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  "documentTitle": "Melrose | Investor Presentation Deck | 33 slides",
  "authorId": "melrose",
  "authorName": "GKN Aerospace",
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  "presentationDate": "2023-10-01 00:00:00",
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      "kind": "callout",
      "text": "Net present values of future expected cash flow5 £5.5bn",
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      "text": "GKN Engines RRSP net cash inflow¹",
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      "text": "Calculated using industry forecasts with conservative assumptions\n17 programmes now in cash generation phase; remaining two programmes turn cash positive in next five years\nCash and profits now rising as engines are in profitable aftermarket phase\nGKN parts typically last life-of-the-programme, limited future cost of sales after engine is sold\nOur RRSP share is recorded as revenue with minimal costs in aftermarket phase, leading to higher margins over time\nMaturity of our programmes means that commercial, technology and warranty risk has reduced and continues to do so over time\nGKN expecting to invest in next-generation engines (e.g. CFM RISE and next-gen GTF); investment and returns not modelled",
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      "text": "1. Pre-tax\n2. Original equipment (OE) delivery forecast represents the OE sale of expected future engine deliveries on current programmes\n3. Aftermarket (AM) current fleet forecast includes AM on delivered engines\n4. Aftermarket (AM) delivery forecast represents associated AM of expected future engine deliveries on current programmes\n5. Calculation as per Capital Markets Event on 17 May 2023. Using a foreign exchange rate of USD:GBP of 1.25:1 and calculated using a discount rate of 7.5% which is between a debt related discount rate and a GKN Aerospace pre-tax weighted average cost of capital",
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      "kind": "title",
      "text": "Expecting to invest up to 10% of NPV in next generation of engines, no significant funding before 2030",
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      "kind": "title",
      "text": "RRSPs: cash mountain",
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