Melrose Results Presentation Deck

Aerospace - markets, investment, technology and environment Melrose Markets Civil aerospace has a healthy backlog; long-term civil aerospace market remains in line with acquisition assumptions Boeing 737 MAX position being monitored closely with required mitigating actions being taken - GKN Aerospace has an approximate shipset value of up to £400k for each aircraft Military market is strong and could increase the balance of military versus commercial sales in the future Investment and restructuring Creation of "One Aerospace"; major new operational excellence programme commenced, focussed on serving customers better Delivery, quality and customer relationships all continue to improve, working capital improvement plans being implemented Good progress being made on resolving loss-making contracts - financial benefits expected to follow Closure of two loss-making sites underway, full exit expected during 2020 Significant capital investment injected into previously underinvested parts of the business and in to new growth areas Technology and ESG Record investment in technology - focussed on improving efficiency, weight and emissions of aircraft: Construction of the new Global Technology Centre in Bristol, UK is underway, expected to open in 2020 World leading additive manufacturing pilot production cell at Oak Ridge National Laboratory, US Technology centre in the Netherlands to focus on thermoplastic components Manufactured first components for the Wing of Tomorrow programme Additive technologies being developed to significantly reduce waste material from production processes I I 1 ■ ■ - Substantial research and development project into zero-emission hydrogen power systems planned for 2020 - decarbonisation opportunity leading to cleaner air Buy Improve Sell 16

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