TIDMJMAT
RNS Number : 2777H
Johnson Matthey PLC
23 November 2022
Half year results for the
six months ended 30(th) September 2022
23(rd) November 2022
Catalysing the net zero transition to drive value creation
Strong foundations and increasing confidence in growth opportunities
-- Results in line with expectations
-- Transformation progressing across the group
-- Good progress on execution of strategy and on track with all
milestones
-- Significant increase in demand for sustainable technology to
address energy crisis and climate change
Reported results Underlying results (continuing)(1)(,)
(2)
---------------------------- --------------------------------------------
Half year Half year
ended ended
30(th) September 30(th) September
---------------------- ------- ----------
% change,
% % constant
2022 2021(2) change 2022 2021(2) change FX rates
------ -------------- ------- --------- -------- ------- -------- ------------- ------- ----------
Revenue GBPm 7,328 8,503 -14
Sales excluding
precious metals GBPm 2, 045 1,856 +10 +5
Operating profit GBPm 211 24 n/a 222 297 -25 -30
Profit / (loss)
before tax
(continuing) GBPm 188 (4) n/a 201 269 -25
Profit / (loss)
after tax
(continuing) GBPm 150 (24) n/a 161 226 -29
Basic earnings /
(loss) per share
(continuing) pence 82.0 (12.4) n/a 88.2 117.1 -25
Interim dividend
per share pence 22.0 22.0 -
---------------------- ------- --------- -------- ------- ------------- -------- ------- ----------
Underlying performance - continuing operations(1)(,) (2)(,) (3)
-- Sales of GBP2.0 billion, up 5%, with higher prices to partially
recover cost inflation, partly offset by lower average PGM prices
-- Underlying operating profit of GBP222 million, down 30%, reflecting
supply chain constraints in Clean Air, lower average PGM prices
and a lag in recovering cost inflation
-- Underlying earnings per share of 88.2p, down 25% due to lower
underlying operating profit
-- Free cash flow of GBP133 million, compared to GBP190 million
in the prior year largely reflecting lower underlying operating
profit and working capital movements
-- Strong balance sheet with net debt of GBP963 million; net debt
to EBITDA of 1.5 times
Reported results(2)
-- Revenue down 14%, driven by lower average PGM prices
-- Operating profit of GBP211 million, up materially, largely due
to the absence of a one-off impairment in the prior period relating
to Battery Materials
-- Profit before tax of GBP188 million, compared to a loss of GBP4
million in the prior period, reflecting higher operating profit
due to the absence of the Battery Materials impairment
-- Reported earnings per share (continuing) of 82.0 pence
-- Cash inflow from operating activities of GBP145 million (1H
2021/22: GBP412 million)
-- Interim dividend of 22.0 pence per share stable year-on-year
Liam Condon, Chief Executive, commented:
We are focused on effectively navigating the near-term macroeconomic
challenges affecting our business, including significant cost inflation
which we partially recovered in the half. We are confident of delivering
a stronger performance in the second half as we apply the enhanced
commercial focus and efficiencies that I outlined back in May.
Over the past six months, there have been further positive developments
in the transition to net zero. Legislation such as the Inflation
Reduction Act in the US, as well as the urgent need for sources
of clean energy in Europe, are driving demand for sustainable technology
solutions. We are in a strong position to benefit and enable our
customers to decarbonise and meet their net zero goals.
As we move to a faster paced, more customer focused culture, we
are already making good progress in achieving our strategic milestones.
You can expect to see further progress in the coming months and
I am more convinced than ever of the tremendous opportunities ahead
for Johnson Matthey.
Outlook for the year ending 31(st) March 2023
The external environment is challenging, with continued political
and economic uncertainty. We currently expect operating performance
for the full year to be within the consensus range . The outlook
is based upon current foreign exchange rates prevailing for the
rest of 2022/23 .
In Clean Air, supply chain disruption has eased through the first
half and, whilst there is still uncertainty, we expect that automotive
production volumes will improve further through the second half.
For the year 2022/23, external data currently suggests auto production
will be 4% higher than 2021/22, with volumes in the second half
expected to be 4% higher than the first half. There is a lag in
negotiating inflation claims with OEMs, which affected our first
half profits. We are focused on further recovery of cost inflation,
which we expect to benefit the second half, supported by benefits
from our transformation programme. With continued volume recovery,
we expect Clean Air operating performance in the second half to
be above the first half.
PGM Services performance is driven by precious metals prices, both
the absolute level and volatility, along with recycling volumes.
Whilst precious metals prices are high relative to historic levels,
they remain lower than the prior year. If they were to remain at
their current level for the rest of this year, we would expect
the adverse impact on full year operating performance to be c.GBP40
million compared with the prior year. At current metal prices,
and with increased efficiencies and further measures to recover
cost inflation, we expect PGM Services operating performance in
the second half to be stronger than the first.
In Catalyst Technologies, whilst cost inflation was not fully recovered
in the first half, we are focused on further increasing prices.
As reported previously, the profit impact of lost business with
Russia is mainly in Catalyst Technologies and in 2022/23 we expect
this to be c.GBP10 million. This is expected to be one-off and
compensated by new business from next year but will result in full
year operating performance for Catalyst Technologies being lower
than the prior year.
In Hydrogen Technologies we are investing to scale the business,
to capture the significant opportunities that the rapidly growing
hydrogen market presents. Consequently, we continue to expect a
larger operating loss in 2022/23 than the prior year.
Longer term, we are already seeing signs that geopolitical developments
are driving a significant acceleration towards a net zero carbon
economy, and we are investing to capture the growth opportunities
from our sustainable technology portfolio.
Dividend
The board approved an interim dividend of 22.0 pence per share,
maintained at the same level as the prior year (1H 2021/22: 22.0
pence per share). The interim dividend will be paid on
1(st) February 2023, with an ex-dividend date of 8(th) December
2022, to shareholders on the register on 9(th) December 2022.
Enquiries:
Investor Relations
Director of Investor Relations
Senior Investor Relations
Martin Dunwoodie Manager +44 20 7269 8241
Louise Curran Senior Investor Relations +44 20 7269 8235
Carla Fabiano Manager +44 20 7269 8004
Media
Group Corporate Affairs
Barney Wyld Director +44 20 7269 8001
Harry Cameron Tulchan Communications +44 7799 152148
Notes:
1. Underlying is before profit or loss on disposal of businesses,
gain or loss on significant legal proceedings together with associated
legal costs, amortisation of acquired intangibles, share of profits
or losses from non-strategic equity investments, major impairment
and restructuring charges and, where relevant, related tax effects.
For definitions and reconciliations of other non-GAAP measures,
see pages 47 to 52.
2. 1H 2021/22 is restated to reflect the group's new reporting structure
as well as the classification of Health as a discontinued operation
.
3. Unless otherwise stated, sales and operating profit commentary
refers to performance at constant exchange rates. Growth at constant
rates excludes the translation impact of foreign exchange movements,
with 1H 2021/22 results converted at 1H 2022/23 average rates.
In 1H 2022/23, the translational impact of exchange rates on
group sales and underlying operating profit was a benefit of
GBP97 million and GBP18 million respectively.
4. Revenue excluding sales of precious metals to customers and the
precious metal content of products sold to customers.
5. Vara consensus for full year group underlying operating profit
in 2022/23 was GBP487 million
(range: GBP458 million to GBP516 million) as at 21(st) November
2022. 2021/22 group underlying operating profit on an adjusted
basis was GBP553 million (adjusted for disposal of Health).
6. At current foreign exchange rates (GBP:US$ 1.16, GBP:EUR 1.15,
GBP:RMB 8.35) translational foreign exchange movements for the
year ending 31(st) March 2023 are expected to benefit underlying
operating profit by around c.GBP40 million, which is included
in the outlook on page 3.
7. As forecast by external consultants - IHS (November 2022).
8. Based on average precious metal prices in November 2022 (month
to date).
9. c.GBP40 million adverse impact represents a gross PGM price impact
before any foreign exchange movement.
A US$100 change in the average annual platinum, palladium and
rhodium metal prices each have an impact of approximately GBP1
million, GBP1.5 million and GBP1 million respectively on full
year underlying operating profit. This assumes no foreign exchange
movement.
Chief Executive update
In May we published our strategy to drive value creation centred
around a more focused product portfolio enabled by our core competencies.
These comprise our expertise in platinum group metal (PGM) chemistry,
catalysis, and process technology. We are executing our strategy
to exploit our market leading technologies, with a strengthened
commercial focus and a leaner, faster paced, more agile organisation.
Since outlining our strategy the macroeconomic environment has
deteriorated . Against this backdrop, cost inflation - particularly
energy, raw materials and labour - has been challenging and impacted
our first half results. We experienced c.GBP80 million cost inflation,
of which
c.GBP40 million was recovered in the period from customers. We
have been working hard to mitigate inflation through our sharpened
commercial focus and actions to increase efficiency. Whilst we
have made some early progress through the first half, there is
a lag in recovering costs and we expect further progress through
the second half. Our business has strong foundations, underpinned
by our strong balance sheet and, in combination with the actions
we are taking, we are confident we will navigate these cyclical
challenges.
Growth markets accelerating and opportunities more tangible
Recent geopolitical events are accelerating and expanding our key
growth markets, creating significant opportunities for our decarbonisation
solutions. In the US, the Inflation Reduction Act enacted in August
is the largest climate package in US history changing the landscape
for clean energy. The Act includes c.US$400 billion of incentives
that will reduce the cost of clean energy projects, increasing
investment and demand. This will benefit our Hydrogen Technologies
business in particular, but is also highly relevant for our Catalyst
Technologies and PGM Services businesses. Russia's invasion of
Ukraine and other macroeconomic pressures have highlighted threats
to energy security and the dependency on fossil fuels, driving
an urgent need to accelerate the energy transition. In China, we
are seeing significant growth in the demand for fuel cells, driven
by the country's ambition to reach net zero emissions.
Good progress on executing our strategy
We have made good progress against our strategic milestones set
out in May:
Customers:
-- In advanced talks to secure large scale strategic partnerships
in Hydrogen Technologies
-- Euro 7 business wins well on track. On track to GBP4bn+ cash(1)
for Clean Air
-- Won 3 additional large scale projects in Catalyst Technologies
(targeting >10 across Catalyst Technologies and Hydrogen Technologies
by 2023/24)
Investments:
-- Progressing PGM Services refining capacity expansion in China
-- Construction of Hydrogen Technologies CCM plant in the UK(2)
on time and on budget
-- Targeted capacity expansion (fuel cells catalyst, formaldehyde
catalyst) on track
-- Continuing to divest non-core assets - agreed divestment of Piezo
Products within Medical Device Components (Value Businesses)
People: Stronger link between performance and compensation
Sustainability:
-- On track for reduction in scope 1+2 CO(2) e (carbon dioxide equivalent)
emissions from a 2019/20 baseline (target c.10%)
-- Helped customers reduce CO(2) e emissions by 678,000 tonnes p.a.
through use of our products (target >1mt p.a.)
1. At least GBP4 billion of cash under our range of scenarios from
1(st) April 2021 to 31(st) March 2031. Cash target
pre-tax and post restructuring costs. 2. To expand total capacity
from 2GW to 5GW.
Customers: winning new business to drive growth
1.
Clean Air - We are continuing to develop world leading catalysts
to support our customers as tighter emission regulations come into
force across the world. Earlier this month the EU Commission submitted
its Euro 7 proposal to the European Parliament. It proposes tighter
emission regulations, particularly in heavy duty, while the use
of wider real world driving conditions will also benefit light
duty diesel and gasoline. We expect these emission standards to
be implemented from 2025 for light duty and 2027 for heavy duty,
which will drive an uplift in value for our emission control catalysts.
We are winning business linked to Euro 7 and equivalent legislation
globally. We are well on track with our targeted Euro 7 business,
including securing all of Mercedes Benz's light duty diesel business
in Europe. We remain on track to deliver our cash generation target
of at least GBP4 billion to 2030/31.
Catalyst Technologies - Our Catalyst Technologies business is
strengthening its focus on the syngas value chain, growing the
existing business alongside newer opportunities in low carbon hydrogen,
sustainable fuels and low carbon solutions. These growth opportunities
will transform the scale of our business.
In these new growth areas, we recently secured three project wins
in North America which are expected to generate sales of c.GBP75
million over five years, subject to project completion. The projects
include the first large scale low carbon hydrogen project in North
America, with our technology enabling the capture of over 95% of
the produced carbon. We also won two sustainable fuels projects.
These new business wins are in the context of Catalyst Technologies
sales of c.GBP450 million in 2021/22 and a pipeline of more than
100 projects in new growth markets.
PGM Services - In October, we signed our first fuel cell recycling
contract in China with Unilia, one of the world's leading providers
of fuel cell stack technology, to refine and recycle the PGM content
from Unilia's automotive fuel cells.
Hydrogen Technologies - In Hydrogen Technologies we aim to be
the market leader in high value performance components for fuel
cells, and PEM (proton exchange membrane) and AEM (anion exchange
membrane) electrolysers, creating very significant growth in the
medium-longer term. We have strong competitive advantage and long-standing
experience. Our customers have told us they value our technology
leadership and PGM expertise, particularly our ability to access,
supply and recycle these critical metals needed in our products.
We also have existing manufacturing capacity today and, underpinned
by our strong balance sheet, we have plans to scale quickly to
meet increasing customer demand. This makes us a partner of choice,
and we are in advanced talks to secure strategic partnerships and
expect to announce further progress in the coming months.
In August we signed a Memorandum of Understanding (MoU) with Sinopec
Capital, the largest oil and petrochemical products supplier and
second largest oil and gas producer in China. The agreement aims
to explore joint possibilities across low carbon hydrogen, electrolysers,
fuel cells, other decarbonisation technologies and a circular economy
in China.
Investments: scaling to capture future growth
2.
We are committed to investing for growth and generating attractive
returns. As part of our plans to invest GBP1 billion in capital
expenditure over the next three years to 2024/25, we announced
in July an GBP80 million gigafactory in the UK to scale up the
manufacture of hydrogen fuel cell components. This investment,
which is backed by the UK government, is
customer-backed and will have 3GW capacity. The plant is currently
on time and on budget, and we expect to commence production in
the first half of calendar 2024. Our investment supports our target
of generating more than GBP200 million in sales in Hydrogen Technologies
by the end of 2024/25.
In PGM Services, our refineries need significant investment which
will set them up for decades of operation and substantial cash
generation. This investment will increase the resilience, efficiency
and long-term sustainability of our assets and allow us to maintain
our competitive advantage. We are investing in our refining capacity
in China to build a full refinery offering, ensuring we are well
positioned as the market evolves. We expect our capacity expansion
in China to be operational by the end of 2022/23. We are also investing
in the UK to upgrade our refining assets. Alongside this, we are
expanding our fuel cells catalyst capacity to support our Hydrogen
Technologies business as it scales up.
To further simplify our portfolio, we are continuing to divest
non-core assets. Today, we announce the agreement to sell Piezo
Products, part of Medical Device Components within Value Businesses.
The business will be sold to Hoerbiger with completion expected
by the end of 2022/23. In addition, following our announcement
to exit Battery Materials last year we have taken the decision
to cease work on battery materials recycling.
People
3.
In line with the pillars of our strategy - focus, simplify, execute
- we are developing a stronger performance culture that is disciplined
in the execution of our strategy and delivers consistent results.
The successful delivery of our strategy depends heavily on our
talented people and we are proud of their commitment to JM and
our ambitions.
We have continued to focus our portfolio and alongside this we
are reducing complexity across the organisation, from which we
are targeting at least GBP150 million in annualised cost savings
by 2024/25. Associated costs to deliver the programme are around
GBP100 million, all of which are cash. As part of our transformation,
we are finalising our target operating model and streamlining our
group functions. We are also reducing management layers, targeting
a c.15% reduction in senior management headcount. In combination
with other measures, we expect to deliver c.GBP35 million of savings
in 2022/23.
As we strive for better execution, we are strengthening performance
management and incentivisation across the organisation with appropriate
evaluation, compensation and grading systems. In parallel, we are
also keeping close track of our employee engagement scores.
4. Sustainability
Sustainability is an integral part of JM and embedded within our
strategy. We are committed to achieving net zero by 2040, underpinned
by a series of 2030 targets categorised under three key pillars:
1) products and services, 2) operations and 3) people.
Within operations, we aim to reduce our Scope 1 and 2 GHG emissions
by 33% by 2030, against a 2019/20 baseline. As part of our strategy
update in May, we committed to a 10% reduction in our Scope 1 and
2 GHG emissions by the end of 2023/24 and we are on track. We are
also helping customers reduce their own GHG emissions by more than
1 million tonnes per annum through the use of our products by the
end of 2023/24. As at 30(th) September, our customers have avoided
678,000 tonnes p.a. of GHG emissions using our products and solutions.
Summary of underlying operating results from continuing operations
Unless otherwise stated, commentary refers to performance at constant
rates(1). Percentage changes in the tables are calculated on rounded
numbers.
Sales Half year ended % change % change,
(GBP million) 30(th) September constant
FX rates
----------------------- -------- ---------
2022 2021(2)
----------------------- -------- --------- -------- ---------
Clean Air 1,278 1,196 +7 +2
PGM Services 282 300 -6 -11
Catalyst Technologies 275 223 +23 +18
Hydrogen Technologies 23 10 +130 +130
Value Businesses(3)(,) 235 181 +30 +26
Eliminations (48) (54)
----------------------- -------- --------- -------- ---------
Sales (continuing) 2,045 1,856 +10 +5
----------------------- -------- --------- -------- ---------
Underlying operating profit Half year ended % change % change,
(GBP million) 30(th) September constant
FX rates
---------------------------- -------- ---------
2022 2021(2)
---------------------------- ------- ---------- -------- ---------
Clean Air 108 150 -28 -32
PGM Services 125 167 -25 -29
Catalyst Technologies 21 30 -30 -32
Hydrogen Technologies (24) (12) n/a n/a
Value Businesses(3)(,) 21 1 n/a n/a
Corporate (29) (39)
---------------------------- ------- ---------- -------- ---------
Underlying operating profit
(continuing) 222 297 -25 -30
---------------------------- ------- ---------- -------- ---------
Reconciliation of underlying operating profit Half year ended
to operating profit 30(th) September
(GBP million)
----------------------------------------------
2022 2021(2)
---------------------------------------------- ------- ----------
Underlying operating profit (continuing) 222 297
Amortisation of acquired intangibles (2) (3)
Major impairment and restructuring charges (9) (314)
Gain on significant legal proceedings - 44
Operating profit (continuing) 211 24
---------------------------------------------- ------- ----------
Notes:
1. Growth at constant rates excludes the translation impact of foreign
exchange movements, with 1H 2021/22 results converted at 1H 2022/23
average rates. In 1H 2022/23, the translational impact of exchange
rates on group sales and underlying operating profit was a benefit
of GBP97 million and GBP18 million respectively.
2. 1H 2021/22 is restated to reflect the group's new reporting structure
as well as the classification of Health as a discontinued operation
.
3. Includes Battery Systems, Medical Device Components, Diagnostic
Services, Battery Materials (divestment agreed) and Advanced
Glass Technologies (divestment completed).
4. Sales relating to divestments: Advanced Glass Technologies (1H
2021/22: GBP37 million, 1H 2022/23: GBP7 million) and Battery
Materials (1H 2021/22: GBP6 million, 1H 2022/23: GBP13 million).
5. Operating profit or loss related to divestments: Advanced Glass
Technologies (1H 2021/22: GBP10 million,
1H 2022/23: nil) and Battery Materials (1H 2021/22: -GBP17 million,
1H 2022/23: nil).
6. For further detail on these items please see page 17.
Operating results by sector
Clean Air
Sales slightly up. Operating profit impacted by partial recovery
of cost inflation
-- Sales were up 2% with better pricing offsetting a marginal decline
in volumes, which were impacted by supply chain constraints mainly
due to COVID lockdowns in China, the ongoing semi-conductor chip
shortage and disruption from the war in Ukraine.
-- Experienced a quarter-on-quarter improvement through the first
half
-- Underlying operating profit decreased 32% and margins declined
by 4 percentage points primarily reflecting increased input costs
(principally energy) which were only partially recovered in the
half
% change % change,
Half year ended constant FX
30(th) September rates
-------- ------------
2022 2021
-------- ------------
GBP million GBP million
----------- ----------- -------- ------------
Sales
Light duty diesel 515 498 +3 +1
Light duty gasoline 299 270 +11 +3
Heavy duty diesel 464 428 +8 +1
Total sales 1,278 1,196 +7 +2
Underlying operating profit 108 150 -28 -32
Underlying margin 8.5% 12.5%
Reported operating profit 109 149
---------------------------- ----------- ----------- -------- ------------
Clean Air provides catalysts for emission control after-treatment
systems used in light and heavy duty vehicles powered by internal
combustion engines.
Sales were up 2%, with better pricing offsetting a decline in volumes.
Volumes were marginally lower reflecting supply chain disruption
mainly due to COVID lockdowns in China which impacted heavy duty
production, whilst auto production was constrained by semiconductor
chip shortages and disruption from the war in Ukraine. These disruptions
eased through the period, and we experienced a quarter-on-quarter
improvement.
Light duty catalysts - diesel and gasoline
Light duty diesel
In light duty diesel sales were broadly flat, in line with the
overall market. In the Americas we benefited from both a strong
underlying market and good customer performance. This was offset
by a decline in Europe, which represents around 60% of our total
light duty diesel sales. We experienced lower platform performance
in this region due to semi-conductor chip supply constraints, as
some automotive OEMs prioritised commercial vehicles over the passenger
car platforms that we serve.
Light duty gasoline
Sales of light duty gasoline were up 3% in the period, underperforming
the overall global market. Our growth was driven by a stronger
market in the Americas as well as good growth in Asia partly following
COVID lockdowns in the prior year in Malaysia. In Europe, sales
were broadly flat held back by previous platform losses in the
region.
Heavy duty diesel catalysts
Heavy duty diesel sales were up 1%, strongly outperforming the
global market. We saw good performance in Europe and America offset
by a decline in Asia. In Europe, there was strong market growth
due to pent up demand and we outperformed the market due to our
customers' good platform performance. In the Americas, heavy duty
sales continue to benefit from the cyclical recovery in the US
Class 8 truck cycle. Sales in Asia were materially down, due to
lower vehicle production in China as a result of COVID lockdowns,
especially during the first quarter.
Underlying operating profit
Underlying operating profit declined 32% to GBP108 million and
margins decreased to 8.5%. Whilst the business benefited from better
pricing and efficiency savings, it was impacted by significant
cost inflation (principally energy) which was not fully recovered
in the period. There is a lag in negotiating inflation claims with
automotive OEMs resulting in Clean Air's first half profit and
margin being significantly below last year. We are focused on further
recovery of cost inflation, which we expect to benefit the second
half, alongside benefits from our transformation programme.
On track to deliver at least GBP4 billion of cash in the decade
to 2030/31
We are on track to deliver on our cash generation target of at
least GBP4 billion by 2030/31(1), having delivered GBP800 million
in the first year of this guidance (2021/22). We expect lower cashflow
this year versus last, which benefited from a working capital unwind
due to COVID lockdowns in China as well as metal price tailwinds.
Notes:
1. At least GBP4 billion of cash under our range of scenarios from
1(st) April 2021 to 31(st) March 2031. Cash target
pre-tax and post restructuring costs.
PGM Services
Performance impacted by lower average PGM prices and reduced refinery
volumes
-- Sales performance reflects lower average PGM prices and reduced
refinery volumes due to lower auto scrap levels as a result of
a buoyant used car market
-- Underlying operating profit was down driven by lower average
PGM prices and reduced refinery volumes, as well as increased
energy costs
% change % change,
Half year ended constant FX
30(th) September rates
2022 2021
GBP million GBP million
----------- -----------
Sales
PGM Services 282 300 -6 -11
Underlying operating profit 125 167 -25 -29
Underlying margin 44.3% 55.7%
Reported operating profit 125 167
----------------------------- ----------- ----------- --------- ------------
PGM Services is the world's largest secondary recycler of platinum
group metals (PGMs). This business has an important role in enabling
the energy transition through providing circular solutions as demand
for scarce critical materials increases. PGM Services provides
a strategic service to the group, supporting Clean Air, Catalyst
Technologies and Hydrogen Technologies with security of metal supply
in a volatile market, and manufactures value added PGM products
In PGM Services, sales declined 11% against a strong prior period.
This was primarily due to lower average PGM prices, particularly
rhodium where the average price declined c.30% compared to the
same period last year. In our refineries, intake volumes were down
because of lower auto scrap levels resulting from a buoyant used
car market. Our metals trading service performed well although
sales in the half were lower due to reduced market volatility.
PGM Services' product sales were down, primarily due to phasing
of customer orders and the COVID lockdown in China.
Underlying operating profit
Underlying operating profit declined 29% impacted by lower average
PGM prices
(c.GBP30 million impact(1)) and reduced refining volumes, as well
as increased energy costs.
Notes:
1. Gross PGM price impact was c.GBP30 million, which was partly
offset by foreign exchange benefits. Foreign exchange benefit
reflects the pricing of PGMs in US dollars.
Catalyst Technologies
High growth in sales but cost inflation impacted profits
-- Sales up 18% driven by growth in catalyst refills and licensing
income
-- Strong period for licensing, with 7 new licences won, 2 of which
are within sustainable solutions. Secured additional licence
win in sustainable fuels in November.
-- Underlying operating profit declined 32%, impacted by the loss
of business in Russia and cost inflation, which was only partially
recovered in the period
% change % change,
Half year ended constant FX
30(th) September rates
2022 2021
GBP million GBP million
----------- -----------
Sales
Catalyst Technologies 275 223 +23 +18
Underlying operating profit 21 30 -30 -32
Underlying margin 7.6% 13.5%
Reported operating profit 17 72
----------------------------- ----------- ----------- --------- ------------
Catalyst Technologies is focused on enabling the decarbonisation
of chemical and fuels value chains and we have leading positions
in syngas: methanol, ammonia, hydrogen and formaldehyde. Catalyst
Technologies has three key segments: industrial and consumer, traditional
fuels and sustainable solutions that help catalyse the transition
to net zero. Our revenue streams comprise licensing and engineering
income, first fill and refill catalysts.
Industrial and Consumer: strong growth in refill catalysts and
licensing
Industrial and consumer includes our methanol, ammonia and formaldehyde
offerings as well as the majority of our licensing business.
We experienced double digit sales growth, mainly driven by catalyst
refills and licensing. Refills grew supported by both higher volumes
and pricing in response to cost inflation. Ammonia was weaker,
reflecting lower demand due to higher natural gas prices. This
was a strong half for licensing. We continue to benefit from our
leading technologies with good growth in income and five additional
licences won in the segment.
Following the ongoing war in Ukraine, we exited our activities
in Russia resulting in the loss of catalyst sales and higher margin
licensing income in the region.
Traditional fuels: good growth in gas purification
Traditional fuels includes our refining additives, hydrogen and
natural gas purification offerings. Growth in this segment was
driven by natural gas purification. There was strong demand across
all regions supported by higher natural gas prices.
Sustainable solutions: growing pipeline
We are unlocking new, growth markets with our technology in low
carbon hydrogen, sustainable fuels and low carbon solutions. In
the first half we won two licences which include the first large
scale low carbon hydrogen licence granted in North America and
a commercial scale sustaina ble fuel project also in North America.
In addition, we secured a further sustainable fuel project win
in November with Strategic Biofuels.
Underlying operating profit
Underlying operating profit declined 32% to GBP21 million and the
margin contracted
5.9 percentage points. This was impacted by the loss of business
in Russia of c.GBP5 million and a lag in pricing to recover cost
inflation.
Hydrogen Technologies
Strong sales growth and continued investment to meet customer demand
-- Sales more than doubled driven by higher commercial production
for new and existing customers in fuel cells, early sales in
electrolysers and increased volumes as manufacturing constraints
eased
-- Underlying operating loss reflects the continued investment in
scale up, customer trials and business development, partly offset
by benefits from increased sales volumes
Half year ended % change % change, constant FX rates
30(th) September
2022 2021
GBP million GBP million
Sales
Hydrogen Technologies 23 10 +130 +130
Underlying operating loss (24) (12) n/a n/a
Underlying margin n/a n/a
Reported operating loss (24) (12)
-------------------------- ----------- ----------- -------- ---------------------------
In Hydrogen Technologies, we provide catalyst coated membranes
that are a critical component of fuel cells and electrolysers.
In Hydrogen Technologies, sales in the half more than doubled to
GBP23 million primarily driven by growth in fuel cells where we
delivered higher commercial volumes for new and existing fuel cell
customers. In electrolysers, we are commercialising new products
and generated early sales from samples and pilot projects through
testing of key components with leading electrolyser manufacturers.
Sales also benefited from higher manufacturing output, as constraints
eased following the greater use of capacity in the prior period
to qualify new customer products.
As we focus on scale up, work is ongoing to expand our manufacturing
capacity in the UK. In the UK, construction of our 3GW plant in
Royston is on time and on budget with production expected to commence
in the first half of calendar year 2024. This investment supports
our target of more than GBP200 million sales in Hydrogen Technologies
by the end of 2024/25.
Underlying operating loss
Underlying operating loss of GBP24 million primarily reflects increased
investment in scale up, customer trials and business development,
partly offset by benefits from increased sales volumes.
Value Businesses
Strong sales and profit growth - driving value from non-core business
-- Strong sales and profit growth driven by good business performance
from better underlying activity, and actions taken to improve
performance and drive value
-- Agreed sale of Piezo Products, part of Medical Device Components,
with completion expected by the end of 2022/23
Half year ended % change % change, constant FX rates
30(th) September
2022 2021
GBP million GBP million
Sales
Value Businesses(1) 235 181 +30 +26
Underlying operating profit(2) 21 1 n/a n/a
Underlying margin 8.9% 0.6%
Reported operating profit / (loss) 15 (313)
----------------------------------- ----------- ----------- -------- ---------------------------
Value Businesses is managed to drive shareholder value from activities
considered to be
non-core to JM, and comprises Battery Systems, Medical Device
Components and Diagnostic Services. Our reported financial results
in the prior year also include Battery Materials (divestment agreed)
and Advanced Glass Technologies (divestment completed).
Overall, sales in Value Businesses were up 26% in the period. Excluding
the impact of Advanced Glass Technologies and Battery Materials,
sales were up 52%. We saw strong sales performance in Battery Systems
driven by e-bike applications largely due to increased volumes
and sales of higher value products following significant project
wins. Medical Device Components also performed well, driven by
project wins as well as higher effective production capacity following
investments to upgrade assets and drive efficiency. Diagnostic
Services continued to benefit from a recovery in demand as COVID-related
travel disruption eased and a higher oil price drove increased
customer activity.
Underlying operating profit
Underlying operating profit of GBP21 million, an improvement of
GBP20 million on the prior year, reflects good business performance
from better underlying activity, and actions taken to improve performance
and drive value.
Excluding the results of Advanced Glass Technologies and Battery
Materials from the prior year, underlying operating profit was
GBP21 million(2), an improvement of GBP13 million on a like-for-like
basis.
Corporate
Corporate costs were GBP29 million, a decrease of GBP10 million
from the prior period, largely reflecting lower pension charges
as well as some functional efficiencies.
Notes:
1. Sales relating to divestments: Advanced Glass Technologies (1H
2021/22: GBP37 million, 1H 2022/23: GBP7 million) and Battery
Materials (1H 2021/22: GBP6 million, 1H 2022/23: GBP13 million).
2. Operating profit or loss related to divestments: Advanced Glass
Technologies (1H 2021/22: GBP10 million,
1H 2022/23: nil) and Battery Materials (1H 2021/22: -GBP17 million,
1H 2022/23: nil).
Financial review - continuing operations
Research and development (R&D)
R&D spend was GBP106 million in the half. This was broadly in line
with the prior year spend of GBP103 million and represents c.5%
of sales excluding precious metals. As we simplify our portfolio,
we have re-focused spend to support our growth areas such as Hydrogen
Technologies.
Foreign exchange
The calculation of growth at constant rates excludes the impact
of foreign exchange movements arising from the translation of overseas
subsidiaries' profit into sterling. The group does not hedge the
impact of translation effects on the income statement. The principal
overseas currencies, which represented 76% of the non-sterling
denominated underlying operating profit in the half year ended
30(th) September 2022, were:
Share of 1H 2022/23 Average exchange % change
non-sterling denominated rate
underlying operating Half year ended
profit 30(th) September
------------------------- --------
2022 2021
----------------- ------------------------- --------- -------- --------
US dollar 34% 1.21 1.39 -12%
Euro 9% 1.17 1.16 1%
Chinese renminbi 34% 8.18 8.95 -9%
----------------- ------------------------- --------- -------- --------
For the half, the impact of exchange rates increased sales by GBP97
million and underlying operating profit by GBP18 million.
If current exchange rates (GBP:US$ 1.16, GBP:EUR 1.15, GBP:RMB
8.35) are maintained throughout the year ending 31(st) March 2023,
foreign currency translation will have a positive impact of approximately
c.GBP40 million on underlying operating profit. A one cent change
in the average US dollar and euro exchange rates and a ten fen
change in the average rate of the Chinese renminbi each have an
impact of approximately GBP1 million on full year underlying operating
profit.
Efficiency savings
We have now commenced our new group transformation programme as
part of which we expect to deliver further efficiencies of at least
GBP150 million by 2024/25. Associated costs to deliver the programme
are around GBP100 million, all of which are cash. In 2022/23, we
expect to deliver c.GBP35 million of savings.
Items outside underlying operating profit
Non-underlying (charge) / income As at As at
(GBP million) 30(th) September 30(th) September
2022 2021
-------------------------------------- ----------------- -------------------
Amortisation of acquired intangibles (2) (3)
Major impairments and restructuring (9) (314)
Gain on significant legal proceedings - 44
Total (11) (273)
-------------------------------------- ----------------- -------------------
Major impairment and restructuring costs
The group incurred GBP5 million in respect of the transformation
initiatives announced in May 2022, largely comprising of redundancy
costs, and a further GBP4 million for other business exit related
costs.
In the prior period, the group incurred impairment charges of GBP314
million in relation to the group's decision to pursue the sale
of all or parts of Battery Materials, the charge was based on our
estimate of the recoverable amount at that time. The process to
dispose of the remaining assets in Battery Materials is ongoing.
Finance charges
Net finance charges in the period amounted to GBP21 million, down
from GBP28 million in the first half of 2021/22. This reflects
higher interest income, a lower average cost of borrowing and reduced
metal leases during the period.
Taxation
The tax charge on underlying profit before tax for the half year
ended 30(th) September 2022 was GBP40 million, an effective underlying
tax rate of 19.9%, up from 16.0% in the first half of 2021/22.
The effective tax rate on reported profit for the half year ended
30(th) September 2022 was 20.3%. This represents a tax charge of
GBP38 million, compared with GBP20 million in the prior period,
largely reduced because of the tax effect of impairments to the
Battery Materials business.
We currently expect the effective tax rate on underlying profit
for the year ending 31(st) March 2023 to be around 19%.
Post-employment benefits
IFRS - accounting basis
At 30(th) September 2022, the group's net post-employment benefit
position, was a surplus of GBP172 million.
The cost of providing post-employment benefits in the period was
GBP16 million, down from
GBP24 million in the same period last year.
Capital expenditure
Capital expenditure was GBP130 million in the half, 1.4 times depreciation
and amortisation (excluding amortisation of acquired intangibles).
In the period, key projects included:
-- Hydrogen Technologies - investing to increase manufacturing
capacity in the UK
-- PGM Services - investing in the resilience, efficiency and long-term
sustainability of our refinery assets
Strong balance sheet
Net debt as at 30(th) September 2022 was GBP963 million, an increase
from GBP856 million at 31(st) March 2022 and GBP691 million at
30(th) September 2021. Net debt is GBP32 million higher at
GBP995 million when post tax pension deficits are included. The
group's net debt (including post tax pension deficits) to EBITDA
was 1.5 times (30(th) September 2021: 0.9 times), in line with
our target range of 1.5 to 2.0 times.
We use short-term metal leases as part of our mix of funding for
working capital, which are outside the scope of IFRS 16 as they
qualify as short-term leases. Precious metal leases amounted to
GBP129 million as at 30(th) September 2022 (31(st) March 2022:
GBP140 million, 30(th) September 2021: GBP223 million).
Free cash flow and working capital
Free cash flow was GBP133 million in the half, compared to GBP190
million in the prior period, largely reflecting lower underlying
operating profit, increased working capital and the absence of
a legal settlement received in the prior year. This was partly
offset by proceeds from disposals.
Excluding precious metal, average working capital days to 30(th)
September 2022 increased to 35 days compared to 30 days to 30(th)
September 2021.
Going concern
The group maintains a strong balance sheet with around GBP1.7 billion
of available cash and undrawn committed facilities. Cash generation
was positive during the period with free cash flow of GBP133 million.
Net debt increased since 31(st) March 2022 to GBP963 million primarily
due to unfavourable foreign exchange retranslation impacts driven
by a weaker pound sterling. The directors have reviewed a range
of scenario forecasts for the group and have reasonable expectation
that there are no material uncertainties that cast doubt about
the group's ability to continue operating for at least twelve months
from the date of approving these half-yearly accounts. In arriving
at this view, the base case scenario was stress tested to a severe
but plausible downside case which assumes lower demand across our
markets to account for further ongoing disruptions and a deep recession.
Additionally, the group considered scenarios including the impact
from metal price volatility, higher inflation, energy blackout
impacts and increases in the amount of metal that we would have
to hold. Under all scenarios, the group has sufficient headroom
against committed facilities and key financial covenants are not
in breach during the going concern period. The directors are therefore
of the opinion that the group has adequate resources to fund its
operations for the period of twelve months following the date of
this announcement and so determine that it is appropriate to prepare
the accounts on a going concern basis.
Risks and uncertainties
JM's principal risk landscape has been updated to reflect our refreshed
strategy and the challenges we are facing within the environment
in which we operate. Two new risks (2 and 3 below) have been added,
highlighting the impact of the geopolitical risks and the level
of reliance placed on capital execution to deliver growth expectations.
Three risks have been removed from our principal risks due to the
progress made in managing these risks to satisfactory levels (namely
intellectual property, ethics and compliance, and customer contract
liability) and will continue to be monitored as part of business-as-usual
processes.
JM continues to make improvements to its risk management approach
and insights used to support various business decisions.
1. Commoditisation of sustainable technology - Failure to correctly
anticipate market trends driving commoditisation of sustainable
technology. With shifts being slower or faster than anticipated,
we may fail to make the right and timely decision to respond to
these shifts. This risk, combined with a failure to identify other
new markets relevant for JM, may adversely impact revenue, cash
flow and profitability, including our position as technology and
cost leader.
2. Lack of preparedness to respond to specific geopolitical events
impacting JM's operations - Due to the nature of JM's global footprint,
there is a risk that we may face disruption in operations, supply
chain and/or customer markets due to geopolitical events such as
conflicts, trade disputes, sanctions, pandemics, inflation and
economic recession in specific countries or regions where we operate
or where our supply chains are reliant.
3. Inefficient delivery of strategic capex - Inability to meet
operational growth expectations due to inefficient execution of
capital investment projects, driven mainly by lack of specialist
resources and failures in change management.
4. Development and/or production of non-competitive products -
Inability to meet customers' evolving needs, at least as effectively
and profitably as our competitors, could reduce our brand value.
Performance failure or quality defects could harm consumers or
result in liability claims, which could lead to loss of future
business and/or our licence to operate as well as reputational
damage.
5. A significant work related EHS incident Failure to operate
safely, resulting in injury or breach to applicable laws/regulations,
which could lead to negative effects on our people, our reputation
and/or the environment. This could also mean the loss of production
time as well as attracting negative interest from the media and
regulators, leading to significant fines and penalties.
6. Disruption to inbound (non-platinum group metals) goods or
services As a manufacturing business, we are dependent on global
suppliers to provide key resources and services. Given the types
of products, there are limited suppliers from which we can source
certain critical raw materials. If there was a significant disruption
in their supply, we would be unable to manufacture our products
and satisfy customer demand. There is also a growing risk regarding
energy, and we are not immune to the risk of energy shortages in
the geographies in which we operate, which could impact gas or
electricity supplies to our sites and indirectly through our suppliers.
7. Inability to attract and or retain talent - As a result of
the continued uncertain macroeconomic environment, with ongoing
workforce disruption and changing workforce dynamics in light of
COVID, there is a risk that we may not attract and/or retain the
critical skills and capabilities which could adversely impact our
ability to deliver our strategic objectives.
8. Significant disruption to platinum group metals value chain
- There is a risk that we have insufficient metal available for
our manufacturing businesses and customer metal commitments. Metal
price volatility affects how much our trading business earns. Our
refining business earnings also depend on metal prices; a fall
in these prices reduces revenue and operating profit. In addition,
a failure of our security management systems may result in a loss
of or theft of precious metal, which could lead to financial loss
and / or failure to satisfy our customers. This could reduce customer
confidence or result in legal action.
9. Failure in one or more of our critical operational assets -
A failure in a critical asset at our sites may have a material
effect on our supply chain, performance, share value and reputation.
Also, more frequent extreme weather events and natural disasters
may disrupt our operations and increase our costs
10. Unsuccessful delivery of key business transformation programmes
- If we fail to deliver key business changes, this will damage
our ability to effectively execute our strategy. The expected benefits
of the transformation programme include long-term operating profit
growth, reduced costs, efficiencies while moving to a high performance
business culture.
11. Business failure through cyber-attack or other IT incidents
- The occurrence of a significant disruption to our IT systems
or a major cyber/data security incident may adversely affect our
operations, financial position, harm our reputation and could lead
to regulatory penalties.
Responsibility statement of the Directors in respect of the half
yearly report
The half yearly report is the responsibility of the directors.
Each of the directors as at the date of this responsibility statement,
whose names and functions are set out below, confirms that to the
best of their knowledge:
-- the condensed consolidated accounts have been prepared in accordance
with UK adopted International Accounting Standard (IAS) 34 -
'Interim Financial Reporting'; and
-- the interim management report included in the Half-Yearly Report
includes a fair review of the information required by:
a) DTR 4.2.7R of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules, being an indication of important
events that have occurred during the first six months of
the financial year and their impact on the condensed consolidated
accounts; and a description of the principal risks and uncertainties
for the remaining six months of the financial year; and
b) DTR 4.2.8R of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules, being related party transactions
that have taken place in the first six months of the current
financial year and that have materially affected the financial
position or performance of the company during that period;
and any changes in the related party transactions described
in the last annual report that could do so.
The names and functions of the directors of Johnson Matthey Plc
are as follows:
Patrick Thomas Chair of the Board and of the Nomination Committee
Liam Condon Chief Executive
Stephen Oxley Chief Financial Officer
John O'Higgins Senior Independent Non-Executive Director
Rita Forst Non-Executive Director
Jane Griffiths Non-Executive Director and Chair of Societal
Value Committee
Xiaozhi Liu Non-Executive Director
Chris Mottershead Non-Executive Director and Chair of the Remuneration
Committee
Doug Webb Non-Executive Director and Chair of the Audit
Committee
The responsibility statement was approved by the Board of Directors
on 23(rd) November 2022 and is signed on its behalf by:
Patrick Thomas
Chair
Independent Review Report
to Johnson Matthey Plc
Report on the condensed consolidated accounts
Our conclusion
We have reviewed Johnson Matthey Plc's condensed consolidated
accounts (the "interim financial statements") in the half year
results of Johnson Matthey Plc for the 6 month period ended 30
September 2022 (the "period").
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
-- the Condensed Consolidated Balance Sheet as at 30(th) September 2022;
-- the Condensed Consolidated Income Statement and Condensed
Consolidated Statement of Total Comprehensive Income for the period
then ended;
-- the Condensed Consolidated Cash Flow Statement for the period then ended;
-- the Condensed Consolidated Statement of Changes in Equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the half year
results of Johnson Matthey Plc have been prepared in accordance
with UK adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' issued by the Financial Reporting Council for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the half year
results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on
the review procedures performed in accordance with this ISRE.
However, future events or conditions may cause the group to cease
to continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The half year results, including the interim financial
statements, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the half
year results in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority. In preparing the half year results, including
the interim financial statements, the directors are responsible for
assessing the group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors
either intend to liquidate the group or to cease operations, or
have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim
financial statements in the half year results based on our review.
Our conclusion, including our Conclusions relating to going
concern, is based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of
this report. This report, including the conclusion, has been
prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
23(rd) November 2022
Condensed Consolidated Income Statement
for the six months ended 30(th) September 2022
Six months ended
30.9.22 30.9.21
Notes GBP million GBP million*
2,
Revenue 3 7,328 8,503
Cost of sales (6,841) (7,969)
----------- ------------
Gross profit 487 534
Distribution costs (57) (52)
Administrative expenses (208) (185)
Amortisation of acquired intangibles 4 (2) (3)
Gain on significant legal proceedings 4 - 44
Major impairment and restructuring charges 4 (9) (314)
----------- ------------
Operating profit 211 24
Finance costs (48) (37)
Finance income 27 9
Share of losses of joint ventures and associates (2) -
Profit / (loss) before tax from continuing
operations 188 (4)
Tax expense 5 (38) (20)
----------- ------------
Profit / (loss) for the period from continuing operations 150 (24)
Profit / (loss) after tax from discontinued
operations 10 10 (4)
----------- ------------
Profit / (loss) for the period 160 (28)
----------- ------------
pence pence
Earnings / (loss) per ordinary share
Basic 6 87.5 (14.8)
Diluted 6 87.1 (14.8)
pence pence
Earnings / (loss) per ordinary share from continuing operations
Basic 6 82.0 (12.4)
Diluted 6 81.7 (12.4)
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
Condensed Consolidated Statement of Total Comprehensive
Income
for the six months ended 30(th) September 2022
Six months ended
30.9.22 30.9.21
Notes GBP million GBP million*
Profit / (loss) for the period 160 (28)
------------ ------------
Other comprehensive income
Items that will not be reclassified to the
income statement
Remeasurements of post-employment benefit
assets and liabilities 12 (115) 59
Fair value (losses) / gains on equity investments (4) 1
Tax on items that will not be reclassified to the
income statement 28 (5)
------------ ------------
(91) 55
------------ ------------
Items that may be reclassified to the income
statement:
Exchange differences on translation of foreign
operations 187 36
Exchange differences on translation of discontinued
operations 10 (32) 4
Amounts (charged) / credited to hedging
reserve (12) 13
Fair value losses on net investment hedges (22) (2)
Tax on items that may be reclassified to the income
statement 4 (3)
------------ ------------
125 48
------------ ------------
Other comprehensive income for the period 34 103
------------ ------------
Total comprehensive income for the period 194 75
------------ ------------
Total comprehensive income for the period arises from:
Continuing operations 216 75
Discontinued operations 10 (22) -
------------ ------------
194 75
------------ ------------
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
Condensed Consolidated Balance Sheet
as at 30(th) September 2022
30.9.22 31.3.22
GBP
Notes million GBP million
Assets
Non-current assets
Property, plant and equipment 8 1,344 1,238
Right-of-use assets 62 61
Goodwill 379 366
Other intangible assets 9 276 267
Investments in joint ventures and associates 82 2
Investments at fair value through other comprehensive
income 58 45
Other receivables 87 42
Interest rate swaps 17 31 11
Deferred tax assets 116 98
Post-employment benefit net assets 12 231 352
-------- -----------
Total non-current assets 2,666 2,482
-------- -----------
Current assets
Inventories 1,781 1,549
Current tax assets 19 18
Trade and other receivables 1,881 1,796
Cash and cash equivalents 17 414 391
Interest rate swaps 17 - 1
Other financial assets 52 27
Assets classified as held for sale 10 48 402
-------- -----------
Total current assets 4,195 4,184
-------- -----------
Total assets 6,861 6,666
-------- -----------
Liabilities
Current liabilities
Trade and other payables (2,567) (2,563)
Lease liabilities 17 (12) (10)
Current tax liabilities (86) (97)
Cash and cash equivalents -- bank overdrafts 17 (45) (37)
Borrowings and related swaps 17 (183) (265)
Other financial liabilities (84) (44)
Provisions (45) (56)
Liabilities classified as held for sale 10 (10) (80)
-------- -----------
Total current liabilities (3,032) (3,152)
-------- -----------
Non-current liabilities
Borrowings and related swaps 17 (1,113) (899)
Lease liabilities 17 (41) (40)
Deferred tax liabilities (18) (18)
Interest rate swaps 17 (14) (2)
Employee benefit obligations 12 (59) (72)
Other financial liabilities (3) (12)
Provisions (36) (28)
Other payables (2) (2)
-------- -----------
Total non-current liabilities (1,286) (1,073)
-------- -----------
Total liabilities (4,318) (4,225)
-------- -----------
Net assets 2,543 2,441
-------- -----------
Equity
Share capital 215 218
Share premium 148 148
Shares held in employee share ownership trust
(ESOT) (20) (24)
Other reserves 174 50
Retained earnings 2,026 2,049
-------- -----------
Total equity 2,543 2,441
-------- -----------
Condensed Consolidated Cash Flow Statement
for the six months ended 30(th) September 2022
Six months ended
30.9.22 30.9.21
Notes GBP million* GBP million*
Cash flows from operating activities
Profit / (loss) before tax from continuing
operations 188 (4)
Loss before tax from discontinued operations 10 (5) (5)
Adjustments for:
Share of losses of joint ventures and associates 2 -
Depreciation 73 77
Amortisation 16 22
Impairment losses - 314
Share-based payments 8 9
Increase in inventories (169) (179)
Decrease in receivables 41 532
Increase / (decrease) in payables 26 (339)
Decrease in provisions (8) (8)
Contributions less than / (in excess of) employee benefit
obligations charge (3) 5
Changes in fair value of financial instruments (9) 8
Net finance costs 21 29
Income tax paid (36) (49)
------------- ------------
Net cash inflow from operating activities 145 412
------------- ------------
Cash flows from investing activities
Interest received 11 6
Purchases of property, plant and equipment (111) (141)
Purchases of intangible assets (26) (43)
Proceeds from sale of non-current assets - 2
Net proceeds from sale of businesses 166 -
Net cash inflow / (outflow) from investing
activities 40 (176)
------------- ------------
Cash flows from financing activities
Purchase of treasury shares (45) -
Proceeds from borrowings 272 63
Repayment of borrowings (259) -
Dividends paid to equity shareholders 7 (100) (96)
Interest paid (38) (40)
Principal element of lease payments (6) (7)
------------- ------------
Net cash outflow from financing activities (176) (80)
------------- ------------
Net increase in cash and cash equivalents 9 156
Exchange differences on cash and cash equivalents 14 3
Cash and cash equivalents at beginning of
year 346 545
Cash and cash equivalents at end of period 17 369 704
------------- ------------
Cash and deposits 161 223
Money market funds 253 523
Bank overdrafts (45) (42)
Cash and cash equivalents 17 369 704
------------- ------------
* For cash flows of discontinued operations see note 10.
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30(th) September 2022
Share Shares
held
Share premium in Other Retained Total
capital account ESOT reserves earnings equity
GBP million GBP million GBP million GBP million GBP million GBP million
At 1(st) April 2021 221 148 (29) - 2,345 2,685
Total comprehensive income
for
the period - - - 49 26 75
Dividends paid (note 7) - - - - (96) (96)
Share-based payments - - - - 12 12
Cost of shares transferred
to employees - - 5 - (8) (3)
At 30(th) September 2021 221 148 (24) 49 2,279 2,673
Total comprehensive
(expense) /
income for the period - - - (2) 15 13
Dividends paid (note 7) - - - - (43) (43)
Purchase of treasury
shares (3) - - 3 (200) (200)
Share-based payments - - - - 3 3
Cost of shares transferred
to employees - - - - (5) (5)
At 31(st) March 2022 218 148 (24) 50 2,049 2,441
Total comprehensive income
for
the period - - - 121 73 194
Dividends paid (note 7) - - - - (100) (100)
Purchase of treasury
shares (3) - - 3 - -
Share-based payments - - - - 12 12
Cost of shares transferred
to employees - - 4 - (8) (4)
At 30(th) September 2022 215 148 (20) 174 2,026 2,543
----------- ----------- ----------- ----------- ----------- -----------
1 Basis of preparation and statement of compliance
This condensed consolidated interim financial report for the
half-year reporting period ended 30(th) September 2022 has been
prepared in accordance with the UK-adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the UK's Financial
Conduct Authority. The accounting policies applied are consistent
with the accounting policies applied by the group in its
consolidated accounts as at, and for the year ended, 31(st) March
2022, with the exception of the adoption of amended accounting
policies and standards as explained below.
These condensed consolidated accounts do not constitute
statutory accounts within the meaning of Section 435 of the
Companies Act 2006. The interim report does not include all of the
notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the
annual report for the year ended 31(st) March 2022, which has been
prepared in accordance with UK-adopted International Accounting
Standards (IAS) and with the requirements of the Companies Act
2006.
Information in respect of the year ended 31(st) March 2022 is
derived from the company's statutory accounts for that year which
have been delivered to the Registrar of Companies. The auditor's
report on those statutory accounts was unqualified, did not include
a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying its report and did not contain
any statement under Section 498 (2) or Section 498 (3) of the
Companies Act 2006.
The half-yearly accounts are unaudited but have been reviewed by
the auditors. They were approved by the board of directors on
22(nd) November 2022.
Going concern
The directors have reviewed a range of scenario forecasts for
the group and have reasonable expectation that there are no
material uncertainties that cast doubt about the group's ability to
continue operating for at least twelve months from the date of
approving these half-yearly accounts.
As at 30(th) September 2022, the group maintains a strong
balance sheet with around GBP1.7 billion of available cash and
undrawn committed facilities. Free cash flow was around GBP133
million, however net debt increased since 31(st) March 2022 to
GBP963 million primarily due to unfavourable foreign exchange
retranslation impacts driven by a weaker pound sterling. Net debt
(including post tax pension deficits) to EBITDA, was at the lower
end of our target range at 1.5 times.
Although impacted by the significant headwinds faced in the
current macroeconomic environment such as high inflation, the
impacts of Russia's war in Ukraine, and many major economies
predicted to enter recessions, the group's performance during the
period was resilient, both in terms of underlying operating profit
and cash flow. For the purposes of assessing going concern, we have
revisited our financial projections using the latest forecasts for
our base case scenario. The base case scenario was stress tested to
a severe but plausible downside case which reflects lower demand
across our markets to account for further ongoing disruptions and a
deep recession.
Additionally, the group considered scenarios including the
impact from metal price volatility, higher inflation, energy
blackout impacts and increases in the amount of metal that we would
have to hold. Whilst the combined impact would reduce profitability
and EBITDA against our latest forecast, our balance sheet remains
strong.
The group has a robust funding position comprising a range of
long-term debt and a GBP1 billion five year committed revolving
credit facility maturing in March 2027 which was entirely undrawn
at 30(th) September 2022. There was GBP253 million of cash held in
money market funds. Of the existing loans, around GBP165 million of
term debt matures in the period to December 2023 which has been
included in our going concern modelling. As a long time, highly
rated issuer in the US private placement market and having recently
raised a UK Export Financing facility, the group expects to be able
to access additional funding in its existing markets should it need
to. The group also has a number of additional sources of funding
available including uncommitted lease facilities that support
precious metal funding. Whilst we would fully expect to be able to
utilise the metal lease facilities, they are excluded from our
going concern modelling.
Basis of preparation and statement of compliance
1 (continued)
Going concern (continued)
Under all scenarios above, the group has sufficient headroom
against committed facilities and key financial covenants are not in
breach during the going concern period. There remain risks to the
group including more extreme economic outcomes. Against these, the
group has a range of levers which it could utilise to protect
headroom including reducing capital expenditure and future dividend
distributions.
The directors are therefore of the opinion that the group has
adequate resources to fund its operations for the period of twelve
months following the date of this announcement and so determine
that it is appropriate to prepare the accounts on a going concern
basis.
Non-GAAP measures
The group uses various measures to manage its business which are
not defined by generally accepted accounting principles (GAAP). The
group's management believes these measures provide valuable
additional information to users of the accounts in understanding
the group's performance. The group's non-GAAP measures are defined
and reconciled to GAAP measures in note 17.
Amended standards adopted by the group
The IASB has issued the following amendments, which have been
endorsed by the UK Endorsement Board, for annual periods beginning
on or after 1 January 2022:
- Annual improvements to IFRS Standards 2018-2020;
- Amendments to IAS 16, Property, Plant and Equipment: Proceeds before intended use;
- Amendments to IAS 37, Onerous Contracts - Cost of Fulfilling a Contract; and
- Amendments to IFRS 3, Reference to the Conceptual Framework.
These changes have not had a material impact on the group. The
group has not early adopted any standard, interpretation or
amendment that was issued but is not yet effective.
New significant accounting policies adopted by the group
Investments in joint ventures and associates
A joint venture is a joint arrangement whereby investees are
able to exercise joint control of the arrangement.
Associates are entities over which the group exercises
significant influence when it has the power to participate in the
financial and operating policy decisions of the entity but it does
not have the power to control or jointly control the entity.
Investments in joint ventures and associates are accounted for
using the equity method of accounting and are initially recognised
at cost. Thereafter the investments are adjusted to recognise the
group's share of the post-acquisition profits or losses after tax
of the investee in the income statement, and the group's share of
movements in other comprehensive income of the investee in other
comprehensive income. Dividends received or receivable from
associates are recognised as a reduction in the carrying amount of
the investment. The carrying value of the investments are reviewed
for impairment triggers on a regular basis.
Where the group's share of losses in an equity-accounted
investment equals or exceeds its interest in the entity, the group
does not recognise further losses unless it has incurred
obligations to do so.
Unrealised gains and losses on transactions between the group
and its associates are eliminated to the extent of the group's
interest in these joint ventures and associates.
2 Segmental information
Revenue, sales and underlying operating
profit by sector
As announced in our preliminary full year results in May 2022, we
have changed our reporting structure for the year ending 31(st) March
2023. The new reporting structure provides greater transparency and
reflects how we manage our business. Efficient Natural Resources was
split into two separate segments (PGM Services and Catalyst Technologies),
and Hydrogen Technologies and Value Businesses are now separate operating
segments (previously included within Other Markets). Excluding Corporate,
the group has five reporting segments, aligned to the needs of our
customers and the global challenges we are tackling.
Clean Air - provides catalysts for emission control after-treatment
systems used in light and heavy duty vehicles powered by internal
combustion engines.
PGM Services - enables the energy transition through providing circular
solutions as demand for scarce critical materials increases. Provides
a strategic service to the group, supporting the other segments with
security of metal supply.
Catalyst Technologies - enabling the decarbonisation of chemical
value chains.
Hydrogen Technologies - providing catalyst coated membranes that
are a critical component for fuel cells and electrolysers.
Value Businesses - a portfolio of businesses managed to drive shareholder
value from activities considered to be non-core to JM. This includes
Battery Systems, Medical Device Components, Diagnostic Services and
Battery Materials. Refer to note 11 for further information on the
disposal of Battery Materials. Advanced Glass Technologies was sold
on 31(st) January 2022 and is included within the prior period balances.
The Group Leadership Team (the chief operating decision maker as defined
by IFRS 8, Operating Segments) monitors the results of these operating
sectors to assess performance and make decisions about the allocation
of resources. Each operating sector is represented by a member of
the Group Leadership Team. These operating sectors represent the group's
reportable segments and their principal activities are described on
pages 24 to 27 of the 2022 Annual Report. The performance of the group's
operating sectors is assessed on sales and underlying operating profit
(see note 17). Sales between segments are made at market prices, taking
into account the volumes involved.
Health was sold during the financial period and its results are therefore
presented within discontinued operations (see note 10).
2 Segmental information (continued)
Six months ended 30(th) September
2022
Total
from
Clean PGM Catalyst Hydrogen Value continuing
Air Services Technologies Technologies Businesses Corporate Eliminations operations
GBP GBP GBP GBP GBP GBP GBP GBP
million million million million million million million million
Revenue from external
customers 2,995 3,682 342 27 282 - - 7,328
Inter-segment revenue - 1,679 7 - - - (1,686) -
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Revenue 2,995 5,361 349 27 282 - (1,686) 7,328
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
External sales (1) 1,278 240 269 23 235 - - 2,045
Inter-segment sales - 42 6 - - - (48) -
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Sales (1) 1,278 282 275 23 235 - (48) 2,045
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Underlying operating
profit (1) 108 125 21 (24) 21 (29) - 222
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Six months ended 30(th) September
2021*
Total
from
PGM Catalyst Hydrogen Value continuing
Clean Services Technologies Technologies Businesses Eliminations operations
Air (restated) (restated) (restated) (restated) Corporate (restated) (restated)
GBP
million GBP million GBP million GBP million GBP million GBP million GBP million GBP million
Revenue from external
customers 3,748 4,221 293 12 229 - - 8,503
Inter-segment revenue 1 2,613 4 - - - (2,618) -
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Revenue 3,749 6,834 297 12 229 - (2,618) 8,503
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
External sales (1) 1,195 252 218 10 181 - - 1,856
Inter-segment sales 1 48 5 - (54) -
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Sales (1) 1,196 300 223 10 181 - (54) 1,856
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
Underlying operating
profit (1) 150 167 30 (12) 1 (39) - 297
--------- --------------- ---------------- --------------- ------------------ ----------------- -------------- -----------
* The comparative period is restated to reflect the group's updated
reporting segments. Also restated to reflect classification of the Health
segment as discontinued operations (see note 10).
(1) Sales and underlying operating profit are non-GAAP measures (see
note 17 for reconciliation to GAAP measures). Sales excludes the sale
of precious metals. Underlying operating profit excludes profit or loss
on disposal of businesses, gain or loss on significant legal proceedings,
together with associated legal costs, amortisation of acquired intangibles
and major impairment and restructuring charges.
2 Segmental information (continued)
Net assets by sector
At 30(th) September
2022
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Corporate Total
GBP GBP GBP GBP GBP
million million GBP million GBP million million million million
Segmental net assets 2,222 (664) 799 70 202 570 3,199
--------- ----------------- -------------------- ------------------ ----------------- --------------
Net debt (see note 17) (963)
Post-employment benefit net assets
and liabilities 172
Deferred tax net assets 98
Provisions and non-current other payables (83)
Investments in joint ventures and associates 82
Net assets held for sale (see note 10) 38
-----------
Net assets 2,543
-----------
At 31(st) March
2022*
PGM Catalyst Hydrogen Value
Clean Services Technologies Technologies Businesses
Air (restated) (restated) (restated) (restated) Corporate Total
GBP
million GBP million GBP million GBP million GBP million GBP million GBP million
Segmental net assets 2,108 (702) 743 51 169 330 2,699
--------- ----------------- -------------------- ------------------ ----------------- --------------
Net debt (see note 17) (856)
Post-employment benefit net assets
and liabilities 280
Deferred tax net assets 80
Provisions and non-current other
payables (86)
Investments in joint ventures
and associates 2
Net assets held for sale 322
Net assets 2,441
-----------
* The comparative period is restated to reflect the group's updated
reporting segments. The overall group total is as previously reported.
3 Revenue
Products and services
The group's principal products and services by operating business and
sub-business are disclosed in the table below, together with information
regarding performance obligations and revenue recognition. Revenue
is recognised by the group as contractual performance obligations to
customers are completed.
Primary Performance
Sub-business industry Principal products and services obligations Revenue recognition
---------------------- ------------------------ --------------------------------------------------------------- ------------------- ---------------------------------
Clean Air
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Light Duty Automotive Catalysts for cars and other Point On despatch
Catalysts light duty vehicles in time or delivery
Heavy Duty Automotive Catalysts for trucks, buses Point On despatch
Catalysts and non-road equipment in time or delivery
PGM Services
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Platinum Various Platinum Group Metal refining Over time Based on output
Group Metal and recycling services
Services
Other precious metal products Point On despatch
in time or delivery
Platinum Group Metal chemical Point On despatch
and industrial products in time or delivery
Advanced catalysts Point On despatch
in time or delivery
Catalyst Technologies
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Catalyst Chemicals Speciality catalysts and Point On despatch
Technologies / oil and additives in time or delivery
gas
Process technology licences Over time Based on costs
incurred or
straight-line
over the licence
term(1)
Hydrogen Technologies
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fuel Automotive Fuel cell technologies Point On despatch
Cells in time or delivery
Value Businesses
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Other Markets Various Precious metal pastes and Point On despatch
(excluding enamels, battery systems in time or delivery
Diagnostic and products found in devices
Services) used in medical procedures
Diagnostic Oil and gas Detection, diagnostic and Over time Based on costs
Services measurement solutions incurred
(1) Revenue recognition depends on whether the licence is distinct
in the context of the contract.
3 Revenue (continued)
Revenue from external customers by principal products and services
Six months ended 30(th) September 2022
Continuing operations
---------------------------------------------------------------------------------------------------
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Total
GBP million GBP million GBP million GBP million GBP million GBP million
Metal 1,717 3,442 73 4 47 5,283
Heavy Duty Catalysts 447 - - - - 447
Light Duty Catalysts 814 - - - - 814
Platinum Group Metal Services - 240 - - - 240
Catalyst Technologies - - 269 - - 269
Fuel Cells - - - 23 - 23
Battery Systems - - - - 135 135
Diagnostic Services - - - - 34 34
Medical Device Components - - - - 46 46
Other 17 - - - 20 37
Revenue 2,995 3,682 342 27 282 7,328
Six months ended 30(th) September 2021*
Continuing operations
PGM Catalyst Hydrogen Value
Clean Services Technologies Technologies Businesses Total
Air (restated) (restated) (restated) (restated) (restated)
GBP million GBP million GBP million GBP million GBP million GBP million
Metal 2,553 3,969 75 2 48 6,647
Heavy Duty Catalysts 413 - - - - 413
Light Duty Catalysts 768 - - - - 768
Platinum Group Metal Services - 252 - - - 252
Catalyst Technologies - - 218 - - 218
Fuel Cells - - - 10 - 10
Battery Materials - - - - 6 6
Battery Systems - - - - 77 77
Advanced Glass Technologies - - - - 36 36
Diagnostic Services - - - - 26 26
Medical Device Components - - - - 36 36
Other 14 - - - - 14
Revenue 3,748 4,221 293 12 229 8,503
* The comparative period is restated to reflect the group's updating
reporting segments. Also restated to reflect classification of Health
segment as discontinued operations (see note 10).
The contract receivables balance at 30(th) September 2022 is GBP75 million
(31(st) March 2022: GBP88 million).
3 Revenue (continued)
Revenue from external customers by point in time and over time performance
obligations
Six months ended 30(th) September 2022
Continuing operations
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Total
GBP million GBP million GBP million GBP million GBP million GBP million
Revenue recognised at a point
in time 2,995 3,541 270 27 264 7,097
Revenue recognised over time - 141 72 - 18 231
Revenue 2,995 3,682 342 27 282 7,328
Six months ended 30(th) September 2021
Continuing operations
Clean PGM Catalyst Hydrogen Value
Air Services Technologies Technologies Businesses Total
GBP million GBP million GBP million GBP million GBP million GBP million
Revenue recognised at a point
in time 3,748 4,073 248 12 222 8,303
Revenue recognised over time - 148 45 - 7 200
Revenue 3,748 4,221 293 12 229 8,503
4 Operating profit
Six months ended
30.9.22 30.9.21
GBP million GBP million*
Operating profit is arrived at after charging
/ (crediting):
Total research and development expenditure 106 103
Less: Development expenditure capitalised - (15)
Research and development expenditure charged
to the income statement 106 88
Less: External funding received - from governments (7) (6)
Net research and development expenditure charged
to the income statement 99 82
Depreciation
of:
Property, plant and equipment 67 60
Right-of-use assets 6 6
Depreciation 73 66
Amortisation
of:
Acquired intangibles 2 3
Other intangible assets 14 18
Amortisation 16 21
Gain on significant legal proceedings - (44)
Major impairment and restructuring charges:
Property, plant and equipment - 216
Right-of-use assets - 5
Other intangible assets - 78
Trade and other receivables - 15
Impairment losses - 314
Restructuring charges 9 -
Major impairment and restructuring charges 9 314
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
Major impairment and restructuring charges
Major impairment and restructuring charges are shown separately
on the face of the income statement and excluded from underlying
operating profit, see note 17.
Restructuring charges - the group incurred GBP5 million in
respect of the transformation initiatives announced in May 2022,
largely comprising of redundancy costs, and GBP4 million for other
business exit related costs.
In the prior period, the group incurred impairment charges of
GBP314 million in relation to the group's decision to pursue the
sale of all or parts of Battery Materials, the charge was based on
our estimate of the recoverable amount at that time. The process to
dispose of the remaining assets in Battery Materials is
ongoing.
5 Tax expense
The charge for taxation at the half year ended 30(th) September
2022 is GBP38 million (1H 2021/22 restated: GBP20 million), an
effective tax rate of 20.3%. The tax charge on underlying profit
before tax was GBP40 million, an effective tax rate of 19.9%, an
increase from 16.0% in the half year ended 30(th) September 2021.
The tax rate on underlying profit for the year ending 31(st) March
2023 is estimated to be 19% (2021/22: 17%). The tax charge for the
prior year has been restated above to reflect the classification of
the Health business as discontinued operations.
Earnings / (loss) per ordinary
6 share
Six months ended
30.9.22 30.9.21
pence pence
Basic 87.5 (14.8)
Diluted 87.1 (14.8)
Basic from continuing operations 82.0 (12.4)
Diluted from continuing operations 81.7 (12.4)
Earnings / (loss) per ordinary share have been calculated by dividing
profit / (loss) for the period by the weighted average number of
shares in issue during the period.
See note 10 for the earnings per ordinary share from discontinued
operations.
Six months ended
Weighted average number of shares in issue 30.9.22 30.9.21
Basic 183,006,485 192,829,279
Dilution for long term incentive plans 665,316 687,371
Diluted 183,671,801 193,516,650
7 Dividends
An interim dividend of 22.00 pence (1H 2021/22 22.00 pence) per
ordinary share has been proposed by the board which will be paid on
1(st) February 2023 to shareholders on the register at the close of
business on 9(th) December 2022. The estimated amount to be paid is
GBP42 million (1H 2021/22 GBP42 million) and has not been
recognised in these accounts.
Six months ended
30.9.22 30.9.21
GBP million GBP million
2020/21 final ordinary dividend paid -- 50.00
pence per share - 96
2021/22 final ordinary dividend paid -- 55.00
pence per share 100 -
Total dividends 100 96
8 Property, plant and equipment
Assets
in
Freehold Plant the course
land Leasehold and of
and
buildings improvements machinery construction Total
GBP
million GBP million GBP million GBP million GBP million
Cost
At 1(st) April 2022 570 27 2,055 304 2,956
Additions 3 - 14 88 105
Transfers from assets in the course
of construction 17 1 59 (77) -
Transferred to assets classified
as held for sale (note 10) - - (11) - (11)
Disposals - - (11) - (11)
Exchange adjustments 30 4 123 14 171
At 30(th) September 2022 620 32 2,229 329 3,210
Accumulated depreciation and impairment
At 1(st) April 2022 265 14 1,424 15 1,718
Charge for the period 8 1 58 - 67
Transferred to assets classified
as held for sale (note 10) - - (9) - (9)
Disposals - - (11) - (11)
Exchange adjustments 13 2 86 - 101
At 30(th) September 2022 286 17 1,548 15 1,866
Carrying amount at 30(th) September
2022 334 15 681 314 1,344
Carrying amount at 1(st) April
2022 305 13 631 289 1,238
Assets classified as held for sale relate to Piezo Products, see
note 10.
9 Other intangible assets
Customer Patents, Acquired
contracts research
and Computer trademarks and Development
relationships software and licences technology expenditure Total
GBP million GBP million GBP million GBP million GBP million GBP million
Cost
At 1(st) April 2022 132 419 47 37 135 770
Additions - 23 2 - - 25
Transferred to assets
classified
as held for sale (note 10) (13) - - - - (13)
Disposals - - (6) - - (6)
Exchange adjustments 4 1 2 1 - 8
At 30(th) September 2022 123 443 45 38 135 784
Accumulated amortisation and impairment
At 1(st) April 2022 112 178 44 36 133 503
Charge for the period 2 14 - - - 16
Transferred to assets
classified
as held for sale (note 10) (13) - - - - (13)
Disposals - - (6) - - (6)
Exchange adjustments 4 1 2 1 - 8
At 30(th) September 2022 105 193 40 37 133 508
Carrying amount at 30(th)
September
2022 18 250 5 1 2 276
Carrying amount at 1(st)
April
2022 20 241 3 1 2 267
Assets classified as held for sale relate to Piezo Products, see
note 10.
Discontinued operations and assets and liabilities classified
10 as held for sale
The group strategically drives for efficiency and disciplined
capital allocation to enhance returns, as such we continue to
actively manage our portfolio. In line with this strategy and to
focus on our core businesses, during the period we completed the
sale of our Health and Battery Materials UK businesses. Refer to
note 11 for further information on these disposals.
The Health segment is classified as a discontinued operation and
presented separately in the consolidated income statement. The
Health segment was not previously classified as held-for-sale or as
a discontinued operation for the period to 30(th) September 2021,
although was in the financial statements for the year to 31(st)
March 2022. The comparative income statement and statement of total
comprehensive income has been restated to show the discontinued
operations separately from continuing operations.
Financial information relating to the Health discontinued
operations for the period to disposal date (1(st) June 2022) is set
out below. The 30% equity interest in the business is equity
accounted as an investment in associate.
Six months ended
30.9.22 30.9.21
GBP million GBP million
Revenue 35 83
Expenses (40) (88)
Loss before tax from discontinued operations (5) (5)
Tax credit 1 1
Loss after tax from discontinued operations (4) (4)
Profit on disposal of discontinued operations
after tax (see note 11)* 14 -
Profit / (loss) from discontinued operations 10 (4)
Exchange differences on translation of discontinued
operations (32) 4
Other comprehensive income from discontinued
operations (32) 4
Total comprehensive income from discontinued
operations (22) -
Net cash inflow from operating activities 13 14
Net cash outflow from investing activities (5) (13)
Net cash outflow from financing activities - (2)
Net increase / (decrease) in cash generated
by the discontinued operations 8 (1)
pence pence
Profit / (loss) per ordinary share from discontinued
operations
Basic profit / (loss) per ordinary share from
discontinued operations 5.4 (2.4)
Diluted profit / (loss) per ordinary share from
discontinued operations 5.4 (2.4)
* The profit on disposal of discontinued operations after tax includes
a tax credit of GBP3 million.
As at 30(th) September 2022, Piezo Products and remaining
Battery Materials assets are classified as held for sale. Assets
held for sale as at 30(th) September 2022 are GBP48 million,
comprised of GBP28 million property, plant and equipment,
GBP4 million goodwill, GBP7 million inventories and GBP9 million
trade and other receivables. Liabilities classified as held for
sale as at
30(th) September 2022 are GBP10 million comprised of GBP6
million trade and other payables and GBP4 million employee benefit
obligations.
11 Disposals
Health
On 1(st) June 2022, the group completed the sale of its Health
business for a gross consideration of GBP325 million. This gross
consideration is comprised of GBP150 million cash, a GBP50 million
vendor loan note (which we have recorded as an other receivable),
GBP75 million in the form of shares which constitutes a 30% equity
interest in the business (which we have equity accounted for as an
investment in associate) and GBP50 million in contingent
consideration (which we have recognised at a fair value of GBPnil).
After adjusting for working capital and an additional GBP3 million
cash receipt due to cash in business upon disposal, the net
consideration was GBP272 million. The business was disclosed as a
disposal group held for sale as at 31(st) March 2022.
Battery Materials
On 26(th) May 2022, the group completed the sale of part of its
Battery Materials UK business for a cash consideration of
GBP20 million. The business was disclosed as a disposal group
held for sale as at 31(st) March 2022.
Battery
Health Materials Total
GBP
30(th) September 2022 GBP million GBP million million
Proceeds
Cash consideration 153 20 173
Cash and cash equivalents disposed (5) - (5)
Net cash consideration 148 20 168
Disposal costs paid (1) (1) (2)
Net cash inflow 147 19 166
Assets and liabilities disposed
Non-current assets
Property, plant and equipment 105 14 119
Right-of-use assets 1 - 1
Other intangible assets 42 10 52
Deferred income tax assets 13 - 13
Current assets
Inventories 142 - 142
Trade and other receivables 60 - 60
Cash and cash equivalents 5 - 5
Current liabilities
Trade and other payables (71) - (71)
Lease liabilities (1) (5) (6)
Provisions (1) - (1)
Non-current liabilities
Lease liabilities (2) - (2)
Provisions (1) - (1)
Net assets disposed 292 19 311
Cash consideration 153 20 173
Non-cash consideration 119 - 119
Less: carrying amount of net assets sold (292) (19) (311)
Less: disposal costs (1) (1) (2)
Cumulative currency translation gain recycled
from other comprehensive income 32 - 32
Profit recognised in the income statement 11 - 11
12 Post-employment benefits
Background
The group operates a number of post-employment benefit plans
around the world, the forms and benefits of which vary with
conditions and practices in the countries concerned. The major
defined benefit plans are pension plans and post-retirement medical
plans in the UK and the US.
Financial assumptions
The financial assumptions for the major plans are as follows:
30.9.22 31.3.22
UK plan US plans UK plan US plans
% % % %
First year's rate of increase
in salaries 4.75 4.00 3.85 3.00
Ultimate rate of increase
in salaries 3.75 3.00 3.85 3.00
Rate of increase in pensions
in payment 3.25 - 3.20 -
Discount rate 5.10 5.40 2.80 3.70
Inflation - 2.50 - 2.20
- UK Retail Prices Index
(RPI) 3.50 - 3.60 -
- UK Consumer Prices Index
(CPI) 3.00 - 3.10 -
Current medical benefits
cost trend rate 5.40 - 5.40 -
Ultimate medical benefits
cost trend rate 5.40 - 5.40 -
The financial assumptions for the other plans are reviewed and updated
annually.
Financial
information
Movements in the net post-employment benefit assets and liabilities,
including reimbursement rights, were:
UK UK UK post- US post-
pension pension
- - retirement retirement
cash
legacy balance medical US medical
section section benefits pensions benefits Other Total
GBP GBP GBP GBP GBP
million million GBP million million GBP million million million
At 1(st) April 2022 351 (18) (9) (2) (13) (26) 283
Current service
cost
- in
operating profit (2) (11) - (3) - - (16)
Past service credit
- in
operating profit (1) - - 4 - - 3
Administrative
expenses
- in
operating profit (2) - - (1) - - (3)
Interest 5 - - - - - 5
Remeasurements (125) 20 - (12) 2 - (115)
Company
contributions 3 10 - 4 - 1 18
Benefits paid - - - - 1 - 1
Exchange - - - (2) (2) (1) (5)
At 30(th) September
2022 229 1 (9) (12) (12) (26) 171
12 Post-employment benefits (continued)
Financial information
(continued)
The post-employment benefit assets and liabilities are included in
the balance sheet as follows:
30.9.22 30.9.22 31.3.22 31.3.22
Post- Post-
employment Employee employment Employee
benefit benefit
benefit net benefit net
net
assets obligations net assets obligations
GBP GBP
million million GBP million GBP million
UK pension - legacy section 229 - 351 -
UK pension - cash balance section 1 - - (18)
UK post-retirement medical benefits - (9) - (9)
US pensions - (12) - (2)
US post-retirement medical benefits - (12) - (13)
Other 1 (27) 1 (27)
Total post-employment plans 231 (60) 352 (69)
Other long-term employee benefits (3) (3)
Post-employment plan obligations classified
as held for sale 4
Total long-term employee benefit obligations (59) (72)
13 Fair values
Fair value hierarchy
Fair values are measured using a hierarchy where the inputs
are:
-- Level 1 -- quoted prices in active markets for identical assets or liabilities.
-- Level 2 -- not level 1 but are observable for that asset or
liability either directly or indirectly.
-- Level 3 -- not based on observable market data (unobservable).
Fair value of financial instruments
Certain of the group's financial instruments are held at fair
value. The fair value of a financial instrument is the price that
would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the
balance sheet date.
The fair value of forward foreign exchange contracts, interest
rate swaps, forward precious metal price contracts and currency
swaps is estimated by discounting the future contractual cash flows
using forward exchange rates, interest rates and prices at the
balance sheet date.
The fair value of trade and other receivables measured at fair
value is the face value of the receivable less the estimated costs
of converting the receivable into cash.
The fair value of money market funds is calculated by
multiplying the net asset value per share by the investment held at
the balance sheet date.
There were no transfers of any financial instrument between the
levels of the fair value hierarchy during the current or prior
periods.
13 Fair values (continued)
Fair value
30.9.22 31.3.22 hierarchy
GBP GBP
million million level
Financial instruments measured at fair value
Non-current
Investments at fair value through other comprehensive
income(1) 58 45 1
Interest rate swaps - assets 31 11 2
Interest rate swaps - liabilities (14) (2) 2
Borrowings and related swaps (7) (2) 2
Other financial
liabilities (3) (12) 2
Current
Trade receivables(3) 439 492 2
Other receivables(4) 63 44 2
Cash and cash equivalents - money market funds 253 137 2
Other financial assets(2) 52 27 2
Interest rate swaps - 1 2
Other financial
liabilities(2) (84) (44) 2
Fair value
30.9.22 31.3.22 hierarchy
GBP GBP
million million level
Financial instruments not measured at fair value
Non-current
Borrowings and related swaps (1,106) (897) -
Lease
liabilities (41) (40) -
Current
Amounts receivable under precious metal sale
and repurchase agreements 131 114 -
Amounts payable under precious metal sale and
repurchase agreements (1,052) (793) -
Cash and cash equivalents - cash and deposits 161 254 -
Cash and cash equivalents - bank overdrafts (45) (37) -
Borrowings and related swaps (183) (265) -
Lease liabilities (12) (10) -
(1) Investments at fair value through other comprehensive income are
quoted bonds purchased to fund pension deficit (GBP45 million) and
an investment held at fair value through other comprehensive income
(GBP13 million).
(2) Other financial assets includes forward foreign exchange contracts
(GBP7 million) and currency swaps (GBP45 million). Other financial
liabilities includes forward foreign exchange contracts (GBP47 million),
forward precious metal price contracts (GBP9 million) and currency
swaps (GBP28 million).
(3) Trade receivables held in a part of the group with a business
model to hold trade receivables for collection or sale. The remainder
of the group operates a hold to collect business model and receives
the face value, plus relevant interest, of its trade receivables from
the counterparty without otherwise exchanging or disposing of such
instruments.
(4) Other receivables with cash flows that do not represent solely
the payment of principal and interest.
13 Fair values (continued)
The fair value of financial instruments, excluding accrued interest,
is approximately equal to book value except for:
30.9.22 31.3.22
Carrying Fair Carrying Fair
amount value amount value
GBP GBP
GBP million million million GBP million
US Dollar Bonds 2023, 2025, 2027, 2028,
2029 and 2030 (720) (675) (688) (662)
Euro Bonds 2023, 2025, 2028, 2030 and
2032 (384) (347) (176) (179)
Sterling Bonds 2024, 2025 and 2029 (145) (132) (110) (107)
KfW US Dollar Loan 2024 (45) (43) (38) (36)
The fair values are calculated using level 2 inputs by
discounting future cash flows to net present values using
appropriate market interest rates prevailing at the period end.
14 Precious metal leases
The group leases precious metals to fund temporary peaks in
metal requirements provided market conditions allow. These leases
are from banks for specified periods (less than 12 months) and the
group pays a fee which is expensed on a straight-line basis over
the lease term in finance costs. The group holds sufficient
precious metal inventories to meet all the obligations under these
lease arrangements as they fall due. At 30(th) September 2022,
precious metal leases were GBP129 million at closing prices (31(st)
March 2022: GBP140 million). Precious metal leases are not
accounted for under IFRS 16 as they qualify as short term
leases.
15 Contingent liabilities
The group is involved in various disputes and claims which arise
from time to time in the course of its business including, for
example, in relation to commercial matters, product quality or
liability, employee matters and tax audits. The group is also
involved from time to time in the course of its business in legal
proceedings and actions, engagement with regulatory authorities and
in dispute resolution processes. These are reviewed on a regular
basis and, where possible, an estimate is made of the potential
financial impact on the group. In appropriate cases a provision is
recognised based on advice, best estimates and management
judgement. Where it is too early to determine the likely outcome of
these matters, no provision is made. Whilst the group cannot
predict the outcome of any current or future such matters with any
certainty, it currently believes the likelihood of any material
liabilities to be low, and that such liabilities, if any, will not
have a material adverse effect on its consolidated income,
financial position or cash flows.
As previously disclosed, the group has been informed by a
customer of failures in certain engine systems for which the group
supplied a particular coated substrate as a component for that
customer's emissions after-treatment systems. The reported failures
have not been demonstrated to be due to the coated substrate
supplied by the group. The group has not been contacted by any
regulatory authority about these engine system failures. Having
reviewed its contractual obligations and the information currently
available to it, the group believes it has defensible warranty
positions in respect of this matter. If required, it will
vigorously assert its available contractual protections and
defences. The outcome of any discussions relating to this matter is
not certain, nor is the group able to make a reliable estimate of
the possible financial impact at this stage, if any.
The group works with all its customers to ensure appropriate
product quality and we have not received claims in respect of our
emissions after treatment components from this or any other
customer. Our vision is for a world that's cleaner and healthier;
today and for future generations. We are committed to enabling
improving air quality and we work constructively with our customers
to achieve this.
16 Transactions with related parties
There have been no material changes in related party
relationships in the six months ended 30(th) September 2022 and no
related party transactions have taken place which have materially
affected the financial position or performance of the group during
that period.
17 Non-GAAP measures
The group uses various measures to manage its business which are
not defined by generally accepted accounting principles (GAAP). The
group's management believes these measures provide valuable
additional information to users of the accounts in understanding
the group's performance. Certain of these measures are financial
Key Performance Indicators which measure progress against our
strategy.
All non-GAAP measures are on a continuing operations basis.
17 Non-GAAP measures (continued)
Definitions
Measure Definition Purpose
Sales(1) Revenue excluding sales Provides a better measure of
of precious metals to customers the growth of the group as revenue
and the precious metal can be heavily distorted by year
content of products sold on year fluctuations in the market
to customers. prices of precious metals and,
in many cases, the value of precious
metals is passed directly on
to customers.
Underlying Operating profit excluding Provides a measure of operating
operating profit(2) non-underlying items. profitability that is comparable
over time.
Underlying Underlying operating profit Provides a measure of how we
operating profit divided by sales. convert our sales into underlying
margin(1,2) operating profit and the efficiency
of our business.
Underlying Profit before tax excluding Provides a measure of profitability
profit before non-underlying items. that is comparable over time.
tax(2)
Underlying Profit for the year excluding Provides a measure of profitability
profit for non-underlying items and that is comparable over time.
the year(2) related tax effects.
Underlying Underlying profit for the Our principal measure used to
earnings per year divided by the weighted assess the overall profitability
share(1,2) average number of shares of the group.
in issue.
Return on Invested Annualised underlying operating Provides a measure of the group's
Capital (ROIC)(1) profit divided by the 12 efficiency in allocating the
month average equity, excluding capital under its control to
post tax pension net assets, profitable investments.
plus average net debt for
the same period.
Average working Monthly average of non-precious Provides a measure of efficiency
capital days metal related inventories, in the business with lower days
(excluding trade and other receivables driving higher returns and a
precious metals)(1) and trade and other payables healthier liquidity position
(including any classified for the group.
as held for sale) divided
by sales for the last three
months multiplied by 90
days.
Free cash flow Net cash flow from operating Provides a measure of the cash
activities after net interest the group generates through its
paid, net purchases of operations, less capital expenditure.
non-current assets and
investments, proceeds from
disposal of businesses,
dividends received from
joint ventures and associates
and the principal element
of lease payments.
Net debt (including Net debt, including post Provides a measure of the group's
post tax pension tax pension deficits and ability to repay its debt. The
deficits) to quoted bonds purchased group has a long-term target
underlying to fund the UK pension of net debt (including post tax
EBITDA (excluded when the UK pension pension deficits) to underlying
plan is in surplus) divided EBITDA of between 1.5 and 2.0
by underlying EBITDA for times, although in any given
the same period. year it may fall outside this
range depending on future plans.
(1) Key Performance Indicator
(2) Underlying profit measures are before profit or loss on
disposal of businesses, gain or loss on significant legal
proceedings, together with associated legal costs, amortisation of
acquired intangibles, major impairment and restructuring charges,
share of profits or losses from non-strategic equity investments
and, where relevant, related tax effects. These items have been
excluded by management as they are not deemed to be relevant to an
understanding of the underlying performance of the business.
17 Non-GAAP measures (continued)
Reconciliations to GAAP measures
Sales
See note 2.
Underlying profit measures
Profit
Operating Profit Tax for
before the
profit tax expense period
GBP GBP
Six months ended 30(th) September 2022 GBP million GBP million million million
Underlying 222 201 (40) 161
Amortisation of acquired intangibles (2) (2) - (2)
Major impairment and restructuring charges(1) (9) (9) 2 (7)
Share of losses of joint ventures and associates - (2) - (2)
Reported 211 188 (38) 150
(1) For further detail please see note 4.
Profit
Operating Profit Tax for
before the
profit tax expense period
GBP GBP
Six months ended 30(th) September 2021* GBP million GBP million million million
Underlying 297 269 (43) 226
Gain on significant legal proceedings 44 44 (4) 40
Amortisation of acquired intangibles (3) (3) - (3)
Major impairment (314) (314) 27 (287)
Reported 24 (4) (20) (24)
Six months
Underlying earnings per share ended
30.9.22 30.9.21*
Underlying profit for the period (GBP million) 161 226
Weighted average number of shares in issue
(million) 183.0 192.8
Underlying earnings per share (pence) 88.2 117.1
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
17 Non-GAAP measures (continued)
Return on Invested Capital (ROIC)
Period Year Period
ended ended ended
30.9.22 31.3.22 30.9.21
GBP GBP
GBP million million* million*
Annualised underlying operating profit 479 553 634
Average net debt 979 877 1,069
Average equity 2,471 2,467 2,467
Average capital employed 3,450 3,344 3,536
Less: Average pension net assets (291) (221) (206)
Less: Average related deferred taxation 71 48 37
Average capital employed (excluding post tax pension
net assets) 3,230 3,171 3,367
ROIC (excluding post tax pension net assets) 14.7% 17.4% 18.8%
ROIC 13.9% 16.5% 17.9%
Average working capital days (excluding precious Six
metals) Six months Year months
ended ended ended
30.9.22 31.3.22 30.9.21
GBP GBP
GBP million million* million*
Inventories 1,781 1,549 1,879
Trade and other receivables 1,881 1,796 1,847
Trade and other payables (2,567) (2,563) (2,994)
1,095 782 732
Working capital balances classified as held
for sale 10 - 163
Less: Working capital balances relating to
discontinued operations - - (138)
Total working capital 1,105 782 757
Less: Precious metal working capital (502) (562) (356)
Add: Precious metal working capital relating
to discontinued operations - - 11
Working capital (excluding precious metals) 603 220 412
Average working capital days (excluding precious
metals) 35 36 30
Free cash flow from continuing operations
Six months ended
30.9.22 30.9.21
GBP GBP
million million*
Net cash inflow from operating activities 145 412
Interest received 11 6
Interest paid (38) (40)
Purchases of property, plant and equipment (111) (141)
Purchases of intangible assets (26) (43)
Proceeds from sale of non-current assets - 2
Proceeds from sale of businesses 166 -
Principal element of lease payments (6) (7)
Less: Net cash (inflow) / outflow from discontinued operations (8) 1
Free cash flow 133 190
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
17 Non-GAAP measures (continued)
Net debt (including post-tax pension deficits)
to underlying EBITDA
30.9.22 31.3.22 30.9.21
GBP GBP
GBP million million* million*
Cash and deposits 161 254 223
Money market funds 253 137 523
Bank overdrafts (45) (37) (42)
Bank overdrafts transferred to liabilities
classified as held for sale - (8) -
Cash and cash equivalents 369 346 704
Less: Cash and cash equivalents - bank overdrafts
from discontinued operations - 8 5
Cash and cash equivalents from continuing
operations 369 354 709
Interest rate swaps - current assets - 1 3
Interest rate swaps - non-current assets 31 11 17
Interest rate swaps - non-current liabilities (14) (2) -
Borrowings and related swaps - current (183) (265) (309)
Borrowings and related swaps - non-current (1,113) (899) (1,054)
Lease liabilities - current (12) (10) (11)
Lease liabilities - non-current (41) (40) (48)
Lease liabilities - current - transferred to
liabilities classified as held for sale - (2) -
Lease liabilities - non-current - transferred
to liabilities classified as held for sale - (7) (1)
Less: Lease liabilities relating to discontinued
operations - 3 3
Net debt (963) (856) (691)
Increase / (decrease) in cash and cash equivalents 9 (205) 156
Less: (Increase) / decrease in cash and cash equivalents
from discontinued operations (8) 3 1
Less: (Increase) / decrease in borrowings (13) 131 (63)
Less: Principal element of lease payments 6 14 7
Less: Principal element of lease payments from
discontinued operations - (1) -
(Decrease) / increase in net debt resulting
from cash flows (6) (58) 101
New leases, remeasurements and modifications (6) (9) (4)
Less: New leases, remeasurements and modifications
from discontinued operations 6 3 2
Exchange differences on net debt (117) (24) (20)
Other non-cash movements 16 2 -
Movement in net debt (107) (86) 79
Net debt at beginning of year (856) (770) (770)
Net debt at end of year (963) (856) (691)
Net debt (963) (856) (691)
Add: Pension deficits (39) (29) (47)
Add: Related deferred tax 7 4 8
Net debt (including post tax pension deficits) (995) (881) (730)
Underlying EBITDA for this period 309 382
Underlying EBITDA for prior year 724 633
Less: Underlying EBITDA for prior half year (382) (209)
Annualised underlying EBITDA 651 724 806
Net debt (including post tax pension deficits)
to underlying EBITDA 1.5 1.2 0.9
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
17 Non-GAAP measures (continued)
30.9.22 31.3.22 30.9.21
GBP GBP
GBP million million* million*
Underlying EBITDA 309 724 382
Depreciation and amortisation (89) (177) (88)
Gains and losses on significant legal proceedings - 42 44
Major impairment and restructuring charges (9) (440) (314)
Profit on disposal of businesses - 106 -
Finance costs (48) (101) (37)
Finance income 27 41 9
Share of losses of joint ventures and associates (2) - -
Income tax expense (38) (79) (20)
Profit for the period from continuing operations 150 116 (24)
* Restated to reflect classification of the Health segment as discontinued
operations (see note 10).
2022
8(th) December
Ex dividend date
9(th) December
Interim dividend record date
2023
1(st) February
Payment of interim dividend
26(th) May
Announcement of results for the year ending 31(st) March 2023
21(st) July
132(nd) Annual General Meeting (AGM)
Cautionary Statement
This announcement contains forward looking statements that are subject
to risk factors associated with, amongst other things, the economic
and business circumstances occurring from time to time in the countries
and businesses in which the group operates. It is believed that the
expectations reflected in this announcement are reasonable but they
may be affected by a wide range of variables which could cause actual
results to differ materially from those currently anticipated.
Johnson Matthey Plc
Registered Office: 5th Floor, 25 Farringdon Street, London EC4A 4AB
Telephone: +44 (0) 20 7269 8400
Fax: +44 (0) 20 7269 8433
Internet address: www.matthey.com
E-mail: jmpr@matthey.com
Registered in England -- Number 33774
LEI code: 2138001AVBSD1HSC6Z10
Registrars
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA
Telephone: 0371 384 2344 (in the UK) *
+44 (0) 121 415 7047 (outside the UK)
Internet address: www.shareview.co.uk
* Lines are open 8.30am to 5.30pm Monday to Friday excluding public
holidays in England and Wales.
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END
IR BKBBDKBDBDDB
(END) Dow Jones Newswires
November 23, 2022 02:00 ET (07:00 GMT)
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