Preliminary Results for the year ended 31st March 2013

*before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses and, where relevant, related tax effects

2012/13 in Summary:

• Revenue down 11% to £10.7 billion
• Sales excluding precious metals (sales) flat at £2.7 billion
• Underlying profit before tax and underlying earnings per share reduced by 9% and 2% respectively
• Cash flow conversion of 93% (2011/12 78%)
• Balance sheet remains strong with net debt (including post tax pension deficits) / EBITDA of 1.7 times
• Return on invested capital (ROIC) 19.7%
• Final dividend of 41.5 pence recommended resulting in full year dividend up 4% at 57.0 pence
• Acquisitions of Axeon and Formox add to the group's portfolio

Business Overview

• Environmental Technologies Division had a steady year with sales 2% ahead and underlying operating profit 7% higher
  • Emission Control Technologies (ECT) impacted by weak European auto market but heavy duty diesel catalyst business continued to grow
  • Process Technologies' sales slightly ahead but operating profit increased significantly, supported by a good result from Davy Process Technology (DPT)

• Very disappointing year from Precious Metal Products Division, particularly its Services businesses, with sales 6% down and underlying operating profit 27% lower
  • Lower average precious metal prices, lower volumes and operational issues at the Salt Lake City refinery all contributed to the substantial reduction in profitability
  • As previously announced, loss of current contracts with Anglo American Platinum will impact from Q4 2013/14

• Underlying results from Fine Chemicals broadly in line with last year with sales down 3% but operating profit 2% ahead
  • API manufacturing business restructured – £14.2 million charge taken outside underlying profit

Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said:

 “Johnson Matthey had a challenging year, but nevertheless we remain very well positioned to grow our business over the medium and long term. After two very strong years, continued growth in Environmental Technologies Division in 2012/13 was more than offset by a poor performance from our Precious Metal Products Division. Although underlying earnings per share in the year were 2% lower than 2011/12, the board is recommending an increase in the full year dividend of 4% reflecting its confidence in the medium term prospects for the group.

2013/14 will be a year of transition as on 1st January 2014 new Euro VI legislation comes into force for heavy duty diesel vehicles in Europe and on the same date our new arrangements with Anglo Platinum will commence.

Overall, we expect that the group will make steady progress in 2013/14 notwithstanding the loss of revenue from Anglo Platinum. In the medium term, growth is expected to accelerate in 2014/15 and beyond, driven particularly by tighter vehicle emissions legislation and demand for Process Technologies' products, especially in China. We are confident that our long term market drivers will enable Johnson Matthey to deliver continued growth which will be further enhanced by our ongoing investment in R&D and new business development."

Enquiries:

Ian Godwin Director, IR and Corporate Communications 

020 7269 8410

Robert MacLeod, Group Finance Director 
020 7269 8484

Howard Lee, The HeadLand Consultancy 
020 7367 5225