BoAML Global Industrials & EU Autos
Conference 2015
Kevin Cummings | 18th March 2015
A Tier 1 Supplier to OEMs in Aero, Auto and Land Systems markets
Global engineering group
GKN Aerospace
A leading first tier supplier to the
global aerospace industry.
Sales of £7.46 billion in 2014
51,400 people in more than 30 countries
GKN Driveline
The world leading supplier of
automotive driveline systems
and solutions.
2014 - Sales by division
Land Systems
(11%)
£776m
Other
(1%)
£94m
GKN Powder Metallurgy
One of the world’s largest
manufacturers of metal powder
and sintered components.
Driveline
(46%)
£3,444m
Aerospace
(30%)
£2,226m
GKN Land Systems
A leading supplier of engineered
power management products,
systems and services.
Powder Metallurgy
(12%)
£916m
All group financial data in this document relates to 2014 unless otherwise stated. Figures are presented on a management basis.
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
Our strategy
Four strong
divisions
Creating long-term
shareholder value
Five strategic
objectives
Lead in chosen
markets
2014 Group
Results
Growth target:
Above market
4%
organic
Growth
2014 Aerospace
Results
3%
organic
Leverage global
footprint
Technology driving
margin
Margin
BUSINESS
PERFORMANCE
Target: 20%
Group target:
8-10%
Operational
excellence
ROIC
17.7%
9.2%
Cash Flow
Sustain above
market growth
12.4%
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
Increasing cash flow,
EPS and dividends
17.7%
GKN Aerospace – at a glance
GKN Aerospace – a leading global tier one supplier
12,350 employees
35 locations
Airframe structures & assemblies
8 countries
Engine structures & assemblies
Transparencies, ice detection, floatation systems & fuel tanks
Sales: £2.23bn
GKN Aerospace
Sales by market 2014
GKN Aerospace
Sales by product 2014
£139m (6%)
Special products
27%
Military
£1,045m
(47%)
Aerostructures
£1,042m
(47%)
Engine components
and sub-systems
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
73%
Commercial
GKN Aerospace – world class product portfolio
Aerostructures
Global
#3
WINGS & FUSELAGE
47% of Sales 2014
Engine structures
Global
#2
ENGINE SYSTEMS & SERVICES
47% of Sales 2014
Special
Products
Global
#1/2
6% of Sales 2014
B787 Anti-icing System
B747-8 Exhaust
Engine structures
A380 Fixed Trailing Edge
B767 Winglet
V22 Fuel Tanks
Engine rotatives
A400M Engine Intake
A350XWB Rear Spar
B787 Floor Grid
B787 Cabin Windows
Full Engine MRO and support
J-UCAS Fuselage
F35 Canopy
Ariane 5 Exhaust nozzle
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
Technology – targeted innovation
Next generation wing
technology
Laminar flow
Smart structure with sensors
Integral electro thermal ice
protection
Future Product
Differentiation
Next generation engine
structures
Additive manufacturing
Multi-alloy
Robotically welded fabrication
Research &
Technology targets
- 20% less weight
- 10% drag
reduction
- Lower acoustic
emissions
Next generation airframe
structures
Advanced
Process
Development
Powder developed for additive
manufacturing
Structures designed for additive
process
Production additive equipment
qualified
Conventional vs additive
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
- 20% lower fuel
consumption
- 30% lower cost
GKN Aerospace - strong customer portfolio
GKN Aerospace
Sales by customer 2014
Other 22%
Airbus 21%
Spirit 3%
Honeywell 3%
UTC 13%
MTU 3%
Rolls Royce
4%
GE 13%
Boeing 12%
Snecma 6%
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
GKN Aerospace - well positioned for the future
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
Sustainable growth
Key Growth Drivers
Aerospace market
$bn
Airbus & Boeing order book at record
levels – 9 years of backlog
2.8%
CAGR
205
200
Well positioned on growth programs
195
-
190
A320 ceo/neo
A350
Boeing 737 MAX
JSF
2019: C$200bn
Aircraft sales
185
180
175
170
Declining programs
165
- C17 ended
- F18 reductions
- A330 reductions
160
2014
2015
2016
2017
2018
2019
Source: Teal data 2014
2015 outlook broadly flat – reflects program
phasing.
Program positioning supports above market
growth over the medium term.
Boeing 737 MAX
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
Airbus A350
F-35 Joint Strike Fighter
Summary
Well positioned to deliver sustainable growth
Aerospace market is growing with record backlogs
Strong customer portfolio
Technology driving new business wins
2015 revenues broadly flat due to program timing
Well established on growth programs
Additional growth potential through strategic, bolt-on
acquisitions – adding capability, market position and global
footprint.
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015
Disclaimer
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.
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BOAML GLOBAL INDUSTRIALS & EU AUTOS CONFERENCE 2015