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