gkn aerospace overview aerospace overview 3 analyst briefing – 4 may 2017 kevin cummings chief...
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GKN Aerospace overview
Analyst briefing I Thursday 4 May 2017
The global technology partner to the aerospace industry
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ANALYST BRIEFING – 4 MAY 2017
Kevin Cummings, Chief Executive Officer GKN Aerospace overview
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ANALYST BRIEFING – 4 MAY 2017
Kevin Cummings Chief Executive Officer,
GKN Aerospace
Hans Büthker
Chief Executive Officer,
GKN Fokker
Mike McCann
Chief Executive Officer,
Engine Systems
Russ Dunn SVP
Engineering, Technology & Quality
Richard Oldfield SVP
Business Development & Strategy
John Pritchard CEO
Aerostructures Europe & Asia
Gavin Wesson SVP
Operations & Programmes
Will Hoy Chief Financial Officer
Rob Soen SVP
Supply Chain
Gordon Pitman SVP
Human Resources
Mike Grunza CEO
Aerostructures North America
Anna Keeling SVP
Commercial
Introduction to the Leadership Team
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ANALYST BRIEFING – 4 MAY 2017
GKN Aerospace’s growth story
Our strategy has seen sales increase more than 400% since 2006 2016
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
£650m sales
£3.42bn sales
2006
Volvo Sheets Metal Inc
Filton Fokker
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ANALYST BRIEFING – 4 MAY 2017
74% Commercial
26% Military
Sales by market
AM
19%
OE
81%
Airbus 19%
Boeing 12%
UTC 10%
GE 9%
Lockheed 7%
Safran 4%
Rolls-Royce 3%
Gulfstream 3%
Honeywell 3%
Others 30%
Sales by customer
Aerostructures 50% Engine
structures 36%
Special products 9%
Services, 5%
Sales by product
2016 sales: £3.42bn
18,000 employees
14 countries
4 R&D centres
GKN Aerospace: the global technology partner to the industry
AM
19%
OE
81%
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ANALYST BRIEFING – 4 MAY 2017
Leadership in our chosen technologies
Aerostructures
Global
#2
Engine Structures
Global
#2
Electrical Wiring
Global
#3
Transparencies
Global
#2
Focused on leadership positions
Willingness to invest in premium platforms
Remain acquisitional
Divest non-core businesses
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ANALYST BRIEFING – 4 MAY 2017
Market fundamentals remain strong
Backlog at near historic levels of around 8 years
− Anticipate manufacturing rates to outstrip orders over short-term
Customers predict total aircraft numbers to double by 2035***
* IATA
** Teal
*** Boeing Current Market Outlook 2016-2036
Defence spending
forecast to grow 2%
per annum over
next 5 years**
Air freight traffic
forecast to grow 4.1%
per annum to 2030*
Air passenger
traffic forecast to
grow 3.8% per
annum to 2030*
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ANALYST BRIEFING – 4 MAY 2017
Why we are winning
Customer-valued
technology
Strong leadership positions
Clear technology roadmap
Well-positioned on
growth platforms
Extensive content on growing
civil platforms
F-35 driving military growth
Global footprint to serve
our customers
Presence in growth regions
Investment in customer
adjacent facilities
Strong customer
partnerships
RRSPs are well-balanced
across their life cycles
Well-placed for growth
opportunities
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ANALYST BRIEFING – 4 MAY 2017
Hans Büthker, CEO – GKN Fokker Global leadership in aerostructures
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ANALYST BRIEFING – 4 MAY 2017
Strong number 2 in structures with clear product focus
Wing edges
& moveables
Fuselage
assemblies
Nacelles
& components
Empennages
1
2
3
4
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ANALYST BRIEFING – 4 MAY 2017
Strong number 2 in structures with clear product focus
Fuselage assembly
and panels
Floor assembly
and boards
Wing edges
& moveables
Fuselage
assemblies
Nacelles
& components
Empennages
1
2
3
4
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ANALYST BRIEFING – 4 MAY 2017
Strong number 2 in structures with clear product focus
Outer wing box and
components
Flaps, ailerons,
spoilers and winglets
Leading edge
Trailing edge, spars
and overwing panels
Wing edges
& moveables
Fuselage
assemblies
Nacelles
& components
Empennages
1
2
3
4
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ANALYST BRIEFING – 4 MAY 2017
Strong number 2 in structures with clear product focus
Empennages
Movables
Leading edge
Wing edges
& moveables
Fuselage
assemblies
Nacelles
& components
Empennages
1
2
3
4
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ANALYST BRIEFING – 4 MAY 2017
Strong number 2 in structures with clear product focus
Nacelle integration
Engine lip skins
Wing edges
& moveables
Fuselage
assemblies
Nacelles
& components
Empennages
1
2
3
4
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ANALYST BRIEFING – 4 MAY 2017
Unique portfolio of differentiating technologies
Composite leadership
Advanced thermoset processes
Lighter, stronger thermoplastics
Advanced metallics
AM to be transformative
Great opportunities for
technology insertion
Thermoplastic technology delivers lighter, stronger
composites for major aircraft structures
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ANALYST BRIEFING – 4 MAY 2017
Materials & material
processes
Integrated approach from material technologies to major assemblies
Manufacturing
processes
Major components Major assemblies
Laboratory and demonstrators
Advanced research
AM powders
Metal/composite materials
Additive manufacturing
Advanced machining & milling
Configuration management
Automated assembly
Co-cured wing covers
Engine lip skins
Composite parts & sub assy
Metal parts & sub assemblies
Wing edges and movables
Fuselage panels
Engine housing structures
Empennages
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ANALYST BRIEFING – 4 MAY 2017
Leading the way in electrification: today and tomorrow
GKN Aerospace is a global leader
− EWIS design and manufacture
− Anti-ice and ice detection solutions
Technology already on-board leading platforms
A Boeing 787 already collects 0.5 terabytes of
data per flight: demands will increase in future
Well-positioned for electrification
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ANALYST BRIEFING – 4 MAY 2017
Our differentiating electrical wiring design management system
Unrivalled capability to lead the
way for more electric aircraft 3D Geometrical
Design
ERP
Electrical Content
Design
Construction
Design
Marking Routing Finishing Changes Testing
web based
BA
ND
-ITB
AN
D-IT
BA
ND
-ITB
AN
D-IT
Su
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ly C
hain
Desig
nM
an
ufa
ctu
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Unique system connects the dots in the aircraft
Integrated wiring design, manufacturing,
configuration management and customer support
Benefits
Lowest total cost
Full configuration control
Delivery first time right and on time
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ANALYST BRIEFING – 4 MAY 2017
Well-positioned on growth platforms
Commercial
A350 XWB
737 MAX
A320neo
787
Bell 525
777X
Military
F-35 CH-53K B-21
Business Jets
Global 7000 / 8000
HondaJet
Falcon 5X G500, G600, G650
Regional
Ejet-E2 MRJ C Series
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ANALYST BRIEFING – 4 MAY 2017
Underpinned by global footprint and expansion in key growth areas
Manufacturing locations worldwide
Build on Centres of Excellence
Proximity and cost efficiencies
National defence champions
Expand in Asia
Strong global play
North America
Europe
Asia
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ANALYST BRIEFING – 4 MAY 2017
Mike McCann, CEO GKN Aerospace – Engine Systems Powering aircraft of the future
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ANALYST BRIEFING – 4 MAY 2017
Global number 2 with comprehensive product portfolio
Fan Rotatives
Fan Statics
Turbine Exhaust
Booster / Compressor
1
2
3
4
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ANALYST BRIEFING – 4 MAY 2017
Fan cases
Mount rings
Outer guide vanes
Wiring harnesses
Fan Rotatives
Fan Statics
Turbine Exhaust
Booster / Compressor
1
2
3
4
Global number 2 with comprehensive product portfolio
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ANALYST BRIEFING – 4 MAY 2017
Fan blades
Shafts
Spinners
Fan spacers
Fan Rotatives
Fan Statics
Turbine Exhaust
Booster / Compressor
1
2
3
4
Global number 2 with comprehensive product portfolio
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ANALYST BRIEFING – 4 MAY 2017
Compressor cases
Integrally bladed
rotors
Compressor discs
and spools
Compressor
blades
Fan Rotatives
Fan Statics
Turbine Exhaust
Booster / Compressor
1
2
3
4
Global number 2 with comprehensive product portfolio
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ANALYST BRIEFING – 4 MAY 2017
Turbine exhaust
structures
Nozzles and plugs
Turbine cases
Guide vanes
Turbine blades
Fan Rotatives
Fan Statics
Turbine Exhaust
Booster / Compressor
1
2
3
4
Global number 2 with comprehensive product portfolio
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ANALYST BRIEFING – 4 MAY 2017
World leaders in advanced metallic engine structures
A350 XWB Intermediate Compressor Case featuring
laser wire additive manufacturing technology
Increased AM adoption
Additive repair techniques
Bi-metallic fabricated structures
Next generation alloys
High speed, automated welding
Flight certified AM Technology Tomorrow’s lightweight metallics
Lightweight, fabricated assemblies with integrated
additively fabricated load bearing structures
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ANALYST BRIEFING – 4 MAY 2017
Composite technology drives engine performance
GEnx composite fan case
Fully automated manufacturing
processes
High temperature resins
Thermoplastics
Integrally formed complex geometries
Hybrid structures and airfoils
Lighter, stronger integrated assemblies
Multiple fan module products Broader, more complex applications
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ANALYST BRIEFING – 4 MAY 2017
Development
phase
High volume
production
Low volume
production
Customer partnership growth and long-term investment
AFTERMARKET PHASE
PW1000G PW4000
LMS100
GP7000
CF6-80
A well-balanced portfolio of RRSPs 2016 portfolio engine sales mix
% RRSP
sales
47%
% LTA
sales
53% LM6000+ XWB CFM56
V2500
T900
LM6000
PW2000
LM1600
AM
only
Initial
production
GEnx
LM2500
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ANALYST BRIEFING – 4 MAY 2017
Well positioned to power the world’s most advanced aircraft
Commercial
777X
737NG / MAX
A350XWB
A330ceo / neo
A320ceo / neo
787
747
A380
C-919
Irkut MC-21
Military
F-35
Saab Gripen
F-18E/F
F-15
F-16
Boeing P-8
C-130J
V-22
Regional and business jets
MRJ
Bombardier C Series
Bombardier Challenger 300
E175 / 195-E2
Embraer Legacy
Gulfstream G500 / G600
Space
Ariane 5
Ariane 6
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ANALYST BRIEFING – 4 MAY 2017
Kevin Cummings, Chief Executive Officer Summary
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ANALYST BRIEFING – 4 MAY 2017
GKN Aerospace in summary
Market leadership
Global scale
Great technology
Deliver operationally
and on acquisitions
Well positioned to continue growing above market