welcome to gkn · pdf filewelcome to gkn aerospace ... military commercial sales by market...

Welcome to GKN Aerospace Filton and Western Approach Charles Paterson | SVP Business Development and Strategy

Nick Waters | CFO

Philip Swash | CEO Europe and Special Products Group

2

INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES OCTOBER 2013

GKN Aerospace

North America

GKN Aerospace

Europe

GKN Aerospace

Engine Systems

GKN Aerospace

$3.5 billion International Aerospace enterprise

35 sites, 12,000 people Marcus Bryson

CEO

GKN Aerospace

Aerospace North America

Aerospace Europe & Special Products Group

Aerospace Engine Systems (Volvo Aero)

3


Lead in

chosen

markets

Excellent customer

relationships

Building stronger strategic relationships

New customers

Leverage

global

footprint

Globalise our business

Develop more business in Asia and Americas

Extend global value chain

Customer proximity

Technology

driving

margin

Deliver customer-

valued innovation

Innovation in key products

Process innovation

Partnering with customers on unique technologies

Operational

excellence

Safe, lean operations

Improve safety performance

Class leading cost, quality, delivery

Fully implement Lean in whole value chain

Values – walking the talk

GKN Aerospace – Making things fly

Sustain

above market

growth

Increasing share with current customers

Partnering on new programmes

Bringing new technologies to market

Successful acquisitions

17% CAGR achieved

2005-2013

4


GKN Aerospace – Markets and customers

Customer Base

Market

Sector

Business

Mix

http://www.honeywell.com/

http://www.pw.utc.com/vgn-ext-templating/v/index.jsp?vgnextoid=fa937b48ad2cb010VgnVCM1000000881000aRCRD

http://www.raytheon.com/

http://www.baesystems.com/index.htm

http://www.northropgrumman.com/index.html

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Transparencies

and Protection

Systems

Special products 5% of Sales 2012*

Nacelle and

Pylon

Engine structures 42% of Sales 2012*

Engine Systems and Services Wing Fuselage

Note: * Engine Systems proforma 12 months of 2012

Aerostructures 53% of Sales 2012*

A380 Fixed Trailing Edge

A350XWB Rear Spar

A330 Flap Skins

B767 Winglet

J-UCAS Fuselage

CH53K Aft Fuselage

B787 Floor Grid

HondaJet Fuselage F35 Canopy

B787 Cabin Windows

V22 Fuel Tanks

B787 Anti-icing System

Full Engine MRO and support

Ariane 5 Exhaust nozzle

B787 Inner Core Cowl

A400M Engine Intake

B747-8 Exhaust

Engine structures Engine rotatives

GKN Aerospace – World class product portfolio

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30%

70%

Military

Commercial

Sales by market 2012 Customer sales E2013

Note: Engine Systems proforma 12 months of 2012

Well balanced portfolio

US 87%

Europe 13%

Military split

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Market outlook

Large commercial aircraft – record

order backlog (8,500 aircraft, >$1

trillion).

30,000 aircraft forecast to be delivered

2013 to 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

Notes: (2013$) Source: Teal Group

Aircraft production 2003 to 2022

World passenger traffic growth 2012 – 2032

Source: Airbus

c 25% military

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Market drivers bringing opportunities

Fuel price

Noise

legislation

Increasing

passenger

travel in

emerging

markets

Higher fuel

efficiency

Better noise

attenuation

Increasing

demand for

aircraft

Engine

technology

changes –

hotter cores,

lighter fans

New materials

–composite

fans/cases,

titanium

replacing

composites

Airlines

renewing

fleets

sooner

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

Drivers GKN opportunity Requirement Solution

9


Civil market dynamics – Positive trend

A380/B747: stable

A320: neo Launch; Rate increase B737: MAX Launch; Rate increase

MRJ/C-Series/MS21: Market entry

A350/B787: Production ramp-up

A330: Rate increase; 777/777X

10


Military market – On the right platforms

F-35 JSF Rate Readiness phase

F18 Super Hornet Rate Stable

F15 FMS

C130J US multi-year

and FMS

V22 Multi-year

A400M Atlas Moving to production

Blackhawk US multi-year

and FMS

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Unmanned Carrier Launched

Surveillance & Strike (UCLASS) Long Range Strike Mission

Armed Aerial /Joint Multi-

Role Helicopter

NewGen Trainer

(T-X)

Heavy Lift Assault/Transport

Rotorcraft (CH-53K)

X-47B Unmanned Combat Air

System - Demonstrator

Next generation military platform opportunities

http://en.wikipedia.org/wiki/File:Sikorsky_S-97.jpg

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GKN Aerospace – well positioned for the future

Ship set values $m

13


Next generation

composite processes

Advanced

metallic processes

Advanced process development

Transparencies

and coatings

Future product differentiation

Future wing

technologies

Advanced

fuselage

Nacelle, pylon

and exhaust

Engine

structures

Engine

rotatives

Ice protection

systems

Technology – Targeted innovation

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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

15


Key drivers to medium term margin progression

• Volvo integration

• A350XWB – exit development phase, ramp-up

• B787 – production ramp-up

• F35 – production ramp-up

• Technology insertion in new platforms

• Cost base management

• Lean deployment throughout value chain

• Military budgets - C130J, C17

• Customer price pressure

16


Capital allocation

Effective make or buy

Requires time to recover

Volvo Aero and new

programme investments

GKN technologies bringing

customer value

Balance between partnerships

and long-term agreements

Lean deployment throughout

value chain

Good position on existing

and new commercial

programmes

On the right military

platforms

Strong cashflow

GKN Aerospace summary

ROIC

>20%

Growth c.2%

above market

Margin range

11% to 13%

Business

performance

Welcome to

GKN Aerospace Filton

June 2013

18

Filton – A Century of aircraft manufacturing expertise

1910

British & Colonial Aeroplane Company founded at Filton – Bristol Boxkite first aircraft manufactured

1949

First flight of the Brabazon

1960’s & 1970’s

Concorde

146 Regional Jet Fuselage – fully equipped and tested

Tornado machined components

A310 trailing edge

1980’s & 1990’s

First A321 fuselage section delivered

Airbus A330/340 major sub-assemblies, Leading edge & trailing edge

Outer wing box

2000’s

A380 components and trailing edge assembly

A400M components, leading and trailing edge

Today - GKN Aerospace Filton

Manufacture of major sub-assemblies and components for every Airbus aircraft

Dassault wing moveables design build package

JSF machined components

Other customers include Rolls Royce, Cobham, BAE Systems

http://www.bbc.co.uk/bristol/content/concorde/2003/11/26/ob.ram

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES JULY 2 2013

Machined Primary Structural Components Gear Ribs Pintle Fitting Rib Centre of Excellence

Major Assembly & Integration Wing Box Leading Edge Trailing Edge

Structural Sub-Assembly

Flight Control Surfaces Shroud Box Fixed Shroud

GKN Aerospace Filton – Overview

Sales: £350m

Workforce >1,750

including >100 Design

Centre Engineers

Facilities: 105,000sqm

Programmes:

Large Civil

Military Transport

Biz Jet

Military Fast Jet

Wing Systems Fuel Anti-Ice Bleed Air Pneumatics Hydraulics

20


Key Strategic Goals

Facility Investment

£23M capital investment

Filton Engineering Centre established

New Technology investment

Industrial Relations

Establish GKN identity

Revised working practices

Extended Customer Base

Increased to 8 customers

Design & Build work packages

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES JULY 2 2013 2

1

GKN AEROSPACE EUROPE – Metallics Centre of Excellence

Assembly

GKN specialises in the design and manufacture of large complex Aircraft structures. We apply the latest generation of automation to new customer programmes and seek to continuously improve our current product range. We support a wide range of fixed & rotary wing programmes across civil, business jet, military fast jet and transporter platforms.

Product Expertise Key Processes

Integrated Aerostructures: incl Leading & Trailing Edge, Wing Box, Flight Control Surfaces & Airframe Assemblies

Structural sub-assemblies: incl D-Nose, Shroud Box, Fixed Shroud, Aft Pylon Fairings, Door Frames & Nacelle structures

Automated Spar Drilling & Fettling

Automated Riveting & Fastening

Determinate Assembly

Interchangeablility (ICY)

Laser Tracking

Robotic Assembly

22


000

2

2


Complex machined components

GKN capabilities are recognized for its expertise in design and manufacture of high speed aluminium and hard metals machining. Our products support a wide range of fixed & rotary wing programmes across civil, business jet, military fast jet and transport platforms.


Hard Metal incl Landing gear

ribs, Pintle fittings, Catcher brackets, Flap tracks, Pylon fittings

Soft Metal incl wing tank ribs, Wing tank ribs, Leading and Trailing edge brackets, Track ribs, A-frames, Rib posts, access panels

5 Axis machining

Automated NDT

Robotic finishing

Co-ordinate measurement

In house programming in NCL, CATIA & CADDS 5

Automated treatments

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INVESTOR AND ANALYST VISIT TO GKN AEROSPACE SITES JULY 2 2013 2

3


Complex fabricated components

GKN Aerospace is a world-class supplier to the aerospace industry, manufacturing a wide range of precision pipes, ducts and complex fabricated components. Our products support a wide range of fixed & rotary wing programmes across civil, business jet, military fast jet and transport platforms.


Aircraft systems: Slat track cans, Ducting incl NACA, Bleed air, Anti-ice, fuel and Hydraulic pipes

Metal forming: incl Door beams, Wing brackets, Sub spars

2D & 3D laser profiling

Heat Treatment

Resistance welding

Electron Beam Welding

Fluid cell & Draw forming

Reverse engineering

Surface treatments

24


Tour of Filton

Visits to:

Integrated Machining Facility (IMF)

A380 Trailing Edge Assembly

Thank you for your visit

welcome to gkn · pdf filewelcome to gkn aerospace ... military commercial sales by market...

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