Melrose Investor Day Presentation Deck
£m
700
600
500
400
300
200
100
0
1980
-100
Melrose
Outstanding future cash flows from secured aftermarket
Buy
Improve
Sell
1985
2.
3.
4.
5.
Firm orders²
Forecast orders³
Investment
1990
GKN Engines cash flow outlook¹
1995
2000
2005
2010
Significant upturn in
cash flow underway
2015
2020 2025 2030
Net present value
of future expected
cash flow5
£5bn
2035 2040 2045 2050
2055
2060
■
I
■
■
19 RRSP programmes across OEMs
17 programmes now cash positive
annually
47% of Engines sales from RRSPs,
17% of 2021 GKN Aerospace4
High share of narrowbody engines at
the optimum place in their lifecycle
£18.5bn total expected cash flows from
2022, with net present value of c.£5bn5
1. Pre-tax and excluding a nominal amount of maintenance capex
Firm orders include aftermarket on delivered engines and both the original equipment sale and associated aftermarket of published engines orders
Forecast orders represent the original equipment sale and associated aftermarket of expected future engine orders on current programmes
Total 2021 revenue (£2,543m) adjusted for divestments of Fokker Services, Fokker Techniek and Santa Ana and the future site closure of St Louis
Using a foreign exchange rate of USD:GBP of 1.30:1 and calculated using the midpoint between a debt related discount rate of 5% (NPV c.£7bn) and a GKN Aerospace pre-tax weighted average cost of capital discount rate of 10%
consistent with data in the Melrose Industries PLC 2021 Annual Report (NPV c.£3.5bn)
28View entire presentation