Presentation of Results for the year ended 31st March 2001 Johnson Matthey E Presentation of Results for the year ended 31st March 2001 7th June 2001

Johnson Matthey E

Overview An excellent year Operating profit up 20% All three divisions producing strong organic growth Profit before tax up 25% to £180.3 million Accelerated investment in growth businesses

Johnson Matthey E

Summary Results 2001 2000 £m £m % Turnover 5,904 3,866 +53 2001 2000 £m £m % Turnover 5,904 3,866 +53 Op. Profit – Continuing 175.2 146.5 +20 – Discontinued (0.2) (0.3) Interest 5.3 (2.4) Profit before tax* 180.3 143.8 +25 Exceptionals 0.5 13.6 Goodwill amortisation (0.3) (0.2) EPS* 58.1p 47.5p +22 Dividend 23.3p 20.3p +15 * Excluding exceptionals & goodwill amortisation

Operating Profit 2001 2000 £m £m % Catalysts & Chemicals 98.9 84.8 +17 2001 2000 £m £m % Catalysts & Chemicals 98.9 84.8 +17 Precious Metals 57.4 45.4 +26 Colours & Coatings 32.2 27.9 +15 Corporate (13.3) (11.6) 175.2 146.5 +20 2001 at 2000 exchange rates £m % 93.5 +10 56.0 +23 32.6 +17 (13.3) 168.8 +15

Return on Sales Excluding Precious Metals Sales excl. PM’s 2001 2000 Growth £m £m % Catalysts & Chemicals 565 494 +14 Precious Metals 162 114 +42 Colours & Coatings 250 234 +7 977 841 +16 ROS 2001 2000 % % 17.5 17.2 35.5 40.0 12.9 11.9 17.9 17.4

Geographical Split Operating Profit 2001 £175.2m 2000 £146.5m Europe Asia North America Rest of World

Interest 2001 2000 £m £m Financial 6.7 (0.2) 5.3 (2.4) 2001 2000 £m £m Financial 6.7 (0.2) Gold & Silver leases (1.4) (2.2) 5.3 (2.4)

Taxation 2001 2000 £m £m Underlying tax 52.2 40.4 2001 2000 £m £m Underlying tax 52.2 40.4 Tax on exceptionals 0.1 4.9 52.3 45.3 Average tax rate 29.0% 28.8% Underlying tax rate 29.0% 28.1%

Return on Investment 2001 2000 £m £m Operating profit 175 146 2001 2000 £m £m Operating profit 175 146 Average assets: Equity and minorities 808 659 Cumulative goodwill w/o 46 109 Net (cash) / borrowings (153) 28 Total investment 701 796 Pre-tax ROA 25.0% 18.4% Post-tax ROA 17.8% 13.2% Economic value added £53m £32m

Free Cash Flow 2001 2000 £m £m Operating profit 174.1 136.2 2001 2000 £m £m Operating profit 174.1 136.2 Depreciation and amortisation 41.1 46.6 Working capital / other (58.7) (52.5) Cash flow from operations 156.5 130.3 Interest / tax / dividends (78.8) (78.1) Capex - gross (98.9) (63.4) - disposals 4.2 9.1 - EMD - (11.4) Free cash flow (17.0) (13.5)

Net Cash Flow 2001 2000 £m £m Free cash flow (17.0) (13.5) 2001 2000 £m £m Free cash flow (17.0) (13.5) Acquisitions (7.5) (2.9) Disposals 0.6 401.7 Shares issued 7.9 8.0 Net cash flow (16.0) 393.3 Exchange (9.9) (5.9) Movement in debt (25.9) 387.4

Capital Mar 01 Mar 00 £m £m Net (cash) / debt (140) (166) Equity and minorities 856 760 Capital employed 716 594

Catalysts & Chemicals Division Operating Profit Sales 20 40 60 80 100 +17% +76% 2000 2001 £m 600 900 1200 1500 300 1800 1,503 98.9 856 84.8

Catalytic Systems Sales volume up 9% Growth in market share New facilities New process technology

Fuel Cells Testing facility complete Ballard co-operation expanded Expanding existing capacity for catalyst, MEAs and fuel processors Planning MEA manufacturing plant, UK site found

Chemicals Buoyant market for PGM refining activities Strong growth in process catalysts and PGM chemicals Major investment in upgrading and expanding refining capacity

Pharmaceutical Materials Strong growth in platinum pharmaceuticals Good initial sales of chiral methylphenidate Pharm-Eco acquisition

Precious Metals Division Operating Profit Sales +26% +55% 2000 2001 £m 1400 2100 2800 3500 700 4200 10 20 30 50 60 40 4,146 57.4 2,672 45.4

Precious Metals Division Strong growth in Platinum Good year for fabricated products Growth in components for medical devices Gold business slightly down

Platinum & Palladium Prices Mar99 Mar00 Mar01 Jun01 US $

Precious Metals Division Strong growth in Platinum Good year for fabricated products Growth in components for medical devices Gold business slightly down

Colours & Coatings Division +15% +6% 2000 2001 £m 100 150 200 250 50 300 Operating Profit Sales 5 10 15 25 30 20 35 255 32.2 241 27.9

Colours & Coatings Division Improving financial performance Strong growth in Tile Good performance from Glass Investment in growth markets Tableware restructuring benefits delivered

Strategy Focused the group Invest in organic growth Complementary acquisitions

Outlook - Major Projects Autocatalyst - new process technology PGM refining expansion Complete new pharmaceutical facility Tile facilities in Spain / Brazil Fuel cells

Outlook - Prospects Continued good growth in Catalytic Systems Prospects for Platinum favourable Encouraging start to the new year

Johnson Matthey E