and Confidential

GKN Aerospace

GKN Aerospace Proprietary and Confidential

Transparencies

and Protection

Systems

Special products 5% of Sales 2013

Nacelle and

Pylon

Engine structures 50% of Sales 2013

Engine Systems and Services Wing Fuselage

Aerostructures 45% of Sales 2013

A380 Fixed Trailing Edge

A350XWB Rear Spar

A330 Flap Skins

B767 Winglet

J-UCAS Fuselage

CH53K Aft Fuselage

B787 Floor Grid

HondaJet Fuselage F35 Canopy

B787 Cabin Windows

V22 Fuel Tanks

B787 Anti-icing System

Full Engine MRO and support

Ariane 5 Exhaust nozzle

B787 Inner Core Cowl

A400M Engine Intake

B747-8 Exhaust

Engine structures Engine rotatives

GKN Aerospace – World class product portfolio

GKN Aerospace Proprietary and Confidential

Market drivers bringing opportunities

Fuel price

Noise

legislation

Increasing

passenger

travel in

emerging

markets

Higher fuel

efficiency

Better noise

attenuation

Increasing

demand for

aircraft

Engine

technology

changes –

hotter cores,

lighter fans

New materials

–composite

fans/cases,

titanium

replacing

composites

Airlines

renewing

fleets

sooner

GKN technology

composite fans and

cases for future large

aircraft

Strong position on

geared turbo-fan

Specialist titanium

engine structures for

next generation engines

Winglets and future

wings

Light weight composite

Increased new aircraft

sales

Drivers GKN opportunity Requirement Solution

GKN Aerospace Proprietary and Confidential

GKN Aerospace – well positioned for the future

GKN Aerospace Proprietary and Confidential

Next generation

composite processes

Advanced

metallic processes

Advanced process development

Transparencies

and coatings

Future product differentiation

Future wing

technologies

Advanced

fuselage

Nacelle, pylon

and exhaust

Engine

structures

Engine

rotatives

Ice protection

systems

Technology – Targeted innovation

GKN Aerospace Proprietary and Confidential

Welcome to

GKN Aerospace Filton

John Pritchard, CEO Aerostructures Europe

GKN Aerospace Proprietary and Confidential

Filton – A Century of aircraft manufacturing expertise

British & Colonial Aeroplane Company founded at Filton – Bristol Boxkite first

aircraft manufactured

2,000 aircraft built at Filton.: Bristol fighter, Bulldog, Blenheim, Scout,

Bristol Aeroplane Company formed

Factory doubles in size to become largest aircraft factory in the world

2008

1980

1960

1945

1910

1939

Beaufighter first flight.

Concrete runways installed

Over 52,000 employees on payroll

Brabazon Airliner first flight

Britannia first flight

Concorde

British Aerospace – BAe 146 fuselage production, Tornado components

A310 Trailing Edge

A320 Wings

A321 Fuselage section

A330 / 340: major sub-assemblies

F1-11 refurbishment

A380 Fixed Trailing Edge

GKN Aerospace Proprietary and Confidential

GKN Aerospace Filton – What We Do Today

Sales: £387m

Workforce: >1,800

Programmes:

Large Civil: Airbus A320 family, A330, A380,

Boeing 787

Military Transport: A400M

Business Jet: Dassault Falcon 5X

Military Fast Jet: Joint Strike Fighter

Filton Engineering Centre established

Over 200 design and engineering specialists

Additive Manufacturing Centre

Horizon Project

EcoHVP

2009

Today

GKN Aerospace Proprietary and Confidential

Major Assembly and Integration:

Wing Box

Leading Edge

Trailing Edge

Flight control surfaces

Machined Structural Components

Ribs

Gear ribs

Pintle Fitting

Advanced Systems

Fuel

Hydraulic

Pneumatic

Anti-Ice and Bleed Air

Key Capabilities

GKN Aerospace Proprietary and Confidential

New Customers

Joint Strike Fighter

Dassault

Boeing

Triumph

Facilities

> £30M capital investment since 2009

£30M projected over next 3 yrs (~70% on increasing capacity)

Filton Engineering Centre established

New technology investment – Linear Friction

Welding & Additive Manufacture

People

Safety

Employee engagement

Education and Community support

Apprenticeship programmes – supporting the site

infrastructure & ensuring we are fit for the future

GKN Filton – A Growing Business Investing in the Future

GKN Aerospace Proprietary and Confidential

What is Additive Manufacturing?

Traditional machining removes material to create parts

Machined from solid - high waste levels

Design constrained by machine capability

Additive Manufacture creates parts layer by layer – 3D printing

Only uses the material you need - less waste

Design no longer constrained by conventional manufacturing processes

Allows design for functionality

A revolutionary set of technologies – not evolutionary

Phased introduction is implicitly required

Secondary derivative structure before primary optimised

Need to pin variables to gain acceptance

Process and material are now linked like never before

Big challenge to the industry in evaluation

How to certify

New and novel QA techniques required

GKN Additive Manufacturing

GKN Aerospace Proprietary and Confidential

Site Tour

Integrated Machining Facility

A380 Fixed Trailing Edge

Additive Manufacturing Centre

Welcome to GKN Aerospace Western Approach

Steve Colebrook

10th February 2015

2

Safety – GKN Core Value

• Please stay with your host at all times

• Remain within designated gangways whilst on production floor

• PPE rules to be respected at all times

• Keep hands-off raw material and cured carbon

• No Test Fire Alarm schedule for today

• Emergency Exits are clearly identified, remain with your host and follow

them to the Muster point

Have a Safe and Enjoyable visit

3

GKN Western Approach

• £170M invested in new state-of-the-art composite wing structures

manufacturing and assembly facility

• Over 30,000m2 of floor space

4

Advancing GKN Capabilities on A350XWB

Western Approach – GKN’s Centre of Excellence for major composite primary structure components

First Advanced Fibre Placement spar manufacture – largest composite part in GKN

First FTE automated moving assembly system

Fully integrated product teams working closely with customer and supply chain

5

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

6

Spar Process Flow

Goods In

Advanced Fibre

Placement

Transfer to

Cure Tool

Autoclave

Cure Router

To

Assembly

Mandrel

Preparation

Paint

Non Destructive

Testing Rib-Post Assy

7

Assembly Process Flow

Spar

and

Details

Despatch

Load to Jig

Spar

Integration

IRS 5 Axis Drill

MRS & ORS Robot

Drill

Bolt & Assemble

Digital Scan Joint Robotic drill &

Integrate

Move

8

Integration Jig – Port & Stbd

9

FTE in Jig Customer

10

Wing Static Test

11

A400M Atlas

12

ATL Manufacture

13

A400M Spar Manufacture

14

A400m Stiffeners – Composite Details

15

Tour of Western Approach

Visits to:

Advanced Composites Centre of Excellence

Automated Assembly Facility

Thank you for your visit