Melrose Results Presentation Deck slide image

Melrose Results Presentation Deck

Structures: margin expansion drivers on track I ■ ■ 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 123 ■ 1. 2 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 ■ ■ 3 - 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 23
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