gkn powder metallurgy for print · one-way clutch advanced processes/ extreme forming differential...

GKN Powder MetallurgyPowder to partsPeter Oberparleiter | CEO, GKN Powder Metallurgy

2GKN CAPITAL MARKETS DAY – 21 MAY 2013

Disclaimer

Cautionary statement

This presentation contains forward looking statements which are made in good faith based on the information available to the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated. Nothing in this document should be regarded as a profits forecast.


Improved endurance and thermal Conductivity

Extreme tolerances

Ability to produce features previously requiring secondary processes

Net shape forming capabilities

Use of lightweight materials

Capability to design-in weight reduction features

Reduced part complexity utilizing less components

95% material utilization

Recycled Raw Materials

Less energy consumption with reduced processes

Powder Metallurgy – Technology without boundaries


GKN Powder Metallurgy – the industry leader

Global # 2 22% global share

Global # 118% global share

3,000 customersglobally

HoeganaesPowder production

240,000 tons of powderper year

Sinter MetalsComponent manufacture

6 billion parts per yearmany applications

Diverse customer base75% automotive/ 25% industrial


GKN Powder Metallurgy – Global presence

GKN Powder Metallurgy 2012 £874m sales

c.6,600employees

34 locations14 countries

Manufacturing Plant Sinter

Manufacturing Plant HC

Corporate Office / Engineering Centre

Brazil

Argentina South Africa

United States

CanadaGermany

FranceItaly

Romania

IndiaChina

Japan

England

Sweden

Spain

20%26%

Europe

4%

46%

India

Sinter

10% 13%

South America

1% 15%

China Premium

HC

49%

19%

North America

Market sharesHoeganaes Sinter

Source: GKN estimates


Höganäs

QMP

KobelcoJFE

Leading market positions in powder and parts

Sinter marketPowder market

Top 3 Powder companies cover70% of the market

Top 8 Sinter companies cover 60% of the market

Sumitomo

Fine Sinter

Hitachi

Metaldyne

GKN Sinter Metals18%

GKN Hoeganaes22%

PM growth outperforms marketsMarket concentration ongoing – financially strong global technology players preferredMega-platforms are growing opportunity for global players

Market dynamics


Sinter Metals sales by customer PM sales by region

Top 20 customers cover c.60% of sales25% non-automotive customers

Good progress to developbalanced sales in the regionsAsia Pacific and South America – a solid position but still work to do

Customer base and growing geographic spread

NonAutomotive

Sinter North America

36%

Sinter Europe

35%

Sinter Asia and South America

12%

Hoeganaes17%

9%

6%

5%

4%

3%

4%3%

2%

62%

FordGMZFFiat ChryslerVolkswagenHiliteLinamarBoschOther


IndiaToday # 1

Extending Capacity

New Greenfield plant under review

Footprint in high growth markets

Mexico and Russia under review

0

10

20

30

40

50

60

70

2013 2018

Mill

ion

Vehi

cles

Brasil Russia IndiaChina Mexico

Growing presence and capability in the key emerging markets

BrazilToday # 2

Plan for Expansion in 2014

ChinaToday # 7 2018 # 2

Expansion of existing facility

New plant opening Q4/2013

Develop powder capability


Operational excellence

0102030405060

2007 2008 2009 2010 2011 2012

ppm

Continuous improvement

Cover inflation

Margin progress

Cost leadership

Value streamsIncrease share of fully sustained value streams

0%

25%

50%

75%

100%

2007 2008 2009 2010 2011 2012

implemented planned

Every day we ….

Manufacture 17m parts in 34 plants

Every day we ….

Ship 17m parts to c.3,000 customers

QualityContinue to drive Zero Defect Strategy


Awards and special recognitions in 2012

TATA Quality Award

GM Supplier Award 2012

Schaeffler Supplier of theYear Award 2012

Tecumseh SupplierAward 2012

Safety Award (byprofessional associat.

of wood and metal)

50 Million SynchronizerHubs in 2012


Industry growth trends driving new PM applications

Energy efficiency Renewable energy Environmental legislationClimate protection

Highly efficient powertrains

VVT (Variable Valve Timing)

Electrification Light weight Alternative propulsion

Industry drivers

Technology trends

PM applications

Electric Power Steering (EPS) systems

New E-Motors with SMC

Transmission gears

Differential gears

Alu Camshaft caps

Hydrogen storage

Softmagnetic parts


Strong Alignment with Market Technology Trends

0

5

10

15

20

25

30

35

40

45

50

2012 2013 2014 2015 2016 2017 2018

7+ speedtransmissions

EPS systems

Start-stop

22.8%

CAGR 2013-2018

8.4%

9.6%

19.9%

Vehi

cle

Tech

nolo

gy A

dopt

ion

[milli

on]

Source: IHS + autobeats.com 2012

VVT

Four product groups represented c.15% of 2012 turnover


Unmatched engineering capability from Powder to Parts

Increasing spend in engineering from 3% of

sales to 4%

Increasing spend in engineering from 3% of

sales to 4%

More than 400 engineers worldwide

More than 400 engineers worldwide

More than 500 patents globallyMore than 500 patents globally

50 customer TechDays50 customer TechDays

Fotos TechDays


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.”


Design for PM – Capturing the value with unique capability

Advanced forming and furnace technology

Unique materials Advanced processes

Technically enhanced powders (TEP)


Design for PM – Creating new opportunities

2006

2018

Extreme forming/Advanced processes

Sensor fixtures

Highly complex shapes

Creative designs/Advanced processes

Soft magnetic components Hydrogen purification

Unique material /light weight

Aluminium cam caps

Unique joining /Creative design

One-way clutchAdvanced processes/

Extreme forming

Differential gears

E-Motors with SMCCreative design /

Advanced processesIncluding Additive

layer

Unique material porosityCreative designs/Advanced processes


Design for PM – New product launches

Differentiators:Extreme formingNet shapeMore durable and best surface accuracy

Electric powered steeringhelical pulleys

Differentiators: Net shapeMulti part substitutionReduced noise and vibration

Netshape transmission gear34° helical


PM Market

LV Market

GKN Powder Metallurgy market outperformance

Global LV market growth83 104

2013 2018

m v

ehic

les

4.35.6

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


Maximize asset utilization

Balanced investment

Design for PM

Selective business wins

Operational continuous improvement

Targeting new markets

Focus on growth product groups

Expand global footprint

Strong cashflow

GKN Powder Metallurgy summary

ROIC>20%

Growth c.3% above LV market

Margin range 9% to 11%

Business performance

gkn powder metallurgy for print · one-way clutch advanced processes/ extreme forming differential...

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