Melrose, which is listed on the London Stock Exchange, seeks to acquire businesses it understands, improve them by a mixture of investment and changed management focus and, in a three to five year time frame, realise the value created and return it to shareholders in the most efficient way possible.

Melrose is not a passive investor and its senior executives work closely with divisional managers to support the development of its subsidiaries. This encompasses both long term strategic planning and regular input on a range of commercial issues.

Acquisition & disposal rationale

The Board of Melrose seeks to acquire industrial businesses that it can improve. The businesses need to have strong fundamentals, for instance a leading market share and high quality products, which allow it to generate sustainable cash flows and profit growth. They will be underperforming in some way, not reaching their potential and have a problem which Melrose can fix.

Once the value creation has been optimised under Melrose ownership and the businesses can benefit from new owners, Melrose seeks to dispose of the businesses and return the value created to shareholders.

About Melrose PLC

For further information on the
Group’s strategy and history visit:

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Investor Information

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> 2008 Annual Report
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“The fragile signs of global economic recovery that emerged in the second half of 2009 have continued to build and as we enter the new year there is undoubtedly a much improved feeling of confidence, albeit tinged with some caution.

“In our early cycle businesses this upturn has already been reflected in higher sales, whilst in our later cycle businesses order books have been improving, which will translate into higher sales as appropriate. On the back of operational efficiency gains in our manufacturing plants and lower costs, this should feed through strongly into better performance.

Barring any unforeseen events, we are very positive about the potential of the Group for this year.”

D Roper