Melrose Results Presentation Deck

Automotive: highlights Melrose Global leader in drive systems #1 in Driveline, with clear technology leadership and over 40% market share in its core product Increased torque and power requirements of electric vehicles benefits GKN Automotive's core product strengths I I Structural growth in core products Sales are currently constrained by ongoing semi-conductor supply chain shortages, underlying consumer demand higher GKN Automotive's long-term outlook is to grow at a rate of more than double global light vehicle production ■ I Well positioned to capture incremental electrification growth eDrive strategy enables flexibility to supply either components or integrated systems depending on OEM outsourcing strategy Full drive system portfolio expands content per vehicle with electrification In the last 18 months Automotive has been awarded six major eDrive programmes for global and Chinese vehicle manufacturers and has a strong pipeline for the future I I Transforming the business, with a clear path to >10% profit Ahead of plan on transformation, all restructuring projects necessary to achieve the target margin are already underway Tight control of costs and restructuring actions means small profit impact from global supply issues; 8% decremental margin in H1 versus H2 2020, holding margin at 6.2% I Driving a cleaner, more sustainable world Leading technology contributes to the decarbonisation of the industry Developing lighter, more efficient EV powertrains for the volume automotive market ■ Over one third of the new business bookings in H1 were on pure electric platforms; over 50% including full hybrid platforms. Wins include a major new 3-in-1 system for a leading German OEM I Buy Improve Sell 29

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