GKN Engineering that moves the world Group overview
GKN: Group overview
Engineering that moves the world
Contents
Engineering that moves the world Global engineering Focused technology Operational excellence Strong customer relationships Growth markets Delivering to our markets GKN Driveline GKN Powder Metallurgy GKN Aerospace GKN Land Systems Contacts
3 4 5 6 7 8 9 10 11 12 13 14
All group financial data in this document relates to 2012 unless otherwise stated
GKN: Group overview
Engineering that moves the world
Engineering that moves the world
Every day at GKN
GKN is a global engineering group we design, manufacture and service systems and components for the worlds manufacturers.
we drive the wheels of hundreds of millions of cars
we help thousands of aircraft to fly
we deliver the power to move earth and harvest crops
and we make essential components for industries that touch lives across the globe.
GKN: Group overview
Engineering that moves the world
Global Engineering
GKN is a truly global business with factories, service centres and offices in over 30 countries across five continents.
This strong global presence positions us well to serve our international customer base and creates a platform from which we can access fast-growing markets. It enables us to build and sustain close relationships with market-leading customers, helps optimise our position in supply chains and in developing new technologies in partnership with customers wherever they are across the world.
A press at GKN Sinter Metals
Graduate scheme member managing inventory at GKN Land Systems
Sales by region 2012 1 Europe* 2 Rest of world 3 Americas *of which a sizable proportion is re-exported to Asia and the Americas.
47% 15% 38%
Employees by region 2012 1 Europe (excluding UK) 2 Americas 3 Rest of world 4 UK 4
37% 29% 22% 12%
1 3 1 3
GKN: Group overview
Engineering that moves the world
Focused technology
Across GKN we develop and deploy the technology needed to meet these challenges and we have particular expertise helping to deliver: Lightweight components and systems Electro-mechanical equipment Fuel efficient systems
Final automated quality check at GKN Powder Metallurgy
GKN delivers innovative technology that helps our customers to stay ahead in their markets and helps us maintain our competitive edge, ensuring we can remain in higher value markets. We work with our customers to develop new technology, driven by global trends such as the low-carbon agenda, electrification, urbanisation and population growth.
Product design at GKN Driveline
Probing the A400m spar to check material condition prior to machining
GKN: Group overview
Engineering that moves the world
Operational Excellence
By constantly looking to improve our people, processes and products, we deliver superior value to our stakeholders.
At the heart of GKN is a strong culture of operational excellence. Innovative engineering and lean manufacturing skills enable us to produce high quality components and systems that are efficient, sustainable and cost effective for our customers. And it helps us to deliver on time all around the world.
Constant Velocity Joints manufactured by GKN Driveline
Automated tape laying machine working on the manufacture of an A400M wing spar at GKN Aerospace
Parts for shock absorbers following the sintering process at GKN Powder Metallurgy, Bonn
Every day, GKN Driveline buys 10 million parts from over 1,000 suppliers in more than 40 countries. We make over two million components at 45 sites globally, with a default rate of less than 0.001%. And we ship more than 300,000 parts to some 200 different customer locations.
GKN Aerospace produces composite wings spars using state of the art carbon fibre fabrication techniques. These spars are 27 metres long with a tolerance of approximately the depth of two sheets of paper.
GKN Powder Metallurgy manufactures around six billion parts per year for more than 3,000 customers at over 30 manufacturing locations on five continents.
GKN: Group overview
Engineering that moves the world
Strong Customer Relationships
We work in partnership to develop innovative solutions that meet their needs and our global footprint means we can manufacture our high-quality products and systems in close proximity to our customers wherever they are in the world.
Top 10 global customers 2012 1 VW Group 2 EADS (Airbus) 3 Ford 4 GM Group 5 Renault Nissan Group 6 Fiat Chrysler 7 Boeing 8 Tata Group 9 United Technologies 10 Toyota Group
Based on our global presence, strong technology and culture of quality manufacturing, we build and maintain strong relationships with key global equipment manufacturers and OEMs.
To help our customers, we have developed strong technology leadership in key areas: Driveline and all-wheel drive systems e Drive and electro-mechanical capabilities L ightweight composite and metallic aerostructures A ero engine systems and components A dvanced design for components made using powder metallurgy Power management
2012 sales by customer 1 2 3 4 Other customers 6 10 9 8 7 5
Measuring the lead angle on a fan hub at GKN Land Systems
GKN: Group overview
Engineering that moves the world
Growth Markets
GKN is focussed on serving three growing global markets where our unique attributes create value for our customers and our shareholders
Global light vehicle production 2012 81.5m 2013e 82.8m 2014e 87.4m 2015e 92.9m 2016e 97.0m 2017e 100.4m 2017e 2012
Boeing 2012 market outlook 2011 19,890 2031 39,780
2031
World population growth 2010 6.9bn 2020 7.7bn 2030 8.3bn 2040 8.9bn 2050 9.3bn 2050 2010
39,780 6.9bn
2011
81.5m
100.4m 19,890
9.3bn
Source: IHS Automotive
Source: Boeing
Source: UN World Urbanisation Prospects
Automotive
Global automotive production of more than 80 million units this year will keep on growing. Some 40% of these vehicles will have GKN components on them. And an increasing number will be all-wheel drive, where GKN is the market leader. In addition, fuel efficiency and weight savings require cleverly designed powder metal components where GKN is, again, the market leader.
Aerospace
In civil aerospace, Boeing and Airbus are forecasting that between 28,000 and 34,000 new single-aisle and widebodied aircraft will be required globally over the next 20 years. GKN, already a leader in composite aerostructures, is now, with the addition of Volvo Aero, a leader in engine components and systems, with a position on most major civil aerospace platforms.
Land Systems
Growth in the agricultural, construction, mining and industrial machinery markets is driven by the ever increasing population, which feeds the need for more food, increased urbanisation and increases commodity consumption. GKN supplies industrial power management components and systems that enhance the efficiency of equipment used to fulfil this growing demand.
GKN: Group overview
Engineering that moves the world
Delivering to our markets
Approximately 48,000 people work in GKN companies and joint ventures around the world. Together we use our footprint in over 30 countries, harnessing our technology and our considerable manufacturing resources, to supply the highest quality systems, structures, components and services. Our operations We have four operating divisions: GKN Driveline and GKN Powder Metallurgy that focus on the automotive market; GKN Aerospace; and GKN Land Systems. Every division is a market leader, each outperforming its markets, giving unrivalled expertise and experience in delivering cutting-edge technology and engineering to our global customers.
GKN Driveline
A world leading supplier of automotive driveline systems and solutions, including all-wheel drive.
GKN Powder Metallurgy
The worlds largest manufacturer of sintered components, predominantly to the automotive sector.
GKN Aerospace
A leading first tier supplier to the global aviation industry focussing on aerostructures, engine systems and products and specialty products.
GKN Land Systems
A leading supplier of technologydifferentiated power management solutions and services to the agricultural, construction, industrial and mining sectors.
Sales: 3,236 million Employees: 22,350
Sales: 874 million Employees: 6,600
Sales: 1,775 million Employees: 11,300
Sales: 933 million Employees: 5,650
GKN: Group overview
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Engineering that moves the world
GKN Driveline
As a global business serving the worlds leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline products and systems for use in the most sophisticated premium vehicles, that demand complex driving dynamics, to the smallest ultra low-cost cars. Sales 3,236 million
Products Constant velocity jointed systems including CV joints and sideshafts. All-wheel drive (AWD) systems including propshafts, couplings and final drive units. Trans-axle solutions including open, limited slip and locking differentials and electronic torque vectoring products. eDrive systems including electric rear axles and transmissions. Strategy Our strategy is to leverage our market leading presence and superior technology to: provide innovative driveline systems and solutions, supporting developing market trends for more fuel efficient vehicles; increase our business in high growth regions; and serve the needs of strategic customers through a market leading global footprint.
Sales by product group 1 CVJ Systems 2 AWD Systems 3 Trans-axle Solutions 4 eDrive Systems 5 Other
1,976m 974m 201m 15m 70m
Sales by region of origin 1 Europe 2 North America 3 Japan 4 South America 5 China 6 India 7 Other
1,196m 898m 418m 217m 297m 79m 131m
Employees 22,350
2
5 3 4 5 4
Testing an eDrive gearbox at GKN Driveline
GKN: Group overview
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Engineering that moves the world
GKN Powder Metallurgy
GKN Powder Metallurgy comprises Hoeganaes and GKN Sinter Metals. Hoeganaes is one of the worlds largest metal powder manufacturers and produces the metal powder that GKN Sinter Metals and others use to manufacture precision automotive components for engines, transmissions, and body and chassis applications. GKN Sinter Metals also produces a range of components for industrial and consumer applications. Sales 874 million
Products Metal powders. Sintered components for engines and transmissions, as well as pumps, bodies and chassis, and compressors. Sintered bearings and filters. Metal injection moulded components. Soft magnetic components for use in electric motors. Sintered components for numerous industrial applications. Strategy Our strategy is to exploit powder metal technology, working closely with our customers to develop design for powder metal applications to: meet the rapidly developing requirements for high efficiency engines, advanced transmission applications, weight reduction and evolving emissions standards; and expand the business in high-growth markets, supporting customers globally.
Sinter metals sales by region of origin 1 Hoeganaes 2 GKN Sinter Metals Americas 3 GKN Sinter Metals Europe 4 GKN Sinter Metals Rest of world
149m 348m 306m 71m
Sales by product type 1 Sintered Components automotive 2 Sintered Components industrial 3 Hoeganaes metal powder
637m 88m 149m
Employees 6,600
3
2 1
2 3D machine for measuring electrodes at GKN Sinter Metals
GKN: Group overview
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Engineering that moves the world
GKN Aerospace
GKN Aerospace is a world leading global first tier supplier of airframe and engine structures, components, assemblies and transparencies to a wide range of aircraft and engine prime contractors and other first tier suppliers. It operates in three main product areas: aerostructures, engine structures and systems, and niche products. Sales 1,775 million
Products Integrated aerostructures, including wing/empennage and flight control surface assemblies and fuselage structures. Fixed and rotating propulsion products for aircraft engines, fan cases, engine components, exhaust systems and nacelles. Transparencies including specially coated cockpit and cabin windows. Niche products such as ice protection, fuel systems and flotation devices. Strategy Our strategy is to focus investment in core market technology development and application to: exploit our strong positions on existing programmes for new aircraft platforms, and pursue long-term contracts on selective high-growth and long-running platforms; deploy new technologies for future commercial and defence aircraft, to improve fuel efficiency, reduce emissions and minimise the environmental impact of aviation; expand into adjacent markets with similar product technologies and manufacturing capabilities; and expand our global footprint.
Sales by product type 1 Aerostructures 2 Engine components and sub-systems 3 Special products Sales by market 1 Civil 2 Military
998m 652m 125m
64% 36%
Employees 11,300
2 1
Automated Fibre Placement machine working on the manufacture of a A350 XWB rear wing spar section at GKN Aerospace
GKN: Group overview
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Engineering that moves the world
GKN Land Systems
GKN Land Systems is a leading supplier of technology differentiated power management solutions and services. It designs, manufactures and supplies products and services for the agricultural, construction, mining and utility vehicle markets and key industrial segments, offering integrated powertrain solutions. Sales 933 million
Products Electro-mechanical power management devices such as electromagnetic brakes, engineered flexible couplings, clutches, driveshafts and gear technology. Sensors, actuators and controls. Single and multi-piece steel and aluminium wheels. Structures and chassis systems. Aftermarket parts and remanufacturing for passenger cars, commercial trucks, agricultural and construction vehicles, and industry applications. Strategy Our strategy is to be a global leader in high technology power management solutions to the worlds original equipment manufacturers on a platform of integrated powertrain systems and services, including: developing capability in integrated electro-mechanical systems; expanding the business for existing products into new markets through increased intelligent engineering; and improving customer performance by offering safe, efficient and reliable power management, together with increased electrification and use of lightweight structures.
Sales by business 1 Powertrain Systems and Services 2 Wheels & structures 3 Power Management Devices Sales by market 1 Agriculture 2 Automotive 3 Industrial 4C onstruction & mining
219m 333m 381m
366m 210m 250m 107m
Employees 5,650
4 1 3 3 1
2 Continuous flow production at GKN Land Systems 2
GKN: Group overview
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Engineering that moves the world
GKN Contacts
Registered head office GKN plc PO Box 55 Ipsley House Ipsley Church Lane Redditch Worcestershire B98 0TL Tel +44 (0)1527 517715 Fax +44(0)1527 517700 www.gkn.com
General enquiries: enquiries@gkn.com Investor relations: ir@gkn.com Media: media@gkn.com Corporate Social Responsibility: cr@gkn.com Careers: careers@gkn.com Company secretary: company.secretarial@gkn.com
Registered in England No. 4191106
