Transforming
for growth
Annual Report and Accounts 2024
We are transforming into an industry-leading energy transition company
For over 200 years Johnson Matthey has contributed to solving the world’s toughest problems.
But now is the time to make our biggest impact yet.
The world’s leading energy, chemicals and automotive companies depend on us to help them decarbonise and reduce harmful emissions.
To fully play our part, we too are changing.
Purpose led, performance driven
2023/24 highlights
Our purpose
is to catalyse
the net zero
transition for our customers
Clean Air
£274m
underlying profit
up 26% on previous year*
Pioneering clean air technology
for 50 years and beyond
Transformation
£75m
savings in 2023/24
Sustainability
89%
sales from products contributing
to priority UN SDGs
Safety
23%
improvement in safety
(total recordable injury
and illness rate) from 2023
Catalyst Technologies
+56%
underlying operating profit
(£75m)*
Delivering decarbonisation at
scale with low carbon hydrogen
A-
Climate change rating 2023
A circular solution:
JM’s HyRefine™ technology
Revenue
£12.84bn
GHG emissions avoided
1.1 million
tonnes CO₂e
through customer use of
technologies enabled by JM products
Underlying profit
+11%
at constant FX and adjusting
for precious metal prices
* At constant exchange rates.
Patrick Thomas
Chair
“Just as we continue to innovate the latest generation of clean air solutions, so we are harnessing the transformative power of platinum group metals to enable new solutions, from fuel cell electric vehicles to the production of sustainable aviation fuel.”
Liam Condon
Chief Executive Officer
“By reshaping our business, we are positioning Johnson Matthey for long-term growth at the heart of the energy transition.”
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An inflection point
for PGM technology
A year of
progress at pace
Transforming Johnson Matthey
for growth
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Exactly 50 years ago, the first commercially produced catalytic converters rolled off the production line at Johnson Matthey’s facilities in Royston, UK and Devon, Pennsylvania.
At JM our strategy is clear: we are a sustainable technology company that plays to win with leading positions in key markets that depend on innovation. Our innovation allows our customers in the automotive, chemical and energy industries to decarbonise at pace and helps ensure cleaner air for all.
By reshaping our business, we are positioning Johnson Matthey for long-term growth at the heart of the energy transition.
As it had already been doing for over 150 years, JM had used its deep knowledge of precious metals to create technology that would help solve one of the world’s problems – this time to tackle appalling air pollution. JM had then persuaded regulators around the world of the technology’s effectiveness.
Since then, several billion catalytic converters have been produced, many of them by JM, with countless lives saved or significantly enhanced by their removal of pollutants.
I believe we are now seeing another inflection point for our unique technological and metals know-how. Just as we continue to innovate the latest generation of clean air solutions, so we are harnessing the transformative power of platinum group metals (PGMs) to enable new solutions, from fuel cell electric vehicles to the production of sustainable aviation fuel.
PGMs will be key enablers of the clean energy transition, and offer several benefits over other metals that will also play major roles (such as copper, nickel and lithium). For example PGMs have a mature, global supply chain which won’t require massive expansion to meet the needs of the energy transition and they offer a sustainable, circular solution since they are already recycled with very high efficiency.
Our strategy is purpose-driven: to catalyse the net zero transition for our customers. The energy transition will not be a linear journey and is dependent on many factors coming together including regulation and incentives, infrastructure and supply chains. In a complex world striving towards net zero, where politics and practicality interplay, JM is well placed to succeed by understanding the markets, taking opportunities, and being flexible enough to allocate capital accordingly. Given the strength of our portfolio, we are well positioned to create significant value for both shareholders and society.
To achieve our purpose of catalysing the net zero transition at scale, JM itself needs to transform, become even more efficient and build a stronger foundation for growth. This year we have made significant progress towards achieving this.
Winning in our markets
Our performance for the year has been in line with expectations, with good growth in underlying operating profit when allowing for exchange rates and metal prices. Overall results continue to be impacted by lower platinum group metal (PGM) prices.
The slowdown in global battery electric vehicle (BEV) penetration means Clean Air will be ‘stronger for longer’ – driving more than £4.5 billion of cash by 2030/31 and significant further cash flow beyond that. Our cash generative ability has already delivered
£2 billion in Clean Air since 2021/22, which has been used for investment in growth and shareholder returns.
In Catalyst Technologies, we are seeing significant end market demand across our new growth areas including sustainable aviation fuel and low carbon hydrogen. This year we have seen important ‘first of a kind’ project wins, including two large-scale low carbon (blue) hydrogen projects. We also have a portfolio of innovative technologies for creating sustainable fuels, and during 2023/24 we secured four sustainable fuels projects across our Fischer Tropsch (FT) CANS™ technology and sustainable methanol.
In Hydrogen Technologies, it is very clear that green hydrogen will be essential in tackling climate change and helping the world to decarbonise. The global green hydrogen value chain is still at an early stage of development as the industry navigates the challenge around scale up, and is not yet growing at the pace we expected. We have a disciplined approach to investment and plan to grow our Hydrogen Technologies business in line with the pace of market development.
Platinum Group Metal (PGM) Services is our foundational business and forms the backbone of everything we do. Circularity is an essential part of the energy transition and our PGM expertise strengthens our position in key markets through our ability
to offer a full-service business model. We can deliver circular solutions for customers ensuring a reliable supply of lower
carbon footprint PGMs.
When I joined the company two years ago, it was primarily known as a tier-two automotive catalyst supplier with a history of innovation. But the leadership team and I recognised that JM is well-positioned to be so much more than that. It is a hub of scientific expertise, ambition and experience in delivering solutions that create sustainable value and contribute to a cleaner, healthier world.
We announced an ambitious change programme to enable us to meet the challenges now faced by our customers. We are executing on our transformation at pace across the business, creating a more streamlined, efficient and commercially focused organisation. We are strengthening our capabilities, simplifying our operating model and driving improved performance.
Our business model:
synergies in metals chemistry
Clean
Air
Aim: continue to lead in autocatalyst markets
Catalyst Technologies
Aim: #1 in
syngas‐based chemicals and fuels technology
Hydrogen Technologies
Aim: market leader in performance components for fuel cells and electrolysers
Platinum Group Metal (PGM) Services
Aim: #1 global PGM refiner
c. 80%
PGMs used in our products are internally refined
Our strategy
We are playing to win in exciting growth markets where our core competencies and technology portfolio can have maximum impact
Focus
Our expertise in PGM chemistry, catalysis and process technology is the beating heart of JM, and we are maximising synergies across our four business units to achieve a top three position in all our markets.
Simplify
Our transformation programme is enhancing simplification and execution across the entire business. We are becoming a simpler, more agile, and more cost-effective organisation with leaner processes, less duplication and clear lines of accountability.
Execute
Our strategy is underpinned by a rigorous performance culture. By combining science and purpose with a more commercial mindset, we are driving stronger execution, unlocking
near-term cost opportunities and positioning ourselves for long-term growth.
Read more on our strategy
Key performance indicators
Financial performance
Sustainability performance
Revenue
£12,843m
(2022/23: £14,933m)
Sales1 (excluding precious metals)
£3,904m
(2022/23: £4,201m)
Operating profit
£249m
(2022/23: £406m)
Underlying operating profit1
£410m
(2022/23: £465m)
Sales contributing to our four priority UN Sustainable Development Goals (SDGs)
89%
(2022/23: 82%)
R&D spend contributing to our
four priority SDGs
92%
(2022/23: 90%)
Total Scope 1 and 2 GHG emissions (market-based)1
282,403 tCO2e
(2022/23: 344,910)
Total Scope 3 (Category 1) purchased goods and services
GHG emissions1
2,531,576 tCO2e
(2022/23: 2,450,529)
Clean Air cash flow
£625m
(2022/23: £638m)
Earnings per share
58.6p
(2022/23: 144.2p)
Underlying earnings per share1
141.3p
(2022/23: 178.6p)
Ordinary dividend per share
77.0p
(2022/23: 77.0p)
GHG emissions avoided from
our technologies (compared
to conventional offerings)1
1,110,057 tCO2e
(2022/23: 841,721)
Recycled PGM content in JM’s manufactured products
69%
(2022/23: 69%)
Total recordable injury and illness rate (employees and contractors)
0.36
(2022/23: 0.47)
Female representation across all management levels
30%
(2022/23: 28%)
KPI linked to remuneration policy
1. Prior year rebaselined to remove divested businesses.
1. Non-GAAP measures are defined and reconciled in note 34 of the financial statements, refer to pages 194-196 the financial statements.
KPI linked to remuneration policy
Key performance indicators are from continuing operations.
Clean Air
Platinum Group Metal Services
Hydrogen
Technologies
Catalyst Technologies
A growth-focused solutions provider in the chemicals and energy space
Designs and manufactures emission control catalysts to reduce harmful pollutants, e.g. NOx, from vehicle exhausts and a range of stationary sources.
“As the world is also looking to convert alternative feedstocks for energy and fuels, we are operating in markets with enormous growth potential.”
Maurits van Tol
Chief Executive
Catalyst Technologies
Clean Air
Platinum Group Metal Services
Catalyst Technologies
Hydrogen
Technologies
Adapting to a dynamic market, delivering growth and driving efficiencies
Designs and manufactures emission control catalysts to reduce harmful pollutants, e.g. NOx, from vehicle exhausts and a range of stationary sources.
“Collaboration along the whole
of the hydrogen value chain is essential for the energy transition to be successful. Recent market developments accentuate the need for partnerships."
Mark Wilson
Chief Executive
Hydrogen Technologies
Clean Air
Platinum Group Metal Services
Harnessing PGMs to enable the energy transition
Catalyst Technologies
Hydrogen
Technologies
Designs and manufactures emission control catalysts to reduce harmful pollutants, e.g. NOx, from vehicle exhausts and a range of stationary sources.
“This year saw us develop
our product pipeline, deliver operational efficiencies, invest in our assets and pioneer a new circularity solution for the hydrogen economy.”
Alastair Judge
Chief Executive
Platinum Group Metal Services (PGMS)
Platinum Group Metal Services
Catalyst Technologies
Hydrogen
Technologies
Clean Air
Leading emission control and reduction technology, for today and tomorrow
Designs and manufactures emission control catalysts to reduce harmful pollutants, e.g. NOx, from vehicle exhausts and a range of stationary sources.
“We are fully focused on delivering our cash generation target, further strengthening our commercial capabilities, winning our targeted business and driving efficiencies.”
Anish Taneja
Chief Executive, Clean Air and Chair
of the Group Commercial Council
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Designs and licenses process technology, and designs and manufactures catalysts for a wide range of processes used in the energy and chemicals industries to create products used in transportation fuels, fertilisers, wood products, paints, coatings and polymers.
“As the world is also looking to convert alternative feedstocks for energy and fuels, we are operating in markets with enormous growth potential.”
Maurits van Tol
Chief Executive, Catalyst Technologies
Catalyst Technologies
A growth-focused solutions provider in the chemicals and energy space
Designs and manufactures the key performance-defining components (catalyst-coated membranes) used at the heart of fuel cells and electrolysers for the creation of electrolytic (green) hydrogen.
“Collaboration along the whole
of the hydrogen value chain is essential for the energy transition to be successful. Recent market developments accentuate the need for partnerships."
Mark Wilson
Chief Executive, Hydrogen Technologies
Hydrogen
Technologies
Adapting to a dynamic market, delivering growth and driving efficiencies
Supports customers with short and long-term metal planning and supply management; refines and recycles both used and mined PGMs; and processes metal into more complex, value-added products for a vast array of uses.
“This year saw us develop
our product pipeline, deliver operational efficiencies, invest in our assets and pioneer a new circularity solution for the hydrogen economy.”
Alastair Judge
Chief Executive, Platinum Group Metal (PGM) Services
Platinum Group Metal Services
Harnessing PGMs to enable the energy transition
Designs and manufactures emission control catalysts to reduce harmful pollutants, e.g. NOx, from vehicle exhausts and a range of stationary sources.
“We are fully focused on delivering our cash generation target, further strengthening our commercial capabilities, winning our targeted business and driving efficiencies.”
Anish Taneja
Chief Executive, Clean Air
Clean Air
Leading emission control and reduction technology, for today and tomorrow
Clean Air
Platinum Group Metal Services
Harnessing PGMs to enable the energy transition
Platinum Group Metal Services
Catalyst Technologies
Hydrogen
Technologies
Chief Financial
Officer’s statement
Stephen Oxley
Chief Financial Officer
“As we execute on our strategy we are focused on driving sustainable value creation, targeting high single digit growth in underlying operating profit over the medium-term and strong long term growth.”
We have performed well this year, delivering 11% growth in underlying operating performance, when adjusted for metal prices and exchange rates. However, significantly lower platinum group metals (PGM) prices have again impacted our overall results, with revenue down 14% to £12.8 billion. Sales were down 4% at £3.9 billion at constant exchange rates. During the year we managed to partly mitigate this through better pricing and transformation benefits across the group.
Sustainability
We are a global leader in sustainable technologies. Through inspiring science and continued innovation, we aspire to enhancing life for everyone. That is why we have firmly embedded our sustainability priorities of climate, nature and circularity, safety and diversity throughout our business and value chain.
Our approach to sustainability
Planet: Protecting the climate
Our company purpose is to catalyse the net zero transition because we believe this represents the biggest benefit we can bring to society.
Planet: Protecting nature and advancing the circular economy
We commit to promoting nature protection, restoration and sustainable use of natural resources.
Catalysing the net zero transition
People: Promoting a safe, diverse and equitable society
We rely on our 11,600+ talented and passionate employees to drive our purpose.
Sustainable Development Goals
Our products and services are aligned with four of the UN SDGs where we believe we can make the biggest positive contributions.
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Emission control technologies that reduce harmful oxides of nitrogen (NOx) and particulates from vehicle tailpipes and stationary engines, enabled by PGMs
Purification technologies that reduce harmful contaminants, such as mercury, from industrial processes
Refinery additives to mitigate NOx and oxides of sulphur (SOx) emissions
Catalysts used to make pharmaceutical ingredients
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PGM recycling to recover and reuse scarce resources
Chloride guards to prevent corrosion
PURACARETM services to reduce maintenance lifetime and end-of-life recovery
CAT-AIDTM products to extend catalyst life
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Renewable (green) hydrogen technologies that will support the drive to zero carbon hydrogen production using renewable energy and electrolysis, enabled by PGMs
Low carbon (blue) hydrogen technologies that are available today to help make low-carbon hydrogen at scale
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Technologies that turn high sources of carbon, such as household waste, into sustainable aviation fuels
Fuel cell components for low-carbon transportation and distributed power unit
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Sustainability reporting