Rosebank Industries (ROSE) investor relations material

Executive summary

• Opportunity to acquire MW Components and CPM, two high-quality businesses with strong market positions and differentiated technology, at appropriate valuations.

• Both targets fit the "Buy, Improve, Sell" strategy, with significant potential for margin expansion and value creation.

• Targeted operating margin expansion of 6-7 percentage points for both businesses, aiming to double shareholder investment in 3-5 years.

• ECI, the first acquisition, is performing ahead of expectations, supporting the value creation playbook.

• Intention to step up to the main market of the London Stock Exchange in Q2 2026, with expected FTSE250 inclusion.

Transaction overview

• Combined enterprise value for MW Components and CPM is $3.05bn, with a potential $200m earn-out linked to CPM's FY26 performance.

• MW Components FY25 revenue: $500m, adjusted EBITDA: $95m (19% margin); CPM FY25 revenue: $713m, adjusted EBITDA: $175m (25% margin).

• Acquisition funded by ~$750m debt and £1.9bn (~$2.6bn) equity raise.

• Pro-forma acquisition leverage expected at ~2.75x.

MW Components: business and improvement plan

• Leading US provider of precision metal components, with strong brands and blue-chip customers in aerospace, defense, and industrial markets.

• FY25 group revenue: $500m; adjusted operating profit: $77m; margin: 15.4%.

• Improvement plan includes head office efficiencies, facility optimization, footprint rationalization, contract renegotiation, scaling aerospace/defense exposure, and reducing debt.

• Targeting operating margin increase from 15% to 21-22% and significant head office cost savings ($10-15m).

• Plan to accelerate growth in high-margin aerospace/defense and improve profitability by consolidating sites and exiting unprofitable contracts.