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GKN Driveline

CVJ Systems

AWD Systems

Trans Axle Solutions

eDrive Systems GKN at a glance

GKN Driveline GKN Powder GKN Aerospace GKN Land Metallurgy Systems

World leading supplier World leader in the Supplier to the global Supplier to the global of automotive driveline manufacture of aviation industry agricultural, systems & solutions sintered components Leader in the construction, mining and other industrial Focussed on solutions Manufactures manufacture of highly markets that create weight, precision automotive, complex composite space and fuel savings industrial and aero structures and Innovation within renewable energy and Committed to innovation consumer products engine products mass transit solutions Largest powder Developer of fuel producer in North efficient solutions to Global aftermarket distribution and service America lower emissions

2 GKN Driveline Europa

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

Global group Sales of £7.4 billion in 2014 GKN Aerospace A leading first tier supplier to the More than 50,000 people in more than 30 countries global aerospace industry.

GKN Driveline 2014 - Sales by division A world leading supplier of Other automotive driveline systems (1.5%) and solutions. Land Systems £94m (10.5%) £776m

GKN Powder Metallurgy One of the world’s largest manufacturers of metal powder Aerospace Driveline and sintered components. (30%) (46%) £2,226m £3,444m

GKN Land Systems A leading supplier of engineered Powder Metallurgy power management products, (12%) systems and services. £916m

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

4 Our strategy

Four strong Five strategic Creating long-term divisions objectives shareholder value

Lead in chosen Growth target: markets Above market Growth

Leverage global footprint

Technology driving margin Margin BUSINESS ROIC PERFORMANCE Group target: Target: 20% Operational 8-10% excellence

Cash Flow Sustain above Increasing cash flow, market growth EPS and dividends

5 GKN Driveline – at a glance

26,500 employees GKN Driveline is a world leading supplier of automotive driveline systems and solutions. As a global business serving the leading 46 manufacturing vehicle manufacturers, GKN Driveline develops, builds and supplies locations an extensive range of automotive driveline products and systems – 22 countries for use in the smallest ultra low-cost to the most sophisticated premium vehicle demanding the most complex driving dynamics. 2014 Sales: £3.44bn

GKN Driveline GKN Driveline Sales by product 2014 Sales by customer 2014

Other 24% VW CVJ systems 15% Fiat Mitsubishi AWD & eDrive 4% 11% Systems Group 5%

Other BMW Group 6% Ford 10% Tata Group 6% Renault GM Group Nissan 9% 10%

6 Driveline – Global footprint

U.K. France Sweden Poland Russia Spain South Germany United Italy Korea Slovenia Japan States China Turkey India Taiwan Mexico Thailand

GKN Driveline Malaysia Colombia Sales by region 2014 Singapore 26% Manufacturing plant Brazil Rest of 38% Australia world Europe Joint Venture

Corporate office / Engineering centre 36% Americas

7 Strategy - market drivers & trends Legislation and economy Global trends

Lightweight Mega platforms Efficiency − 75% of light vehicles based on mega-platforms Increasing move to electrification Small and medium platforms experience greatest growth Growing popularity of SUVs and AWD Tightening of CO2 and fuel economy targets

“Common platform” VW MQB Mega-platform 9 million vehicles

8 GKN Driveline – product segments

CVJ Systems AWD Systems Trans Axle Solutions eDrive Systems

CV Joints Propshafts Differentials eAxles Sideshafts Transfer Units Limited Slip & eTransmissions AWD Couplings Locking Differentials eMotors Disconnects Final Drive Units

9 A complete driveline solution

Leadership in all major product lines

10 GKN Driveline – CVJ Systems

efficient thinking Fuel saving technology Maximised performance

the technology leader in CVJ sideshafts countertrack™ CVJ Ballspline system weight, space and fuel savings smallest maximise off-road angle & movement lightest Reduce NVH improved efficiency most efficient solutions provider most extensive range of CVJs widest global footprint manufacturing CVJs in 20 countries

High performing, economic solutions Innovative shaft solutions

Twinball (ST) joint with Face Spline Sideshaft for performance vehicles 50% higher torque transfer Most compact shaft for AWD rear 54 degree articulation – tightest turning sideshafts (hang-on solutions) on the reduced assembly time & backlash market Compact and light-weight design

11 GKN Driveline – AWD Systems

dynamic thinking Reduces everything but performance AWD Disconnect System

the global leader in efficient all- DTF propshaft interface Power Transfer / Rear Drive Unit drive systems reduces weight seamless engagement to AWD mode reduces assembly time very low drag torque unique capability to develop and reduces packaging space PTU with DTF propshaft interface manufacture full AWD Systems reduces system costs fuel consumption benefit world-class engineering over many years optimised components through full system understanding

Premium AWD Disconnect System High performance coupling

Power Transfer Unit / TWINSTER® EMCD® seamless engagement to AWD mode electric or hydraulic actuation no compromise all wheel drive low drag torque improved efficiency Optimised connection methods fuel consumption benefit

12 GKN AWD Systems

Introducing highly efficient, light weight AWD Disconnect Systems

Land Evoque Fiat B SUV

5% fuel saving / 3-5% fuel saving /

CO2 reduction CO2 reduction High performance AWD AWD System with System with Twinster® ETM® disconnect

disconnect

13 GKN Driveline – Trans Axle Solutions

unlimited thinking Global supply Improved dynamic performance

a leader in conventional and controlled Open Differential Electronic Torque Manager (ETM®) differentials for transmissions and smaller packaging maximum traction axles weight saving maximum stability globally available manufacturing in all regions of the world full product range established and experienced player

Adaptable sophisticated technology Off-road expert

Electronic Torque Vectoring Electronic Locking Differential controlled fast cornering for premium fast locking rear axle for extreme off-road conditions

14 GKN Driveline – eDrive Systems

Electrified thinking Hybrid with improved performance Economies of scale

a pioneer in advanced electric and eAxle System eTransmission Family Approach hybrid drivelines first two-speed eAxle on the market compact improved EV and hybrid drive mode ultra quiet systems leadership capability fun to drive choice of interfaces & gear ratio standard product range More than 250,000 vehicles on the road eTransmissions success in each major automotive region broader range of motors

Proven technology Dynamic partnership

Multimode eTransmission Axial Flux Motor first Multimode on the market easy integration into hybrid and electric high efficiency, lightweight, compact drivetrains total control of fuel economy class-leading torque and power density seamless switching between modes wide range of motors available

15 GKN eDrive Systems

Building a leading position in the eDrive component and systems market

Electric Axles Electric Transmissions Axial flux motors

Key developments: Launches: Launches: - Design for manufacture PSA Hybrid 4 MMC Outlander PHEV - Lower rare earth content Citroen C5 Fiat 500EV re-enforced - Add smaller size Porsche Spyder 918 B9 Berlingo EV - Investigate induction motor BMW i8 - Explore use of sinter metal composites for stator

16 GKN – technology enabling the future

17 17 AWD Systems - global manufacturing (except Propshafts)

Asia Pacific Americas Europe

GKN Driveline Nagoya

GKN Driveline Bowling Green GKN Driveline Köping

GKN Driveline Tochigi

GKN Driveline Newton GKN Driveline Bruneck

GKN Driveline Shanghai

18 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

Traditional Front-wheel All-wheel drive drive

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

19 Technology leadership in AWD

The challenge of tougher legislation for emissions and fuel efficiency

2015 2020 2025 EU Legislation 130gCO2/km 95gCO2/km 75gCO2/km ?

GKN Driveline’s technology response

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

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

GKN can influence market technology uptake – systems capability important

20 GKN Driveline in Sweden

Wintertest facility in Arjeplog

Production facility and application engineering centre in Köping

21 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

22

Overall Business

Volvo XC90 / XC60 / V70 / Countryman XC70 / S80 PTU PTU + RDU

Discovery Sport Renault Dacia Gear Sets / PTU + RDU ABB Robot Gear Sets

Porsche / Lamborghini / Audi New product FDU + coupler Disconnect system PTU + RDU

FIAT Disconnect System PTU + RDU

23 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

24 25 26 27 28 s

29 History of GKN Driveline Köping

Establishment AB Volvo Acquired by Köping starts GETRAG All Production of of Köpings buys Köpings GKN - manufacture Wheel Drive AWD systems Mekaniska Mekaniska GKN Driveline of AWD JV founded for Verkstad Verkstad systems Köping 1856 1942 1996 2004 2005 2011

1927 1965 2003 2004 2010 2013 Start of Start of Introduction Production of Production of Launch of Gearbox production of of 6 - speed AWD- systems for AWD units for TWINSTER® production Rear Axles in M66 all Volvo AWD Cars BMW (Mini) for Jaguar for Volvo Köping Gearbox Land Rover

30 Inside GKN Driveline Köping and some of our products

31 GKN Driveline Köping – All functions on site

Production Manufacturing Engineering Programme Management Engineering (incl. prototype shop) Supply Chain Management Purchasing Sales, Quality, Finance & HR

32 Our strengths in Köping

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

33 Quality assessment

ISO 14001 – 1996 ISO/TS 16949 – 2004 JLRQ – 2011 OHSAS 18001 – 2006 Ford Q1 – 2006

34 Gear Manufacturing Capability

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.

35 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

36 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

37 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

38 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

39 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

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