Quarter ended June 30, 2007
INEOS Group Holdings
PROFIT AND LOSS ACCOUNTS (UNAUDITED)
|
|
Three-Month Period Ended June 30, |
|
|
2006 |
2007 |
|
|
(€ in millions) |
||
|
|
|
|
|
Turnover |
6,022.3 |
6,935.1 |
|
Cost of sales |
(5,376.1) |
(6,259.7) |
|
|
|
|
|
Gross profit |
646.2 |
675.4 |
|
Distribution costs |
(91.0) |
(136.2) |
|
Administrative expenses |
(95.8) |
(105.4) |
|
Exceptional administrative expenses |
(16.2) |
(11.0) |
|
|
|
|
|
Operating profit |
443.2 |
422.8 |
|
Share of operating profit/(loss) of associates |
(2.0) |
10.5 |
|
Net finance charges |
(160.2) |
(178.2) |
|
|
|
|
|
Profit on ordinary activities before taxation |
281.0 |
255.1 |
|
Taxation on profit on ordinary activities |
(88.5) |
(79.7) |
|
|
|
|
|
Profit on ordinary activities after taxation |
192.5 |
175.4 |
|
Equity dividends |
(106.0) |
- |
|
|
|
|
|
Profit for the financial period |
86.5 |
175.4 |
|
|
|
|
INEOS Group Holdings
PROFIT AND LOSS ACCOUNTS (UNAUDITED)
Six-Month Period Ended June 30
|
|
Six-Month Period Ended June 30, |
|
|
2006 |
2007 |
|
|
(€ in millions) |
||
|
|
|
|
|
Turnover |
12,777.3 |
13,559.0 |
|
Cost of sales |
(11,569.8) |
(12,253.7) |
|
|
|
|
|
Gross profit |
1,207.5 |
1,305.3 |
|
Distribution costs |
(167.9) |
(269.8) |
|
Administrative expenses |
(211.9) |
(224.8) |
|
Exceptional administrative expenses |
(28.2) |
(15.9) |
|
|
|
|
|
Operating profit |
799.5 |
794.8 |
|
Share of operating profit/(loss) of associates |
(4.7) |
15.5 |
|
Profit on disposal of investment |
- |
5.3 |
|
Net finance charges |
(356.2) |
(351.2) |
|
|
|
|
|
Profit on ordinary activities before taxation |
438.6 |
464.4 |
|
Taxation on profit on ordinary activities |
(135.1) |
(150.4) |
|
|
|
|
|
Profit on ordinary activities after taxation |
303.5 |
314.0 |
|
Equity dividends |
(106.0) |
- |
|
|
|
|
|
Profit for the financial period |
197.5 |
314.0 |
|
|
|
|
INEOS Group Holdings
CONSOLIDATED BALANCE SHEETS
|
|
December 31, 2006 |
June 30, 2007 |
|
(Audited) |
(Unaudited) |
|
|
(€ in millions) |
||
|
|
|
|
|
Fixed assets |
|
|
|
Investments |
108.2 |
112.8 |
|
Tangible fixed assets |
6,609.1 |
6,409.6 |
|
Intangible fixed assets |
134.9 |
127.8 |
|
Goodwill |
835.6 |
786.8 |
|
Negative goodwill |
(432.3) |
(412.5) |
|
|
7,255.5 |
7,024.5 |
|
Current assets |
|
|
|
Cash at bank and in hand |
659.7 |
789.4 |
|
Stocks |
2,182.7 |
2,283.8 |
|
Debtors : amounts falling due within one year |
3,499.3 |
4,213.1 |
|
Debtors : amounts falling due after one year |
173.3 |
235.0 |
|
|
6,515.0 |
7,521.3 |
|
|
|
|
|
Creditors : amounts falling due within one year |
(3,931.0) |
(4,662.5) |
|
|
|
|
|
Net current assets |
2,584.0 |
2,858.8 |
|
|
|
|
|
Total assets less current liabilities |
9,839.5 |
9,883.3 |
|
|
|
|
|
Creditors : amounts falling due after one year |
(8,656.4) |
(8,433.4) |
|
Provisions for liabilities and charges |
(371.6) |
(365.1) |
|
Minority interest |
(13.8) |
(14.2) |
|
Net assets excluding pension liabilities |
797.7 |
1,070.6 |
|
Pension liabilities |
(407.0) |
(384.8) |
|
Net assets including pension liabilities |
390.7 |
685.8 |
|
|
|
|
|
Capital and reserves |
|
|
|
Called up equity share capital |
17.7 |
17.7 |
|
Share premium account |
51.1 |
51.1 |
|
Profit and loss account |
321.9 |
617.0 |
|
Equity shareholders' funds |
390.7 |
685.8 |
|
|
|
|
INEOS Group Holdings
CONSOLIDATED CASH FLOW STATEMENTS (UNAUDITED)
|
|
Six-Month Period Ended June 30, |
|
|
2006 |
2007 |
|
|
(€ in millions) |
||
|
|
|
|
|
Operating profit |
799.5 |
794.8 |
|
Depreciation of tangible assets |
251.1 |
405.5 |
|
Amortisation of intangible assets |
2.1 |
9.7 |
|
Decrease/(increase) in stocks |
(20.2) |
(197.6) |
|
Decrease/(increase) in debtors |
(547.5) |
(867.1) |
|
(Decrease)/increase in creditors and provisions |
450.9 |
703.9 |
|
Net cash flow from operating activities |
935.9 |
849.2 |
|
|
|
|
|
Dividend from associate |
- |
- |
|
|
|
|
|
Returns on investments and servicing of finance |
|
|
|
Interest received |
4.5 |
7.3 |
|
Interest and other financing charges paid |
(141.9) |
(325.5) |
|
Debt issue costs |
(57.1) |
(0.4) |
|
|
(194.5) |
(318.6) |
|
|
|
|
|
Taxation paid |
(97.5) |
(33.8) |
|
|
|
|
|
Capital expenditure and financial investments |
|
|
|
Payments to acquire tangible fixed assets |
(203.4) |
(252.3) |
|
Receipt of money on disposal of fixed assets |
- |
1.3 |
|
Loans to related parties |
(58.5) |
- |
|
|
(261.9) |
(251.0) |
|
|
|
|
|
Acquisitions and disposals of businesses |
|
|
|
Purchase of businesses |
(416.1) |
11.0 |
|
Disposal of investment |
- |
7.1 |
|
|
(416.1) |
18.1 |
|
|
|
|
|
Equity dividends paid |
(100.0) |
- |
|
|
|
|
|
Net cash outflow before financing |
(134.1) |
263.9 |
|
|
|
|
|
Financing |
|
|
|
Senior Facilities Agreement |
750.0 |
(162.9) |
|
Bridge Financing Facility repayment |
(3,092.2) |
- |
|
Senior Notes |
2,370.7 |
- |
|
Receivables securitisation facility |
- |
16.1 |
|
Capital repayment on finance leases |
(0.3) |
(0.8) |
|
Other loans |
- |
(0.1) |
|
|
28.2 |
(147.7) |
|
|
|
|
|
Increase/(decrease) in cash |
(105.9) |
116.2 |
|
|
|
|
INEOS Group Holdings
RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS FUNDS
|
|
Equity Shareholders Funds |
|
|
(€ in millions) |
|
|
|
|
At January 1, 2007 |
390.7 |
|
Retained profit for the current period |
314.0 |
|
Currency translation differences |
(18.9) |
|
|
|
|
At June 30, 2007 |
685.8 |
INEOS Group Holdings
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PREPARATION
Ineos Group Holdings plc (Ineos Group Holdings or the "Company"), was incorporated on May 14, 2001 as a holding company to house the ownership interests in certain chemical businesses acquired and controlled by a common owner. Our results of operations reflect the purchase of Ineos Chlor from July 3, 2006; Ineos Vinyls from July 26, 2006 and the Dormagen EO/EG business from August 31, 2006.
The consolidated financial statements include all subsidiaries of the Company. Intra-group transactions and balances have been eliminated on consolidation. The financial and operating results for any period less than a year are not necessarily indicative of the results that may be expected for a full year.
The accompanying consolidated financial statements of the Company are unaudited, with the exception of the balance sheet as at December 31, 2006 which has been extracted from audited financial statements.
2. PRINCIPAL ACCOUNTING POLICIES
The financial information has been prepared using accounting policies in accordance with UK GAAP. The financial information has been prepared under the historical cost convention and in accordance with the accounting policies set out in the Company's annual report for the year ended December 31, 2006.
3. SEGMENTAL INFORMATION
Class of business
The Company reports under the following four business segments: O&P North America, O&P Europe, Refining and Chemical Intermediates. The previously reported Corporate segment was a legacy from the Innovene acquisition. During the course of 2006 we restructured the operations of Innovene and removed the corporate activities that were previously included in this segment. The remaining activities have now been fully absorbed by the business segments.
The turnover and operating profit attributable to each different class of business as measured under UK GAAP is as follows:
|
|
Three-Month Period Ended June 30, |
|
Six-Month Period Ended June 30, |
|||
|
|
2006 |
2007 |
|
2006 |
2007 |
|
|
|
(€ in millions) |
|
(€ in millions) |
|||
|
Turnover |
|
|
|
|
|
|
|
O&P North America |
753.6 |
705.9 |
|
1,486.6 |
1,446.9 |
|
|
O&P Europe |
1,946.8 |
2,402.4 |
|
4,073.4 |
4,804.0 |
|
|
Refining |
2,523.8 |
2,333.5 |
|
5,271.0 |
4,379.4 |
|
|
Chemical Intermediates |
2,943.9 |
3,399.3 |
|
5,430.2 |
6,745.6 |
|
|
Corporate and eliminations |
(2,145.8) |
(1,906.0) |
|
(3,483.9) |
(3,816.9) |
|
|
|
6,022.3 |
6,935.1 |
|
12,777.3 |
13,559.0 |
|
|
EBITDA before exceptionals |
|
|
|
|
|
|
|
O&P North America |
77.8 |
63.3 |
|
129.5 |
119.8 |
|
|
O&P Europe |
137.7 |
123.1 |
|
223.7 |
341.7 |
|
|
Refining |
156.1 |
181.4 |
|
317.3 |
218.8 |
|
|
Chemical Intermediates |
239.1 |
300.5 |
|
462.7 |
561.1 |
|
|
Corporate and eliminations |
(28.3) |
- |
|
(57.0) |
- |
|
|
|
582.4 |
668.3 |
|
1,076.2 |
1,241.4 |
|
Reconciliation of earnings before operating exceptional items, interest, taxation, depreciation and amortisation (‘EBITDA') to operating profit:
|
|
Three-Month Period Ended June 30, |
|
Six-Month Period Ended June 30, |
||
|
|
2006 |
2007 |
|
2006 |
2007 |
|
|
(€ in millions) |
|
(€ in millions) |
||
|
|
|
|
|
|
|
|
EBITDA before exceptionals |
582.4 |
668.3 |
|
1,076.2 |
1,241.4 |
|
Depreciation and amortisation |
(125.0) |
(224.0) |
|
(253.2) |
(415.2) |
|
Exceptional administrative expenses |
(16.2) |
(11.0) |
|
(28.2) |
(15.9) |
|
Operating profit (including share of operating profit of associate) |
441.2 |
433.3 |
|
794.8 |
810.3 |
Adjusted pro forma EBITDA before exceptionals
Adjusted pro forma EBITDA before exceptionals for the quarter ended June 30, 2006 was €623.2 million, after an adjustment of €15.0 million for lost margins at our Chocolate Bayou facility and €25.8 million in respect of the acquisition of the ChlorVinyls business which did not occur until the third quarter of 2006. Adjusted pro forma EBITDA before exceptionals for the six month period ended June 30, 2006 was €1,179.7 million, after an adjustment of €68.0 million for lost margins at our Chocolate Bayou facility and €35.5 million in respect of the acquisition of the ChlorVinyls business which did not occur until the third quarter of 2006. The Chocolate Bayou adjustment reflects the estimated impact of lost margins in the period from both lost volumes and higher costs as a result of the August 10, 2005 fire at the Chocolate Bayou facility. The acquisition adjustment reflects the results of the ChlorVinyls business as if it had been acquired on January 1, 2006.