REG - Johnson Matthey PLC - Half year results <Origin Href="QuoteRef">JMAT.L</Origin> - Part 3
21/11/2017 07:05
- Part 3: For the preceding part double click ID:nRSU0359Xb
assets - 9.1 - 17.3 - 17.4
Current assets - - - 2.5 - -
Current liabilities - - - (0.1) - -
Non-current liabilities - (8.4) - (7.3) - (6.8)
Forward foreign exchange and precious metal price
contracts and currency swaps included in:
Current other financial assets - 12.7 - 10.6 - 7.5
Current other financial liabilities - (12.0) - (24.8) - (14.9)
The fair value of financial instruments is approximately equal to book value except for:
30.9.17 30.9.17 30.9.16 30.9.16 31.3.17 31.3.17
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 (469.0) (467.0) (606.7) (613.2) (507.8) (503.2)
Euro Bonds 2021 and 2023 (105.6) (121.2) (103.6) (121.6) (103.0) (119.6)
Euro EIB loans 2019 (109.1) (114.0) (107.1) (112.8) (106.4) (111.8)
Sterling Bonds 2024 (65.0) (71.9) (65.0) (72.6) (65.0) (73.8)
KfW US dollar loan 2024 (37.3) (38.6) - - (40.1) (41.7)
Other bank loans (1.8) (1.8) (4.0) (3.9) (2.0) (2.0)
Unquoted investments included in non-current available-for-sale investments have a carrying amount of £3.4 million at 30th
September 2017 (30th September 2016 £5.9 million, 31st March 2017 £3.6 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 2017
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 (note 6), 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.
Margin
Underlying operating profit divided by sales excluding precious metals.
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.
Free cash flow
Net cash flow from operating activities, after net interest paid, net purchases of non-current assets and investments and
dividends received from joint venture.
Capex
Additions of property, plant and equipment plus additions of other intangible assets.
Capex to depreciation ratio
Capex divided by depreciation. Depreciation is the depreciation charge of property, plant and equipment plus the
amortisation charge of other intangible assets excluding amortisation of acquired intangibles (note 5).
Net debt (including post tax pension deficits) to EBITDA
Net debt, including post tax pension deficits and bonds purchased to fund UK pensions (excluded when the UK pension plan is
in surplus), divided by profit for the period before net finance costs, tax, share of (loss) / profit of joint venture and
associate, major impairment and restructuring charges (note 6), depreciation and amortisation (EBITDA) for the same
period.
Return on invested capital (ROIC)
Annualised underlying operating profit divided by the monthly average of equity plus net debt for the same period.
30.9.17 30.9.16 31.3.17
£ million £ million £ million
Average net debt 921.8 685.1 878.5
Average equity 2,093.3 1,946.0 1,937.1
Average capital employed 3,015.1 2,631.1 2,815.6
Underlying operating profit for this period (note 4) 250.3 236.1 513.3
Underlying operating profit for prior year (note 4) 513.3 450.8
Underlying operating profit for prior first half (note 4) (236.1) (225.0)
Annualised underlying operating profit 527.5 461.9 513.3
ROIC 17.5% 17.6% 18.2%
30.9.17 30.9.16 31.3.17
£ million £ million £ million
Inventories 911.7 855.0 772.3
Trade and other receivables 1,140.8 1,039.3 1,139.4
Trade and other payables (899.1) (868.2) (968.3)
Total working capital 1,153.4 1,026.1 943.4
Less precious metal working capital (477.4) (367.5) (335.5)
Working capital (excluding precious metals) 676.0 658.6 607.9
Six months ended Year ended
30.9.17 30.9.16 31.3.17
£ million £ million £ million
EBITDA 327.1 310.8 665.0
Depreciation and amortisation (86.7) (84.3) (171.8)
Major impairment and restructuring charges (note 6) (18.5) - -
Finance costs (19.9) (18.9) (38.7)
Finance income 3.5 2.5 6.9
Share of (loss) / profit of joint venture and associate (0.8) (0.1) 0.2
Income tax expense (36.2) (32.9) (77.0)
Profit for the period 168.5 177.1 384.6
EBITDA for this period 327.1 310.8 665.0
EBITDA for prior year 665.0 590.1
less EBITDA for prior first half (310.8) (292.6)
Annualised EBITDA 681.3 608.3 665.0
Net debt (890.9) (896.8) (715.7)
Pension deficits (60.0) (190.9) (55.6)
Bonds purchased to fund pensions (excluded when UK pension plan is in surplus) - 58.1 -
Related deferred tax 15.1 28.0 12.8
Net debt (including post tax pension deficits) (935.8) (1,001.6) (758.5)
Net debt (including post tax pension deficits) to EBITDA 1.4 1.6 1.1
Net cash flow from operating activities 7.8 123.9 522.9
Dividends received from joint venture 0.6 - -
Interest received 1.4 1.5 4.8
Interest paid (19.5) (19.9) (42.1)
Purchases of non-current assets and investments (81.2) (108.1) (259.5)
Proceeds from sale of non-current assets and investments 0.5 0.2 3.9
Free cash flow (90.4) (2.4) 230.0
Financial Calendar
2017
30th November
Ex dividend date
1st December
Interim dividend record date
2018
6th February
Payment of interim dividend
31st May
Announcement of results for the year ending 31st March 2018
7th June
Ex dividend date
8th June
Final dividend record date
26th July
127th Annual General Meeting (AGM)
7th 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 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
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.
This information is provided by RNS
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