Johnson Matthey Plc · LSE:JMAT

Johnson Matthey — H1 2002 Earnings Presentation

25 slides from Johnson Matthey's earnings presentation, Nov 28, 2002

  1. Slide 1: Presentation of Results for the half year ended 30th September 2002

     Johnson Matthey Presentation of Results for the half year ended 30th September 2002 28th November 2002

  2. Slide 2: Johnson Matthey

     Johnson Matthey 

  3. Slide 3: Overview

    Overview  Profit before tax up 3% to £95.0 million  Operating profit up 5% to £99.3 million  Good growth from Catalysts & Chemicals and Pharmaceutical Materials  Synetix acquisition provides significant new opportunities  Precious Metals hit by lower average prices and subdued trading condition

  4. Slide 4: Johnson Matthey

     Johnson Matthey 

  5. Slide 5: Summary Results

    Summary Results 1H 1H 2002 2001 £m £m% Turnover 2,247 2,647 -15 Operating profit* 99.394.4 +5 Interest (4.3) (2.2) Profit before tax* 95.092.2 +3 Exceptional items -1.6 Goodwill amortisation (4.8) (2.4) EPS * 30.7p 29.5p +4 Dividend 7.8p 7.5p +4 * Before exceptional items and goodwill amortisation 

  6. Slide 6: Operating Profit / Currency Effect

    Operating Profit / Currency Effect 1H 1H 1H 2002 at 1H 2001 2002 2001 £m exchange rates £m % £m % Catalysts & Chemicals 48.3 45.1 49.9* +11 +7 Precious Metals 25.4 29.3 25.8 -12 -13 Colours & Coatings 13.3 14.5 13.3 -8 -8 Pharmaceutical Materials 19.0 13.1 19.6 +50 +45 Corporate (6.7) (7.1) *Excludi

  7. Slide 7: Geographical Split

    Geographical Split Operating Profit 1H 1H 2002 2001 £99.3m £94.4m 10% 15% 7% 6% 35% 43% 40% 44% Europe Asia North America Rest of the World 

  8. Slide 8: Interest

    Interest 1H 1H 2002 2001 £m £m Financial (3.7) (0.4) Gold & Silver leases (0.6)(1.8) (4.3) (2.2) 

  9. Slide 9: Taxation

    Taxation 1H 1H 2002 2001 £m £m Underlying tax 28.2 27.2 Tax on exceptionals - 2.2 28.2 29.4 Underlying tax rate 29.7% 29.5% 

  10. Slide 10: Net Cash Flow

    Net Cash Flow 1H 1H 2002 2001 £m £m Operating profit 94.5 99.1 Depreciation and amortisation 29.9 25.4 Working capital / other (8.7) (10.1) Cash flow from operations 115.7 114.4 Interest / tax / dividends (60.5) (55.3) Capex (58.3) (67.2) Acquisitions / disposals 1.0 (141.0) Shares issued / (bought)

  11. Slide 11: Capital

    Capital Sep 02 Mar 02 £m £m Net debt 149159 Equity and minorities 852 818 Capital employed 1,001 977 Gearing 18%19% (debt / equity + minorities) Interest cover 23x43x 

  12. Slide 12: Divisional Performance

    Divisional Performance Sales Profits 1H 1H 2002 2002 £m % £m % Catalysts & Chemicals 526 -3048.3 +7 Precious Metals 1,523 -12 25.4 -13 Colours & Coatings 132 +1 13.3 -8 Pharmaceutical Materials 66 +63 19.0 +45 

  13. Slide 13: Key Issues

    Key Issues  Autocatalysts and car sales  Synetix  Fuel Cells  PGM prices  Pharmaceutical Materials 

  14. Slide 14: Autocatalysts

    Autocatalysts  Global car sales flat  Profits up  Excellent progress in heavy duty diesel  Roll out of precision coating nearing completion 

  15. Slide 15: Car Sales

    Car Sales '000 Vehicles Monthly Actual Half Yearly Average  US sales slightly up in 2,000 1,800 our first half 1,600  Poor September and 1,400 1,200 October 1,000 800  Full year outlook flat 600  Global car sales likely to 400 200 be flat to slightly down 0 1 2 2 01 O 2 -0 -0 -0 0 p- p- r r ct A

  16. Slide 16: Synetix

    Synetix  A global catalyst business  Base metal catalysts  Excellent fit  Elevates JM to number two in global market  Top line synergies 

  17. Slide 17: Growth Opportunities

    Growth Opportunities  Gas to liquids (GTL)  Chiral catalysis 

  18. Slide 18: Fuel Cells

    Fuel Cells  Business making excellent progress  Swindon Phase 1 complete 

  19. Slide 19: Fuel Cells

    Fuel Cells  MEAs meeting customer performance targets  Further investment at Swindon approved  Strategic partnership with Anglo Platinum 

  20. Slide 20: Platinum & Palladium Prices

    Platinum & Palladium Prices US $/oz 1,200 1,000 800 600 400 200 0 Mar 01 Sep 01 Mar 02 Sep 02 Platinum Palladium 

  21. Slide 21: Platinum Group Metal Prices

    Platinum Group Metal Prices  Platinum demand strong  Autocatalyst  Jewellery  Palladium well down  Less volatile markets impact trading income 

  22. Slide 22: Pharmaceutical Materials

    Pharmaceutical Materials  New product progress  Morphine and codeine manufacture in US  Expansion at Pharm-Eco  Poppy straw extraction  Cascade Biochem 

  23. Slide 23: Pharmaceutical Materials: New Products

    Pharmaceutical Materials New Products Patent Pre-clinical Phase I Phase II Phase III Protected Generic New products in development Nov 02 19 13 3 9 24 Jun 02 17 4 7 9 18 

  24. Slide 24: Outlook

    Outlook  Encouraging progress in first half  Expect the group to make continued progress year on year  Good long term prospects 

  25. Slide 25: Johnson Matthey

     Johnson Matthey 

Johnson Matthey — H1 2002 Earnings Presentation on 6ix