Melrose Investor Day Presentation Deck
Melrose
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Risk and revenue sharing partnerships (RRSPs)
Risk and revenue sharing business model
Life-of-programme commitment
GKN contributes an agreed percentage of total annual engine
programme costs, and receives the same percentage of total
annual engine programme revenue
GKN gains access to OEM aftermarket cash flows
GKN cash flow turns positive as engine enters service
GKN Aerospace value to partnership
Buy
Improve
Sell
Technology solutions to develop new, more efficient engines
Ability to continuously improve engine performance over lifetime
Financial strength to fund development phase
Operational expertise within selected core products
Trusted relationship with major OEMs
Cash profile of GKN's 19 RRSPs
£m
Cash generation phase
RRSP R
RRSP S
Product
development
RRSP
RRSP Q
RRSPPSP N
Production
RRSP
RRSPIRRSP H
RRSP K RRSP J
RRSP L
RRSP M
RRSP E RRSP D
RRSP G RRSP F
Aftermarket
Partnership model provides access to long-term, secured aftermarket cash flows
RRSP B
RRSP A
17 of 19
RRSPs in cash
generation
phase
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