Driving Sustainable Growth
Sir Kevin Smith
Chief Executive
HALF YEAR RESULTS - six months ended 30 June 2011
Highlights
Market positioning and operating performance delivers strong
growth and improving profitability
Group sales increase 11%, trading profit up 22%, margin increases
by 80bps
Excellent progress in all four divisions
Automotive (Driveline and Powder Metallurgy) sales increase 13%
Land Systems sales up 24% and Aerospace offsets impact of F22
and C17 decline with civil programmes
New business and long-term contracts underpin future
organic growth
74% win rate on driveshafts and important wins in all-wheel-drive,
transaxle and eDrive products
$2.8bn of contract extensions and new awards in Aerospace
HALF YEAR RESULTS - six months ended 30 June 2011
2
Highlights
Important strategic projects brought to fruition
Getrag Driveline Products secures global leadership in all-wheel-drive
and strengthens eDrive systems
EVO Electric gives access to new electric motor technology
Stromag delivers new products and new markets to Land Systems
COMAC joint venture secures entry to Chinese market for Aerospace
Driving Sustainable Growth
HALF YEAR RESULTS - six months ended 30 June 2011
3
Results summary
Q1
£m
Q2
£m
H1 2011
£m
1,487
1,501
2,988
2,701
287
11%
119
128*
247*
202
45
22%
Trading margin
8.0%
8.5%
8.3%
7.5%
0.8pts
Profit before tax
107
116*
223*
175
48
(174)
(202)
Sales
Trading profit
Net debt
H1 2010 Change Change
£m
£m
%
*excludes £23m one-off impact from Hoeganaes incident at Gallatin USA
HALF YEAR RESULTS - six months ended 30 June 2011
4
Global light vehicle production
12.0
12.0
Americas
10.0
10.0
8.0
(m)
40.0
8.0
35.0
(m)
6.0
Global
45.0
Europe
6.0
30.0
4.0
4.0
2.0
2.0
0.0
0.0
H1
H1
H2
2010 actual - 19.4m
2011 forecast - 20.6m
12.0
Japan
10.0
10.0
8.0
8.0
25.0
20.0
H2
2010 actual - 16.1m
2011 forecast - 17.5m
12.0
(m)
15.0
10.0
5.0
China
0.0
(m) 6.0
(m)
6.0
4.0
4.0
2.0
2.0
0.0
H1
2010
H2
H1
2010 actual - 9.3m
2011 forecast - 8.0m
2011
2010 actual – 74.7m
2011 forecast – 77.7m
0.0
H1
H2
H2
2010 actual - 16.8m
2011 forecast - 17.6m
2010
2011
HALF YEAR RESULTS - six months ended 30 June 2011
5
Driveline
Subsidiaries & JVs
(underlying)
H1 2011
£m
H1 2010
£m
Increase
%
1,333
1,185
12
94
82
15
Sales
Trading profit
Driveline underlying sales increased £148m (12%) and trading
profit up £12m – 7.1% trading margin
Japan impacts profits by £12m and margin by 50bps
Change in light vehicle production and Driveline sales
40%
40%
40%
40%
30%
30%
30%
20%
30%
21%
20%
20%
20%
10%
10%
15%
20%
10%
0%
-10%
6%
7%
10%
4%
-4%
-20%
-30%
0%
0%
Americas
0%
Europe
Market (units)
HALF YEAR RESULTS - six months ended 30 June 2011
-40%
China
-31%
Japan
Driveline sales
6
Driveline
Driveshaft capacity expansion programme well underway
Phase 1 Changchun, China, plant open – Phase 2 completes early 2012 –
total 1m vehicle sets
New Pune, India, plant launched - 600,000 vehicle sets in two phases
Continuing success in new business capture
74% of available driveshaft business
Four new differential programmes
High speed propshaft and power transfer units in all-wheel-drive
Getrag acquisition strategically compelling and financially sound
All-wheel-drive the fastest growing vehicle segment 6-7% per annum
Power take-off unit
Final drive unit
Geared products
HALF YEAR RESULTS - six months ended 30 June 2011
7
Driveline
Getrag acquisition strategically compelling and financially sound
Strong operating base and balanced global footprint
2010 sales by region (£m) – geared products
Complementary customer portfolio
2010 sales by customer (£m) – geared products
400
250
200
Other
150
Ford
Land Rover
300
100
Volvo
50
200
0
North America
Europe
GKN
Getrag
Asia
100
Other
BMW
Fiat
Nissan
GM
Mitsubishi
0
Getrag
GKN
Secures global leadership in all-wheel drive systems and components
eDrive technology licence principally for Europe and North America
Transaction:
Consideration £280m
2010 revenues £380m EBITDA £50m
Completion expected September
HALF YEAR RESULTS - six months ended 30 June 2011
8
Driveline
eDrive systems – a priority area for development and growth
Programmes in production launch phase
PSA hybrid eAxle and eTransmission
Chrysler Fiat 500 eTransmission
Mitsubishi hybrid transmission
20 ongoing customer development programmes
eAxle and one and two speed eTransmissions
eTransmission
Japanese, Chinese, Indian and European applications
Getrag adds technology and three new major
customer programmes
eAxle
EVO Electric – technology for the future
Joint venture to manufacture electric motors based on Axial flux technology
GKN Driveline – global No 1 in the drivelines of today and tomorrow
HALF YEAR RESULTS - six months ended 30 June 2011
9
Powder Metallurgy
Gallatin incident had major impact on activities since May
Plant immediately closed and external safety experts called in for
full review
Progressively re-opened after upgrade of processes, facilities, procedures
and retraining of employees
Currently operating with 85% of capacity – full capacity available early
September
Customer demand satisfied from inventory and other powder suppliers
No line stoppages
Around £30m one off charge to P&L - £23m June, £7m in Q3
Insurance claim being pursued – first £10m is self-insured
HALF YEAR RESULTS - six months ended 30 June 2011
10
Powder Metallurgy
Subsidiaries & JVs
(underlying)
Sales
Trading profit
H1 2011
£m
H1 2010
£m
Increase
%
435
369
18
39
26
50
Powder Metallurgy sales up £66m (18%), trading profit up £13m –
trading margin 9.0%
Hoeganaes volumes up 4% and Sinter Metals sales increased 18%
Sinter £9m scrap steel surcharge increase fully recovered
Sinter Metals market outperformance and strong revenue growth in
major markets
Sales in India, China and Brazil increased by 25%
30%
30%
17%
20%
20%
16%
Market (units)
Powder Metallurgy sales
10%
6%
10%
4%
0%
0%
North America
HALF YEAR RESULTS - six months ended 30 June 2011
Western Europe
11
Powder Metallurgy
Expansion in Design for PM applications continue
Differential gear set for electronic locker – Ford
One-way clutch system for transmission – Mazda
Variable valve timing one piece combination engine sprocket - VW
Powder Metallurgy to continue to deliver strong growth and
improving margins
HALF YEAR RESULTS - six months ended 30 June 2011
12
Land Systems
Subsidiaries & JVs
(underlying)
H1 2011
£m
H1 2010
£m
Increase
%
444
356
25
39
18
117
Sales
Trading profit
Conditions continue to improve in all major markets – European
agriculture recovery in full swing
Sales up £88m (25%), trading profit up £21m – trading margin 8.8%
Power Management sales up 27%
Wheels and Structures up 36%
£129m
Aftermarket services up 8%
Sales by market
Commercial
vehicle and
passenger car
(+9%)
Industrial
(+41%)
£124m £89m
£49m
Construction
and mining
(+32%)
HALF YEAR RESULTS - six months ended 30 June 2011
£182m
£173m
Agriculture
(+26%)
13
Land Systems
Innovations in power management securing new business wins
high speed seven shaft configuration for LIEBHERR 30 tonne dumper
Auxiliary pump shafts for oil fracing equipment
Multiple military applications – Otokar AMRA, Patria AMW, Force Protection
Foxhound and Mowag Eagle
LIEBHERR
dumper
Pump shaft
for oil fracing
Foxhound Military
Vehicle
Goal to create a global leader in industrial power management
applications – from power source to power application
Clutch
Coupling
POWER
SOURCE
HALF YEAR RESULTS - six months ended 30 June 2011
Gearbox
Driveshaft
Brake
POWER
APPLIED
14
Land Systems
Stromag – a high quality addition to
Power Management business unit
Brings capabilities in brakes, flexible couplings
and sensors and strengthens position in clutches
Applications in existing markets (agricultural and
construction) and new markets (renewable energy
and metal processing)
Gears
11%
Stromag sales by
market (2011E)
Stromag products
– Wind Turbine application
Wind
20%
Other
industrial
32%
Metal
processing 10%
Cranes
15%
Offhighway
12%
Stromag sales by
region (2011E)
Transaction:
Consideration £174m
2011 projected sales £125m EBITDA £22m
Completion expected September
HALF YEAR RESULTS - six months ended 30 June 2011
Brazil,
India and
China
5%
USA
8%
Rest of
Europe
15%
Germany
46%
France
26%
15
Aerospace markets
Civil aerospace market fundamentals positive
Boeing and Airbus forecast 30,000 new aircraft required globally over next 20 years
Total backlog extended to over 7,300 aircraft
Airbus has stellar year; c900 aircraft orders so far and c1,200 A320 NEO since launch
Customer monthly production rate increases across civil programmes
H1 2011
Mid 2012
A320 family
34
40
A330 – 200/300
8
10
1.5
2
Boeing 747-8
0
2
Boeing 787
0
7
A380
HALF YEAR RESULTS - six months ended 30 June 2011
16
Aerospace markets
Defence aerospace
Forecasts of stability in US defence
budget under threat – JSF in spotlight
Incumbency and longevity of existing
programmes important
New multi-year extensions across
major programmes
F/A-18 Super Hornet - 4 years
F-15 Eagle - 7 years
C-130J Super Hercules - 5 years
C-17 transporter - 3 years
UH-60 Blackhawk - 5 years
A400M programme moves into low
rate production in 2012
HALF YEAR RESULTS - six months ended 30 June 2011
Base budget grows modestly FY 2011 – FY 2016
bn
$700
$600
Request
$500
$400
$300
$200
$100
$0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Source: US DoD February 2011
Real Growth
FY11-12
FY11-16
Average
CR
+3.6%
+1.0%
Request
-0.7%
+0.2%
17
Aerospace
Subsidiaries & JVs
(underlying)
Sales
H1 2011
£m
H1 2010
£m
Increase
%
723
718
1
80
79
1
Trading profit
Underlying sales up £5m (1%), profits up £1m, trading margin of 11.1%
Military revenues down - F-22 and C-17, higher civil sales – A320, A330
and Boeing 787
Major new business wins include:
Around $200m of new customer’s business won at Filton
Bombardier C-Series ailerons
Wing structures for Dassault business jet
Titanium structures and thrust struts for Boeing 787 and 747-8
Production contract for Hondajet composite fuselage
Around $2.8bn of contract extensions, new programme wins and work
scope expansions
HALF YEAR RESULTS - six months ended 30 June 2011
18
Aerospace markets
Joint venture with COMAC will position GKN for participation in
development of Chinese aerospace industry
Growing list of new aircraft programmes provides revenues and profits for
decades to come
A350
JSF
CH53K
A400M
C919
N/UCAS
B747-8
C Series
B787
A320 NEO
Business jets
With increasing civil build rates, solid platform in defence and new
programme positioning, GKN Aerospace is set for sustained growth
HALF YEAR RESULTS - six months ended 30 June 2011
19
Summary
Group continues to deliver strong growth and improving margins
Global positioning, order book strength and sector-leading
technologies support continuing market outperformance
Acquisition of Getrag Driveline Products and Stromag
strategically compelling and earnings enhancing
New partnerships with EVO Electric and COMAC provide
important building blocks for the future
Performing strongly and developing rapidly – GKN entering a
new phase
Driving Sustainable Growth
HALF YEAR RESULTS - six months ended 30 June 2011
20
Driving Sustainable Growth
Bill
BillSeeger
Seeger
Finance
FinanceDirector
Director
HALF YEAR RESULTS - six months ended 30 June 2011
H1 2011 performance
Sales – strong above market growth in Automotive
(Driveline and Powder Metallurgy) and Land Systems
Margins – progressive improvement
Strong return on invested capital
Positive free cashflow – investing to sustain growth
Interim dividend declared – 2.0p per share
Driving Sustainable Growth
HALF YEAR RESULTS - six months ended 30 June 2011
22
Results summary
Sales
Trading profit
Trading margin (%)
Profit before tax
Earnings per share (p)
Free cashflow
ROIC (%)
Net debt
H1 2011
£m
H1 2010
£m
Change
Change
%
2,988
2,701
287
+11%
247
202
45
+22%
8.3%
7.5%
0.8% pts
223
175
48
11.8p
9.6p
2.2p
25
107
(82)
18.1%
13.8%
4.3% pts
Jun 2011
£m
Dec 2010
£m
Change
£m
(174)
(151)
(23)
Note: Earnings measures exclude Gallatin impact (see next slide)
HALF YEAR RESULTS - six months ended 30 June 2011
23
Gallatin impact
Sales
Trading profit
Trading margin %
Profit before tax
Earnings per share
H1
2011
Reported
£m
Gallatin
£m
2011
Adjusted
£m
2,988
-
2,988
224
23
247
7.5%
0.8%
8.3%
200
23
223
10.9p
0.9p
11.8p
Separately identified in the segmental analysis
£23m charged to trading profit – includes cost of responding to
customer obligations and plant rectification measures
H1 cashflow was £3m
HALF YEAR RESULTS - six months ended 30 June 2011
24
Group overview
Sales
Trading profit
Other
1%
£444m
+24%
£1,333m
+12%
Driveline
45%
Land
Systems
15%
Group
£2,988m
+11%
Aerospace
24%
£723m
-1%
Powder
Metallurgy
15%
Other
1%
£39m
+105%
Driveline
37%
Land
Systems
15%
Group
£247m
+22%
Aerospace
32%
£435m
+15%
£94m
+15%
Powder
Metallurgy
15%
£39m
+50%
£80m
-
HALF YEAR RESULTS - six months ended 30 June 2011
25
Group overview
Sales by origin
Europe:
All divisions contribute to growth
£1,432m
+15%
£197m
-3%
Japan
7%
£285m
+13%
Asia
9%
Europe
48%
Group
£2,988m
+11%
Americas
36%
Americas:
Strong automotive production;
Land Systems’ markets recover
Military programme reduction
Asia:
China and India automotive
demand up
£1,074m
+7%
HALF YEAR RESULTS - six months ended 30 June 2011
26
Driveline
Trading performance
Sales - £m
Trading profit - £m
Margin %
Return on invested capital %
H1 2011
H1 2010
1,333
1,189
94
82
7.1%
6.9%
16.1%
12.1%
£420m
+3%
Sales by origin
Americas
28%
Asia/
Japan
32%
Europe
40%
HALF YEAR RESULTS - six months ended 30 June 2011
Sales up 12% (£144m)
Market outperformance in all regions
Regional sales split consistent with 2010
Margin 7.1% … progressive
improvement; Japan impact estimated
0.5% pts
£376m
+19%
£537m
+15%
27
Powder Metallurgy
Trading performance
Sales - £m
H1 2011
H1 2010
435
378
Trading profit - £m
Margin %
Return on invested capital %
39
26
9.0%
6.9%
15.7%
8.0%
Sales up 15% (£57m)
Strong sales growth across all regions
North America sales growth reflects
increased domestic OEM volumes;
minimal exposure to Japanese OEMs
Margin 9% - momentum from
2010, movement into target range
Europe
41%
£180m
+18%
Sales by origin
£205m
+11%
HALF YEAR RESULTS - six months ended 30 June 2011
North
America
47%
Asia/SA
12%
£50m
+22%
28
Land Systems
Trading performance
Sales - £m
Trading profit - £m
Margin %
Return on invested capital %
H1 2011
H1 2010
444
359
39
19
8.8%
5.3%
24.2%
6.2%
£95m
+19%
Sales up 24% (£85m)
Regional sales growth reflects:
Strong agricultural recovery (41%
of sales)
Improving activity in construction,
mining and industrial (31% of sales)
Margin of 8.8% - market positions
and restructuring benefit support
acceleration into target range
Americas
21%
Sales by origin
£334m
+25%
£15m Asia
+28% 4%
Europe
75%
HALF YEAR RESULTS - six months ended 30 June 2011
29
Aerospace
Trading performance
H1 2011
H1 2010
723
734
80
80
Margin %
11.1%
10.9%
Return on invested capital %
22.5%
24.4%
Sales - £m
Trading profit - £m
Sales £723m … margin 11.1%
Civil 58% up from 53% - Military 42%
down from 47%
Civil sales growth expands Structures
Europe
North America programme run downs
decrease military sales
ROIC reflects A350 investment
£100m
(8)%
Engine
Products
14%
Sales by segment
Structures
Europe
46%
£334m
+8%
HALF YEAR RESULTS - six months ended 30 June 2011
Structures
US
33%
Special
Products
7%
£51m
+2%
£238m
(11)%
30
Joint ventures
H1 2011
£m
H1 2010
£m
Change
%
189
174
+9%
26
23
+13%
13.8%
13.2%
Interest and taxation
(5)
(4)
Share of post-tax earnings
21
19
Sales
Trading profit
Trading margin
Includes Driveline’s Chinese JVs, Emitec, Chassis Systems and other smaller JVs
Sales growth from automotive market
recovery
Americas
5%
£10m
+43%
Driveline China up 20%
Europe
25%
Emitec up 22%
Japanese JV stake sold
HALF YEAR RESULTS - six months ended 30 June 2011
£132m
+5%
Asia
70%
£47m
+15%
31
Trading margins
Q1
2011
%
Q2
2011
%
H1
2011
%
Target
range
%
Driveline
7.4
6.7
7.1
8-10
Powder Metallurgy
9.2
8.7
9.0
8-10
Aerospace
9.1
12.9
11.1
10-12
Land Systems
8.2
9.4
8.8
7-10
Group
8.0
8.5
8.3
8-10
HALF YEAR RESULTS - six months ended 30 June 2011
32
Tax update
H1 2011
FY 2010
Book tax rate
16%
11%
Cash tax rate
15%
13%
Recognition of deferred tax assets continues
£48m recognised in H1 – US focused
Unrecognised deferred tax asset balance £421m
Utilisation shields cash tax paid
Guidance: book tax rate 15-20%; cash tax 13-15%
HALF YEAR RESULTS - six months ended 30 June 2011
33
Operating cashflow
H1 2011
£m
H1 2010
£m
198
179
96
101
EBITDA
294
280
Working capital
(74)
(63)
(6)
18
(22)
(29)
(131)
(72)
(15)
(6)
46
128
Trading profit (subsidiaries)
Depreciation and amortisation
Customer advances
Strategic restructuring
Capital expenditure (tangible and intangible)
Other
Operating cashflow
HALF YEAR RESULTS - six months ended 30 June 2011
34
Working capital
Average working capital % of sales
12
11.1%
Holding flat
as volume
increases
11.5%
9.2%
% 9
6.8%
6.9%
6
FY 07
FY 08
FY 09
FY 10
H1 11
Year end
2007
Year end
2010
H1
2011
Working capital – segmental basis
£276m
£286m
£387m
Average working capital % of sales
11.1%
6.8%
6.9%
8.5x
9.4x
9.5x
Average productive inventory - turns
HALF YEAR RESULTS - six months ended 30 June 2011
35
Capital investment
H1 2011
£m
H1 2010
£m
Tangible expenditure
89
56
A350
19
8
108
64
Depreciation
92
96
Driveline forge capacity in Europe
Ratio (times)
1.2
0.7
H1 2011
£m
H1 2010
£m
Driveline productive capacity in
India and Americas
7
3
A350
16
5
Total intangible capex
23
8
4
5
131
72
Total tangible capex
Intangible expenditure
Amortisation
Total expenditures
HALF YEAR RESULTS - six months ended 30 June 2011
Key investments
Each division spending
approximately 1.0x depreciation
Aerospace A350 in UK
36
Free cashflow
H1 2011
£m
H1 2010
£m
Operating cashflow
46
128
Dividends received (joint ventures)
34
21
Interest (net)
(14)
(20)
Tax
(13)
(21)
Pension partnership distribution
(23)
-
Other
(5)
(1)
Free cashflow
25
107
(54)
-
Acquisitions, disposals and investments
3
(3)
Currency and other
3
(6)
(23)
98
Jun 2011
£m
Dec 2010
£m
(174)
(151)
Dividends paid to equity shareholders
Movement in net debt
Net debt
HALF YEAR RESULTS - six months ended 30 June 2011
37
Net assets
Jun 2011
£m
Dec 2010
£m
2,581
2,462
11
18
Post-employment obligations
(574)
(600)
Net debt
(174)
(151)
(19)
(42)
1,825
1,687
Trading profit (12 month)
456
411
Average invested capital
2,526
2,411
18.1%
17.0%
Net operating assets
Current and deferred tax
Derivative financial instruments
Net assets
Return on invested capital (ROIC)
Note: 2011 ROIC excludes Gallatin impact
HALF YEAR RESULTS - six months ended 30 June 2011
38
Dividends
Interim dividend per share
2011
2010
2.0p
1.5p
Interim dividend declared 2.0p/share
Return to traditional distribution ratio
Progressive policy to 2.5x EPS cover in medium term
HALF YEAR RESULTS - six months ended 30 June 2011
39
Summary
Broad sales growth in excess of markets
Margins and Return on Invested Capital improving
Acquisitions add strategic depth to Land Systems
and Driveline
Strong cashflow focus
Investing for sustainable growth
Driving Sustainable Growth
HALF YEAR RESULTS - six months ended 30 June 2011
40
Driving Sustainable Growth
Sir Kevin Smith
Chief Executive
HALF YEAR RESULTS - six months ended 30 June 2011
Outlook – GKN’s markets
Positive outlook for major markets
Some uncertainty around macro-economic conditions
Automotive forecasts global production increase of 4%
to 78m vehicles
Vehicle production in Japan expected to recover strongly in the
second half
Aerospace
Small reduction in US defence - growth in civil aircraft production
Land Systems markets should continue to improve
HALF YEAR RESULTS - six months ended 30 June 2011
42
Outlook – GKN’s performance
Driveline
Small increase in second half sales compared with first half
Increase in US and China – normal seasonal decline in Europe
Japan flat – already benefitted from customer recovery
Powder Metallurgy
Seasonal reduction in second half compared with first half
Aerospace
Small increase in second half sales compared with first half
Land Systems
Improving trend continues although returning to normal seasonal demand pattern
Stromag and Getrag Driveline acquisitions
Complete in September – small positive impact in 2011
Free cash flow positive – net debt increases due to
acquisition funding
HALF YEAR RESULTS - six months ended 30 June 2011
43
Outlook - summary
Second half Group sales – small seasonal reduction
compared with first half
Strong progress for 2011 as a whole
GKN growing strongly and developing rapidly – well placed
for sustained growth, margin improvement and strong free
cash flow generation
Driving Sustainable Growth
HALF YEAR RESULTS - six months ended 30 June 2011
44
Driving Sustainable Growth
Bill Seeger
APPENDIX Finance Director
HALF YEAR RESULTS - six months ended 30 June 2011
Income statement
Sales (subsidiaries)
Trading profit
Restructuring and impairment charges
Change in value of derivative and other financial instruments
Amortisation of non-operating intangible assets arising on
business combinations
H1 2011
£m
H1 2010
£m
2,799
2,536
198
179
-
(26)
18
(4)
(10)
(9)
UK Pension scheme curtailment
-
69
Gains and losses on changes in Group structure
4
(5)
Operating profit
210
204
Post-tax joint venture trading
21
19
Joint venture exceptional and non-trading items
(1)
Share of post-tax earnings of joint ventures
20
19
(19)
(23)
(9)
(19)
Net financing costs
(28)
(42)
Profit before tax
202
181
Profit before tax – management basis excluding Gallatin
223
175
Profit before tax – management basis including Gallatin
200
175
Interest (net)
Other net financing charges
HALF YEAR RESULTS - six months ended 30 June 2011
-
46
Trading profile
2011
Management basis
Sales
2010
H1
£m
H1
£m
H2
£m
FY
£m
2,988
2,701
2,728
5,429
1,333
1,189
1,244
2,433
Powder Metallurgy
435
378
381
759
Aerospace
723
734
717
1,451
Land Systems
444
359
340
699
Trading profit
247
202
209
411
Driveline
94
82
87
169
Powder Metallurgy
39
26
28
54
Aerospace
80
80
82
162
Land Systems
39
19
18
37
223
175
188
363
8.3%
7.5%
7.7%
7.6%
Driveline
Profit before tax
Margin %
HALF YEAR RESULTS - six months ended 30 June 2011
47
Impact of currency
Translational:
Effect on:
Average rate
H1 2011
H1 2010
Change
%
Sales
£m
Trading
profit
£m
US $
1.61
1.53
5.2
(43)
(4)
Euro
1.15
1.15
-
-
-
Real
2.64
2.74
(3.6)
5
1
Yen
132
140
(5.7)
13
1
10.56
10.43
12.4
(2)
-
(1)
(1)
(28)
(3)
Renminbi
Other
Impact (subs & JVs)
Translational impact on 2011 trading profit (including JVs):
1% move in euro = £0.8m; 1% move in US dollar = £0.6m
HALF YEAR RESULTS - six months ended 30 June 2011
48
Post-employment obligations – accounting deficit
UK
£m
Americas
£m
Europe
£m
ROW
£m
Total
£m
2,398
249
31
22
2,700
Liabilities
(2,454)
(393)
(384)
(43)
(3,274)
Net deficit
(56)
(144)
(353)
(21)
(574)
2,364
245
28
23
2,660
Liabilities
(2,448)
(399)
(369)
(44)
(3,260)
Net deficit
(84)
(154)
(341)
(21)
(600)
2,268
221
26
22
2,537
Liabilities
(2,483)
(410)
(362)
(46)
(3,301)
Net deficit
(215)
(189)
(336)
(24)
(764)
2011 half year
Assets
2010 full year
Assets
2010 half year
Assets
HALF YEAR RESULTS - six months ended 30 June 2011
49
Net financing costs
Net interest payable
Other net financing charges
Net financing costs
EBITDA/Net interest ratio (12 months)
H1 2011
£m
H1 2010
£m
(19)
(23)
(9)
(19)
(28)
(42)
14.2x
8.7x
Net interest benefit from lower overall borrowings and prior year
bond buy back
Other net financing charges reduced - UK pension actions and
asset returns
HALF YEAR RESULTS - six months ended 30 June 2011
50
Contacts
Bill Seeger
Finance Director
Guy Stainer
Investor Relations
Tel +44 (0) 20 7463 2382
guy.stainer@gkn.com
HALF YEAR RESULTS - six months ended 30 June 2011
51