#1Melrose Buy Improve Sell Melrose Industries PLC Investec conference 16 November 2021 Strictly private and confidential#2Executive summary I Melrose ■ ■ ■ Buy, Improve, Sell Nortek largely sold and value doubled, GKN being significantly improved Aerospace seeing better trends, operational performance improving Buy Improve Sell Automotive and Powder Metallurgy restructuring well progressed; all projects underway. Underlying demand strong and on track to hit margin targets when supply returns Cash generation remains positive and the balance sheet is more conservative than usual with some spare capacity Poised for further value creation 2#3Melrose key financial numbers: sensibly conservative positioning Melrose 1. Balance sheet well placed with spare capacity when the time is right I Net debt¹ £1,029m Buy Improve Sell 1 Leverage ¹ 1.5x Proforma net debt¹ of £1,029 million and proforma leverage ¹ of 1.5x, including the £729 million Return of Capital (but excluding the Nortek Control proceeds) 1. Described in the glossary to the 2021 Interim Financial Statements, released on 2 September 2021 3#4Melrose key financial numbers: increasing momentum Melrose 2. Increasing momentum: significant upside potential in the continuing businesses Buy Improve Sell I ■ Melrose margin target Businesses sold in 2021 (average)³ Continuing businesses (average) Continuing businesses Average upside ¹ from H1 margins to margin targets c.5 ppts Average sales recovery to 2019 level Significant upside potential in the continuing businesses This keeps Melrose shareholders invested in high rates of return 1. Represents H1 2021 operating margins versus announced target margins. 2. Represents uplift in profit required to reach target operating margins on 2019 sales 3. Includes Nortek Control (contracts exchanged on 23 August 2021) 19% Based on 2020 revenue 2 Resulting average profit potential uplift² c.2.5x 1 Continuing businesses (83%) 2 Businesses sold in 2021 (17%) ³ 4#5Melrose key financial numbers: good margin progression Melrose 3. Margin progression: Automotive & Powder Metallurgy well advanced Aerospace Automotive Powder Metallurgy Target operating margins Buy Improve Sell 10% 1 >10% 14% % of required projects already underway c.50% 100% 100% ² Half the required projects have started, the rest to commence in H2 this year All required projects fully underway, ahead of plan All required projects fully underway, ahead of plan All the required restructuring initiatives to achieve the target margins in Automotive and Powder Metallurgy are fully underway. Target margins on track to be delivered when supply returns Half of the projects in Aerospace required to achieve the target margin are underway. The remaining c.50% of projects are identified, and due to commence in H2 2021 1. Assuming only a partial market recovery, 12% assuming a full market recovery to 2019 sales levels 2. Projects required to achieve operating margin target in Powder Metallurgy, excluding the investment in Hydrogen Storage Technology 01 5#6Melrose key financial numbers: GKN & Nortek both highly cash generative Melrose 4. Strong cash generation since the GKN acquisition from all businesses Total Melrose cash flows since GKN acquisition: Buy Improve Sell £3.4bn Opening net debt¹ Leverage ¹ c.2.5x Total cash inflow £3.5bn £2.5bn Disposals £1.0bn Free cash inflow ¹ Net debt 'repaid' excluding disbursement to shareholders. £1.1bn returned to shareholders since GKN £3.5 billion total cash inflow since GKN acquisition: £2.5 billion of disposal proceeds (excluding Nortek Control) £1.0 billion of free cash flow from the business post all costs (see next slide) 1. Described in the glossary to the 2021 Interim Financial Statements, released on 2 September 2021 £1.0bn current proforma net debt¹. 1.5x proforma leverage ¹ 6#7Melrose key financial numbers: GKN & Nortek both highly cash generative (continued) Melrose 4. Strong cash generation since the GKN acquisition from all businesses (continued) Free cash inflow¹ since GKN acquisition £1.0bn Buy Improve Sell Total 1. 2. 3. £0.8bn 1 GKN £0.6bn Nortek² Use of £3.5 billion total cash generation since GKN acquisition: £1 billion: Central costs, tax & interest £0.4bn 1 Return to shareholders £1.1bn (31%) 2 Debt reduction £2.4bn (69%) GKN has generated £1.7 billion of gross cash inflow since ownership (120% profit conversion to cash post capex) which has more than self funded its £0.5 billion of restructuring costs and £0.4 billion³ of pension contributions, giving £0.8 billion of total net free cash inflow from GKN in Melrose ownership so far Total cash inflow Melrose has generated £3.5 billion of total cash inflow since the GKN acquisition, consisting of £1 billion of free cash inflow and £2.5 billion of proceeds from disposals (excluding Nortek Control) Use of proceeds ■ Currently debt reduction has been prioritised with £2.4 billion (69%) of the total cash inflow being used to lower debt and £1.1 billion (31%) returned to shareholders. There is room for a further Capital Return next year Described in the glossary to the 2021 Interim Financial Statements, released on 2 September 2021 Nortek cash generation of £0.6 billion since GKN acquisition. During Melrose ownership Nortek has generated over £0.7 billion of cash after all costs Includes £0.3 billion of contributions to GKN UK pension schemes and £0.1 billion to pension schemes in the rest of the world as at 30 June 2021 7#8Melrose business portfolio Strong market position Melrose Recovering markets Margin expansion opportunity Sustainable technology Buy Improve Sell ■ Aerospace Leading global tier one supplier Strong positions on major civil and defence platforms ■ Civil market recovering, led by narrowbody demand Defence demand remains strong Around half of required restructuring underway Momentum for significant operational gains (quality, delivery, productivity) Improving existing fleet efficiency Developing next generation of greener aircraft ■ ■ ■ I Automotive ■ #1 in Driveline with technology leadership Supplies 90% of OEMs, 50% of global vehicles Sales currently constrained by semi-conductor shortage Strong underlying consumer demand, especially for EVS All restructuring projects underway Transformation opportunity greater than expected on acquisition ▪ Leading EV drive system technology Significant investment into full range of eDrive system capabilities ■ #1 in supply of precision powder metal parts ▪ #2 in powder metal production ■ Powder Metallurgy ■ Sales currently constrained by semi-conductor shortage Strong industrial demand and auto recovery expected All restructuring projects underway Focused in few remaining non- performing areas Compact and safe hydrogen storage solutions Commercialising additive manufacturing Plus Ergotron, a leading manufacturer of digital display mounting, furniture and mobility products 8#9Sustainable technology Melrose Aerospace Improving efficiency and sustainability of current aircraft: Wing of Tomorrow Buy Improve Sell Additive manufacturing air cases Developing next generation of alternative power aircraft: Alice electric aircraft H2GEAR hydrogen propulsion Automotive Producing driveline solutions tailored to electric vehicles: High efficiency, high torque, low NVH sideshaft Developing a range of eDrive systems for electric/hybrid vehicles: 2-in-1 eDrive system 3-in-1 eDrive system Powder Metallurgy Commercialising additive manufacturing (AM) across sectors: 12 Developing breakthrough sustainable storage solutions: COMPACT Intricate metal powder AM Providing focus and investment to make our businesses sustainable and valuable Forecast 3D plastic AM GKN Hydrogen 9