Welcome to GKN-ACS ProprietarytotoGKN GKNAerospace Aerospace Proprietary ProprietarytotoGKN GKNAerospace Aerospace Proprietary 2 Business Portfolio & Focus in US Engine Products West Advanced Machine Structures Engine Products East Advanced Composite Structures Aerospace Structures Chem-tronics - CA PreMac - KS Cincinnati - OH Alabama St. Louis - MO Leader in fan cases & rings, engine structures Titanium machining & aluminum wing skin technology leader Electro-chemical milling of blades and vanes Integrated composite structures & assemblies Hard Metal Machining Orangeburg - SC Composite Structures Chem-milling & aviation repair Aircraft Subassembly ASTECH - CA Monitor - NY Welded honeycomb structures and fabrications Titanium machining technology leader FAA-145 repair station High Speed Aluminum Machining Manchester - CT Precision machining of fan blades and outer guide vanes San Luis Potosi Precision forgings Low cost fan blade machining & grinding N. Charlestown - NH Precision machining of fan blades and outer guide vanes Bandy - CA Hinge center Small Machined Ti and AL parts ANA Headquarters TX 3 3 HLU/AFP Aircraft Subassembly Structures - CT RTM Composites Development Muncie - IN Low cost machining and fabrication ProprietarytotoGKN GKNAerospace Aerospace Proprietary Mexicali Composites Low cost composite center Mexicali Subassembly Aircraft subassembly High Speed AL Machining Composites at GKN Aerospace Comprehensive Capabilities Design, Manufacture, Test and Certify Full Range of Technologies and Materials Hand Lay-up GEnx Composite Fan Case Automated Tape Laying Fiber Placement Filament Winding RTM And RFI 737 Blended Winglet Advanced Composite Manufacture and Bonding Complex Structure Assembly and Integration Turnkey Manufacturing Facilities RTM – Fan Platform Composite Research Centers Largest Composite Aerostructures Supplier in the World (non OEM) Page 4 Proprietary GKNAerospace Aerospace Proprietary totoGKN 4 A400M Composite Wing Spar Composite Structures Manufacturing Clean Rooms, Hand Layup, ATL, AFP Pattern Cutting/Machining Honeycomb Machining Fiber Placement Laser Ply Lay-up and Inspection Automated Drilling Center Bonded Composite/Metallic Assemblies Autoclave and Oven Cure Autoclaves Automated Drill and Trim NDI - AUIS RTM Inspection – Automated Ultrasonic Inspection System (AUIS) Coordinate Measurement Machines Fully Equipped M&P Laboratory Auto Tape Layers Filament Winding Complete Component Through Complex Assembly Fabrication Expertise Page 5 Proprietary GKNAerospace Aerospace Proprietary totoGKN 5 Tape Winding Integrated Assembly Manufacturing Work Cell Facility Layout Lean Initiatives Applied to Each Program Horizontal Stabilizer Engine Nacelle Dedicated Customer Assembly Areas Fully Integrated Products Part-to-Part Assembly Philosophy State of the Art Ergonomic Assembly Tooling Supporting Part-to-Part Process Fan Cowl Door Wing Trailing Edge 787 Floor Assembly Winglet Page 6 Proprietary GKNAerospace Aerospace Proprietary totoGKN 6 Strategic Outlook – GKN ACS GKN ALABAMA Workforce of 1000 employees Key capabilities Mid to Complex Composite Parts Assembly structures with increased level of automation Development of Out of Autoclave structures (Engine Components) Develop Engineering Composite Technology Center (Panels, Engine Components, Rotorblades) GKN SOUTH CAROLINA GKN COMPOSITES MEXICALI Workforce growth to 200 employees Key capabilities Hand Laminates Carbon/Kevlar/Glass Fabric Components delivery to GKN AL Leader in Composite Structures for the Aircraft and Engine Markets Workforce growth to 300 employees Key capabilities Manual Assembly, minimum overhead Large structures, equipment integration Business Jet Fuselages, Wings OEM Floors, Nacelles, Cockpits ProprietarytotoGKN GKNAerospace Aerospace Proprietary 7 Health and Safety Continuous Improvement focused on Think Safe! Campaign Significant improvements through the years No Loss Time Accident for the past 3+ million production hours TRR < 2.0, beating our target ProprietarytotoGKN GKNAerospace Aerospace Proprietary 8 Our ACS Safety Guidelines: Eye and Footwear PPE 100% of Factory Gloves and Hearing PPE As applicable in designated areas Stop, Look, Listen 100% of Factory X Use Pedestrian Doors 100% of Factory ProprietarytotoGKN GKNAerospace Aerospace Proprietary 9 Alabama Leadership Team VP and General Manager Daniele Cagnatel Director of Manufacturing Rich Rogoski Executive Assistant Donna Johnson Director of Bus. Dev. & IT Frank Greco Director of Quality Eric Baker Director of Engineering Richie Hodges Director of Supply Chain Jay Woodrow GM South Carolina Steve Pulliam Director of Finance Les Emanuel GM Composite - Mexicali Loren Engel Director of Programs Tony Garnett Director of Commercial Bus. Chelsea Mclaughlin Director of Continuous Improvement Rebecca Siers Director of Human Resources Michelle Alcathie ProprietarytotoGKN GKNAerospace Aerospace Proprietary 10 GKN ACS Background 1985 – Tallassee, Alabama site established by Sikorsky Aircraft to manufacture composite details for the Blackhawk helicopter 1990 – United Technologies (Sikorsky and P&W) formed the Dow-UT joint venture with Dow Chemicals 1998 – Dow-UT acquired by GKN Aerospace 1999 – Montgomery site opened for transition of major assemblies from Sikorsky 2000-2002 – Business volume doubled by moving work from the UK (Airbus, MRAS) and adding to customer base (Lockheed Martin, GE) 2003 - 2006 – Continued to grow business through new GE/Boeing, Lockheed Martin, and Airbus programs together with new manufacturing technologies 2007 GKN invested with GE on the Gen-x first all composite case and formed 2008- Awarded Development program on Honda Jet 2009 – Relocated the Montgomery Assembly in the Tallassee expansion 2012 – Opened two new manufacturing facilities Mexicali & Orangeburg, SC ProprietarytotoGKN GKNAerospace Aerospace Proprietary 11 Alabama Growth 960 980 980 970 877 761 Employees Employees $230 Employees $170 Employees $68 500 $150 $127 $85 Million Million 2003 2004 Million $214 $228 Million Million 2008 2009 Million Million Million 2005 2006 2007 2010 2011 Alabama Sales and Employment Growth ProprietarytotoGKN GKNAerospace Aerospace Proprietary Million Million 631 Employees $276 $250 Employees 529 Employees Employees Employees 840 Employees 12 2012 Market Segments and Key Platforms for Growth GKN ALABAMA / MEXICALI Composite Engine Components GE 90 (B777) GE CF6 (B767) GE Genx-1B (B787) P&W 4000/6000 Nacelle Cowlings Blocker Doors ProprietarytotoGKN GKNAerospace Aerospace Proprietary GKN ALABAMA / MEXICALI Composite Structure Components GKN ALABAMA / SC Assembly Structures Honda Fuselage Helicopter components and assemblies Honda Wings Commercial Aircraft Commercial Aircraft Assemblies Military Aircraft Rotorblades Integrated Assembly structures (equipped, heater elements etc.) 13 Customer Relationships Strategic Objectives Expansion of content with key existing customers Capture content with targeted customers (Boeing, RR, Airbus, Bell) Improve customer balance to reduce market risk & increase growth potential on the Commercial Business (Rolls-Royce / Boeing) Key Strong Existing Relationships Boeing Military Airbus Lockheed Martin GE Aviation Bell Helicopter Pratt & Whitney Hondajet Sikorsky Strategically Targeted Rolls Royce Boeing Commercial UTC Aerospace Systems ProprietarytotoGKN GKNAerospace Aerospace Proprietary 14 Market Growth GKN ACS is well positioned for growth Composite aircraft structures is forecasted to grow at a CAGR of 11.2% from 20112021. High Volume Hand Lay-up supports low costs and completive advantage Advance technology used for specific application only ProprietarytotoGKN GKNAerospace Aerospace Proprietary 15 GKN ASC South Carolina Launch Team Strategic Objective: Locate low cost assembly site near key customers to off-load OEM scope & accelerate growth Current Status 150,000 Sq. Ft. – New Facility – Production Ready 22 Acre site Dedicated site for complex assembly Facility production startup with Honeywell engine fan duct assembly Oct 2012 GKN SC HondaJet Fuselage and subassemblies occupy ~25% of current facility Qualification for CF6 Assemblies started with GE ProprietarytotoGKN GKNAerospace Aerospace Proprietary 16 GKN ACS Mexicali Strategic Objectives Strategic Objectives Low Cost Competitive Enabler to GKN Aerospace North America Offset Support to OEM’s Pursuit of Mexican Market Capacity Enabler to Alabama / ANA Growth Strategy Product Sikorsky components successfully transferred Qualification for GE: project plan in work, request for qualification initiated by end of Sept ProprietarytotoGKN GKNAerospace Aerospace Proprietary 17 GKN ACS - Alabama ~$280M 2012 sales ~1000 employees (non-union) Total of 380,000 square feet of manufacturing area Land to expand ~325 acres ProprietarytotoGKN GKNAerospace Aerospace Proprietary 18 ACS Core Competencies Design and build small to medium complex composite assemblies Sikorsky UH-60 Blackhawk Primary structure hybrid assemblies Lockheed Martin F-22 Raptor Composite fan case and acoustics assembly Systems installation Airbus Jetliners Low cost US supplier for core competencies GEnx Engine ProprietarytotoGKN GKNAerospace Aerospace Proprietary 19 Manufacturing Facilities Clean rooms/ hand lay-up with Laser Ply Projection (95th SF) Gerber cutting systems (3) for composite materials Two Gerber tables 60 ft long One Gerber table 45 ft long Autoclaves (8 each, largest is 15’ X 50’) ProprietarytotoGKN GKNAerospace Aerospace Proprietary 20 Manufacturing Facilities Two CNC Honeycomb machining GFM single cut tables CNC machining of parts ProprietarytotoGKN GKNAerospace Aerospace Proprietary 21 Manufacturing Facilities Quality Inspection Equipment 5-Axis Matec C-Scan Gantry System Matec configured C-Scan 2-D Tank System Meccasonics Submersion Ultrasonic Scan Tank (4) Coordinate Measurement Machines Fully Equipped M&P Laboratory Calibration Laboratory ProprietarytotoGKN GKNAerospace Aerospace Proprietary 22 Quality Assurance > Quality certifications/Approvals > ISO9001:2008 > AS9100-Rev. C > NADCAP - Composite & NDT > United Technologies ASQR-01 > Approved Supplier for Airbus, GE, Lockheed Martin > AS9102 - First Article Inspection (FAI) > Sikorsky Supplier Gold – “Awarded as Performing” > ISO14001:2004 > OHSAS 18001:2007 > Non Destructive Inspection > ASNT Level III Manager ProprietarytotoGKN GKNAerospace Aerospace Proprietary 23 The Lean Enterprise Model GKN Vision (BPE) (PrE) (PE) ProprietarytotoGKN GKNAerospace Aerospace Proprietary 24 Common Language – With Focus Area’s ProprietarytotoGKN GKNAerospace Aerospace Proprietary 25 Our Competence and Differentiator: Our People! ProprietarytotoGKN GKNAerospace Aerospace Proprietary 26 Moving forward with the strategic agenda – GKN ACS Lead in chosen markets Composite parts and structures in aircraft are forecasted to grow at CAGR 11.2% GKN ACS well positioned to capture the growth – cost competitive, motivated workforce Leverage global footprint Technology driving margin South Carolina facility for Large Assemblies Mexicali facility for low cost hand lay-up Out of Autoclave technologies Flexible manufacturing systems Operational excellence Lean Manufacturing system implemented as the operational model Sustain above market growth Increase Revenue stream by focussing on high volume and future growth platforms (787/NEO/737M) ProprietarytotoGKN GKNAerospace Aerospace Proprietary 27 ProprietarytotoGKN GKNAerospace Aerospace Proprietary