Melrose Results Presentation Deck

Pensions Melrose Pension schemes I I 31 December 2021 £m UK Europe USA Rest of World Total pension schemes Acquisition commitment Buy Improve Sell 'Up to £1 billion' Assets 2,754 23 203 30 £0.35 billion 3,010 Significantly increased contributions in Melrose ownership Liabilities (2,582) (566) (289) (34) (3,471) GKN UK schemes now in accounting surplus of £172 million¹, equivalent funding surplus of c.£100 million The Group's gross pension plan liabilities have reduced by 25% during the year, including £379 million of gross liabilities transferred with businesses disposed and £366 million following a successful buy-out of the pensioners of the GKN UK 2016 scheme GKN UK Funding deficit: Accounting surplus/ Movement in the year (deficit) 172 290 33 51 (543) (86) (4) (461) £0.75 billion Improved investment strategy and other 3 377 At 31 December 2021 £0.1 billion surplus The Melrose funding commitment made on acquisition of GKN, fulfilled ahead of time. Ongoing annual payments are halved to £30 million and no funding requirement from future disposal proceeds 1. Includes a surplus of £179 million relating to the GKN UK Group Pension Schemes (numbers 1-4) and a deficit of £7 million relating to the GKN UK Post Retirement Medical Scheme 41

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