#1GKN AEROSPACE Engines Investor Event Trollhättan 18 October 2023 Joakim Andersson President, GKN Engines#2(N) N> GKN AEROSPACE Key messages 1 2 3 GKN Engines has OEM-level capability and responsibility for selected engines which gives more technical and commercial advantages than normal for a Tier 1 supplier Leading independent Tier 1 partner to all major engine OEMs with lucrative and diverse RRSP¹ portfolio, providing balance and resulting opportunities Strong long-term demand for GKN proprietary breakthrough technologies which will shape new ways for the industry to improve Trading ahead of plan with the 2023 full year Engines margin guidance raised to 24% Significantly underpinning the 28% margin in 2025 and >30% beyond 1. Risk and revenue sharing partnerships 1#3▶ GKN AEROSPACE Who we are £1.3bn SALES 90+ YEARS OF FULL ENGINE CAPABILITY 1. GKN content on ~90% of civil aircraft engines 4,000+ EMPLOYEES INDEPENDENT PARTNER TO ALL MAJOR ENGINE OEMS POWERING 90% OF ALL FLIGHTS1 2 ENGINEERING & TECHNOLOGY CENTRES 2#4N GKN AEROSPACE VP Governmental & Space Stefan Oscarsson SVP MRO Parts Repair Gerald Coste SVP Permanova Sébastien Aknouche SVP Partnership Program Office Alexander Andersson VP Operations Kongsberg Nicola Armstrong VP Operations Trollhattan Martin Wänblom VP Operations US West Jim Wilson VP Operations. US East Sergio Moren President Joakim Andersson SVP Engineering & Technology Executive Assistant Karl-David Pettersson COO Tomas Lindsta VP Strategy & Business Innovation David Bergman Ida-Karin Wennberg SVP Finance Karin Andersson Head of Legal Sara Eklöf SVP Human Resources Kelly Nguyen 3 GKN Aerospace Engines. Leadership Team 300+ years of combined experience in aerospace From all OEMs, markets and regions MAKING THINGS FLY#5KN GKN AEROSPACE ▶▶ Market and customers 7 OOO VOA VDA#6(N) N> GKN AEROSPACE Our markets ****** Sales -70% Civil unbeatable fuel efficiency. A320 AIRBUS $50 billion market Regional, narrowbody and widebody Sales -25% Defence $10 billion market Fighter engines Sales ~5% Strong core markets in civil and defence aerospace Adjacent $4 billion market Launcher engines and aero-derivatives 5#7(N) N> GKN AEROSPACE Our customers PRATT BWHITNEY ENGINES Sales -70% Civil unbeatable fuel efficiency... A320 AIRBUS GO BEYOND GE Aerospace ROLLS S SAFRAN R Rolls-Royce ROYCE 500+ repair customers PRATT BWHITNEY DEPENDABLE ENGINES Sales -25% Defence FMV GO BEYOND GE Aerospace Sales ~5% Adjacent eesa arianespace arianeGroup GE GE 6#8(N) GKN AEROSPACE $bn 100 90 80 70 60 50 40 30 20 10 0 2022 Engines market structural growth 1 2024 Commercial AM 2023 2025 2026 Commercial OE 2027 Fighter OE+AM 2028 2029 IGT2 Space 2030 2031 1 Key drivers Increasing flying hours, especially in Asia 3 Current fleet needs to fly for many years 2 to come with increasing aftermarket support required Over next two decades global fleet set to double 7 1. External projection for markets in which GKN Aerospace operate. GKN Engines defined market; civil aircraft > 100 passengers, western fighter engines, space launcher engines and aerospace derivative IGT² IGT Industrial gas turbine 2.#9<N> GKN AEROSPACE Trips per capita 5 2.5 1 0.7 0.3 0.16 0.08 0.04 0.02 0 Increasing flights, especially in Asia Brazil 0.5 trips per capita 10,000 India 0.14 trips per capita Ethiopia 0.03 trips per capita 20,000 China 0.5 trips per capita GDP per capita vs flights per capita Global average 0.54 trips per capita Source: IHS Markit, Sabre GDD, Airbus GMF 30,000 40,000 United Kingdom 2.2 trips per capita France 1.35 trips per capita Sweden 2.3 trips per capita 100,000 90,000 GDP per capita (US$) Growing middle class drives increase in global flights per capita 50,000 60,000 United Arab Emirates 3 trips per capita United States 2.1 trips per capita 70,000 80,000 8 Economic growth leads to increased flights > Rapid growth in emerging markets#10<N> GKN AEROSPACE Millions 140 120 100 80 60 40 20 2023 1 Flight hours growing strongly Source: AW IN 2024 2025 2026 Projected flight hours 2027 2028 ■Narrowbody jet ■Widebody jet Regional jet 2029 2030 2031 2032 -60% increase in flight hours in the coming decade >75% growth in narrowbody. flying hours over next decade, widebody >40% 2023 - 2032 CAGR 5% 2023 2032 narrowbody CAGR 7% 9#11<N> GKN AEROSPACE Number of aircraft 2 Current fleet to fly for many years to come 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: AW IN d....... 21-25 Years <5 5-10 Fleet age 11-15 16-20 26-30 31-35 36-40 40+ Aircraft in service are relatively young and have many years flying to come Aircraft flying for longer due to constrained OEM deliveries Resulting in more aftermarket Many years of flying and shop visits to come for current fleet 10#12<N> GKN AEROSPACE Shop visits 2 Growing fleet aftermarket support 12,000 10,000 8,000 6,000 4,000 2,000 0 2022 2023 Source: AW IN 1. Shop visits & share LLPs¹ 2024 2025 2026 2027 2028 2029 2030 2031 2032 Shop visits % LLP replacement shop visits 30% LLP Life-limited part 25% 20% 15% 10% 5% 0% LLP replacement shop visits Significant number of aircraft sold from 2009 to 2019 requiring maintenance now and in future Growing aftermarket driven by: increased shop visits and higher percentage of LLP 1 replacements (which necessitate a heavy shop visit) - - OEM service agreements and spare part price increases Increasing support required - greater number and complexity of shop visits 11#13<N> GKN AEROSPACE 3 Strong demand for continually growing fleet 22,880 Beginning 2020 Source: Airbus Global Market Forecast Number of aircraft 46,560 23,680 Grow 17,170 Replace 5,710 2042 Stay (incl. 2020-22 deliveries) 40,850 New deliveries >40,000 new deliveries expected over next 20 years, mostly with current engine programmes GTF, LEAP, XWB, GEnx - Significant portion of current fleet need to fly for many years to come V2500, CFM56, CF6, T700 New deliveries (2023-2042) Global fleet set to double in next two decades 12#14←N> GKN AEROSPACE Multiple business models provide a balanced portfolio Sales 55% Civil RRSP partnerships Provides entitlement to aftermarket revenue and profit Original equipment + Aftermarket Sales 10% Government partnerships Unique, system-level capability Original equipment + Aftermarket Sales 10% Repairs 10 Significant growth opportunity Aftermarket Sales 25% A balanced business with strong foundation as a strategic partner Commercial contracts TES Balances profile of portfolio and supports partnerships' focus 13 Original equipment#15(N) GKN AEROSPACE PRATT WHITNEY Civil RRSP partnerships DEPENDABLE Key customers per business model ENGINES Sales 55% GO BEYOND &GE Aerospace ROLLS SAFRAN Ⓡ Rolls-Royce® ROYCE Sales 10% Government partnerships FMV eesa PRATT& WHITNEY DEPENDABLE Sales 10% GO BEYOND GE Aerospace ROLLS SSAFRAN Ⓡ Rolls-Royce ROYCE +500 airlines and MRO shops ENGINES Repairs Independent partner with all major engine OEMs PRATT& Commercial contracts AWHITNEY DEPENDABLE Sales 25% ENGINES GO BEYOND 14 &GE Aerospace ROLLS SSAFRAN Ⓡ Rolls-Royce ROYCE#16<N> GKN AEROSPACE Example of our partnership legacy – life cycle ownership - T900 1940 RM2 BR715 Make-to-print RM5 1960 RM6 GEnx-1B GP7000 GEnx-2B Design assist/Make 1980 RM8 RM 12 TXWB 2000 VULCAIN 1 PW 1500G/PW 1900G Design/Make DR990 2020 VULCAIN 2 (Ariane 5) PW1100G/PW 1400G Technology/Design/Make LMS100 2040 VINCI next-generation VULCAIN 2.1 (Ariane 6) RM 16 I I FCAS 15#17<N> GKN AEROSPACE Years Partnership entitlement 5 10 15 Spares premium/ service agreements Repair of parts Spare part production Sale of engine 20 25 16 Engines typically sold to the customer by the OEM at lower or even breakeven margin OEM recoup investment in the aftermarket phase > Aftermarket service agreements exclusive to OEMs and their partners > Annual price escalations on aftermarket content are typically 2x the increase in price on new engine sales#18<N> GKN AEROSPACE RRSPS entering 'sweet spot' CFM56 V2500 GEnx XW B-84k P&W GTF 24k P&W GTF 30k Before first shop visit 47% 30% 38% 67% 95% 90% Scheduled shop visit activity for key GKN RRSP engines¹ 1 shop visit 2+ shop visits complete complete 27% 35% 59% 33% 5% 10% 26% 1. Shop visit data from AeroDynamic Advisory, April 2023 2. Life-limited parts 35% 3% Significant shop visits ahead > Aftermarket profits are made through shop visits and flight hour compensation Three or more planned shop visits during the life of an engine, with 5-10 years between each visit ~50% of CFM56 and 30% of V2500 have not had first shop visit Vast majority of GKN engines have high-value shop visits ahead (LLPs²) 17#19KN ▶▶ GKN AEROSPACE Way of working - business areas 7 OOO VOA VDA#20<N> GKN AEROSPACE Engines business overview Business areas Material solutions OE product solutions Repair solutions Governmental solutions Business models Civil RRSP partnerships Government partnerships Repairs Commercial contracts B 18 I 19#21<N> GKN AEROSPACE Desired alternatives to large castings and forgings Conventional - Production starts with large castings and forgings Additive fabrication Multiple smaller parts are combined into a more complex lighter component Built on decades of expertise and experience Benefits of additive fabrication Lower cost, improved quality and enhanced design flexibility - Lower weight and reduced waste; much improved buy-to-fly ratio - Reduced reliance on supply chain and delivery lead times - Opportunity to supply to new customers Casting Forging Casting Forging Laser metal deposition wire Laser metal deposition powder Laser powder bed fusion GKN production Additive fabrication technology and knowhow Transformational capability Interchangeable alternative to castings and forgings GKN production New customers Game-changing unique additive fabrication capability provides fundamental improvements 20#22←N> GKN AEROSPACE 20+ years of additive fabrication technology coming to fruition 2000 - 2015 Research phase FACH > First Laser Metal Deposition (LMD) cell > Partnership with Permanova > Extensive research and testing 2005 - 2015 Start of production on simple applications First launch in 2008 > Additive manufacturing of complex features > No load-bearing functionality > 2 parts in production Multiple complex demonstrators Extensive test campaigns > Extensive material characterisation 2015 - 2023 Start of production on "load-bearing' structures > GTF engine mount rings (A220 and E195) enter production (2023) > Permanova acquisition (2022) > Introducing LMD on multiple products > Significant pull from customers Unique capability and know-how in laser welding for additive manufacturing (AM) 21#23<N> GKN AEROSPACE Engines business overview Business areas Material solutions OE product solutions Repair solutions Governmental solutions Business models Civil RRSP partnerships Government partnerships > > > Repairs Commercial contracts B >> 22#24(N) GKN AEROSPACE Civil product offerings powering 90% of the fleet CF34 LEAP-1B PW 1900G PW 2000 PW 1500G Narrowbody / Regional PW1100G-JM AE3007 V2500 CFM56-5/-7 GKN RRSP on 75% of global narrowbody/ regional flight hours. Source: AW IN; based on 2022 global flying hours Trent 7000 GP7000 Trent 1000 PW 4000- 94/100 Trent 700 PW4000-112 Trent 500/900 Trent XWB- 84k Widebody GEnx GE90 CF6-80 GKN RRSP on 70% of global widebody flight hours GKN RRSP GKN OE Content No GKN content 23 CFM56 and V2500 power 100% of legacy narrowbody aircraft and account for ~50% of total global flight hours#25(N) GKN AEROSPACE Technology driven product specialisation Parts typically last life of engine Fan cases Forward engine mount structures Turbine cases GKN AEROSPACE Rotating components Rear engine mount structures Shafts Customer aligned product offerings Focus on design/make with unique manufacturing IP Both civil & military product offerings Mainly structural parts designed to last the life of the engine Technology-based partnership model builds long-term strategic relationship 24#26El Cajon Military ducts GKN AEROSPACE Muncie Forgings Newington Metallic fan cases Vanes Mexicali Internal supply OE product centres N. Charlestown Blades Cromwell Kongsberg Composite fan cases Shafts Small/medium cases Trollhättan Fabricated structures Unbladed rotors Large cases 25#27<N> GKN AEROSPACE Engines business overview Business areas Material solutions OE product solutions Repair solutions Governmental solutions Business models Civil RRSP partnerships Government partnerships >> Repairs < Commercial contracts B ›› 26#28(N) N> GKN AEROSPACE Shop visits 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Outstanding growth opportunity in parts repair 2021 Projected engines shop visits 1 2022 10% CAGR ||| 2024 2023 2025 Highlights Shop visits are growing rapidly, driven by flight hour recovery 1. Based on AW IN flight hour forecast data for target platforms CFM56, V2500, LEAP and GTF OEMs keen to develop cost effective repair capability (versus replacement) as they are responsible for maintenance guarantees Flight-critical nature of GKN products creates high barriers to entry and long lead time for new capacity to reach the market (3+ years) GKN's unique position is built on investment in global. repair capacity and certification, and strong OEM relationships GKN's advanced technology capabilities seen as problem-solving solutions for hard-to-repair parts GKN repair business expected to double sales from 2023 to 2025 27#29←N> GKN AEROSPACE A certified global repair capability today. GKN Aerospace repair portfolio GKN Aerospace repair sales¹ 10% GKN Engines sales 7- -75% of GKN repair revenue from fan blades Asia 2023 Europe North America GKN Aerospace unique capability 80+ years in repair business. 3 sites globally (one new since 2022) Certifications from EASA2, FAA², CAAC², and key OEMs (2+ years to achieve per site) Established worldwide customer base of over 500 customers £65 million capex investment in repair business under Melrose ownership Certification, scale and customer relationships are substantial barriers to entry 1. Sales by end market region 2. EASA = European Union Aviation Safety Agency. FAA = Federal Aviation Administration. CAAC = Civil Aviation Administration of China 28#30←N> GKN AEROSPACE Expanding repair capacity, capability and portfolio Footprint expansion Expanded Sweden 2021 10,000 m² Moving to new site US 2024 15,000 m² New site Malaysia 2022 10,000 m² GAMATROSTAGE Parts Portfolio expansion Fan blades Fan disks Cases and Structures Composite parts Blisks/IBR1 Market share 1. Integrally bladed rotors 2. Projected market by 2030. Source: AeroDynamic Advisory Market Research -40% <10% <10% <10% Starting 2023 Leveraging manufacturing technology Doubling sales from 2023 to 2025 - more upside beyond Revenue growth -£100m 2023 2x 2025 £4.5bn addressable market by 2030² 29#31<N> GKN AEROSPACE Engines business overview Business areas Material solutions OE product solutions Repair solutions Governmental solutions Business models Civil RRSP partnerships Government partnerships Repairs Commercial contracts B ›› 30#32(N) N> GKN AEROSPACE 90-year strategic relationship with the Swedish Air Force RM12/ Gripen C/D 'OEM-level' scope of responsibility Research and technology leadership Demonstrators Design / Product developments Systems engineering Production Engine testing Upgrades Product support / Aftermarket / Life tracking system Business growing from £100 million to £140 million by 2025 National interests require competent domestic capability and capacity Upfront funded, long-term and stable business (over time and cycles) Capability investments funded by Government Well-positioned for growth based on OEM capability 31#33<N> GKN AEROSPACE Potential for additional combat air support > Swedish authorities are working on a potential combat air support package including information and training on the Gripen C/D system 32 In October 2023, as part of a wider range of Swedish military support for Ukraine, the Swedish government presented an assignment to the Swedish Armed Forces to analyse and report on the conditions for providing a transfer of Gripen aircraft to Ukraine Supply of aircraft is conditional on Sweden obtaining NATO membership GKN Engines continues to operate under the existing contractual relationship and is currently supporting the authorities by answering any queries they have#34←N> GKN AEROSPACE Full engine capability 2.90 RM 12 / Gripen C/D 18 Sprveeeee.... RM16 / Gripen E Future Combat Air System 33#35(N) GKN AEROSPACE 2 3 Truly diverse technology-driven, class-leading business OEM-level capability RRSPs portfolio with all major engine OEMs Proprietary GKN breakthrough technologies Material solutions OE product solutions Repair solutions Governmental solutions Our full engine understanding and capabilities gives us a competitive edge from design for manufacturing to improving performance of our customers' engines Long-term partnerships with all major engine OEMs gives GKN Engines unmatched abilities to introduce our key technologies and grow our business with the right customer for the right product & programme Decades of research & development, skilled people and fabrication expertise has placed GKN Engines in pole position to meet industry challenges, based on our proprietary material solutions. 34