#1Melrose Buy Improve Sell ●********** ********** ●*** coccosecc O TRA. T. SWL 1500KG F RACK 15 RIB 39 GKN Aerospace Clear path to the upgraded margin target with excellent cash flow dynamics 8 June 2022#2Melrose Disclaimer Buy Improve Sell This presentation has been prepared by or on behalf of Melrose Industries PLC ("Melrose"). The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree to the conditions set out below. This presentation (including any oral briefing and any question-and- answer session in connection with it) is for information only. 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Melrose does not undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements ntained in this presentation. Certain financial data has rounded. As a result of this rounding, the totals data presented in this presentation may vary slightly from the actual arithmetic totals of such data. 2#3Melrose Content I ■ Buy Improve Sell Key messages from the Melrose CEO, Simon Peckham Aerospace CEO, David Paja Closing remarks from the Melrose CFO, Geoff Martin 3#4Buy Improve Sell Melrose Key messages from the Melrose CEO 4#5Melrose Key messages from the Melrose CEO ■ ■ ■ ■ Buy Improve Sell Melrose has doubled shareholders' money on every completed deal; it will take longer for GKN, but the significant opportunity is still there GKN is responding to the same actions just like all previous deals The improvement being achieved 'under the bonnet' is as required and well advanced, but hidden by global macro issues At 2019 revenue levels, Melrose Group's profits can be 3x higher than 2021 profit levels The equity upside has been substantially de-risked operationally The value realisation stage is moving closer, with Aerospace the longest potential hold 5#6Melrose GKN Aerospace - higher potential I ■ ■ ■ ■ Buy Improve Sell Aerospace has the highest potential equity return of all the GKN businesses Aerospace is rapidly being restructured and its markets are improving An upgraded operating margin target is announced today The Aerospace long-term cash flow dynamics are excellent for shareholders An experienced management team is in place and all required actions are underway or complete Melrose knows how to realise the full potential of Aerospace for shareholders 6#7Buy Improve Sell Melrose GKN Aerospace Clear path to the upgraded margin target with excellent cash flow dynamics 7#8Melrose Executive summary - higher potential Leading Tier 1 supplier in the aerospace industry - highly resilient market position Product on over 90% of commercial aircraft¹ with entrenched customer relationships 95% of revenue from industry leading positions² ■ I ■ Buy Improve Sell ■ Well positioned for market recovery and growth Blended revenue CAGR of 7% to 2030 Faster recovery and higher growth to 2025 (>10% CAGR) Aftermarket rising to 50% of the Engines business by 2030 I I ■ Strong, long-term cash generation Expected lifetime cash inflow of c.£18.5bn on 19 engine contracts (NPV³ of c.£5bn), these contracts represent less than 20% of Aerospace revenue today (5% of Melrose) I For >70% of revenue GKN Aerospace is the single source supplier, providing excellent long-term visibility Excellent technology portfolio focused on sustainability Upgraded operating margin target to 14%+ Accelerated progress on restructuring with all projects launched and moving rapidly Clear path to 14%+ operating margin on a full market recovery I I 1. GKN Aerospace engine or airframe content onboard aircraft over 100-person capacity produced today 2. Leadership position means number 1, 2 or 3 in the global market, by sales, in aerostructures, aerospace engine systems and aerospace electrical distribution 3. Using a foreign exchange rate of USD:GBP of 1.30:1 and calculated using the midpoint between a debt related discount rate of 5% (NPV c.£7bn) and a GKN Aerospace pre-tax weighted average cost of capital discount rate of 10% consistent with data in the Melrose Industries PLC 2021 Annual Report (NPV c.£3.5bn) 8#9Melrose GKN Aerospace today in numbers Buy Improve Sell 38 MANUFACTURING SITES 188 TT Ⓡ12 COUNTRIES ONBOARD 90% OF COMMERCIAL AIRCRAFT MADE TODAY¹ **** 95% REVENUE FROM INDUSTRY LEADING POSITIONS² FOR >70% REVENUE GKN AEROSPACE IS THE SINGLE SOURCE SUPPLIER A trusted and sustainable partner in the sky 1. GKN Aerospace engine or airframe content onboard aircraft over 100-person capacity produced today 2. Leadership position means number 1, 2 or 3 in the global market, by sales, in aerostructures, aerospace engine systems and aerospace electrical distribution 3. Total 2019 revenue (£3,852m) adjusted for divestments of Fokker Services, Fokker Techniek and Santa Ana and the future site closure of St Louis 4. Total 2021 revenue (£2,543m) adjusted for divestments of Fokker Services, Fokker Techniek and Santa Ana and the future site closure of St Louis 5. Figure relates to GKN Aerospace plus external funding for sustainable aviation facilities and programmes since 2020 £3.4bn £2.3bn 2019³ 20214 2030 REVENUE RECOVERY £100m JOINT INVESTMENT IN SUSTAINABLE TECHNOLOGY5 9#10Three business lines Customers 2021 revenue¹ Products End market Melrose Buy Improve Sell Engines Engine OEMs £850m Structural and rotating parts, aftermarket, repair & overhaul services, space launchers 65% civil, 35% defence Civil OEMs Civil Civil ARBUS £800m Wing, fuselage & empennage structures, front and cabin windows, electrical distribution systems Leading positions in core markets 1. Total 2021 revenue (£2,543m) adjusted for divestments of Fokker Services, Fokker Techniek and Santa Ana and the future site closure of St Louis 5087 Defence OEMs £640m Defence Composite & metallic structures, electrical distribution systems, landing gear and canopies Defence 10#11A strong portfolio of products and customers Revenue by business line Defence Melrose 28% Buy Improve Sell 37% Engines² Civil 35% Balanced business mix Revenue by customer Other NGC Safran NHI Rolls- Royce Sikorsky 1. Revenue by region refers to 'shipped from' region 2. 65% civil, 35% defence 3. All based on 2021 figures GE Boeing Airbus Pratt & Whitney Lockheed Martin Diverse customer portfolio Revenue by channel OEM OEM Today 90% 2030 ~80% Aftermarket 10% 20%+ Aftermarket Aftermarket in Engines to be -50% by 2030 Revenue by region¹ North America 29% China 22% UK Good customer and platform positions; expanding aftermarket and Asia footprint Other Asia 3% Global footprint Europe (ex. UK) 46% 11#12Melrose Content on 90% of commercial aircraft¹ currently made PRO Electrical distribution Transparencies Buy Improve Sell ■ ■ ■ Cockpit windscreens Cabin windows Defence canopies Landing gear Aero surfaces Winglets Movables & control surfaces Engine structures Nacelles Fan cases ■ 1. GKN Aerospace engine or airframe content onboard aircraft over 100-person capacity produced today 2. Maintenance, repair and overhaul Major structural assemblies Wing spar & fixed trailing edge Fuselage ■ ■ ■ Blades & vanes Manufacture Aftermarket (MRO²) I Empennage Shafts & low pressure turbine cases ■ Anti-icing & advanced coatings Lightweight solutions Business jets & rotorcraft Wing structure Engine structure Military ducts 12#13Melrose Optimising the global manufacturing footprint 38 Manufacturing sites 17 Americas, including 2 in Mexico 13 Europe 8 Asia Pacific, including 3 in China¹ 4 Technology and innovation centres Buy Improve Sell Bol Consolidating North America and Europe footprint, expanding capacity in Asia 1. Third site to open in China by end 2023 but already included in the baseline Total number of sites 2019 51 TODAY 38 END 2023 33 13#14Melrose Experienced leadership team Name CEO Buy Improve Sell David Paja Business line presidents Position John Pritchard Chief Executive Officer Joakim Andersson President - Engines Shawn Black President Civil President Defence Experience 30 years 25+ years 25+ years 25+ years .APTIV. Honeywell Valeo VOLVO AERO GN LEONARDO ORS COBHAM UNITED STATES MARINE Name Functional leaders Gwen Rouy-Poirier Chief Financial Officer Gordon Pitman Russ Dunn Barbara Buttinger Julie Smyth Wil Logsdail Position Chief Human Resources Officer Chief Technology Officer Chief Procurement Officer General Counsel - Legal, Risk & Compliance Chief Information Officer Focused on sustainable value creation Experience 20+ years 25+ years 20+ years 25+ years 25+ years 30+ years Honeywell AkzoNobel AIRBUS BENTELER BAE SYSTEMS CN 14#15Buy Improve Sell Melrose Clear path to upgraded operating margin target of 14%+ 15#16Melrose Re-engineered the way we operate Buy Improve Sell Before 'One Aerospace' transformation ● ● ● Organised by product group / geography Each site acting as a different company Onerous contracts and overcapacity Subpar operational performance Administrative challenges, limited synergies Today Organised by end market segment Fully integrated, one face to customers and suppliers Renegotiated contracts, rationalising footprint Lean Operating Model driving continuous improvement Professionalising Finance, HR, IT and Legal One Aerospace strategy delivering results 16#17Upgraded operating margin target Full-year revenue¹ Melrose Buy Improve Sell Operating margin (%) 10.6% 2019 £3.4 bn 1 0.5% 2020 £2.4 bn 2 4.4% 2021 £2.3 bn I 1 Details on following pages I ~4%² Further business improvement actions 6%+ Volume increase 14%+ 3 Full potential 1 Adjusted costs due to COVID-19 1. Total revenue adjusted for divestments of Fokker Services, Fokker Techniek and Santa Ana and the future site closure of St Louis 2. Based on 2019 sales ■ Flexed down costs to match OEM demand Achieved breakeven in 2020 on 27% lower sales 24ppts operating margin expansion in 2021 on broadly flat sales 3 Clear path to grow operating margin to 14%+ on a full market recovery Business improvement actions substantially complete by the end of 2023 17#18Melrose Further business improvement actions - net savings Buy Improve Sell Commercial £45m Incremental savings Portfolio actions Price/value alignment Supplier consolidation ■ ■ Restructuring £50m Incremental savings Footprint rationalisation Product Centres of Excellence Best cost country growth Plans well underway and on track 1 I I ■ Operational excellence £50m Incremental savings Reduced cost of poor quality Lean Operating Model Operational synergies Good contractual protection against inflation, initiatives to mitigate remaining exposure 18#19Melrose All restructuring projects launched and moving rapidly Buy Improve Sell UK Nordics Netherlands US Other ■ ■ ■ ■ ■ ■ I Closed: Kings Norton site Downsize: Norway site Refocus: Creation of distinct and separate product centres of excellence in Sweden and Norway Close: Helmond and Hoogerheide sites Close: St. Louis, Amityville and Manchester sites Downsize: El Cajon, Orangeburg Divested: non-core Santa Ana facility (complete) Divested: Fokker Services and Fokker Techniek Closed: sub-scale Thailand site Transforming footprint down to 33 manufacturing sites Complete ~50% complete, on track Announced Q1 2022, on track Announced Q1 2022, on track Complete 19#20Melrose Healthy growth with faster rebound to 2025 Buy Improve Sell Expected growth rates¹ applied to GKN portfolio CAGR 2021 to 2030 Engines ~10% Civil ~9% Defence ~2% ~7% blended GKN Aerospace CAGR to 2030 Faster rebound to 2025 (>10% CAGR) 1. Growth rates based on Cirium, Teal and US Congressional Budget Office applied to GKN portfolio I I Key growth drivers Flight hour recovery OE build rates OE build rates Defence budgets Tracking to market growth on refocused business 20#21Buy Improve Sell Melrose Premium Engines business with excellent long-term cash flows 21#22Core products Engineered components Fan blade repair & assemblies LITE Premium Engines business Defence engine support Space launcher Melrose Buy Improve Sell OE 66% 2021 revenue by business model Risk and revenue sharing partnerships (RRSPs) 47% Governmental Long-term agreements 53% Rolls-Royce Safran MRO shops Strong aftermarket growth Today £850m GE Aftermarket 34% OE 50% Pratt & Whitney Customer segments 2030 Defence 35% O ■ Civil 65% ■ Strong position today Differentiated products, processes & IP Technology, design and build partner 90+ years engine experience Strong aftermarket position 40-year unique portfolio of RRSPs Fighter engine prime ■ ■ Aftermarket 50% ■ ■ ■ Unlocking future value Secured aftermarket cash flow from RRSPs set to increase Significant growth in high-quality aftermarket repair business ahead Deployment of game-changing additive manufacturing technology 22#23Flight hours returning strongly Million 250 200 150 100 Melrose 50 0 Buy Improve Sell Actual Engine flight hours Source: Cirium CAGR -10% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Narrowbody Widebody Flight hours rebounding strongly Continued flight hours recovery expected in coming years Full recovery during 2024 Engines CAGR broadly in line with the market to 2030 Increasing aftermarket RRSP programmes increasingly moving to aftermarket phase Parts repair and engine aftermarket seeing strong growth as fleet and utilisation increases 23#24Multipronged strategy to deliver full business potential 2021 GKN Engines revenue Governmental partnerships Repairs Melrose Long-term OEM agreements Buy Improve Sell £850m RRSPS Parts repair growth Additive fabrication technology insertion Governmental systems growth RRSP growth 2030 GKN Engines revenue Governmental partnerships Repairs Engine business on track to unlock growth opportunities Long-term OEM agreements RRSPS 24#25Melrose RRSP engine programmes reaching harvest period OEM decision to Programme invest launch Buy Improve Sell Technology development 7 years Market requirements - New methods - New materials - Airframe integration - Engine specification - Investment - Entry into service Product development 7 years Define engine Meet requirements - Validation programmes - Certification programme OE production 15 years - Produce engine - Improve engine Production ends Aftermarket services 30 years Fleet management - Engine upgrades - Overhaul Repair Secured aftermarket 17 out of 19 RRSP engine programmes in cash generation phase 25#26Melrose ■ ■ ■ ■ I I ■ ■ ■ Risk and revenue sharing partnerships (RRSPs) Risk and revenue sharing business model Life-of-programme commitment GKN contributes an agreed percentage of total annual engine programme costs, and receives the same percentage of total annual engine programme revenue GKN gains access to OEM aftermarket cash flows GKN cash flow turns positive as engine enters service GKN Aerospace value to partnership Buy Improve Sell Technology solutions to develop new, more efficient engines Ability to continuously improve engine performance over lifetime Financial strength to fund development phase Operational expertise within selected core products Trusted relationship with major OEMs Cash profile of GKN's 19 RRSPs £m Cash generation phase RRSP R RRSP S Product development RRSP RRSP Q RRSPPSP N Production RRSP RRSPIRRSP H RRSP K RRSP J RRSP L RRSP M RRSP E RRSP D RRSP G RRSP F Aftermarket Partnership model provides access to long-term, secured aftermarket cash flows RRSP B RRSP A 17 of 19 RRSPs in cash generation phase 26#27Melrose Example: Pratt & Whitney GTF engine Buy Improve Sell GTF engine 1. GTF highlights from Pratt & Whitney website Two variants: 4% of total programme revenue on one, 7% on the other GTF highlights¹ I I ■ ■ ■ Powers industry-leading A220 and A320 families 1,100+ aircraft in service with 58 airlines GKN Aerospace a key partner Provide fabricated structures with engine mounts Design and build responsibility across multiple variants Insertion of additive technology Established member of P&W repair network Participating in next generation technology demonstrator ■ 80+ customers with 10,000+ orders and commitments 3 million+ flights and 11 million+ engine flight hours 27#28£m 700 600 500 400 300 200 100 0 1980 -100 Melrose Outstanding future cash flows from secured aftermarket Buy Improve Sell 1985 2. 3. 4. 5. Firm orders² Forecast orders³ Investment 1990 GKN Engines cash flow outlook¹ 1995 2000 2005 2010 Significant upturn in cash flow underway 2015 2020 2025 2030 Net present value of future expected cash flow5 £5bn 2035 2040 2045 2050 2055 2060 ■ I ■ ■ 19 RRSP programmes across OEMs 17 programmes now cash positive annually 47% of Engines sales from RRSPs, 17% of 2021 GKN Aerospace4 High share of narrowbody engines at the optimum place in their lifecycle £18.5bn total expected cash flows from 2022, with net present value of c.£5bn5 1. Pre-tax and excluding a nominal amount of maintenance capex Firm orders include aftermarket on delivered engines and both the original equipment sale and associated aftermarket of published engines orders Forecast orders represent the original equipment sale and associated aftermarket of expected future engine orders on current programmes Total 2021 revenue (£2,543m) adjusted for divestments of Fokker Services, Fokker Techniek and Santa Ana and the future site closure of St Louis Using a foreign exchange rate of USD:GBP of 1.30:1 and calculated using the midpoint between a debt related discount rate of 5% (NPV c.£7bn) and a GKN Aerospace pre-tax weighted average cost of capital discount rate of 10% consistent with data in the Melrose Industries PLC 2021 Annual Report (NPV c.£3.5bn) 28#29£bn 25 20 15 10 Melrose 5 0 Well positioned for next-generation single-aisle engines Next-generation engine market forecast¹ 2030 2031 2032 Significant market opportunity ahead 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 GKN AEROSPACE Next-generation ducted engine Buy Improve 1. Next-generation engine market forecast based on Cirium flight data combined with customer engine maintenance data Sell cfm ■ Next-generation un-ducted engine Technology demonstration partner in next-generation Pratt & Whitney GTF programme GKN Aerospace bringing expertise in design of complex load-carrying statics Expected to be 100% Sustainable Aviation Fuel (SAF) certified Technology demonstration partner in new CFM RISE programme A partner in both major engine development programmes GKN bringing expertise on design for function using additive fabrication Target 20% fuel-burn reduction versus LEAP engine Use of SAF and potential for hydrogen 29#30Expanding the parts repair business. Melrose 9000 8000 7000 6000 Shop visits 5000 4000 3000 2000 1000 Buy Improve Sell 0 Projected engine shop visits¹ 11% CAGR Important element of 1. Based on Cirium flight hour forecast data for target platforms CFM56, V2500, LEAP & GTF aftermarket growth to 50% by 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 GKN Aerospace growth strategy 1. Expanding Repair offering £100m+ GKN Aerospace repair revenue growth by 2025 2. Executing Repair new product introduction programme 3. Establishing Unique repair capabilities for blisks and integrally bladed rotors (IBRs) 30#31Technology move to additive manufacturing Melrose Castings & forgings O Buy Improve Sell Advanced fabrications Additive solutions offer more sustainable manufacturing, lower lead-times & reduced waste 1. Total forecast sales added from 2021 to 2025 £150m+ increased sales by 2025¹ Applying future technology "today" on current long-term agreement business Mounts Cases Housings Ducts 31#32■ Melrose OEM manufacturer in defence engines. 290 RM12/ Gripen C/D Responsibility for engine upgrades & aftermarket Started support in 1980 Engine entering sunset phase in ~2030 Retain export aftermarket in 2030s Buy Improve Sell ■ ■ RM16 / Gripen E GKN system-level responsibility for engine £1.5bn forecast programme revenue Building up capability ahead of launch Programme lifespan of 30+ years ■ Future Combat Air System Swedish national champion Large market opportunity In technology development & demonstrator phase Extending the strategic relationship with the Swedish Ministry of Defence and Air Force 32#33Buy Improve Sell Melrose Strong Civil Airframe business, well positioned on growth platforms 33#34Core products Wing structures / surfaces Electrical distribution Strong Civil Airframe business, well positioned on key platforms T Melrose Empennage and fuselage Transparencies TET Buy Improve Sell Widebody 2021 revenue Business jet £800m Dassault Gulfstream Bombardier Customer segments Other O Single-aisle Boeing Airbus ■ ■ ■ ■ ■ I ■ ■ Strong position today Great product portfolio Global industrial footprint Well positioned on single-aisle aircraft Strong widebody and business jet content ↓ Unlocking future value Eliminate industrial overcapacity Expand business in China Develop modular manufacturing process for next-generation aircraft Grow with electric aircraft start-ups 34#35Major volume decline driven by Covid; single-aisle leading recovery 2500 2000 1500 1000 500 Melrose 0 Source: Teal Buy Improve Sell Actual -50% decline OEM deliveries ||| 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 7,090 CAGR -9% Narrowbody ■Widebody 6,860 Aircraft deliveries 2021-2040 6,030 5,770 2,970 2,450 China Europe North Asia Middle Latin America America East Source: Airbus Global Market Forecast 2021 - 2040 1,360 1,080 CIS Africa Recovery underway 50%+ decline in deliveries during Covid Strong global order book of 13,000+ aircraft Industry focus on supply chain readiness Civil CAGR broadly in line with the market to 2030 Given portfolio mix, fully recovered during 2025 Change in industry mix Single-aisle exceeding pre-Covid levels by 2023 Widebody only reaches 70% of pre-Covid levels China will drive long-term demand ~20% of global aircraft deliveries to China to 2040 35#36Melrose Flagship platform: Airbus A320 family 83% of Airbus backlog is A320s A321AIRBUS PA Buy Improve 1. Shipset value for airframe components only. Shipset can be significantly higher depending on engine variant Sell APBUS £420k¹ GKN Aerospace aerostructures content per A320 Market-leading single-aisle family A320 family comprises the vast majority of Airbus' future order book ■ ■ Enabled by GKN Aerospace technology GKN Aerospace provides content from four countries: UK, Germany, US & China ■ Well positioned to support industry ramp- up of efficient narrowbody aircraft ■ Technology includes: - Wing: primary structure assembly and components Electrical distribution: within wings and fuselage Empennage: vertical and horizontal tail surfaces Windows: flight deck windows 36#37Melrose Optimising our global footprint to accelerate growth Capacity Optimisation Right-sizing US & Europe footprint Sites 2020: 19 2025: 11 Utilisation 2020: 68% 2025: 95%+ Buy Improve 1. 2030 revenue includes £144m of sales from the joint venture that we participate in with a 40% share Sell Growing our revenue with substantially leaner footprint Expanding in China Footprint 2020: 12,000m² 2030: 135,000 m² Revenue¹ 2020: £60m 2030: £270m+ 37#38COMAC and AVIC joint venture¹ to drive rapid revenue growth in China Two wholly owned sites today Wiring assembly, Langfang (1997) Melrose Front & cabin windows, Jingjiang (2021) 12,000 m² 850 people Buy Improve Sell New joint venture site to open in 2023 100,000m² site opening end of 2023 Aerostructures JV with COMAC and AVIC, Jingjiang 1. GKN Aerospace has 40% share in joint venture 2. 2030 revenue includes £144m of sales from the joint venture that we participate in with a 40% share China to become the largest aviation market in the 2030s COMAC >1,300 orders for single-aisle aircraft Joint venture with COMAC and AVIC unlocks path to indigenous Chinese market and global exports GKN Aerospace China revenue² Today ~£60m Joint venture with COMAC and AVIC underpins future growth in China 2030 £270m+ 38#39Melrose Developing next-generation manufacturing technology (2030+) Current manufacturing process - A350 Wing Batch oven Vaak in An Large dedicated assembly Future manufacturing process Out of oven process KUKA Modular generic assembly Buy Improve 1. Long-term benefits not completed in full until after 2030 Sell ■ ■ ■ Large dedicated capex Inflexible to rate and mix Prone to under-absorption Small generic capex Modular deployment Flexible to rates Benefits¹ 1. Production cost -30% 2. Cycle time -60% 3. Energy usage -80% 39#40Melrose Airbus 'Wing of Tomorrow' provides path to commercialisation Airbus 'Wing of Tomorrow' ▪ Joint development programme with Airbus Target next-generation Airbus aircraft ■ ■ ■ ■ Buy Improve Sell Supported from two Global Technology Centres in the UK and The Netherlands £25m joint investment between GKN Aerospace and Aerospace Technology Institute Commercial opportunity with Airbus of £2.3bn Key milestones 2018: GKN Aerospace joined programme H1 2019: delivery of 4-metre long demonstrator tool Q3 2021: delivery of first 18-metre wing spar 2022: delivery of second and third spars, proving performance 2023-2024: manufacturing rate demonstration 2025: technology proven for next-generation wing ■ ■ ■ ■ ~£450k WoT content expected per A320 shipset Key to sustainability of next-generation aircraft 40#41Melrose Unlocking the opportunity from electric aircraft market Global partnerships Buy Improve Sell Eviation Alice Vertical VX4 NB82EV GKN system-level capability Integrated fuselage and electrical distribution system ■ GKN operating at start-up pace ■ ■ ■ GKN Aerospace led design and manufacture of fully integrated wing, tail and wiring for Eviation Alice ■ 14 months to first prototype Full design build, including material properties Embedded in customer teams First time right 1. Source: Roland Berger 2. Source: Deloitte, based on passenger and cargo advanced air mobility vehicles ■ Positioned to capture opportunity Supporting multiple electric aircraft customers across US, UK and Europe: Eviation Alice preparing for flight test Vertical VX4 established £4bn+ order book Lilium using our electrical distribution expertise Our lightweight composites and electrical distribution capability vital for start-up customers 7,000¹ passenger vertical take-off and landing (VTOL) vehicles operating by 2030 £115bn² advanced air mobility (AAM) market by 2035 41#42Buy Improve Sell Melrose Refocused Defence business, prioritising design-to-build 42#43Refocused Defence business on design-to-build Core Products Integrated structures Melrose N2808H Electrical distribution Buy Improve Sell 1 Transparencies Landing gear & Build- to-print 59% 2021 revenue Landing gear Other Transparencies Electrical distribution £640m Today Shift to 'design-to-build' Design- to-build 41% Boeing Defence NHI Integrated structures Build-to -print -30% Customer segments Other 5 Sikorsky 2030 Lockheed Martin Design- to-build ~70% ■ ■ ■ ■ Strong position today F-35 content of $2.5m per aircraft Key supplier to full range of US fighter platforms, including F-15, F-18 and F-22 Good content on vertical lift platforms: NH90, Blackhawk, Osprey and Apache Well-balanced business, supporting both US and European military Unlocking future value Optimising footprint and programmes to create a more focused and efficient defence business Maximise profitability from existing flagship programmes, F-35 and NH90 Aligning portfolio and core competencies to future markets 43#44$bn 850 800 750 700 650 600 550 500 450 400 Melrose Strong position on the leading defence platforms Actual US Department of Defence base budget I CAGR -2% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: US Congressional Budget Office Defence market remains healthy US defence budget is the same size as the next 11 global defence budgets combined¹ ■ ■ ■ F-35 order book ensures stability ahead Global F-35 deliveries valued above $15bn a year to at least 2030 ■ ■ Steady growth in US budget forecast, with ongoing global tension expected to lead to further increase in defence budgets Defence CAGR in line with the market to 2030 I GKN Aerospace's outstanding position on F-35 establishes technical and political credibility for next-generation fighters in Europe and US Strong European position for growth GKN Aerospace a national champion with Ministry of Defence (UK) and Ministry of Economics (NL) Partner in Tempest next-generation fighter Buy Improve 1. Source: Peter G Peterson foundation. Next 11 budgets relates to China, India, Russia, UK, Saudi Arabia, Germany, France, Japan, South Korea, Italy and Australia Sell 44#45Flagship platform: Lockheed Martin F-35 156¹ annual F-35 build rate to end 2030 $2.5m GKN Aerospace content per F-35 10% of GKN Aerospace's 2021 revenue from F-35 Melrose Buy Improve Sell 1. Lockheed Martin market statement World's dominant fighter platform Platform in ramp-up and delivery phase Total annual F-35 market value above $15bn I I ■ Enabled by GKN Aerospace technology Global approach with sites in US, Netherlands, UK and Norway all contributing World-leading technology, including: Metallic and composite structures Advanced canopy Electrical wiring harnesses Landing gear components ■ F-35 a critical platform for the US and 14 other ally countries ■ - 45#46■ ■ ■ Initiatives to develop a leading Defence business Melrose Reduce from 9 to 7 Defence-focused sites Leverage National Champion positions in Europe to secure further 'off-set' work Lean Operating Model to drive efficient performance Site optimisation Buy Improve Sell 22% reduction in sites Commercial optimisation I Increase market share in differentiated products: wiring, complex aerostructures, missile canisters and transparencies ▪ Exit or reprice underperforming programmes N190TC Enabling margin expansion ■ ■ Exploit technologies Increase R&D % of sales from 1% to 3% Capture government-funded development in US and Europe Technology insertion on next-generation platforms to drive growth Stronger Defence business will be 70% 'design-to-build' work by 2030 Drives high quality design-to- build work 46#47Melrose Buy Improve Sell Sustainable operations paving a route to net zero 47#48Melrose Operating in an environmentally sustainable way Buy Improve Sell Global strategy 1. Integrated reporting 2. Technology portfolio alignment 3. Five sustainability workstreams 4. Local sustainability champions 5. Clear targets and timeline Scope 1&2 emissions¹ % renewable energy Waste diverted from landfill R&D on sustainable technology % sustainable products 1. Scope 3 emissions currently being evaluated 2025 -20% 50% 95% 50% 50% 2030 -40% 75% 100% 75% 75% 2050 Zero 100% 100% 100% Civil 100% Civil Covers >30% of all employees Our Dutch and Swedish manufacturing footprints are today both powered by 100% renewable energy 60% reduction in material waste New additive manufacturing process for fan case mount ring promotes resource efficiency 48#49Fostering a safe, diverse and engaged culture Hazards Solved Melrose Near Miss Buy Improve Sell Lost time Minor Serious ■ ■ Safety¹ ↑ 50% increase in hazards solved vs 2021 Award-winning thinkSAFE! campaign Behavioural-based safety culture Step-change in performance Diversity & Inclusion - Six employee resource groups (ERGs): - 500+ Employee Resource Group (ERG) members PILTON Connected Women LGBTQ+ African Black Caribbean Neuro-diverse strengths Future GKN Veterans & Reservists Fourth cohort of 'Women's Leadership Development Programme' now running 1. Safety indicators show improved performances 2022 year-to-date vs 2021 performance 2. World-class engagement levels recognised by Gallup as companies within the top quartile of the Gallup Q12 EngageMe survey Engagement Defined culture principles 3.59 OWNERSHIP We work as a team, and each understand the importance of our own contribution. INNOVATIVE We are always aiming to improve, everywhere. =0. e Our 5 Principles 250% increase in training hours in 2021 vs 2020 Path to world-class engagement levels² SAFE Safety is our No. 1 priority. We keep each other safe every day. Pandemic 3.80 3.81 OPEN & HONEST We speak up and earn the trust of others by being open and honest. 3.96 RESPECT & CARE Everyone deserves our respect and care. +0.21 +0.01 +0.15 500,000+ training hours completed in 2021 2018 2020 2021 2022 2023 2024 Target 4.5 2025 49#50Melrose Ensuring an ethical supply chain SUPPLIER CODE OF CONDUCT At CKN Aerospace we always seek to operate to the highest ethical standards. We call this "doing the right thing" and we apply this principle to everything that we do yan dhe And if you nepra yg Tra p Puis T Toma pes ang coco Fa GEN AEROSPACE SODALED THE GRE 20 (K din Maigh standards of may here, practiqu way to devetigo ang thai nhi with our vikur Supliers and in w je dysho type of the Coo Contact W Peppere that you are al cay often cop with that poly supply Cole Cond you s blest Gribas plout busineswense and otherma de datin tejues bachas pos Doing the right thing-what we expect from you.... As a supplier tot Aerospace, you and your suppliers will ETHCALSTANDARDS amic Nogen any practicage beperian van hy P است و ماسه ده ام و - Nara www.gy Phon k WRACA SURS, Dys RECREAGE" CONTENRENDERIT Thenclubs? Gan Doing the right thing - what we expect from you... As a supplier to GKN Aerospace, you and your suppliers will: ETHICAL STANDARDS > Maintain high standards of integrity, honesty, professionalism and fair-dealing. > Not commit any act which may adversely impact GKN Aerospace's interests, reputation or good standing. > Conduct your business in an open and ethical manner, with respect for human dignity and rights. > Always have high standards of social responsibility. > Respect the integrity of any information we provide to you and only use it for the purposes for which it is provided. BRIBERY & CORRUPTION > Not engage in any practice which is, or might be perceived to be, corrupt or fraudulent. > Neither pay nor accept (nor tolerate anyone else paying or accepting) any bribes, 'kickbacks' or other similar payments or inducements. This includes facilitation payments made to facilitate or speed up official or governmental procedures. Risk Assessment Sign Code of Conduct Onboarding Training Buy Improve 1. EU Directive (EC) No 1907/2006 on chemicals and their safe use for the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Sell ■ ■ ■ I ■ ■ ■ Due diligence 20%+ reduction in suppliers from 2019 to 2021 Ethos of 'doing the right thing' Safeguarding human rights Protecting environment Adopt REACH¹ compliance Ensures adherence to conflict mineral laws Ongoing Procurement team training to ensure continuous improvement 50#51GKN Aerospace technology enabling the route to net zero Range wergy ********** *3331 misan aroma PIREUSE ZERCE AIRBUS Future propulsion 1. Figure relates to GKN Aerospace plus external funding for sustainable aviation facilities and programmes since 2020 Battery electric H₂ electric H₂ combustion Core technology & Sustainable Aviation Fuel (SAF) Strong investment in technology continued throughout the downturn GKN Aerospace position Electric engine fan development & electrical distribution expertise H2GEAR £54m H₂ fuel cell development H2JET H₂ combustion development project Lightweight composites and more efficient engines £100m¹ joint investment in sustainable technology since 2020 51#52H2GEAR £54m collaboration¹ project to develop & test H₂ fuel cell propulsion system by 2026 Led from Global Technology Centre in Bristol Fuel cell converts hydrogen into electricity, delivering 1 MW to power aircraft ■ Exploring hydrogen propulsion for a sustainable future ■ H2JET £2m collaboration² project to explore critical subsystems for H₂ combustion engine Swedish-based project led by GKN Aerospace Melrose Scaled to power sub-regional (~40 person) zero emissions flights from early 2030s Exploring H₂ combustion-powered engines for medium-range, single-aisle aircraft Potential technology entry into service in 2035 Buy Improve Sell Entry into service in 2030s ZERO EMISSION HYDROGEN AIRCRAFT H2GEAR N Above: H2GEAR concept sub-regional aircraft design Inset: H2JET engine modelling to validate technology 1. H2GEAR collaboration with Intelligent Energy, Aeristech, Newcastle University, The University of Manchester and University of Birmingham 2. H2JET collaboration with Swedish Energy Agency, Chalmers University of Technology, Lund University, KTH Royal Institute of Technology, University West, Research institutes of Sweden (RISE) and Oxeon 52#53Buy Improve Sell Melrose Conclusion 53#54Melrose Conclusion higher potential Leading Tier 1 supplier in the aerospace industry - highly resilient market position Product on over 90% of commercial aircraft¹ with entrenched customer relationships 95% of revenue from industry leading positions² For >70% of revenue GKN Aerospace is the single source supplier, providing excellent long-term visibility Excellent technology portfolio focused on sustainability ■ I ■ Buy Improve Sell ■ Well positioned for market recovery and growth Blended revenue CAGR of 7% to 2030 Faster recovery and higher growth to 2025 (>10% CAGR) Aftermarket rising to 50% of the Engines business by 2030 I I ■ Strong, long-term cash generation Expected lifetime cash inflow of c.£18.5bn on 19 engine contracts (NPV³ of c.£5bn), these contracts represent less than 20% of Aerospace revenue today (5% of Melrose) - I Upgraded operating margin target to 14%+ Accelerated progress on restructuring with all projects launched and moving rapidly Clear path to 14%+ operating margin on a full market recovery I I 1. GKN Aerospace engine or airframe content onboard aircraft over 100-person capacity produced today 2. Leadership position means number 1, 2 or 3 in the global market, by sales, in aerostructures, aerospace engine systems and aerospace electrical distribution 3. Using a foreign exchange rate of USD:GBP of 1.30:1 and calculated using the midpoint between a debt related discount rate of 5% (NPV c.£7bn) and a GKN Aerospace pre-tax weighted average cost of capital discount rate of 10% consistent with data in the Melrose Industries PLC 2021 Annual Report (NPV c.£3.5bn) 54#55Buy Improve Sell Melrose GKN Aerospace - higher potential 55#56Melrose Closing remarks from the Melrose CFO ■ ■ ■ ■ ■ ■ ■ ■ ■ Buy Improve Sell GKN is responding to the trusted Melrose model as well as any previous deal Macro pressures hide the true improvements made Aerospace has the highest potential equity return of all the GKN businesses Its strategy is set and its management team is in place Aerospace is poised to unlock significant value Well positioned for market recovery and growth with blended revenue CAGR to 2030 of 7%, and faster recover to 2025 (>10% CAGR) All CAGRs¹ derived from external commentators, not Melrose internal The operating margin target is upgraded to 14%+ on a full market recovery The long-term cash flow dynamics are excellent with c.£18.5bn of expected cash flow on 19 contracted RRSP programmes (NPV2 of c.£5bn). These contracts represent less than 20% of Aerospace sales today and 5% of Melrose 1. Market growth rates applied to GKN portfolio 2. Using a foreign exchange rate of USD:GBP of 1.30:1 and calculated using the midpoint between a debt related discount rate of 5% (NPV c.£7bn) and a GKN Aerospace pre-tax weighted average cost of capital discount rate of 10% consistent with data in the Melrose Industries PLC 2021 Annual Report (NPV c.£3.5bn) 56