23 rd January 2014

GKN Aerospace
$3.5 billion International Aerospace enterprise
35 sites, 12,000 people
Daniele Cagnatel
GKN Aerospace
Aerostructures
North America
Neil McManus
GKN Aerospace
Europe and Special
Products Group
Mike McCann
GKN Aerospace
Engine Systems
Aerostructures North America
Europe & Special Products Group
Engine Systems
Kevin Cummings
CEO
GKN Aerospace
2

GKN Aerospace – Markets and customers
Market
Business
Mix
Sector
Customer Base
3

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
4
F35 Canopy

Well balanced portfolio
Sales by market 2012
Military
Commercial
30%
Military split
US
Europe
87%
13%
Note: Engine Systems proforma 12 months of 2012
70%
5
Customer sales E2013

Market outlook
Large commercial aircraft – record order backlog (10,000 aircraft, >$1 trillion).
30,000 aircraft forecast to be delivered
2013 to 2032
World passenger traffic growth 2012 – 2032
Civil rotorcraft and large business jets
– markets strengthening
Worldwide defence spending remains subject to budget cutbacks
Latest forecast growth rates –
2013 to 2018:
− Civil: 3% to 4% CAGR
− Military: Flat near term; Future uncertain
Aircraft production 2003 to 2022
Source: Airbus c 25% military
Notes: (2013$) Source: Teal Group
6

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
7

Civil market dynamics – Positive trend
A320: neo Launch; Rate increase B737: MAX Launch; Rate increase
A350/B787: Production ramp-up A380/B747: stable, softening
MRJ/C-Series/MS21: Market entry A330: Rate increase; 777/777X
8

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
9

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
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Long Range Strike Mission

GKN Aerospace – well positioned for the future
Ship set values $m
11

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
12

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
13

Key drivers to medium term margin progression
• A350XWB – exit development phase, ramp-up
• B787 – production ramp-up
• F35 – production ramp-up
• Technology insertion in new platforms
• Cost base management & Global footprint
• Lean deployment throughout value chain
• Military budgets - C130J, C17
• Customer price pressure
14

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
15
ROIC
>20%
Capital allocation
Effective make or buy
Requires time to recover
Volvo Aero and new programme investments

Advancing GKN Capabilities on A350XWB
Western Approach – GKN’s Centre of Excellence for major composite primary structure components
First Advanced Fibre Placement spar manufacture – largest composite part in GKN
First FTE automated moving assembly system
Fully integrated product teams working closely with customer and supply chain
17

A350 Fixed Trailing Edge Design
Outer Spar
Mid Spar
Inner Spar
3 Spars total over 27m in length with an accuracy of +/- 0.3mm
Total weight of spar carbon is 1230kg/aircraft
FTE assembly weighs 1800kg
The FTE is 7% of total wing weight and supports 10x its own weight
First “large Scale” assembly operation undertaken by GKNA (leveraging skills from the GKN Filton acquisition)
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Spar Process Flow
Goods In
Mandrel
Preparation
Advanced Fibre
Placement
Transfer to
Cure Tool
Autoclave
Cure Router
Non Destructive
Testing Paint
Rib-Post Assy
To
Assembly
19

Assembly Process Flow
Spar and
Details
Load to Jig
IRS 5 Axis Drill
MRS & ORS Robot
Drill
Move
Bolt & Assemble
Spar
Integration
Digital Scan Joint
20
Robotic drill &
Integrate
Despatch

Integration Jig – Port & Stbd
21

FTE in Jig Customer
Page 22
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A400M Atlas
23

ATL Manufacture
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A400M Spar Manufacture
25

Tour of Western Approach
Visits to:
Advanced Composites Centre of Excellence
Automated Assembly Facility
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