GKN Powder Metallurgy. London

Transcription

1 GKN Powder Metallurgy London Peter Oberparleiter I CEO Powder Metallurgy I 6 May 2015

2 Agenda Introducing GKN Powder Metallurgy We have travelled a long way in ten years Sustaining our momentum Design for PM and geographic expansion Future Growth Application of innovative technology Delivering the GKN strategy Lead in chosen markets Leverage global footprint Technology driving margin Operational excellence Sustain above market growth GKN POWDER METALLURGY, 6 MAY

3 Introducing GKN Powder Metallurgy Industry leader: Vertically integrated powder to parts capability GKN Hoeganaes - Powder production - GKN Sinter Metals - Component manufacture - 280,000 tons of powder per year 11 million parts produced daily Many applications World no.2 with 23% global share World no. 1 18% global share Helical PM Pulley for Electric Steering GKN POWDER METALLURGY, 6 MAY

4 Powder metallurgy products in automotive Engine Start-Stop Transmission Planetary Carriers Drivetrain Differential Gears (Forged PM) 21% of sales transmission components 27% of sales engine components Body & Chassis Shock Absorber Components Engine Variable Valve Timing Components Body & Chassis Electric Power Steering Components GKN POWDER METALLURGY, 6 MAY

5 Market split and customer base GKN Powder Metallurgy Sales by sector Customers - Diverse customer base - Sinter Asia 8% Hoeganaes 16% Sinter Europe 35% * Sinter Americas 41% 3000 customers >80% automotive <20% industrial Top 20 customers cover ca. 60% of sales 165m annualized new and replacement business in m total sales in 2014 Americas and Europe relatively balanced Opportunities to expand in Asia-Pacific * Excludes intercompany sales GKN POWDER METALLURGY, 6 MAY

6 Expanding global presence EUROPE USA & CANADA CHINA JAPAN 1 INDIA 1 2 BRAZIL 1 SOUTH AFRICA 1 Corporate/Sales/Engineering Centre Manufacturing Plant Sinter M. Manufacturing Plant Hoeganaes 7000 employees Manufacturing in 9 countries GKN POWDER METALLURGY, 6 MAY

7 Strong positions in powder and parts GKN Hoeganaes Powder production Drivers Market dynamics GKN Sinter Metals Sinter market Hoeganaes AB GKN 23% Strong technology providers preferred GKN 18% QMP Kobelco JFE Steel Corporation Growing opportunities for global players PM growth outperforms automotive market Metaldyne Miba PMG Sumitomo Hitachi Fine Sinter Porite GKN is global no. 2 Top 5 powder manufactures >80% of the market GKN is market leader Top 8 sinter companies 60% of the market GKN POWDER METALLURGY, 6 MAY

8 billions : Turnaround followed by growth % % 10% Restructured and delivering operational efficiency Design for PM enhancing margin 0.2 0% Geographic expansion Sales Margin ROIC -10% Strong growth ahead of the market 60% 40% 20% 0% % GKN Growth Auto Market Growth GKN POWDER METALLURGY, 6 MAY

9 : Turnaround followed by growth GROWTH 4.5% CAGR Restructured and delivering operational efficiency Design for PM enhancing margin Geographic expansion MARGIN 2% to 11% Business performance ROIC 3% to 22% Strong growth ahead of the market Cash generation 302m in 5 years GKN POWDER METALLURGY, 6 MAY

10 Sustaining momentum Expanding geographic footprint Technology driving margin Automotive trends driving Design for PM Benefits of powder-to-part integration Process leadership and operational excellence Lead in chosen markets Leverage global footprint Technology driving margin Operational excellence Sustain above market growth GKN POWDER METALLURGY, 6 MAY

11 Expanding geographic footprint Upgrading capability Building capacity in key Asian market USA Upgrading process capability Digitising shopfloor CHINA Today no no. 2 MEXICO Under consideration Enhancing Design for PM INDIA Today no. 1 Original plant moved and expanded Second plant onstream Capacity in place to increase sales 3x current level by 2018 GKN POWDER METALLURGY, 6 MAY

12 Automotive trends driving Design for PM Legislation Energy efficiency Renewable energy EPS (ELECTRIC POWER STEERING) ALUMINIUM CARRIER 7+ VVT (CAM PHASING) TRANSMISSION GEARS START/STOP VARIABLE VANE PUMPS Light weight Fuel efficient Electrification GKN POWDER METALLURGY, 6 MAY

13 Design for PM Design and application of products using the unique characteristics of powder metal Parts which cannot be made economically using alternative technologies Product VVT (Cam phasing) EPS (Electric power steering) CAGR % 4.8% Key to driving margin Start/Stop 17.6% Transmissions 7+ speeds 16.5% GKN POWDER METALLURGY, 6 MAY

14 Increasing complexity Benefits of powder-to-parts integration Selecting the right powder ensures optimum product Technically Enhanced Powder (TEP) delivers advanced products Sales in TEP increased by 15% in 2014 Steel & Low Alloy Powder Powder Forge Powders ANCORBOND AncorTech Lean Alloys AncorTech High Density AncorTech Magnetics GKN POWDER METALLURGY, 6 MAY

15 Process leadership and operational excellence Process technology Advanced data management Advanced forming and bionic tools 100% of EU presses and forges datalinked Continuous improvement Leading process technology linked to advanced data management Driven by GKN Lean processes Global programme management Operational excellence Programme management ppm GKN POWDER METALLURGY, 6 MAY

16 Innovation Advanced powders Additive manufacturing Hydrogen storage GKN POWDER METALLURGY, 6 MAY

17 Horizon scan HYDROGEN STORAGE > 5bn GEARS > 2bn ADDITIVE MANUFACTURING > 5bn EPS VVT Start/ Stop SMC/ emotors > 1bn PM market today GKN POWDER METALLURGY, 6 MAY

18 Advanced powders Technical qualities give access to new markets Automotive Medical Aerospace General energy Drives margin enhancement Enhances product quality and manufacturing efficiency Creates new opportunities GKN POWDER METALLURGY, 6 MAY

19 Additive manufacturing ATOMIZED AND GAS ATOMIZED POWDERS Design freedom increases value Unique expertise in powder, product design and manufacturing Aerospace likely key market TOPOLOGY OPTIMIZATION CAD FILE PART GKN POWDER METALLURGY, 6 MAY

20 Hydrogen storage HIGHLY REACTIVE & EASY TO HANDLE MATERIAL Safe and compact storage for industrial use Partnered with McPhy METAL POWDER COMPACT HYDROGEN METAL HYDRIDE STORAGE TANK Solid state Effective challenger gas and liquid storage Gas tank 27 litre 700 bar 0 o C Liquid tank 14 litre 1 bar -252 o C H 2 metal hydride 12 litre 30 bar 20 o C GKN POWDER METALLURGY, 6 MAY

21 GKN Powder Metallurgy delivering the GKN strategy Lead in chosen markets Leverage global footprint Technology driving margin Industry leading powder and sinter company Expanding global footprint in Asia Design for PM Focus on growth product groups Operational excellence Continuous improvement Sustain above market growth Growing faster than automotive market GKN POWDER METALLURGY, 6 MAY

22 GKN Powder Metallurgy A great business to be in Innovative technology Strong operations No shortage of opportunities GKN POWDER METALLURGY, 6 MAY

23 GKN Powder Metallurgy London Peter Oberparleiter I CEO Powder Metallurgy I 6 May 2015

24 Disclaimer Cautionary statement This presentation contains forward looking statements which are made in good faith based on the information available at 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 POWDER METALLURGY, 6 MAY