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

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

Johnson Matthey

Summary Results 1H £m£m% Turnover 2,647 2,852-7 Operating Profit Interest (2.2) 3.3 Profit before tax* Exceptionals Goodwill amortisation (2.4) (0.1) EPS * 29.5p 27.5p+7 Dividend 7.5p 7.0p+7 * Excluding exceptionals & goodwill amortisation

Operating Profit 1H1H £m£m% Catalysts & Chemicals Precious Metals Colours & Coatings Pharmaceutical Materials Corporate (7.1)(6.3) Discontinued (0.5) Excluding acquisitions & disposals

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

Interest 1H £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 Restated for FRS 19£m Underlying tax Tax on exceptionals Underlying tax rate29.5%29.5%

Free Cash Flow 1H £m Operating profit Depreciation and amortisation Working capital / other (10.1) (25.4) Cash flow from operations Interest / tax / dividends(55.3) (42.7) Capex (67.2)(39.6) Free cash flow (8.1)(5.2)

Net Cash Flow 1H £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 01Mar 01£m Net debt / (cash) 108(140) Equity and minorities Capital employed Gearing13%n/m

Divisional Performance Sales Profits 1H 1H £m % £m% Catalysts & Chemicals Precious Metals 1, Colours & Coatings Pharmaceutical Materials

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 11 th September  Poor September but better car sales in October  Confident of continued profit growth worldwide Source: Automotive News

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

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

European Demand for Platinum in Autocatalysts '000 oz

Demand for Platinum in Jewellery million oz

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

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

Pre-clinical Phase I Phase II Phase III PatentProtected Generic Approval Pharm-Eco Pharmaceutical Materials New Products WestDeptford (US) West Deptford (US) Macfarlan Smith (UK) New products in development

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

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

Johnson Matthey