Melrose Industries Plc · LSE:MRO
Melrose Industries — Investec conference November 2024
9 slides from Melrose Industries's conference presentation, November 2024
Slide 1: Melrose Industries PLC
Melrose Industries PLC Investec conference November 2024
Slide 2: Trading Update – 1 July to 31 October 2024
1 Trading Update – 1 July to 31 October 2024 2 3 2,3 Revenue up 7%, with Engines, up 17% and Structures growing at 1% Engines driven by aftermarket (+32%), Structures impacted by OE volume pressures and destocking 1 Strong performance Internal business improvement actions progressing as planne
Slide 3: Melrose Growth Strategy
Melrose Growth Strategy Market underpinned with strong structural long-term demand Design led ‘Super-Tier 1’ proprietary technology Profitably capture OEM Expand in new targeted Favourably position for and aftermarket growth opportunities next generation aircraft • Increasing returns from RRSPs • En
Slide 4: 2024 and 2025 Outlook
2024 and 2025 Outlook Aerospace 2024 guidance1 and 2025 target1 Aerospace operating margin2 % £m H1 2024 results 2024 guidance1 2025 target1 >18% Revenue 1,742 3,600-3,750 3,800 14.9% >15% Adjusted2 operating profit 260 550-570 700 12.5% Adjusted2 operating margin 14.9% >15% >18% 10.6% 10.7% Margin
Slide 5: Path to 2025 Margin Targets
Path to 2025 Margin Targets 2025 targets Progress to date Engines well ahead of plan; target to be exceeded 1% 1% 28% Lever Status Details 4% 2 3 22% • Ahead of plan due to high flight hours and strong profitable 1 1 RRSP Contribution aftermarket, especially with older engines flying longer 2 • Part
Slide 6: Consistent Compelling Equity Case
Consistent Compelling Equity Case Structural market • Long-term structural growth underpinned by strong • Technology embedded on the world's most growth end market demand and record backlogs successful, highest volume platforms1 Exceptional Engines • RRSP portfolio gives entitlement to lifetime shar
Slide 7: Appendix
Appendix Melrose
Slide 8: Foreign exchange environment
Foreign exchange environment Transactional hedging position1 EUR:USD 2024 2025 2026 2027 2028 2029 (figures in USD) Transactional FX exposures and approach Exposure in $m 630 491 361 293 289 184 • Main currency pairs are EUR:USD and GBP:USD • Additional SEK and NOK hedged vs USD1 Hedged 100% 85% 73%
Slide 9: Disclaimer
Disclaimer This presentation has been prepared by or on behalf of Melrose Industries PLC (“Melrose”). The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) the presentation to which this document rela
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