Presentation of Results for the year ended 31st March 2001
7th June 2001
Johnson Matthey
Johnson Matthey
OverviewOverview An excellent year
Operating profit up 20%
All three divisions producing strong organic growth
Profit before tax up 25% to £180.3 million
Accelerated investment in growth businesses
Johnson Matthey
Summary ResultsSummary Results2001 2000
£m £m %
Turnover 5,904 3,866 +53
Op. Profit – Continuing 175.2 146.5 +20
– Discontinued (0.2) (0.3)
Interest 5.3 (2.4)
Profit before tax* 180.3 143.8 +25
Exceptionals 0.5 13.6
Goodwill amortisation (0.3) (0.2)
EPS* 58.1p 47.5p +22
Dividend 23.3p 20.3p +15
* Excluding exceptionals & goodwill amortisation
Operating ProfitOperating Profit
2001 2000
£m £m %
Catalysts & Chemicals 98.9 84.8 +17
Precious Metals 57.4 45.4 +26
Colours & Coatings 32.2 27.9 +15
Corporate (13.3) (11.6)
175.2 146.5 +20
2001 at 2000 exchange rates
£m %
93.5 +10
56.0 +23
32.6 +17
(13.3)
168.8 +15
ROS
2001 2000
% %
17.5 17.2
35.5 40.0
12.9 11.9
17.9 17.4
Return on SalesReturn on Sales Excluding Precious MetalsExcluding Precious Metals
Sales excl. PM’s
2001 2000 Growth
£m £m %
Catalysts & Chemicals 565 494 +14
Precious Metals 162 114 +42
Colours & Coatings 250 234 +7
977 841 +16
2000£146.5m
2001£175.2m
Europe
Rest of World
Asia
North America
Geographical SplitGeographical SplitOperating Profit
InterestInterest
2001 2000
£m £m
Financial 6.7 (0.2)
Gold & Silver leases (1.4) (2.2)
5.3 (2.4)
Taxation Taxation
2001 2000
£m £m
Underlying tax 52.2 40.4
Tax on exceptionals 0.1 4.9
52.3 45.3
Average tax rate 29.0% 28.8%
Underlying tax rate 29.0% 28.1%
Return on InvestmentReturn on Investment20012000
£m£m
Operating profit 175 146
Average assets:
Equity and minorities 808 659
Cumulative goodwill w/o 46 109
Net (cash) / borrowings (153) 28
Total investment 701 796
Pre-tax ROA 25.0% 18.4%
Post-tax ROA 17.8% 13.2%
Economic value added £53m £32m
Free Cash FlowFree Cash Flow
2001 2000
£m £m
Operating profit 174.1 136.2
Depreciation and amortisation 41.1 46.6
Working capital / other (58.7) (52.5)
Cash flow from operations 156.5 130.3
Interest / tax / dividends (78.8) (78.1)
Capex - gross (98.9) (63.4)
- disposals 4.2 9.1
- EMD - (11.4)
Free cash flow (17.0) (13.5)
Net Cash FlowNet Cash Flow
2001 2000
£m £m
Free cash flow (17.0) (13.5)
Acquisitions (7.5) (2.9)
Disposals 0.6 401.7
Shares issued 7.9 8.0
Net cash flow (16.0) 393.3
Exchange (9.9) (5.9)
Movement in debt (25.9) 387.4
CapitalCapital
Mar 01 Mar 00
£m £m
Net (cash) / debt (140) (166)
Equity and minorities 856 760
Capital employed 716 594
Operating ProfitSales
0
20
40
60
80
100
+17%+76%
2000 20012000 2001
£m £m
0
600
900
1200
1500
300
1800
Catalysts & Chemicals DivisionCatalysts & Chemicals Division
856
84.81,503
98.9
Catalytic SystemsCatalytic Systems
Sales volume up 9%
Growth in market share
New facilities
New process technology
Fuel CellsFuel Cells
Testing facility complete
Ballard co-operation expanded
Expanding existing capacity for catalyst, MEAs and fuel processors
Planning MEA manufacturing plant, UK site found
Chemicals Chemicals
Buoyant market for PGM refining activities
Strong growth in process catalysts and PGM chemicals
Major investment in upgrading and expanding refining capacity
Pharmaceutical MaterialsPharmaceutical Materials
Strong growth in platinum pharmaceuticals
Good initial sales of chiral methylphenidate
Pharm-Eco acquisition
Operating ProfitSales
+26%+55%
2000 20012000 2001
£m£m
0
1400
2100
2800
3500
700
4200
0
10
20
30
50
60
40
Precious Metals DivisionPrecious Metals Division
2,672
45.4
4,146 57.4
Precious Metals DivisionPrecious Metals Division
Strong growth in Platinum
Good year for fabricated products
Growth in components for medical devices
Gold business slightly down
200
400
600
800
1,000
1,200
Platinum Palladium Mar99 Mar00 Mar01 Jun01
US $
Platinum & Palladium PricesPlatinum & Palladium Prices
Precious Metals DivisionPrecious Metals Division
Strong growth in Platinum
Good year for fabricated products
Growth in components for medical devices
Gold business slightly down
+15%+6%
2000 20012000 2001
£m £m
0
100
150
200
250
50
300
Operating ProfitSales
0
5
10
15
25
30
20
35
Colours & Coatings DivisionColours & Coatings Division
241 27.9255
32.2
Colours & Coatings DivisionColours & Coatings Division
Improving financial performance
Strong growth in Tile
Good performance from Glass
Investment in growth markets
Tableware restructuring benefits delivered
StrategyStrategy
Focused the group
Invest in organic growth
Complementary acquisitions
Outlook - Major ProjectsOutlook - Major Projects
Autocatalyst - new process technology
PGM refining expansion
Complete new pharmaceutical facility
Tile facilities in Spain / Brazil
Fuel cells
Outlook - ProspectsOutlook - Prospects
Continued good growth in Catalytic Systems
Prospects for Platinum favourable
Encouraging start to the new year
Johnson Matthey
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