Melrose Mergers and Acquisitions Presentation Deck
Key point 4: Potential profit recovery remaining
Melrose
4. Potential profit recovery remaining beyond 2022 consensus¹ (if recovering to 2019 revenue²)
Melrose Group today: Adjusted results³
£m
Revenue
EBITDA4 (pre-central costs)
EBITDA4 margin %
Operating profit (pre-
central costs)
Operating margin %
Melrose central costs
Operating profit (post-central costs)
1.
2.
Buy
3.
Improve 4.
Sell
5.
6.
Consensus¹
2022
7,635
919
year
12.0%
491
6.4%
(57)
434
Further profit recovery potential (if recovering from
2022 consensus¹ to 2019 revenue²)
Melrose
(Aerospace)
c.3x increase in
operating profit5
c.2.5x increase in
operating profit5
Automotive Group6
(DemergerCo)
c.2x increase in
operating profit5
Both Groups show substantial profit potential uplift if recovering from 2022 consensus¹ to 2019 revenue²; Aerospace c.3x;
Automotive Group6 c.2x
Restructuring projects required complete in the Automotive Group this year and materially complete in Aerospace next
This is not an internal Melrose forecast, it is a company compiled consensus from all 14 external analysts that cover Melrose, adjusting for the disposal of Ergotron where appropriate
Recovery to 2019 revenue volume levels calculated on a like-for-like basis
Described in the glossary to the 2022 Interim Financial Statements and considered by the Board to be a key measure of performance
: H1 2022)
Consensus¹ operating profit before depreciation and amortisation from subsidiaries and equity accounted investments (depreciation and amortisation calculated as
Represents mathematical uplift to 2022 full year consensus¹ adjusted operating profit when target operating margins are achieved on pre-COVID-19 sales volumes
Comprises the Automotive, Powder Metallurgy and Hydrogen group of businesses
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