Welcome to GKN Aerospace 23rd January 2014

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GKN Aerospace

$3.5 billion International Aerospace enterprise 35 sites, 12,000 people Kevin Cummings

CEO GKN Aerospace

Daniele Cagnatel

GKN Aerospace Aerostructures North America

Neil McManus

GKN Aerospace Europe and Special Products Group

Mike McCann

GKN Aerospace Engine Systems

Aerostructures North America Europe & Special Products Group Engine Systems

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Customer Base

Market

Sector

Business Mix

GKN Aerospace – Markets and customers

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Transparencies and Protection

Systems

Special products 5% of Sales 2012*

Nacelle and Pylon

Engine structures 42% of Sales 2012*

Engine Systems and Services Wing Fuselage

Note: * Engine Systems proforma 12 months of 2012

Aerostructures 53% of Sales 2012*

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

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30%

70%

Military

Commercial

Sales by market 2012 Customer sales E2013

Note: Engine Systems proforma 12 months of 2012

Well balanced portfolio

US 87%

Europe 13%

Military split

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Market outlook Large commercial aircraft – record order backlog (10,000 aircraft, >$1 trillion).

30,000 aircraft forecast to be delivered 2013 to 2032

Civil rotorcraft and large business jets – markets strengthening

Worldwide defence spending remains subject to budget cutbacks

Latest forecast growth rates – 2013 to 2018:

− Civil: 3% to 4% CAGR − Military: Flat near term; Future uncertain

Notes: (2013$) Source: Teal Group

Aircraft production 2003 to 2022

World passenger traffic growth 2012 – 2032

Source: Airbus

c 25% military

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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

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Civil market dynamics – Positive trend

A380/B747: stable, softening

A320: neo Launch; Rate increase B737: MAX Launch; Rate increase

MRJ/C-Series/MS21: Market entry

A350/B787: Production ramp-up

A330: Rate increase; 777/777X

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Military market – On the right platforms

F-35 JSF Rate Readiness phase

F18 Super Hornet Rate Stable

F15 FMS

C130J US multi-year and FMS

V22 Multi-year

A400M Atlas Moving to production

Blackhawk US multi-year and FMS

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Unmanned Carrier Launched Surveillance & Strike (UCLASS)

Long Range Strike Mission

Armed Aerial /Joint Multi-Role Helicopter

NewGen Trainer (T-X)

Heavy Lift Assault/Transport Rotorcraft (CH-53K)

X-47B Unmanned Combat Air System - Demonstrator

Next generation military platform opportunities

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GKN Aerospace – well positioned for the future

Ship set values $m

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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

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GKN technology is underpinning our future

New wing concepts − High performance structural

concepts − Laminar flow enabling technologies − Morphing structures Advanced materials and processes − Additive manufacture − Advanced welding & fabrication − Out-of-Autoclave curing High-rate automation − Robotic fibre placement − Automated pick & place − Rapid NDT

Creating a leadership position for the future

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Key drivers to medium term margin progression

• A350XWB – exit development phase, ramp-up

• B787 – production ramp-up

• F35 – production ramp-up

• Technology insertion in new platforms

• Cost base management & Global footprint

• Lean deployment throughout value chain

• Military budgets - C130J, C17

• Customer price pressure

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Capital allocation

Effective make or buy

Requires time to recover Volvo Aero and new programme investments

GKN technologies bringing customer value

Balance between partnerships and long-term agreements

Lean deployment throughout value chain

Good position on existing and new commercial programmes

On the right military platforms

Strong cashflow

GKN Aerospace summary

ROIC >20%

Growth c.2% above market

Margin range 11% to 13%

Business performance

GKN Aerospace Western Approach

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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

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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 GKNA (leveraging skills from the GKN Filton acquisition)

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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

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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

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Integration Jig – Port & Stbd

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FTE in Jig Customer

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A400M Atlas

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ATL Manufacture

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A400M Spar Manufacture

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Tour of Western Approach Visits to: Advanced Composites Centre of Excellence Automated Assembly Facility

Thank you for your visit