Melrose Results Presentation Deck

Cash management: significant working capital improvements Melrose Free cash flow in 2020 Cash flow from continuing operations £m Working capital¹ inflow Net capital expenditure¹ Capital expenditure to depreciation ratio² I ■ ■ Inventory lower by £187m, 14% Buy Improve Sell Trade debtors lower by £184m, 13% (Q4 sales 7% lower) Net working capital reduced by £424m, 52% H1 2020 251 174 0.8x 1. 2. 3. Comprises trade creditors and net other working capital 4. Melrose lifetime capex depreciation ratio prior to 2020 H2 2020 173 Described in the glossary to the 2020 Preliminary Announcement, released on 4 March 2021 Calculated using net capital expenditure and depreciation for owned assets only 118 0.6x 2020 424 Significant working capital improvements achieved in H2, more to come Net working capital levels more than halved in the year by improving inventory and debtors, and protecting net creditors³ Net trade working capital days reduced from 45 to 37 Capital expenditure tightly managed and below Melrose long-term average of c.1.3x4 292 0.7x Net creditors³ protected £53m, 3% higher 12

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