Johnson Matthey > TheJOHNSON group focuses MATTHEY on its IScore A skillsSPECIALITY in catalysis, CHEMICALS precious 2011 metals,COMPANY fine chemicalsAND A WORLD and process LEADER technology, IN ADVANCED developing ANNUAL REPORT & ACCOUNTS productsMATERIALS that enhanceTECHNOLOGY. the quality of life for millions of people around the world. The group has operations in over 5th Floor 25 Farringdon Street 30 countries and employs around 9,700 people. Johnson London EC4A 4AB Matthey’s operations are organised into three global United Kingdom Tel: +44 (0)20 7269 8400 divisions: Environmental Technologies, Precious Metal Fax: +44 (0)20 7269 8433 Products and Fine Chemicals. WHERE WE OPERATE Scandinavia UK USA / Canada Europe Asia Central America Africa Australia South America Johnson Matthey’s > TODAY, long term commitment to investment in research and development, as well Annual Report & 2011 Accounts as in new manufacturing technologies and production facilities enables the company to exploit the potential for growth in many of its key > www.matthey.com product areas. To view our online annual report CAUTIONARY STATEMENT GO ONLINE The Business Review and certain other sections of this annual report contain forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which the group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. Johnson Matthey > TheJOHNSON group focuses MATTHEY on its IScore A skillsSPECIALITY in catalysis, CHEMICALS precious 2011 metals,COMPANY fine chemicalsAND A WORLD and process LEADER technology, IN ADVANCED developing ANNUAL REPORT & ACCOUNTS productsMATERIALS that enhanceTECHNOLOGY. the quality of life for millions of people around the world. The group has operations in over 5th Floor 25 Farringdon Street 30 countries and employs around 9,700 people. Johnson London EC4A 4AB Matthey’s operations are organised into three global United Kingdom Tel: +44 (0)20 7269 8400 divisions: Environmental Technologies, Precious Metal Fax: +44 (0)20 7269 8433 Products and Fine Chemicals. WHERE WE OPERATE Scandinavia UK USA / Canada Europe Asia Central America Africa Australia South America Johnson Matthey’s > TODAY, long term commitment to investment in research and development, as well Annual Report & 2011 Accounts as in new manufacturing technologies and production facilities enables the company to exploit the potential for growth in many of its key > www.matthey.com product areas. To view our online annual report CAUTIONARY STATEMENT GO ONLINE The Business Review and certain other sections of this annual report contain forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which the group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. with good growth in its major markets. All of the group’s businesses performed well, marking a return to strong growth for the group. JOHNSON MATTHEY PERFORMED STRONGLY IN 2010/11 Our Divisional Structure The Group at a Glance Johnson Matthey Environmental Technologies Precious Metal Products Fine Chemicals Year to 31st March % 2010 change FinancialRevenue Highlights 2011 £7,839m +27 – Platinum Marketing and Distribution – Macfarlan Smith 2011 Sales excluding precious metals £1,886m +21 – Refining – Pharmaceutical Materials Profit before tax £228.5m +14 Emission Control Services APIand Manufacturing Services £9,985m Technologies Total earnings per share 77.6p +10 – Noble Metals £2,280m Process Technologies £260.6m – Colour Technologies Underlying*: – CatalystsManufacturing and Chemicals 85.6p Fuel Cells Research Chemicals Profit before tax £254.1m +36 Earnings per share 86.4p +38 £345.5m Dividend per share 39.0p +18 119.0p * Before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses and, where relevant, related tax effects. 46.0p Underlying Earnings per Share Dividend per Share 119.0p 46.0p 39.0p 36.6p 37.1p Environmental Technologies Division Johnson Matthey has a longstanding Fine Chemicals Division is a global supplier 89.5p 89.6p 86.4p 33.6p is a global supplier of catalysts and related international reputation as a leader in the of active pharmaceutical ingredients, fine 82.2p technologies for applications which benefit application of precious metals. Precious Metal chemicals and other speciality chemical the environment such as pollution control, Products Division is at the heart of these products and services to a wide range of cleaner fuel, more efficient use of activities focused on the marketing, distribution, chemical and pharmaceutical industry hydrocarbons and the hydrogen economy. fabrication and refining of precious metals customers and research institutes. and their products and the manufacture of catalysts and precious metal chemicals. Return on sales excluding 10.5% Return on sales excluding 31.9% Return on sales excluding 22.9% precious metals precious metals precious metals KeyReturn Statistics on invested capital (ROIC) 11.5% ReturnKey Statistics on invested capital (ROIC) 55.9% KeyReturn Statistics on invested capital (ROIC) 13.7% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Capital expenditure £90.1m Capital expenditure £26.1m Capital expenditure £16.0m Capex / depreciation 1.1 Capex / depreciation 1.1 Capex / depreciation 0.9 The paper in this report contains material sourced from responsibly managed forests, Average invested capital £1,435m Average invested capital £309m Average invested capital £409m certified in accordance with the FSC (Forest Stewardship Council) and is totally recyclable Employees 5,569 Employees 2,711 Employees 1,089 and acid-free. Fulmar Colour is FSC certified, PEFC certified and ISO 14001 certified showing that it is committed to all round excellence and improving environmental performance is an important part of this strategy. Fulmar Colour aims to reduce at source the effect its operations £ million 1,566 £ million £ million 245 Sales Excluding Precious Metals Sales Excluding Precious541 Metals Sales Excluding Precious Metals 215 221 have on the environment and is committed to continual improvement, prevention of 1,252 Underlying1,135 Operating Profit Underlying447 Operating454 Profit Underlying Operating Profit pollution and compliance with any legislation or industry standards. Fulmar Colour is a Carbon Neutral Printing Company. 172.9 143.0 116.7 49.5 55.8 56.2 124.3 120.9 164.7 Designed and produced by www.magee.co.uk 2009* 2010 2011 2009* 2010 2011 2009* 2010 2011 Printed by Fulmar Colour MAGEE * Excluding inter-segment sales. with good growth in its major markets. All of the group’s businesses performed well, marking a return to strong growth for the group. JOHNSON MATTHEY PERFORMED STRONGLY IN 2010/11 Our Divisional Structure The Group at a Glance Johnson Matthey Environmental Technologies Precious Metal Products Fine Chemicals Year to 31st March % 2010 change FinancialRevenue Highlights 2011 £7,839m +27 – Platinum Marketing and Distribution – Macfarlan Smith 2011 Sales excluding precious metals £1,886m +21 – Refining – Pharmaceutical Materials Profit before tax £228.5m +14 Emission Control Services APIand Manufacturing Services £9,985m Technologies Total earnings per share 77.6p +10 – Noble Metals £2,280m Process Technologies £260.6m – Colour Technologies Underlying*: – CatalystsManufacturing and Chemicals 85.6p Fuel Cells Research Chemicals Profit before tax £254.1m +36 Earnings per share 86.4p +38 £345.5m Dividend per share 39.0p +18 119.0p * Before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses and, where relevant, related tax effects. 46.0p Underlying Earnings per Share Dividend per Share 119.0p 46.0p 39.0p 36.6p 37.1p Environmental Technologies Division Johnson Matthey has a longstanding Fine Chemicals Division is a global supplier 89.5p 89.6p 86.4p 33.6p is a global supplier of catalysts and related international reputation as a leader in the of active pharmaceutical ingredients, fine 82.2p technologies for applications which benefit application of precious metals. Precious Metal chemicals and other speciality chemical the environment such as pollution control, Products Division is at the heart of these products and services to a wide range of cleaner fuel, more efficient use of activities focused on the marketing, distribution, chemical and pharmaceutical industry hydrocarbons and the hydrogen economy. fabrication and refining of precious metals customers and research institutes. and their products and the manufacture of catalysts and precious metal chemicals. Return on sales excluding 10.5% Return on sales excluding 31.9% Return on sales excluding 22.9% precious metals precious metals precious metals KeyReturn Statistics on invested capital (ROIC) 11.5% ReturnKey Statistics on invested capital (ROIC) 55.9% KeyReturn Statistics on invested capital (ROIC) 13.7% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Capital expenditure