Johnson Matthey PLC · LSE:JMAT
Johnson Matthey — Investor Presentation (March 2018)
13 slides from Johnson Matthey's investor presentation, Mar 7, 2018
Slide 1: Sector call - Efficient Natural Resources
Sector call - Efficient Natural Resources 7th March 2018 Jane Toogood Sector Chief Executive, Efficient Natural Resources
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: My background and the creation of the Efficient Natural Resources sector
My background and the creation of the Efficient Natural Resources sector • Joined JM in February 2016 as Divisional Director, Precious Metal Products • Sector Chief Executive, Efficient Natural Resources from April 2017 • Efficient Natural Resources formed from Process Technologies and Precious Meta
Slide 4: A key part of the JM group
A key part of the JM group Market leading growth in Efficient Natural Resources Sales, 2016/17 • We help our customers make more efficient use of scarce natural resources across a range of industries 25% • Using JM’s core chemistry and technology expertise to solve complex and variable problems thro
Slide 5: Structure of the sector
Structure of the sector Catalyst Technologies Efficient Natural Resources Chemicals Oil & Gas 2016/17 sales by sub-business Chemical catalysts Refinery catalysts and gas Catalyst and process technology purification Technologies Chemicals Oil & Gas 40% of Sector sales 23% of Sector sales £861m(*) PGM
Slide 6: Our core strengths underpin #1 or #2 market positions in almost all our key segments
Our core strengths underpin #1 or #2 market positions in almost all our key segments Catalyst Technologies • JM present in ~ • JM present in ~ Chemicals - JM 30% of overall Oil & Gas(1) – 37% of overall £343m market £199m JM market Chemical catalysts • JM #1 or #2 in Refinery Catalysts • JM has narr
Slide 7: Our strategy to deliver consistent market outperformance
Our strategy to deliver consistent market outperformance Maximise growth through Focused investment in R&D to differentiated investment by maintain & extend technology segment and region and focus leadership on margin retention in lower growth markets Deliver additional value Explore long term growt
Slide 8: 1. Maximise growth through differentiated investment by segment and region
1. Maximise growth through differentiated investment by segment and region % of sales(1) in each growth area(2) 40 35 30 34 25 27.2 25.2 20 15 10 5 8.8 4.8 0 < 1% 1.1 -2% 2.1 -3% 3.1- 4% 4.1%+ Increasing investment (1) 2017/18 budget sales 8 (2) 10 year growth rate
Slide 9: 2. Focused investment in R&D to maintain and extend technology leadership
2. Focused investment in R&D to maintain and extend technology leadership Unique set of materials science and scale up capabilities Maintain R&D spend at consistent level R&D closely aligned to value creating sector positions and growth areas Working closely with leading edge partners and customers
Slide 10: 3. Deliver additional value by focus on efficiency
3. Deliver additional value by focus on efficiency Enablers for Efficient Natural Resources Examples Operational improvements PGM refinery optimisation Deliver operational Complexity reduction Product portfolio improvement optimisation - Operating profit 1% ahead of sales growth Organisational effic
Slide 11: 4. Explore long term growth opportunities by extending our capabilities
4. Explore long term growth opportunities by extending our capabilities into adjacent markets, geographies and technologies New natural Alternative Customer and resource landscape feedstocks circular economies Exploring new Gas to chemicals Recycling market spaces Biorenewables New customer solution
Slide 12: The future for Efficient Natural Resources means:
The future for Efficient Natural Resources means: A wider scope building on JM core competences and leadership in chemistry and technology Performance improvement by focused investment and efficiency Sales growth at 1% above the market (excl. PGMS) and operating profit 1% above sales growth Creating
Slide 13: www.matthey.com/investor
Matthey | 2 eit e, enhancing life www. matthey.com/investor