Summary Results

• Sales revenue up 22% to £7.5 billion as a result of good underlying volume growth and higher precious metal prices
• Sales excluding precious metals up 20% at £1,750 million with good organic growth in all three divisions
• Profit before tax and amortisation of acquired intangibles up 16% to £265.4 million
• Underlying earnings per share up 9% to 89.5 pence
• Total earnings per share 9% below last year at 88.5 pence. Last year's earnings included the profit on sale of Ceramics Division
• Dividend up 9% to 36.6 pence in line with underlying earnings growth

Business Overview

• Environmental Technologies Division's sales excluding precious metals up 27% to £1,140 million and operating profit before amortisation of acquired intangibles up 20% at £147.3 million
• Emission Control Technologies' (ECT's) sales excluding precious metals up 32% with strong growth in sales of heavy duty diesel (HDD) catalysts, diesel particulate filters (DPFs) and autocatalysts in Asia
• Argillon Group, which has leading technology for control of emissions of oxides of nitrogen (NOx), was acquired for €214 million in February 2008. Argillon contributed £11.4 million to sales and £2.9 million to operating profit (before amortisation of acquired intangibles) in the first two months of ownership
• New factories completed in South Korea, Russia and Royston, UK. Two further factories under construction in Macedonia and Pennsylvania, USA to manufacture diesel catalysts to meet upcoming legislation in October 2009 in Europe and 2010 in North America
• Process Technologies' sales excluding precious metals 10% up. High oil price supports future growth with good demand for catalysts and purification materials. Sales of catalysts and technology for methanol production continue to grow
• Precious Metal Products Division's revenue up 23% to £4.7 billion boosted by higher average prices for precious metals. Sales excluding precious metals up 6% to £307 million and operating profit up 20% to £102.1 million
• Trading conditions for platinum group metals (pgms) remain favourable. The price of platinum averaged $1,474/oz in 2007/08. High prices have increased demand for pgm recycling and the division has also benefited from continued strong growth in its manufacturing businesses
• Fine Chemicals & Catalysts Division's sales excluding precious metals up 13% to £303 million and operating profit 5% higher at £67.1 million (6% up at constant exchange rates). Sales growth was boosted by higher base metal prices, particularly nickel, used in catalysts sold into the division's end markets

Business Prospects

• ECT should continue to deliver double digit growth in sales and profits in 2008/09, despite some weakness in the US car market, with continued growth in DPFs in Europe and autocatalysts in Asia, together with growth in HDD catalysts in the final quarter. Process Technologies should also continue to benefit from high energy prices
• Precious Metal Products Division will benefit from the favourable conditions in the pgm markets. Fine Chemicals & Catalysts' growth in the coming year should be similar to 2007/08
• Overall, Johnson Matthey should achieve good growth in 2008/09 and future prospects are very encouraging

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

“Johnson Matthey produced excellent results in 2007/08 with double digit growth in sales and operating profit. We expect that the group will perform strongly again in 2008/09 despite concerns about the state of the world economy and the slowdown in the US. We are increasing our investment in both R&D and new production facilities to meet the growth in demand for new products which is being driven by global concerns about the environment and high energy prices.”

Review of Year Ended 31st March 2008
(This file requires Adobe Acrobat Reader)

Howard Lee
The HeadLand Consultancy
+44 (0)20 7367 5225

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