Energy Reduction Initiative The GKN Way

GKN has more than 40% of the global market for CV joints Our Product Steel is the starting material Forgings are made through warm and cold forming Forgings are machined and assembled into CV joints GKN has more than 40% of the global market for CV joints

HR-EHS-014 / January 2, 2001 / Rev. Date: 5/5/04

OUR SIGNIFICANT ENVIRONMENTAL ASPECTS & IMPACTS ENERGY CONSUMPTION WATER CONSUMPTION WASTE GENERATION ISO14000 ENVIRONMENTAL MANAGEMENT SYSTEM

THE GKN Energy Policy - Background GKN Executive Committe has authorised the issue of the GKN Energy Policy released on 14th September 2005 The GKN group annually spends £79m on energy, which is equivalent to 36% of profit Each location must formulate its own strategy. The name of 1 person responsible for coordinating the project must be reported by Friday 17th March 2006. Review the Energy Action Plan as produced by GKN plc. Formulate and report Actions relevant to the location by Friday 24th March 2006.

GKN GROUP- Energy Policy As part of our stated principles for delivering outstanding products and services to our customers, for maintaining the well being of our employees and for delivering superior returns to our shareholders, GKN is committed to long- term sustainability. Optimising the Group’s consumption of energy is an essential element of this. Our policy is: 1. to improve progressively energy efficiency at all levels in the Group; 2. to have clearly defined energy management roles, responsibilities and plans within an environmental management systems (EMS) framework based on the ISO 14001 standard; 3. to set achievable targets for reducing energy consumption per unit of production in all our operations; 4. to purchase energy at the most competitive rates, to leverage energy purchases across the Group to obtain maximum commitment from suppliers and to develop supply side hedging strategies to minimise exposure to market fluctuations; 5. to ensure that energy consumption is taken into account when specifying new plant and equipment and that significant consumers of energy have energy meters with an output compatible with modern energy management systems; (continued)

GKN GROUP- Energy Policy (cont.) 6. to ensure that energy efficiency receives adequate resources and investment in order to meet the Policy objectives and targets; 7. to include energy awareness and management in employee training programmes; 8. to minimise the environmental impact of our energy consumption by exploring ways of using low carbon technologies, by maximising the use of renewable energy sources where economically feasible, by seeking to reduce progressively emissions of carbon dioxide relative to production and by abiding by international agreements and protocols; 9. to communicate the achievements with external bodies and stakeholders; and 10. to influence our supply chain to pursue improvements in energy efficiency and to adopt low carbon technology. As a broad strategy for achieving these Policy objectives, we will continually monitor and review our performance in energy management and target achievements throughout all our operations.

GKN Energy Action Plan GKN Energy Action Plan (See attached file) Summary of key Steps outlined: GKN Energy Action Plan (See attached file) Key areas for Review outlined include: Energy management & awareness Heating Use of fast acting doors Lighting & management of office equipment 1. Get commitment 2. Understand Energy Use 3. Form a Site specific Action Plan 4. Implement the Plan 5. Monitor Progress and Update the Plan

GKN Driveline Driveshafts ENERGY TARGET Topic Measure Why Target Energy kWh Energy (kWh) immediately illustrates the quantity of raw materials used to generate the energy OR it can be translated into the environmental KPI of CO2 emissions 5% reduction per annum To achieve the target reduction the key areas for review include: Energy management and awareness (for all operations and activities) as well as the areas of heating, use of fast-acting doors, lighting & management of office equipment.

Corporate target: 10% reduction by 2005 from 1999 baseline 5% annual reduction, thereof

Energy—CO2 Relationship

Transportation CO2