Sir Kevin Smith
Chief Executive
GKN Capital Markets Day – 12 April 2011

Building Global Leaders
Delivering Sustainable Growth
Group Strategy
A premier global engineering and manufacturing company
Building a portfolio of market leaders
Building a “One Company” competitive culture the GKN WAY
GKN Capital Markets Day – 12 April 2011
2

Strategic Goals
Building a portfolio of market leaders with:
Leading market shares in chosen segments
Above market growth in all sectors
Margins at upper end of sector peers
Technology leadership - engineering for the future
GKN Capital Markets Day – 12 April 2011
3

Building Global Leaders - Driveline
Driveshaft to driveline repositioned globally
Unrivalled Capability – Global No 1 2010 Sales by Region
RoW
8%
East
Europe
8%
Japan
17%
India 3%
China
9%
Brazil
9% Mexico
7%
US
11%
West
Europe
28%
2010 Sales by Customer
Geely
Tata
Suzuki
Hyundai Kia
Honda
PSA
BMW
Mitsubishi
Other
Ford
Toyota
VW
Renault Nissan
Fiat Chrysler
GM
GKN Capital Markets Day – 12 April 2011
4

Building Global Leaders – Powder Metallurgy
From loss-making to revitalised technology leader
Sinter Metals Global No 1
Market Share
Extending the Boundaries
“Design for PM” – new automotive applications
Building the Future
Development Aero Engine
Components
Jet engine hot end turbine blades
Others
(below
2%)
43%
16%
GKN
7%
Sumitomo
6%
Fine Sinter
Power Steering
Dual Clutch Transmission
Start-Stop
Soft Magnetics
Variable Valve Timing
5
GKN Capital Markets Day – 12 April 2011

Building Global Leaders - Aerospace
A leader in composites and lightweight structures and a substantial part of the Group
No 1 in Europe Proven Competitiveness Strategic Partner
Sales and Margin Development Shipset Values
Major New Programmes
UCAS – Partnership with
Northrop Grumman
1.2
1.0
0.8
0.6
1.6
1.4
0.4
2003 2004 2005 2006 2007 2008 2009 2010
Sales Margin %
1%
13%
11%
9%
7%
5%
3%
9
8
7
6
5
4
3
2
1
0
Filton Acquisition Jan 2009
6
GKN Capital Markets Day – 12 April 2011

Building a New Global Leader
Land Systems – exploiting GKN capabilities
£700m Revenue £1.5bn Revenue
Power
Management
High
Performance
Structures
Aftermarket and Service
GKN Capital Markets Day – 12 April 2011
7

Technology Leaders – Engineering for the Future
Driveline Engine Composites Powder and Parts
ETV
Fan Case
Countertrack eTransmission
GKN Capital Markets Day – 12 April 2011
Modules
Blades
Turbo Charger
Assembly
8

Technology Leaders - Engineering for the Future
Global trends and drivers
Growing population, urbanization, diet change, global warming, changing global threats
Changing military environment
Scarcity of resources, land, water, oil
Increased mass transport
Renewable energy
9
GKN Capital Markets Day – 12 April 2011

Building a “One Company” competitive culture the GKN WAY
Securing advantage through competitive behaviour
Common ways of working and shared values
GKN Capital Markets Day – 12 April 2011
10

Building a “One Company” competitive culture the GKN WAY
Customer service
Manufacturing excellence
Global positioning
Continuous improvement
Outstanding leadership
GKN Capital Markets Day – 12 April 2011
11

Competitive Advantage – Building Capability
Customer service
Blue chip clients
Other
Customers
43%
Approx 1%:
John Deere
Suzuki
GE
PSA
Caterpillar
Rolls-Royce
EADS
8%
VW
7%
Boeing
6%
Renault Nissan
6%
Fiat Chrysler
5%
Ford
General Motors
4%
BMW
2%
Mitsubishi
Lockheed
Technologies
2% Toyota 4%
2%
Tata 4%
United
5%
2%
GKN Capital Markets Day – 12 April 2011
12

Competitive Advantage – Building Capability
Customer service
Blue chip service
Toyota Global Supplier Conference
25 th February 2011
GKN Driveline Japan received the Certificate of
QUALITY CIRCLE FORUM OF INDIA
COMPETITION - 2010
2010.09.05
GKN Driveline India Ltd
Global Supplier
Award July
2010
Best Engine Overhaul & Repair Shop
Best Engine Accessory Repair Shop
Award to be presented at MRO USA
April 2011
Boeing Performance Excellence Award 2010
Preferred Supplier 2010
13
GKN Capital Markets Day – 12 April 2011

Competitive Advantage – Building Capability
Customer service
Blue chip service
CMI
Employee Engagement
Strategy of the Year 2010
No Accident Record Award
3.9m hours
Tochigi Plant
The CBI People
Grand Prix Award &
People Engagement 2011
American Helicopter Society
Award St Louis
Ministry of Health, Labour and
Welfare - Japan
GKN Capital Markets Day – 12 April 2011
14

Building a “One Company” competitive culture the GKN WAY
Customer service
Manufacturing excellence
Global positioning
Continuous improvement
Outstanding leadership
GKN Capital Markets Day – 12 April 2011
15

Manufacturing Excellence
GKN Driveline PPM Trend 2005 – 2011 YTD
40
35
30
25
20
15
10
5
0
2005 2006 2007 2008 2009 2010 2011
YTD
Powder Metallurgy Cost of non Quality - % Sales
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2005 2006 2007 2008 2009 2010 2011
YTD
GKN Rockford Quality Performance 2006 - 2010 GKN Filton Concession Reduction Performance
2008 - 2010
5000
4000
3000
2000
1000
1200
1000
800
600
400
200
0
2006 2007 2008 2009 2010
0
2008 2009 2010
16
GKN Capital Markets Day – 12 April 2011

Building a “One Company” competitive culture the GKN WAY
Customer service
Manufacturing excellence
Global positioning
Continuous improvement
Outstanding leadership
GKN Capital Markets Day – 12 April 2011
17

Competitive Advantage
Global positioning
GKN Capital Markets Day – 12 April 2011
18

Building a “One Company” competitive culture the GKN WAY
Customer service
Manufacturing excellence
Global positioning
Continuous improvement
Outstanding leadership
GKN Capital Markets Day – 12 April 2011
19

Competitive Advantage
Continuous improvement
Value streams and continuous improvement
“Everyone sees the “Flow of Value”, their role and is involved in improving it and is able to fix it when it breaks down.
Development for all
Personal Development Planning at all levels
9%
65%
GKN Capital Markets Day – 12 April 2011
26%
Executive & Professional PDP
Employee PDP
No PDP tool used
20

Building a “One Company” competitive culture the GKN WAY
Customer service
Manufacturing excellence
Global positioning
Continuous improvement
Outstanding leadership
GKN Capital Markets Day – 12 April 2011
21

Competitive Advantage
Outstanding leadership
Leadership Development Ladder
Executive (Gui de - A to C)
Manager (
Guide - D,
E)
Leader of Tea ms (Guide - F and below)
Team Mem ber
Strategic leadership
UCLA – Leading for Value Creation
MCIL – Leading for Excellence
FED – Leading for Growth
GKN Capital Markets Day – 12 April 2011
22

Summary
Successful execution of strategy to build a premier global engineering and manufacturing company
Leadership positions in Driveline, Powder Metallurgy and Aerospace
– Land Systems now underway
Competitive “one company” culture in place
Restructuring has resulted in a strong operating footprint across global markets develop, deliver and continuously improve
All four Divisions delivering solid and improving performance
GKN well prepared for sustainable above-market growth
GKN Capital Markets Day – 12 April 2011
23

GKN Capital Markets Day – 12 April 2011