REG - Johnson Matthey PLC - Half-year Report <Origin Href="QuoteRef">JMAT.L</Origin> - Part 3
17/11/2016 07:10
- Part 3: For the preceding part double click ID:nRSQ3917Pb
30.9.16 30.9.16 30.9.15 30.9.15 31.3.16 31.3.16
Level 1 Level 2 Level 1 Level 2 Level 1 Level 2
£ million £ million £ million £ million £ million £ million
Quoted bonds purchased to fund pension deficit
included in:
Non-current investments 58.1 - 50.7 - 49.9 -
Quoted available-for-sale investments included in:
Non-current investments 0.8 - 1.0 - 0.8 -
Interest rate swaps included in:
Non-current assets - 17.3 - 17.2 - 11.1
Current assets - 2.5 - - - 4.6
Current liabilities - (0.1) - - - (0.2)
Non-current liabilities - (7.3) - (0.4) - (1.4)
Forward foreign exchange and precious metal price
contracts and currency swaps included in:
Current other financial assets - 10.6 - 13.6 - 8.4
Current other financial liabilities - (24.8) - (10.9) - (17.9)
Embedded derivatives included in:
Current other financial assets - - - - - 0.1
The fair value of financial instruments is approximately equal to book value except for:
30.9.16 30.9.16 30.9.15 30.9.15 31.3.16 31.3.16
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
£ million £ million £ million £ million £ million £ million
US Dollar Bonds 2016, 2022, 2023, 2025 and 2028 (606.7) (613.2) (522.1) (518.6) (549.9) (550.8)
Euro Bonds 2021 and 2023 (103.6) (121.6) (88.9) (103.8) (94.8) (111.8)
Euro EIB loans 2019 (107.1) (112.8) (91.9) (94.7) (97.9) (103.1)
Sterling Bonds 2024 (65.0) (72.6) (65.0) (67.1) (65.0) (69.4)
Other bank loans (4.0) (3.9) (1.6) (1.2) (6.4) (6.1)
Unquoted investments included in non-current available-for-sale investments have a carrying amount of £5.9 million at 30th
September 2016 (30th September 2015 £8.4 million, 31st March 2016 £5.9 million). There is no active market for these
investments since they are investments in a company that is in the start up phase and in investment vehicles that invest in
start up companies and are categorised as level 3. The investment vehicles hold some investments in quoted companies and so
the fair value technique is based on the percentage ownership of the value of the underlying assets.
Definition and reconciliation of non-GAAP measures to GAAP measures
for the six months ended 30th September 2016
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 half-yearly
accounts in understanding the group's performance.
Sales excluding precious metals (sales)
The group believes that sales excluding precious metals is a better measure of the growth of the group than revenue. Total
revenue can be heavily distorted by year on year fluctuations in the market prices of precious metals. In addition, in many
cases, the value of precious metals is passed directly on to our customers.
Underlying profit and earnings
These are the equivalent GAAP measures adjusted to exclude amortisation of acquired intangibles (note 5), major impairment
and restructuring charges, profit or loss on disposal of businesses, significant tax rate changes and, where relevant,
related tax effects. The group believes that these measures provide a better guide to the underlying performance of the
group. These are reconciled in note 4.
Working capital days
Non-precious metal related inventories, trade and other receivables and trade and other payables (including any classified
as held for sale) divided by sales excluding precious metals for the last three months multiplied by 90 days.
Return on invested capital (ROIC)
Annualised underlying operating profit divided by the monthly average of equity plus net debt for the same period.
30.9.16 30.9.15 31.3.16
£ million £ million £ million
Average net debt 685.1 867.0 691.0
Average equity 1,946.0 1,770.9 1,909.2
Average capital employed 2,631.1 2,637.9 2,600.2
Underlying operating profit for this period (note 4) 236.1 225.0 450.8
Underlying operating profit for prior year (note 4) 450.8 477.1
Underlying operating profit for prior first half (note 4) (225.0) (234.1)
Annualised underlying operating profit 461.9 468.0 450.8
ROIC 17.6% 17.7% 17.3%
Inventories 855.0 639.4 653.7
Trade and other receivables 1,039.3 967.4 948.0
Trade and other payables (868.2) (761.9) (812.3)
Total working capital 1,026.1 844.9 789.4
Less precious metal working capital (367.5) (283.5) (256.5)
Working capital (excluding precious metals) 658.6 561.4 532.9
Earnings before interest, tax, depreciation and amortisation (EBITDA) 310.8 292.6 590.1
Depreciation and amortisation (84.3) (76.6) (157.6)
Impairment of acquired intangibles - - (2.6)
Profit on sale or liquidation of businesses - 130.9 130.0
Major impairment and restructuring charges - - (141.0)
Operating profit 226.5 346.9 418.9
EBITDA for this period 310.8 292.6 590.1
EBITDA for prior year 590.1 611.8
less EBITDA for prior first half (292.6) (299.2)
Annualised EBITDA 608.3 605.2 590.1
Net debt (896.8) (441.2) (674.9)
Pension deficits (190.9) (60.8) (52.6)
Bonds purchased to fund pensions 58.1 50.7 49.9
Related deferred tax 28.0 20.4 20.9
Net debt (including post tax pension deficits) (1,001.6) (430.9) (656.7)
Net debt (including post tax pension deficits) to EBITDA 1.6 0.7 1.1
Financial Calendar
2016
24th November
Ex dividend date
25th November
Interim dividend record date
2017
7th February
Payment of interim dividend
1st June
Announcement of results for the year ending 31st March 2017
8th June
Ex dividend date
9th June
Final dividend record date
28th July
126th Annual General Meeting (AGM)
1st August
Payment of final dividend subject to declaration at the 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 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
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Johnson Matthey
See all newsREG - Johnson Matthey PLC - Director Declaration
AnnouncementREG - Johnson Matthey PLC - Director/PDMR Shareholding
AnnouncementREG - Johnson Matthey PLC - Director/PDMR Shareholding
AnnouncementREG - Johnson Matthey PLC - Director/PDMR Shareholding
AnnouncementREG - Johnson Matthey PLC - Update on Catalyst Technologies sale
Announcement