Presentation of Results for the half year ended 30th September 2000
29th November 2000
Johnson MattheyJohnson Matthey
Johnson Matthey
OverviewOverview
An excellent first half
Profit before tax up 40% to £86.0 million
Strong operating performance
Double digit growth in all three divisions
Investment for continued growth
Johnson Matthey
Summary ResultsSummary Results1H 1H
2000 1999
£m £m %
Turnover – Continuing 2,852 1,693 +68
Op. Profit - Continuing 82.7 67.1 +23
- Discontinued - (0.3)
Interest 3.3 (5.2)
Profit before tax* 86.0 61.6 +40
Exceptionals - 28.5
Goodwill amortisation (0.1) (0.1)
EPS * 27.9p 20.5p +36
Dividend 7.0p 6.1p +15
* Excluding exceptionals & goodwill amortisation
Operating Profit ContinuingOperating Profit Continuing
1H 1H 1H
2000 1999 2000 at 1999 rates
£m £m % £m %
Catalysts & Chemicals 46.2 39.3 +18 44.0 +12
Precious Metals 27.3 20.2 +35 26.8 +33
Colours & Coatings 15.5 13.4 +16 16.0 +19
Corporate (6.3) (5.8) (6.2)
82.7 67.1 +23 80.6 +20
Return on Sales Return on Sales Excluding Precious Metals
Sales excl. PM’s ROS
1H 1H 1H 1H
2000 1999 Growth 2000 1999
£m £m % % %
Catalysts & Chemicals 274 231 +18 16.9 17.0
Precious Metals 61 55 +12 44.8 37.0
Colours & Coatings 124 115 +8 12.5 11.7
459 401 +14 18.0 16.7
1H1999
£67.1m
37%
48%
10%5%
1H2000
£82.7m
37%
48%
7%
Europe
Rest of the World
Asia
North America
Geographical SplitGeographical SplitOperating Profit - Continuing
8%
InterestInterest
1H 1H
2000 1999
£m £m
Financial 3.7 (4.1)
Gold & Silver leases (0.4) (1.1)
3.3 (5.2)
Taxation Taxation
1H 1H
2000 1999
£m £m
Underlying tax 24.5 17.3
Tax on sale of EMD - 9.9
24.5 27.2
Average tax rate 28.5% 30.2%
Underlying tax rate 28.5% 28.1%
Free Cash FlowFree Cash Flow
1H 1H
2000 1999
£m £m
Operating profit 82.7 66.6
Depreciation and amortisation 19.8 26.9
Working capital / other (25.4) (19.5)
Cash flow from operations 77.1 74.0
Interest / tax / dividends (42.7) (50.4)
Capex - continuing (39.6) (23.6)
- EMD - (11.4)
Free cash flow (5.2) (11.4)
Net Cash FlowNet Cash Flow
1H 1H
2000 1999
£m £m
Free cash flow (5.2) (11.4)
Acquisitions (1.8) (2.8)
Disposals (0.2) 404.1
Shares issued 5.8 (2.0)
Net cash flow (1.4) 387.9
Exchange (3.4) 6.3
Movement in debt (4.8) 394.2
CapitalCapital
Sep 00 Mar 00
£m £m
Net (cash) / debt (161) (166)
Equity and minorities 815 760
Capital employed 654 594
Catalysts & Chemicals DivisionCatalysts & Chemicals Division
Operating ProfitSales
0
10
20
30
40
50
+18%+69%
1999 20001999 2000
377
638 39.3
46.2
£m £m
0
200
400
600
800
1H 1H1H1H
AutocatalystsAutocatalysts
Sales Volume up 10%
Driven by tighter standards
Legislation in developing countries
Growth in heavy duty diesel
Fuel CellsFuel Cells
Activity steps up
Developing manufacturing processes
Created as stand-alone business
Chemicals Chemicals
Strong performance from PGM refining activities
Good sales of chemical products
Process catalysts benefit from investment in manufacturing facilities
Pharmaceutical MaterialsPharmaceutical Materials
Growth in platinum based products
Growth in hydromorphone
Decline in generic methylphenidate
New products - chiral methylphenidate
Precious Metals DivisionPrecious Metals Division
Operating ProfitSales
0
10
15
20
25
+35%+74%
2000
1,198
2,087
20.2
27.3
£m£m
0
1000
1500
2000
500
2500
19991999 20001H 1H1H1H
30
5
Precious Metals DivisionPrecious Metals Division
Platinum business performs very well
Good growth in fabricated products
Gold business improves
Platinum & Palladium PricesPlatinum & Palladium Prices
Sept1998
$/oz900
800
700
600
500
400
300
200
100
0Sept2000
Sept1999
Palladium
Platinum
Sept1997
Colours & Coatings DivisionColours & Coatings Division
Operating ProfitSales
0
5
10
15
+16%+7%
119127 13.4
15.5
£m £m
0
100
150
200
50
20
1999 20001999 20001H 1H1H1H
Colours & Coatings DivisionColours & Coatings Division
Excellent results in Tile
Glass also performing well
Tableware markets remain difficult
Benefits of restructuring coming through
Investment in AutocatalystInvestment in Autocatalyst
New Royston facility
India facility opened
China facility open in spring
Heavy duty diesel
Investment in ChemicalsInvestment in Chemicals
Expansion of PGM refining
New process catalyst plant
Strategy for Colours & CoatingsStrategy for Colours & Coatings
Focus on growth markets
Investment in Tile in Spain and Brazil
Investment in Glass in Holland
Prototype Fuel Cell CarsPrototype Fuel Cell Cars
Fuel CellsFuel CellsMarket developments
California Fuel Cell Partnership launched
Small scale stationary applications first to market
JM well positioned to benefit
Potential for significant revenues even in early stages
Fuel CellsFuel Cells
Good progress in collaborations
Commitment of over 18 years of R&D
Strong patent position
OutlookOutlook
Continued strong growth in Autocatalyst Robust outlook for the PGMs Continued improvement in Colours &
Coatings Return to growth in Pharmaceuticals Increased investment in core businesses Pursuing acquisition opportunities
Johnson Matthey