Summary Results

• Sales excluding precious metals up 25% at £1,454 million
• Profit before tax and one-off items, including discontinued operations’ results, up 10% to £242.6 million
• Ceramics Division sold for £143.9 million on 28th February 2007, giving a profit on sale of £33.3 million after tax
• Total earnings per share up 37% to 96.9 pence. Before one-off items (which comprise the profit on sale of Ceramics Division and impairment costs in 2005/06) earnings per share up 12% to 81.2 pence
• Dividend up 12% to 33.6 pence in line with earnings growth

Divisional Performance

Operating Profit for the continuing businesses (before one-off items)

• Operating profit for the continuing businesses, before one-off items, up 18% to £252.4 million, despite adverse exchange translation of £6.4 million
• Catalysts up 11%. Environmental Catalysts and Technologies’ (ECT’s) sales were well ahead of last year with good growth in autocatalyst sales in Asia, increased sales of catalysed soot filters (CSFs) in Europe and the emergence of the new market for heavy duty diesel (HDD) catalysts in both Europe and North America. Process Catalysts and Technologies (PCT) also achieved good growth with strong sales of methanol catalysts and a good contribution from Davy Process Technology
• Precious Metal Products up 37% benefiting from buoyant trading conditions for platinum group metals, particularly in the second half of the year, and good growth in its manufacturing businesses
• Pharmaceutical Materials up 5% with a recovery in its US operations

Business Prospects

• ECT should generate good growth in sales and profits in 2007/08 with a full year of HDD catalyst sales, continued growth in CSFs and further expansion in Asia. New plants in South Korea, Russia and the UK will commence supply during the year
• Prospects for PCT are also very encouraging, driven by the high oil price and the need to make more efficient use of hydrocarbon feedstocks. In 2007/08 we will be investing in additional capacity in Clitheroe, UK to manufacture the latest generation of synthesis gas catalysts
• Outlook for platinum group metals demand remains good. However, following the very strong performance in 2006/07 we expect Precious Metal Products Division to achieve more modest growth in 2007/08
• Pharmaceutical Materials is expected to perform well in 2007/08 with steady growth across the division
• Following the sale of Ceramics Division the group’s gearing (debt / equity) has fallen to 34% at 31st March 2007. In 2007/08 we intend to continue to buy back shares and look for bolt-on acquisitions which will improve balance sheet efficiency

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

“Johnson Matthey performed very well last year. Sales excluding precious metals increased by 25% and underlying earnings per share were up 12%. We continue to invest in R&D and in new plants around the world to meet the increasing demand for our high technology products. Prospects for all our businesses remain very encouraging, particularly in catalysts where global concerns about pollution and climate change will continue to drive current and future sales of our autocatalyst and process catalyst products.”

Review Year Ended 31st March 2007 (html)

Review of Year Ended 31st March 2007
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Howard Lee
The HeadLand Consultancy
+44 (0)20 7367 5225

Laura Hickman
The HeadLand Consultancy
+44 (0)20 7367 5227