Melrose Investor Conference Presentation Deck
Melrose key financial numbers: GKN & Nortek both highly cash generative (continued)
Melrose
4. Strong cash generation since the GKN acquisition from all businesses (continued)
Free cash inflow¹ since GKN acquisition
£1.0bn
Buy
Improve
Sell
Total
1.
2.
3.
£0.8bn
1
GKN
£0.6bn
Nortek²
Use of £3.5 billion total cash generation since GKN acquisition:
£1 billion:
Central
costs, tax &
interest
£0.4bn
1 Return to shareholders £1.1bn (31%)
2 Debt reduction £2.4bn (69%)
GKN has generated £1.7 billion of gross cash inflow
since ownership (120% profit conversion to cash post
capex) which has more than self funded its £0.5 billion
of restructuring costs and £0.4 billion³ of pension
contributions, giving £0.8 billion of total net free cash
inflow from GKN in Melrose ownership so far
Total cash inflow
Melrose has generated £3.5 billion of total cash inflow
since the GKN acquisition, consisting of £1 billion of
free cash inflow and £2.5 billion of proceeds from
disposals (excluding Nortek Control)
Use of proceeds
■
Currently debt reduction has been prioritised with £2.4
billion (69%) of the total cash inflow being used to lower
debt and £1.1 billion (31%) returned to shareholders.
There is room for a further Capital Return next year
Described in the glossary to the 2021 Interim Financial Statements, released on 2 September 2021
Nortek cash generation of £0.6 billion since GKN acquisition. During Melrose ownership Nortek has generated over £0.7 billion of cash after all costs
Includes £0.3 billion of contributions to GKN UK pension schemes and £0.1 billion to pension schemes in the rest of the world as at 30 June 2021
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