Trading Statements

INEOS Enterprises Holdings Limited Unaudited Interim Trading Statement Q1-2021

INEOS Enterprises Holdings Limited (“INEOS Enterprises”) reports its trading performance for the first quarter 2021.

Based on unaudited management information, INEOS Enterprises’ EBITDA before Special Items (“EBITDA”) for the first quarter 2021 was €93M. This compares to an EBITDA of €87M for the first quarter 2020 and €94M in the prior quarter.

Enterprises has continued to operate all sites with Covid-19 compliant processes in place. Given our importance to supporting the fight against Covid-19, resources have been made available to ensure the safety of our people and preserve continuity across the business.

In line with our conservative financial policy, we have maintained a prudent capital position with continued control around our operating cost base. At the end of the quarter we report cash balances of €298M and net debt of €1,032M, resulting in a net debt leverage of c.2.6x. Our €300M securitisation facility was undrawn at quarter end.

During this quarter, INEOS Enterprises delivered additional cost savings of c.€8M, bringing cumulative cost savings in our acquired businesses to date to c.€95M. These savings represent underlying operational improvements to the businesses and do not include any temporary effects from Covid-19.

In Q1 Solvents’ EBITDA was €36M, compared to €14M in Q1 2020 and €28M in Q4 2020. The Solvents division continues to benefit from structural changes to demand in the sanitisation market experienced during the pandemic. Our BDO business has recorded a very strong quarter, assisted by competitor supply issues. Increased demand in IPA and Ethanol was driven by restocking of sectors such as automotive and strong pharmaceutical demand, although margins have settled as markets have become more balanced.

Composites’ Q1 EBITDA was €32M, compared to €31M in Q1 2020 and €40M in Q4 2020. Composites saw strong demand across all sectors in Q1, continuing the trend seen at the exit of 2020. Winter storms in the U.S. impacted certain raw material availability during the quarter, limiting sales volumes achieved. DIY and bathroom furniture demand remained strong, supported by volume improvements in anti-corrosion through the quarter.

Pigments reported Q1 2021 EBITDA of €29M, compared to €35M Q1 2020 and €29M in Q4 2020. As with Composites, Pigments had good demand through Q1. Margins were stable across the quarter, supporting a price increase. Production volumes were lower than expected during the quarter due to an unplanned power outage at the plant. The plant is now fully operational and production rates are back to a normal level as the business moves into its key application season.

Chemical Intermediates reported Q1 2021 EBITDA of €5M compared to €7M in Q1 2020 and €3M in Q4 2020. Our Chemical Intermediates business was impacted by the winter storms in the United States. Management estimate the EBITDA impact of the storms to be a negative €4m; the majority of which was a one-off, non-recurring gas price increase in our Joliet business. Sulphur businesses continue to be supported by stable volumes into water treatment through the quarter, though EBITDA was impacted by an unplanned shutdown at our Bilbao site. INEOS Joliet experienced improving market conditions with positive margin development in PIA. Compounds’ demand was good in the quarter driven by returning activity in the U.K. construction sector.

We continue to invest in our Hygienics business with development of brand awareness and marketing. We continue to deliver new retail opportunities for sanitisation products and automated dispenser sales. EBITDA for the quarter, including marketing and investments, was €(9)M.