Unique Chemistry,
Sustainable
Solutions
Annual Report and Accounts 2022
Making a difference through Innovation, Growth and Efficiency.
Elementis is a global specialty chemicals company. We deliver unique chemistry, sustainable solutions; our products make our customers' formulations look, feel and perform at their best.
Our purpose
At Elementis, we bring a distinctive combination of expertise, innovation and teamwork to every formulation challenge. We create high-value specialty additives that enhance the performance of our customers' products and make a positive change
in the world.
16 | 22 | |
SUPPLY CHAIN | INNOVATION | |
Our response to ongoing challenges | Key pillar for growth |
36 | 107 | |
SUSTAINABILIT Y | WORKFORCE ENGAGEMENT | |
Improved outcomes | Programme of visits to the Company's operations |
C O N T E N T S
S T R AT E G I C R E P O R T | Stakeholder engagement | 72 | C O R P O R AT E G OV E R N A N C E | F I N A N C I A L S TAT E M E N T S | |||
Elementis today | Section 172(1) statement | 74 | Chair's introduction | Independent auditor's report | 156 | ||
Our business at a glance | 2 | Finance report | 76 | to governance | 96 | Consolidated income statement | 164 |
2022 highlights | 3 | Operating review | 82 | Board of Directors | 98 | Consolidated statement of | |
Purpose | 4 | Risk management | 86 | Executive Leadership team | 100 | comprehensive income | 164 |
Chair's statement | 6 | Principal risks and uncertainties | 90 | The UK Corporate | Consolidated balance sheet | 165 | |
Chief Executive Officer's review | 8 | Viability and going concern statement | 95 | Governance Code | 102 | Consolidated statement of | |
Our investment case | 12 | Division of responsibilities | 103 | changes in equity | 166 | ||
Our market environment | 14 | Board leadership and | Consolidated cash flow statement | 167 | |||
Supply chain in action | 16 | Company purpose | 104 | Notes to the consolidated | |||
Our business model | 18 | Stakeholder engagement | 106 | financial statements | 168 | ||
Innovation at Elementis | 22 | Workforce engagement | 107 | Company balance sheet | 215 | ||
Our strategy | 24 | Shareholder engagement | 110 | Company statement of changes | |||
Key performance indicators | 32 | Board responsibilities | 111 | in equity | 216 | ||
Sustainability | 34 | Composition, succession | Notes to the company financial | ||||
Materiality | 39 | and evaluation | 113 | statements of Elementis plc | 217 | ||
Climate strategy | 42 | Nomination Committee report | 115 | ||||
Protecting the environment | 57 | Audit Committee report | 119 | S H A R E H O LD E R I N FO R M ATI O N | |||
Supportive culture | 61 | Directors' Remuneration report | 124 | Alternative performance measures | |||
Responsible business | 68 | Directors' report | 152 | and unaudited information | 222 | ||
Non-financial information statement | 71 | Directors' responsibilities | 155 | Five year record | 224 | ||
Shareholder services | 225 | ||||||
Corporate information | 226 | ||||||
GRI index | 227 | ||||||
Glossary | 230 |
CAUTIONARY STATEMENT
The Annual Report and Accounts for the financial year ended 31 December 2022, as contained in this document ('Annual Report'), contains information which viewers or readers might consider to be forward looking statements relating to or in respect of the financial condition, results, operations or businesses of Elementis plc. Any such statements involve risk and uncertainty because they relate to future events and circumstances. There are many factors that could cause actual results or developments to differ materially from those expressed or implied by any such forward looking statements. Nothing in this Annual Report should be construed as a profit forecast.
Elementis plc
Annual Report and Accounts 2022
1
Q
How is Elementis delivering
on your commitments,
nurturing your people and
living your purpose?
A
At Elementis, we collaborate with our customers to develop innovative and sustainable solutions, while caring for our people and protecting the environment.
Combining our leading positions in rheology, surface modification and formulation, access to unique natural materials and global footprint, we create high-value specialty additives that enhance the performance of our customers' products and make a positive change in the world.
We manufacture safely, responsibly and effectively; we provide opportunities for everyone at Elementis to connect to others; to grow their experience and to make a real impact.
Elementis plc
Annual Report and Accounts 2022
S T R A T E G I C R E P O R T
C O R P O R A T E G O V E R N A N C E
F I N A N C I A L S T A T E M E N T S
S H A R E H O L D E R I N F O R M A T I O N
2
Our business at a glance
Working with our customers across
the world to solve their product performance
and sustainability challenges
Who we are
Elementis is a specialty chemicals company with over 1,300 employees, operating at 17 manufacturing sites across the globe.†
Founded in 1844, we are listed on the London Stock Exchange and are a constituent of the FTSE 250 index.
PERSONAL CARE
OV E RV I E W
We are a leading global supplier of rheology◊ modifiers and anti-perspirant actives to personal care product manufacturers. Our products help make skin creams smooth, nail polish glow and anti-perspirants work.
What we do
We create specialty chemicals that deliver crucial end product attributes across a range of industries including cosmetics, coatings and long life plastics. Innovation is at the heart of what we do; our focus is on creating solutions that deliver performance improvements and enhanced sustainability credentials.
Sales | Adjusted operating |
profit | |
$212m | $53m |
Read more on page 82
How we do it
Combining our leading positions in rheology◊, surface modification and formulation, access to unique natural materials and global footprint, we deliver Enhanced Performance Through Applied Innovation to our customers around the world.
COATINGS*
OV E RV I E W
We supply rheology◊ modifiers and other complementary specialty additives to manufacturers of industrial coatings and decorative paints. Our products help make industrial coatings last longer, decorative paints more stain resistant and sealants apply evenly.
- Figures are post Chromium sale, which took place on 31 January 2023.
-
Learn more about rheology and our technical expertise on pages 22-23. * Effective 1 January 2023, the results of the Coatings and Talc
segments will be reported under a new segment called Performance Specialties, which reflects a change in the internal organisation structure used for management, internal reporting purposes and the allocation of strategic resources.
Sales | Adjusted operating |
profit | |
$389m | $73m |
Read more on page 83
TALC*
OV E RV I E W
We are the second largest global supplier of talc based additives to industrial end markets including long life plastics, technical ceramics and packaging manufacturers. Talc helps to make long life plastics stronger and lighter, gasoline particulate filters work and food packaging recyclable.
Sales | Adjusted operating |
profit | |
$136m | $nil |
Read more on page 84
Elementis plc
Annual Report and Accounts 2022
3
Where we operate
Global | Locations | Continents |
Segments | worldwide | |
2 | 23 | 3 |
*
K E Y
Continuing Operations
Discontinued Operations
* We have two sites in Taiwan 1km from each other.
2022 highlights
FINANCIALOPERATIONAL HIGHLIGHTS
Revenue | Adjusted operating | Adjusted operating | Total recordable | |||||||||||||||||||||||||||||||||||
profit | margin | incident rate (TRIR) | ||||||||||||||||||||||||||||||||||||
$736.4m* | $100.5m* | 13.6%* | 0.67 | |||||||||||||||||||||||||||||||||||
2020 | $604.4m | 2020 | $71.2m | 2020 | 11.8% | 2020 | 0.68 | |||||||||||||||||||||||||||||||
2021 | $709.4m | 2021 | $88.0m | 2021 | 12.4% | 2021 | 0.90 | |||||||||||||||||||||||||||||||
2022 | $736.4m | 2022 | $100.5m | 2022 | 13.6% | 2022 | 0.67 | |||||||||||||||||||||||||||||||
Operating profit/(loss) | Profit/(loss) before tax | Net debt2 | Lost time accidents (LTA) | |||||||||||||||||||||||||||||||||||
$(41.8)m* | $(54.8)m* | $(366.8)m | 3 | |||||||||||||||||||||||||||||||||||
2020 | $(35.3)m | 2020 | $(74.1)m | 2020 | $(408.1)m | 2020 | 3 | |||||||||||||||||||||||||||||||
2021 | $11.9m | 2021 | $(7.5)m | 2021 | $(401.0)m | 2021 | 4 | |||||||||||||||||||||||||||||||
2022 | $(41.8)m | 2022 | $(54.8)m | 2022 | $(366.8)m | 2022 | 3 | |||||||||||||||||||||||||||||||
Diluted (loss)/earnings per | Adjusted diluted earnings | Ordinary dividend | Environmental incidents | |||||||||||||||||||||||||||||||||||
share | per share1 | per share | ||||||||||||||||||||||||||||||||||||
(10.7)c* | 10.9c* | 0.0c | 0 | |||||||||||||||||||||||||||||||||||
2020 | (12.2)c | 2020 | 5.4c | 2020 | 0.0c | |||||||||||||||||||||||||||||||||
2021 | (1.4)c | 2021 | 8.3c | 2021 | 0.0c | |||||||||||||||||||||||||||||||||
2022 | (10.7)c | 2022 | 10.9c | 2022 | 0.0c | |||||||||||||||||||||||||||||||||
- Amounts are presented for continuing operations only and exclude discontinued Chromium operations.
1 After adjusting items - see Note 5.
2 Please see the Alternative Performance Measures section on page 222.
Elementis plc
Annual Report and Accounts 2022
S T R A T E G I C R E P O R T
C O R P O R A T E G O V E R N A N C E
F I N A N C I A L S T A T E M E N T S
S H A R E H O L D E R I N F O R M A T I O N
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Elementis plc published this content on 22 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2023 15:42:01 UTC.