Welcome to GKN Aerospace. 23 rd January 2014

Transcription

1 Welcome to GKN Aerospace 23 rd January 2014

2 GKN Aerospace $3.5 billion International Aerospace enterprise 35 sites, 12,000 people Kevin Cummings CEO GKN Aerospace Daniele Cagnatel GKN Aerospace Aerostructures North America Neil McManus GKN Aerospace Europe and Special Products Group Mike McCann GKN Aerospace Engine Systems Aerostructures North America Europe & Special Products Group Engine Systems 2

3 GKN Aerospace Markets and customers Market Business Mix Sector Customer Base 3

4 GKN Aerospace World class product portfolio Aerostructures 53% of Sales 2012* Engine structures 42% of Sales 2012* Special products 5% of Sales 2012* Wing Fuselage Nacelle and Pylon Engine Systems and Services Engine structures Engine rotatives Transparencies and Protection Systems J-UCAS Fuselage A380 Fixed Trailing Edge B747-8 Exhaust B787 Anti-icing System A350XWB Rear Spar CH53K Aft Fuselage A400M Engine Intake V22 Fuel Tanks A330 Flap Skins B787 Floor Grid B787 Inner Core Cowl Full Engine MRO and support B787 Cabin Windows B767 Winglet HondaJet Fuselage Ariane 5 Exhaust nozzle F35 Canopy Note: * Engine Systems proforma 12 months of

5 Well balanced portfolio Sales by market 2012 Customer sales E2013 Military Commercial 30% 70% Military split US 87% Europe 13% Note: Engine Systems proforma 12 months of

6 Market outlook Large commercial aircraft record order backlog (10,000 aircraft, >$1 trillion). World passenger traffic growth ,000 aircraft forecast to be delivered 2013 to 2032 Civil rotorcraft and large business jets markets strengthening Worldwide defence spending remains subject to budget cutbacks Latest forecast growth rates 2013 to 2018: Civil: 3% to 4% CAGR Military: Flat near term; Future uncertain Aircraft production 2003 to 2022 c 25% military Source: Airbus Notes: (2013$) Source: Teal Group 6

7 Market drivers bringing opportunities Drivers Requirement Solution GKN opportunity 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 7

8 Civil market dynamics Positive trend A320: neo Launch; Rate increase B737: MAX Launch; Rate increase A350/B787: Production ramp-up A380/B747: stable, softening MRJ/C-Series/MS21: Market entry A330: Rate increase; 777/777X 8

9 Military market On the right platforms F-35 JSF Rate Readiness phase A400M Atlas Moving to production F15 FMS C130J US multi-year and FMS V22 Multi-year F18 Super Hornet Rate Stable Blackhawk US multi-year and FMS 9

10 Next generation military platform opportunities X-47B Unmanned Combat Air System - Demonstrator Heavy Lift Assault/Transport Rotorcraft (CH-53K) NewGen Trainer (T-X) Unmanned Carrier Launched Surveillance & Strike (UCLASS) Armed Aerial /Joint Multi- Role Helicopter Long Range Strike Mission 10

11 GKN Aerospace well positioned for the future Ship set values $m 11

12 Technology Targeted innovation Future product differentiation Future wing technologies Advanced fuselage Nacelle, pylon and exhaust Engine structures Engine rotatives Transparencies and coatings Ice protection systems Next generation composite processes Advanced metallic processes Advanced process development 12

13 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 13

14 Key drivers to medium term margin progression A350XWB exit development phase, ramp-up B787 production ramp-up F35 production ramp-up Technology insertion in new platforms Cost base management & Global footprint Lean deployment throughout value chain Military budgets - C130J, C17 Customer price pressure 14

15 GKN Aerospace summary Growth c.2% above market Good position on existing and new commercial programmes Margin range 11% to 13% GKN technologies bringing customer value Balance between partnerships and long-term agreements Lean deployment throughout value chain On the right military platforms Business performance ROIC >20% Capital allocation Effective make or buy Requires time to recover Volvo Aero and new programme investments Strong cashflow 15

16 GKN Aerospace Western Approach

17 Advancing GKN Capabilities on A350XWB Western Approach GKN s Centre of Excellence for major composite primary structure components First Advanced Fibre Placement spar manufacture largest composite part in GKN First FTE automated moving assembly system Fully integrated product teams working closely with customer and supply chain 17

18 A350 Fixed Trailing Edge Design Outer Spar Mid Spar Inner Spar 3 Spars total over 27m in length with an accuracy of +/- 0.3mm Total weight of spar carbon is 1230kg/aircraft FTE assembly weighs 1800kg The FTE is 7% of total wing weight and supports 10x its own weight First large Scale assembly operation undertaken by GKNA (leveraging skills from the GKN Filton acquisition) 18

19 Spar Process Flow Goods In Mandrel Preparation Advanced Fibre Placement Transfer to Cure Tool Autoclave Cure Router Non Destructive Testing Paint Rib-Post Assy To Assembly 19

20 Assembly Process Flow Spar and Details MRS & ORS Robot Drill Load to Jig IRS 5 Axis Drill Bolt & Assemble Move Spar Integration Digital Scan Joint 20 Robotic drill & Integrate Despatch

21 Integration Jig Port & Stbd 21

22 FTE in Jig Customer Page 22 22

23 A400M Atlas 23

24 ATL Manufacture 24

25 A400M Spar Manufacture 25

26 Tour of Western Approach Visits to: Advanced Composites Centre of Excellence Automated Assembly Facility Thank you for your visit 26