Melrose Results Presentation Deck

Loss-making contracts Melrose £m Aerospace Automotive Powder Metallurgy Other Total ■ I On Buy Improve Sell acquisition 316 200 106 7 629 Utilised (108) (68) (22) (7) (205) Released (101) (53) (69) (223) Other¹ 14 7 19 40 At 31 December 2020 121 86 34 1. Other includes foreign exchange movements and the unwind of discount on loss-making contract provisions 2. Described in the glossary to the 2020 Preliminary Announcement, released on 4 March 2021 241 Utilisation 2020 32 21 5 1 59 Released 2020 72 (7) 36 Since acquisition of GKN, loss-making contract provisions have reduced from £629 million to £241 million, a reduction of over 60% 35% of the provision has been released, in adjusting items to avoid positively distorting the adjusted results, as a result of operational efficiencies, procurement and improved technology plus some customer renegotiations All divisions have reduced their provision by greater than 50% Utilisation in the year of £59 million, included within adjusted² operating profit, and a net release of £101 million, treated as an adjusting item and excluded from adjusted² operating profit 101 32

View entire presentation