 |
Michael Miles
Chairman |
I
am pleased to report that 1999/2000 was a very good year for Johnson
Matthey with all three of its operating divisions contributing to
strong growth in profits. Excellent progress has continued to be
made towards our goal of enhancing shareholder value. Johnson Matthey’s
strong technology and market leadership positions are widely recognised
as providing a firm platform for continued growth as well as presenting
exciting opportunities for the development of new global businesses
such as fuel cells.
The strategy that we announced 18 months ago of refocusing the group
on its core activities where we have genuine leadership and a strong
market position has made good progress during the year.
The sale
of our Electronic Materials business to AlliedSignal Inc. was completed
during the first half.The year has seen continued
progress in the reshaping of the group with rationalisation of our
Colours & Coatings Division’s Tableware activities and the exit
from its non-core organic pigments businesses. At the same time
we have continued to invest in research and development, in new
technology and in new production facilities to ensure that we maintain
our leadership positions. It is gratifying to see that Johnson Matthey
is increasingly recognised as a leading global speciality chemicals
company with a strong franchise in catalysts, chemicals and precious
metals.
Fuel cells have been the centre of a great deal of interest over
the last year. Through its commitment to research and development
and strong relationships with the world’s leading developers of
fuel cell technology, Johnson Matthey is in a uniquely strong position
to benefit from the growth of new fuel cell industries. As the world
leader in catalysts and catalysed components for fuel cells the
advent of fuel cell engines for cars and fuel cell based micro combined
heat and power units for homes offer Johnson Matthey a major opportunity
for growth. The board is fully committed to supporting management
in growing this exciting new business. On pages 14 and 15 we have
a special feature on fuel cell technology and the role that Johnson
Matthey is playing in bringing fuel cell systems to market.
Board
The board of Johnson Matthey continues to pay particularly close
attention to the group’s future strategic direction and opportunities
for growth. We are fortunate to have the support of a strong team
of non-executive directors who bring a wealth of experience to the
board. I am grateful for their efforts and wise counsel over the
last year.
In July 1999 Mike Cleare retired from the board following the agreement
to sell our Electronic Materials business to AlliedSignal Inc. Mike
joined the board of Johnson Matthey in September 1995 following
a succession of senior management positions with the group in both
the United Kingdom and the United States. He headed Electronic Materials
Division from January 1997. On behalf of the board I wish Mike well
in his retirement.
In June this year we announced that George Wells would retire from
the board at the end of July 2000. George has been a valuable member
of our board since joining us in March 1998 and I should personally
like to thank him for his contribution.
People and the Community
People are Johnson Matthey’s major asset and the company is fortunate
to have an extremely dedicated and highly professional workforce.
On behalf of the board I would like to thank all our employees for
their hard work during the year.
At the end of April 2000 Dr George McGuire retired as Director of
Johnson Matthey’s Technology Centre after a distinguished 30 year
career with Johnson Matthey. I would like to take this opportunity
to thank George for his hard work and dedication and to wish him
all the best for his retirement.
The company’s future is embodied in its employees and I can not
stress highly enough the importance of developing the management
talent of tomorrow. This receives a great deal of attention throughout
the company and is acknowledged as a primary responsibility of today’s
management. Our Training and Development of People policy is set
out on page 24 of this annual report.
While Johnson Matthey is at the forefront of a number of important
environmentally beneficial technologies, such as emission control
catalysts and fuel cells, we also strive to ensure that all our
operations around the world meet and exceed our responsibilities
to the environment. We also seek to achieve the highest standards
of health and safety performance in all our operations. Our corporate
Environment, Health and Safety policies and information on our performance
in these areas are detailed on pages 20 and 21.
Our current Charity of the Year programme is in support of the National
Asthma Campaign. During the year we have also made donations to
the Royal London Society for the Blind, with whom we have a relationship
dating back over 160 years, and to the NSPCC in support of their
FULL STOP campaign.
Conclusion
The board is pleased with the progress that has been
made with implementing the strategy that we announced in November
1998. We believe that Johnson Matthey’s strong technology and market
positions in catalysts, fine chemicals and precious metals mean
that we are uniquely placed to achieve strong growth as the world
seeks to meet the environmental challenges of this new century.
Michael
Miles OBE
Chairman
