Johnson Matthey Plc

Company Profile

■URL

http://www.matthey.com

■Address

5th Floor, 25 Farringdon Street, London EC4A 4AB, UK

Business Overview

-The Company is an international specialty chemicals company whose principal activities involve developing catalysts, producing fine chemicals, and working with precious metals.

-As of March 2016, the Company is organized into five global divisions:

  • Emission Control Technologies
  • Process Technologies
  • Precious Metal Products
  • Fine Chemicals
  • New Businesses

-The Company's Emission Control Technologies division manufactures catalysts for the automotive market. The division consists of the Light Duty Vehicle Catalysts business unit, which targets passenger cars and light-duty vehicles, and the Heavy Duty Diesel Catalysts business unit, which focuses on commercial vehicles and heavy duty diesel engines.

-In the Precious Metal Products division, the Noble Metals business unit provides platinum and iridium for various components like spark plugs and sensors. The Advanced Glass Technologies business unit manufactures glass enamels for automotive applications such as glass obscuration and conductive tracks.

-The Company's New Businesses division contains the Fuel Cells business unit, which manufactures catalysts and catalyzed components for fuel cells. The division also contains the Battery Technologies unit, which provides lithium-ion battery systems for electric and hybrid vehicles.

Competitors

Emission Control Technologies Fuel Cells Battery Technologies Noble Metals Advanced Glass Technologies
-BASF
-Cataler
-Haldor Topsoe
-Umicore
-3M
-Solivcore
-W L Gore
-BMZ
-BASF
-Clariant
-Continental
-LG
-Umicore
-Heraeus
-Umicore
-Dupont
-Ferro
-Heraeus

Shareholders

-Listed on London Stock Exchange. (As of Apr. 29, 2016)
Shareholder category Investment ratio (%)
Investment and Unit Trusts 43.4
Pension Funds 13.3
Individuals 6.2
Custodians 3.3
Insurance Companies 4.6
Treasury Shares and Employee Share Schemes 4.8
Sovereign Wealth Funds 8.5
Charities 1.2
Other 14.7
Total 100.0

Products

Emission Control Technologies unit
-2-way oxidation catalysts
-Three-way Non-Selective Catalytic Reduction (NSCR) catalysts
-Selective Catalytic Reduction (SCR) catalysts
-NOx adsorber catalysts
-Diesel Particulate Filters (DPF)
-Gasoline particulate filters
-Cold start catalysts
-Selective Catalytic Reduction combined with Continuously Regenerating Trap (SCRT) systems
-Diesel Oxidation Catalysts (DOC)
-4-way diesel systems

Noble Metals unit
-Metals and alloys for wires in the following components

  • Spark plugs
  • Airbag initiators
  • Temperature sensors
  • Other sensors

Advanced Glass Technologies unit
-Glass obscuration enamel used in laminating or tempering to block UV radiation
-Silver conductive paste for print-based in-car defogging systems and antennae

Fuel Cells unit
-Fuel cell catalysts
-Membrane Electrode Assemblies (MEA)

Battery Systems unit
-Lithium-ion starter batteries
-Custom-designed battery systems

Supplemental Information 1

M&A

1980 Acquired the following companies for approximately GBP 8 million: WSA Engineering Ltd. (now operated as WSA Components L7td.); Star-Link Chains Ltd.; Max Marx Color and Chemical Co.; Burrell & Co. Ltd.; Eagle Transfers Ltd.; National Screenprint (Pty.) Ltd.; and Applied Thermal Systems Inc.
Apr. 1981 Acquired Catamore Co.
1982 Acquired the following companies for approximately GBP 15,000,000: Wallace Brothers Commodities Ltd., (London and New York); Palmer Research Ltd.; G.K. Rowley; International Electrolytic Plant Co. Ltd.; Micro-Weld Ltd.; Holland Colours-Apeldoorn BV, (50%); Deco Mail Siebdrucktechnik GmbH, (90%); Spectrum Screenprint (Pty.) Ltd.; The Catamore Co.; 80% voting control in Sarah Coventry, Inc.; Rembrandt Jewelry Mfg. Ltd.; Falco Jewel Industries Inc.; the materials division of AVX Corporation; and certain assets of Etablissements Roques SA (now Roques Chimie SA).
Dec. 1982 Acquired Hinton Hill Group Ltd. for 184,029 common shares.
Oct. 1984 Disposed of Johnson Matthey Bankers Ltd. to the Bank of England.
1989 Acquired Cominco Electronic Materials and Alfa Catalog Chemicals for a total purchase cost of GBP 22,000,000.
Jun. 1990 Acquired Deak International's precious metal refining and fabrication business in Australia and New Zealand for AUD 12,000,000.
1991 Acquired a controlling interest in Svenska Emissionsteknik AB (Sweden).
1991 Disposed of its 25% holding in Tanaka Matthey KK (Japan).
Mar. 1992 Acquired the business of Josiah Cox Ltd. for a cash consideration of GBP 400,000,000, including goodwill of GBP 200,000.
Oct. 1992 Acquired The Alta Group Inc.
Jan. 1994 Sold its United Kingdom and Irish Jewellery business to Cookson Group plc.
1994 Purchased additional shares in Svenska Emissionsteknik AB for a consideration of GBP 1,000,000, increasing its shareholding in Svenska's ordinary shares from 62% to 83%.
Oct. 1995 Completed the merger of a subsidiary of Johnson Matthey into Advance Circuits. Advance Circuits is now a wholly owned subsidiary of Johnson Matthey. Each former share of Advance Circuits has been converted, subject to dissenters' rights, into the right to receive USD 22.50 in cash, without interest. Advance Circuits, Inc. is a leading interconnect solution provider whose products include complex multilayer printed circuit boards, flexible circuit assemblies, semiconductor packages and other manufacturing services.
Mar. 1996 Acquired the PCB factory and related assets of Cray Research Inc. for a consideration of GBP 26,400,000. Under the terms of the transaction, Johnson Matthey acquired land, buildings, plant and machinery and inventory, together with a highly skilled workforce of some 350 people. The purchase stems directly from Co.'s USD 170,000,000 acquisition in September 1995 of Advance Circuits Inc. (ACI), a market leader in both high-technology PCBs and the emerging field of plastic laminate packaging for semiconductors.
Jun. 1996 Acquired the business of Technologia Electronica De Juarez for consideration of GBP 100,000.
Dec. 1996 Disposed of its 49% interest in Matthey Rustenburg Refiners (Pty.) Limited at a book value of GBP 2,600,000.
Dec. 1997 Purchased a further 30% of Johnson Matthey HICOM Sdn.Bhd. for GBP 0.8 million, increasing the groups holding to 80%.
Jan. 1998 Acquired the printed circuit board operations of Universal Circuits Inc. for GBP 0.3 million.
Feb. 1998 Acquired the 50% of Cookson Matthey Ceramics plc (CMC) which it did not already own from Cookson Group plc for GBP 65 million.
Mar. 1998 Sold Otavi Minen AG for GBP 21.2 million.
Jun. 1998 Sold its UK Mineral business for GBP 5.0 million.
1998 Disposed of part of its investment in AnorMed Inc. reducing its holding from 40% to 25%.
Feb. 1999 Acquired the testing facility business of Watson Engineering Testing Development Inc. for GBP 6.5 million.
Apr. 1999 Acquired the remaining 50% interest in Ryoka Matthey Corporation for GBP 2.8 million.
Jun. 1999 Sold Ryoka Matthey Corporation as part of the electronic Materials disposal.
Aug. 1999 Sold its Electronic Materials Division to AlliedSignal Inc.
Aug. 1999 Acquired the remaining 30% interest in Johnson Matthey Ceramics (Thailand) limited for GBP 300,000 forgiveness of debt and goodwill of GBP 300,000.
Mar. 2000 Acquired the remaining 20% interest in Matthey Beyrand et Cie S.A. for GBP 0.7 million.
Mar. 2000 Disposed of its Organic Pigments business in Venezuela and the USA to Dominion Colour Corporation and Continuous Link Color Inc.
Jul. 2000 Purchased the assets of Precision Studios from Waterford Wedgwood plc for GBP 1.8 million.
Nov. 2000 Acquired Changzhou Dongao Zirconium Products Company Limited from Consolidated Rutile Limited for GBP 0.4 million.
Feb. 2001 Acquired Shape Memory Applications, Inc. for GBP 3.6 million, with GBP 0.7 million deferred until Aug. 2002.
Sep. 2002 The Company announced that it has signed an agreement to buy the Synetix division of ICI for GBP 260 million in cash. Synetix is a global catalyst operation which serves a range of market segments including ammonia, methanol, fine chemicals, edible oils, oleochemicals, oil and gas and polymerisation.
Mar. 2004 Acquired AMC, the market leading supplier of Sponge Nickel catalysts based in Tennessee (USA) for USD 43 million.
Jan. 2006 Acquired Davy Process Technology, a process design and technology licensing company.
Jan. 2007 Sold its Ceramics Division to Endeka Ceramics group.
Feb. 2008 Acquired Argillon Group, which adds to the Company's existing technology for controlling harmful emissions of oxides of nitrogen.
Aug. 2012 Acquired Shanghai Changyin Electronic Material Science and Technology Co. Ltd, a manufacturer of silver paste.
Oct. 2012 Acquired AG Holding Limited and its subsidiaries, including Axeon, which manufactures integrated battery modules.
Oct. 2014 Acquired A123 Systems' battery materials manufacturing facility located in Changzhou, China.
Feb. 2015 Acquired Clariant AG’s battery materials business for USD 75 million, which included a manufacturing facility, R&D center, and pilot plant.

Joint Ventures

Dec. 1993 Formed an agreement with Hicom, the Malaysian government's investment arm, to form a joint venture to manufacture auto catalysts.
Nov. 1996 Entered into an agreement with Magneti Marelli S.p.A. to set up a joint venture company to manufacture auto catalysts in Argentina. As part of the agreement, the Company agreed to purchase Magneti Marelli's auto catalyst plant in Turin. The consideration was GBP 2,300,000.

In February 1998, the Company opened a USD 10 million catalytic facility in Pilar, Argentina, The plant is owned by the Company's joint venture with Magneti Marelli. The Argentinean plant has a capacity of one and a half million units and has the potential to be doubled in the future.

Alliances

Mar. 1999 Announced that it has signed a letter of intent with Daimler Benz-Ballard Fuel Cell Engines GmbH ("dbb") to develop and supply catalysts and catalyzed components for fuel-cell engines. Under this agreement the Company will be dbb's exclusive development partner for catalysts (which purify the hydrogen gas used by fuel cell engines to generate electric power) and for several other catalytic components in dbb's groundbreaking engine system. dbb is a joint venture between Daimler Chrysler, Ford and Ballard Power Systems of Canada to develop and manufacture fuel cell engines for vehicles.
May 2000 The Company and Technical Fibre Products (TFP), the advanced composites subsidiary of James Cropper PLC, signed exclusive development and supply agreements for key components in the Company's new Membrane Electrode Assembly products for fuel cells.

>>>Business Report FY ended Mar. 31, 2008
>>>Business Report FY ended Mar. 31, 2009
>>>Business Report FY ended Mar. 31, 2010
>>>Business Report FY ended Mar. 31, 2011
>>>Business Report FY ended Mar. 31, 2012
>>>Business Report FY ended Mar. 31, 2013
>>>Business Report FY ended Mar. 31, 2014
>>>Business Report FY ended Mar. 31, 2015

Note: A figure in brackets ( ) indicates a loss