REG - Johnson Matthey PLC - Response to Letter from Standard Investments

Johnson MattheyAnnouncement

08/01/2025 08:45

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RNS Number : 5700S  Johnson Matthey PLC  08 January 2025

8 January 2025

 

 

Johnson Matthey Plc

(the Company)

 

 

 

Response to Letter from Standard Investments Dated 7 January 2025

The Board of Johnson Matthey Plc ("JM") notes the letter from Standard
Investments that it published on 7 January 2025. The Board of JM has had a
dialogue with Standard Investments since it became a shareholder in 2022.

 

On 16(th) December 2024, Standard Investments published a letter to the Board.
In its private response to Standard Investments on 24 December, JM stated that
it had previously discussed most of the matters in the letter of 16 December
with Standard Investments, and that these remain a priority for the Board. In
order to discuss the governance aspects raised in Standard Investments'
letter, JM proposed that Standard Investments should also meet with Barbara
Jeremiah given her roles as Senior Independent Director and Chair-designate of
a new Investment Committee of the Board that is to be formed. JM's response of
24 December is included below to provide all JM shareholders with the context.

 

The Board and management team reiterate they are resolute in their focus on
improving JM's share price performance and delivering value for shareholders.
JM is fully committed to driving enhanced performance, higher cash flow and
stronger capital discipline. JM is making progress in a challenging market
environment through delivery of a comprehensive transformation strategy which
includes significant manufacturing footprint consolidation in Clean Air, a
generational upgrade in our PGM refining capabilities, significant cost
reduction, the implementation of a global business services model and
extensive organisational changes. In addition, we have made substantial
commercial progress, winning new business across all our business areas that
will drive future growth. We will continue to act with a strong sense of
urgency as we adapt this strategy to the evolving market situation.

 

A further update will be provided as appropriate.

 

 

 Enquiries:

 Investor Relations

 Martin Dunwoodie    Director of Investor Relations and Treasury   +44 20 7269 8241

 Louise Curran       Head of Investor Relations                    +44 20 7269 8235

 Media               Group External Relations Director             +44 20 7269 8218

 Sinead Keller       Teneo                                         +44 7799 152148

 Harry Cameron

 

 

Johnson Matthey Plc is listed on the London Stock Exchange (JMAT)

Registered in England & Wales number: 00033774

Legal Entity Identifier number: 2138001AVBSD1HSC6Z10

 

 

Letter from JM to Standard Investments dated 24 December 2024

 

Standard Investments

9 West 57th Street

47th Floor

New York, NY 10019

 

For the attention of David Millstone and David Winter

 

24 December 2024

 

Dear David and David,

 

The Board has reviewed and discussed your letter dated 16 December 2024.
Notwithstanding our strategic and operational progress to date, we recognise
the importance of delivering a sustained improvement in Johnson Matthey's
share price performance, with a deeper focus on higher cash generation and
returns for shareholders. We remain resolute in our focus on this. We have
previously discussed most of the matters in your letter, which remain a
priority for the Board, but wanted to provide a response to your comments on
the governance aspects specifically.

 

We have a Board with a strong mix of skills and expertise to both support
management and also provide appropriate rigour and challenge. Our Board has
experience across specialty chemicals, a broad range of end markets (including
automotive), finance, M&A and portfolio management. It has also been
refreshed with three new directors having joined the Board in the past ~3
years (out of the current seven non-executive directors), with a new CFO
joining in the coming months.

 

Specifically, Sinead Lynch joins the Board on 1 January 2025 as a
Non-Executive Director. She was previously the Senior Vice President of Low
Carbon Fuels at Shell, and brings directly relevant expertise in assessing the
commercial prospects of energy transition businesses and driving them to
profitability.

 

In addition, Barbara Jeremiah joined our Board in July 2023 as our Senior
Independent Director. Barbara spent over 30 years at Alcoa and retired
Executive Vice President for Corporate Development, leading mergers,
acquisitions, divestitures and strategy. She is Chair of Weir Group plc and a
non-executive director at Senior plc. Beyond Barbara's understanding of metals
and North American markets, she is highly regarded across our investor base.
Since joining the Board, Barbara has provided a valued and refreshed
perspective on our group strategy.

 

Barbara will Chair a newly-formed Investment Committee of the Board, which
will have a clear mandate to enhance Johnson Matthey's capital allocation and
investment decisions, and to periodically assess whether alternative options
to the status quo are available to maximise value.

 

Our conversations with you to date have been constructive and we are keen to
continue the dialogue with you. We believe it would be important and useful
for you to meet with Barbara, with whom you have not spent time. Accordingly,
we wish to organise a meeting in January in New York between yourselves and
Barbara to share reflections on governance  and to discuss the Board's
Investment Committee in further detail. If this is agreeable with you, our
team will reach out to your office to identify a convenient date and time for
the three of you to meet.

 

Yours sincerely,

 

 

Patrick Thomas, Chair of the Board of Directors

cc: Liam Condon, Chief Executive Officer

 

 

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