Johnson Matthey Plc · LSE:JMAT
Johnson Matthey — Investor Day (February 2016)
98 slides from Johnson Matthey's investor day presentation, Feb 4, 2016
Slide 1: Johnson Matthey and the Evolving Powertrain
Presentation to Analysts / Investors Johnson Matthey and the Evolving Powertrain 4th February 2016
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which Johnson Matthey operates. It is believed that t
Slide 3: Introduction and Strategy Update
Introduction and Strategy Update Robert MacLeod Chief Executive
Slide 4: Programme
Programme 13.30 Introduction and Strategy Update Robert MacLeod Capturing Value from Powertrain Evolution 13.50 Q&A and coffee break after this session Nick Garner and John Walker Automotive Emission Control Regulations and Technology Trends 15.00 Q&A and coffee break after this session Chris Morgan
Slide 5: Purpose of the Day
Purpose of the Day Update Explain Detail Highlight on progress in how global how high technology how Johnson Matthey delivering group drivers are influencing solutions in both is positioned to create strategy future powertrain emission control and superior value from developments and electrification
Slide 6: Update on Current Trading
Update on Current Trading Sales* up 3%; operating profit lower £ Action to reduce costs by £30m p.a. well underway Strong growth in ECT ! Difficult trading conditions persist in PT and PMP Good progress in FC and NB Outlook for FY in line with current market expectations *2014/15 and 2015/16 adjuste
Slide 7: Difficult Macroeconomic Climate
Difficult Macroeconomic Climate Oil price China Pgm prices • 40% fall in last 12 • Lower GDP growth • Pt and Pd down 30% months forecast and 35% since last year • Sufficient chemical • Lowest Pt prices since capacity end 2008 • Review of coal strategy Investment delays Delays and Lower pgm refining
Slide 8: Good Progress in Strategy Delivery
Good Progress in Strategy Delivery Customer Create focus value Collaborate to Growth from The best of leverage our new business big and small expertise Invest in Operational The Johnson people, Build on our excellence and Matthey products and core strengths sustainability culture technology 8
Slide 9: Good Progress in Strategy Delivery
Good Progress in Strategy Delivery Invest in people, products and technology • Invest ~5% p.a. of sales in R&D • Expect capex at ~1.5x depreciation Build on our core strengths • Disposal of two non‐core businesses • Medium term organic growth opportunities remain Customer Create focus value Growth f
Slide 10: Good Progress in Strategy Delivery
Good Progress in Strategy Delivery Operational excellence and sustainability • Increased focus on health and safety • Business systems upgrade on track Customer focus • Leverage more from value add and total JM offering • Facilitate entry into new markets Customer Create Create value focus value • S
Slide 11: Sustainability Drivers Provide Superior Growth for JM
Sustainability Drivers Provide Superior Growth for JM Global Drivers Population Growth • Provide opportunities across all businesses Urbanisation Increasing • JM well positioned in emerging markets Wealth Population Growth Health & Nutrition Natural Urbanisation • Energy security remains a major dri
Slide 12: Global Drivers Continue to Provide Opportunities for Powertrain Technology
Global Drivers Continue to Increased demand for mobility, focus Provide Opportunities for on emissions Population Powertrain Technology Growth Urbanisation Increasing Population Wealth Growth Urbanisation Increasing Wealth Environmental Improved fuel Tighter emission Natural efficiency, Natural regu
Slide 13: Imperative for Improved Air Quality Supports Growth
Imperative for Improved Air Quality Supports Growth Legislation continues to tighten at pace • Regulated pollutants and CO2 in focus • ICE remains main powertrain technology for next decade; increased hybridisation • Increased opportunity for JM from diversified powertrain ECT Battery Technologies I
Slide 14: Driving Success in Evolving Powertrain Market
Driving Success in Evolving Powertrain Market Chemistry and applications know how at heart of powertrain technology solutions Chemistry… …and its application Specialist Coatings technology expertise Pgm and Surface chemistry science ADVANCED Integration MATERIAL into DESIGN apps Character‐ Manufactu
Slide 15: The JM Advantage in Powertrain Solutions
The JM Advantage in Powertrain Solutions • Strong expertise in translating metal chemistry Chemistry & solutions into auto Applications applications • Ability to scale up • Deep relationships • Efficient manufacturing Operational Customer with OEMs • Well positioned in Efficiency Focus • Strong repu
Slide 16: Key Takeaways
Key Takeaways JM remains well placed for Robust strategy and strong Evolution of the sustained long term market drivers powertrain requires growth high technology solutions 16
Slide 17: Capturing Value From Powertrain Evolution
Capturing Value From Powertrain Evolution Nick Garner Division Director, New Businesses and Corporate Development John Walker Executive Director, Emission Control Technologies
Slide 18: Overview
Overview Explain Outline Highlight how tightening legislation how JM’s gasoline and how JM is well placed to and electrification offer diesel emission control benefit further from strong growth technologies will the expanding market opportunities for JM continue to play an for battery technologies i
Slide 19: JM – Well Placed to Meet Future Powertrain Needs
JM – Well Placed to Meet Future Powertrain Needs • Global leader in emission control JM Sales by Powertrain Application • Major lithium iron phosphate (LFP) supplier Alternative for automotive applications Powertrain Technologies • Supplying / awarded 15 automotive Light Duty 3% platforms Emission C
Slide 20: Key Trends in Automotive
Key Trends in Automotive + Vehicle numbers Autonomous Increased Car increasing vehicles connectivity sharing Lightweighting Increased Electrification regulation Enabler: New technology development and implementation 20
Slide 21: Legislation Continues to Tighten
Legislation Continues to Tighten 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Regulated Standards tighter in all major regions to 2025: Real world driving emission (RDE) in Europe Emissions CO2 / Fuel Tightening in North America and Europe: Supports diesel share in Europe Economy ZEV North
Slide 22: Diesel – Key to Meeting CO2 Targets
Diesel – Key to Meeting CO2 Targets Diesel engine inherently more fuel efficient than gasoline counterpart • CO2 emissions ~15% lower* than gasoline car Diesel cars continue to get cleaner • Advanced aftertreatment technology • Proposed London / Paris emission zones will allow current (Euro 6b) dies
Slide 23: More Diverse Powertrain is Positive for JM
More Diverse Powertrain is Positive for JM From this… to this… IC Gasoline IC Diesel MHEV FHEV Mild Hybrid Electric Vehicle Full Hybrid Electric Vehicle Honda Integrated Motor Assist Toyota Prius Buick LaCrosse EAssist Ford Fusion Hybrid PHEV / EREV BEV FCEV Plug‐in Hybrid / Extended Battery Electri
Slide 24: In 2025 ~97% of Cars Still Have ICE
In 2025 ~97% of Cars Still Have ICE millions 120 Gasoline and diesel ICE remain 100 major technologies 80 No IC 60 • Absolute number of diesel cars IC Containing ‐ Gasoline 40 continues to increase IC Containing ‐ Diesel 20 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 More electrificatio
Slide 25: Similar Story in Heavy Duty Market Too
Similar Story in Heavy Duty Market Too • Good growth in regulated heavy duty engines • Low emission zones to improve air quality (6% CAGR)* to 2025 in cities • Legislation continues to tighten • Requirement for higher technology catalysts • China – Euro VI from 2017, Tier 4a/b • Strong growth in BEV
Slide 26: Added Value from Technology
Added Value from Technology H2 MHEV/FHEV HEV / PHEV Battery IC Gasoline IC Diesel (Gas / diesel) PHEV / EREV BEV FCEV Truck Truck / Bus Electric Bus JM technology presence Potential value ‐ emission £ 1‐2x £ 5‐7x £ 1‐7x £ 1‐7x ‐ ‐ £ 20x £ 20x ‐ control SAME AS GAS / DIESEL Potential value ‐ ‐ £ 1x £
Slide 27: Market to Reach Over $20bn by 2025
Market to Reach Over $20bn by 2025 Expanding market for emission control catalysts and battery materials Market Outlook for Powertrain Technologies sales ex pms $m CAGR • Continued good growth in light 2015‐2025 duty catalysts market 25,000 10% Global CAGR 2015‐2025 ($6bn in 2015 to >$9bn by 2025) 2
Slide 28: Capturing the Value
Capturing the Value Invest in R&D to develop next generation technologies Exploit expertise in chemistry and applications Optimise efficiencies in manufacturing and across supply chain Use JM brand and reputation to broaden JM offering Expand JM’s position as key technology supplier for low emission
Slide 29: Key Takeaways
Key Takeaways Increasing opportunities for JM Emission control technologies continue to technologies from automotive trends be key enabler – ICE remains major powertrain technology Battery technologies market set JM well placed to capture value to expand – JM business on track 29
Slide 30: Q&A
Q&A UME Johnson Matthey
Slide 31: Automotive Emission Control Regulations and Technology Trends
Automotive Emission Control Regulations and Technology Trends Dr Chris Morgan European Technology Director, Emission Control Technologies Dr Andy Walker Divisional Technology Director, Emission Control Technologies
Slide 32: Overview
Overview Outline Present Show Highlight Describe global growth incoming global how we maintain opportunities resulting how these trends in vehicle regulatory trends differentiation from regulatory, opportunities and engine – continued through technology customer and market drive future sales product
Slide 33: Vehicle Numbers Continue to Increase
Vehicle Numbers Continue to Increase Light Vehicle Sales Outlook by Region (calendar years) millions CAGR 120 3% Global CAGR 2015‐2025 2015‐2025 3% • Continued steady global 100 growth 80 • Good growth in BRICs 4% • Shared mobility models 60 likely to increase 40 • Shorter holding times 3% and faste
Slide 34: Legislation Continues to Tighten Around the World
Legislation Continues to Tighten Around the World Light Duty Emissions Control Legislative Roadmap 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU 6b EU 6c / RDE Phase 1 RDE Phase 2 / 95 g/km CO2 EU 7? North America EPA Tier 2 Tier 3 Phase In: NMOG + NOx, PM Tightening North America
Slide 35: Focus on Gasoline and Diesel Emissions in Europe
Focus on Gasoline and Diesel Emissions in Europe Light Duty Emissions Control Legislative Roadmap 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU 6b EU 6c / RDE Phase 1 RDE Phase 2 / 95 g/km CO2 EU 7? North America EPA Tier 2 Tier 3 Phase In: NMOG + NOx, PM Tightening North America
Slide 36: North America – California Still Leads the Way
North America – California Still Leads the Way Light Duty Emissions Control Legislative Roadmap 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU 6b EU 6c / RDE Phase 1 RDE Phase 2 / 95 g/km CO2 EU 7? North America EPA Tier 2 Tier 3 Phase In: NMOG + NOx, PM Tightening North America CA
Slide 37: Tightening Legislation Continues at Pace in Asia
Tightening Legislation Continues at Pace in Asia Light Duty Emissions Control Legislative Roadmap 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU 6b EU 6c / RDE Phase 1 RDE Phase 2 / 95 g/km CO2 EU 7? • Japan JP18 – From 2018 • China Nationwide North America EPA • Tier WLTC2 excludi
Slide 38: Tightening CO2 / Fuel Economy / GHG Requirements
Tightening CO2 / Fuel Economy / GHG Requirements 280 260 240 Additional GHG limits for the US: normalised to NEDC Test Cycle 220 N2O: 0.010 g/mile 200 CH4: 0.030 g/mile Grams CO2 per km 180 Mexico 2016: 169 160 S. Korea 2015: 153 China 2020[1]: 117 140 120 US 2025[1]: 109 India 2011: 113 100 Japan 2
Slide 39: Euro 7?
Euro 7? Formal discussions on Euro 7 delayed until RDE legislation is fixed Likely topics include: • Fuel neutral limits (i.e. lower diesel NOx) • Further tightening of RDE CFs • (Urban?) NO2 limits • Addition of criteria pollutants including N2O and NH3 CO2 The European Commission also has an ambit
Slide 40: Other Technology Drivers
Other Technology Drivers Engine technology developments • More downsized, turbocharged engines • Stop‐start, more energy recuperation, mild and plug‐in hybrids • GDI increases, lean burn gasoline remains niche • Improved injectors and cylinder design to reduce gasoline PN • Cooled EGR to reduce dies
Slide 41: Johnson Matthey Clean Diesel Technologies
Johnson Matthey Clean Diesel Technologies Solutions to control NOx emissions UREA CSF SCR® SCRF® CSF NOx Adsorber Catalysts (NAC) Selective Catalytic Reduction (SCR) Advanced SCR • Pgm based catalyst • Metal‐zeolite based catalyst • Allows improved thermal management • Requires fuel addition, hence
Slide 42: Johnson Matthey Clean Diesel Technologies
Johnson Matthey Clean Diesel Technologies Solutions to control NOx emissions UREA CSF NOx Adsorber Catalysts (NAC) • Pgm based catalyst CSF SCR® SCRF® • Requires fuel addition, hence penalty on fuel consumption • Favoured on smaller vehicles Selective Catalytic Reduction (SCR) Advanced SCR • Metal‐z
Slide 43: Euro 6 Technology Already Improving Real World NOx
Euro 6 Technology Already Improving Real World NOx A third of Euro 6b diesel (and all Euro 6 gasoline) cars tested met 2.1x NOx CF Real World NOx (g/km) 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Sep‐2011 Apr‐2012 Oct‐2012 May‐2013 Nov‐2013 Jun‐2014 Dec‐2014 Jul‐2015 Euro 5 Euro 6 2017/19 2020/21 S
Slide 44: Johnson Matthey Gasoline Filter Technologies
Johnson Matthey Gasoline Filter Technologies Solutions to control gasoline PN emissions JM to launch two types of coated Gasoline Particulate Filter systems in 2016: Three Way Catalyst (TWC) plus coated Three Way Filter (TWFTM) Gasoline Particulate Filter (cGPF) plus downstream TWC TWC cGPF • Develo
Slide 45: JM Catalyst Development Focus
JM Catalyst Development Focus Similar themes for both diesel and gasoline catalyst development: Temperature Increased thermal Reduced system Reduced precious • Lower catalyst light‐ durability backpressure metal content off temperatures • Gasoline peak ageing • To maximise power • Cost control for a
Slide 46: Good Sales Growth Continues in Light Duty
Good Sales Growth Continues in Light Duty sales ex pms $m 10,000 • Market size $6bn in 2015 growing to 5% CAGR 2015‐2025 9,000 over $9bn by 2025 8,000 7,000 • European diesel remains a very 6,000 important sector 5,000 4,000 • RDE legislation and GPFs provide 3,000 opportunities in Europe 2,000 1,00
Slide 47: Summary
Summary + Emissions legislation Increased uptake of latest continues to tighten around the world catalyst technologies Political and public pressure for clean vehicles Further catalyst Opportunity for growth into development required next decade, supported by vehicle production, legislation and impr
Slide 48: Regulatory and Technology Trends in the Global HDD Market
Regulatory and Technology Trends in the Global HDD Market Dr Andy Walker Divisional Technology Director, Emission Control Technologies
Slide 49: Heavy Duty Vehicle Regulated Engines To Increase
Heavy Duty Vehicle Regulated Engines To Increase Heavy Duty Regulated Engines Outlook by Region (calendar years) thousands 5,000 6% Global CAGR 2015‐2025 CAGR 4,500 2015‐2025 Continued growth to 2025 4,000 3,500 • Rapid growth in Asia, led by 3,000 8% China and India 2,500 2,000 1,500 • Good growth
Slide 50: Further Tightening of Heavy Duty Regulation
Further Tightening of Heavy Duty Regulation Heavy Duty Diesel Emission Control Legislative Roadmap On Road 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU VI EU VII? North America GHG Phase 1 GHG Phase 2 North America (CARB) GHG Phase 1 GHG Phase 2 and CARB Ultra Low NOx Japan JP09
Slide 51: Incoming Europe and North America Regulations
Incoming Europe and North America Regulations Heavy Duty Diesel Emission Control Legislative Roadmap On Road 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU VI EU VII? North America GHG Phase 1 GHG Phase 2 North America (CARB) GHG Phase 1 GHG Phase 2 and CARB Ultra Low NOx Japan JP0
Slide 52: China / India EUVI Adds Filters
China / India EUVI Adds Filters Heavy Duty Diesel Emission Control Legislative Roadmap On Road 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU VI EU VII? North America GHG Phase 1 GHG Phase 2 North America (CARB) GHG Phase 1 GHG Phase 2 and CARB Ultra Low NOx Japan JP09 JP16 South K
Slide 53: EU Non-road Stage V Mandates Filter Fitment
EU Non‐road Stage V Mandates Filter Fitment Heavy Duty Diesel Emission Control Legislative Roadmap On Road 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU VI EU VII? North America GHG Phase 1 GHG Phase 2 North America (CARB) GHG Phase 1 GHG Phase 2 and CARB Ultra Low NOx Japan JP09
Slide 54: China Non-road Regulations Require Emission Control
China Non‐road Regulations Require Emission Control Heavy Duty Diesel Emission Control Legislative Roadmap On Road 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU VI EU VII? North America GHG Phase 1 GHG Phase 2 North America (CARB) GHG Phase 1 GHG Phase 2 and CARB Ultra Low NOx Jap
Slide 55: CARB Ultra Low NOx Regulation Proposals
CARB Ultra Low NOx Regulation Proposals Heavy Duty Diesel Emission Control Legislative Roadmap On Road 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Europe EU VI EU VII? North America GHG Phase 1 GHG Phase 2 North America (CARB) GHG Phase 1 GHG Phase 2 and CARB Ultra Low NOx Japan JP09 JP16
Slide 56: PM Emissions
Regulations in the Global On Road HDD market 0.03 JP 05 0.025 EU V (2008) 0.02 PM Emissions (g/kW‐hr) 0.015 EPA 07 EPA 10 0.01 JP 09 EU VI ‐90% (2014) 0.005 JP 16 0 0 0.5 1 1.5 2 2.5 NOx Emissions (g/kW‐hr) Focus from NOx control at speed to NOx control at cold start – requires new family of technol
Slide 57: Potential Future Systems Design
Potential Future Systems Design Next generation of catalyst technologies NOx Feed DOC dCSCTM JM’s diesel Cold Start Concept 250 100 (dCSCTM) stores NOx at very low Temperature (C) 200 80 NOx (ppm) 150 Extensive NOx 60 temperature, before the 100 Storage 40 downstream SCRF®/SCR system is 50 20 hot en
Slide 58: Ongoing Catalyst System Development Opportunities
Ongoing Catalyst System Development Opportunities Systems for enhanced Lower Lower N2O NOx reduction temperatures (potent GHG) Better fuel efficiency / The drive for improved fuel Catalyst systems which lower CO2 typically leads to efficiency / reduced CO2 generate lower N2O levels increased engine‐
Slide 59: A $1.75bn Market in 2015, Growing to Over $4bn by 2025
A $1.75bn Market in 2015, Growing to Over $4bn by 2025 sales ex pms $m 5,000 • Significant growth in China 10% CAGR 2015‐2025 driven by EU VI equivalent 4,000 implementation 3,000 • Europe remains strong contributor 2,000 1,000 • Regulatory tightening in India and South America 0 adds further growth
Slide 60: Summary
Summary Regulations continue to tighten Regulations drive technology opportunities in the light and heavy duty areas R&D and applications expertise leveraged Criteria pollutants plus fuel economy / CO2 to maintain strong position Strong customer relationships ECT well placed to drive and regulatory
Slide 61: Q&A
Q&A UME Johnson Matthey
Slide 62: Creating Value from Market Opportunities in Battery Technologies
Creating Value from Market Opportunities in Battery Technologies Martin Green Director, Battery Technologies
Slide 63: Overview
Overview Update Explain Detail Highlight on JM’s Battery the market the complexity of the How JM is well placed Technologies business opportunities for high battery materials to capture value as a and its position as a performance battery landscape, current battery technologies credible supplier to
Slide 64: Battery Technologies
Battery Technologies Business vision Vision to be a leading supplier of battery technologies to the LiB sector • Functional materials • Automotive focus Start with M&A to build initial position as a credible supplier • Internal R&D and further technology acquisitions to build the business October 20
Slide 65: JM Battery Technologies
JM Battery Technologies Current status Candiac CA Dundee, UK Changzhou CH Global business established Manufacturing Auto systems Manufacturing • Customer relationships and sales • Installed materials capacity ~5,000 tonnes p.a. Solid automotive position • Materials supplier to 15 automotive platform
Slide 66: JM Position in Automotive Value Chain
JM Position in Automotive Value Chain Linking chemistry and applications Strong relationships across the value chain OEM • OEMs • Cell developers Proven, long term supplier to System Exhaust Integrator Manufacturer the sector • 8 years in series supply for battery materials • JM reputation in automo
Slide 67: Automotive Battery Materials Sector Growing Strongly
Automotive Battery Materials Sector Growing Strongly Cathode Materials Largest materials market today is Market size (MWh) still the electronics sector 300,000 • Mature 250,000 xEV sales now substantial and 200,000 growing strongly 22% 150,000 CAGR • Automotive • Bus / truck 100,000 50,000 13% CAGR
Slide 68: Materials Landscape Highly Complex
Materials Landscape Highly Complex LCO LMO NMC NCA LFP Lithium cobalt oxide Lithium manganese oxide Lithium Ni Mn Co oxide Lithium Ni Co Al oxide Lithium iron phosphate Chevy BMW Tesla Volvo None Volt i3 Model S Bus Nissan BYD Leaf Qin Legacy Energy Power NMC 1,1,1 NCA 80% Ni LFP Base Composition NM
Slide 69: No Single Material Meets All Requirements
No Single Material Meets All Requirements • Different applications demand different Range properties 100 80 • Match Range material type to performance 60 requirements Power application Cycle life Target cost 40 • Cycle life Optimise material for specific application 20 Safety • JM current su
Slide 70: Current Material Landscape
Current Material Landscape 12v Starter Micro HEV HEV PHEV BEV medium BEV long Delivery van E‐bus LFP NMC NCA LMO Major Minor 70
Slide 71: Micro / Mild Hybrids
Micro / Mild Hybrids Moving to the mainstream • Multiple options for a conventional powertrain Fuel economy gain and CO2 reduction • Driven by CO2 / mpg Mild HEV regulations Coasting 48V Stop‐Start • Cost effective Coasting 12V Stop‐Start • Rapid growth expected in EU 12V Stop‐Start Stop‐Start Stop‐
Slide 72: EV Bus / Truck
EV Bus / Truck Meeting the challenge of clean cities • Substantial and growing market Market Size (000s vehicles) • Most activity in China 800 • Domestic and export market 700 • Safety is critical 600 500 • High quality LFP is required 400 • JM well placed today with major 300 bus producers 200 100
Slide 73: BEV/PHEV
BEV/PHEV Rapid growth will continue • Wide range of materials used currently Global Automotive BEV/PHEV • LMO, NMC, NCA, LFP Market size (MWh) 140,000 • Substantial gap between performance 120,000 and OEM requirements 100,000 • JM participates in China (LFP) 80,000 60,000 • Major growth opportunity,
Slide 74: Adding Value Through Technology
Adding Value Through Technology Meeting market needs • Performance improvements from An OEM Perspective • Materials Specific power @ systems level / Wkg‐1 1,500 • Cell design HEV system PHEV system • System engineering 1,200 • Collaboration across the value chain required to deliver these 900 improv
Slide 75: Battery Technologies – Key Takeaways
Battery Technologies – Key Takeaways £ Credible Player Strong Market Focus Positive Contribution £150m sales 2015/16 Automotive and other high Profitable today, 15 automotive platforms performance sectors increased R&D Good Foundation Broadening Excellent Prospects for Growth Technology Base On trac
Slide 76: Science and Technology Delivering Sustainable Solutions to Customers
Science and Technology Delivering Sustainable Solutions to Customers Alan E Nelson, Ph.D., P.Eng. Chief Technology Officer
Slide 77: Innovation Ecosystem
Innovation Ecosystem Innovation translating to revenue Invention Open Innovation What Customers Want Strategic Internal Marketing What What Can R&D Customers Technology Will Pay For Deliver Economic £ External Viability Partnerships 77
Slide 78: Science and Technology Integration
Science and Technology Integration Technical capabilities and applications expertise Emission Control Process Precious Metal Fine New Technologies Technologies Products Chemicals Businesses Chemicals Automotive Chemicals Life Sciences Automotive Automotive Life Sciences Oil and Gas Chemicals Life Sc
Slide 79: R&D Innovation Portfolio Management
R&D Innovation Portfolio Management Sustained value capture and growth Distribution of Research and NPV portfolio valuation to quantify Development Expenditure £ return on R&D investment 17% Innovation margin to ensure new products capture value and growth 5% 42% R&D Gross Annual Expenditure 10% Pat
Slide 80: Opportunity Landscape in Automotive Powertrain
Opportunity Landscape in Automotive Powertrain Leading solutions provider to the automotive industry Advanced Materials Alternative and Low Carbon Fuels Industry leading emission control catalysts, Increased production and lighter and stronger materials utilisation of low carbon and to reduce vehicl
Slide 81: Emissions Control Systems
Emissions Control Systems Successful technology development with customers Gasoline Pgm Demand (Europe) • Sustained investment in emission control technology to develop customer focused solutions • Unique combined strengths in science and application development to drive innovation • Continued optim
Slide 82: Lithium-Ion Battery Materials
Lithium‐Ion Battery Materials Innovating the optimum cathode material NMC Cathode Chemistry ‐ Power Density • Cathode LFP: LiFePO4 + Energy Density • Anode + High Power Density ‐ Safety • Electrolyte + Excellent Safety • Separator + Long Cycle Life • Energy storage applications require unique cathod
Slide 83: Fuel Cell Materials and Systems
Fuel Cell Materials and Systems Harnessing the power of clean energy Image credit: Linde Image credit: EERE Image credit: IIP Photo Archive / Flickr Hydrogen Hydrogen Transmission Hydrogen Production Storage and Distribution Fuel Cells • Hydrogen is an energy • Low volumetric energy • Lack of curren
Slide 84: Alternative and Low Carbon Fuels
Alternative and Low Carbon Fuels Innovation beyond the powertrain system Catacel highly energy efficient catalyst Ultra low emissions methanol catalyst solutions for clean fuel production and process technology • Catacel’s SSR® (Stackable Structural Reactor) • Industry leading reforming technology c
Slide 85: Advanced Materials and Lightweighting
Advanced Materials and Lightweighting Long term research investment for growth Precursors for 3‐D printing and additive Renewable materials for the production layer manufacturing (ALM) of engineering plastics • Unique expertise in metals and powder metallurgy • Key external partnerships with Rennovi
Slide 86: How We Deliver Innovation
How We Deliver Innovation Industry leadership in science and technology Customer focus Science and Technology Customer focused new product design Industry leading expertise in materials science and and development engineering Strategic relationships with customers Innovate where material science and
Slide 87: Q&A
Q&A LIMES) Johnson Matthey
Slide 88: Closing Remarks
Closing Remarks Robert MacLeod Chief Executive
Slide 89: Robust Strategy and Strong Market Drivers
Robust Strategy and Strong Market Drivers Population Health & Growth Nutrition Urbanisation Ageing Increasing Population Customer Create Wealth focus value Collaborate Environmental Growth from to leverage The best of Natural Factors new business big and small our expertise Resource Climate Change I
Slide 90: Imperative for Improved Air Quality Supports Growth
Imperative for Improved Air Quality Supports Growth Legislation continues to tighten at pace • Regulated pollutants and CO2 in focus • ICE remains main powertrain technology for next decade; increased hybridisation • Increased opportunity for JM from diversified powertrain ECT Battery Technologies I
Slide 91: The JM Advantage in Powertrain Solutions
The JM Advantage in Powertrain Solutions • Strong expertise in translating metal chemistry Chemistry & solutions into auto Applications applications • Ability to scale up • Deep relationships • Efficient manufacturing Operational Customer with OEMs • Well positioned in Efficiency Focus • Strong repu
Slide 92: In Summary…
In Summary… JM has robust strategy and Evolution of the powertrain strong market drivers requires high technology solutions Clear technology roadmap Good growth from Battery JM remains well placed supports strong growth for Technologies in medium for sustained long term ECT over next decade term; in
Slide 93: JME)
JME) Johnson Matthey
Slide 94: JM Executive Board
JM Executive Board Robert MacLeod Den Jones Chief Executive Group Finance Director John Walker Larry Pentz Executive Director Executive Director Emission Control Technologies 94
Slide 95: Presentation Team
Presentation Team Nick Garner John Walker Robert MacLeod Division Director Executive Director Chief Executive New Businesses and Emission Control Corporate Development Technologies Dr Chris Morgan Dr Andy Walker European Technology Divisional Technology Martin Green Dr Alan Nelson Director Director
Slide 96: Glossary
Glossary ACT Atmosphere Control Technologies EV Electric vehicle ALM Application lifecycle management FC Fine Chemicals ASC Ammonia slip catalysts FCEV Fuel cell electric vehicle bbl Oil barrel, a unit of volume GDI Gasoline direct injection BEV Battery electric vehicle GHG Greenhouse gas CAGR Compo
Slide 97: Glossary
Glossary LiFePO4 Lithium iron phosphate (chemical formula) p.a. Per annum LiMn2O4 Lithium manganese oxide (chemical formula) Pgm Platinum group metal LMO Lithium manganese oxide PHEV Plug in hybrid electric vehicle LPG Liquefied petroleum gas PM Particulate matter LiB Lithium‐ion battery PMP Preciou
Slide 98: JME)
JME) Johnson Matthey