Segmental Reporting Change and IAS 19 Restatement
For immediate release on Thursday 4th July 2013
Segmental Reporting Change and IAS 19 Restatement
Segmental Reporting Change
As previously announced, with effect from 1st April 2013 the group has reorganised its management structure. To reflect this new structure and to improve transparency to stakeholders, for the year ending 31st March 2014 the group will report the results of five divisions: Emission Control Technologies; Process Technologies; Precious Metal Products; Fine Chemicals; and New Businesses. An unaudited segmental schedule showing the effect of this reorganisation on historic financial results is appended to this press release.
There is no change to the operating profit numbers at the group level as a result of this change.
The results of Emission Control Technologies Division for the year ended 31st March 2012 were distorted by the impact of higher rare earth prices. In the first half of that year the group bore the impact of those higher costs but in the second half of the year the results benefited from action taken to reduce the impact of those higher costs. This included a combination of thrifting, substitution for cheaper raw materials and negotiating price surcharges with its customers.
In the second half of the year ended 31st March 2012 the underlying operating profit of Process Technologies Division was impacted by restructuring costs in its UK AMOG business.
As previously reported, the results of Precious Metal Products Division for the year ended 31st March 2013 were adversely impacted by lower precious metal prices and volumes, and the results in the first six months of that year were further impacted by operational issues at our Salt Lake City gold and silver refinery.
The costs associated with our new business development group were previously included within corporate. These costs have now been allocated to the New Businesses Division and corporate costs have reduced accordingly.
IAS 19 Restatement
With effect from 1st April 2013, the group is required to take account of the revised accounting standard, IAS 19 - 'Employee Benefits'. This change impacts the group by amending disclosure requirements and replacing the expected return on plan assets and interest cost on plan obligations with net interest on the net defined benefit liability based upon the discount rate. Schedules on the new structure showing the effect of this restatement on the group's results for the year ended 31st March 2013 and the half year ended 30th September 2012 are also appended to this press release and have been reviewed by our auditor.
Enquiries:
|
Ian Godwin |
Director, IR and Corporate Communications |
020 7269 8410 |
|
Robert MacLeod |
Group Finance Director |
020 7269 8484 |
|
Howard Lee |
Headland |
020 7367 5225 |
|
www.matthey.com |
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Restatement - Based on New Divisional Structure |
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2011/12 |
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2012/13 |
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H1 |
H2 |
Total |
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H1 |
H2 |
Total |
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Sales excluding precious metals (£m) |
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Emission Control Technologies |
690.4 |
779.2 |
1,469.6 |
|
720.3 |
741.0 |
1,461.3 |
|
Process Technologies |
247.0 |
249.7 |
496.7 |
|
251.3 |
257.3 |
508.6 |
|
Precious Metal Products |
234.8 |
229.4 |
464.2 |
|
217.3 |
206.5 |
423.8 |
|
Fine Chemicals |
155.6 |
155.9 |
311.5 |
|
153.6 |
154.6 |
308.2 |
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New Businesses |
3.1 |
2.5 |
5.6 |
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1.8 |
35.2 |
37.0 |
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Eliminations |
(38.3) |
(30.7) |
(69.0) |
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(34.6) |
(28.6) |
(63.2) |
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1,292.6 |
1,386.0 |
2,678.6 |
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1,309.7 |
1,366.0 |
2,675.7 |
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Underlying operating profit (£m) |
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Emission Control Technologies |
58.5 |
98.8 |
157.3 |
|
81.2 |
81.7 |
162.9 |
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Process Technologies |
43.1 |
31.8 |
74.9 |
|
41.7 |
50.6 |
92.3 |
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Precious Metal Products |
98.1 |
87.6 |
185.7 |
|
59.6 |
64.6 |
124.2 |
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Fine Chemicals |
35.1 |
38.5 |
73.6 |
|
40.4 |
36.1 |
76.5 |
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New Businesses |
(5.8) |
(6.8) |
(12.6) |
|
(8.7) |
(7.3) |
(16.0) |
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Corporate |
(14.3) |
(14.5) |
(28.8) |
|
(11.4) |
(13.7) |
(25.1) |
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|
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Underlying operating profit |
214.7 |
235.4 |
450.1 |
|
202.8 |
212.0 |
414.8 |
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Net finance costs |
(11.7) |
(12.4) |
(24.1) |
|
(11.6) |
(14.0) |
(25.6) |
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Underlying profit before tax |
203.0 |
223.0 |
426.0 |
|
191.2 |
198.0 |
389.2 |
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Return on sales (%) |
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Emission Control Technologies |
8.5 |
12.7 |
10.7 |
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11.3 |
11.0 |
11.1 |
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Process Technologies |
17.4 |
12.7 |
15.1 |
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16.6 |
19.7 |
18.1 |
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Precious Metal Products |
41.8 |
38.2 |
40.0 |
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27.4 |
31.3 |
29.3 |
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Fine Chemicals |
22.6 |
24.7 |
23.6 |
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26.3 |
23.4 |
24.8 |
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Total group |
16.6 |
17.0 |
16.8 |
|
15.5 |
15.5 |
15.5 |
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Year Ended 31st March 2013 - Post IAS19 Revised and New Divisional Structure |
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Emission Control Technologies |
Process Technologies |
Precious Metal Products |
Fine Chemicals |
New Businesses |
Eliminations |
Total |
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£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
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|
|
|
|
|
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Revenue from external customers |
|
2,488.0 |
503.7 |
7,368.0 |
332.1 |
37.0 |
- |
10,728.8 |
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Inter-segment revenue |
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|
|
69.1 |
11.5 |
1,005.0 |
13.0 |
1.5 |
(1,100.1) |
- |
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Total revenue |
2,557.1 |
515.2 |
8,373.0 |
345.1 |
38.5 |
(1,100.1) |
10,728.8 |
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External sales excluding the value of precious metals |
1,460.5 |
497.2 |
381.9 |
300.4 |
35.7 |
- |
2,675.7 |
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Inter-segment sales |
|
|
|
0.8 |
11.4 |
41.9 |
7.8 |
1.3 |
(63.2) |
- |
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Sales excluding the value of precious metals |
1,461.3 |
508.6 |
423.8 |
308.2 |
37.0 |
(63.2) |
2,675.7 |
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|
|
|
|
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|
|
Segmental underlying operating profit |
163.5 |
92.4 |
124.4 |
76.6 |
(16.0) |
- |
440.9 |
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|
|
|
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Unallocated corporate expenses |
|
|
|
|
(24.8) |
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|
|
|
|
Underlying operating profit |
|
|
|
|
|
416.1 |
|||||||
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Major impairment and restructuring charges |
|
|
|
|
(17.4) |
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Amortisation of acquired intangibles |
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|
|
(16.9) |
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|
|
|
|
|
Operating profit |
|
|
|
|
381.8 |
||||||||
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Net finance costs |
|
|
|
|
|
(33.2) |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
|
|
|
348.6 |
|||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit before tax |
|
|
|
|
|
382.9 |
|||||||
|
Underlying income tax expense |
|
|
|
|
(80.1) |
||||||||
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|
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|
|
|
|
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|
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|
|
|
|
Underlying profit for the year |
|
|
|
|
302.8 |
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|
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|
|
|
Underlying earnings per share - basic |
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|
|
|
147.7p |
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Segmental net assets |
1,010.3 |
662.6 |
330.7 |
440.7 |
78.2 |
- |
2,522.5 |
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|
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Net debt |
|
|
|
|
(835.2) |
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Post-employment benefits net assets and liabilities |
|
|
|
(243.9) |
|||||||||
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Deferred income tax assets and liabilities |
|
|
|
|
(37.0) |
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Provisions and non-current other payables |
|
|
|
|
(52.6) |
||||||||
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Unallocated corporate net assets |
|
|
|
|
40.0 |
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|
|
|
|
|
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|
|
|
|
|
|
|
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Total net assets |
|
|
|
|
1,393.8 |
||||||||
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|
|
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|
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|
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Segmental capital expenditure |
75.6 |
42.8 |
35.1 |
21.5 |
3.5 |
- |
178.5 |
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Corporate capital expenditure |
|
|
|
|
13.5 |
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|
|
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Total capital expenditure |
|
|
|
|
|
192.0 |
|||||||
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental depreciation and amortisation |
60.9 |
21.3 |
18.3 |
19.7 |
2.5 |
- |
122.7 |
||||||
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|
|
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|
|
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|
|
|
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Corporate depreciation and amortisation |
|
|
|
|
3.9 |
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Amortisation of acquired intangibles |
|
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|
16.9 |
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|
|
|
|
|
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|
|
|
|
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|
|
|
|
Total depreciation and amortisation |
|
|
|
|
143.5 |
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|
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|
|
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|
|
|
|
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Return on invested capital 1 |
16.4% |
15.8% |
44.3% |
17.5% |
-29.3% |
- |
19.7% |
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|
Segmental employee numbers |
4,241 |
1,861 |
2,490 |
1,282 |
636 |
- |
10,510 |
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Corporate and Central Research |
|
|
|
|
485 |
||||||||
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|
|
|
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Total employees |
|
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|
|
|
10,995 |
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|
1 |
For divisions: segmental underlying operating profit divided by the average of opening and closing segmental net assets. For total group: underlying operating profit divided by average invested capital (total net assets plus net debt) |
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Half Year Ended 30th September 2012 - Post IAS19 Revised and New Divisional Structure |
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Emission Control Technologies |
Process Technologies |
Precious Metal Products |
Fine Chemicals |
New Businesses |
Eliminations |
Total |
|
|
|
|
|
|
|
|
|
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
1,217.5 |
248.6 |
3,259.3 |
165.1 |
1.7 |
- |
4,892.2 |
|||||
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Inter-segment revenue |
0.2 |
6.9 |
474.3 |
5.4 |
0.6 |
(487.4) |
- |
||||||
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|
|
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|
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|
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|
|
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Total revenue |
|
|
|
|
1,217.7 |
255.5 |
3,733.6 |
170.5 |
2.3 |
(487.4) |
4,892.2 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
External sales excluding the value of precious metals |
720.2 |
244.5 |
193.7 |
150.1 |
1.2 |
- |
1,309.7 |
||||||
|
Inter-segment sales |
0.1 |
6.8 |
23.6 |
3.5 |
0.6 |
(34.6) |
- |
||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales excluding the value of precious metals |
720.3 |
251.3 |
217.3 |
153.6 |
1.8 |
(34.6) |
1,309.7 |
||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental underlying operating profit |
81.4 |
41.7 |
59.7 |
40.4 |
(8.7) |
- |
214.5 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate expenses |
|
|
|
|
|
(11.3) |
|||||||
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating profit |
|
|
|
|
|
203.2 |
|||||||
|
Major impairment and restructuring charges |
|
|
|
|
|
- |
|||||||
|
Amortisation of acquired intangibles |
|
|
|
|
(7.8) |
||||||||
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
|
|
|
195.4 |
|||||||
|
Net finance costs |
|
|
|
|
|
(15.3) |
|||||||
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|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
|
|
|
180.1 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit before tax |
|
|
|
|
|
187.9 |
|||||||
|
Underlying income tax expense |
|
|
|
|
|
(39.3) |
|||||||
|
|
|
|
|
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|
|
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Underlying profit for the period |
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148.6 |
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Underlying earnings per share - basic |
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71.7p |
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Segmental net assets |
930.0 |
510.0 |
348.1 |
452.2 |
29.9 |
- |
2,270.2 |
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This information is provided by RNS
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