Melrose Results Presentation Deck

Cash generation in the year Melrose Free cash flow Cash flow from continuing operations £m Adjusted operating cash flow (pre capex)¹ Net capital expenditure Net interest and tax paid Defined benefit pension contributions - ongoing annual contributions Dividend income from equity accounted investments Trading net other Adjusted free cash flow 1 Defined benefit pension - special contributions² Restructuring Free cash flow 1 ■ ■ I ■ Buy Improve Sell 1. 2. Group 2019 1,441 3. 4. (495) (295) (72) 67 (55) 591 (111) (190) 290 Reconciliation of opening to closing net debt Reconciliation of net debt £m Net debt brought forward Net cash flow from disposals and acquisition related activities 4 Discontinued operations Free cash inflow in the period Dividend paid to shareholders Foreign exchange and other Net debt¹ at 31 December 2019 Net debt of £3,283 million at closing exchange rates of US $1.33 and €1.18, with adjusted profit conversion to cash¹ of 104% Leverage ¹ of 2.25x EBITDA is better than expectations due to stronger cash generation Adjusted free cash flow¹ from continuing operations of £591 million excludes the one-off pension contributions and restructuring spend Capital expenditure to depreciation ratio³ of 1.2x Group net trade working capital¹ reduced by £95 million (5%) mainly by improving debtors and creditors efficiency, improvement in inventory largely still to come Group 2019 Described in the glossary to the 2019 Preliminary Announcement, released on 5 March 2020 Includes £94 million of one-off payments, being the balance of the £150 million upfront commitment, and a £17 million contribution following the disposal of Walterscheid Powertrain Group Calculated using net capital expenditure and depreciation for non-leased assets only Comprised of net disposal proceeds from the sale of Walterscheid Powertrain Group, purchase of investments and other acquisition and disposal related cash flows (3,482) 103 (37) 290 (231) 74 (3,283) 8

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