Paddleboard

Our strategy

JM’s competitive advantage is our world class science and technology. We use it to create long term value for our shareholders and a cleaner, healthier planet for everyone.

 

Our strategy

Sectors

Sustained growth from:

  • Market share gains (already secured) in Europe
  • Tighter legislation in Europe requiring higher value products
  • Tighter legislation in Asia (China and India)
  • Consistent growth in light duty catalyst market in North America
  • Operational efficiency activities that support margin and ROIC

Market leading growth from:

  • Focused investment in R&D to maintain and extend technology leadership
  • Outperforming in selected, high growth segments
  • Increased efficiency to enhance performance
  • Extending capabilities into adjacent markets, geographies and technologies

Break out growth from:

  • Enhancing our position as a technology partner of choice with innovator customers
  • Driving value from existing generics business
  • Commercialising our pipeline of new generic products

Break out growth in battery materials from:

  • Commercialising our leading eLNOTM high energy cathode material
  • Scale up through demo, pilot and full production scale; investment of more than £200 million from mid 2018
  • Continued investment in next generation, best in class high energy battery materials
  • Continuing to position other new businesses for growth
Groupwide enablers

Support strategic delivery and generate savings for reinvestment in the business

 

Science and technology:

  • Investment in world class science that delivers market leading positions

 

Rigorous resource allocation:

  • Targeting the highest growth opportunities that deliver the most attractive returns in areas where our inspiring science enhances life

 

Efficiency and excellence:

  • Common standards and processes, enabled by IT
  • Developing future talent
  • Improving working capital management
  • Savings from procurement
  • Optimising JM’s value share from commercial relationships

 

Creating the right culture and licence to operate:

  • Delivering our brand promise
  • No compromise on health and safety
  • ‘Doing the right thing’ without question
  • Engaged and enabled people, ready to play their part

 

What our strategy delivers

Our strategy directs investment choices across the group so that our people can translate our world class science and technology as efficiently as possible to solve our customers’ complex problems and tackle major global challenges: the need for clean air, improved healthcare and the most efficient use of our planet’s natural resources.

Our strategy will deliver sustained growth and value creation through:

  • Investment in science and technology which accelerates growth and creates leadership
  • Serving customers in growing, high margin, technology driven markets, aligned to global challenges and delivered through our four sectors
  • Operating with a relentless focus on efficiency and excellence; maximising synergies and driving standard processes and ways of working where it makes sense to do so
  • Attracting and retaining the best people into a culture that is true to our vision and that breeds success

To find out more, view the materials from our 2017 Capital Markets Day.

 

A new sustainable business framework to support value creation

With our science, understanding and vision, we believe we have much to contribute to a more sustainable future.

In March 2017 we came to the end of our Sustainability 2017 programme. Sustainability 2017 laid the foundations for our new brand: inspiring science, enhancing life; and our vision for a cleaner, healthier world. Our refreshed business strategy has stemmed from these.

In developing the next phase of our sustainable business framework, we recognised that the world had moved on. External stakeholder expectations had increased, and customers and investors are now looking increasingly for evidence of sustainable practices. Regulation has also increased in our field. And in the bottom line savings of £142 million that we achieved during Sustainability 2017, we knew that a new framework would once again provide business benefits.

We also considered the UN Sustainable Development Goals (UN SDGs) and identified six of the UN SDGs where we can make the biggest positive impact.

The outcome is a new sustainable business framework aligned to our brand, vision and strategy. Read more about how we're building a sustainable business.

How we create value

Knowhow and intellectual capital

JM’s competitive advantage is its science and technology. We use our industry-leading capabilities across our sectors. We own patents covering our science, technology and processes.

Financial

We invest for growth using equity from our shareholders, raised debt and cash flow delivered by our sectors.

Customer relationships

We draw on our deep relationships with customers to understand how best to apply our science to solve their problems.

Natural resources

We source raw materials responsibly and use them as efficiently as possible. We also recycle platinum group metals (pgms).

Manufacturing operations

We have a global network of manufacturing plants, application centres and laboratories.

People

Our 14,000 people bring the talent, expertise and innovative thinking needed to drive growth and efficiency in JM.

Sustainable business framework

Science

Our science has been established over many years. We invest in it and in our scientific talent. Our skill and knowledge is acknowledged across the scientific community and amongst customers.

We have a set of nine core science capabilities (see page 26) which we use across JM. They provide us with fundamental insights about materials, their design and then the control of their activity through chemical and functional manipulation.

Our competitive advantage is in combining knowledge of the fundamental science with commercial and scalable solutions, potentially customised for each and every customer.

This combination enables us to outperform in our target markets, and creates high barriers to entry.

Our customers choose us because of our technology.

Customers

Our science directs where we play. We apply it in technology driven markets and generate high margins from it. This drives high returns.

Our customers are mostly other industrial companies, operating in the transport, energy, chemicals and healthcare segments.

We work closely with them to develop solutions which enable them to bring their products to market faster, improve the performance of their products and reduce their environmental impact.

We provide them with functional components that help them create more sustainable products and solutions. We also provide specialist services such as the refining and recycling of pgms and process technology used to design chemical plants.

Collaboration and strong relationships with our customers are crucial in providing a high quality tailored service. Together, we put our inspiring science to work to enhance life.

Operations

We continue to improve our global standards and systems to enable us to operate every aspect of our business efficiently: from strategy to supply chain, from innovation to IT.

Our global manufacturing operations create highly specified physical products for our customers.

We manufacture efficiently and responsibly to drive economic and environmental performance and have programmes in place to optimise our manufacturing assets.

We invest in our manufacturing capacity to meet customers’ future demand and have the ability to flex our cost base if our markets slow.

We demand high returns from our investments, with a target of at least 20%, which drives continued improvement in operational efficiency.

People

Everyone in JM plays their part in taking ideas from the lab to full scale commercial success.

We hire the best people with the right skills and support them in an innovative culture that encourages them to develop and grow.

We are driven by values which means we always keep each other safe, work with clear intentions and respect, and do the right thing for our people and our planet.

They are supporting us as we are evolving to take decisions more quickly, to be more open-minded to new possibilities, to share more and stay confident through times of uncertainty.

Our values provide the strong foundation from which we are creating a cleaner, healthier world.

Our people are motivated by working for a company that is ‘making a difference’ and this is an important differentiator in attracting and retaining the very best.

The value we create