Melrose Results Presentation Deck

GKN - loss-making contracts Melrose Loss-making contracts £m Aerospace Automotive Powder Metallurgy Other Continuing Total ■ ■ Buy Improve Sell Provision 1. 215 93 74 2 384 Annualised utilised 2018 (51) (27) (12) (1) (91) Utilised 2019 (42) (29) (9) (1) (81) Surplus released, improved position Significant steps have been taken, including renegotiation of contractual terms and operational efficiencies identified and demonstrated, to improve the longer term contractual positions £81 million of losses were incurred in the year, representing an 11% reduction compared to 2018 Also, there have been material improvements in loss-making contracts during the year, with c.25% of the remaining provision released excluded from adjusted¹ operating profit (29) (60) (33) Described in the glossary to the 2019 Preliminary Announcement, released on 5 March 2020 (122) 10

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