Summary Results

• Sales revenue flat at £7.8 billion
• Sales excluding precious metals up 5% to £1.9 billion. Weak first half with strong improvement in activity in second half of the year
• Underlying profit before tax down 5%
• Strong cash generation with £33.0 million of net cash flow
• Balance sheet remains strong with net borrowings reduced by £61.0 million to £473.4 million
• Full year dividend up by 5% to 39.0 pence reflecting the long term prospects for the group

Business Overview

• Environmental Technologies Division's sales excluding precious metals 10% up at £1,247 million and underlying operating profit 3% down at £120.9 million

• Precious Metal Products Division's revenue up 3% to £5.6 billion, supported by higher average prices for platinum group metals in the second half of the year. Sales excluding precious metals down 6% to £420 million and operating profit down 18% to £116.7 million
• Fine Chemicals Division's sales excluding precious metals up 2% to £219 million and operating profit 13% higher at £55.8 million, which includes the US$ 12 million one-off benefit from the launch of the generic version of ADDERALL XR^®

Business Prospects

• Whilst considerable short term uncertainties about the global economy remain, the group is expected to make good progress in the first half of 2010/11 and underlying profit before tax should be significantly higher than the same period of 2009/10
• Environmental Technologies Division expected to perform well in the first half compared with the first half of 2009/10 with recovery in Emission Control Technologies and continued steady growth in Process Technologies
• With stronger platinum group metal prices and the improvement in demand for its products and services, Precious Metal Products Division's results in the first half of 2010/11 should also be significantly up on the first six months of 2009/10
• Fine Chemicals Division is expected to deliver steady underlying growth but results in the first half of 2010/11 will be impacted by the absence of the one-off benefit in 2009/10 from the launch of the generic version of ADDERALL XR^®

Commenting on the results, Neil Carson, Chief Executive of Johnson Matthey said:

“2009/10 was a challenging year for Johnson Matthey but overall the group performed well. I am pleased that despite the global economic downturn our underlying profit before tax was only 5% down on our record performance in 2008/09.

Johnson Matthey is expected to make good progress in the first half of 2010/11 compared with the same period of 2009/10 but the second half of the year is harder to predict. However, we are confident that the group is well positioned to take advantage of a global economic recovery.

Over the last few turbulent years we have continued to invest in research and development and in expanding production capacity where we see opportunities for growth. This will continue. We have a strong balance sheet, a good business model and are well placed to return to growth. The longer term drivers for the group remain very much in place. Tightening emissions standards, the need for energy security and the drive to reduce the environmental impact of chemical and industrial processes all play to the strengths of Johnson Matthey. Together these give us confidence in the future prospects for the group.”

Review of Year Ended 31st March 2010
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Howard Lee
The HeadLand Consultancy
+44 (0)20 7367 5225

Tom Gough
The HeadLand Consultancy
+44 (0)20 7367 5228