6 December 2013 Bill Seeger

Goldman Sachs Autos Conference Introduction to GKN

2 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Strategy

Creating long-term

shareholder value Four strong divisions

Lead in chosen markets

Leverage global footprint

Technology driving margin

Operational excellence

Increasing cashflow,

EPS and dividends

BUSINESS

PERFORMANCE

Growth target:

Above market

Margin

Group target:

8-10%

ROIC

Target: 20%

Sustain above

market growth

3 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

VW

Ford

GM

Renault / Nissan Fiat/

Chrysler

JLR/ Tata

EADS

UTC

GE

Boeing

Overview

Top 10 customers – c.50% Group Sales Divisional Sales Split

Source: Pro forma 2012 sales Source: 2013 consensus sales

Automotive

Aerospace

Driveline

Powder

Metallurgy

Aerospace

Land

Systems

Other

4 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Aerospace

North America

GKN Aerospace

Europe

GKN Aerospace

Aerospace North America

Aerospace Europe & Special Products Group

Aerospace Engine Systems (Volvo Aero)

Special products Transparencies and Protection Systems

Engine Systems & Structures Nacelle & Pylon; Engine systems and services

Aerostructures Wing; Fuselage

Sales $3.5 billion

35 sites, 12,000 people

World-class product portfolio

53%

42%

5%

% of 2012 Pro-forma sales

5 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Aerospace - markets and customers

Customer base

Market

Sector

Business

Mix

6 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Aerospace – World class product portfolio

Transparencies

& Coatings

Fuselage

Sections

Nacelle &

Pylon Flying

Surfaces

Protection

Systems

A380 Fixed Trailing Edge

Ariane 5 Exhaust nozzle

B787 Inner Core Cowl

A400M Engine Intake

B747-8 Exhaust

HondaJet Cockpit Window

AW101 Canopy

F35 Canopy

B787 Cabin Windows

Fuel tanks

Silicone Seals

Fuel Transportation

V22 Fuel Tanks

B787 Anti-icing System

A350XWB Rear Spar

A330 Flap Skins

B767 Winglet

J-UCAS Fuselage

CH53K Aft Fuselage

B787 Floor Grid

HondaJet Fuselage

Engine Products &

Services

Engine

Rotatives Engine

Structures

Full Engine MRO & Support

7 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

30%

70%

Military

Commercial

Sales by market 2012

Note: Engine Systems pro forma

Well balanced portfolio

US 87%

Europe 13%

Military split

Commercial

Large commercial aircraft – record order

backlog (8,500 aircraft, >$1 trillion)

30,000 aircraft forecast to be delivered

2013 to 2032

Military

Worldwide defence spending remains

subject to budget cutbacks

External forecasts

Latest forecast growth rates –

2013 to 2018:

− Civil: 3% to 4% CAGR

− Military: Flat near term; Future uncertain

8 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Aerospace Engine Systems

Military aircraft

engines Sub-systems for

rocket engines

Engine

services

3rd largest Tier 1

aero-engine

partner

OEM for the RM12

engine for Gripen

aircraft

EU centre of

excellence - space

turbines & nozzles

MRO facility for gas

turbines and small

engines

Components for aircraft

engines and gas turbines

RRSP 59%

Military/ Space

8%

MRO 9%

Commercial LTA 24%

Commercial

Engine Systems Sales E2013

Volvo Aero acquired 1 October 2012

Positions on most major new civil aerospace

platforms

Risk & Revenue Sharing Partner (RRSP) on

many platforms; provides life of program

participation

Significant aftermarket content (c.30%) providing

profitable long term revenue streams

Integration progressing well

9 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Driveline – An excellent global footprint

GKN Driveline

end-2012

£3.24 billion

Sales

c.22,000

Employees

45 Plants

22 Countries

Brazil

India

U.K.

France

Spain

Italy

Slovenia

Turkey

Malaysia

Thailand

Colombia Singapore

Taiwan

Japan

United

States China

South

Korea

Australia

Mexico

Manufacturing plant

Joint Venture

Corporate office /

Engineering centre

Sweden

Poland

Germany

10 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Leading positions in our core product segments

11 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Balanced global footprint with rising AWD contribution

Sales by region of origin 2012

Europe 37%

Americas 34%

Asia 29%

39% of

Sales

All-Wheel Drive

61% of

Sales

CVJ Systems

12 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Positioned to continue outperforming the market

Global LV market growth

Mega-platforms and

AWD growth and content

GKN Driveline target growth c.2% ahead of market

Unrivalled global

positioning

Technology leadership /

increasing AWD content Globally competitive

− Geographic footprint

− Broad customer base

− Strength in growth markets

− Response to tighter legislation

− Customer co-developments

− Fuel-efficient products

− Increasingly lean and agile cost

structure

AWD systems content Mega-platforms

13 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Powder Metallurgy – the industry leader

Global # 2

22% global share

Global # 1

18% global share

3,000 customers

globally

Hoeganaes

Powder production

240,000 tons of powder

per year

Sinter Metals

Component manufacture

6 billion parts per year

many applications

Diverse customer base

75% automotive/

25% industrial

14 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

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.”

15 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Accelerated trend towards design for PM

Key growth drivers

Fuel efficiency

Reduced emissions

Electrification

Weight and space saving

Variable valve timing components

Torque converter Differential gears

Industrial products

Sintered components - automotive

73%

Sintered components - industrial

10%

Hoeganaes 17%

Sales by product type

P-Rotor Pump components

Magnetic clutches

Surgical instruments

Pneumatic silencer

Rotor parts

Connecting rod

Automotive products

Parts for prosthetic knee joints

16 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

PM Market

LV Market

GKN Powder Metallurgy market outperformance

Global LV market growth 83

104

2013 2018

m v

eh

icle

s

4.3 5.6

2013 2018

£m

Unique “Design for PM”

capability

Global manufacturing and

engineering footprint Market Share Gain

− Innovative design

− Technically enhanced powders

− Advanced process technology

− Product and process engineering

capability in all regions

− Growing presence in high growth

markets

− Market concentration ongoing

− Mega-platforms awarded to global

PM players

GKN Powder Metallurgy

outperformance c.3% above LV market

PM market growth driven by

new technology trends

17 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Land Systems: Attractive growth markets

Construction, Mining & Utility

Industrial

Segment Growth

2013-18

3%-5%

(CAGR)

Agriculture

Segment Growth

2013-18

3%-5%

(CAGR)

Segment Growth

2013-18

4%-6%

(CAGR)

Land Systems

Market

£4bn

39% of Sales

Macro Drivers

Increasing population

Changing eating patterns

Climate changes

Urbanisation

Infrastructure

Increased mass transit

Raw material demand

Globalisation

Energy availability/costs

Land Systems

Market

£6bn

11% of Sales

Land Systems

Market

£8bn

27% of Sales

* Based on 2012 sales. 23% Other (mainly automotive aftermarket and structures)

18 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Land Systems offers unique technology coverage

Ind.

Ag. &

CE.

Ind.

Ag. &

CE.

Ag. &

CE.

Ag.

CE. &

Ind.

Ind. Ind. Ag. &

CE.

Ag.

CE. &

Ind.

#2 #2 or #3 Niche

Ag.

#1 Ag

#2 CE

#1 or #2 (Material

Handling)

Niche

(Material

Handling)

Niche Ag. & CE.

#1 or #2

Altra

Renold

KTR

Centa

Rexroth

Altra

KEB

Dana

Altra

Brevini

Bonfiglioli

Dana

Comer

Bondioli

Weasler

Svenborg

Carlisle

KEB

Altra

Mayr

Linak

Oerlikon

Titan

Mefro

Wheels

India

Segment

Presence

GKN

Position

Key

Competitors

Brands

From Power

Source

To Power

Applied

19 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Group: Growth of sales above our markets

GKN Driveline GKN Powder Metallurgy

GKN Land Systems GKN Aerospace

Growth in all wheel drive increases content

Innovative products for more fuel efficient vehicles

Strong market share in high growth regions

Increasing global/mega platforms

Innovation insertion in key new programs

New aircraft platforms move into rate production

Application of composite and light weight metallic

technology

Customer partnerships on key, high-growth platforms

New product application of PM technology

Higher performance trends create Design for PM

opportunities

Unique parts and powder capability

Geographic expansion into high growth regions

Customer demand for global suppliers

Demand for efficient, reliable power management

solutions

Leverage GKN technology to increase content

New market penetration - globalisation

20 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Technology sustains margin

progression

− Light weight

− Fuel efficiency

− Electrification

Operational excellence provides

foundation

− Lean and flexible cost structure

− Optimising supply chain

− Value driven pricing

Drivers to progress through the margin range

= in the range * 8.7%, excluding £25m of restructuring charges

Trading

Margin

2012

FY

2013

9m

Target

GKN

Aerospace 11.2% 10.7% 11-13%

GKN

Driveline 7.3% 6.8% 8-10%

GKN Powder

Metallurgy 10.0% 9.9% 9-11%

GKN Land

Systems 9.4% 8.8% 8-11%

Group

8.1% 8.2%* 8-10%

21 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Increasing EPS, cash

flow & dividends

A balanced approach to Growth, Margin and ROIC

ROIC

>20%

Growth

above market

Target Margin

8% to 10%

Business

performance

Focussed capital

allocation

Profitable growth

Technology underpins

margin

Operational excellence

Increasing content per

platform

Strength in high growth

markets

22 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Questions

23 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Q3 Results for the 3 month period

ended 30 September 2013

Appendix

24 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Overview

Since H1 results on 30 July, demand has remained consistent with expectations

− Commercial aerospace strong while military aerospace and spares continued to be weak

− Global light vehicle production up 4% - good growth in China/North America and Europe/Japan improved slightly

− Weakness in construction and industrial markets continued; agricultural equipment demand broadly flat

Sales up 16% to £1,865m, including 6% organic growth

Trading profit of £152m

Trading margin increased to 8.2%, due to underlying performance improvement and £21m from GKN

Aerospace Engine Systems

Net debt at 30 September 2013 of £973m (30 June 2013: £928m)

Management basis (1) 2013

Q3

£m

2013

9m YTD

£m

2012(*)

Q3

£m

2012(*)

9m YTD

£m

Sales 1,865 5,734 1,608 5,067

Trading Profit 152 472 113 404

Trading Margin (%) 8.2% 8.2% 7.0% 8.0%

Profit before Tax 131 409 98 362 * Restated for IAS 19 (revised)

25 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Aerospace

Strong organic growth in commercial

aerospace

Continuing decline in military sales

Spares sales lower

Sales up 42% to £555m, with 3% organic

growth

Trading profit increased 45% to £61m,

with organic change showing a decline of

£3m, due to reduced spares sales and

unfavourable currency in the quarter

Trading margin of 11%, due to strong

performance by GKN Aerospace Engine

Systems

Divisional performance

GKN Aerospace 2013

Q3

£m

2013

9m YTD

£m

2012

Q3

£m

2012

9m YTD

£m

Sales 555 1,678 392 1,162

Trading Profit 61 179 42 128

Trading Margin (%) 11.0% 10.7% 10.7% 11.0%

26 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Automotive markets

Global light vehicle production increased by 4% in Q3

Strong growth still evident in China and North America

Production in Japan and Europe improved slightly

Brazil and India continue to be volatile

0

5

10%

ch

an

ge

North

America

China

Brazil

Japan

India

Europe

+9%

+7% +6%

+5%

+2% +2%

Source: IHS Automotive Forecast, October 2013

27 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

GKN Driveline

Sales up 9% to £842m

Organic sales up well ahead of global

automotive production

Trading profit increased to £58m

Trading margin of 6.9%

Divisional performance

GKN Powder Metallurgy

Sales up 13%

10% organic growth, outperforming automotive

production in North America and Europe

Trading profit increased to £23m

Trading margin improved to 9.8%

GKN Driveline 2013

Q3

£m

2013

9m YTD

£m

2012

Q3

£m

2012

9m YTD

£m

Sales 842 2,570 773 2,437

Trading Profit 58 175 42 163

Trading Margin (%) 6.9% 6.8% 5.4% 6.7%

GKN Powder

Metallurgy

2013

Q3

£m

2013

9m YTD

£m

2012

Q3

£m

2012

9m YTD

£m

Sales 234 714 208 673

Trading Profit 23 71 20 67

Trading Margin (%) 9.8% 9.9% 9.6% 10.0%

28 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Divisional performance

GKN Land Systems

Performance affected by:

− weaker industrial and construction markets

− conclusion of Structures contracts

− agricultural equipment demand broadly flat

Sales down 4%, including 8% organic decline

which was similar to H1

Trading profit of £16m

Trading margin of 7.7%, reflecting more

challenging markets and normal seasonality

GKN Land Systems 2013

Q3

£m

2013

9m YTD

£m

2012

Q3

£m

2012

9m YTD

£m

Sales 208 695 216 728

Trading Profit 16 61 18 70

Trading Margin (%) 7.7% 8.8% 8.3% 9.6%

Other Businesses

Sales increased to £26 million (2012: £19 million) due to a rebound in sales from both Cylinder Liners and

Emitec as commercial vehicle markets recovered

Trading profit of £2 million (2012: trading loss of £2 million)

29 GOLDMAN SACHS AUTOS CONFERENCE – 6 DECEMBER 2013

Financial Summary

Management Basis (1) 2013 H1 £m 2013 Q3 £m 2013 9M YTD £m

Aerospace 1,123 555 1,678

Driveline 1,728 842 2,570

Powder Metallurgy 480 234 714

Land Systems 487 208 695

Other Businesses 51 26 77

Total sales 3,869 1,865 5,734

Aerospace 118 61 179

Driveline 117 58 175

Powder Metallurgy 48 23 71

Land Systems 45 16 61

Other Businesses 2 2 4

Central Costs (10) (8) (18)

Total trading profit 320 152 472

Interest (36) (19) (55)

JV interest and tax (6) (2) (8)

Profit before tax 278 131 409

Management Basis (1) – please see press release for definition

http://www.gkn.com/media/News/Pages/Interim-Management-Statement.aspx