Slide 1: Presentation of results for the year ended 31st March 2024
Presentation of results for the year ended 31st March 2024 23rd May 2024
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. By their nature, forw
Slide 3: Agenda: Introduction
Agenda 01 Introduction 3
Slide 4: Good progress in a challenging PGM price environment
01. Introduction 02. Financial results 03. Strategic update Good progress in a challenging PGM price environment Good underlying Strong progress on New strategic performance executing our strategy milestones to 2025/26 (operating profit +11%¹) Catalysing the net zero transition to drive value creati
Slide 5: Executing on our strategic milestones
01. Introduction 02. Financial results 03. Strategic update Executing on our strategic milestones Status Win at least two large scale strategic partnerships in Hydrogen Technologies Customers Win targeted Euro 7 business and deliver £4bn+ cash trajectory from Clean Air Win >10 additional large scale
Slide 6: Well positioned for a rapidly changing environment
01. Introduction 02. Financial results 03. Strategic update Well positioned for a rapidly changing environment Slowdown in global Slower development of Increasing BEV penetration rate hydrogen value chain commercialisation of new sustainable solutions Clean Air: Hydrogen Catalyst stronger for longer
Slide 7: Agenda: Financial results
Agenda 02 Financial results 7
Slide 8: Results impacted by lower PGM prices
01. Introduction 02. Financial results 03. Strategic update Results impacted by lower PGM prices Second half sequentially stronger Sales -4% Operating profit -8% Operating profit +11% • 1H -15%, 2H flat adjusting for precious metal prices¹ Earnings per share Net debt of Ordinary dividend – 141.3p, -
Slide 9: Sales impacted by lower PGM prices
01. Introduction 02. Financial results 03. Strategic update Sales impacted by lower PGM prices Sales for year 2024 2023 % change, ended 31st March £m £m constant FX rates Clean Air 2,581 2,644 +2 PGM Services 462 570 -17 Catalyst Technologies 578 560 +6 Hydrogen Technologies 71 55 +31 Value Business
Slide 10: Operating profit benefiting from transformation and pricing
01. Introduction 02. Financial results 03. Strategic update Operating profit benefiting from transformation and pricing Underlying operating profit +11% underlying growth¹ £30m £75m (£25m) (£29m) £516m £465m (£85m) (£21m) £410m 1. At constant FX and adjusting for £85m impact from precious metal pric
Slide 11: Upgrading transformation benefits
01. Introduction 02. Financial results 03. Strategic update Upgrading transformation benefits Cost savings by Cost savings end of 2024/25 (£m) Initiative to date (£m) Original target¹ Upgraded target Management spans and layers 50 60 80 Procurement 45 40 70 Real estate 15 20 20 IT and JM Global Solu
Slide 12: Underlying results
01. Introduction 02. Financial results 03. Strategic update Underlying results Underlying results for year 2024 2023 % % change, ended 31st March¹ £m £m change constant FX rates Sales excluding precious metals (sales) 3,904 4,201 -7 -4 Operating profit 410 465 -12 -8 Finance charges (82) (61) Profit
Slide 13: Reported results
01. Introduction 02. Financial results 03. Strategic update Reported results 2024 2023 Year ended 31st March £m £m Underlying operating profit 410 465 Major impairment and restructuring charges¹ (148) (41) (Loss) / profit on disposal of businesses² (9) 12 Amortisation of acquired intangibles (4) (5)
Slide 14: Clean Air
01. Introduction 02. Financial results 03. Strategic update Clean Air Improved profitability driven by efficiencies Sales up 2% Underlying results 2024 2023 % change, for year ended £m £m constant • Higher volumes 31st March FX rates • Partly offset by lower pricing Light duty diesel 1,094 1,075 +5
Slide 15: PGM Services
01. Introduction 02. Financial results 03. Strategic update PGM Services Lower average PGM prices Sales down 17% Underlying results 2024 2023 % change, for year ended £m £m constant • Lower average PGM prices 31st March FX rates • Continued softness in auto scrap recycling Total sales 462 570 -17 •
Slide 16: Catalyst Technologies
01. Introduction 02. Financial results 03. Strategic update Catalyst Technologies Material margin improvement and strong growth in licensing Sales up 6% Underlying results 2024 2023 % change, for year ended £m £m constant • Higher pricing and better mix 31st March FX rates • Partly offset by lower v
Slide 17: Hydrogen Technologies
01. Introduction 02. Financial results 03. Strategic update Hydrogen Technologies Strong sales growth and disciplined investment Sales up 31% Underlying results 2024 2023 % change, for year ended £m £m constant • Growth driven by strategic 31st March FX rates customers in fuel cells • Slower growth
Slide 18: Net debt
01. Introduction 02. Financial results 03. Strategic update Net debt 1.6 times 1.6 times net debt net debt to EBITDA¹ to EBITDA¹ £74m £24m £1,023m Working capital £167m £951m £141m £358m (£598m) £224m (£41m) (£421m) Net debt Net debt 31st March 2023 31st March 2024 1. Net debt including post tax pen
Slide 19: Improving cash flow in the medium-term
01. Introduction 02. Financial results 03. Strategic update Improving cash flow in the medium-term Levers to drive future cash flow Top line Driving higher Capex intensity New efficient Metal price growth margins reducing PGM refinery environment delivers stabilised working capital improvement Note:
Slide 20: Disciplined organic investments
01. Introduction 02. Financial results 03. Strategic update Disciplined organic investments Up to £0.9bn Capital intensity declining Hydrogen Capex will now comprise only 10% of Technologies three year group capex £1.1bn £1.1bn Up to Catalyst Low risk, project backed investments to £0.9bn Technologi
Slide 21: Outlook for year ending 31st March 2025
01. Introduction 02. Financial results 03. Strategic update Outlook for year ending 31st March 2025 On a continuing basis, excluding Value Clean Air Businesses, we expect: • Modest growth in operating performance • Continued margin expansion driven by efficiency benefits At least mid single digit gr
Slide 22: Agenda: Strategic progress
Agenda 03 Strategic progress 22
Slide 23: Catalysing the net zero transition: our aspiration
01. Introduction 02. Financial results 03. Strategic update Catalyst Hydrogen Clean Air Technologies Technologies Catalysing the Leading in #1 in Market leader net zero transition autocatalyst markets syngas-based chemicals and in performance components for fuels technology fuel cells and electrolys
Slide 24: Portfolio transitioning and growing over time
01. Introduction 02. Financial results 03. Strategic update Portfolio transitioning and Illustrative chart Development of underlying operating profit growing over time • Clean Air efficiencies and Catalyst Technologies driving near and mid-term growth • Hydrogen Technologies contributing in the long
Slide 25: New strategic milestones for 2025/26
01. Introduction 02. Financial results 03. Strategic update New strategic milestones for 2025/26 End of End of Long- 2024/25 2025/26 term Deliver at least £4.5bn of cash in the decade to 2030/31¹ from Clean Air Customers Win 20 additional large scale projects in Catalyst Technologies’ sustainable te
Slide 26: Clean Air: stronger for longer
01. Introduction 02. Financial results 03. Strategic update Clean Air Clean Air: stronger for longer Global slowdown in BEV penetration Strategic goals Progress in 2023/24 Key priorities for 2024/25 + Deliver cash • £2.0bn¹ cash since 2020/21 • Continue to deliver cash • Evaluate next phase of Drive
Slide 27: Clean Air: material margin improvement
01. Introduction 02. Financial results 03. Strategic update Clean Air Clean Air: material margin improvement Operating margin Margin improvement initiatives Pricing – strengthening commercial muscle Mid- teens Manufacturing footprint consolidation • Closed 4 sites in the year 10.6% • Evaluating next
Slide 28: PGM Services: underpinning the group
01. Introduction 02. Financial results 03. Strategic update PGM Services PGM Services: underpinning the group PGMs are vital in the long-term and used in many energy transition technologies Strategic goals Progress in 2023/24 Key priorities for 2024/25 + • Refining capability in China Asset renewal
Slide 29: Catalyst Technologies: tremendous opportunities
01. Introduction 02. Financial results 03. Strategic update Catalyst Technologies Catalyst Technologies: tremendous opportunities New sustainable solutions taking off Strategic goals Progress in 2023/24 Key priorities for 2024/25 + • Significant profit and • Drive further material profit Improve per
Slide 30: Catalyst Technologies: significant margin improvement
01. Introduction 02. Financial results 03. Strategic update Catalyst Technologies Catalyst Technologies: significant margin improvement Operating margin Margin improvement initiatives Pricing • Improved commercial rigour to recover cost inflation High- • Driving value-based pricing in key segments t
Slide 31: Catalyst Technologies: winning pioneering projects
01. Introduction 02. Financial results 03. Strategic update Catalyst Technologies Catalyst Technologies: More than £350m in sales³ winning pioneering projects 1 Large scale project in North America 2 bp H2Teesside 2 3 Kellas Midstream H2NorthEast 3 6 1 4 4 Equinor and Linde H2H Saltend 7 8 5 9 5 Lar
Slide 32: Hydrogen Technologies: attractive long-term market
01. Introduction 02. Financial results 03. Strategic update Hydrogen Technologies Hydrogen Technologies: attractive long-term market Hydrogen value chain has slowed as the industry navigates scale up challenges Strategic goals Progress in 2023/24 Key priorities for 2024/25 + • Strong sales growth dr
Slide 33: Transforming JM
01. Introduction 02. Financial results 03. Strategic update Transformation Transforming JM Simplification Customer focus People growth Divestment of Value One account approach Building engineering and Businesses for key customers commercial capabilities • 20% increase in Catalyst Deployment of JM Gl
Slide 34: Sustainability is embedded in everything we do
01. Introduction 02. Financial results 03. Strategic update Sustainability Sustainability is embedded in everything we do Protecting the planet Recognised • Scope 1, 2 and 3 targets validated by SBTi as aligned with 1.5°C trajectory by leading ESG rankings • Delivered 30% reduction in tonnes of Scop
Slide 35: Catalysing the net zero transition
01. Introduction 02. Financial results 03. Strategic update Catalysing the net zero transition Good underlying Strong progress on New strategic performance executing our strategy milestones to 2025/26 (operating profit +11%¹) Executing in a rapidly changing world 1. Underlying basis at constant FX a
Slide 36: Agenda: Q&A
Agenda 04 Q&A 36
Slide 37: Q&A
Q&A 37
Slide 38: Appendix
Appendix 38
Slide 39: Group operating profit
Appendix Group operating profit Underlying operating profit for 2024 2023 % change, year ended 31st March £m £m constant FX rates Clean Air 274 230 +26 PGM Services 164 257 -35 Catalyst Technologies 75 51 +56 Hydrogen Technologies (50) (45) n/a Value Businesses¹ 29 40 -28 Corporate (82) (68) Underly
Slide 40: Group sales – excluding Value Businesses
Appendix Group sales – excluding Value Businesses 1H 2023/24 2H 2023/24 2023/24 Sales £m £m £m Clean Air 1,286 1,295 2,581 PGM Services 230 232 462 Catalyst Technologies 282 296 578 Hydrogen Technologies 37 34 71 Eliminations (58) (56) (114) Sales excluding Value Businesses (continuing) 1,777 1,801
Slide 41: Group operating profit – excluding Value Businesses
Appendix Group operating profit – excluding Value Businesses 1H 2023/24 2H 2023/24 2023/24 Underlying operating profit £m £m £m Clean Air 124 150 274 PGM Services 78 86 164 Catalyst Technologies 35 40 75 Hydrogen Technologies (26) (24) (50) Corporate (45) (37) (82) Underlying operating profit exclud
Slide 42: Free cash flow and net debt
Appendix Free cash flow and net debt Free cash flow from continuing operations 2024 2023 for year ended 31st March (£m) Underlying operating profit from continuing operations 410 465 Depreciation and amortisation¹ 186 176 – Precious metal working capital inflow / (outflow) 421 (53) – Non precious me
Slide 43: Net debt to EBITDA 1.6 times
Appendix Net debt to EBITDA 1.6 times¹ Continuing operations £m £m Net debt at the beginning of the year (1,023) Free cash flow 189 Dividends (141) Movement in net debt 48 Lease adjustments² 1 Disposal of businesses 11 Net debt before FX and other movements (963) FX and other non-cash movements³ 12
Slide 44: PGM prices
Appendix PGM prices US$ per troy oz 20,000 3,000 Price 2022/23 2023/24 Current (US$ per average average (20th May 15,000 troy oz) 2024) 2,000 10,000 Platinum 963 957 1,091 1,000 5,000 Palladium 1,942 1,205 1,026 0 0 01/04/2022 01/04/2023 01/04/2024 Rhodium 13,673 4,982 4,725 Rhodium Platinum Palladi
Slide 45: Financial guidance summary
Appendix Financial guidance summary Group underlying operating profit growth¹: Accelerating to high single digit growth over the medium-term, and strong long-term growth Clean Air – At least £4.5 billion of cash in the decade to 2030/31². Mid-teens operating margins by 2025/26. Catalyst Technologies