Preliminary Results for the year ended 31st March 2016

Robust performance in challenging markets; continued investment for future growth

Underlying (1) Underlying year on year change

actual constant rates (2) continuing (3)
Revenue £10,714m +7% +6% +7% £10,714m
Sales excluding precious metals (4) £3,177m +3% £3,177m
Profit before tax (PBT) £418.2m -5% -5% £386.3m
Earnings per share (EPS) 178.7p -1% 166.2p
Ordinary dividend per share 71.5p +5% 71.5p
Net debt / EBITDA (5) 1.1x -0.6x 1.1x
Lost time injury and illness rate (6) 0.37 -26% 0.37


  • Robust performance in challenging markets – on a continuing basis(3), sales were up 3% and underlying PBT was flat
  • Actions taken to reduce costs by around £34 million p.a. (£8 million benefited 2015/16)
    • Impairment and restructuring charges of £141 million, of which £38 million cash
    • Charges mainly relate to previously announced restructuring in Process Technologies and review of the Fuel Cells business
  • Ongoing investment to support medium term growth
    • R&D spend of £188 million (6% of sales) and capex of £257 million (1.8x depreciation)
  • Strong cash generation and balance sheet provide the resources for investment
    • Working capital days (ex pms) reduced to 56 (2014/15 66) and strong free cash flow of £589 million with cash flow conversion of 82%
    • Net debt (including post tax pension deficits) / EBITDA of 1.1 times
  • Disposal of Research Chemicals completed with profit on disposal of £130 million
  • ROIC at 17.3% remains well ahead of cost of capital
  • Special dividend of 150.0 pence paid in February 2016
  • Final dividend of 52.0 pence recommended, resulting in full year dividend up 5% at 71.5 pence, covered 2.5 times by underlying EPS, reflecting continued confidence in long term growth
  • 2016/17 performance expected to be ahead of 2015/16, in line with current market expectations


Divisional summary (actual rates, continuing basis(3))

  • Emission Control Technologies – strong year; sales up 7% and underlying operating profit up 15%
    • Strong growth in Europe driven by full implementation of Euro 6b legislation for light duty diesel vehicles and recovery in Western European truck production
    • Good demand in Asian light duty business, with growth in catalyst sales across all our major regions
    • Growth in North America supported by good sales of light duty catalysts
    • Lower demand for Class 8 trucks adversely impacted heavy duty diesel catalyst sales in second half
  • Process Technologies – difficult year; sales down 8% and underlying operating profit down 31%
    • Chemicals businesses down due to lower licensing income and slightly weaker catalyst sales
    • Steady catalyst sales in Oil and Gas businesses; Diagnostic Services adversely impacted by oil price
    • Planned restructuring completed in Q4; PT will benefit from lower cost base in 2016/17
  • Precious Metal Products – challenging year; sales down 8% and underlying operating profit 25% lower
    • Performance in Platinum group metal (Pgm) Refining and Recycling business adversely impacted as a result of a decline of ~25% in average pgm prices
    • Manufacturing businesses stable, broadly in line with last year
  • Fine Chemicals – steady progress; sales up 3% and underlying operating profit up 1%
    • Strong demand for catalysts and chiral technologies and steady sales of active pharmaceutical ingredients (APIs)
    • Performance adversely impacted by safety shutdown in the USA in the first half
  • New Businesses – good progress; sales up 73% and operating loss reduced by 19% to £17.9 million
    • Good growth in Battery Technologies' sales supported by last year's acquisitions in battery materials
    • Fuel Cells business restructuring in second half will reduce ongoing costs


Commenting on the results, Robert MacLeod, Chief Executive of Johnson Matthey said:

"Johnson Matthey has delivered a robust performance overall in a year where conditions have been particularly tough in some of our markets. Emission Control Technologies had another strong year and we have made good progress in New Businesses. The group's performance was adversely impacted by the challenging conditions in some of our other business areas and we have restructured our business; results in 2016/17 will benefit from those actions.

We continued to focus on health and safety and our lost time injury and illness rate reduced. However, this was overshadowed by a tragic accident in July 2015 when an employee at our Fine Chemicals' facility in Riverside, USA suffered fatal injuries. This incident has further reinforced our efforts to achieve a world class health and safety culture across Johnson Matthey.

Looking ahead to 2016/17, we expect performance to be ahead of 2015/16 and in line with current market expectations. Johnson Matthey remains well positioned in markets with strong growth drivers. Our strong cash generation and balance sheet provide the resources for investment, and we continue to increase R&D and capital expenditure to drive future growth. Supported by a clear purpose and strategy, Johnson Matthey will continue to deliver long term growth for our shareholders through the creation of value adding sustainable technologies." 


The results in detail

Full preliminary results are available to download from our Results Centre.



Sally Jones, Director, Investor Relations and Corporate Communications 
+44 20 7269 8407

David Allchurch, Tulchan Communications 
+44 20 7353 4200



  1. Before amortisation of acquired intangibles, major impairment and restructuring charges, profit or loss on disposal of businesses, significant tax rate changes and, where relevant, related tax effects.
  2. At constant rates (if 2014/15 results are converted at average exchange rates for 2015/16).
  3. 2014/15 and 2015/16 adjusted to exclude contribution of Gold and Silver Refining and Research Chemicals businesses.
  4. Sales excluding precious metals have been adjusted to include certain non pass through precious metal items.
  5. Net debt includes post tax pension deficits.
  6. Number of lost workday cases per 200,000 hours worked in a rolling year. 2014/15 restated to include lost time accidents declared / reclassified after the year end.