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Powder to parts
Peter Oberparleiter | CEO, GKN Powder Metallurgy
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.
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Improved
endurance
and thermal
Conductivity
Extreme
tolerances
Ability to
produce
features
previously
requiring
secondary
processes
Net shape
forming
capabilities
Use of
lightweight
materials
Reduced part
complexity
utilizing less
components
Capability to
design-in
weight
reduction
features
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95% material
utilization
Recycled
Raw
Materials
Less energy
consumption
with reduced
processes
Hoeganaes
Powder production
240,000 tons of powder
per year
Global # 2
22% global share
Sinter Metals
Component manufacture
6 billion parts per year
many applications
Global # 1
18% global share
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GKN CAPITAL MARKETS DAY 21 MAY 2013
3,000 customers
globally
c.6,600
employees
874m sales
20%
34 locations
14 countries
26%
49%
HC
Europe
19%
1%
15%
Sweden
England
North America
Canada
United
States
Germany
France
Spain
China Premium
Italy
Romania
Japan
China
Sinter
India
10%
13%
46%
South America
Brazil
4%
Argentina
India
South Africa
Hoeganaes Sinter
Market shares
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GKN CAPITAL MARKETS DAY 21 MAY 2013
Market
dynamics
GKN Hoeganaes
22%
Hgans
QMP
Kobelco
JFE
PM growth
outperforms markets
Market concentration
ongoing financially
strong global
technology players
preferred
Mega-platforms are
growing opportunity
for global players
Sinter market
Sumitomo
Fine
Sinter
Hitachi
Metaldyne
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GKN CAPITAL MARKETS DAY 21 MAY 2013
9%
Ford
Hoeganaes
17%
6%
GM
ZF
5%
Fiat Chrysler
4%
Non
Volkswagen
Automotive
3%
Hilite
Linamar
PM sales by region
Sinter North
America
36%
Sinter Asia
and South
America
12%
4%
3%
62%
Bosch
2%
Other
Sinter
Europe
35%
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GKN CAPITAL MARKETS DAY 21 MAY 2013
Million Vehicles
60
Brasil
China
Russia
Mexico
India
50
40
30
20
10
0
2013
2018
India
Today # 1
Extending Capacity
New Greenfield plant under
review
Brazil
China
Today # 7 2018 # 2
Expansion of existing facility
New plant opening Q4/2013
Develop powder capability
Today # 2
Plan for Expansion in 2014
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Operational excellence
Every day we .
Every day we .
Quality
Value streams
Continuous
improvement
60
50
40
30
20
10
0
Cover inflation
Margin progress
100%
75%
50%
25%
Cost leadership
0%
ppm
implemented
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GKN CAPITAL MARKETS DAY 21 MAY 2013
planned
Tecumseh Supplier
Award 2012
Safety Award (by
professional associat.
of wood and metal)
50 Million Synchronizer
Hubs in 2012
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GKN CAPITAL MARKETS DAY 21 MAY 2013
Energy efficiency
Renewable energy
Environmental
legislation
Electrification
Light weight
Alternative
propulsion
Technology trends
Highly efficient
powertrains
PM applications
Differential gears
VVT (Variable
Valve Timing)
Electric Power
Steering (EPS)
systems
Softmagnetic parts
Hydrogen storage
Transmission gears
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VVT
9.6%
Start-stop
19.9%
EPS systems
8.4%
7+ speed
transmissions
22.8%
40
35
30
25
20
15
10
5
0
2012
2013
2014
2015
2016
2017
2018
Increasing spend in
engineering from 3% of
sales to 4%
50 customer TechDays
Fotos TechDays
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Unique materials
Technically enhanced
powders (TEP)
Advanced processes
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One-way clutch
Unique joining /
Creative design
Differential
gears
Soft magnetic
components
Creative designs/
Advanced processes
Hydrogen purification
Unique material porosity
Advanced processes/
Extreme forming
2018
2006
Highly complex
shapes
Aluminium cam caps
Unique material /
light weight
Sensor fixtures
Extreme forming/
Advanced processes
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Creative design /
Advanced processes
Including Additive
layer
Extreme forming
Net shape
Net shape
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PM Market
2013
104
2018
5.6
m
83
4.3
2013
2018
ROIC
>20%
Margin range
9% to 11%
Design for PM
Selective business wins
Operational continuous
improvement
Business
performance
Strong cashflow
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GKN CAPITAL MARKETS DAY 21 MAY 2013
Balanced investment