Johnson Matthey PLC · LSE:JMAT

Johnson Matthey — FY2002 Earnings Presentation

34 slides from Johnson Matthey's earnings presentation, Jun 6, 2002

  1. Slide 1: Presentation of Results for the year ended 31st March 2002

     Johnson Matthey Presentation of Results for the year ended 31st March 2002 6th June 2002

  2. Slide 2: Johnson Matthey

     Johnson Matthey 

  3. Slide 3: Overview

    Overview  Operating profit up 10% to £193.3 million  Strong performance from Catalysts & Chemicals  Good contribution from acquisitions in Pharmaceutical Materials  PBT up 4% at £187.2 million 

  4. Slide 4: Investment for the Future

    Investment for the Future  Capex 2.8 times depreciation – Autocatalyst – new process technology – PGM refining expansion – New pharmaceutical facility – Fuel cells – Tile facility in Spain  R&D expenditure 13% up 

  5. Slide 5: Johnson Matthey

     Johnson Matthey 

  6. Slide 6: Summary Results

    Summary Results 2002 2001 restated £m £m% Turnover 4,830 5,904 -18 Sales excluding 1,093977 +12 precious metals Operating profit* 193.3 175.0 +10 Interest (6.1) 5.3 Profit before tax* 187.2 180.3 +4 Exceptionals (23.7) 0.5 Goodwill amortisation (6.8) (0.3) EPS* 60.4p 57.2p +6 Dividend 24.6p 23.3p +6

  7. Slide 7: Operating Profit

    Operating Profit 2002 2002 at 2001 2001 exchange rates £m % £m £m % 97.6 +21 55.5 -3 25.6 -20 Catalysts 30.7 & Chemicals 94.7 +71 80.9 +17 Precious Metals (13.5) 55.9 57.4 -3 Colours (0.5) & Coatings 25.5 32.1 -21 195.4 +12 Pharmaceutical Materials 31.3 18.0 +74 Corporate (13.6) (13.3) Discontinued

  8. Slide 8: Return on Sales

    Return on Sales Excluding Precious Metals Sales excl. PM’s ROS 2002 2002 2001 2001Growth % % £m£m % 15.9 & Chemicals Catalysts 15.1 597535 +11 39.1 Metals Precious 35.5 143162 -12 10.2 & Coatings Colours 13.1 251246 +2 30.9 Pharmaceutical Materials 60.2 10130 +239 n/m Discontinued n/m 14 17.7 1,093

  9. Slide 9: Geographical Split

    Geographical Split Operating Profit 2002 2001 £193.3m £175.0m Europe Asia North America Rest of World 

  10. Slide 10: Interest

    Interest 2002 2001 £m £m Financial (2.6) 6.7 Gold & Silver leases (3.5) (1.4) (6.1) 5.3 

  11. Slide 11: Exceptional Items

    Exceptional Items 2002 £m Rationalisation of Tableware (24.0) Rationalisation of Meconic (1.3) Sale of unhedged palladium 7.2 Sale of French print business (5.5) Other (0.1) Total (23.7) 

  12. Slide 12: Taxation

    Taxation 2002 2001 £m £m Underlying tax 56.0 54.1 Tax on exceptionals (5.8) 0.1 50.2 54.2 Underlying tax rate 29.9% 30.0% 

  13. Slide 13: Return on Investment

    Return on Investment 2002 2001 £m £m Operating profit 193 175 Average assets: Equity and minorities 814 770 Cumulative goodwill w/o 46 46 Net borrowings / (cash) 10 (153) Total investment 870 663 Pre-tax ROA 22.2% 26.4% Return on invested capital 15.6% 18.5% WACC 9% 10% 

  14. Slide 14: Free Cash Flow

    Free Cash Flow 2002 2001 £m £m Operating profit 169 174 Depreciation and amortisation 55 41 Working capital / other - (58) Cash flow from operations 224 157 Interest / tax / dividends (113) (79) Capex (131) (95) Free cash flow (20) (17) 

  15. Slide 15: Net Cash Flow

    Net Cash Flow 2002 2001 £m £m Free cash flow (20) (17) Acquisitions / disposals (145) (6) Shares (bought) / issued (44) 8 Net cash flow (209)(15) Debt acquired with subs. (47)(1) Loan notes issued (41)- Finance leases (4)- Exchange 2 (10) Movement in debt (299)(26) 

  16. Slide 16: Capital

    Capital Mar 02 Mar 01 £m £m Net debt / (cash) 159 (140) Equity and minorities 818 811 Capital employed 977 671 Gearing 19% n/m (debt / equity + minorities) 

  17. Slide 17: Johnson Matthey

     Johnson Matthey 

  18. Slide 18: Catalysts & Chemicals Division

    Catalysts & Chemicals Division £m £m -11% +17% 1,800 100 94.7 1,500 80 1,468 80.9 1,303 1,200 60 900 40 600 Sales 20 300 Operating Profit  0 0 2001 2002 2001 2002

  19. Slide 19: Catalytic Systems

    Catalytic Systems  Global car sales 2 to 3% down in our fiscal year  Our volumes flat on last year  Business sees benefits of investment in technology  All plants converted to precision coating within a year 

  20. Slide 20: Heavy Duty Diesel

    Heavy Duty Diesel  Retrofit market continues to grow  Major trials in US and Asian cities  Original equipment market takes off in middle of the decade  $600 million market by around 2008 

  21. Slide 21: Chemicals

    Chemicals  Strong growth in pgm refining  Manufacturing presence in China  Avocado acquisition supports excellent growth in Research Chemicals 

  22. Slide 22: Fuel Cells

    Fuel Cells  Expansion at Sonning completed  Good progress on Swindon plant  Market consolidating as major players emerge  Near term opportunities in niche portable power and telecoms applications 

  23. Slide 23: Fuel Cell Products

    Fuel Cell Products 

  24. Slide 24: Fuel Cell Vehicles

    Fuel Cell Vehicles oe

  25. Slide 25: Precious Metals Division

    Precious Metals Division £m £m -24% -3% 6,000 60 57.4 55.9 5,000 50 4,000 4,146 40 3,000 3,167 30 2,000 20 Sales 1,000 10 Operating Profit 0 0 2001 2002 2001 2002 

  26. Slide 26: Platinum & Palladium Prices

    Platinum & Palladium Prices US $ 1,200 1,000 800 600 400 200 0 Mar00 Mar01 Mar02 May02 Platinum Palladium 

  27. Slide 27: Precious Metals Division

    Precious Metals Division  Platinum demand robust  Diesel catalysts  China jewellery  Good growth in fabricated products  Pressure on margins in Gold and Silver 

  28. Slide 28: Colours & Coatings Division

    Colours & Coatings Division £m £m +1% -21% 300 35 32.1 30 250 253 251 25.5 25 200 20 150 15 100 10 Sales 50 5 Operating Profit 0 0 2001 2002 2001 2002 

  29. Slide 29: Colours & Coatings Division

    Colours & Coatings Division  Glass sector performs well  Structural Ceramics positioned as lowest cost producer  Very difficult conditions in Tableware market  Swift action taken to reduce costs 

  30. Slide 30: Pharmaceutical Materials Division

    Pharmaceutical Materials Division £m £m +200% +74% 120 35 106 31.3 30 100 25 80 20 60 18.0 15 40 10 Sales 35 20 5 Operating Profit 0 0 2001 2002 2001 2002 

  31. Slide 31: Pharmaceutical Materials Division

    Pharmaceutical Materials Division  New product introductions  Growth in specialist opiates  Expansion of contract research  Approval to import narcotic raw materials into US 

  32. Slide 32: Pharmaceutical Materials Division: New Products

    Pharmaceutical Materials Division New Products Patent Pre-clinical Phase I Phase II Phase III Protected Generic New products in development Jun 02 17 4 7 9 18 Dec 01 12 4 3 10 14 

  33. Slide 33: Outlook

    Outlook  Economic climate more encouraging  Car sales forecasts improving  Platinum demand robust  JM well placed for further growth 

  34. Slide 34: Johnson Matthey

     Johnson Matthey 

Johnson Matthey — FY2002 Earnings Presentation on 6ix