CVJ Systems

AWD Systems

Trans Axle Solutions

eDrive Systems

GKN Driveline

2

GKN at a glance

GKN Driveline GKN Powder

Metallurgy GKN Aerospace GKN Land

Systems

World leading supplier

of automotive driveline

systems & solutions

Focussed on solutions

that create weight,

space and fuel savings

Committed to innovation

World leader in the

manufacture of

sintered components

Manufactures

precision automotive,

industrial and

consumer products

Largest powder

producer in North

America

Supplier to the global

aviation industry

Leader in the

manufacture of highly

complex composite

aero structures and

engine products

Developer of fuel

efficient solutions to

lower emissions

Supplier to the global

agricultural,

construction, mining

and other industrial

markets

Innovation within

renewable energy and

mass transit solutions

Global aftermarket

distribution and service

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GKN Driveline Europa

4

GKN Aerospace

A leading first tier supplier to the

global aerospace industry.

A Tier 1 Supplier to the major OE manufacturers in Automotive, Aerospace and Land Systems markets

GKN Driveline

A world leading supplier of

automotive driveline systems

and solutions.

GKN Powder Metallurgy

One of the world’s largest

manufacturers of metal powder

and sintered components.

GKN Land Systems

A leading supplier of engineered

power management products,

systems and services.

2014 - Sales by division

Driveline

(46%)

£3,444m

Aerospace

(30%)

£2,226m

Land Systems

(10.5%)

£776m

Other

(1.5%)

£94m

All group financial data in this document relates to 2014 unless otherwise stated. Sales figures are presented on a management basis

Powder Metallurgy

(12%)

£916m

Global engineering group

Sales of £7.4 billion in 2014

More than 50,000 people in more than 30 countries

5

Our strategy

Creating long-term

shareholder value

Four strong

divisions

Lead in chosen markets

Leverage global footprint

Technology driving margin

Operational excellence

Increasing cash flow,

EPS and dividends

BUSINESS

PERFORMANCE

Growth target:

Above market

Group target:

8-10%

Target: 20%

Sustain above

market growth

Cash Flow

Growth

ROIC Margin

Five strategic

objectives

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GKN Driveline – at a glance

26,500 employees

46 manufacturing

locations

22 countries

2014 Sales: £3.44bn

GKN Driveline is a world leading supplier of automotive driveline

systems and solutions. As a global business serving the leading

vehicle manufacturers, GKN Driveline develops, builds and supplies

an extensive range of automotive driveline products and systems –

for use in the smallest ultra low-cost car to the most sophisticated

premium vehicle demanding the most complex driving dynamics.

GKN Driveline Sales by product 2014

CVJ systems

AWD & eDriveSystems

Other

VW 15%

Fiat Chrysler

11%

Ford 10%

Renault Nissan

10% GM Group

9%

Tata Group 6%

BMW Group 6%

Toyota Group 5%

Mitsubishi 4%

Other 24%

GKN Driveline Sales by customer 2014

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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

Russia

38% Europe

36% Americas

26%

Rest of world

GKN Driveline Sales by region 2014

Driveline – Global footprint

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Strategy - market drivers & trends

Lightweight

Efficiency

Increasing move to electrification

Legislation and economy

Tightening of CO2 and fuel economy targets

Global trends

Mega platforms

− 75% of light vehicles based on mega-platforms

Small and medium platforms experience

greatest growth

Growing popularity of SUVs and AWD

“Common platform”

VW MQB Mega-platform

9 million vehicles

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GKN Driveline – product segments

CVJ Systems AWD Systems Trans Axle Solutions eDrive Systems

CV Joints

Sideshafts

Propshafts

Transfer Units

AWD Couplings

Disconnects

Final Drive Units

Differentials

Limited Slip &

Locking Differentials

eAxles

eTransmissions

eMotors

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A complete driveline solution

Leadership in all major product lines

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GKN Driveline – CVJ Systems

efficient thinking

the technology leader in CVJ sideshafts

weight, space and fuel savings

improved efficiency

solutions provider

most extensive range of CVJs

widest global footprint

manufacturing CVJs in 20 countries

Fuel saving technology

countertrack™ CVJ

smallest

lightest

most efficient

Maximised performance

Ballspline system

maximise off-road angle & movement

Reduce NVH

High performing, economic solutions

Twinball (ST) joint with Face Spline

50% higher torque transfer

54 degree articulation – tightest turning

reduced assembly time & backlash

Innovative shaft solutions

Sideshaft for performance vehicles

Most compact shaft for AWD rear

sideshafts (hang-on solutions) on the

market

Compact and light-weight design

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GKN Driveline – AWD Systems

dynamic thinking

the global leader in efficient all-wheel

drive systems

unique capability to develop and

manufacture full AWD Systems

world-class engineering over many

years

optimised components through full

system understanding

Reduces everything but performance

DTF propshaft interface

reduces weight

reduces assembly time

reduces packaging space

reduces system costs

AWD Disconnect System

Power Transfer / Rear Drive Unit

seamless engagement to AWD mode

very low drag torque

PTU with DTF propshaft interface

fuel consumption benefit

Premium AWD Disconnect System

Power Transfer Unit / TWINSTER®

seamless engagement to AWD mode

no compromise all wheel drive

improved efficiency

fuel consumption benefit

High performance coupling

EMCD®

electric or hydraulic actuation

low drag torque

Optimised connection methods

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GKN AWD Systems

Land Rover Evoque

Introducing highly efficient, light weight AWD Disconnect Systems

Fiat B SUV

5% fuel saving /

CO2 reduction

High performance AWD

System with Twinster®

disconnect

3-5% fuel saving /

CO2 reduction

AWD System with

ETM® disconnect

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GKN Driveline – Trans Axle Solutions

unlimited thinking

a leader in conventional and controlled

differentials for transmissions and

axles

manufacturing in all regions of

the world

full product range

established and experienced player

Global supply

Open Differential

smaller packaging

weight saving

globally available

Improved dynamic performance

Electronic Torque Manager (ETM®)

maximum traction

maximum stability

Adaptable sophisticated technology

Electronic Torque Vectoring

controlled fast cornering for premium cars

Off-road expert

Electronic Locking Differential

fast locking rear axle for extreme off-road

conditions

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GKN Driveline – eDrive Systems

Electrified thinking

a pioneer in advanced electric and

hybrid drivelines

systems leadership capability

standard product range

More than 250,000 vehicles on

the road

eTransmissions success in each

major automotive region

broader range of motors

Hybrid with improved performance

eAxle System

first two-speed eAxle on the market

improved EV and hybrid drive mode

fun to drive

Economies of scale

eTransmission Family Approach

compact

ultra quiet

choice of interfaces & gear ratio

Proven technology

Multimode eTransmission

first Multimode on the market

high efficiency, lightweight, compact

total control of fuel economy

seamless switching between modes

Dynamic partnership

Axial Flux Motor

easy integration into hybrid and electric

drivetrains

class-leading torque and power density

wide range of motors available

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GKN eDrive Systems

Electric Axles Electric Transmissions

Launches:

PSA Hybrid 4

Citroen C5

Porsche Spyder 918

BMW i8

Building a leading position in the eDrive component and systems market

Axial flux motors

Key developments:

- Design for manufacture

- Lower rare earth content

- Add smaller size

- Investigate induction motor

- Explore use of sinter metal

composites for stator

Launches:

MMC Outlander PHEV

Fiat 500EV re-enforced

B9 Berlingo EV

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GKN – technology enabling the future

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AWD Systems - global manufacturing (except Propshafts)

GKN Driveline Bowling Green

GKN Driveline Bruneck

GKN Driveline Köping

GKN Driveline Newton

GKN Driveline Tochigi

GKN Driveline Nagoya

GKN Driveline Shanghai

Europe Americas

Asia Pacific

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Growing demand for AWD

Consumers like AWD

− Safety, assured driving and performance

− But want acceptable fuel economy and CO2

OEMs like AWD

− Improves vehicle performance and image

− Sellable feature with content and margin

− Smaller model migration

Front-wheel

drive

Traditional

All-wheel

drive

Source: IHS Automotive LV forecast April. 2013, GKN analysis.

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Technology leadership in AWD

The challenge of tougher legislation for emissions and fuel efficiency

Optimised AWD Disconnect AWD Hybrid/electric AWD Today’s AWD

EU Legislation 130gCO2/km 95gCO2/km 75gCO2/km ?

GKN Driveline’s technology response

< 1.5% 2% to 5% 20% - 40% Fuel saving / CO2 reduction

GKN can influence market technology uptake – systems capability important

2015 2020 2025

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GKN Driveline in Sweden

Wintertest facility in Arjeplog

Production facility and application

engineering centre in Köping

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GKN Driveline Köping 2014

Turnover 291m €

934 employees

70,000 m2 floor space

Main customers

− Volvo Cars, JLR, FIAT, BMW,

Renault/Dacia, Audi, Porsche,

Lamborghini

Production

PTU/RDU 632.000

Gear set 995.000

Wheel units 94.000

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Overall Business

Volvo XC90 / XC60 / V70 /

XC70 / S80

PTU + RDU

Discovery Sport

PTU + RDU

Mini Countryman

PTU

Porsche / Lamborghini / Audi

FDU + coupler

Renault Dacia Gear Sets /

ABB Robot Gear Sets

New product

Disconnect system

PTU + RDU

FIAT

Disconnect System

PTU + RDU

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Köping plant

AWD Manufacturing

Ring and Pinion, Gleason ground

Heat treatment

Aluminum housings

Welding (EB, MAG, Laser)

Assembly

End of line testing

Shafts, differentials

Transmissions components

Chassis: Knuckle production, wheel end assembly

High automation

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26

27

28

29

s

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History of GKN Driveline Köping

1996

Köping starts

manufacture

of AWD

systems

2004

GETRAG All

Wheel Drive

JV founded

Establishment

of Köpings

Mekaniska

Verkstad

1856 1942

AB Volvo

buys Köpings

Mekaniska

Verkstad

Start of

Gearbox

production

for Volvo

1927 1965

Start of

production of

Rear Axles in

Köping

Introduction

of 6 - speed

M66

Gearbox

2003

Production of

AWD- systems for

all Volvo AWD Cars

2004

2005

Production of

AWD systems

for Land Rover

2010

Production of

AWD units for

BMW (Mini)

2011

Acquired by

GKN -

GKN Driveline

Köping

2013

Launch of

TWINSTER®

for Jaguar

Land Rover

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Inside GKN Driveline Köping and some of our products

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GKN Driveline Köping – All functions on site

Production

Manufacturing Engineering

Programme Management

Engineering (incl. prototype shop)

Supply Chain Management

Purchasing

Sales, Quality, Finance & HR

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Design, simulation and testing

on-site for a process driven development

Gear technology

on-site competence from design, simulation to production

NVH competence

from simulation, rig test to car validation

Prototype resources

for short lead time and flexibility

Effective and customer focussed Launch Process

all functions on-site for efficient industrialisation

Advanced production processes

for hypoid- and helical gears

Our strengths in Köping

34

Quality assessment

ISO 14001 – 1996

ISO/TS 16949 – 2004

JLRQ – 2011

OHSAS 18001 – 2006

Ford Q1 – 2006

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In house gear design, manufacturing, tool design/manuf. , assembly and final testing

Spiral bevel gear sets manufacturing (cap: 900’/year), Gleason syst. with dry cut. and gear

grinding

Helical gear manufacturing (cap: 400’/year)

Complete manufacturing (from forgings to MTE testing)

Blade cutter grinding for optimized tool life

100% marking and part traceability for all important features.

Gear Manufacturing Capability

36

Aluminum Machining Centres

12 High speed 4-axis Makino and dry cutting designed Ex-Cello machining

centres

Extra “axis” angular heads for drilling, threading and milling

In process automatic washing

100% leakage testing

37

Multiple Welding Technology

Three different welding technologies for different application needs, with over

20 years experience

- Laser welding (with and without filler wire)

- Electron Beam welding (vacuum)

- MAG welding

In house welding specialist competence

Non destructive testing; Automated Ultra sonic weld

quality check

Laboratory frequent batch destructive testing

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Heat & Surface Treatment

Case hardening / Phosphating

Three pusher furnaces and one batch furnace

Manganese phosphating line

CQI 9 and CQI 12 certified

CHD range of 0.4-1.6 mm

Laboratory

Chemistry and metallographic laboratory

Spectrometer analysis

Carbon sulphur analysis

Fully equipped microscopic range (stereo, optical and

SEM/EDX)

Fully automatic micro hardness test equipment

39

Assembly Technology

Semi automated high volume assembly lines

Designed ergonomically to be operator friendly

Multi variants with quick change over

Material handling minimized through easy access of

material

100% objective EOL testing of all important features

- NVH

- Transmission error

100% data tracking for traceability

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Measuring and Control

Gear measuring in Zeiss, Klingelnberg and Gleason

CNC inspection frequently of flank form, tooth thickness

and pitch

Automatic calculation of needed machine corrections

CMM inspection of both castings and machined housings and

covers

Inspection and control of geometrical tolerances such as form

and position

First piece- and frequent CNC inspection