Building Global Leaders Delivering Sustainable Growth. Sir Kevin Smith Chief Executive

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1 Building Global Leaders Delivering Sustainable Growth Sir Kevin Smith Chief Executive

2 Building Global Leaders Delivering Sustainable Growth Group Strategy A premier global engineering and manufacturing company Building a portfolio of market leaders Building a One Company competitive culture - the GKN WAY 2

3 Strategic Goals Building a portfolio of market leaders with: Leading market shares in chosen segments Above market growth in all sectors Margins at upper end of sector peers Technology leadership - engineering for the future 3

4 Building Global Leaders - Driveline Driveshaft to driveline repositioned globally 2010 Sales by Region Unrivalled Capability Global No 1 Japan 17% India 3% RoW 8% East Europe 8% West Europe 28% China 9% Brazil 9% Mexico 7% US 11% 2010 Sales by Customer Geely Other VW Tata Suzuki Hyundai Kia Renault Nissan Honda PSA BMW Fiat Chrysler Mitsubishi Ford Toyota GM 4

5 Building Global Leaders Powder Metallurgy From loss-making to revitalised technology leader Sinter Metals Global No 1 Extending the Boundaries Building the Future Market Share Design for PM new automotive applications Development Aero Engine Components Jet engine hot end turbine blades Others (below 2%) 43% 16% GKN 7% Sumitomo 6% Fine Sinter Power Steering Dual Clutch Transmission Start-Stop Soft Magnetics Variable Valve Timing 5

6 Building Global Leaders - Aerospace A leader in composites and lightweight structures and a substantial part of the Group No 1 in Europe Proven Competitiveness Strategic Partner Sales and Margin Development Shipset Values Major New Programmes UCAS Partnership with Northrop Grumman % % % 6 bn 1.0 7% % % % 0 Sales Margin % Filton Acquisition Jan

7 Building a New Global Leader Land Systems exploiting GKN capabilities 700m Revenue 1.5bn Revenue Power Management High Performance Structures Aftermarket and Service 7

8 Technology Leaders Engineering for the Future Driveline Engine Composites Powder and Parts ETV Fan Case Countertrack Modules etransmission Blades Turbo Charger Assembly 8

9 Technology Leaders - Engineering for the Future Global trends and drivers Growing population, urbanization, diet change, global warming, changing global threats Changing military environment Scarcity of resources, land, water, oil Increased mass transport Renewable energy 9

10 Building a One Company competitive culture the GKN WAY Securing advantage through competitive behaviour Common ways of working and shared values 10

11 Building a One Company competitive culture the GKN WAY Customer service Manufacturing excellence Global positioning Continuous improvement Outstanding leadership 11

12 Competitive Advantage Building Capability Customer service Blue chip clients Other Customers 43% EADS 8% VW 7% Boeing 6% Renault Nissan 6% Approx 1%: John Deere Suzuki GE PSA Caterpillar Rolls-Royce Ford 5% BMW United 2% Mitsubishi Technologies 2% Tata Toyota 4% 4% 2% Lockheed 2% Fiat Chrysler 5% General Motors 4% 12

13 Competitive Advantage Building Capability Customer service Blue chip service Toyota Global Supplier Conference 25 th February 2011 GKN Driveline Japan received the Certificate of Appreciation for quality improvement activities in 2010 Bronze Quality Award 2010 QUALITY CIRCLE FORUM OF INDIA COMPETITION GKN Driveline India Ltd Preferred Supplier 2010 Best Engine Overhaul & Repair Shop Best Engine Accessory Repair Shop Award to be presented at MRO USA April 2011 Global Supplier Award July 2010 Boeing Performance Excellence Award

14 Competitive Advantage Building Capability Customer service Blue chip service CMI Employee Engagement Strategy of the Year 2010 No Accident Record Award 3.9m hours Tochigi Plant The CBI People Grand Prix Award & People Engagement 2011 American Helicopter Society Award St Louis Ministry of Health, Labour and Welfare - Japan 14

15 Building a One Company competitive culture the GKN WAY Customer service Manufacturing excellence Global positioning Continuous improvement Outstanding leadership 15

16 Manufacturing Excellence GKN Driveline PPM Trend YTD GKN Filton Concession Reduction Performance YTD Powder Metallurgy Cost of non Quality - % Sales GKN Rockford Quality Performance YTD Acquisition

17 Building a One Company competitive culture the GKN WAY Customer service Manufacturing excellence Global positioning Continuous improvement Outstanding leadership 17

18 Competitive Advantage Global positioning 18

19 Building a One Company competitive culture the GKN WAY Customer service Manufacturing excellence Global positioning Continuous improvement Outstanding leadership 19

20 Competitive Advantage Continuous improvement Value streams and continuous improvement Everyone sees the Flow of Value, their role and is involved in improving it and is able to fix it when it breaks down. Development for all Personal Development Planning at all levels 9% 26% Executive & Professional PDP Employee PDP 65% No PDP tool used 20

21 Building a One Company competitive culture the GKN WAY Customer service Manufacturing excellence Global positioning Continuous improvement Outstanding leadership 21

22 Competitive Advantage Outstanding leadership Leadership Development Ladder Transition 2 Executive (Guide - A to C) Manager (Guide - D, E) Leader of Teams (Guide - F and below) Transition 3 Team Member Transition 1 Strategic leadership UCLA Leading for Value Creation MCIL Leading for Excellence FED Leading for Growth 22

23 Summary Successful execution of strategy to build a premier global engineering and manufacturing company Leadership positions in Driveline, Powder Metallurgy and Aerospace Land Systems now underway Competitive one company culture in place Restructuring has resulted in a strong operating footprint across global markets Technology and the GKN WAY unrivalled capability to develop, deliver and continuously improve All four Divisions delivering solid and improving performance GKN well prepared for sustainable above-market growth 23

24 GKN Delivering Sustainable Growth