Melrose Mergers and Acquisitions Presentation Deck

Key point 5: Cash generation dynamics transformed Melrose 5. All GKN businesses have self-funded their restructuring projects from operational cash generation Buy Improve Sell 123 Cash generation since acquisition (pre-interest and tax)¹ 2. £1.2bn¹ GKN businesses All GKN businesses cash generative in Melrose ownership Melrose (Aerospace) Automotive Group² (DemergerCo) £0.4bn £0.8bn The capital structure for DemergerCo is intended to be similarly conservative to that employed by Melrose currently All GKN businesses have been cash positive on a stand alone basis with their cash generation qualities transformed since acquisition Since acquisition, the GKN businesses have generated £1.2 billion¹ of surplus cash after £0.7 billion of restructuring and £0.5 billion of pension contributions Expected further lifetime cash inflow of c.£18.5 billion on 19 Aerospace engine contracts (NPV3 of c.£5 billion) 1. £1.2 billion of cash generated in the GKN businesses, post-restructuring, post-pension contributions and pre-interest and tax Comprises the Automotive, Powder Metallurgy and Hydrogen group of businesses 3. Using a foreign exchange rate of USD:GBP of 1.30:1 and calculated using the midpoint between a debt related discount rate of 5% (NPV c.£7 billion) and a GKN Aerospace pretax weighted average cost of capital discount rate of 10% consistent with data in the Melrose Industries PLC 2021 Annual Report (NPV c.£3.5 billion) 15

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