REG - Johnson Matthey PLC - Half Yearly Report <Origin Href="QuoteRef">JMAT.L</Origin> - Part 3
19/11/2015 07:00
- Part 3: For the preceding part double click ID:nRSS2096Gb
to be paid is £39.6
million and has not been recognised in these accounts. The board is also recommending a special dividend to shareholders
of 150.0 pence per ordinary share which will be paid on 2nd February 2016 to shareholders on the register at the close of
business on 8th January 2016. The amount to be paid is approximately £305 million and has not been recognised in these
accounts.
Six months ended Year ended
30.9.15 30.9.14 31.3.15
£ million £ million £ million
2013/14 final ordinary dividend paid ─ 45.5 pence per share - 92.3 92.3
2014/15 interim ordinary dividend paid ─ 18.5 pence per share - - 37.6
2014/15 final ordinary dividend paid ─ 49.5 pence per share 100.5 - -
Total dividends 100.5 92.3 129.9
7 Earnings per ordinary share
The calculation of earnings per ordinary share is based on a weighted average of 203,050,798 shares in issue (six months
ended 30th September 2014 202,949,119 shares, year ended 31st March 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 96,194 shares (six months ended 30th September 2014 621,712 shares, year ended 31st March 2015 500,635
shares).
Underlying earnings per ordinary share are calculated as follows:
Six months ended Year ended
30.9.15 30.9.14 31.3.15
£ million £ million £ million
Profit for the year attributable to equity holders of the parent company 280.0 173.7 428.7
Profit on sale or liquidation of businesses (note 4) (130.9) - (73.0)
Amortisation of acquired intangibles (note 5) 9.0 8.6 17.3
Tax thereon 17.2 (2.2) (6.4)
Underlying profit for the year 175.3 180.1 366.6
pence pence pence
Basic underlying earnings per share 86.3 88.7 180.6
8 Net debt
30.9.15 30.9.14 31.3.15
£ million £ million £ million
Cash and deposits 481.2 133.0 59.4
Bank overdrafts (17.3) (25.1) (55.5)
Cash and cash equivalents 463.9 107.9 3.9
Other current borrowings, finance leases and related swaps (29.3) (172.1) (234.7)
Current interest rate swaps - 2.1 -
Non-current interest rate swaps 17.2 11.1 19.0
Non-current borrowings, finance leases and related swaps (893.0) (751.0) (782.6)
Net debt (441.2) (802.0) (994.4)
Offset arrangements across group businesses have been applied to arrive at the cash and deposits and bank overdrafts
figures. At 30th September 2015 the offsets were £158.8 million (30th September 2014 £122.7 million, 31st March 2015 £63.1
million).
9 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 30th September 2015 precious metal leases
were £55.4 million (30th September 2014 £53.1 million, 31st March 2015 £18.7 million).
10 Transactions with related parties
There have been no material changes in related party relationships in the six months ended 30th September 2015 and no other
related party transactions have taken place which have materially affected the financial position or performance of the
group during that period.
11 Post-employment benefits
The group has updated the valuation of its main post-employment benefit plans, which are its UK and US pension plans and US
post-retirement medical benefits plan, at 30th September 2015.
Movements in the net post-employment benefits assets and liabilities 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 (19.0) - (5.1) (0.7) (0.8) (25.6)
Net interest (1.5) (0.2) (0.5) (0.9) (0.2) (3.3)
Curtailment gain - - 1.1 - - 1.1
Past service cost - - (0.2) - - (0.2)
Remeasurements 66.9 - 5.1 2.0 - 74.0
Company contributions 25.4 - 4.2 - 1.2 30.8
Exchange adjustments - - 0.8 1.1 (1.1) 0.8
At 30th September 2015 (5.4) (11.2) (21.2) (45.1) (33.2) (116.1)
These are included in the balance sheet as:
30.9.15 30.9.15 30.9.14 30.9.14 31.3.15 31.3.15
Post- Post- Post-
employment Employee employment Employee employment Employee
benefits benefits benefits benefits benefits benefits
net assets obligations net assets obligations net assets obligations
£ million £ million £ million £ million £ million £ million
UK pension plan - (5.4) - (77.7) - (77.2)
UK post-retirement medical benefits plan - (11.2) - (9.6) - (11.0)
US pension plans - (21.2) - (16.8) - (26.6)
US post-retirement medical benefits plan 5.2 (50.3) 5.1 (45.6) 6.1 (52.7)
Other plans 1.0 (34.2) 3.4 (24.9) 0.8 (33.1)
Total post-employment plans 6.2 (122.3) 8.5 (174.6) 6.9 (200.6)
Other long term employee benefits (3.0) (2.5) (2.8)
Total long term employee benefits obligations (125.3) (177.1) (203.4)
12 Acquisitions
On 18th May 2015 the group acquired 100% of Stepac L.A. Ltd. and its subsidiaries plus related assets for £20.3 million.
13 Post balance sheet event
After 30th September 2015 the group has commenced a restructuring programme, particularly in Process Technologies. The
estimated cost is around £40 million and will be excluded from underlying profit.
14 Financial Instruments
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. The fair values
are estimated by discounting the future contractual cash flows using appropriate market sourced data at the balance sheet
date.
• Level 3 ─ not based on observable market data (unobservable).
Financial instruments measured at fair value are:
30.9.15 30.9.15 30.9.14 30.9.14 31.3.15 31.3.15
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 50.7 - 52.7 - 54.4 -
Quoted available-for-sale investments included in:
Non-current investments 1.0 - - - - -
Interest rate swaps included in:
Non-current assets - 17.2 - 11.1 - 19.0
Current assets - - - 2.1 - -
Current liabilities - (0.4) - (0.8) - (0.5)
Non-current liabilities - - - (5.8) - -
Forward foreign exchange and precious metal price
contracts and currency swaps included in:
Current other financial assets - 13.6 - 10.0 - 14.4
Current other financial liabilities - (10.9) - (5.8) - (25.5)
The fair value of financial instruments is approximately equal to book value except for:
30.9.15 30.9.15 30.9.14 30.9.14 31.3.15 31.3.15
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
£ million £ million £ million £ million £ million £ million
US Dollar Bonds 2015, 2016, 2022, 2023, 2025
and 2028 (522.1) (518.6) (606.0) (603.0) (536.9) (536.7)
Euro Bonds 2021 and 2023 (88.9) (103.8) (93.5) (110.6) (87.4) (104.0)
Euro EIB loans 2019 (91.9) (94.7) (96.6) (101.0) (90.3) (94.6)
Sterling Bonds 2024 (65.0) (67.1) (65.0) (65.8) (65.0) (69.8)
Other bank loans repayable from two to three years (1.6) (1.2) - - (1.9) (1.3)
Unquoted investments included in non-current available-for-sale investments are held at cost at 30th September 2015 of £8.4
million (30th September 2014 £8.5 million, 31st March 2015 £8.4 million) as their fair value cannot be measured reliably.
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.
Financial Calendar
2015
16th December
General Meeting
2016
7th January
Ex dividend date (interim dividend)
8th January
Record date (interim dividend, special dividend and share consolidation)
11th January
Ex dividend date (special dividend)
Share consolidation takes effect (subject to approval at the General Meeting)
2nd February
Payment of interim dividend
Payment of special dividend (subject to approval at the General Meeting)
2nd June
Announcement of results for the year ending 31st March 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
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 Datafor the six months ended 30th September 2015 Group Highlights (Underlying Results)
Six months ended % at Six months ended
30.9.15 30.9.14 constant 30.9.15 30.9.14
£ million £ million % rates £ million £ million %
Sales excluding precious metals 1,588 1,514 +5 +4 Earnings per share (pence) 86.3 88.7 -3
Operating profit 225.0 234.1 -4 -4 Dividend per share (pence) 19.5 18.5 +5
Net finance costs (16.8) (17.9) +6 Total research and development 91.6 80.1 +14
Share of profit of joint venture 0.1 0.2 Pension costs 28.9 21.8 +33
Profit before tax 208.3 216.4 -4 Net cash flow from operating activities 545.2 163.2
Income tax expense (33.7) (37.2) Capital expenditure 98.1 71.3
Profit after tax 174.6 179.2 -3 Net debt (441.2) (802.0)
Divisional Highlights
ECT Process Technologies PMP Fine Chemicals New Businesses
Six months ended Six months ended Six months ended Six months ended Six months ended
30.9.15 30.9.14 30.9.15 30.9.14 30.9.15 30.9.14 30.9.15 30.9.14 30.9.15 30.9.14
£ million £ million % £ million £ million % £ million £ million % £ million £ million % £ million £ million %
Sales excl. precious metals 939 869 +8 283 283 - 165 193 -15 157 155 +1 72 37 +98
Underlying operating profit 136.0 118.1 +15 35.9 49.7 -28 36.1 52.0 -31 40.6 41.8 -3 (9.9) (12.0) +18
Return on sales 14.5% 13.6% 12.7% 17.6% 21.9% 26.9% 25.9% 26.9% n/a n/a
Return on invested capital 25.2% 23.4% 12.3% 15.0% 19.3% 32.9% 17.6% 18.4% n/a n/a
Divisional Sales Excluding Precious Metals Detail Average Exchange Rates
Six months ended % at Six months ended
30.9.15 30.9.14 constant 30.9.15 30.9.14 %
£ million £ million % rates USD/GBP 1.54 1.68 -8
LDV Europe 339 305 +11 +17 EUR/GBP 1.39 1.24 +12
LDV Asia 136 123 +11 +9 RMB/GBP 9.64 10.39 -7
LDV North America 99 89 +11 +2
LDV 574 517 +11 +12 Average Metal Prices
HDD North America (on road) 209 180 +16 +7 Six months ended
HDD Europe (on road) 93 94 -1 +7 30.9.15 30.9.14
HDD Asia (on road) 21 24 -10 -11 $/oz $/oz %
Other 42 54 -24 -24 Platinum 1,064 1,447 -26
HDD 365 352 +3 +1 Palladium 691 849 -19
ECT 939 869 +8 +8
Syngas 87 81 +6 +7
Oleo/biochemicals 26 35 -24 -23 Market Data
Petrochemicals 46 43 +7 +6 Estimated LDV Sales and Production *
Chemicals 159 159 - - Six months ended
Refineries 61 66 -7 -12 30.9.15 30.9.14
Gas Processing 31 21 +50 +50 million million %
Diagnostic Services 32 37 -13 -13 North America Sales 10.7 10.3 +5
Oil and Gas 124 124 +1 -2 Production 9.0 8.4 +6
Process Technologies 283 283 - -1 Europe Sales 9.3 8.9 +4
Precious Metals Management 9 9 +3 +1 Production 10.0 10.3 -3
Refining 31 52 -40 -42 Asia Sales 18.1 18.2 -
Services 40 61 -34 -36 Production 21.3 22.7 -6
Noble Metals 64 69 -6 -7 Global Sales 43.7 43.2 +1
Advanced Glass Technologies 36 41 -15 -10 Production 42.9 44.1 -3
Chemical Products 25 22 +15 +10
Manufacturing 125 132 -5 -5 Estimated HDD Truck Sales and Production *
PMP 165 193 -15 -15 Six months ended
API Manufacturing 98 100 -2 -7 30.9.15 30.9.14
Catalysis and Chiral Technologies 21 18 +18 +17 thousand thousand %
Research Chemicals 38 37 +2 - North America Sales 283.3 257.4 +10
Fine Chemicals 157 155 +1 -3 Production 284.0 271.9 +4
Battery Technologies 62 35 +79 +97 EU Sales 148.3 129.7 +14
Fuel Cells 4 2 +169 +169 Production 206.0 185.4 +11
Other 6 - n/a n/a * Source: LMC Automotive
New Businesses 72 37 +98 +116
Eliminations (28) (23) -26 -22
Group 1,588 1,514 +5 +4
This information is provided by RNS
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