Melrose Mergers and Acquisitions Presentation Deck
Key point 2: Potential market recovery remaining
Melrose
2. Further market recovery potential beyond 2022 consensus¹ (back to 2019 levels²)
Buy
Improve
Sell
Melrose Group today: Adjusted results³
£m
Revenue
EBITDA4 (pre-central costs)
EBITDA4 margin %
Operating profit (pre-central costs)
Operating margin %
Melrose central costs
Operating profit (post-central costs)
1.
2.
3.
4.
5.
6.
7.
Consensus¹
2022
7,635
919
12.0%
491
6.4%
(57)
434
Further market recovery potential beyond 2022
consensus¹ (back to 2019 levels²)
Melrose
(Aerospace)
Group remaining
recovery² of c.20%
Further recovery²
of c.35%
(2019 revenue: £3.4bnº)
Automotive Group5
(DemergerCo)
Further recovery²
of c.15%
(2019 revenue: £5.6bn7)
The pace of recovery in Aerospace continues to speed up with sales in the second quarter being 12% higher than the first
quarter; with further recovery potential beyond 2022 consensus¹ of c.35% back to 2019 levels²
The Automotive Group5 having initially recovered quickly from the pandemic, has seen trading constrained by supply chain
disruption, with further recovery potential beyond 2022 consensus¹ of c. 15% back to 2019 levels²
This is not an internal Melrose forecast, it is a company compiled consensus from all 14 external analysts that cover Melrose, adjusting for the disposal of Ergotron where appropriate
Recovery to 2019 revenue volume levels calculated on a like-for-like basis
Described in the glossary to the 2022 Interim Financial Statements and considered by the Board to be a key measure of performance
Consensus¹ operating profit before depreciation and amortisation from subsidiaries and equity accounted investments (depreciation and amortisation calculated as 2x H1 2022)
Comprises the Automotive, Powder Metallurgy and Hydrogen group of businesses
As shown on slide 9 of the GKN Aerospace Investor Day presentation, dated 8 June 2022, adjusting for divestments and both completed and announced site closures
Excluding the uplift in revenue from current year inflation headwinds being fully recovered
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