Melrose Investor Presentation Deck slide image

Melrose Investor Presentation Deck

Overview Melrose £m Revenue EBITDA EBITDA margin % Operating profit Operating margin % Buy Improve Sell 3 Revenue by business² 2 1. 2. 3. 4. 5. Adjusted¹ results 2021 2,543 258 Strong mix of technologies 10.1% 1 Civil5 (32%) 2 Engines (34%) 3 Defence5 (34%) 112 4.4% Growth Flat² 68% 4.3ppts 925% 3.9ppts ■ Markets remain impacted by COVID-19 with sales down 27% ² on 2019 Initial recovery started during year with sales growth of 18% 2 versus H2 2020 £98 million more operating profit on lower sales; margins up 3.9ppts Cash conversion (pre-capex) of 124% driven by working capital gains All required major restructuring projects to reach 12% ³ margin target now approved and underway Revenue by source² 2 O 1 1 OE (90%) 2 Aftermarket (10%) Growing aftermarket business 2 Strictly Confidential Described in the glossary to the Preliminary Announcement and considered by the Board to be a key measure of performance Based on existing businesses at 31 December 2021 10% margin target on a partial market recovery and 12% margin target on a recovery to pre-COVID-19 revenue According to customer's country of domicile Civil and Defence relates to the airframes and components businesses GKN Aerospace Revenue by destination ²,4 3 1 North America (68%) 2 Europe (30%) 3 Asia (2%) Diversified, global footprint 01 5
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