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