Johnson Matthey Plc · LSE:JMAT
Johnson Matthey — Investor Day (January 2015)
109 slides from Johnson Matthey's investor day presentation, Jan 29, 2015
Slide 1: Johnson Matthey Strategy Update – Building Our 3rd Century
Presentation to Analysts / Investors Johnson Matthey Strategy Update – Building Our 3rd Century 29th January 2015
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: Johnson Matthey Strategy Update: Building Our 3rd Century
Johnson Matthey Strategy Update Building Our 3rd Century Robert MacLeod Chief Executive
Slide 4: Programme
Programme Introduction and Strategy Update 10.30 Q&A after this session Robert MacLeod 11.20 Fine Chemicals John Fowler Precious Metal Products 11.40 Q&A after this session Alan Myers 12.15 Lunch 13.00 New Businesses Nick Garner 13.25 Process Technologies Geoff Otterman Emission Control Technologies
Slide 5: Purpose of the Day
Purpose of the Day Update Outline Explain Highlight on the group’s long key developments Divisional strategies how Johnson Matthey term strategy and since January 2011 and the fundamental is positioned for priorities role of technology in superior long term growth creating value 5
Slide 6: 2011 – Our Strategy to Deliver Growth in Value
2011 – Our Strategy to Deliver Growth in Value Pt Continued core focus on Maintain differentiation Strong position in pgms Primary focus is leading edge catalysis through technology remains an intrinsic organic growth part of group Developing JM attributes Manufacturing People and culture new opport
Slide 7: JM has Delivered Strong, Consistent Performance
JM has Delivered Strong, Consistent Performance What we said in 2011 What we’ve done Comment Growth at double digit rates with ROIC >20% 12.8% CAGR in uEPS, ROIC on track uEPS Some growth in EBITDA margins (ex substrates) Benefiting from manufacturing excellence EBITDA and despite change in Anglo co
Slide 8: Our 3C Strategy
UME Johnson Matthey HOW DO WE GET THERE? Our 3C Strategy
Slide 9: JM Today – A Global Leader in Sustainable Technologies
JM Today – A Global Leader in Sustainable Technologies Our Vision is to build our 3rd Century through value adding sustainable technologies 9
Slide 10: Our Purpose – What We Do
Our Purpose – What We Do As a business we always aim to deliver what we promise. We work together, applying our expertise in advanced materials and technology to innovate and improve solutions that: are valued by optimise the use of and enhance the quality of our customers natural resources life for
Slide 11: Sustainability Drivers Provide Superior Growth for JM
Sustainability Drivers Provide Superior Growth for JM Global Drivers Short to medium term Longer term Population Growth JM well positioned in emerging markets Growth from South America Urbanisation • China represents 11% of sales and other emerging markets Increasing Wealth Population Growth Health
Slide 12: Our Strategy for Superior Growth
Our Strategy for Superior Growth 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 12
Slide 13: Invest in Technology – How We Differentiate
Invest in Technology – How We Differentiate Pgm and • Strong set of technology skills Modelling base metal chemistry • Complex, ‘difficult to do’ • Creates high barriers to entry Character Surface Synthetic science • Generates continuous stream ‐isation Chemistry of new products ADVANCED MATERIAL Bu
Slide 14: Differentiation Through Technology
Differentiation Through Technology JM’s skill lies in understanding both the chemistry and the applications Chemistry… …and its applicationModelling Pgm and base metal chemistry Surface Character Specialist Synthetic science Coatings ‐isation technologyChemistry expertise Pgm and Surface chemistry s
Slide 15: Differentiation Through Technology ‐ Complexity Matters
Differentiation Through Technology ‐ Complexity Matters Operating at the frontiers of science enables lower risk, higher margin business models We sell Tier 2 products Technical, reputational Complex products that Maximise value of in B2B environments and legislative barriers are difficult to emulat
Slide 16: Build on Our Core Strengths
Build on Our Core Strengths We will actively manage our portfolio to maintain focus • Stay focused on markets which command high margins Core business • Exit areas that cease to benefit from our cutting edge expertise: ‒ Gold and Silver refining • …or that do not fit with our business model • Build
Slide 17: Positioning for Growth
Positioning for Growth Improve efficiencies, maintain margins, grow sales Health and Safety Manufacturing Sustainability Best of Big and Small Internal programmes to Excellence Sweet spot for JM Investment in core engage employees Drive for world class Resource efficiencies functions / systems Aspir
Slide 18: Medium Term Targets and Priorities
Medium Term Targets and Priorities Targets Priorities High single digit CAGR • Continued development of service and products to ECT in sales maintain market position • Drive operational efficiencies Mid to high single digit CAGR • Broaden offering PT in sales • Access strong share of opportunity fro
Slide 19: Investment and Capital Efficiency
Investment and Capital Efficiency Investment Capital efficiency remains embedded • Average capital expenditure around 1.6 • ROIC target >20% to 1.8 times depreciation • Net debt (incl. pension) / EBITDA • Capital expenditure shifts from ECT to between 1.5 to 2.0 times other divisions • Investment in
Slide 20: Key Takeaways
Key Takeaways Robust strategy in place Focus on sustainable Build and develop Strong market drivers technologies new product offerings Using our expertise in advanced R&D at 5% of sales p.a. to materials and technology maintain competitive advantage £ Invest in new businesses Operational Excellence
Slide 21: IME)
IME) Johnson Matthey
Slide 22: Fine Chemicals: Focus on Pharma for Future Growth
Fine Chemicals Focus on Pharma for Future Growth John Fowler Division Director, Fine Chemicals
Slide 23: Fine Chemicals
Fine Chemicals Global supplier of APIs and other speciality chemical products and services for the pharmaceutical market Fine Chemicals Today Sales by Business (2013/14 £322m) • Leading positions for APIs in specific therapeutic areas Research 25% Chemicals • Provider of development and manufacturin
Slide 24: Fine Chemicals – Business Background
Fine Chemicals – Business Background Supply of API Customers Competitors Sales Split by Customer Type • Market size ~$1.5bn – niche • Teva • Mallinckrodt segment of ‘small’ • Actavis • Francopia molecules API market • Mundipharma • #1 or #2 in majority of our 30% markets including APIs for ADHD and
Slide 25: Global Drivers Impacting Fine Chemicals
Global Drivers Impacting Fine Chemicals Global Drivers Key Trends Fine Chemicals Growth Areas Population Growth Longer life expectancies Continued double digit growth in generics Urbanisation Opportunity to capture more value and expand into Increasing new geographies Wealth Health & Economic develo
Slide 26: Fine Chemicals – A Pharma Focused Strategy
Fine Chemicals – A Pharma Focused Strategy Growth ahead of the market Increased penetration of niche Accelerate move up value chain generic APIs market to formulated drug products M&A to accelerate growth in Expand custom services Increased technology product / services offering capabilities in Euro
Slide 27: Sustained Differentiation Through Technology
Sustained Differentiation Through Technology Chemistry… …and its …with Customer Focus Application • Innovative business models with flexible value capture with balanced risk and reward • IP generation and licensing • Expertise in complex • Access to most complex • Enabling the pharma industry to org
Slide 28: Vertical Integration – Moving Up the Value Chain
Vertical Integration – Moving Up the Value Chain Key Divisional Growth Initiative • Continue to expand beyond supply of controlled APIs Example: Dofetilide • Partner on drug product formulation, manufacturing • Generic to Tikosyn®, antiarrhythmic agent, ~$150m US brand and marketing • Developed API
Slide 29: Pharma Market Alignment Enhances Customer Focus and Growth
Pharma Market Alignment Enhances Customer Focus and Growth Johnson Matthey – Pharma Solutions Global Development Technology and Custom Services Generics and Manufacturing Capability Network West Deptford, US Product / Process Development Controlled Substance APIs Catalyst and Chiral Technology Consh
Slide 30: Pharma Value Chain
Strategic GrowthProduct Pharmaceutical throughLifecycle ExpandedandProduct‐Service Value Chain Offer Pharmaceutical Product Lifecycle and Value Chain Across CurrentPharma Participation Product Lifecycle and up the Value chain Formulated Niche Generics EU Products Niche Generics US (ANDA) Pharma Valu
Slide 31: Fine Chemicals – Key Takeaways
Fine Chemicals – Key Takeaways Opportunities for double digit growth longer term Strong market drivers and Leading API positions Growth from geographic large potential opportunity in existing markets expansion, migration across life cycle and up the value chain Strategic focus on complex M&A could a
Slide 32: Precious Metal Products: Investing for Growth
Precious Metal Products Investing for Growth Alan Myers Division Director, Precious Metal Products
Slide 33: Precious Metal Products (PMP)
Precious Metal Products (PMP) High performance products for a range of industries; world leading pgm recycler Businesses Precious Metals PMP Today (Sales 2013/14 Chemical Management Products 10% 12% • Leading positions in key markets £430m) Advanced Pgm • Some more mature businesses Glass 20% 16% Re
Slide 34: Precious Metal Products – Drivers
Precious Metal Products – Drivers Continued strong fundamentals for pgms Global Drivers Key Trends Growth Drivers Population Growth Continued demand for end of life autocatalyst Urbanisation Economic development recycling and pgm salts Increasing Wealth Health & Expanding use of minimally invasive s
Slide 35: Precious Metal Products Strategy
Precious Metal Products Strategy Pt Pd Develop new products with Leverage core strengths Ensure pgm supply to more complex chemicals in precious metals and JM and customers and lower pgm content materials chemistry Drive continued efficiencies Bolt on acquisitions to Drive growth in China in pgm ref
Slide 36: Differentiation Through Technology
Differentiation Through Technology Chemistry… …and its Example: Ignition Alloys Application • Used in spark plugs – market growth ~6% p.a. • Expertise in chemistry of minor pgms and hot metal working Expertise in precious metal chemistry and its • Next generation alloys provide applications higher p
Slide 37: Pgm Refining
Pgm Refining Strategic service and growing demand Market / business environment Future Growth Opportunities • JM is #1 secondary refiner of pgm globally • End of life autocatalysts ‒ Sales of £67m in 2013/14 • Enhancements to refining process • Long term partnerships with customers and • Plans to co
Slide 38: Noble Metals ‐ Industrial
Noble Metals ‐ Industrial Steady performer, opportunities to accelerate growth Market Future Growth Opportunities • Wide range of end markets • Leverage technology and manufacturing expertise • Key product areas ‒ Thrifted and lower cost alloys ‒ Nitric acid gauzes (#1 position) ‒ More efficient pro
Slide 39: Noble Metals – Medical Components
Noble Metals – Medical Components Strong position in a growing market Market Future Growth Opportunities • Pgm medical components • Geographic expansion into Europe and Asia • Key products areas: ‒ Add dedicated development cells ‒ Cardiovascular – electrophysiology • Bolt‐on M&A ‒ Other cardiovascu
Slide 40: Advanced Glass Technologies
Advanced Glass Technologies Opportunities for new products and new markets Market Future Growth Opportunities • Functional coatings for automotive • Opportunities for growth in China glass market • Apply current expertise to expand portfolio in ‒ Black obscuration enamels (market ~£100m) technical g
Slide 41: Precious Metal Products – Key Takeaways
Precious Metal Products – Key Takeaways Investing for future growth Leverage core chemistry Accelerate growth through Drive further efficiencies strengths and leading market market expansion, new in pgm refining positions products and bolt‐on acquisitions £ Investment in pgm Maintain strong ROIC whi
Slide 42: IME)
IME) Johnson Matthey
Slide 43: New Businesses: Generating the Next Growth Engines
New Businesses Generating the Next Growth Engines Nick Garner Division Director, New Businesses and Corporate Development
Slide 44: New Businesses
New Businesses Creating growth engines of the future New Businesses Strategy: • Create new divisions with sales >£200m in ten years • Look at areas adjacent to main operating business focus • Build on core competences of JM but will involve development / acquisition of some key elements Customer Cre
Slide 45: Developing a Portfolio of Opportunities
Developing a Portfolio of Opportunities Ongoing investment of £5‐7m p.a. in concept stage businesses Concept stage • Rigorous investment appraisal Indoor Air Cabin Air Low Carbon Atmosphere Control Purification Purification Vehicles Technology • Assessed against Commercialisation stage key milestone
Slide 46: Battery Technologies – The Opportunity
Population Environmental Growth Natural Factors Urbanisation Resource Climate Increasing Constraints Change Wealth Regulation Battery Technologies – The Opportunity • Broad consensus that powertrain will Electric Vehicle Battery Requirements (2) diversify – volumes and timing uncertain 2,000 HEV PHE
Slide 47: Battery Technologies – The Opportunity
Battery Technologies – The Opportunity • Li‐ion materials market will be dominated by five major classes of Cathode Material Volumes, by Chemistry chemistries over next ten years 350 • Market for cathode materials to grow strongly to 2025 • Next generation enhanced materials under development 300 25
Slide 48: Battery Technologies – Why JM?
Battery Technologies – Why JM? Strong fit with JM technology competences Chemistry Applications • Focus on advanced, functional battery • Expertise in high performance systems materials (initially Li‐ion) integration Specialist Coatings • Draw on JM strengths in functional • Understanding of current
Slide 49: Battery Technologies – Strategy
Battery Technologies – Strategy Building a competitive position… Market focused Feb / Mar Oct 2012 Oct 2014 research 2015 and R&D JM JM Axeon A123 Clariant Battery (£41m) Manufacturing Assets Materials Business • System integration (£16m) (£49m) and applications • LFP manufacturing • LFP manufacturi
Slide 50: Battery Technologies – Strategy
Battery Technologies – Strategy Building a competitive position… with a broad product portfolio Battery Technologies today • Credible supplier of cathode materials to cell industry • Developing broader portfolio of cathode materials ‒ In‐license to accelerate in‐house development • Continued investm
Slide 51: Fuel Cells
Population Environmental Growth Natural Factors Urbanisation Resource Climate Increasing Constraints Change Wealth Regulation Fuel Cells Key element of vehicle powertrains Opportunity Why JM? Strategy • Automotive market has started • Strong technology, good • Convert existing OEM relationships ‒ CA
Slide 52: Water Purification
Population Environmental Growth Natural Factors Urbanisation Resource Climate Increasing Constraints Change Wealth Regulation Water Purification Opportunity Why JM? Strategy • Strong legislative drivers • Good fit with JM’s chemistry and • Provide high technology, high ‒ Reduce contaminant levels ap
Slide 53: Atmosphere Control Technologies (ACT)
Population Growth Health & Natural Nutrition Urbanisation Resource Constraints Ageing Increasing Population Wealth Atmosphere Control Technologies (ACT) Opportunity Why JM? Strategy • Strong global drivers • Complex ecosystem control • Develop atmosphere control ‒ Efforts to minimise food waste and
Slide 54: New Businesses – Roadmap to 2025
New Businesses – Roadmap to 2025 TODAY YEAR YEAR YEAR 3 5 10 • Sales ~£80m • Division breakeven • £30m OP • >£100m OP – no • Operating loss • Battery Technologies • Total investment significant further ~£20m profitable £250m investment • £150m investment in • Fuel Cells breakeven • ROIC > cost of ca
Slide 55: New Businesses – Key Takeaways
New Businesses – Key Takeaways On track with long term ambitions £ Investing for long term Target £200m sales M&A key to delivery To sustain superior p.a. businesses Rigorous financial criteria growth for the group Capable of meeting group returns £ £ Ongoing investment Expect breakeven Target >£100
Slide 56: Process Technologies: Strategy for Growth
Process Technologies Strategy for Growth Geoff Otterman Division Director, Process Technologies
Slide 57: Process Technologies (PT)
Process Technologies (PT) Manufactures speciality catalysts, licenses technology and provides services to the chemicals and oil and gas markets PT Today Businesses Diagnostic Services (2013/14 12% • Leading positions in targeted markets £565m) Gas Processing 6% 29% Syngas • Strong growth opportuniti
Slide 58: Process Technologies ‐ Drivers
Process Technologies ‐ Drivers Global Drivers Key Trends Growth Drivers Population Growth Economic development Shale gas Urbanisation New projects and growth based upon US shale gas and Increasing syngas based chemistry Wealth Energy security Greater global demand for fuels Natural Especially cleane
Slide 59: Shale Gas
Shale Gas Market Dynamics Key Opportunities • Low cost gas underpins new gas to chemicals • Strong growth from licensing and catalysts investments ‒ Pipeline of new methanol and ammonia plants • Prospects for increased new plant activity • New GTL capacity in longer term ‒ Progress on new ammonia pl
Slide 60: Global Demand for Fuels
Global Demand for Fuels Market Dynamics Key Opportunities • Clean fuels and trend to heavier sourer crudes • Expect market fundamentals and business growth to underpins long term growth remain strong • Growing demand for additives • Robust growth in key JM markets • FCC capacity growth in Asia (fuel
Slide 61: Coal‐based Chemicals
Coal‐based Chemicals Market Dynamics Key Opportunities • Energy demand / security drivers in China to meet • Investment in new capacity for China requiring catalysts needs of growing population and processes • Growing demand for key petrochemicals in China • JM portfolio of coal, gas and oil based t
Slide 62: Asset Performance and Integrity
Asset Performance and Integrity Market Dynamics Key Opportunities • Capex pressures require • Growth from innovative new products and services ‒ Greater value from more efficient processes and better across PT’s Chemicals and Oil and Gas businesses catalyst technology ‒ High efficiency catalysts and
Slide 63: Process Technologies Strategy
Process Technologies Strategy Progress since January 2014 Maintain leading positions in catalysts and • Leveraging catalysts / process technology edge in existing technologies process technologies for chemicals markets • Commercialisation of new technologies Develop larger presence in oil and gas •
Slide 64: Differentiation Through Technology
Differentiation Through Technology Unique combination of catalysts, know how and process technology Chemistry… …and its Example: Vinyl Chloride Monomer Application (VCM) in China • New gold catalyst and process technology package • Research done at JMTC Catalysis and process Deep understanding of •
Slide 65: Process Technologies – Key Takeaways
Process Technologies – Key Takeaways Well placed for long term growth £ Fundamental drivers Expect short term slow Uniquely placed to create value still firmly in place down in some markets through integrating catalyst and process technology £ Continue to invest to Medium term mid to high broaden po
Slide 66: Emission Control Technologies: Motoring On and Driving Forward
Emission Control Technologies Motoring On and Driving Forward John Walker Executive Director, Emission Control Technologies
Slide 67: Emission Control Technologies (ECT)
Emission Control Technologies (ECT) Global leader in catalysts and technologies for light and heavy duty vehicles ECT Today • Performing strongly on the back of long term Sales by 3% 4% investment in R&D and facilities Business Heavy Duty 11% Light Duty (2013/14 39% 10% 61% • Benefiting from: £1,645
Slide 68: Global Drivers Support Growth in ECT
Global Drivers Support Growth in ECT Global Drivers Key Trends Growth Drivers Population Growth Tightening legislation around the world Urbanisation Public health More stringent testing regimes Increasing Increasing requirement for higher performance catalyst technologies Wealth Environmental Contin
Slide 69: Emission Control Technologies’ Strategy
Emission Control Technologies’ Strategy Invest in our people, products Customer focus and technology • A deep understanding of our markets and customers • R&D investment to maintain differentiation through technology • High performance catalysts matched to local needs • Materials science and manufac
Slide 70: Technology – Accelerating Innovation, Maintaining Edge
Technology – Accelerating Innovation, Maintaining Edge Chemistry… …and its Application • Full suite of products • Global capabilities Add picture for global market to support customer requirements development and testing • Increasing portfolio of tailored technology types • Trend towards multifuncti
Slide 71: Light Duty – Key Trends
Light Duty – Key Trends Market Trends Legislative Trends • Strong volume growth in Asia, especially China Europe • European market below 2007 levels – latent demand • Euro 6b for diesel now coming in – adds ~20% in • Engine size – some reduction but very slow pace catalyst sales value for JM • Power
Slide 72: Diesel – Key to Meeting CO2 Targets
Diesel – Key to Meeting CO2 Targets Diesel essential to the mix to meet tighter Diesel continues to get cleaner CO2 targets • Real world driving standards (anticipated 2017) – • Penalties for OEMs that miss fleet average targets expect to have a major impact on emissions • UK today – for cars meetin
Slide 73: Strong Sales Growth Continues in Light Duty
Strong Sales Growth Continues in Light Duty Update since January 2013 Sales ex pms $m • Market size forecast unchanged 9,000 ‒ $6bn by 2015 and $8bn by 2020 8,000 CAGR 5.4% • European diesel remains the main value driver 7,000 • Asian car sales growth still adds further 6,000 opportunity 5,000 • Hig
Slide 74: Heavy Duty Diesel – Key Trends
Heavy Duty Diesel – Key Trends Market Trends Legislative Trends • Current strong growth in Class 8 US truck sales Europe expected to continue through 2015 • Euro VI now implemented • European truck production forecast to improve • Advanced discussions re. US GHG type legislation ‒ Pent up demand fol
Slide 75: HDD – A $1.8bn Market by 2015, Growing to $3.0bn by 2020
HDD – A $1.8bn Market by 2015, Growing to $3.0bn by 2020 Update since January 2013 Sales ex pms $m • 2015 market size estimate revised due to 4,000 timing of non‐road market CAGR 2012 – 2020 3,500 ‒ Stage V in Europe adds value from 2019 15.7% 3,000 • Continued growth in China as 2,500 legislation t
Slide 76: Emission Control Technologies – Key Takeaways
Emission Control Technologies – Key Takeaways £ Growth in all Legislative tightening Create value from JM continues to invest our markets continues to catalysts and ahead of growth deliver value manufacturing opportunities. technology Strong positions in High single digit sales light duty and HDD gr
Slide 77: IME)
IME) Johnson Matthey
Slide 78: Johnson Matthey R&D
Johnson Matthey R&D Dr Liz Rowsell R&D Director, Johnson Matthey Technology Centre
Slide 79: Differentiation Through Technology
Differentiation Through Technology Chemistry… …and its application Specialist Coatings technology expertise Pgm and Surface chemistry science ADVANCED Integration MATERIAL into DESIGN apps Character‐ Manufacture Testing Modelling isation at scale 79
Slide 80: R&D to Deliver Future Growth
R&D to Deliver Future Growth Johnson Matthey Technology Centres (JMTC) Divisions Time to Long Mid Short market External Projects / Technology Business University Core Science Development Funded R&D Collaboration in Divisions • Access to world class • Develops expertise in • Aligned with • Ongoing pr
Slide 81: R&D Statistics
R&D Statistics • Continued investment – maintain at Distribution of Research and ~5% sales Development Expenditure Group R&D spend 2013/14 £152.3m • 1,400 employees – 21% in JMTC • JMTC sponsors work at over 30 universities in 7% 8% 16% 9 countries • A diverse community of nationalities, 6% discipli
Slide 82: A Growing Network of Technology Centres
A Growing Network of Technology Centres Savannah Billingham Sonning Common Pretoria Singapore • 4 employees • ~50 employees • ~250 employees • 6 employees • 7 employees ‐ 100 • Microporous materials • Process catalysis, • Catalysis and materials, • Computer modelling by 2020 engineering and scale up
Slide 83: New Ventures
New Ventures JMTC Singapore JM / Oxford University / Diamond Light Source • Vibrant international research community Collaboration ‒ Academic and applied • Creation of a state of the art materials ‒ Strong in materials R&D characterisation facility – Harwell, UK ‒ Diverse / collaborative environment
Slide 84: Optimising SCR Catalysts
Optimising SCR Catalysts Copper (Cu) zeolite NOx control catalysts for diesel engines Zeolites – microporous crystalline solids with well defined pore architectures NH3 SCR: NOx conversion at 250°C 100 90 80 % NOx conversion 70 60 50 40 30 20 10 0 Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample
Slide 85: Where is the Cu?
Where is the Cu? • Cu zeolites are examples of single site catalyst materials ‒ Isolated Cu atoms represent the reaction site for the reaction of NOx and NH3 ‒ Locating the Cu within the structure is key to understanding the superiority of the latest generation of catalysts Site II, IV Use of probe
Slide 86: Gold Based VCM Catalyst
Gold Based VCM Catalyst • JM developed an economically viable • Currently commissioning catalyst gold catalyst production plant in Shanghai ‒ Direct drop in for current mercury system • Catalyst designed to be stable in highly acidic environments • Superior yield and lifetime 86
Slide 87: The Application of Gold Chemistry
The Application of Gold Chemistry JM has long history of gold co‐ordination chemistry in catalysis, inks, coatings and bio‐materials Element Mapping EPMA – Eggshell of Au complex on carbon • Benign process was invented to coat surface of carbon support with stable gold complex at scale • Surface loc
Slide 88: Materials Characterisation
Materials Characterisation • JMTC Group Analytical provides world class characterisation of active materials ‒ Provides insights into material properties ‒ Combination of techniques ‒ Enables improved performance and modification to prepare next generation materials XRD ‐ Crystallinity SEM ‐ Morphol
Slide 89: Designing Improved Battery Materials
Designing Improved Battery Materials Design of functional materials by careful control of synthesis and processes Particle Size Coatings Dispersion • Highly crystalline nano • Coating lithium • Catalyst synthesis lithium titanate anode manganese oxide spinel expertise material prepared by with silic
Slide 90: Beyond Li‐ion Chemistry
Beyond Li‐ion Chemistry • Li‐air and Li‐S batteries have potential to deliver greater energy densities • Will rely on improved materials and chemistries • External collaborations with internationally renowned academics to solve the technical challenges Lithium peroxide toroids in electrode structure
Slide 91: Role of JMTC – Right Science at Right Time
Role of JMTC – Right Science at Right Time Central expertise, Deliver medium term R&D New product development innovation and knowledge In close collaboration Supporting new business Underpins JM’s IP with divisional teams development activities Core science programmes Collaboration with World class
Slide 92: Tour of JMTC Sonning
Tour of JMTC Sonning Refining Research – Dr Emma Schofield ECT – Dr Dave Thompsett Battery Materials – Dr Sarah Ball and Dr James Cookson Water Purification – Dr Alistair Kean and Dr Jonathan Sharman New Applications – Dr Alison Wagland Biomass Processing – Dr Mike Watson 92
Slide 93: Closing Summary
Closing Summary Robert MacLeod Chief Executive
Slide 94: JM Today – A Global Leader in Sustainable Technologies
JM Today – A Global Leader in Sustainable Technologies Our Vision is to build our 3rd Century through value adding sustainable technologies 94
Slide 95: Our Strategy for Superior Growth
Our Strategy for Superior Growth 95
Slide 96: Differentiation Through Technology
Differentiation Through Technology JM’s skill lies in understanding both the chemistry and the applications Chemistry… …and its applicationModelling Pgm and base metal chemistry Surface Character Specialist Synthetic science Coatings ‐isation technologyChemistry expertise Pgm and Surface chemistry s
Slide 97: Key Takeaways
Key Takeaways Robust strategy in place Focus on sustainable Build and develop Strong market drivers technologies new product offerings Using our expertise in advanced R&D at 5% of sales p.a. to materials and technology maintain competitive advantage £ Invest in new businesses Operational Excellence
Slide 98: JME)
JME) Johnson Matthey
Slide 99: 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 99
Slide 100: Presentation Team
Presentation Team John Fowler Alan Myers Robert MacLeod Division Director Division Director Chief Executive Fine Chemicals Precious Metal Products Nick Garner John Walker Dr Liz Rowsell Division Director Geoff Otterman Executive Director R&D Director New Businesses and Division Director Emission Con
Slide 101: Other Senior Management
Other Senior Management Emission Control Process Precious Metal Technologies Technologies Products Chris Morgan Iain Martin Mark Bedford David Prest Joe Stevenson Fine Chemicals New Businesses JMTC Investor Relations Steve Barr Jack Frost Peter Bishop Katharine Burrow Paul Evans Martin Green Mike Wa
Slide 102: Glossary
Glossary ACT Atmosphere Control Technologies FC Fine Chemicals ADHD Attention deficit and hyperactivity disorder FCC Fluid catalytic cracking ANDA Abbreviated New Drug Application FCEV Fuel cell electric vehicle API Active pharmaceutical ingredient GHG Greenhouse gas API gravity Measure of how heavy
Slide 103: Glossary
Glossary MEA Membrane electrode assembly R&D Research and development MEG Mono ethylene glycol ROIC Return on invested capital mmBtu Million British Thermal Units ROW Rest of the world mtpa Million tonnes per annum SEM Scanning electron microscopy NAFTA North American Free Trade Agreement SNG Substi
Slide 104: Glossary – Fine Chemicals
Glossary – Fine Chemicals 180 Day Exclusivity The period during which the first applicant to successfully file for a ANDA under Paragraph IV of the Wax‐Hatchman Act is granted marketing exclusivity of a generic product. ADHD – Attention Deficit Hyperactivity Disorder A group of behavioural symptoms
Slide 105: Glossary – Fine Chemicals
Glossary – Fine Chemicals Chirality / Chiral Technologies The property of an organic chemical where it is different from its mirror image and cannot be superimposed upon it. This property is found throughout nature and is a critical aspect of pharmaceutical development. Derived from the Greek expres
Slide 106: Glossary – Fine Chemicals
Glossary – Fine Chemicals Drug Product A finished dosage form, for example, tablet, capsule, solution, etc., that contains one or more APIs. Also known as Formulated Product. Drug Substance A substance intended to have a pharmacological activity typically for the treatment, prevention or cure of a d
Slide 107: Glossary – Fine Chemicals
Glossary – Fine Chemicals Formulated Product A finished dosage form, for example, tablet, capsule, solution, etc., that contains one or more APIs. Also known as Drug Product. Generic Drug A drug produced and marketed after a proprietary drug goes off patent. Note they must still meet the standards o
Slide 108: Glossary – Fine Chemicals
Glossary – Fine Chemicals NDA – New Drug Application Is the vehicle in the United States through which drug sponsors formally propose that the Food and Drug Administration (FDA) approve a new pharmaceutical for sale and marketing. PGM‐Based APIs Active Pharmaceutical ingredients which contain a plat
Slide 109: JME)
JME) Johnson Matthey