6.powder Met Final

GKN Powder Metallurgy
Powder to parts
Peter Oberparleiter | CEO, GKN Powder Metallurgy
Disclaimer
Cautionary statement
This presentation contains forward looking statements which are made in good faith
based on the information available to 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.
2
GKN CAPITAL MARKETS DAY 21 MAY 2013
Powder Metallurgy Technology without boundaries
Improved
endurance
and thermal
Conductivity
Extreme
tolerances
Ability to
produce
features
previously
requiring
secondary
processes
Net shape
forming
capabilities
Use of
lightweight
materials
Reduced part
complexity
utilizing less
components
Capability to
design-in
weight
reduction
features
3
95% material
utilization
Recycled
Raw
Materials
Less energy
consumption
with reduced
processes
GKN Powder Metallurgy the industry leader
Hoeganaes
Powder production
240,000 tons of powder
per year
Global # 2
22% global share
Sinter Metals
Component manufacture
6 billion parts per year
many applications
Global # 1
18% global share
4
Diverse customer base

75% automotive/
25% industrial
3,000 customers
globally
GKN Powder Metallurgy Global presence

GKN Powder
Metallurgy 2012
c.6,600
employees
874m sales
20%
34 locations
14 countries
26%
49%
HC
Europe
19%
1%
15%
Sweden
England
North America
Canada
United
States
Germany
France
Spain
China Premium
Italy
Romania
Japan
China
Sinter
India
10%
13%
46%
South America
Brazil
4%
Argentina
India
Manufacturing Plant Sinter

Manufacturing Plant HC
Corporate Office / Engineering Centre
South Africa
Hoeganaes Sinter
Market shares
5
Source: GKN estimates
Leading market positions in powder and parts

Powder market
Market
dynamics
GKN Hoeganaes
22%
Hgans
QMP
Kobelco
JFE
PM growth
outperforms markets
Market concentration
ongoing financially
strong global
technology players
preferred
Mega-platforms are
growing opportunity
for global players
Top 3 Powder companies cover

70% of the market
Sinter market
GKN Sinter Metals

18%
Sumitomo
Fine
Sinter
Hitachi
Metaldyne
Top 8 Sinter companies cover

60% of the market
6
Customer base and growing geographic spread

Sinter Metals sales by customer
9%
Ford
Hoeganaes
17%
6%
GM
ZF
5%
Fiat Chrysler
4%
Non
Volkswagen
Automotive
3%
Hilite
Linamar
PM sales by region
Sinter North
America
36%
Sinter Asia
and South
America
12%
4%
3%
62%
Bosch
2%
Other
Top 20 customers cover c.60% of sales

25% non-automotive customers
Sinter
Europe
35%
Good progress to develop

balanced sales in the regions
Asia Pacific and South America a solid
position but still work to do
7
Footprint in high growth markets

70
Million Vehicles
60
Brasil
China
Russia
Mexico
India
Growing presence and capability

in the key emerging markets
50
40
30
20
10
0
2013
2018
India
Today # 1
Extending Capacity
New Greenfield plant under
review
Brazil
China
Today # 7 2018 # 2
Expansion of existing facility
New plant opening Q4/2013
Develop powder capability
Today # 2
Plan for Expansion in 2014
Mexico and Russia under review
8
Operational excellence
Every day we .
Every day we .
Ship 17m parts to

c.3,000 customers
Manufacture 17m parts in

34 plants
Quality
Value streams
Continue to drive Zero Defect Strategy
Increase share of fully sustained value

streams
Continuous
improvement
60
50
40
30
20
10
0
Cover inflation
Margin progress
100%
75%
50%
25%
Cost leadership
0%
2007 2008 2009 2010 2011 2012
2007 2008 2009 2010 2011 2012
ppm
implemented
9
planned
Awards and special recognitions in 2012

TATA Quality Award
GM Supplier Award 2012
Schaeffler Supplier of the

Year Award 2012
Tecumseh Supplier
Award 2012
Safety Award (by
professional associat.
of wood and metal)
50 Million Synchronizer
Hubs in 2012
10
Industry growth trends driving new PM applications

Industry drivers
Climate protection
Energy efficiency
Renewable energy
Environmental
legislation
Electrification
Light weight
Alternative
propulsion
Technology trends
Highly efficient
powertrains
PM applications
Differential gears
VVT (Variable
Valve Timing)
Electric Power
Steering (EPS)
systems
Softmagnetic parts
Hydrogen storage
Transmission gears
Alu Camshaft caps
11
New E-Motors with SMC
Strong Alignment with Market Technology Trends

CAGR 2013-2018
50
45
VVT
9.6%
Start-stop
19.9%
EPS systems
8.4%
7+ speed
transmissions
22.8%
Vehicle Technology Adoption [million]
40
35
30
25
20
15
10
5
0
2012
2013
2014
2015
2016
2017
2018
Four product groups represented c.15% of 2012

turnover
12
Source: IHS + autobeats.com 2012
Unmatched engineering capability from Powder to Parts

More than 400
engineers worldwide
More than 500

patents globally
Increasing spend in
engineering from 3% of
sales to 4%
50 customer TechDays
Fotos TechDays
13
Design for PM Drives margins

is the design and application of products using the unique characteristics of powder
metal to produce parts which cannot be made economically using alternative technologies.
14
Design for PM Capturing the value with unique capability
Unique materials
Technically enhanced
powders (TEP)
Advanced processes
Advanced forming and

furnace technology
15
Design for PM Creating new opportunities
One-way clutch
Unique joining /
Creative design
Differential
gears
Soft magnetic
components
Creative designs/
Advanced processes
Hydrogen purification
Unique material porosity
Advanced processes/
Extreme forming
2018
2006
Highly complex
shapes
Aluminium cam caps
Unique material /
light weight
Sensor fixtures
Extreme forming/
Advanced processes
E-Motors with SMC

Creative designs/
Advanced processes
16
Creative design /
Advanced processes
Including Additive
layer
Design for PM New product launches

Electric powered steering
helical pulleys
Differentiators:
Netshape transmission gear

34 helical
Differentiators:
Extreme forming
Net shape
Net shape
Multi part substitution
More durable and best surface accuracy
Reduced noise and vibration
17
GKN Powder Metallurgy market outperformance

LV Market
m vehicles
Global LV market growth
PM Market
GKN Powder Metallurgy

outperformance c.3% above LV market
Unique Design for PM
capability
Innovative design
Technically enhanced powders
Advanced process technology
2013
104
2018
5.6
m
PM market growth driven by

new technology trends
83
4.3
2013
Global manufacturing and

engineering footprint
Product and process engineering
capability in all regions
Growing presence in high growth
markets
18
2018
Market Share Gain

Market concentration ongoing
Mega-platforms awarded to
global PM players
GKN Powder Metallurgy summary

Growth c.3%
above LV market
Targeting new markets
Focus on growth product
groups
Expand global footprint
ROIC
>20%
Margin range
9% to 11%
Design for PM
Selective business wins
Operational continuous
improvement
Business
performance
Strong cashflow
19
Maximize asset utilization
Balanced investment

6.powder Met Final

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GKN Powder Metallurgy

Powder Metallurgy Technology without boundaries

GKN Powder Metallurgy the industry leader

Diverse customer base

GKN Powder Metallurgy Global presence

Manufacturing Plant Sinter

Source: GKN estimates

Leading market positions in powder and parts

Top 3 Powder companies cover

GKN Sinter Metals

Top 8 Sinter companies cover

Customer base and growing geographic spread

Top 20 customers cover c.60% of sales

Good progress to develop

Footprint in high growth markets

Growing presence and capability

Mexico and Russia under review

Ship 17m parts to

Manufacture 17m parts in

Continue to drive Zero Defect Strategy

Increase share of fully sustained value

2007 2008 2009 2010 2011 2012

2007 2008 2009 2010 2011 2012

Awards and special recognitions in 2012

GM Supplier Award 2012

Schaeffler Supplier of the

Industry growth trends driving new PM applications

Alu Camshaft caps

New E-Motors with SMC

Strong Alignment with Market Technology Trends

Vehicle Technology Adoption [million]

Four product groups represented c.15% of 2012

Source: IHS + autobeats.com 2012

Unmatched engineering capability from Powder to Parts

More than 500

Design for PM Drives margins

Design for PM Capturing the value with unique capability

Advanced forming and

Design for PM Creating new opportunities

E-Motors with SMC

Design for PM New product launches

Netshape transmission gear

Multi part substitution

More durable and best surface accuracy

Reduced noise and vibration

GKN Powder Metallurgy market outperformance

Global LV market growth

GKN Powder Metallurgy

PM market growth driven by

Global manufacturing and

Market Share Gain

GKN Powder Metallurgy summary

Maximize asset utilization

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