Melrose Results Presentation Deck

Pensions and tax Melrose UK defined benefit schemes - accounting surplus/(deficit) 31 December 2019 £m GKN 2016 GKN Group Pension Sche hes (Numbers 1 - 4) GKN post retirement medical Nortek Air Management Brush Total UK defined benefit schemes I ■ I Assets Tax 541 2,243 20 Buy Improve Sell 278 3,082 Liabilities (486) (2,711) (11) (33) (261) (3,502) 1. Including the contribution paid on 6 January 2020 Surplus/ (deficit) 55 The GKN UK defined benefit schemes are significantly better funded, aided by over £240¹ million of cash contributions from the Group so far during Melrose ownership, fully in line with the plan agreed with the Trustees (468) (11) (13) 17 Along with better investment returns, the remaining required contributions to make these schemes well funded has reduced from up to £1 billion at acquisition to c.£500 million (420) UK pension plan re-organisation completed the GKN 2012 pension scheme was split into separate schemes on 1 July 2019; with approximately two thirds of the members allocated to Aerospace and one third allocated to Automotive The full year effective Income Statement tax rate has reduced to 21.4%, which is considered to be a good guide for the new ongoing rate for the Group 11

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