Rosebank Industries (ROSE) Investor presentation summary

Strategic vision and business model

• Pursues a "Buy, Improve, Sell" strategy targeting underperforming industrial businesses with strong market positions and profitability potential, aiming to double invested equity in 3-5 years and return value to shareholders.

• Listed in July 2024 with £50m initial investment and plans to move to the main board in 2026.

• Raised £1.14bn equity and secured $900m in debt facilities to acquire Electrical Components International (ECI) in August 2025.

• Identifies a robust pipeline for both incremental ECI deals and unrelated industrial opportunities requiring future equity raises.

Leadership and track record

• Led by two Melrose co-founders and four senior managers with a 20-year record of value creation through operational improvement.

• Team has raised over £10bn equity and £17.3bn debt, returning £8.3bn to shareholders and achieving a 2.5x average return on equity for exited businesses.

• Focuses on margin improvement, maintaining leverage below 2.5x, and leveraging public equity markets for acquisitions.

ECI acquisition and value creation plan

• ECI is a US-based market leader in electrical solutions, acquired for $1.9bn EV, with a target to expand EBITDA margin from 15% to 20% and operating margin from 13% to 18%.

• ECI benefits from strong positions in high-growth electrification markets, with 78% of revenue from North American blue-chip customers.

• Margin improvement initiatives include restructuring, cost recovery, plant optimization, and SG&A reduction.

• Actions already taken include closing a duplicate head office, consolidating sites, and migrating production to lower-cost regions.