Melrose Results Presentation Deck
Structures: margin expansion drivers on track
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Melrose
1 Civil ramp-up
Strong volume growth, led by narrowbody
(40% of Civil) revenue up 24% and
widebody (24% of Civil) up 29% in H1 2023
GKN Aerospace well-placed on all key
platforms; Civil Structures sales to Airbus 4x
vs Boeing
New 5-year extension signed for sole-
source production of A220 wiring
New China site (JV with COMAC) under
construction. Start of production expected
Q2 2024 with first work packages agreed
New contracts in emerging air mobility
market with Supernal and Joby covering
both composites and EW IS1
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Defence repricing and
rationalisation
Defence multi-year contract renegotiation
progress ahead of schedule as further 25%
completed in last few months
Signed MoU with Netherlands MoD and
Airbus for new helicopter developments
New GTC in Fort Worth, US on track for
initial operations in H2 2023 with new
production scale R&D cell²
Well positioned for future differentiated
defence work in composites and Additive
Manufacturing
EW IS Electrical Wiring Interconnectivity Systems
Focused on Additive Manufacturing with production cell enabling 5 metre structures to be manufactured
3. Customer quality escapes relate to product that is shipped to customers that does not meet all quality criteria
On track to achieve 9% margin in 2025
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Restructuring and
operational excellence
Footprint rationalisation well underway and
will be complete during 2024
Netherlands consolidation
➤ Helmond and Hoogerheide transfers on
track
Creates Papendrecht Centre of
Excellence with ~2,000 employees
St Louis finished all non-Boeing production
in August
Operational gains with 15% reduction in
cost of poor quality and 44% reduction in
customer quality escapes³
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