Johnson Matthey PLC · LSE:JMAT
Johnson Matthey — H1 2002 Earnings Presentation
32 slides from Johnson Matthey's earnings presentation, Nov 29, 2001
Slide 1: Presentation of Results for the half year ended 30th September 2001
Johnson Matthey Presentation of Results for the half year ended 30th September 2001 29th November 2001
Slide 2: Johnson Matthey
Johnson Matthey
Slide 3: Overview
Overview Profit before tax up 7% to £92.2 million Continued strong performance from Catalysts & Chemicals New Pharmaceutical Materials Division making good progress Work commenced on new fuel cell components factory
Slide 4: Johnson Matthey
Johnson Matthey
Slide 5: Summary Results
Summary Results 1H 1H 2001 2000 £m £m% Turnover 2,647 2,852 -7 Operating Profit 94.4 82.7 +14 Interest (2.2) 3.3 Profit before tax* 92.2 86.0 +7 Exceptionals 1.6 - Goodwill amortisation (2.4) (0.1) EPS * 29.5p 27.5p +7 Dividend 7.5p 7.0p +7 * Excluding exceptionals & goodwill amortisation
Slide 6: Operating Profit
Operating Profit 1H 1H 2001 2000 £m £m% Catalysts & Chemicals 45.1 37.4 +21 Precious Metals 29.3 27.3 +7 Colours & Coatings 14.5 15.5 -6 Pharmaceutical Materials 13.18.8 +49 Corporate (7.1)(6.3) Discontinued (0.5) - 94.4 82.7 +14 Excluding acquisitions 90.882.7 +10 & disposals
Slide 7: Geographical Split
Geographical Split Operating Profit 1H 1H 2001 2000 £94.4m £82.7m 10% 7% 8% 7% 43% 37% 40% 48% Europe Asia North America Rest of the World
Slide 8: Interest
Interest 1H 1H 2001 2000 £m £m Financial (0.4) 3.7 Gold & Silver leases (1.8) (0.4) (2.2) 3.3
Slide 9: Exceptional Items
Exceptional Items 1H 2001 £m Sale of unhedged palladium 7.2 Sale of French print business (5.5) Other (0.1) 1.6
Slide 10: Taxation
Taxation 1H 1H 2001 2000 Restated for FRS 19 £m £m Underlying tax 27.2 25.4 Tax on exceptionals 2.2 - 29.4 25.4 Underlying tax rate 29.5% 29.5%
Slide 11: Free Cash Flow
Free Cash Flow 1H 1H 2001 2000 £m £m Operating profit 99.1 82.7 Depreciation and amortisation 25.4 19.8 Working capital / other (10.1) (25.4) Cash flow from operations 114.4 77.1 Interest / tax / dividends (55.3) (42.7) Capex (67.2) (39.6) Free cash flow (8.1) (5.2)
Slide 12: Net Cash Flow
Net Cash Flow 1H 1H 2001 2000 £m £m Free cash flow (8.1) (5.2) Acquisitions (139.6) (1.8) Disposals (1.4)(0.2) Shares issued/(bought) (39.6) 5.8 Net cash flow (188.7)(1.4) Debt acquired with subs. (46.6) - Loan notes issued (18.7) - Exchange 6.0(3.4) Movement in debt (248.0)(4.8)
Slide 13: Capital
Capital Sep 01 Mar 01 £m £m Net debt / (cash) 108 (140) Equity and minorities 803 812 Capital employed 911 672 Gearing 13% n/m
Slide 14: Divisional Performance
Divisional Performance Sales Profits 1H 1H 2001 2001 £m % £m % Catalysts & Chemicals 746 +2045.1 +21 Precious Metals 1,729 -1729.3 +7 Colours & Coatings 130 +4 14.5 -6 Pharmaceutical Materials 41+15713.1 +49
Slide 15: Key Issues
Key Issues Autocatalysts and car sales Precious metals prices Pharmaceutical Materials Division Fuel cells
Slide 16: Autocatalysts
Autocatalysts Global car sales down 2-3% Profits up following new factory at Royston
Slide 17: Autocatalysts
Autocatalysts New generation products help customers save costs Market share growth in Europe Investment in new production technology continues
Slide 18: US Light Duty Vehicle Sales
US Light Duty Vehicle Sales Monthly Actual Half Yearly Average '000 V ehicles Uncertainty in North 2000 1800 America post 11th 1600 September 1400 1200 Poor September but 1000 better car sales in 800 October 600 400 Confident of continued 200 profit growth worldwide 0 Source: Automotive News
Slide 19: Platinum & Palladium Prices
Platinum & Palladium Prices US $/oz 1,200 1,000 800 600 400 200 0 Sep99 Mar00 Sep00 Mar01 Sep01 Platinum Palladium
Slide 20: Platinum
Platinum Platinum most important metal to JM Robust fundamentals Autocatalyst Jewellery in China
Slide 21: European Demand for Platinum in Autocatalysts 1997 - 2001
European Demand for Platinum in Autocatalysts 1997 - 2001 '000 oz 1,000 800 600 Gasoline Diesel 400 200 0 1997 1998 1999 2000 2001
Slide 22: Demand for Platinum in Jewellery 1997 - 2001
Demand for Platinum in Jewellery 1997 - 2001 million oz 3.0 2.5 2.0 China 1.5 Europe N. America 1.0 Japan 0.5 0.0 1997 1998 1999 2000 2001
Slide 23: Pharmaceutical Materials
Pharmaceutical Materials Macfarlan Smith West Deptford Pharm-Eco (Meconic) Platinum anti-cancer Controlled substances Contract research Controlled substances Extraction technology Small scale synthesis
Slide 24: Pharmaceutical Materials: Key Features
Pharmaceutical Materials Key Features Focus on active pharmaceutical ingredients, particularly controlled substances Core skills of catalysis and security Relationship with regulatory authorities important Customer base primarily generic and smaller pharma companies
Slide 25: Pharmaceutical Materials: New Products
Pharmaceutical Materials New Products Macfarlan Smith (UK) Pharm-Eco West Deptford (US) Patent Pre-clinical Phase I Phase II Phase III Protected Generic Approval New products in development 12 4 3 10 14
Slide 26: Profit Growth Opportunities
Pharmaceutical Materials Profit Growth Opportunities Market growth Specialist opiates Cross–selling Share R&D, manufacturing processes
Slide 27: Fuel Cells
Fuel Cells Work commenced on new MEA plant at Swindon Important collaborations in small stationary and transport applications First commercial systems available next year containing JM products
Slide 28: New Fuel Cell Products for 2002
New Fuel Cell Products for 2002 Hydrogenics HyUPS™ for back up Ballard NEXA™ power module for power portable applications (Photograph courtesy of Hydrogenics Corporation) (Photograph courtesy of Ballard Power Systems Inc. )
Slide 29: MEA Factory at Swindon
MEA Factory at Swindon | [Johnsen Math
Slide 30: MEA Factory at Swindon
MEA Factory at Swindon
Slide 31: Outlook
Outlook Some impact of US slowdown and lower pgm prices Continued growth in Catalysts & Chemicals despite weaker markets Good prospects in Pharmaceutical Materials
Slide 32: Johnson Matthey
Johnson Matthey