Chair’s statement
“It’s a great privilege to be Chair of Johnson Matthey, a company with a rich history, world class scientific skills and incredibly talented people. Over the last year, the Board has enjoyed working with Liam and his refreshed leadership team as they have injected fresh pace and commercial thinking into the company’s new strategy.”
In May 2022, we launched...
In May 2022, we launched a transformation programme to strengthen our commercial focus, ensuring that we concentrate on the technologies and markets where we have the greatest strength and competitive advantage. This isn’t an overnight fix, but it is already starting to deliver. By creating a more focused portfolio with four business areas, we are driving value creation, taking a much more customer-centric approach in order to seize opportunities with a simplified operating model to drive execution. The Board’s challenge was how to measure and track progress and I am pleased that we are seeing strong performance and growth, delivering against strategic milestones. We are transforming our business at a time when our markets are coming at us faster than ever before. For example, the pace of decarbonisation activities in China have accelerated as it becomes the world’s biggest fuel cell market. The EU has adopted a climate law enshrining its new climate targets of at least a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. And in the US, it is a completely changed regulatory landscape. There has been a lot of noise about the Inflation Reduction Act – it’s quite simply a global game changer, offering $369 billion in subsidies. We will always follow the markets and our customer demand – in the examples above, we are developing partnerships, winning business and helping customers catalyse the net zero transition. I am confident that this will continue to grow over the coming years.
Shareholder engagement
Board focus and changes
Patrick Thomas
Chair
Annual Report 2023
Catalysing the net zero transition
As a global society we face big challenges. Many of the world’s leading energy, chemicals and automotive companies depend on Johnson Matthey’s technology and expertise to decarbonise, reduce harmful emissions and improve their sustainability. Our purpose is to catalyse the net zero transition for our customers, and our strategy is derived from this purpose. In this report we explain some of the ways our solutions are already helping our customers meet their ambitions, and how we will create value for them and wider society over the coming years. Even while we reduce our own operational footprint to achieve net zero by 2040.
We know it’s not enough to be purpose-led: we also need to be performance-driven. If we are to enable this transformation for our customers, we must transform too.
Key performance indicators
Financial performance
Sales¹ (excluding precious metals)
Underlying operating profit¹
Revenue
Operating profit
£14,933m
£4,201m
£406m
£465m
2021/22: £16,025m
2021/22: £3,778m
2021/22: £255m
2021/22: £553m
Clean Air cash flow
(Loss)/ earnings per share
Underlying earnings per share¹
Ordinary dividend per share
£638m
150.9p
178.6p
77.0p
2021/22: £772m
2021/22: (52.6)p
2021/22: 213.2p
2021/22: 77.0p
1. Non-GAAP measures are defined and reconciled in note 34 of the financial statements, refer to report pages 206 - 209. 2. Prior year rebaselined to remove divested businesses, please see report page 222 for more information 3. Prior year restated due to calculation refinement, please see report page 222 for more information
Strategic report
Hear from our Chairman, Patrick Thomas
Hear from our Chief Executive, Liam Condon
Read Chair’s statement
Read Chief Executive’s statement
Our business model
Addressing three markets…
We deliver through our four businesses…
Energy
Designing technologies for a range of sustainable energy sources, including hydrogen, sustainable aviation fuel, methanol and ammonia.
Chemicals
Process and catalyst technologies that enable the production of chemicals, helping customers lower their carbon andenvironmental footprint.
Automotive
Emission control systems that reduce NOx and other particulates that harm people and the environment.
Clean Air
Leading in autocatalyst markets
Catalyst Technologies
#1 in syngas-based chemicals and fuelstechnology
Hydrogen Technologies
Market leader in performance components for fuel cells and electrolysers
Platinum Group Metal Services
#1 global PGM refiner
c.80%
PGMs used in our products are internally refined
Addressing three markets…
We deliver through our four businesses…
By leveraging synergies and competitive advantages…
To create value for stakeholders.
Read our businesses reviews
Hydrogen Technologies
Providing critical components for the emerging hydrogen economy
We are Johnson Matthey
Fighting pollution for 50 years and beyond
A circular economy for a net zero future
Our latest company film, describing JM
Watch now
Ready for take off
Ramping up to reach net zero
Sustainability
We are a global leader in sustainable technologies. Through inspiring science and continued innovation, we are catalysing the net zero transition for millions of people every day. Our skills and technologies are important today as businesses and communities adapt to the challenges of climate change. But advancing sustainability isn’t just about our portfolio of technologies, it’s also about our own operations, how we work together and hold ourselves accountable for our impacts on society.
Our Societal Value Committee (SVC), which is made up of the full board, met four times this year to review progress in delivering on our sustainability commitments. Our Sustainability Council, which is made up of our Group Leadership Team (GLT), met four times this year to decide the direction of our sustainability strategy and monitor progress. All our senior leaders are incentivised to deliver on our sustainability ambitions through sustainability objectives included in our long term Performance Share Plan (PSP.)
Embedding sustainability into everything we do
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Our products and services are where we believe we can have most positive impact on society and we have aligned our strategy with four of the UN SDGs.
Emission control technologies that reduce harmful oxides of nitrogen (NOx) and particulates from vehicle tailpipes and stationary engines 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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A new focus on our core material topics
Catalysing the net zero transition
This year, the whole of Johnson Matthey has been making changes to become a more customer-facing, commercially-minded and agile business with the strategy simplify, focus, execute. To support this, in partnership with an independent third party, we refreshed our materiality assessment to ensure that our sustainability strategy, goals and targets are focussed both on our biggest impacts on society and
those areas of most importance to our stakeholders. We bench-marked our existing strategy against industry ESG standards, legislation requirements and sector peers. As a result, we reorganised our existing sustainability goals and targets for 2030 under new themes to better articulate the most material benefits that we believe we can bring to society. We increased the ambition in our climate-related 2030 targets to focus and align them better with our company purpose.
“Despite challenging markets, we have made steady progress in implementing our new strategy – doing exactly what we set out to do and starting to win back the trust of stakeholders.”
Stephen Oxley Chief Financial Officer
Financial review
Annual Report downloads
ESEF HTML
Sustainability reporting
Sustainability Performance Databook
GRI Content Index
SASB Index
PAI Statement
TCFD Statement
Assurance Statement