In order to deliver sustainable growth and value creation across the group and our sectors, we are investing in a number of strategic growth projects. The growth capex comprises spend on our new Clean Air plants in Poland, China and India, the commercialisation of eLNO, modernisation of our refineries in Efficient Natural Resources and upgrades to our IT systems. In future, maintenance capex will continue to be c.0.8-0.9x depreciation and we will further invest in strategic projects if they meet our disciplined investment criteria.

We continue to have a disciplined approach to our working capital position. We are targeting an improvement in non precious metal working capital to 50 days over the medium term, and expect to deliver £350m of savings in precious metal working capital, comprising £250m in backlog reduction and a further £100m of refinery efficiencies.

Over the medium term, these investments and the growth and efficiency they will generate give us confidence in expanding our ROIC to 20%.

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Johnson Matthey plc published this content on 19 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 September 2019 06:11:03 UTC