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

29th November 2001

Johnson MattheyJohnson Matthey

Johnson Matthey

OverviewOverview

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 ResultsSummary Results1H 1H

2001 2000£m £m %

Turnover 2,647 2,852 -7

Operating Profit 94.4 82.7 +14Interest (2.2) 3.3 Profit before tax* 92.2 86.0 +7

Exceptionals 1.6 - Goodwill amortisation (2.4) (0.1)

EPS * 29.5p 27.5p +7Dividend 7.5p 7.0p +7

* Excluding exceptionals & goodwill amortisation

Operating ProfitOperating Profit

1H 1H 2001 2000£m £m %

Catalysts & Chemicals 45.1 37.4 +21Precious Metals 29.3 27.3 +7 Colours & Coatings 14.5 15.5 -6 Pharmaceutical Materials 13.1 8.8 +49Corporate (7.1) (6.3)Discontinued (0.5) -

94.4 82.7 +14

Excluding acquisitions 90.8 82.7 +10& disposals

1H2000

£82.7m

37%

48%

7%8%

1H2001

£94.4m

43%

40%

10%

Europe

Rest of the World

Asia

North America

Geographical SplitGeographical SplitOperating Profit

7%

InterestInterest

1H 1H

2001 2000

£m £m

Financial (0.4) 3.7

Gold & Silver leases (1.8) (0.4)

(2.2) 3.3

Exceptional ItemsExceptional Items

1H

2001

£m

Sale of unhedged palladium 7.2

Sale of French print business (5.5)

Other (0.1)

1.6

Taxation Taxation

1H 1H

2001 2000

Restated for FRS 19

£m £m

Underlying tax 27.2 25.4

Tax on exceptionals 2.2 -

29.4 25.4

Underlying tax rate 29.5% 29.5%

Free Cash FlowFree Cash Flow

1H 1H

2001 2000

£m £m

Operating profit 99.1 82.7

Depreciation and amortisation 25.4 19.8

Working capital / other (10.1) (25.4)

Cash flow from operations 114.4 77.1

Interest / tax / dividends (55.3) (42.7)

Capex (67.2) (39.6)

Free cash flow (8.1) (5.2)

Net Cash FlowNet Cash Flow

1H 1H2001 2000

£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)

CapitalCapital

Sep 01 Mar 01

£m £m

Net debt / (cash) 108 (140)

Equity and minorities 803 812

Capital employed 911 672

Gearing 13% n/m

Divisional PerformanceDivisional Performance

Sales Profits

1H 1H 2001 2001

£m % £m %

Catalysts & Chemicals 746 +20 45.1 +21Precious Metals 1,729 -17 29.3 +7Colours & Coatings 130 +4 14.5 -6Pharmaceutical Materials 41 +157 13.1 +49

Key IssuesKey Issues

Autocatalysts and car sales

Precious metals prices

Pharmaceutical Materials Division

Fuel cells

AutocatalystsAutocatalysts Global car sales down 2-3% Profits up following new factory at Royston

AutocatalystsAutocatalysts

New generation products help customers save costs

Market share growth in Europe

Investment in new production technology continues

US Light Duty Vehicle SalesUS 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 0

200

400

600

800

1000

1200

1400

1600

1800

2000

'000 Vehicles Monthly Actual Half Yearly Average

Source: Automotive News

0

200

400

600

800

1,000

1,200

Platinum Palladium

Sep99 Mar00 Sep00 Mar01 Sep01

US $/oz

Platinum & Palladium PricesPlatinum & Palladium Prices

PlatinumPlatinum

Platinum most important metal to JM

Robust fundamentals

Autocatalyst

Jewellery in China

European Demand for Platinum European Demand for Platinum in Autocatalysts 1997 - 2001in Autocatalysts 1997 - 2001

0

200

400

600

800

1,000

1997 1998 1999 2000 2001

GasolineDiesel

'000 oz

Demand for PlatinumDemand for Platinumin Jewellery 1997 - 2001in Jewellery 1997 - 2001

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1997 1998 1999 2000 2001

China

Europe

N. America

Japan

million oz

Pharmaceutical MaterialsPharmaceutical Materials

Contract research Small scale synthesis

Controlled substances Extraction technology

West Deptford Pharm-EcoMacfarlan Smith

(Meconic)

Platinum anti-cancer Controlled substances

Pharmaceutical Materials Pharmaceutical Materials Key FeaturesKey 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

PrePre-c-clinicallinical Phase IPhase I Phase IIPhase II Phase IIIPhase IIIPatentPatent

ProtectedProtected GenericGeneric

ApprovalApproval

Pharm-EcoPharm-Eco

Pharmaceutical MaterialsPharmaceutical MaterialsNew ProductsNew Products

WestWest Deptford (US)Deptford (US)

Macfarlan Smith Macfarlan Smith (UK)(UK)

New products in development

12 4 3 10 14

Pharmaceutical MaterialsPharmaceutical MaterialsProfit Growth OpportunitiesProfit Growth Opportunities

Market growth

Specialist opiates

Cross–selling

Share R&D, manufacturing processes

Fuel CellsFuel 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 2002New 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 SwindonMEA Factory at Swindon

MEA Factory at SwindonMEA Factory at Swindon

OutlookOutlook

Some impact of US slowdown and lower pgm prices

Continued growth in Catalysts & Chemicals despite weaker markets

Good prospects in Pharmaceutical Materials

Johnson Matthey