Melrose Mergers and Acquisitions Presentation Deck slide image

Melrose Mergers and Acquisitions Presentation Deck

Interim results: Melrose Group cash generation in the first half Melrose Free cash flow¹ Cash flow £m Adjusted EBITDA² Lease obligation payments Positive non-cash impact from loss-making contracts Movement in working capital Adjusted operating cash flow (pre-capex) Net capital expenditure¹ Net interest and tax paid Defined benefit pension contributions - ongoing contributions Trading net other Dividend income from equity accounted investments Cash flows from operations discontinued in the Period Adjusted free cash flow¹ Restructuring Free cash flow¹ ■ I I Group H1 2022 349 (24) (17) (195) 113 (79) (95) (11) (24) 29 16 (51) (53) (104) Buy Improve Sell Reconciliation of opening to closing net debt¹ Reconciliation of net debt¹ £m Net debt¹ brought forward Adverse foreign exchange movement Net debt¹ at 30 June 2022 foreign exchange rates Net cash flow from acquisition and disposal related activities Free cash flow¹ in the Period Dividends paid to shareholders Buy back of own shares Net debt¹ at 30 June 2022 Net debt¹ of £1,294 million at closing exchange rates of US $1.22 and €1.16 Working capital increased by £195 million in the first half due to selectively funding growth, supply chain inefficiencies and normal seasonal impacts With Sterling weakening, particularly against the US Dollar, at current exchange rates this adds £100 million to £150 million to net debt¹ since the beginning of the year. This does not materially impact the bank leverage calculation which is calculated using like-for-like exchange rates Group H1 2022 (950) (67) (1,017) (10) (104) (44) (119) (1,294) 1. Described in the glossary to the 2022 Interim Financial Statements and considered by the Board to be a key measure of performance 2. Calculated excluding EBITDA from equity accounted investments 21
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