Melrose Mergers and Acquisitions Presentation Deck slide image

Melrose Mergers and Acquisitions Presentation Deck

Aerospace: overview Melrose £m Revenue EBITDA EBITDA margin % Operating profit Operating margin % 3 2 Buy Improve Sell Revenue by business 1 123 Adjusted¹ results H1 2022 1,366 1 Civil³ (36%) 2 Engines (34%) 3 Defence³ (30%) 139 10.2% 67 Balanced portfolio, well positioned for narrowbody recovery and business jet growth 4.9% Growth vs H1 2021 11% 22% 1.0ppts 65% 1.5ppts ■ 2 ■ Industry continues to be impacted by post COVID-19 issues; but market recovery gaining pace Sales growth of 11% versus H1 2021 - up 6% in Q1 and 17% in Q2 65% increase in operating profit; margins up 150bps Excellent Engines performance; Civil ramping-up to meet higher OEM build rates; Defence demand positive, but requires most operational improvement All required major restructuring projects underway to reach 14%+ operating margin target on market recovery Revenue by source ● 1 1 OE (90%) 2 Aftermarket (10%) Predominantly OE driven, with structural growth from engines RRSP contracts and attractive aftermarket 3 2 1. Described in the glossary to the 2022 Interim Financial Statements and considered by the Board to be a key measure of performance According to manufacturing country of origin 3. Civil and Defence relates to the airframes and components businesses Revenue by region² 1 Europe (exc UK) (45%) 2 North America (33%) 3 UK (19%) 4 Asia (3%) Providing vital technology to an enviable portfolio of global customers 27
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