Presentation of Results for the half year ended 30th September 2001 Johnson Matthey Johnson Matthey Presentation of Results for the half year ended 30th September 2001 29th November 2001

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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

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Summary Results 1H 1H 2001 2000 £m £m % Turnover 2,647 2,852 -7 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

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 13.1 8.8 +49 Corporate (7.1) (6.3) Discontinued (0.5) - 94.4 82.7 +14 Excluding acquisitions 90.8 82.7 +10 & disposals

Geographical Split Operating Profit 2001 £94.4m 1H 2000 £82.7m 10% 7% 8% 7% 43% 37% 40% 48% Europe Asia North America Rest of the World

Interest 1H 1H 2001 2000 £m £m Financial (0.4) 3.7 (2.2) 3.3 2001 2000 £m £m Financial (0.4) 3.7 Gold & Silver leases (1.8) (0.4) (2.2) 3.3

Exceptional Items 1H 2001 £m Sale of unhedged palladium 7.2 Sale of French print business (5.5) Other (0.1) 1.6

Taxation 1H 1H 2001 2000 Restated for FRS 19 £m £m 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%

Free Cash Flow 1H 1H 2001 2000 £m £m Operating profit 99.1 82.7 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)

Net Cash Flow 1H 1H 2001 2000 £m £m Free cash flow (8.1) (5.2) 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)

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

Divisional Performance Sales Profits 1H 1H 2001 2001 £m % £m % Catalysts & Chemicals 746 +20 45.1 +21 Precious Metals 1,729 -17 29.3 +7 Colours & Coatings 130 +4 14.5 -6 Pharmaceutical Materials 41 +157 13.1 +49

Key Issues Autocatalysts and car sales Precious metals prices Pharmaceutical Materials Division Fuel cells

Autocatalysts Global car sales down 2-3% Profits up following new factory at Royston

Autocatalysts New generation products help customers save costs Market share growth in Europe Investment in new production technology continues

US Light Duty Vehicle Sales Uncertainty in North America post 11th September Poor September but better car sales in October Confident of continued profit growth worldwide Source: Automotive News

Platinum & Palladium Prices Sep99 Mar00 Sep00 Mar01 Sep01 US $/oz

Platinum Platinum most important metal to JM Robust fundamentals Autocatalyst Jewellery in China

European Demand for Platinum in Autocatalysts 1997 - 2001 '000 oz This large increase is a result of 3 distinct factors: Consumer demand for diesel vehicles continues to grow. As a result, their share of the European auto market is expected to grow to 36% this year from 32% last year and 28% the year before. As I’m sure you’re aware, diesel vehicle catalysts only contain platinum The second factor is the implementation of Stage III legislation which applied to all new vehicles from January 2001. To meet these tighter standards, platinum loadings on diesel vehicles have increased significantly And lastly, the amount of platinum used on gasoline cars is expected to increase by 50% this year, as several auto companies switch from palladium intensive catalyst technology to catalysts which utilize platinum.

Demand for Platinum in Jewellery 1997 - 2001 million oz In contrast, the popularity of platinum jewellery has continued to grow in China this year and demand is on track to increase by 18% to 1.3 million ounces - making this the world’s largest platinum jewellery market by a wide margin Growth would have been even stronger if not for the high platinum price in the first half of this year.

Pharmaceutical Materials Macfarlan Smith (Meconic) West Deptford Pharm-Eco Platinum anti-cancer Controlled substances Controlled substances Extraction technology Contract research Small scale synthesis

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

Pharmaceutical Materials New Products Macfarlan Smith (UK) Pharm-Eco West Deptford (US) Patent Protected Pre-clinical Phase I Phase II Phase III Generic Approval New products in development 12 4 3 10 14

Pharmaceutical Materials Profit Growth Opportunities Market growth Specialist opiates Cross–selling Share R&D, manufacturing processes

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

New Fuel Cell Products for 2002 Hydrogenics HyUPS™ for back up power (Photograph courtesy of Hydrogenics Corporation) Ballard NEXA™ power module for portable applications (Photograph courtesy of Ballard Power Systems Inc. )

MEA Factory at Swindon

MEA Factory at Swindon

Outlook Some impact of US slowdown and lower pgm prices Continued growth in Catalysts & Chemicals despite weaker markets Good prospects in Pharmaceutical Materials

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