REG - Johnson Matthey PLC - Final Results <Origin Href="QuoteRef">JMAT.L</Origin> - Part 3
02/06/2016 07:05
- Part 3: For the preceding part double click ID:nRSB9581Zb
shares in issue (2015
202,993,386 shares). The calculation of diluted earnings per ordinary share is based on the weighted average number of
shares in issue adjusted by the dilutive outstanding share options and long term incentive plans. These adjustments give
rise to an increase in the weighted average number of shares in issue of 274,966 shares (2015 500,635 shares).
Underlying earnings per ordinary share are calculated as follows:
2016 2015
£ million £ million
Profit for the year attributable to equity holders of the parent company 333.1 428.7
Profit on sale or liquidation of businesses (note 3) (130.0) (73.0)
Amortisation of acquired intangibles (note 4) 20.9 17.3
Major impairment and restructuring charges (note 5) 141.0 -
Tax thereon (6.8) (6.4)
Underlying profit for the year 358.2 366.6
pence pence
Basic underlying earnings per share 178.7 180.6
10 Net debt
2016 2015
£ million £ million
Cash and deposits 304.5 59.4
Bank overdrafts (20.7) (55.5)
Cash and cash equivalents 283.8 3.9
Other current borrowings, finance leases and related swaps (138.5) (234.7)
Current interest rate swaps 4.6 -
Non-current borrowings, finance leases and related swaps (835.9) (782.6)
Non-current interest rate swaps 11.1 19.0
Net debt (674.9) (994.4)
11 Precious metal operating leases
The group leases, rather than purchases, precious metals to fund temporary peaks in metal requirements provided market
conditions allow. These leases are from banks for specified periods (typically a few months) and for which the group pays
a fee. These arrangements are classified as operating leases. The group holds sufficient precious metal inventories to
meet all the obligations under these lease arrangements as they fall due. At 31st March 2016 precious metal leases were
£70.3 million (2015 £18.7 million).
12 Transactions with related parties
There were no material changes in related party relationships in the year ended 31st March 2016 and no other related party
transactions have taken place which have materially affected the financial position or performance of the group during the
year.
13 Post-employment benefits
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.
Movements in the net post-employment benefit assets and liabilities, including reimbursement rights, were:
UK post- US post-
retirement retirement
UK medical US medical
pension benefits pensions benefits Other Total
£ million £ million £ million £ million £ million £ million
At 1st April 2015 (77.2) (11.0) (26.6) (46.6) (32.3) (193.7)
Current service cost - in operating profit (37.4) - (9.8) (1.3) (2.4) (50.9)
Current service cost - capitalised (0.6) - - - - (0.6)
Net interest (2.9) (0.4) (1.1) (1.7) (0.5) (6.6)
Past service cost (5.4) - (0.5) 7.1 - 1.2
Curtailment gains - - 1.2 - - 1.2
Remeasurements 164.4 0.5 7.7 0.8 6.7 180.1
Company contributions 59.9 0.4 8.2 0.9 1.6 71.0
Transferred from assets / liabilities held for sale - - - - (0.2) (0.2)
Exchange adjustments - - (0.5) (1.1) (2.5) (4.1)
At 31st March 2016 100.8 (10.5) (21.4) (41.9) (29.6) (2.6)
These are included in the balance sheet as:
2016 2016 2016 2015 2015 2015
Post- Post-
employment Employee employment Employee
benefit benefit benefit benefit
net assets obligations Total net assets obligations Total
£ million £ million £ million £ million £ million £ million
UK pension plan 100.8 - 100.8 - (77.2) (77.2)
UK post-retirement medical benefits plan - (10.5) (10.5) - (11.0) (11.0)
US pension plans - (21.4) (21.4) - (26.6) (26.6)
US post-retirement medical benefits plan 6.7 (48.6) (41.9) 6.1 (52.7) (46.6)
Other plans 1.6 (31.2) (29.6) 0.8 (33.1) (32.3)
Total post-employment plans 109.1 (111.7) (2.6) 6.9 (200.6) (193.7)
Other long term employee benefits (3.4) (2.8)
Total long term employee benefit obligations (115.1) (203.4)
14 Acquisitions
On 18th May 2015 the group acquired 100% of Stepac L.A. Ltd. and subsidiaries plus related assets, an advanced packaging
business, from DS Smith International Limited for £20.2 million. On 1st October 2015 the group acquired the Pharmorphix
solid form research business from Sigma Aldrich for £2.6 million.
FINANCIAL CALENDAR
2016
9th June
Ex dividend date
10th June
Final dividend record date
20th July
125th Annual General Meeting (AGM)
2nd August
Payment of final dividend subject to declaration at the AGM
17th November
Announcement of results for the six months ending 30th September 2016
24th November
Ex dividend date
25th November
Interim dividend record date
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 sectors 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 Public Limited Company
Registered Office: 5th Floor, 25 Farringdon Street, London EC4A 4AB
Telephone: 020 7269 8400
Internet address: www.matthey.com
E-mail: jmpr@matthey.com
Registered in England - Number 33774
Registrars
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA
Telephone: 0871 384 2344
Internet address: www.shareview.co.uk
Key Financial Data
for the year ended 31st March 2016
Group Highlights (Underlying Results)
Year ended % at Year ended
31.3.16 31.3.15 constant 31.3.16 31.3.15
£ million £ million % rates £ million £ million %
Sales excluding precious metals 3,177 3,164 - - Earnings per share (pence) 178.7 180.6 -1
Operating profit 450.8 477.1 -6 -6 Dividend per share (pence) 71.5 68.0 +5
Net finance costs (32.6) (37.5) +13 Total research and development 188.0 169.9 +11
Share of profit of joint venture - 0.5 Long term employee benefits costs 70.5 56.4 +25
Profit before tax 418.2 440.1 -5 Net cash flow from operating activities 866.5 125.8
Income tax expense (67.4) (74.9) Capital expenditure 257.0 211.8
Profit for the year 350.8 365.2 -4 Net debt 674.9 994.4
Divisional Highlights
ECT Process Technologies PMP Fine Chemicals New Businesses
Year ended Year ended Year ended Year ended Year ended
31.3.16 31.3.15 31.3.16 31.3.15 31.3.16 31.3.15 31.3.16 31.3.15 31.3.16 31.3.15
£ million £ million % £ million £ million % £ million £ million % £ million £ million % £ million £ million %
Sales excl. precious metals 1,913 1,782 +7 541 591 -8 343 417 -18 296 328 -10 157 91 +73
Underlying operating profit 272.2 236.9 +15 73.6 106.0 -31 66.3 101.5 -35 82.3 88.8 -7 (17.9) (22.1) +19
Return on sales 14.2% 13.3% 13.6% 17.9% 19.4% 24.3% 27.8% 27.1% n/a n/a
Return on invested capital 28.3% 24.1% 9.6% 14.6% 16.5% 21.6% 16.9% 18.4% n/a n/a
Divisional Sales Excluding Precious Metals Detail Average Exchange Rates
Year ended % at Year ended
31.3.16 31.3.15 constant 31.3.16 31.3.15 %
£ million £ million % rates USD/GBP 1.51 1.61 -6
LDV Europe 698 622 +12 +18 EUR/GBP 1.37 1.28 +7
LDV Asia 282 257 +10 +10 RMB/GBP 9.60 9.99 -4
LDV North America 202 179 +13 +6
LDV 1,182 1,058 +12 +14 Average Metal Prices
HDD North America (on road) 405 387 +5 -2 Year ended
HDD Europe (on road) 196 182 +8 +14 31.3.16 31.3.15
HDD Asia (on road) 44 47 -8 -10 $/oz $/oz %
Other 86 108 -20 -21 Platinum 991 1,333 -26
HDD 731 724 +1 -1 Palladium 631 820 -23
ECT 1,913 1,782 +7 +7
Syngas 158 184 -14 -14
Oleo/biochemicals 48 70 -31 -31 Market Data
Petrochemicals 103 88 +17 +16 Estimated LDV Sales and Production *
Chemicals 309 342 -10 -10 Year ended
Refineries 127 133 -4 -8 31.3.16 31.3.15
Gas Processing 42 38 +11 +11 million million %
Diagnostic Services 63 78 -19 -18 North America Sales 21.0 19.7 +6
Oil and Gas 232 249 -7 -8 Production 17.8 17.0 +4
Process Technologies 541 591 -8 -9 Europe Sales 18.8 18.1 +4
Precious Metals Management 17 17 - -2 Production 20.7 20.3 +2
Refining 77 141 -46 -47 Asia Sales 39.7 38.6 +3
Services 94 158 -41 -42 Production 44.1 43.9 -
Noble Metals 130 133 -2 -4 Global Sales 90.0 88.0 +2
Advanced Glass Technologies 71 82 -13 -10 Production 88.5 88.0 +1
Chemical Products 48 44 +7 +4
Manufacturing 249 259 -4 -4 Estimated HDD Truck Sales and Production *
PMP 343 417 -18 -19 Year ended
API Manufacturing 217 216 +1 -3 31.3.16 31.3.15
Catalysis and Chiral Technologies 41 35 +16 +15 thousand thousand %
Research Chemicals 38 77 n/a n/a North America Sales 546.1 512.8 +6
Fine Chemicals 296 328 -10 -13 Production 545.7 543.7 -
Battery Technologies 130 84 +56 +66 EU Sales 321.2 276.6 +16
Fuel Cells 10 6 +59 +59 Production 442.8 386.8 +14
Atmosphere Control Technologies 16 - n/a n/a * Source: LMC Automotive
Other 1 1 n/a n/a
New Businesses 157 91 +73 +83
Eliminations (73) (45)
Group 3,177 3,164 - -
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