Business Overview

(in million GBP)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of change (%)	Factors
Sales
Net Sales	11,155.2	10,728.8	4.0	-
Operating Income	448.2	381.8	17.4	-
Sales by Division
Emission Control Technologies	2,898.9	2,488.0	16.5	1)
Precious Metal Products	7,243.2	7,368.0	(1.7)	2)
New Businesses	76.6	37.0	107.0	3)

Factors
1) Emission Control Technologies
-The Company's Emission Control Technologies division had revenue of GBP 2,898.9 million in the FY ended March 31, 2014, an increase of 16.5% from the previous year.

<Light Duty Vehicle (LDV) Catalysts>
-Sales of LDV catalysts increased by 8% over the previous fiscal year to GBP 1,009 million. The increase in sales was due to emission legislation in Europe, and higher demand for vehicles in Asia and North America.

<Heavy Duty Diesel (HDD) Catalysts>
-Sales of HDD catalysts increased by 20% to GBP 573 million because of stricter legislation in Europe and China, along with improved economic conditions leading to increased vehicle sales throughout the world.

2) Precious Metal Products
-In the FY ended March 31, 2014, the Company's Precious Metal Products division had revenue of GBP 7,243.2 million, a 1.7% decrease over the previous fiscal year.

<Noble Metals>
-The Noble Metals business unit increased sales by 14% to GBP 138 million despite mixed results in the business unit.

<Colour Technologies>
-Sales in the Colour Technologies business unit grew by 5% to GBP 86 million due to higher demand of obscuration enamels and silver paste in automotive glass applications. While these materials comprised 45% of the business unit's sales five years ago, they now account for 70% of sales.

3) New Businesses
-The Company's New Businesses division had sales of GBP 76.6 million in the FY ended March 31, 2014, an increase of GBP 39.6 million over the previous year.

<Battery Technologies>
-The Battery Technologies business unit had sales of GBP 69 million due to higher demand of battery systems. The Company is expecting to improve its performance in the near future due to its continued R&D investment in the field, its expansion of current programs, and the development of relationships with its partners in the supply chain.

<Fuel Cells>
-In the FY ended March 31, 2014, the Fuel Cells business unit had sales of GBP 7 million, a slight year-over-year increase.

Acquisitions

-On June 2014, the Company agreed to purchase specific battery material manufacturing assets from A123 Systems LLC for USD 26 million. The primary asset of the acquisition is A123's cathode material manufacturing facility in China which employs approximately 80 people. The agreement also includes a long term stipulation in which the Company will supply all of A123's lithium ion phosphate requirements.

Outlook

-The Company expects its results in the FY ending March 2015 to be approximately the same as its results for the FY ending March 2014. Gains due to general growth through all of the Company's divisions is expected to be offset by the loss of commission revenue from Anglo Platinum, as well as a negative impact due to foreign currency translation.

R&D Expenditure

(in million GBP)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	152.3	136.0	128.6

Distribution of R&D Expenditure

(%)

Division	Percentage of Expenditure
Emission Control Technologies	44
Process Technologies	19
Precious Metal Products	6
Fine Chemicals	8
New Businesses	7
Central Research	16
Total	100

R&D Structure

-The Company has approximately 1,400 people working in research and development.

Distribution of R&D Employees

(%)

Division	Percentage of Employees
Emission Control Technologies	38
Process Technologies	20
Precious Metal Products	6
Fine Chemicals	8
New Businesses	7
Central Research	21
Total	100

R&D Activities

-In order to provide local service for its customers in Asia, the Company is increasing its light duty catalyst testing capabilities in China and Japan.

R&D Facilities

-The Company has group technology centers in Sonning Common and Billingham, UK.

-The Company has R&D centers in 8 countries:

• USA
• UK
• Germany
• Sweden
• Japan
• China
• South Korea
• Brazil

Capital Expenditure

(in million GBP)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Emission Control Technologies	72.1	75.6
Process Technologies	59.5	42.0
Precious Metal Products	40.0	35.1
Fine Chemicals	26.2	21.5
New Businesses	8.0	3.6
Corporate Capital Expenditure	12.5	13.5
Total	218.3	191.3

Investment in UK

Emission Control Technologies
-One of the primary investment projects that the Company was involved with in the FY ended March 31, 2014 was the addition of further automotive catalyst manufacturing capacity in Royston in Europe. This was done in preparation for the upcoming legislation regarding light and heavy duty vehicles.

-The Company is expanding its filter production in the UK to provide the capacity needed to meet its customers' demand.

Investment Outside UK

Emission Control Technologies
-The Company's Emission Control Technologies division continued work on expanding its facility in Macedonia to double its production capacity.

Outlook

-The Company expects to spend GBP 240 million per year in capital expenditures over the next few years.