GKN Powder Metallurgy London Plant Hoeganaes Manufacturing Plant Sinter M. ... CAD FILE PART...

GKN Powder Metallurgy London

Peter Oberparleiter I CEO Powder Metallurgy I 6 May 2015

GKN POWDER METALLURGY, 6 MAY 2015 2

Agenda

Introducing GKN Powder Metallurgy

− We have travelled a long way in ten years

Sustaining our momentum

− Design for PM and geographic expansion

Future Growth

− Application of innovative technology

Lead in chosen markets

Leverage global footprint

Technology driving margin

Operational excellence

Sustain above market growth

Delivering the GKN strategy


World no.2 with

23% global share

World no. 1

18% global share

Introducing GKN Powder Metallurgy

GKN Hoeganaes - Powder production -

GKN Sinter Metals - Component manufacture -

11 million parts

produced daily

Many applications

280,000 tons of

powder per year

Industry leader: Vertically integrated powder to parts capability

Helical PM Pulley

for Electric Steering


Powder metallurgy products in automotive

21% of sales

transmission

components

27% of sales

engine

components

Engine

Variable Valve Timing

Components

Transmission

Planetary Carriers

Body & Chassis

Electric Power Steering

Components

Drivetrain

Differential Gears

(Forged PM) Engine

Start-Stop

Body & Chassis

Shock Absorber

Components


Market split and customer base

£916m total sales in 2014

Americas and Europe relatively

balanced

Opportunities to expand in

Asia-Pacific

Sinter Americas

41%

Sinter Europe

35%

Sinter Asia 8%

Hoeganaes 16%

GKN Powder Metallurgy Sales by sector

Customers - Diverse customer base -

3000 customers

>80% automotive

<20% industrial

Top 20 customers cover

ca. 60% of sales

£165m annualized new

and replacement

business in 2014

* Excludes intercompany sales

*


USA & CANADA

CHINA

EUROPE

Manufacturing Plant Hoeganaes

Manufacturing Plant Sinter M.

Corporate/Sales/Engineering Centre

4 2 12

Expanding global presence

2 5 8

BRAZIL

1

SOUTH AFRICA

1

1 1 2

JAPAN

1

7000 employees

Manufacturing in 9 countries

INDIA

2 1


Strong positions in powder and parts

GKN Sinter Metals Sinter market

GKN

18% Hoeganaes AB

QMP

Kobelco

JFE Steel Corporation

Strong technology

providers preferred

Growing opportunities

for global players

PM growth outperforms

automotive market

Drivers Market dynamics

GKN is market leader

Top 8 sinter companies

60% of the market

GKN is global no. 2

Top 5 powder manufactures

>80% of the market

GKN Hoeganaes Powder production

GKN

23%

Sumitomo

Hitachi

Fine Sinter

Porite

PMG Miba Metaldyne


2005 – 2014: Turnaround followed by growth

-10%

0%

10%

20%

30%

£0.0

£0.2

£0.4

£0.6

£0.8

£1.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

bill

ions

Sales Margin ROIC

-20%

0%

20%

40%

60%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GKN Growth Auto Market Growth

Restructured and delivering

operational efficiency

Design for PM enhancing

margin

Geographic expansion

Strong growth ahead of the

market


2005 – 2014: Turnaround followed by growth

Restructured and delivering

operational efficiency

Design for PM enhancing

margin

Geographic expansion

Strong growth ahead of the

market

ROIC

3% to 22%

GROWTH 4.5% CAGR

MARGIN 2% to 11%

Business

performance

Cash generation £302m in 5 years


Expanding geographic footprint


− Automotive trends driving Design for PM

− Benefits of powder-to-part integration

Process leadership and operational excellence

Sustaining momentum







INDIA

Today no. 1

Expanding geographic footprint

MEXICO

Under

consideration

CHINA

Today no. 7 2018 no. 2

Original plant moved

and expanded

Second plant onstream

Capacity in place to

increase sales 3x

current level by 2018

USA

Upgrading process

capability

Digitising shopfloor

Enhancing Design

for PM

Upgrading capability Building capacity in key Asian market


Energy efficiency Renewable energy Legislation

VVT

(CAM PHASING)

START/STOP

EPS (ELECTRIC

POWER STEERING)

ALUMINIUM

CARRIER 7+

TRANSMISSION

GEARS

Automotive trends driving Design for PM

VARIABLE VANE

PUMPS

Fuel efficient Electrification Light weight


Design for PM

Design and application of

products using the unique

characteristics of powder

metal

Parts which cannot be

made economically using

alternative technologies

Key to driving margin

Product CAGR 2015-2019

VVT

(Cam phasing)

4.5%

EPS

(Electric power

steering)

4.8%

Start/Stop 17.6%

Transmissions

7+ speeds

16.5%


Benefits of powder-to-parts integration

AncorTech Magnetics

Selecting the right powder ensures optimum product

Technically Enhanced Powder (TEP) delivers advanced products

• Sales in TEP increased by 15% in 2014

AncorTech High Density

ANCORBOND

AncorTech Lean Alloys

Powder Forge Powders

Steel & Low Alloy Powder

Incre

asin

g c

om

ple

xity


Operational excellence Programme management

Leading process

technology linked to

advanced data

management

Driven by GKN Lean

processes

Global programme

management

Continuous

improvement

Process technology Advanced data management

Process leadership and operational excellence

Advanced forming and

bionic tools

100% of EU

presses and

forges data-

linked 0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014

ppm


Advanced powders

Additive manufacturing

Hydrogen storage

Innovation


SMC/

eMOTORS

> £1bn

Horizon scan

GEARS

> £2bn

ADDITIVE

MANUFACTURING

> £5bn

HYDROGEN STORAGE

> £5bn

PM market today

EPS

VVT

Start/

Stop


Advanced powders

Technical qualities

give access to new

markets

• Automotive

• Medical

• Aerospace

• General energy

Drives margin

enhancement

Enhances product quality

and manufacturing

efficiency

Creates new

opportunities


Additive manufacturing

CAD FILE PART

TOPOLOGY

OPTIMIZATION

ATOMIZED AND GAS

ATOMIZED POWDERS

Design freedom

increases value

Unique expertise in

powder, product design

and manufacturing

Aerospace likely key

market


Hydrogen storage

HYDROGEN METAL HYDRIDE

STORAGE TANK METAL POWDER

COMPACT

HIGHLY REACTIVE & EASY

TO HANDLE MATERIAL

Safe and compact

storage for industrial use

Partnered with McPhy

Solid state

Effective challenger gas

and liquid storage

Gas tank 27 litre

700 bar

0oC

Liquid tank 14 litre

1 bar

-252oC

H2 metal hydride 12 litre

30 bar

20oC







• Industry leading powder and sinter company

• Expanding global footprint in Asia

• Design for PM

• Focus on growth product groups

• Continuous improvement

• Growing faster than automotive market

GKN Powder Metallurgy delivering the GKN strategy


A great business to be in

Innovative technology

Strong operations

No shortage of opportunities

GKN Powder Metallurgy

GKN Powder Metallurgy London

Peter Oberparleiter I CEO Powder Metallurgy I 6 May 2015


Cautionary statement

This presentation contains forward looking statements which are made in good faith

based on the information available at the time of its approval. It is believed that the

expectations reflected in these statements are reasonable but they may be affected

by a number of risks and uncertainties that are inherent in any forward looking

statement which could cause actual results to differ materially from those currently

anticipated. Nothing in this document should be regarded as a profits forecast.

Disclaimer

GKN Powder Metallurgy London Plant Hoeganaes Manufacturing Plant Sinter M. ... CAD FILE PART...

Documents

Transcript of GKN Powder Metallurgy London Plant Hoeganaes Manufacturing Plant Sinter M. ... CAD FILE PART...