Melrose Results Presentation Deck

Pensions: despite COVID-19, deficits have reduced Melrose UK defined benefit schemes 31 December 2020 £m GKN 2016 GKN Divisional Pension Schemes GKN post retirement medical Nortek Air Management Brush Total UK defined benefit schemes ■ Assets Buy Improve Sell 554 2,556 22 310 3,442 Liabilities (481) (2,755) (9) (35) (280) (3,560) Surplus/ (deficit) 73 (199) (9) (13) 30 (118) The GKN UK defined benefit accounting deficit of £0.1 billion has reduced by over 80%, from £0.7 billion just before acquisition The funding positions of the GKN UK pensions schemes have improved significantly. At acquisition these schemes had a deficit of 'up to £1 billion'; the GKN 2016 plan has already achieved its funding target and the funding deficit on the GKN Divisional Pension Schemes is now only c.£370 million The GKN Divisional Pension Schemes accounting deficit is split between Aerospace, 58%, and Automotive, 42% 13

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