Melrose Results Presentation Deck

Aerospace: restructuring ■ ■ Initial restructuring "One Aerospace" launched to drive scale efficiencies and productivity Melrose Initial indirect overhead reduction, especially at site-level Announcement of Kings Norton factory closure and China expansion Stopped expansion of new facilities in US to consolidate production in core plants Region USA Europe China Other Total Buy Improve Sell FTES at Jan 2020 5,450 10,900 1,250 950 18,550 ■ % FTE reduction at Dec 2020 COVID-19 demand response Significant sustained reduction in direct labour across all businesses/regions Further indirect and overhead savings based on lower demand New more efficient organisation structure effective from 1 February 2021 I Office closures where not linked to operations (15%) (17%) (30%) 9% (16%) Significant ongoing cost action throughout 2020 Structural cost actions Comment New project underway to consolidate product lines within Sweden and Norway European plant rationalisation planned Further global consolidation opportunities ▪ Major drive to improve quality and productivity Rapid action taken in Q2 due to demand Reductions started in Q2 following union discussions Rapid reduction started in Q2 Increases in India and Malaysia to support specific projects ▸ Structural reduction to reflect demand > Contractors and temporary staff reduction Flexible working and reduced overtime Business sized for lower demand, further structural actions and operational improvement to come 20

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