Johnson Matthey Presentation of Results for the year ended 31st March th June 1999

Johnson Matthey

OVERVIEW Profit £1 million ahead at £131.2 million Dividend up 7% Strong performances from Catalysts & Chemicals, Precious Metals and Colours & Coatings Electronic Materials hit by adverse market conditions Continued focus on costs

STRATEGY Catalysts & Chemicals – focus for growth Electronic Materials – a separate US entity – opportunities to enhance shareholder value

Johnson Matthey

SUMMARY RESULTS 1999 £m 1998 £m % Turnover 3,385 3, Operating profit* Interest(5.9)(9.0) Profit before tax* EPS*44.3p44.3p- EPS (FRS 3)46.1p48.2p-4 Dividend19.0p17.8p+7 * Excluding exceptional items 1

OPERATING PROFIT Catalysts & Chemicals Precious Metals Electronic Materials Colours & Coatings Corporate Costs Discontinued % (11.6) £m (9.7) £m

RETURN ON SALES 1999 Sales excl. PM ROS excl. PM £m % Catalysts & Chemicals Precious Metals2, Electronic Materials Colours & Coatings ,3841, Discontinued Operations22 3,3851,149

GEOGRAPHICAL SPLIT OPERATING PROFIT 1998 £139.2m 1999 £147.1m Europe Rest of World South East Asia North America

EXCEPTIONAL ITEMS £m Closure of Australia Autocat facility(2.4) Withdrawal from Plating and Bushings(2.5) Ballard share sale 3.0 Operating profit exceptional charge(1.9) Sale of UK Minerals 1.6 Sale of surplus properties 0.3 Pre-tax exceptional charge - Tax saving on FIDs 3.9 Post-tax exceptional credit 3.9

TAXATION 1999 £m 1998 £m Underlying tax ACT saving on FIDs(3.9)(8.7) Average tax rate24%19% Underlying tax rate27%26%

RETURN ON INVESTMENT 1999 £m 1998 £m Operating profit Average assets employed: 534 Cumulative goodwill Net borrowings Total investment Pre-tax ROA Post-tax ROA 15.8% 11.5% 16.8% 12.4% Equity and minorities

FREE CASH FLOW 1999 £m 1998 £m

CHANGE IN BORROWINGS 1999 £m 1998 £m

Net debt Equity and minorities Capital employed Debt / Equity and minorities39%45% Interest cover 9x15x GEARING 1999 £m 1998 £m

Johnson Matthey

CATALYSTS & CHEMICALS DIVISION % +21% £m Operating ProfitSales £m

AUTOCATALYSTS Strong growth in both Europe and North America Tighter standards lead to volume growth New high technology products help to protect margins Opportunities in heavy duty diesel Acquisition strengthens service to US customers

POTENTIAL JM SUPPLY TO FUEL CELL CAR 1.Fuel ProcessorConverts fuel to H 2 rich gas. Catalyst coating. 2.CO Clean-upRemoves CO from H 2 rich gas. Catalyst coating. 3.Fuel Cell StackCombines hydrogen with oxygen Membrane electrode to make water and electrical power. assembly. 150 MEA/car. 4.After burnerBurns unused gas. Heats reformer. Catalyst coating. 5.AftertreatmentFinal emission control. Catalyst coating. FunctionJM Interest

PHARMACEUTICAL MATERIALS Continued strong growth Sales of organics double, led by methylphenidate Good pipeline of new products Continued investment in expansion

CHEMICALS A successful year led by pgm chemicals and refining Investment in process catalysts

PRECIOUS METALS DIVISION % -3% 2,094 2, £m ,000 1,500 2,000 2,500 Operating ProfitSales

PRECIOUS METALS DIVISION Higher pgm prices Good demand Improved fabricated metal business Gold activity benefits from dishoarding in first half Primary gold refining remains strong

Platinum Palladium April 97 April 98 April 99 PLATINUM & PALLADIUM PRICES $/oz

ELECTRONIC MATERIALS DIVISION %-5% £m Operating ProfitSales

WAFER FABRICATION MATERIALS Hit by destocking and price competition for much of year Early signs of recovery in final quarter

INTERCONNECT PRODUCTS AND SERVICES Good year for Semiconductor Packages Assembly Products hit by shift to lower cost PCs Laminate Products suffered price competition New HDI technology promises improved margins

+56% -8% £m COLOURS & COATINGS DIVISION * adjusted to reflect 100% ownership * * Operating ProfitSales

COLOURS & COATINGS DIVISION Strong sales to automotive glass market Good growth in Pigments Successful year for Tile and Zircon Tableware hit by poor market

OUTLOOK Strategy for Electronics Opportunities for core businesses Good flow of new products Rigorous attention to costs

Johnson Matthey