20 May 2015 | Guy Stainer | Investor Relations Director

A Tier 1 Supplier to the major OE manufacturers in Automotive,
Aerospace and Land Systems markets
Global engineering group
Sales of £7.46 billion in 2014
51,400 people in more than 30 countries
GKN Aerospace
A leading first tier supplier to the global aerospace industry.
2014 - Sales by division
Land Systems
(11%)
£776m
Other
(1%)
£94m
GKN Driveline
The 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. Aerospace
(30%)
£2,226m
Driveline
(46%)
£3,444m
Powder Metallurgy
(12%)
£916m
GKN Land Systems
A leading supplier of engineered power management products, systems and services.
All group financial data in this document relates to 2014 unless otherwise stated. Figures are presented on a management basis.
BERENBERG EUROPEAN CONFERENCE USA 2015
1

Four strong divisions
Five strategic objectives
Lead in chosen markets
Leverage global footprint
Technology driving margin
Operational excellence
Sustain above market growth
Creating long-term shareholder value
Growth target:
Above market
Growth
Margin
Group target:
8-10%
BUSINESS
PERFORMANCE
Cash Flow
Increasing cash flow,
EPS and dividends
ROIC
Target: 20%
BERENBERG EUROPEAN CONFERENCE USA 2015
2

Sales
£7,456m
£8,000m
£6,500m
£5,000m
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
PBT
£601m
£700m
£550m
£400m
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
Margin
9.2%
EPS
29.0p
11%
9%
8%
6%
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
30p
25p
20p
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
ROIC
17.7%
20%
18%
16%
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
Dividend
8.4p
10p
7p
4p
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
Free Cash
Flow
£234m
£400m
£200m
£0m
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
Net Debt
£624m
£1,000m
£500m
£0m
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
All group financial data in this document relates to 2014 unless otherwise stated. Figures are presented on a management basis.
BERENBERG EUROPEAN CONFERENCE USA 2015
3

12,350 employees
33 manufacturing locations
7 countries
Sales: £2.23bn
GKN Aerospace
Sales by customer 2014
GKN Aerospace is a leading global tier one supplier of airframe and engine structures, components, assemblies and transparencies to a wide range of aircraft and engine prime contractors and other tier one suppliers. It operates in three main product areas: aerostructures, engine components and sub-systems, and special products.
GKN Aerospace
Sales by product 2014
GKN Aerospace
Sales by market 2014
£139m (6%)
Special products
Other 22%
Airbus 21%
27%
Military
Spirit 3%
Honeywell
3%
MTU 3%
Rolls
Royce 4%
Snecma
6%
UTC 13%
Boeing 12%
GE 13%
£1,045m
(47%)
Aerostructures
£1,042m
(47%)
Engine components and sub-systems
73%
Commercial
4
BERENBERG EUROPEAN CONFERENCE USA 2015

Aerostructures
WINGS & FUSELAGE
47% of Sales 2014
Global
#3
Global
Engine structures
#2
NACELLE & PYLON ENGINE SYSTEMS & SERVICES
47% of Sales 2014
Engine structures
Special
Products
Global
#1/2
6% of Sales 2014
Transparencies and Protection
Systems
B747-8 Exhaust
A380 Fixed Trailing Edge
B767 Winglet
Engine rotatives
A350XWB Rear Spar
B787 Floor Grid
A400M Engine Intake
Full Engine MRO and support
B787 Anti-icing System
V22 Fuel Tanks
B787 Cabin Windows
J-UCAS Fuselage
Ariane 5 Exhaust nozzle
BERENBERG EUROPEAN CONFERENCE USA 2015
F35 Canopy
5

2014 Ship set values $m
BERENBERG EUROPEAN CONFERENCE USA 2015
6

Key growth drivers
Commercial (73% of sales)
− Strong position on existing programmes with increasing build rates from 2016/2017
− New programmes now set to ramp-up production
– Boeing 787, A350
Airbus A380
Boeing 737 MAX
Military (27% of sales)
− Ending of older military programmes (C17, F/A-18) will present a headwind before new programmes ramp up (JSF)
Airbus A350
F-35 Joint Strike Fighter
Good technology – aim to win new positions on growth programmes
Successful integration of Volvo Aero; good track record on acquisitions
BERENBERG EUROPEAN CONFERENCE USA 2015
7

25,650 employees
46 manufacturing locations
22 countries
Sales: £3.44bn
GKN Driveline is the world’s leading supplier of automotive driveline systems and solutions. As a global business serving the leading vehicle manufacturers, it develops, builds and supplies an extensive range of automotive driveline products and systems – for use in everything from the smallest low-cost car to the most sophisticated premium vehicle demanding complex driving dynamics.
AWD & eDrive
Systems
40%
GKN Driveline
Sales by product 2014
GKN Driveline
Sales by customer 2014
CVJ Systems
60%
Other, 24%
VW, 15%
Fiat
Chrysler,
11%
Mitubishi
Group, 4%
Toyota
Group, 5%
BMW, 6%
Tata Group,
6% GM Group,
9%
Ford Group,
Renault-
Nissan, 10%
10%
BERENBERG EUROPEAN CONFERENCE USA 2015
8

26%
Rest of world
GKN Driveline
Sales by region 2014
38%
Europe
36%
Americas
Global light vehicle production trend
96
93
87
90
99
102
104
Manufacturing plant
Joint Venture
Corporate office /
Engineering centre
2014 2015 2016 2017 2018 2019 2020
Source: IHS Automotive, February 2015
BERENBERG EUROPEAN CONFERENCE USA 2015
9

Leadership in all major product lines
BERENBERG EUROPEAN CONFERENCE USA 2015
10

Key growth drivers
CVJ – unrivalled global footprint and increasing global platforms
AWD – increased content per vehicle and broadening customer base
− China is a special market for AWD growth
Well positioned to outperform global markets - targeting 2% above
Maintain margin within the target range of 8% to 10%
BERENBERG EUROPEAN CONFERENCE USA 2015
11

6,900 employees
34 locations
10 countries
Sales: £916m
GKN Powder Metallurgy comprises GKN Sinter Metals and
Hoeganaes . GKN Sinter Metals is the world’s leading manufacturer of precision automotive sintered components as well as components for industrial and consumer applications. Hoeganaes is one of the world’s leading manufacturers of metal powder, the essential raw material for powder metallurgy.
GKN Powder Metallurgy
Sales by region 2014
Hoeganaes
16%
Sinter
Rest of world
8%
Sinter
Americas
41%
GKN Powder Metallurgy
Sales by customer 2014
Other
62%
Ford
9%
GM
6%
ZF 4%
Fiat Chrysler 4%
Hilite 4%
Schaeffler 3%
Borg Warner 2%
Linamar 2%
VW Group 2%
Means Ind 2%
Sinter Europe
35%
80% of sales to Automotive Sector
BERENBERG EUROPEAN CONFERENCE USA 2015
12

GKN Powder Metallurgy - accelerated trend towards design for PM
Key growth drivers
Fuel efficiency
Reduced emissions
Electrification
Weight and space saving
Global PM Market Share
Automotive products
P-Rotor Pump components Differential gears Torque converter
Magnetic clutches
Variable Valve Timing components
Electrical Power Steering Parts
BERENBERG EUROPEAN CONFERENCE USA 2015
13

Key growth drivers
Value of PM content per vehicle outgrowing market
− Continued market growth in Europe and North America with accelarated growth in India, Brazil and China
− Increasing penetration in industrial markets
Unique parts and powder position supports rapid exploitation of “Design for PM”
Additive layer manufacturing / 3D printing – complementary process and investing in high technology powders eg. alloyed tool steels, nickel based alloys, stainless steel and titanium
GKN Powder Metallurgy targets growth 2% above market with continued margin expansion
BERENBERG EUROPEAN CONFERENCE USA 2015
14

5,200 employees
36 locations
15 countries
Sales: £776m
GKN Land Systems
Sales by Region 2014
Asia, 3%
Americas,
21%
Europe,
76%
GKN Land Systems is a leading supplier of power management products and services. It designs, manufactures and supplies products and services for the agricultural, construction, mining and utility vehicle markets and key industrial segments, offering integrated powertrain solutions and complete in-service support.
GKN Land Systems
Sales by market 2014
Industrial
23%
Automotive
18%
Construction & mining 14%
Agriculture
45%
Other
62%
GKN Land Systems
Sales by customer 2014
John Deere 9%
Case New Holland 8%
Tata 5%
Caterpillar 4%
Claas 4%
Agco 3%
JCB 2%
VW 1%
Toyota Group 1%
Agri-Italia/Carraro 1%
15
BERENBERG EUROPEAN CONFERENCE USA 2015

Clutches
PTO shafts
Gearboxes
World no 1 global supplier of agricultural power take off shafts and high speed primary driveshafts
A leading global supplier of clutch and brake solutions
A leading global supplier of off-highway wheels
BERENBERG EUROPEAN CONFERENCE USA 2015
16

Key growth drivers
Continued “industrialisation” of agriculture and urbanisation provide good underlying market fundamentals
Leveraging customer relationships to increase content per vehicle
Geographic and product expansion
– China and North America
Exploit Group technology and develop market leadership in electro mechanical power management
Targeting organic growth above global market and margin range of
8-11% - currently below target due to depressed agricultural equipment markets
BERENBERG EUROPEAN CONFERENCE USA 2015
17

Well positioned to deliver sustainable growth
Delivering shareholder value through a balance of:
Growth
Growth in excess of the markets
Improving margins
Return on invested capital
Increasing cashflow and dividends
Financial
Metrics
Margin
Additional growth through strategic, bolt-on acquisitions - adding capability, market position and global footprint
Cash Flow
ROIC
BERENBERG EUROPEAN CONFERENCE USA 2015
18

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.
19
BERENBERG EUROPEAN CONFERENCE USA 2015