GKN Overview and introduction 25 February 2014 Updated – 03 Sept 2014 A Tier 1 Supplier to the major OE manufacturers in Automotive, Aerospace and Land Systems markets Global engineering group Sales of £7.6 billion in 2013 48,000 people in more than 30 countries GKN Driveline A world leading supplier of automotive driveline systems and solutions. 2013 - Sales by division Land Systems (12%) £899m Other (1%) £104m Driveline (45%) £3,416m Aerospace (30%) £2,243m GKN Aerospace A leading first tier supplier to the global aerospace industry. GKN Powder Metallurgy One of the world’s largest manufacturers of metal powder and sintered components. GKN Land Systems A leading supplier of engineered power management products, systems and services. Powder Metallurgy (12%) £932m All group financial data in this document relates to 2013 unless otherwise stated. Sales figures are presented on a management basis GKN OVERVIEW PRESENTATION 2014 1 Our strategy Four strong divisions Creating long-term shareholder value Five strategic objectives Lead in chosen markets Growth target: Above market Growth Leverage global footprint Technology driving margin Margin Operational excellence BUSINESS PERFORMANCE Group target: 8-10% ROIC Target: 20% Cash Flow Sustain above market growth GKN OVERVIEW PRESENTATION 2014 Increasing cash flow, EPS and dividends 2 Key financial metrics £9,000m Sales £7.6bn PBT £578m £7,000m £5,000m £750m £500m £250m £0m FY 2010 FY 2011 FY 2012 FY 2013 Margin 8.7% 9% FY 2010 FY 2011 FY 2012 FY 2013 ROIC 17.3% 8% 7% FY 2010 EPS 28.7p FY 2011 FY 2012 FY 2013 30p FY 2010 FY 2011 FY 2012 FY 2013 Dividend 7.9p 25p 20p 9p 6p 3p FY 2010 Free Cash Flow £346m 20% 18% 16% 14% FY 2011 FY 2012 FY 2013 £400m FY 2010 Net Debt £732m £200m £0m FY 2011 FY 2012 FY 2013 £1,000m £500m £0m FY 2010 FY 2011 FY 2012 FY 2013 FY 2010 FY 2011 FY 2012 FY 2013 All group financial data in this document relates to 2013 unless otherwise stated. Sales figures are presented on a management basis GKN OVERVIEW PRESENTATION 2014 3 GKN Aerospace – at a glance 11,700 employees 32 manufacturing locations Nine countries GKN Aerospace is a world leading global tier one supplier of airframe and engine structures, components, assemblies and transparencies to a wide range of aircraft and engine prime contractors and other tier one suppliers. It operates in three main product areas: aerostructures, engine components/sub-systems and special products. Sales: £2.24bn GKN Aerospace Sales by market 2013 GKN Aerospace Sales by product 2013 £114m Special products 27% Military £1,016m Aerostructures £1,113m Engine components and sub-systems 73% Commercial GKN OVERVIEW PRESENTATION 2014 4 GKN Aerospace - Strong customer relationships GKN Aerospace Sales by customer 2013 Other 19% Airbus 23% Lockheed 2% Spirit 3% Honeywell 3% UTC 13% MTU 3% Rolls Royce 4% Snecma 5% GKN OVERVIEW PRESENTATION 2014 Boeing 12% GE 13% 5 GKN Aerospace – World class product portfolio Aerostructures Global #3 WINGS & FUSELAGE 45% of Sales 2013 Engine structures NACELLE & PYLON 50% of Sales 2013 Global #2 ENGINE SYSTEMS & SERVICES Special Products Global #1/2 5% of Sales 2013 Engine structures B747-8 Exhaust Transparencies and Protection Systems B787 Anti-icing System A380 Fixed Trailing Edge B767 Winglet Engine rotatives V22 Fuel Tanks A400M Engine Intake A350XWB Rear Spar B787 Floor Grid B787 Cabin Windows Full Engine MRO and support J-UCAS Fuselage Ariane 5 Exhaust nozzle GKN OVERVIEW PRESENTATION 2014 F35 Canopy 6 GKN Aerospace - Well positioned for the future Commercial B737 / A320 HTF7000 A350 B787 A330 A380 Blackhawk Well positioned for the future V22 Military C130J A400M JSF CH53-K F/A-18 C17 1 2 3 4 5 6 7 8 Ship set values $m GKN OVERVIEW PRESENTATION 2014 7 GKN Aerospace - summary Key growth drivers Airbus A380 Commercial (73% of sales) − Strong position on existing programmes with increasing build rates from 2016/2017 Boeing 737 MAX − New programmes now set to ramp-up production – 787, A350 Military (27% of sales) − Ending of older military programmes (C17, F/A-18) will present a headwind before new programmes ramp up (JSF) Airbus A350 F-35 Joint Strike Fighter Good technology – aim to win new positions on growth programmes Successful integration of Volvo Aero; good track record on acquisitions GKN OVERVIEW PRESENTATION 2014 8 GKN Driveline – at a glance 24,000 employees 45 manufacturing locations 22 countries GKN Driveline is a world leading supplier of automotive driveline systems and solutions. As a global business serving the leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline products and systems – for use in the smallest ultra low-cost car to the most sophisticated premium vehicle demanding the most complex driving dynamics. Sales: £3.42bn GKN Driveline Sales by product 2013 GKN Driveline Sales by customer 2013 CVJ systems Other 18% AWD systems VW 15% Volvo Cars 4% Mitsubishi Group 4% Trans-axle solutions GM Group 12% BMW 4% eDrive systems Tata Group 5% Fiat Chrysler 11% Toyota Group 6% Other RenaultNissan 10% GKN OVERVIEW PRESENTATION 2014 Ford Group 11% 9 GKN Driveline - Truly global footprint GKN Driveline Sales by region 2013 27% Rest of world 37% Europe 36% Americas (Million vehicles) Global light vehicle production trend 85 87 90 94 98 100 102 Manufacturing plant Joint Venture Corporate office / Engineering centre 2013 2014 2015 2016 2017 2018 2019 Source: IHS Automotive, April 2014 GKN OVERVIEW PRESENTATION 2014 10 GKN Driveline - A complete driveline solution Leadership in all major product lines GKN OVERVIEW PRESENTATION 2014 11 GKN Driveline – summary Key growth drivers CVJ – unrivalled global footprint and increasing global platforms AWD – increased content per vehicle and broadening customer base − China is a special market for AWD growth Well positioned to outperform global markets − Targeting 2% outperformance relative to market Priority to enter margin target range of 8% to 10% GKN OVERVIEW PRESENTATION 2014 12 GKN Powder Metallurgy – at a glance c.7,000 employees 34 locations 14 countries GKN Powder Metallurgy comprises Hoeganaes and GKN Sinter Metals. Hoeganaes is one of the world's largest metal powder manufacturers and produces the metal powder that GKN Sinter Metals and others use to manufacture precision automotive components as well as components for industrial and consumer applications. Sales: £932m GKN Powder Metallurgy Sales by region 2013 GKN Powder Metallurgy Sales by customer 2013 Hoeganaes 16% Sinter Rest of world 8% Ford 10% GM 8% ZF 4% Sinter Americas 41% Other 64% Fiat Chrysler 4% Hilite 3% Linamar 3% VW Group 2% Bosch 2% Sinter Europe 35% 80% of sales to Automotive Sector GKN OVERVIEW PRESENTATION 2014 13 GKN Powder Metallurgy - Accelerated trend towards design for PM Key growth drivers Fuel efficiency Reduced emissions Electrification Weight and space saving Automotive products P-Rotor Pump components Differential gears Torque converter Global PM Market Share Variable Valve Timing components Magnetic clutches GKN 18% Other 35% Sumitomo 8% Fine Sinter 6% Hitachi 6% Porite 2% Mahle 2% Fed Mogul 2% Ningbo 2% Metaldyne 4% Schunk 2% Ames Stackpole 3% 2% Miba 4% PMG 4% Electrical Power Steering Parts GKN OVERVIEW PRESENTATION 2014 14 GKN Powder Metallurgy – summary Key growth drivers Value of PM content per vehicle outgrowing market − Continued market growth in Europe and North America with accelarated growth in India, Brazil and China − Increasing penetration in industrial markets Unique parts and powder position supports rapid exploitation of “Design for PM” Addititive layer manufacturing / 3D printing – complementary process GKN Powder Metallurgy targets growth 2%-3% above market with continued margin expansion GKN OVERVIEW PRESENTATION 2014 15 GKN Land Systems – at a glance c.5,400 employees 34 locations 15 countries GKN Land Systems is a leading supplier of engineered power management products, systems and services. It designs, manufactures and supplies products and services for the agricultural, construction, mining and utility vehicle markets and key industrial segments, offering integrated powertrain solutions. Sales: £899m GKN Land Systems Sales by Region 2013 GKN Land Systems Sales by market 2013 GKN Land Systems Sales by customer 2013 Asia, 3% John Deere 9% Industrial 23% Americas, 21% Other 62% Case New Holland 8% Tata 4% Caterpillar 4% Claas 4% Automotive 19% Agriculture 45% Agco 3% JCB 2% VW 2% Ford 1% Europe, 76% Construction & mining 13% GKN OVERVIEW PRESENTATION 2014 Agri-Italia/Carraro 1% 16 GKN Land Systems – integrated Powertrain components Clutches PTO shafts Gearboxes World no 1 global supplier of agricultural power take off shafts and high speed primary driveshafts A leading global supplier of clutch and brake solutions A leading global supplier of off-highway wheels GKN OVERVIEW PRESENTATION 2014 17 GKN Land Systems - summary Key growth drivers Continued “industrialisation” of agricultural and urbanisation provide good underlying market fundamentals Leveraging customer relationships to increase content per vehicle Geographic expansion – China and North America Exploit Group technology and develop market leadership in electro mechanical power management Targeting organic growth above global market; margin target range of 8-11% GKN OVERVIEW PRESENTATION 2014 18 GKN summary Well positioned to deliver sustainable growth Delivering shareholder value through a balance of: Growth in excess of the markets Improving margins Return on invested capital Increasing cashflow and dividends Additional growth through strategic, bolt-on acquisitions - adding capability, market position and global footprint GKN OVERVIEW PRESENTATION 2014 19 Disclaimer Cautionary statement This presentation contains forward looking statements which are made in good faith based on the information available to 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. GKN OVERVIEW PRESENTATION 2014 20