gkn aerospace overview aerospace overview 3 analyst briefing – 4 may 2017 kevin cummings chief...

GKN Aerospace overview

Analyst briefing I Thursday 4 May 2017

The global technology partner to the aerospace industry

2

ANALYST BRIEFING – 4 MAY 2017

Kevin Cummings, Chief Executive Officer GKN Aerospace overview

3


Kevin Cummings Chief Executive Officer,

GKN Aerospace

Hans Büthker

Chief Executive Officer,

GKN Fokker

Mike McCann

Chief Executive Officer,

Engine Systems

Russ Dunn SVP

Engineering, Technology & Quality

Richard Oldfield SVP

Business Development & Strategy

John Pritchard CEO

Aerostructures Europe & Asia

Gavin Wesson SVP

Operations & Programmes

Will Hoy Chief Financial Officer

Rob Soen SVP

Supply Chain

Gordon Pitman SVP

Human Resources

Mike Grunza CEO

Aerostructures North America

Anna Keeling SVP

Commercial

Introduction to the Leadership Team

4


GKN Aerospace’s growth story

Our strategy has seen sales increase more than 400% since 2006 2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

£650m sales

£3.42bn sales

2006

Volvo Sheets Metal Inc

Filton Fokker

5


74% Commercial

26% Military

Sales by market

AM

19%

OE

81%

Airbus 19%

Boeing 12%

UTC 10%

GE 9%

Lockheed 7%

Safran 4%

Rolls-Royce 3%

Gulfstream 3%

Honeywell 3%

Others 30%

Sales by customer

Aerostructures 50% Engine

structures 36%

Special products 9%

Services, 5%

Sales by product

2016 sales: £3.42bn

18,000 employees

14 countries

4 R&D centres

GKN Aerospace: the global technology partner to the industry

AM

19%

OE

81%

6


Leadership in our chosen technologies

Aerostructures

Global

#2

Engine Structures

Global

#2

Electrical Wiring

Global

#3

Transparencies

Global

#2

Focused on leadership positions

Willingness to invest in premium platforms

Remain acquisitional

Divest non-core businesses

7


Market fundamentals remain strong

Backlog at near historic levels of around 8 years

− Anticipate manufacturing rates to outstrip orders over short-term

Customers predict total aircraft numbers to double by 2035***

* IATA

** Teal

*** Boeing Current Market Outlook 2016-2036

Defence spending

forecast to grow 2%

per annum over

next 5 years**

Air freight traffic

forecast to grow 4.1%

per annum to 2030*

Air passenger

traffic forecast to

grow 3.8% per

annum to 2030*

http://www.us.jll.com/united-states/en-us/news/news-specials/airport-hotels

8


Why we are winning

Customer-valued

technology

Strong leadership positions

Clear technology roadmap

Well-positioned on

growth platforms

Extensive content on growing

civil platforms

F-35 driving military growth

Global footprint to serve

our customers

Presence in growth regions

Investment in customer

adjacent facilities

Strong customer

partnerships

RRSPs are well-balanced

across their life cycles

Well-placed for growth

opportunities

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi43f6p3bPTAhWB7hoKHSwUC-IQjRwIBw&url=http://www.cnn.com/2014/02/12/travel/airbus-a350-singapore-airshow/&psig=AFQjCNE_vgPIC8m71RSGHfp2hdid8TrU5w&ust=1492801558860488

9


Hans Büthker, CEO – GKN Fokker Global leadership in aerostructures

10


Strong number 2 in structures with clear product focus

Wing edges

& moveables

Fuselage

assemblies

Nacelles

& components

Empennages

1

2

3

4

11



Fuselage assembly

and panels

Floor assembly

and boards

Wing edges

& moveables

Fuselage

assemblies

Nacelles

& components

Empennages

1

2

3

4

12



Outer wing box and

components

Flaps, ailerons,

spoilers and winglets

Leading edge

Trailing edge, spars

and overwing panels

Wing edges

& moveables

Fuselage

assemblies

Nacelles

& components

Empennages

1

2

3

4

13



Empennages

Movables

Leading edge

Wing edges

& moveables

Fuselage

assemblies

Nacelles

& components

Empennages

1

2

3

4

14



Nacelle integration

Engine lip skins

Wing edges

& moveables

Fuselage

assemblies

Nacelles

& components

Empennages

1

2

3

4

15


Unique portfolio of differentiating technologies

Composite leadership

Advanced thermoset processes

Lighter, stronger thermoplastics

Advanced metallics

AM to be transformative

Great opportunities for

technology insertion

Thermoplastic technology delivers lighter, stronger

composites for major aircraft structures

16


Materials & material

processes

Integrated approach from material technologies to major assemblies

Manufacturing

processes

Major components Major assemblies

Laboratory and demonstrators

Advanced research

AM powders

Metal/composite materials

Additive manufacturing

Advanced machining & milling

Configuration management

Automated assembly

Co-cured wing covers

Engine lip skins

Composite parts & sub assy

Metal parts & sub assemblies

Wing edges and movables

Fuselage panels

Engine housing structures

Empennages

17


Leading the way in electrification: today and tomorrow

GKN Aerospace is a global leader

− EWIS design and manufacture

− Anti-ice and ice detection solutions

Technology already on-board leading platforms

A Boeing 787 already collects 0.5 terabytes of

data per flight: demands will increase in future

Well-positioned for electrification

18


Our differentiating electrical wiring design management system

Unrivalled capability to lead the

way for more electric aircraft 3D Geometrical

Design

ERP

Electrical Content

Design

Construction

Design

Marking Routing Finishing Changes Testing

web based

BA

ND

-ITB

AN

D-IT

BA

ND

-ITB

AN

D-IT

Su

pp

ly C

hain

Desig

nM

an

ufa

ctu

rin

g

Unique system connects the dots in the aircraft

Integrated wiring design, manufacturing,

configuration management and customer support

Benefits

Lowest total cost

Full configuration control

Delivery first time right and on time

19


Well-positioned on growth platforms

Commercial

A350 XWB

737 MAX

A320neo

787

Bell 525

777X

Military

F-35 CH-53K B-21

Business Jets

Global 7000 / 8000

HondaJet

Falcon 5X G500, G600, G650

Regional

Ejet-E2 MRJ C Series

20


Underpinned by global footprint and expansion in key growth areas

Manufacturing locations worldwide

Build on Centres of Excellence

Proximity and cost efficiencies

National defence champions

Expand in Asia

Strong global play

North America

Europe

Asia

21


Mike McCann, CEO GKN Aerospace – Engine Systems Powering aircraft of the future

22


Global number 2 with comprehensive product portfolio

Fan Rotatives

Fan Statics

Turbine Exhaust

Booster / Compressor

1

2

3

4

23


Fan cases

Mount rings

Outer guide vanes

Wiring harnesses

Fan Rotatives

Fan Statics

Turbine Exhaust


1

2

3

4


24


Fan blades

Shafts

Spinners

Fan spacers

Fan Rotatives

Fan Statics

Turbine Exhaust


1

2

3

4


25


Compressor cases

Integrally bladed

rotors

Compressor discs

and spools

Compressor

blades

Fan Rotatives

Fan Statics

Turbine Exhaust


1

2

3

4


26


Turbine exhaust

structures

Nozzles and plugs

Turbine cases

Guide vanes

Turbine blades

Fan Rotatives

Fan Statics

Turbine Exhaust


1

2

3

4


27


World leaders in advanced metallic engine structures

A350 XWB Intermediate Compressor Case featuring

laser wire additive manufacturing technology

Increased AM adoption

Additive repair techniques

Bi-metallic fabricated structures

Next generation alloys

High speed, automated welding

Flight certified AM Technology Tomorrow’s lightweight metallics

Lightweight, fabricated assemblies with integrated

additively fabricated load bearing structures

28


Composite technology drives engine performance

GEnx composite fan case

Fully automated manufacturing

processes

High temperature resins

Thermoplastics

Integrally formed complex geometries

Hybrid structures and airfoils

Lighter, stronger integrated assemblies

Multiple fan module products Broader, more complex applications

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwiMv8id-8bTAhWL6xQKHROLBUQQjRwIBw&url=http://www.materialstoday.com/composite-industry/features/composites-get-in-deep-with-new-generation-engine/&psig=AFQjCNGvqP0gutJVHp6IXOL6GQjAk6NvUA&ust=1493462383674446

29


Development

phase

High volume

production

Low volume

production

Customer partnership growth and long-term investment

AFTERMARKET PHASE

PW1000G PW4000

LMS100

GP7000

CF6-80

A well-balanced portfolio of RRSPs 2016 portfolio engine sales mix

% RRSP

sales

47%

% LTA

sales

53% LM6000+ XWB CFM56

V2500

T900

LM6000

PW2000

LM1600

AM

only

Initial

production

GEnx

LM2500

30


Well positioned to power the world’s most advanced aircraft

Commercial

777X

737NG / MAX

A350XWB

A330ceo / neo

A320ceo / neo

787

747

A380

C-919

Irkut MC-21

Military

F-35

Saab Gripen

F-18E/F

F-15

F-16

Boeing P-8

C-130J

V-22

Regional and business jets

MRJ

Bombardier C Series

Bombardier Challenger 300

E175 / 195-E2

Embraer Legacy

Gulfstream G500 / G600

Space

Ariane 5

Ariane 6

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiUg-Ss9cHTAhWJBBoKHZWYD_kQjRwIBw&url=http://www.flythemrj.com/&psig=AFQjCNHpCx7MXcuyb81BV9WO-ozRM6RZiQ&ust=1493289043169099

31


Kevin Cummings, Chief Executive Officer Summary

32


GKN Aerospace in summary

Market leadership

Global scale

Great technology

Deliver operationally

and on acquisitions

Well positioned to continue growing above market

gkn aerospace overview aerospace overview 3 analyst briefing – 4 may 2017 kevin cummings chief...

Documents