Welcome to GKN Aerospace Filton and Western Approach

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Welcome to GKN Aerospace

Filton and Western Approach

Charles Paterson | SVP Business Development and Strategy

Nick Waters | CFO

Philip Swash | CEO Europe and Special Products Group

GKN Aerospace

$3.5 billion International Aerospace enterprise

35 sites, 12,000 people

Marcus Bryson

CEO

GKN Aerospace

GKN Aerospace

North America

GKN Aerospace

Europe

GKN Aerospace

Engine Systems

Aerospace North America

Aerospace Europe & Special Products Group

Aerospace Engine Systems (Volvo Aero)

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GKN Aerospace – Making things fly

Lead in chosen markets

Building stronger strategic relationships

New customers

Leverage global footprint

Develop more business in Asia and Americas

Extend global value chain

Customer proximity

Technology driving margin

Operational excellence

Sustain above market growth

Innovation in key products

Process innovation

Partnering with customers on unique technologies

Improve safety performance

Class leading cost, quality, delivery

Fully implement Lean in whole value chain

Values – walking the talk

Increasing share with current customers

Partnering on new programmes

Bringing new technologies to market

Successful acquisitions

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Excellent customer relationships

Globalise our business

Deliver customervalued innovation

Safe, lean operations

17% CAGR achieved

2005-2013

GKN Aerospace – Markets and customers

Market

Business

Mix

Sector

Customer Base

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

GKN Aerospace – World class product portfolio

Aerostructures

53% of Sales 2012*

Wing Fuselage

Engine structures

42% of Sales 2012*

Nacelle and

Pylon

Engine Systems and Services

Engine structures Engine rotatives

Special products

5% of Sales 2012*

Transparencies and Protection

Systems

J-UCAS Fuselage

A380 Fixed Trailing Edge

B747-8 Exhaust

B787 Anti-icing System

A350XWB Rear Spar

CH53K Aft Fuselage

A400M Engine Intake

V22 Fuel Tanks

A330 Flap Skins

B787 Cabin Windows

B787 Floor Grid

B787 Inner Core Cowl

Full Engine MRO and support

B767 Winglet HondaJet Fuselage

Note: * Engine Systems proforma 12 months of 2012

Ariane 5 Exhaust nozzle

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F35 Canopy

Well balanced portfolio

Sales by market 2012

Military

Commercial

30%

Customer sales E2013

70%

Military split

US

Europe

87%

13%

Note: Engine Systems proforma 12 months of 2012

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Market outlook

Large commercial aircraft – record order backlog (8,500 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

World passenger traffic growth 2012 – 2032

Aircraft production 2003 to 2022

Source: Airbus c 25% military

Notes: (2013$) Source: Teal Group

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Market drivers bringing opportunities

Drivers

Fuel price

Noise legislation

Increasing passenger travel in emerging markets

Requirement

Higher fuel efficiency

Better noise attenuation

Increasing demand for aircraft

Solution

Engine technology changes – hotter cores, lighter fans

New materials

–composite fans/cases, titanium replacing composites

Airlines renewing fleets sooner

GKN opportunity

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

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Civil market dynamics – Positive trend

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

A350/B787: Production ramp-up A380/B747: stable

MRJ/C-Series/MS21: Market entry A330: Rate increase; 777/777X

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Military market – On the right platforms

F-35 JSF

Rate Readiness phase

A400M Atlas

Moving to production

F15

FMS

C130J

US multi-year and FMS

V22

Multi-year

F18 Super Hornet

Rate Stable

Blackhawk

US multi-year and FMS

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Next generation military platform opportunities

X-47B Unmanned Combat Air

System - Demonstrator

Heavy Lift Assault/Transport

Rotorcraft (CH-53K)

NewGen Trainer

(T-X)

Unmanned Carrier Launched

Surveillance & Strike (UCLASS)

Armed Aerial /Joint Multi-

Role Helicopter

Long Range Strike Mission

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

GKN Aerospace – well positioned for the future

Ship set values $m

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Technology – Targeted innovation

Future wing technologies

Advanced fuselage

Future product differentiation

Nacelle, pylon and exhaust

Engine structures

Engine rotatives

Transparencies and coatings

Ice protection systems

Next generation composite processes

Advanced metallic processes

Advanced process development

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

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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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

Key drivers to medium term margin progression

• Volvo integration

• A350XWB – exit development phase, ramp-up

• B787 – production ramp-up

• F35 – production ramp-up

• Technology insertion in new platforms

• Cost base management

• Lean deployment throughout value chain

• Military budgets - C130J, C17

• Customer price pressure

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

GKN Aerospace summary

Growth c.2% above market

Good position on existing and new commercial programmes

On the right military platforms

Margin range

11% to 13%

GKN technologies bringing customer value

Balance between partnerships and long-term agreements

Lean deployment throughout value chain

Business performance

Strong cashflow

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ROIC

>20%

Capital allocation

Effective make or buy

Requires time to recover

Volvo Aero and new programme investments

Welcome to

GKN Aerospace Filton

June 2013

Filton – A Century of aircraft manufacturing expertise

1910

British & Colonial Aeroplane Company founded at Filton

– Bristol Boxkite first aircraft manufactured

1949

First flight of the Brabazon

1960’s & 1970’s

Concorde

146 Regional Jet Fuselage

– fully equipped and tested

Tornado machined components

A310 trailing edge

1980’s & 1990’s

First A321 fuselage section delivered

Airbus A330/340 major sub-assemblies, Leading edge & trailing edge

Outer wing box

2000’s

A380 components and trailing edge assembly

A400M components, leading and trailing edge

Today - GKN Aerospace Filton

Manufacture of major sub-assemblies and components for every Airbus aircraft

Dassault wing moveables design build package

JSF machined components

Other customers include Rolls Royce, Cobham, BAE Systems

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GKN Aerospace Filton – Overview

Sales: £350m

Workforce >1,750 including >100 Design

Centre Engineers

Facilities: 105,000sqm

Programmes:

Large Civil

Military Transport

Biz Jet

Military Fast Jet

Major Assembly

& Integration

Wing Box

Leading Edge

Trailing Edge

Machined Primary Structural

Components

Gear Ribs

Pintle Fitting

Rib Centre of Excellence

Structural Sub-

Assembly

Flight Control Surfaces

Shroud Box

Fixed Shroud

Wing

Systems

Fuel

Anti-Ice

Bleed Air

Pneumatics

Hydraulics

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Key Strategic Goals

Facility Investment

£23M capital investment

Filton Engineering Centre established

New Technology investment

Industrial Relations

Establish GKN identity

Revised working practices

Extended Customer Base

Increased to 8 customers

Design & Build work packages

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GKN AEROSPACE EUROPE – Metallics Centre of Excellence

Assembly

GKN specialises in the design and manufacture of large complex Aircraft structures. We apply the latest generation of automation to new customer programmes and seek to continuously improve our current product range.

We support a wide range of fixed & rotary wing programmes across civil, business jet, military fast jet and transporter platforms.

Product Expertise Key Processes

Integrated Aerostructures: incl Leading & Trailing Edge, Wing

Box, Flight Control Surfaces &

Airframe Assemblies

Structural sub-assemblies: incl D-Nose, Shroud Box, Fixed

Shroud, Aft Pylon Fairings, Door

Frames & Nacelle structures

Automated Spar Drilling & Fettling

Automated Riveting & Fastening

Determinate Assembly

Interchangeablility (ICY)

Laser Tracking

Robotic Assembly

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GKN AEROSPACE EUROPE – Metallics Centre of Excellence

Complex machined components

GKN capabilities are recognized for its expertise in design and manufacture of high speed aluminium and hard metals machining.

Our products support a wide range of fixed & rotary wing programmes across civil, business jet, military fast jet and transport platforms.

Product Expertise Key Processes

Hard Metal incl Landing gear ribs, Pintle fittings, Catcher brackets, Flap tracks, Pylon fittings

Soft Metal incl wing tank ribs,

Wing tank ribs, Leading and

Trailing edge brackets, Track ribs,

A-frames, Rib posts, access panels

5 Axis machining

Automated NDT

Robotic finishing

000

Co-ordinate measurement

In house programming in NCL,

CATIA & CADDS 5

Automated treatments

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GKN AEROSPACE EUROPE – Metallics Centre of Excellence

Complex fabricated components

GKN Aerospace is a world-class supplier to the aerospace industry, manufacturing a wide range of precision pipes, ducts and complex fabricated components.

Our products support a wide range of fixed & rotary wing programmes across civil, business jet, military fast jet and transport platforms.

Product Expertise Key Processes

Aircraft systems:

Slat track cans, Ducting incl

NACA, Bleed air, Anti-ice, fuel and

Hydraulic pipes

Metal forming: incl Door beams, Wing brackets, Sub spars

2D & 3D laser profiling

Heat Treatment

Resistance welding

Electron Beam Welding

Fluid cell & Draw forming

Reverse engineering

Surface treatments

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3

Tour of Filton

Visits to:

Integrated Machining Facility (IMF)

A380 Trailing Edge Assembly

Thank you for your visit

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES JULY 2 2013

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