Presentation of Results for the half year ended 30th September 2003 Johnson Matthey E Presentation of Results for the half year ended 30th September 2003 27th November 2003

Johnson Matthey E

Overview Operating profit up 13% to £103.1 million PBT up 4% to £97.5 million, EPS up 5% to 31.8p Strong growth in Catalysts with good contribution from former Synetix businesses Good performance from Pharmaceutical Materials Renewed long term contracts agreed with Anglo Platinum Group to divest Structural Ceramics and Speciality Coatings

Johnson Matthey E

Summary Results 1H 1H 2003 2002 restated £m £m % 2003 2002 restated £m £m % Turnover 2,165 2,247 -4 Sales excluding precious metals 625.1 562.1 +11 Operating profit* 103.1 91.0 +13 Interest (8.5) (4.3) Net return on pension 2.9 7.0 Profit before tax* 97.5 93.7 +4 Exceptional items - - Goodwill amortisation (9.9) (4.8) EPS * 31.8p 30.4p +5 Dividend 8.2p 7.8p +5 * Before goodwill amortisation

*Excluding South African rand Operating Profit 1H 1H 2003 2002 restated £m £m % Catalysts 56.5 44.0 +28 Precious Metals 21.9 24.2 -10 Colours & Coatings 11.8 11.6 +2 Pharmaceutical Materials 20.7 19.1 +8 Corporate (7.8) (7.9) 103.1 91.0 +13 *Excluding South African rand 1H 2003 at 1H 2002 exchange rates* £m % 58.1 +32 22.3 -8 11.0 -5 21.5 +13 (7.8) 105.1 +15

Geographical Split Operating Profit 2002 restated £91.0m 1H 2003 £103.1m 15% 16% 28% 7% 37% 12% 49% 36% Europe Asia North America Rest of the World

Interest 1H 1H 2003 2002 £m £m Financial (8.0) (3.7) 2003 2002 £m £m Financial (8.0) (3.7) Gold & silver leases (0.5) (0.6) (8.5) (4.3)

Net Return on Retirement Benefits Assets and Liabilities 1H 1H 2003 2002 restated £m £m Expected return on scheme assets 18.8 23.3 Interest on scheme liabilities (15.9) (16.3) 2.9 7.0

Taxation 1H 1H 2003 2002 restated £m £m Underlying tax 29.2 27.8 2003 2002 restated £m £m Underlying tax 29.2 27.8 Tax on goodwill amortisation (1.2) - 28.0 27.8 Underlying tax rate 29.9% 29.7%

Net Cash Flow 1H 1H 2003 2002 restated £m £m 2003 2002 restated £m £m Operating profit 93.0 86.2 Depreciation and amortisation 41.0 29.9 Working capital / other 8.4 (0.4) Cash flow from operations 142.4 115.7 Interest / tax / dividends (66.2) (60.5) Capex (62.4) (58.3) Acquisitions / disposals 2.2 1.0 Shares issued / (bought) 3.5 1.7 Net cash flow 19.5 (0.4)

Capital Sep 03 Mar 03 restated £m £m Net debt 380 402 Equity and minorities 860 811 Capital employed 1,240 1,213 Gearing 44% 50% (debt / equity + minorities) Interest cover 12x 14x

Catalysts Division ECT ahead with growth in Asia and HDD Strong performance from PCT 1 Restated for FRS 17

Environmental Catalysts and Technologies US light vehicle sales 1% down, production more than 7% lower European sales slightly up, production 2% down on last year Car sales in China strongly ahead spearheading good growth in Asia Excellent progress in heavy duty diesel catalysts

Global HDD Legislation EU III (2000) EU IV (2005) EU V (2008) US 2004 US 2007 US 2010 Japan 2003 Japan 2005 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 NOx emissions (g/kW-hr) Particulate matter emissions (g/kW-hr) JM current technology

Heavy Duty Diesel Full portfolio of HDD technologies Strong market position, proven durability Retrofit programmes in cities around the world Opportunities in light duty diesel markets

Process Catalysts and Technologies Successful integration of Synetix Good growth in process catalysts PGM refining business continues to be affected by weak palladium prices Research Chemicals business again performs well

Process Catalysts and Technologies Focus on seven catalyst markets Leading positions in each of these segments Major strategic growth opportunity in GTL

Fuel Cells Numbers of pre-commercial small stationary fuel cells almost double Vehicle test fleets continue to expand Growing demand for MEA products from Swindon

Precious Metals Fall in palladium and rhodium prices Platinum demand remains robust 1 Restated for FRS 17

Platinum, Palladium and Rhodium Prices US$

Precious Metals PGM basket price very similar to last year Strong platinum price offset by much weaker palladium and rhodium Continued decline in trading activity Fabricated pgm businesses continue to perform well Gold refining business down. Margins remain under pressure

Precious Metals Renewed Anglo Platinum contracts Carries relationship well into next decade Short term fall in group income Income will grow as pgm sales increase Underpins longer term growth of division

Pharmaceutical Materials Good growth in profits Strong performances from West Deptford and Macfarlan Smith 1 Restated for FRS 17

Pharmaceutical Materials West Deptford – increased sales of controlled substances and platinum drugs Macfarlan Smith – profits well ahead with good growth in sales of specialist opiates Pharm-Eco – weak market in first quarter, however gained new business and market since recovered

Pharmaceutical Materials New opiates facility at West Deptford completed. In production by end of fiscal year New production capacity for specialist products at Macfarlan Smith Significant progress on prostaglandins New product pipeline increased to 71 compounds in development, with several new products introduced this year

Colours & Coatings Good progress despite mixed markets Glass performs well 1 Restated for FRS 17

Colours & Coatings Good growth in Glass business Structural Ceramics down in weak markets Speciality Coatings benefits from lower costs

Colours & Coatings Strategic review by Board Invite offers for combined Structural Ceramics and Speciality Coatings businesses Retain businesses with close links to rest of Johnson Matthey

Outlook Further growth from Catalysts and Pharmaceutical Materials PMD impacted by renewed Anglo Platinum contracts Currency effect – impact of weak US dollar Confident of growth in earnings and dividends

Longer Term Outlook Major growth opportunities in Catalysts, Fuel Cells and Pharmaceutical Materials Renewed Anglo Platinum contracts underpin long term growth of Precious Metals

Johnson Matthey E