1. 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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Johnson Matthey

3. 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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Johnson Matthey

5. Summary Results 1H 1H 2001 2000 £m £m % Turnover 2,647 2,852 -7
£m £m %
Turnover 2,647 2,852 -7
Operating Profit
Interest (2.2)
Profit before tax*
Exceptionals
Goodwill amortisation (2.4) (0.1)
EPS * p p +7
Dividend 7.5p 7.0p +7
* Excluding exceptionals & goodwill amortisation

6. Operating Profit 1H 1H 2001 2000 £m £m %
Catalysts & Chemicals
Precious Metals
Colours & Coatings
Pharmaceutical Materials
Corporate (7.1) (6.3)
Discontinued (0.5)
Excluding acquisitions
& disposals

7. 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

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

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

10. Taxation 1H 1H 2001 2000 Restated for FRS 19 £m £m
Restated for FRS 19
£m £m
Underlying tax
Tax on exceptionals
Underlying tax rate 29.5% 29.5%

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

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

13. Capital Sep 01 Mar 01 £m £m Net debt / (cash) 108 (140)
Equity and minorities
Capital employed
Gearing 13% n/m

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

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

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

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

18. 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

19. Platinum & Palladium Prices
Sep Mar Sep Mar Sep01
US $/oz

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

21. 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 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.

22. 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.

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

24. 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

25. 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

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

27. 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

28. 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. )

29. MEA Factory at Swindon

30. MEA Factory at Swindon

31. 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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Johnson Matthey