#1Melrose SED YE Buy Improve Sell AUTOMOTIVE MOT FOR PLIGHE Strictly private and confidential 2002 Melrose Industries PLC Business Overview YOANMO VDAVNOS! LED#2Melrose business portfolio Strong market positions Growth underway Margins expanding Sustainable technology Melrose Buy Improve Sell IN ■ 1. ■ I ■ I ■ Aerospace Leading global tier one supplier on major civil and defence platforms Attractive engine portfolio with strong long-term cash flows Civil market recovery underway, led by narrowbody Increasing demand in attractive aftermarket and repair work All required restructuring projects now underway Adjusted¹ operating margin: 2020:0.5%→ 2021:4.4% Target 12% ² ● ● Improving existing fleet efficiency Developing next generation of greener aircraft I I I I I ■ #1 in Driveline with ICE, hybrid and EV technology leadership Supplies 90% of OEMs, 50% of global vehicles Automotive Underlying demand strong but constrained by supply chain Electrification providing increased growth Restructuring accelerated and nearing completion Adjusted¹ operating margin: 2020:2.2% -> 2021:4.6% Target >10% ● ● Leading EV drive system technology Significant investment into a range of eDrive capabilities Described in the glossary to the Preliminary Announcement and considered by the Board to be a key measure of performance 2. 10% margin target on a partial market recovery and 12% margin target on a recovery to pre-COVID-19 revenue Strictly Confidential ▪ #1 in supply of precision powder metal parts ▪ #2 in global powder metal production Powder Metallurgy ■ Sustainable share gains above market ▪ Momentum in higher value-add precision components Restructuring largely complete and improving business mix Adjusted¹ operating margin: 2021:9.3% ● ● 2020:4.3% Target 14% Supporting EV expansion Commercialising additive manufacturing Plus Ergotron, a leading manufacturer of ergonomic products for use in a variety of working, learning and healthcare environments and GKN Hydrogen, a pioneer of state-of-the-art metal hydride storage technology 2#3Business results: expanded margins and strong cash flow Melrose Adjusted¹ results Continuing operations £m Aerospace Automotive Powder Metallurgy Other Industrial² Central Total ■ I I I I I Buy Improve Sell 2021 Revenue 2,543 3,745 975 233 1. 2. 7,496 2021 Operating profit/(loss) 112 172 91 51 (51) 375 2021 Operating margin 4.4% 4.6% 9.3% 21.9% 5.0% 2020 Revenue 2,804 3,797 905 217 7,723 2020 2020 Operating Operating profit/(loss) margin 0.5% 14 Strictly Confidential 82 39 52 (46) 141 2.2% 4.3% 24.0% Adjusted¹ revenue up 2% on 2020, at constant currency Group adjusted¹ operating margin increased by 3.2 ppts driven primarily by improvements to the cost base Aerospace adjusted ¹ operating profit up £98 million on flat³ sales Automotive and Powder Metallurgy more than doubled adjusted¹ operating margin in the year Continued strong cash generation with Group cash conversion (pre-capex) of 110% All businesses fully funded their improvement projects from free cash flow ¹ 1.8% Described in the glossary to the Preliminary Announcement and considered by the Board to be a key measure of performance Other Industrial now includes GKN Hydrogen (investment phase) 3. Based on existing businesses at 31 December 2021 2020 cash 2021 cash conversion conversion (pre-capex)¹ (pre-capex)¹ 124% 96% 107% 74% 110% 328% 153% 156% 124% 193% 3#410 GKN Aerospace 1. Based on adjusted 2021 revenue for all continuing businesses Strictly Confidential 34% of Melrose¹ 4#5Overview Melrose £m Revenue EBITDA EBITDA margin % Operating profit Operating margin % Buy Improve Sell 3 Revenue by business² 2 1. 2. 3. 4. 5. Adjusted¹ results 2021 2,543 258 Strong mix of technologies 10.1% 1 Civil5 (32%) 2 Engines (34%) 3 Defence5 (34%) 112 4.4% Growth Flat² 68% 4.3ppts 925% 3.9ppts ■ Markets remain impacted by COVID-19 with sales down 27% ² on 2019 Initial recovery started during year with sales growth of 18% 2 versus H2 2020 £98 million more operating profit on lower sales; margins up 3.9ppts Cash conversion (pre-capex) of 124% driven by working capital gains All required major restructuring projects to reach 12% ³ margin target now approved and underway Revenue by source² 2 O 1 1 OE (90%) 2 Aftermarket (10%) Growing aftermarket business 2 Strictly Confidential Described in the glossary to the Preliminary Announcement and considered by the Board to be a key measure of performance Based on existing businesses at 31 December 2021 10% margin target on a partial market recovery and 12% margin target on a recovery to pre-COVID-19 revenue According to customer's country of domicile Civil and Defence relates to the airframes and components businesses GKN Aerospace Revenue by destination ²,4 3 1 North America (68%) 2 Europe (30%) 3 Asia (2%) Diversified, global footprint 01 5#6A global business with £2.6bn sales to blue chip customers Melrose Buy Improve Sell Sales by customer Airbus Pratt & Whitney Lockheed Martin Boeing GE Sikorsky ☐NHI NGC ■ Other Customers AIRBUS BOEING Raytheon Technologies Gulfstream Strictly Confidential GKN Aerospace ROLLS & R GE ROYCE LOCKHEED MARTIN Honeywell SSAFRAN We provide vital technology to an enviable portfolio of global customers 6#7Portfolio Civil airframes & components ALAP Defence airframes & components Melrose Engines Buy Improve Sell ■ 1. Mix ▪ Widebody 24% Regional 37% I Narrowbody 39% I Civil 67% I Defence 33% Fighters 48% Rotorcraft 32% Other 20% Product Risk and revenue sharing partnerships Provides main structures for all major civil OE players Produces key components for all OE engine manufacturers Provides structures and components for all major defence primes Demand Strictly Confidential Primarily driven by OE civil build rates (>50% Airbus) Linked to new build, flight hours, aftermarket and services/spares (including RRSPs ¹) Linked to new build plus increasing aftermarket and spares/repair GKN Aerospace Sustainable technology Increasing emphasis on higher margin "design to build" positions, plus Engines and Defence aftermarket growth Excellent position on sustainable aircraft (e.g. Wing of Tomorrow and Alice) Leading additive manufacturing and development of alternative power (e.g. H2JET) Developing next generation aircraft, plus composite breakthroughs 7#8Diversified global footprint Melrose 39 Manufacturing sites 18 Americas, including 2 in Mexico 13 Europe 8 Asia Pacific, including 3 in China 4 Technology and innovation centres Head office Buy Improve Sell Approximately 15,000 People (FTES) Do Expanding manufacturing footprint including China Strictly Confidential GKN Aerospace 8#9Flight hours returning strongly, powering Engines growth 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 Melrose 0 Source: Cirium Buy Improve Sell Actual Engine Flight Hours 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Forecast Narrowbody Widebody Strictly Confidential GKN Aerospace Flight hours rebounding strongly >20% increase in flight hours expected in 2022 vs 2021 ● Steady CAGR expected, with flight hours overtaking pre-pandemic levels in 2024 Technology driving further opportunities Additive manufacturing enables more sustainable solutions; key to winning additional engine content Fan blade repair and engine aftermarket seeing strong growth as deliveries of new aircraft delayed 9#10GKN Aerospace Aerospace Engines RRSP contracts: longer term cash inflows Melrose Buy Improve Sell £ millions 500 0 2025 GKN Aerospace Engines' estimated RRSP longer term cash profile 2030 - 2035 2040 2045 Time Strictly Confidential 2050 2055 2060 £ billion. Total value c.18 Net present value c.3. Discount rate c.10% 2065 2070 10#11New Civil build market recovery underway 2500 2000 1500 1000 500 0 Melrose Actual Source: Teal Buy Improve Sell OEM deliveries 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Forecast Narrowbody ■Widebody Strictly Confidential Recovery now underway 30% higher deliveries expected in 2022 vs 2021 Deliveries to reach pre-pandemic levels in 2024 Existing industry order book of >13,000 ● ● GKN Aerospace Single-aisle demand driving recovery Shift towards ultra-efficient new, longer-range single-aisle aircraft GKN has good position on Airbus A320 ● Strong business and regional jet recovery Significant bounceback in smaller SA market GKN Aerospace well-positioned with OEMs on all major business / regional jets 11#12Strong position on highest volume Defense platform Value of deliveries $BN 35 30 25 20 15 10 Melrose Source: Teal Actual 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. 2. World fighter production F-35 US F-35 International EuropeRoW Non-F-35 US Undetermined Buy Improve Sell Forecast Electrical Wiring Interconnection Systems NGAD - Next Generation Air Dominance (US successor to F35) and Future Combat Air System (France and Spain future fighter) Strictly Confidential Defense market remains healthy Much less affected by Covid-19 than Civil market Strong visible order book for fixed-wing fighters Ongoing global uncertainty expected to lead to further increase in Defense budgets ● GKN Aerospace ● F-35 order book ensures stability ahead Global F-35 deliveries valued above $15bn a year to at least 2030 GKN Aerospace has strong content on F-35 - including canopy, EW IS and structures - valued at $2.5m per aircraft New orders following Russia/Ukraine conflict 12#13GKN Aerospace GKN Aerospace technology enabling the route to net zero Melrose 70% current CO₂ from flights >2000km Buy Improve Sell Range *** 80% flights <2000km range ASRCE ARBUS Strictly Confidential Future Propulsion Battery Electric Propulsion H₂ Electric Propulsion H₂ Combustion Propulsion Core Technology & SAF GKN Aerospace Solution Electric engine fan development & electrical distribution expertise H2GEAR (UK) £54m H₂ fuel cell development H2JET H₂ combustion development project Lightweight composites and more efficient engines H2JET H2GEAR 13#14Aerospace: restructuring overview Melrose Buy Improve Sell COVID-19 RESPONSE "All complete" FOOTPRINT RATIONALISATION "All underway" Region USA Europe China Other Total FTES at Jan 2020 5,450 10,900 1,250 950 18,550 % FTE reduction at Dec 2020 (15%) (17%) (30%) 9% (16%) Europe ▪ UK plant closure (Kings Norton) completed in H2 2021 ■ Nordics consolidation to create centres of excellence started H1 2021 ■ Netherlands rationalisation from five to two sites started H1 2021 ■ Strictly Confidential ■ Further indirect and based on lower demand ▪ New more efficient organisation structure effective from 1 February 2021 ■ Office closures where not linked to operations Significant sustained reduction in direct labour across all businesses/regions verhead savings ■ North America ▪ Camarillo site closed 2020 ▪ St Louis plant closure announced H1 2022 Orangeburg and El Cajon rightsizing and move to Mexico started H1 2022 ▪ Amityville and Manchester plant closures starting in H1 2022 Portfolio action completed includes sale of non-core, unprofitable assets: Fokker Services & Fokker Techniek; Cincinnati; and Santa Ana GKN Aerospace 14#15Earnings improvement trajectory ■ Melrose 2018-2019 Good demand and revenue growth Quality fixes Initial operational improvement projects Started commercial actions 9.6% 1 Buy Improve Sell 1. 2. 10.6% ■ 2020-2021 Major revenue decline due to COVID-19 Strong decisive cost actions Quality and delivery improvements Started structural projects Sold non-core assets 0.5% 4.4% Annualised adjusted operating margin described in the glossary to the 2018 Preliminary Announcement 10% margin target on a partial market recovery and 12% margin target on a recovery to pre-COVID-19 revenue H Strictly Confidential ■ Outlook GKN Aerospace Steady civil market recovery Execution of all restructuring projects Portfolio rationalisation, especially Defence Excellent momentum towards margin target, well positioned to benefit from market recovery with continued strong future cash flows Lower cost of quality and gains in productivity 12%² 15#16Highlights Melrose Well positioned to benefit from ongoing market recovery Civil market anticipated to continue to improve throughout 2022; narrowbody recovery faster than widebody Working closely with customers, well prepared for Airbus and Boeing production ramp-up, especially A320 and B737 MAX Targeting and winning opportunities in business jets, urban air mobility and sub-regional electric aircraft - exciting growth potential ■ Excellent momentum towards margin target on significantly restructured cost base Significant margin progression in 2021 despite flat¹ sales; on track to 12% 2 target operating margin Operational improvements in quality (customer quality issues down 32%) and delivery (past due down 13%) Extensive restructuring underway with wide range of projects approved - Defence remains area requiring most work, especially in US Ongoing footprint rationalisation on track in Europe, significant new projects started in US Recently announced closure of St Louis plant, exiting c.£140 million less profitable defence work Sold non-core, low margin businesses in The Netherlands; renegotiated or exited some unattractive business with more to follow Selective bidding, focused on higher margin "design to build" positions and growth in attractive aftermarket and repair Engines RRSPs³ and aftermarket set to generate good margins and very strong cash flows as flying hours increase I ■ I I I I Excellent cash generation, working capital tightly managed Strong cash performance with 124% cash conversion before capex Further reductions in inventory levels - targeting additional £50 million gains ■ Technology development to drive sustainable future of flight Progress on core technology including additive manufacturing, fan blade repair, composites and Wing of Tomorrow design Major contributor to next generation aircraft including electric and hydrogen platforms ■ ■ GKN Aerospace Buy Improve Sell 1. 2. 3. Based on existing businesses at 31 December 2021 10% margin target on a partial market recovery and 12% margin target on a recovery to pre-COVID-19 revenue Risk and revenue sharing partnerships Strictly Confidential 16#17P GKN Automotive 1. Based on adjusted 2021 revenue for all continuing businesses Strictly Confidential 50% of Melrose¹ 17#18Overview Melrose £m Revenue EBITDA² EBITDA² margin % Operating profit Operating margin % 3 Buy Improve Sell 2 Revenue by destination 1. 2. Adjusted¹ results 2021 3,745 411 11.0% A truly global presence with a long established position in China 172 4.6% 1 Europe (35%) 2 North America (31%) 3 Asia (30%) 4 ROW (4%) Growth 4% 36% 2.5ppts 136% 2.4ppts H Sales 4% above last year, constrained by semi-conductor shortages Gaining momentum in electrification with core and eDrive products Adjusted¹ operating margin more than doubled, from 2.2% to 4.6% Cost base restructured significantly with more benefits to flow through Revenue by vehicle type 2 3 1 BEV & FCEV (6%) 2 Full hybrid (9%) 3 Mild hybrid (10%) 4 ICE (75%) A trusted partner for 90% of global OEMs, content on 50% of vehicles sold Strictly Confidential Described in the glossary to the Preliminary Announcement and considered by the Board to be a key measure of performance Including depreciation and amortisation from equity accounted investments GKN Automotive Life of programme business wins 3 2 1 BEV & FCEV (35%) 2 Full hybrid (15%) 3 Mild hybrid (18%) 4 ICE (32%) Over one third of the life of programme business wins in 2021 were on pure electric platforms; 50% including full hybrid platforms 18#19GKN Automotive works with 90% of global OEMs Americas Ford GMC BUICK Jeep CHRYSLER ACURA Melrose 37% of 2020 sales¹ Buy Improve Sell CHEVROLET Cadillac LINCOLN INFINITI DODGE Pure-play EV OEMS 32 Europe PORSCHE m Audi JAGUAR ROUS LUCID VOLVO BUGATTI NIKOLA MOTOR COMPANY LAND- ROVER RENAULT 35% of 2020 sales¹ CITROEN BENTLEY Mercedes-Benz ASTON MARTIN ရ PEUGEOT 1. Sales splits includes JVs at GKN share FIAT VAUXHALL smart Asia-Pacific GOD M TOYOTA HONDA RIVIAN TATA MITSUBISHI MOTORS (KIA DAIHATSU ISUZU Ø HYUNDAI MARUTI SUZUKI DATSUN ht Mahindra GENESIS 12% of 2020 sales¹ NISSAN mazda SUZUKI LEXUS SUBARU PERODUA STREETSCOOTER China Strictly Confidential SAIC JMC DFM BOLLINGER MOTORS C.GO |$12 ROEWE 荣威 D QOROS GEELY CHANGAN MAD GAC GROUP HAVAL LEVC 北汽集团 BAIC Group 16% of 2020 sales ¹ 长城汽车 Great Wall Motors JAC MOTORS €1 上汽大通 MAXUS Strongly positioned with traditional and emerging OEMs across all regions * ΑΓΓΙVΑL Customer mix 2019 K G 5% 5% H 6% GKN Automotive 6% Others 7% 7% F 7% E 15% 11% D A portfolio 13% 13% C Balanced customer 19 B#20Global presence Melrose 51 Manufacturing sites 9 Americas 21 Europe 21 Asia Pacific 6 Technology and innovation centres Head office UK Buy Improve Sell Global, localised manufacturing footprint Strictly Confidential GKN Automotive 20#21Long established position in China Melrose Buy Improve Sell GKN Automotive in China >30 years of experience and profitable growth ● Established joint venture with Hasco in 1988 In 2013, agreed to extend the SDS joint venture for 50 years Leading positions in sideshafts and AWD modules Emerging position in eDrive; 9 live or launch-phase eDrive programs Strong customer relationships with both global & local players 1. £1.2bn 2020 sales¹ JV sales at 100% of which GKN has 50% share >40% market share, sideshafts 5,000+ employees 10 Production sites Balanced customer mix Revenue by customer (2019) Strictly Confidential H J F 4% 4% K 3% 4% 5% E L Others 2% 3% 5% 9% 8% D Uniquely positioned to capture growth in the largest xEV market globally 13% C Balance of global and local players GKN Automotive 27% A 13% B 21#22Dual path electrification growth Melrose Buy Improve Sell Above market growth from differentiated core products required for xEV1 Revenue Increased torque and power requirements driving larger sizes plus increasing number of sideshafts per vehicle Profitability GKN electric vehicle/hybrid portfolio Core sideshafts Higher technological differentiation, with premium content offering gaining market share 1. Profit expa Securing today Grow with the market >10% operating profit margin as supply constraints ease ■ XEV refers to vehicles with any degree of electrification Outlook eDrive systems & components Flexible approach to eDrive solutions; eDrive components sold separately or fully integrated eDrive systems GKN Automotive Strong growth from new eDrive solutions required for xEV¹ Strictly Confidential Invested heavily in capabilities, including software and integration from market recovery and electrification on lower cost base business Focusing on the future >2x market growth driven by electrification mix Maintain higher margin 22#23Significant opportunity in electrification Melrose Buy Improve Sell ● ● ● ● ● ICE 1. 2. £100-£400 2 sideshafts Differential gearset 2 sideshafts Rear drive unit Propshaft Content per vehicle 2-Wheel Drive Front wheel drive Rear wheel drive FWD¹ RWD² O ● ● BEV £1100-£1300 2 sideshafts 1 electric drive unit Content lost with. electrification ● ● Content partly or fully moves into e Drive ICE Strictly Confidential £500-£1200 4-Wheel Drive 2 front sideshafts 2 rear sideshafts Propshaft Power transfer unit Rear drive unit • ● Electrification will increase GKN Automotive's potential content per vehicle BEV £2500-£3000 Content gained or maintained with electrification GKN Automotive 2 front sideshafts 2 rear sideshafts 2 electric drive units 23#24On track to meet communicated profitability targets Melrose Operating profit margin (%) 7.3% Buy Improve Sell 2018 2.2% 1 2020 Full-year revenue run-rate 6.5% 2 H2 2020 £4.9 bn £3.8 bn £4.5 bn Full Potential impact refers to net savings 1. 2. Assumes 30% drop-through margin ~2.5 3.0% Further "Full Potential"1 See details on next page ~1.0 1.5% Volume uplift to hit 10% ROS² > 10% 3 Partial market recovery Strictly Confidential 1 Successfully navigated COVID-19 Maintained positive return on sales for 2020 Utilised flexible adjustments to headcount and plant closures to match OEM production demand ■ ■ 2 Full Potential already delivering 2020 H2 operating profit margin approaching 2018 levels at lower sales (- 9%) ■ GKN Automotive 3 On track to grow margin to 10% Further Full Potential value identified to take operating profit margin over 10% with only partial market recovery (sales below 2018 levels) ■ Clear path to double digit margins 24#25GKN Automotive Further "Full Potential" defined to enable >10% margin ambition Melrose Buy Improve Sell 1. Procurement 11 £60-70m Incremental savings¹ Global purchasing strategy leveraging scale Best cost country sourcing optimisation Re-design for cost Operations 1 £35-45m Incremental savings¹ Smart automation Vertical integration (make vs buy) Best cost country footprint optimisation £125-150m of additional net savings to be realised Incremental savings are net cumulative values from 2021 to 2023; they refer to unrealised value from initiatives defined in 2019, plus value associated with subsequently defined initiatives Strictly Confidential Fixed Cost £30-35m Incremental savings¹ Capacity optimisation Streamlined global operating model Expansion of Global Business Services 25#26Highlights Melrose Structural growth in core products Growth at 4% year-on-year, with electrification gains Market remaining constrained by semi-conductor and labour shortages, however, in-month order cancellations are reducing I . Well positioned to capture incremental electrification growth Substantial share gains in core Driveline products on electric vehicles and hybrids - promising future mix Clear momentum in delivering growth from electrification eDrive business growing strongly driven by the launch of 12 new programmes across 11 global brands Now supplying 7 of the top 10 BEV platforms I ■ Transforming the business with a clear path to >10% operating margin Adjusted¹ operating margin doubled in the year Restructuring accelerated, including Firenze site disposal and Birmingham closure on track for Q2 2022 During 2022, full run rate benefits from projects will materialise to achieve target margins when supply constraints ease H2 margins impacted by retaining capability and operational headcount ahead of expected 2022 volume increase Decisive actions being taken to offset inflation through further restructuring, procurement and pricing ■ ■ Cash well controlled with sustainable improvements in working capital Working capital managed closely through volatile demand caused by supply chain and labour constraints Restructuring self-funded through operational cash flow I Driving a cleaner, more sustainable world Leading technology contributes to the decarbonisation of the industry Intensive efforts to make products lighter and more efficient to reduce environmental impact I I Buy Improve Sell GKN Automotive Described in the glossary to the Preliminary Announcement and considered by the Board to be a key measure of performance Strictly Confidential 26#27GKN 10 GKN Powder Metallurgy 1. Based on adjusted 2021 revenue for all continuing businesses Strictly Confidential 13% of Melrose¹ 27