Gkn Brochure Final 2013

GKN ENGiNEEriNG that movEs thE world

Group ovErviEw

GKN: Group overview 2 ENGiNEEriNG that movEs thE world

CoNtENts

Engineering that moves the world 3Global engineering 4Focused technology 5Operational excellence 6Strong customer relationships 7Growth markets 8Delivering to our markets 9– GKN Driveline 10– GKN Powder Metallurgy 11– GKN Aerospace 12– GKN Land Systems 13Contacts 14

all group financial data in this document relates to 2012 unless otherwise stated


ENGiNEEriNG that movEs thE world

GKN is a global engineering group – we design, manufacture and service systems and components for the world’s manufacturers.

we drive the wheels of hundreds of millions of cars…

we deliver the power to move earth and harvest crops…

we help thousands of aircraft to fly…

and we make essential components for industries that touch lives across the globe.

Every day at GKN…


Global ENGiNEEriNG

GKN is a truly global business with factories, service centres and offices in over 30 countries across five continents.

This strong global presence positions us well to serve our international customer base and creates a platform from which we can access fast-growing markets. It enables us to build and sustain close relationships with market-leading customers, helps optimise our position in supply chains and in developing new technologies in partnership with customers wherever they are across the world.

Employees by region 20121 Europe (excluding UK) 37%

2 Americas 29%

3 Rest of world 22%

4 UK 12%

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sales by region 20121 Europe* 47%

2 Rest of world 15%

3 Americas 38%

*of which a sizable proportion is re-exported to Asia and the Americas.

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A press at GKN Sinter MetalsGraduate scheme member managing inventory at GKN Land Systems


FoCusEd tEChNoloGy

GKN delivers innovative technology that helps our customers to stay ahead in their markets and helps us maintain our competitive edge, ensuring we can remain in higher value markets.

We work with our customers to develop new technology, driven by global trends such as the low-carbon agenda, electrification, urbanisation and population growth.

Across GKN we develop and deploy the technology needed to meet these challenges and we have particular expertise helping to deliver:• Lightweight components

and systems• Electro-mechanical

equipment• Fuel efficient systems

Probing the A400m spar to check material condition prior to machining

Final automated quality check at GKN Powder Metallurgy

Product design at GKN Driveline


opEratioNal ExCEllENCE

At the heart of GKN is a strong culture of operational excellence.

Innovative engineering and lean manufacturing skills enable us to produce high quality components and systems that are efficient, sustainable and cost effective for our customers. And it helps us to deliver on time all around the world.

By constantly looking to improve our people, processes and products, we deliver superior value to our stakeholders.

Every day, GKN driveline buys 10 million parts from over 1,000 suppliers in more than 40 countries. we make over two million components at 45 sites globally, with a default rate of less than 0.001%. and we ship more than 300,000 parts to some 200 different customer locations.

GKN aerospace produces composite wings spars using state of the art carbon fibre fabrication techniques. these spars are 27 metres long with a tolerance of approximately the depth of two sheets of paper.

GKN powder metallurgy manufactures around six billion parts per year for more than 3,000 customers at over 30 manufacturing locations on five continents.

Automated tape laying machine working on the manufacture of an A400M wing spar at GKN Aerospace

Parts for shock absorbers following the sintering process at GKN Powder Metallurgy, BonnConstant Velocity Joints manufactured by GKN Driveline


stroNG CustomEr rElatioNships

top 10 global customers 20121 VW Group

2 EADS (Airbus)

3 Ford

4 GM Group

5 Renault Nissan Group

6 Fiat Chrysler

7 Boeing

8 Tata Group

9 United Technologies

10 Toyota Group

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Other customers

Based on our global presence, strong technology and culture of quality manufacturing, we build and maintain strong relationships with key global equipment manufacturers and OEMs.

We work in partnership to develop innovative solutions that meet their needs and our global footprint means we can manufacture our high-quality products and systems in close proximity to our customers wherever they are in the world.

To help our customers, we have developed strong technology leadership in key areas:• Driveline and all-wheel drive systems• eDrive and electro-mechanical capabilities • Lightweight composite and metallic aerostructures• Aero engine systems and components• Advanced design for components made

using powder metallurgy• Power management

2012 sales by customer

Measuring the lead angle on a fan hub at GKN Land Systems


Growth marKEts

GKN is focussed on serving three growing global markets where our unique attributes create value for our customers and our shareholders

Global light vehicle production2012 81.5m

2013e 82.8m

2014e 87.4m

2015e 92.9m

2016e 97.0m

2017e 100.4m

boeing 2012 market outlook2011 19,890

2031 39,780

world population growth2010 6.9bn

2020 7.7bn

2030 8.3bn

2040 8.9bn

2050 9.3bn

Automotive

Global automotive production of more than 80 million units this year will keep on growing. some 40% of these vehicles will have GKN components on them. and an increasing number will be all-wheel drive, where GKN is the market leader. in addition, fuel efficiency and weight savings require cleverly designed powder metal components – where GKN is, again, the market leader.

Aerospace

in civil aerospace, boeing and airbus are forecasting that between 28,000 and 34,000 new single-aisle and wide-bodied aircraft will be required globally over the next 20 years. GKN, already a leader in composite aerostructures, is now, with the addition of volvo aero, a leader in engine components and systems, with a position on most major civil aerospace platforms.

Land Systems

Growth in the agricultural, construction, mining and industrial machinery markets is driven by the ever increasing population, which feeds the need for more food, increased urbanisation and increases commodity consumption. GKN supplies industrial power management components and systems that enhance the efficiency of equipment used to fulfil this growing demand.

2012

81.5m

2017e

100.4m

2011

19,890

2031

39,7802010

6.9bn

2050

9.3bn

Source: IHS Automotive Source: Boeing Source: UN World Urbanisation Prospects


dElivEriNG to our marKEts

GKN Driveline

a world leading supplier of automotive driveline systems and solutions, including all-wheel drive.

GKN Aerospace

a leading first tier supplier to the global aviation industry focussing on aerostructures, engine systems and products and specialty products.

GKN Land Systems

a leading supplier of technology-differentiated power management solutions and services to the agricultural, construction, industrial and mining sectors.

GKN Powder Metallurgy

the world’s largest manufacturer of sintered components, predominantly to the automotive sector.

Approximately 48,000 people work in GKN companies and joint ventures around the world. Together we use our footprint in over 30 countries, harnessing our technology and our considerable manufacturing resources, to supply the highest quality systems, structures, components and services.

our operationsWe have four operating divisions: GKN Driveline and GKN Powder Metallurgy that focus on the automotive market; GKN Aerospace; and GKN Land Systems. Every division is a market leader, each outperforming its markets, giving unrivalled expertise and experience in delivering cutting-edge technology and engineering to our global customers.

sales: £3,236 millionEmployees: 22,350

sales: £874 millionEmployees: 6,600

sales: £1,775 millionEmployees: 11,300

sales: £933 millionEmployees: 5,650


products• Constant velocity jointed systems including CV joints and sideshafts.

• All-wheel drive (AWD) systems including propshafts, couplings and final drive units.

• Trans-axle solutions including open, limited slip and locking differentials and electronic torque vectoring products.

• eDrive systems including electric rear axles and transmissions.

strategyOur strategy is to leverage our market leading presence and superior technology to:

• provide innovative driveline systems and solutions, supporting developing market trends for more fuel efficient vehicles;

• increase our business in high growth regions; and

• serve the needs of strategic customers through a market leading global footprint.

GKN drivEliNE

sales by region of origin1 Europe £1,196m

2 North America £898m

3 Japan £418m

4 South America £217m

5 China £297m

6 India £79m

7 Other £131m

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sales by product group1 CVJ Systems £1,976m

2 AWD Systems £974m

3 Trans-axle Solutions £201m

4 eDrive Systems £15m

5 Other £70m

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As a global business serving the world’s leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline products and systems – for use in the most sophisticated premium vehicles, that demand complex driving dynamics, to the smallest ultra low-cost cars.

Employees22,350

Sales£3,236 million

Testing an eDrive gearbox at GKN Driveline


GKN powdEr mEtallurGy

products• Metal powders.

• Sintered components for engines and transmissions, as well as pumps, bodies and chassis, and compressors.

• Sintered bearings and filters.

• Metal injection moulded components.

• Soft magnetic components for use in electric motors.

• Sintered components for numerous industrial applications.

strategyOur strategy is to exploit powder metal technology, working closely with our customers to develop ‘design for powder metal’ applications to:

• meet the rapidly developing requirements for high efficiency engines, advanced transmission applications, weight reduction and evolving emissions standards; and

• expand the business in high-growth markets, supporting customers globally.

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 for engines, transmissions, and body and chassis applications. GKN Sinter Metals also produces a range of components for industrial and consumer applications.

sinter metals sales by region of origin1 Hoeganaes £149m

2 GKN Sinter Metals – Americas £348m

3 GKN Sinter Metals – Europe £306m

4 GKN Sinter Metals – Rest of world £71m

sales by product type1 Sintered Components – automotive £637m

2 Sintered Components – industrial £88m

3 Hoeganaes – metal powder £149m

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3Employees6,600

Sales£874 million

3D machine for measuring electrodes at GKN Sinter Metals


GKN aErospaCE

products• Integrated aerostructures, including wing/empennage and flight control surface

assemblies and fuselage structures.

• Fixed and rotating propulsion products for aircraft engines, fan cases, engine components, exhaust systems and nacelles.

• Transparencies including specially coated cockpit and cabin windows.

• Niche products such as ice protection, fuel systems and flotation devices.

strategyOur strategy is to focus investment in core market technology development and application to:

• exploit our strong positions on existing programmes for new aircraft platforms, and pursue long-term contracts on selective high-growth and long-running platforms;

• deploy new technologies for future commercial and defence aircraft, to improve fuel efficiency, reduce emissions and minimise the environmental impact of aviation;

• expand into adjacent markets with similar product technologies and manufacturing capabilities; and

• expand our global footprint.

sales by market1 Civil 64%

2 Military 36%

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sales by product type1 Aerostructures £998m

2 Engine components and sub-systems £652m

3 Special products £125m

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GKN Aerospace is a world leading global first tier supplier of airframe and engine structures, components, assemblies and transparencies to a wide range of aircraft and engine prime contractors and other first tier suppliers. It operates in three main product areas: aerostructures, engine structures and systems, and niche products.

Employees11,300

Sales£1,775 million

Automated Fibre Placement machine working on the manufacture of a A350 XWB rear wing spar section at GKN Aerospace


GKN laNd systEms

sales by market1 Agriculture £366m

2 Automotive £210m

3 Industrial £250m

4 Construction & mining £107m

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sales by business1 Powertrain Systems and Services £219m

2 Wheels & structures £333m

3 Power Management Devices £381m

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products• Electro-mechanical power management devices such as electromagnetic brakes,

engineered flexible couplings, clutches, driveshafts and gear technology.

• Sensors, actuators and controls.

• Single and multi-piece steel and aluminium wheels.

• Structures and chassis systems.

• Aftermarket parts and remanufacturing for passenger cars, commercial trucks, agricultural and construction vehicles, and industry applications.

strategyOur strategy is to be a global leader in high technology power management solutions to the world’s original equipment manufacturers on a platform of integrated powertrain systems and services, including:

• developing capability in integrated electro-mechanical systems;

• expanding the business for existing products into new markets through increased intelligent engineering; and

• improving customer performance by offering safe, efficient and reliable power management, together with increased electrification and use of lightweight structures.

GKN Land Systems is a leading supplier of technology differentiated power management solutions 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.

Employees5,650

Sales£933 million

Continuous flow production at GKN Land Systems


GKN CoNtaCts

Registered head office

GKN plc PO Box 55 Ipsley House Ipsley Church Lane Redditch Worcestershire B98 0TL

Tel +44 (0)1527 517715 Fax +44(0)1527 517700

www.gkn.com

Registered in England No. 4191106

General enquiries: [email protected] relations: [email protected] media: [email protected] Corporate social responsibility: [email protected] Careers: [email protected] Company secretary: [email protected]

Gkn Brochure Final 2013

Documents

gkn sinter

gkn powder

gkn land systems

gkn aerospace

group overview

wheel drive

niche products

gkn driveline