REG - Melrose Industries - Capital Markets Day

Melrose IndustriesAnnouncement

07/06/2022 17:00

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RNS Number : 0472O  Melrose Industries PLC  07 June 2022

7 June 2022

 

MELROSE INDUSTRIES PLC

Capital Markets Event

Melrose Industries PLC ("Melrose") is hosting a virtual Capital Markets Event
on GKN Aerospace tomorrow, 8 June 2022, starting at 2.30pm (UK).

The event will include a presentation from David Paja, CEO of GKN Aerospace,
opening and closing remarks from Simon Peckham and Geoffrey Martin, CEO and
CFO of Melrose respectively, and a live Q&A session with all three
speakers.

The presentation will highlight the higher full potential of the GKN Aerospace
business, including exceptionally strong future cash flow dynamics.

It will include information as follows:

·      Higher potential: An upgraded medium term operating margin target
of 14%+ on a full market recovery

·     Healthy growth: An expected revenue annual growth rate of 7% to
2030, with a faster rebound to 2025 of greater than 10%

·     Exceptional cash flow dynamics: An expected lifetime net cash
inflow of £18.5 billion on 19 engine contracts with a net present value of
c.£5 billion(1).  These contracts currently comprise only 5% of Melrose
Group revenue

·      Accelerated progress on restructuring: Substantially complete by
the end of 2023

·      Strong sustainability qualities: An excellent technology
portfolio focused on increased efficiency and sustainability

There will be no new information on current trading.

The presentation slides are currently available on the Melrose website
at:

www.melroseplc.net/investordays
(https://eur02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.melroseplc.net%2Finvestordays&data=05%7C01%7CDora.Masullo%40melroseplc.net%7C8f0ea468bcc4445659e108da47ac0b2a%7C4e0526a9ff5648619c67c5618bc7d5ff%7C0%7C0%7C637901101512981674%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=cBy8okOPx5Zj6j9MdhSsHMeOZJ%2BLyv6RdNm73OxiG%2FU%3D&reserved=0)

 

1.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)

 

 

 

 

 

 

 

 

Enquiries:

 Montfort Communications:     Nick Miles

                              +44 (0) 20 3514 0897 / +44 (0) 7739 701 634

                              miles@montfort.london (mailto:miles@montfort.london)

                              Charlotte McMullen

                              +44 (0) 20 3514 0897 / +44 (0) 7921 881 800

                              mcmullen@montfort.london (mailto:mcmullen@montfort.london)

 Melrose Investor Relations:  Chris Dyett

                              +44 (0) 7974 974 690

                              ir@melroseplc.net (mailto:ir@melroseplc.net)

 

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