INEOS Quattro Holdings Limited

Runcorn

Konzernabschluss zum Geschäftsjahr vom 01.01.2020 bis zum 31.12.2020

Annual report and financial statements Registered number 09922632 Year ended - 31 December 2020

TABLE OF CONTENTS

SECTION 1 - STRATEGIC REPORT AND DIRECTORS' REPORT

STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

SECTION 2 - CONSOLIDATED FINANCIAL STATEMENTS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INEOS QUATTRO HOLDINGS LIMITED (FORMERLY INEOS SYTROLUTION HOLDING LIMITED)

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

SECTION 3 - COMPANY FINANCIAL STATEMENTS

COMPANY'S PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

COMPANY'S BALANCE SHEET AS AT 31 DECEMBER 2020

COMPANY'S STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020

NOTES TO THE COMPANY'S FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Section 1 - Strategic Report and Directors' Report

STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Directors present their strategic report of INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) (the "Company") and its subsidiary undertakings (together the "Group") for the year ended 31 December 2020.

Review of the business

Acquisition of the BP businesses and formation of the INEOS Quattro group.

On 31 December 2020, pursuant to an acquisition agreement dated 29 June 2020 between INEOS Holdings AG and BP, certain subsidiaries of the Group agreed to purchase the Aromatics and Acetyls businesses from certain subsidiaries of BP (the "BP Acquisition" or the "BP Petrochemicals Business"), including shares in seven jointly-controlled joint ventures and the assets owned and used in relation to the Aromatics and Acetyls businesses. The total purchase price for the BP Petrochemicals business was $4,990.0 million (€4,178.3 million equivalent), subject to a completion accounts settlement process. Cash of €88.3 million was acquired with the Aromatics and Acetyls businesses.

On 31 December 2020, the Group acquired 94.9% of the shares in INOVYN Limited, a fellow subsidiary of INEOS Limited, pursuant to a contribution agreement dated 24 July 2020 between INEOS Group Investments Limited, INEOS Industries Limited, INEOS Industries Holdings Limited, the Company and INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited), a subsidiary undertaking of the Company. The Company issued two ordinary shares in exchange for the INOVYN business. The difference between the consideration of €3,416.4 million and the nominal value of the share capital issued was recorded in share premium. Cash of €118.4 million was acquired with the INOVYN business.

See note 3 of the financial statements for further details.

The INEOS Quattro group of companies was formed from 31 December 2020, headed by the Company. The INEOS Quattro group comprises four businesses: the heritage Styrolution business, the INOVYN business, the Aromatics business and the Acetyls business.

The only trading within the Group prior to 31 December 2020 related solely to the Styrolution business, which continues to be a leading global producer, marketer and merchant seller of styrenics, which is the basis for a wide range of chemical processes and products. The Styrolution business sells a mix of products that includes both commodity (styrene monomer) and standard (polystyrene and acrylonitrile butadiene styrene ("ABS") standard) products as well as Specialities (ABS specialty and copolymers).

The Aromatics business produces a variety of aromatic chemical compounds, including paraxylene, purified terephthalic acid, benzene and metaxylene, which are used in the production of a variety of products including polyester fibres, PET resins and polyester film and used in a variety of end markets such as textiles, upholstery, household items, food packaging, flexible films and industrial products.

The Acetyls business produces a variety of organic compounds, including acetic acid, acetic anhydride, methanol, ethyl acetate and vinyl acetate, which are used in a variety of end market applications including building and construction materials, paints and coatings, automotive glass, polyester fibre, PET bottles, surface coatings, inks and solvents, washing powders, wood acetylation and herbicides and pesticides.

The INOVYN business offers a portfolio of vinyls products to a number of industries, including general purpose suspension PVC, emulsion PVC and specialty suspension PVC. In addition, this business produces caustic soda, caustic potash, chlorine and chlorine by-products, brine and water, salt and hydrochloric acid. Various chlorine derivatives are also produced including chlorinated paraffins, chlorinated solvents, allylics and epichlorohydrin.

Financing arrangements

To facilitate the financing of the BP Acquisition, the Group entered into a $400.0 million Deposit Facility made available to INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) pursuant to a credit agreement dated 29 June 2020. The full $400.0 million (€361.8 million equivalent) available under the Deposit Facility was drawn on the same date, which was used to pay the purchase price deposit payable upon the signing of the BP Acquisition Agreement.

On 31 July 2020, the Group's subsidiaries, INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) and INEOS US Petrochem LLC, entered into a $2,450.0 million and €870.0 million Bridge Credit Agreement with a number of lenders (the "Bridge Facility").

On 31 July 2020, the Group's subsidiaries, INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) entered into a Term Loan A Agreement and INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) entered into a Revolving Credit Agreement.

On 31 December 2020, $2,450.0 million (€2,050.5 million equivalent) and €870.0 million was drawn under the Bridge Facility. In addition, the following was drawn under the Term Loan A Facilities on the same day:

•	$140.0 million under a dollar Term Loan A facility (the "Three-Year Dollar Term Loan A Facility") (€117.2 million equivalent);
•	$210.0 million under a dollar Term Loan A facility (the "Five Year Dollar Term Loan A Facility") (€175.8 million equivalent);
•	€120.0 million under the euro Term Loan A facility (the "Three-Year Euro Term Loan A Facility"); and
•	€180.0 million under the euro Term Loan A facility (the "Five Year Euro Term Loan A Facility").

The Group also received $1,000.0 million contribution by the Company's immediate parent undertaking (the "Equity Bridge Contribution"). The proceeds of the Bridge Facility, the Term Loan A Facilities and the Equity Bridge Contribution were used to (i) pay the purchase price consideration for the BP Acquisition and certain fees and expenses and (ii) repay the amounts outstanding under the Deposit Facility. The Revolving Credit Facility of $300.0 million remained undrawn as at 31 December 2020.

Subsequent to the year end, on 29 January 2021, the Group issued €800.0 million 2½% Euro Senior Secured Notes due 2026, $500.0 million (€406.5 million equivalent) 3⅜% Dollar Senior Secured Notes due 2026 and €500.0 million 3¾% Euro Senior Notes due 2026. In addition, the Group entered into a new Dollar Term Loan B Facility of $2,000.0 million (€1,626.0 million equivalent) and a new Euro Term Loan B Facility of €1,500.0 million. The gross proceeds received under these borrowings were used to (i) repay the amounts outstanding under the Bridge Facility, the Five-Year Euro Term Loan A Facility, the Senior Secured Term Loan B Facility that was acquired with the INOVYN business and repay the Equity Bridge Contribution in the form of a dividend to the Company's shareholder and (ii) to pay certain fees and expenses related to these transactions.

On 28 June 2021, the Group renegotiated its historic trade receivables securitisation programme that was in the Styrolution business. A further three banks have joined the programme, with the total number of lending banks now at 5. The maximum amount available under the securitisation programme will increase from €450.0 million to €600.0 million as soon as three new selling entities from the Aromatics and Acetyls business join the programme. The facility now matures on 28 June 2024. For drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was between 0.80% and 0.95%). For undrawn amounts, the facility bears interest of 0.5%.

On 28 June 2021, the Group renegotiated its trade receivables securitisation programme that was acquired with the INOVYN business. The maximum amount available under the securitisation programme remained the same at €240.0 million. The facility now matures on 30 June 2024. The interest rates were also reduced and, for drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was 1.1%), except that if any lending is funded other than by issuing Commercial Paper then the applicable interest rate is SONIA/SOFR plus 0.95% (previously the margin was 1.1%). For undrawn amounts, the facility bears interest of 0.5%.

See note 18 of the financial statements for further details.

Review of trading results

The only trading and other activity within the Group prior to 31 December 2020 related solely to the Styrolution business.

Revenue from continuing operations was €3,955.1 million for the year ended 31 December 2020 (2019: €4,884.2 million) and earnings before interest, tax, impairment, depreciation, amortisation and exceptional items and after the share of profit/(loss) of associated undertakings and joint ventures using the equity accounting method ("EBITDA before exceptionals") was €645.6 million for the year ended 31 December 2020 (2019: €704.2 million). A reconciliation of EBITDA before exceptionals to operating profit and profit before tax can be found in note 2 to the financial statements.

The INEOS Styrolution business reported a solid financial result for 2020 with EBITDA before exceptionals of €645.6 million, compared to €704.2 million for the year 2019. After a decent trading start to the year 2020, the COVID pandemic had a profound impact on the Group's business performance. The impact started towards the end of the first quarter in Asia followed by the Americas and EMEA in the second quarter. The Group saw strong impacts from lockdown measures due to customer plant closures and outbound transportation delays, mostly due to logistic constraints. The main impacts came from the automotive industry. All INEOS Styrolution plants remained operational with the exception of the plants in India that stopped all activities in April and May in line with governmental measures.

As of April 2020, the Group saw the first signs of recovery in its Asian business, followed by Americas and EMEA later in the second quarter. The main reason was strong demand for durable plastics in the Electronics and Household industry. During the pandemic, people invested in products in and around their houses. Plastics are an essential ingredient in many of these products and applications. The recovery continued into the third and fourth quarter of 2020, even leading to higher sales volumes and margins compared to those seen prior to CO VID. The Group saw top- of-cycle trading conditions in Asia due to high durable demand for exported finished products.

During the pandemic, oil and derivative product prices sharply decreased. This led to significant inventory holding losses in the second quarter of 2020. The inventory holding losses in the year 2020 were €57 million with the most material impact in the second quarter of 2020 (€71 million).

Management believes that the Group has demonstrated its resilience over the year. An important factor is the geographical and industry spread. The strong recovery and performance in the Asian market was a key contributor to the Group's results.

In 2020, the Group increased its capital expenditure spending to support its expansion projects. The Group invested in the building of a new 100 kilo tonne Acrylonitrile styrene acrylate ("ASA") plant in Bayport, Texas. ASA is a specialties product, which is mainly used in automotive and construction applications. In Europe, the Group debottlenecked its Antwerp, Belgium, styrene monomer plant to increase capacity by 50 kilo tonnes to 650 kilo tonnes in total and converted a polystyrene line in Wingles, France, into a mass ABS line. The Group is also exploring the opportunity to build an ABS plant in China.

At 31 December 2020, the Group has total equity of €2,743.2 million (2019: €1,989.8 million). Net debt at 31 December 2020 was €4,973.4 million (2019: €526.6 million).

Key exceptional items

Exceptional charges of €34.4 million have been recognised in 2020 (2019: €6.3 million). As described above, certain subsidiaries of the Group acquired the Aromatics and Acetyls businesses from certain subsidiaries of BP. Professional fees of €34.4 million have been incurred associated with the acquisition relating to legal, accounting, human resources, industry specialists, environmental specialists and other consultancy costs.

For further details of exceptional items, refer to note 4 of the financial statements.

Principal risks and uncertainties

The management of the business and execution of the Group's strategy are subject to a number of risks. The key business risks affecting the Group are set out below:

•	Operational risks - the Group's facilities are subject to operational risks and other industry risks, which could have a material adverse effect on operating results, including risk from explosion or fire and/or injured people or major release of chemicals. The Group's operations involve the use, manufacturing, handling and distribution of large volumes of hazardous materials and other chemicals. Accordingly, Safety, Health and Environmental ("SHE") risks, such as environmental contamination, property damage and personal injury, are inherent in the business. The Group's operations are subject to hazards inherent in chemicals and plastics manufacturing and the related use, storage, transportation and disposal of feedstock, products and waste. Management of these risks is therefore identified as one of the strategic priorities as it can lead to property damage, business interruption and reputational damage. The Group sets strict health, safety and environmental performance targets and is committed to continuous improvement in all aspects of operations, with the view to meeting and exceeding all relevant legislation requirements in this area. Safety, health and the environment are managed as an integral part of activities through a formal management system.
•	Raw materials and suppliers - if the Group is unable to pass on increases in raw material prices, or to retain or replace its key suppliers, or experiences supply chain disruption, its results of operations may be negatively affected. Prices for important raw materials used by the Group may significantly change from period to period. Management of volatility is therefore identified as one of the strategic priorities and the Group has implemented several countermeasures. The Group attempts to match raw material price increases with corresponding product price increases and continuously assesses the source of its raw materials and works with key suppliers.
•	The chemical industries that the Group operates in are cyclical - changing market demands and prices and global economic factors, such as risks associated with a recession and consumers' access to credit may negatively affect the Group's operating margins and impair its cash flow which, in turn, could affect its ability to make payments on its debt or to make further investments in the business. The Group has a global reach and operates in a large variety of industries and with a large variety of customers. The Group intends to grow in markets that are less sensitive to cyclicality and has a track record of generating cash flow through cyclical downturns. Whilst there may be short term impacts on margins and cash flows, the Group has ensured that it is well placed to withstand bottom of cycle conditions.
•	Economic downturns and local business risks - the Group is exposed to economic downturns and local business risks in several different countries that could adversely affect its profitability. This includes the effects from United Kingdom withdrawal from the European Union, which could impact the economic growth in Europe and interfere with the delivery streams of goods and services between the European Union and the United Kingdom. The Group has its parent companies, trading activities with customers and production facilities and warehouses in the United Kingdom. The Group has implemented significant plans to limit the impact of Brexit on its activities from liaising with employees, contingent planning for inventories and has implemented new ways of working for export sales.
•	Outbreaks of disease - the outbreak of contagious diseases may have a negative impact on the Group's business and performance, and an adverse impact on the global economy generally. During the course on 2020 and into 2021, the Group has managed the outbreak of the COVID-19 coronavirus by implementing various measures to ensure the safety of employees and the ongoing operation of the plants. See page 11 for further details.
•	Substitutes - the availability of substitute products and regulatory initiatives that may encourage the use of substitute products and may affect demand for certain of the Group's products and overall revenue and operations. In certain jurisdictions there is an adopted or proposed legislation or regulatory initiatives banning, taxing, or otherwise regulating plastics which has and will continue to affect the demand for our commodity products. The Group is dedicated to sustainability and is developing a circular economy for plastics. This is seen as a key strategic goal.
•	Competition - significant competition in the Group's industries, whether through efforts of new and current competitors or through consolidation of existing customers, may adversely affect its competitive position, sales and overall operations. The Group aims to operate as a low-cost producer and is focused on reducing the fixed and variable cost base across the production chain. The Group also positions itself compared to competitors not only on the basis of price, but on the basis of product innovation, product quality and distribution capability.
•	Key customers - the Group may be adversely affected by the loss of key customers for certain products. Unlike PVC and caustic soda, which are widely used commodity chemicals sold to a diverse customer base, certain of the Group's chlorine derivatives products are sold to a smaller number of customers, and the Group depends on certain key customers for sales of those products. Many of these sales to key customers are governed by long-term contracts.
•	Regulation - the Group is highly regulated and may incur significant costs to maintain compliance with or to address liabilities under environmental, health and safety laws and regulations. As a responsible chemical manufacturer, the Group is committed to meeting all of its legal obligations. The Group liaises with various industry bodies to understand and prepare for compliance with new regulations on a timely and cost-effective basis. Existing and proposed regulations to address climate change through reductions of greenhouse gas emissions and restrictions on other air emissions may cause the Group to incur significant costs or affect demand for products.
•	International operations and currency fluctuations - the Group is exposed to currency fluctuation risks as well as to economic downturns and local business risks in several different countries that could adversely affect its profitability. Exposures to different currencies are monitored on a regular basis to ascertain the appropriate hedging strategy, if at all.
•	Cyber security risks - a cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss. Cyber security imposes an increasing risk on companies. With a growing volume and sophistication of cyber-attacks, the risk is that sensitive business and personal information is not well protected and assets and the Group's security is not safeguarded. Various IT protocols and programmes are in place to provide availability, confidentiality and an overall security approach to all systems and business processes, including cyber security controls, like intrusion detection/intrusion prevention, firewalls, mobile device management, malware and virus protection, notebook encryption, secure VPN access, network segmentation, industrial control system security monitoring, email and internet security, security information and event management, threat and vulnerability management.
•	Leverage - the Group's leverage may make it difficult to service the debt obligations, including the Senior Notes and other debt obligations, and operate the business. If the Group were unable to obtain external financing or lost its current financing arrangements, it would severely reduce the financial liquidity with a potential of insolvency. The Group's financing principles and financial strategy aim at securing financial liquidity at all times, limiting the risks associated with financing and at the same time optimising the cost of debt. The core of the financial strategy is to safeguard the Group's strong financial profile, credit rating and thereby its financial stability. It is aligned with the Group's strategy to promote the strategic and operational performance of all of its businesses.

Section 172(1) statement

The directors have the duty to promote the success of the Company and the Group for the benefit of stakeholders as a whole and remain conscious of the impact their decisions have on employees, communities, suppliers, customers, investors and the environment. The directors focus on engagement with all stakeholders, and uses this when taking decisions.

Long term factors

The Group's principal objectives are to maintain its position as a key global supplier of its products and to increase the value of INEOS Quattro by generating strong, sustainable and growing cash flows across industry cycles. To achieve these objectives, the Group has the following key strategies:

•	Maintain health, safety, security and environmental excellence
•	Maintain and grow the Group's leadership positions to enhance competitiveness;
•	Reduce costs and realise synergies;
•	Maximise utilisation of assets;
•	Access advantaged feedstock and energy opportunities;
•	Pursue value-enhancing opportunities at cellrooms; and
•	Develop and implement a sustainable business.

The directors believe these are critical long-term factors for the success of the Group. The directors' decision making has supported the implementation of the strategy. The Group plans for strategic investments to support its goals and continually investigates potential growth opportunities. Examples of such decisions include the acquisition of two Polystyrene plants in China with the majority of its sales into focus industries, building of a new 100 kilo tonne ASA Specialties plant in Bayport, Texas and converting a Polystyrene line to a mass ABS line in Wingles, France.

The Group aims to operate and develop its business in a way that supports both the current and future needs, taking into account relevant economic, environmental and social factors. This enables the Group to sustain the business for the long term. The directors strongly believe that sustainable business management and practices will contribute to long-term business success and will strength the Group's leading position in the market and also in a circular world.

The directors ensure that the Group has sufficient resources to support its long-term growth strategy and to fund its investments. An important element is the Group's long-term cash and operational planning in relation to the capital requirements needed to grow and to extend the life span of the assets. The directors consider available and required funds as a basis for any dividend under its distribution policy.

Stakeholder considerations

Engaging stakeholders and developing meaningful partnerships is essential for long-term business success. The Group engages in regular, open and proactive dialogue with all relevant stakeholders as this is needed to understand their perspectives, expectations, concerns and needs. In this way, the Group is able to integrate stakeholder's considerations into business decision-making processes. Dialogue with stakeholders gives the Group the opportunity to explain its clear and committed approach to sustainability as well as the value of the Group's work, products and services for society.

Key stakeholders contribute to the Group's economic, social and environmental performance. Stakeholders include customers, suppliers, employees, investors, financial experts and rating agencies, local communities, industry associations, NGOs, scientific institutions, universities, government and value chain partners.

As a global leader in certain products, the Group adopts a holistic approach to looking at its entire value chain - from procurement, development, production to transport, sales, integration into customer processes and final intended use. Together with industry associations and business partners, the Group strives to achieve high and well-acknowledged sustainability standards in the industries in which it operates.

The Group is very conscious of changing attitudes to climate change, and monitors its impact on the environment, including emissions arising from operation of its assets, use of power and feedstocks and the potential impacts of climate change on its business, whether arising from regulatory change, changing weather patterns or other factors. These matters are considered by the directors in making decisions and in assessing the long-term viability of the business.

The Group is committed to maintaining a workplace that is safe, professional and supportive of teamwork and trust. The Group is committed to creating and sustaining a work environment of mutual trust where all employees are treated with respect and dignity, compensated fairly based on local market conditions, and are entitled to adequate working hours. The Group value diversity of its people and each of its employees is recognised as an important member of the team.

The Group is committed to protecting and maintaining the quality of the environment and to promoting the health and safety of its employees, contractors, suppliers, customers, visitors and the communities in which it operates. Compliance with all legislation intended to protect people, property and the environment is one of the Group's fundamental priorities and applies to its products as well as to its processes. Management lead by example and allocate the required resources to achieve excellence in SHE performance.

The need to act fairly as between members of the Company

The Company has a single shareholder and a single ultimate controlling party. Their interests are taken into account by the directors to promote fairness in decision making.

Streamlined Energy and Carbon Reporting

The Group is classified as a large unquoted group due to its size and shareholding structure. Disclosures under the Streamlined Energy and Carbon Reporting requirements for the Group are contained in the Streamlined Energy and Carbon Reporting in the Strategic Report of the consolidated financial statements of INEOS Industries Limited, an intermediate parent undertaking. This reporting covers the Group's UK operations. The consolidated financial statements of INEOS Industries Limited are available to the public and may be obtained from the Company Secretary at Hawkslease, Chapel Lane, Lyndhurst, Hampshire, SO43 7FG, United Kingdom.

Key performance indicators

In conjunction with the management of costs and working capital to improve profit the Group uses a number of key performance indicators ("KPIs") to monitor performance. These KPIs are monitored both on a product-by-product basis, by businesses and also for the Group as a whole, compared to budget and the prior year:

•	EBITDA before exceptional - earnings before interest, tax, impairment, depreciation and amortisation, and exceptional items and after the share of profit/(loss) of associated undertakings and joint ventures. A review of the performance of EBITDA before exceptional compared to the prior year is noted on page 6.
•	TCIR - total case incident rate as defined by U.S. Occupational Safety and Health Administration ("OSHA"), which counts injuries per 200,000 worked hours. The Group aims to continuously improve the KPI used to measure safety demonstration and main company SHE performance on par with industry leaders. In 2020, 13 recordable injuries occurred at the Company's sites globally and the TCIR was at 0.18. This compares to 2019 when there were 8 recordable injures at the Group's sites globally and the TCIR was 0.12. This is the second best SHE performance since the formation of the Company. The Group aims to work and operate in an injury free environment and will continue towards that goal in 2021.
•	Operating cash generation - this is defined as net cash flows generated from operating activities before taxation paid, less acquisitions of intangible assets and property, plant and equipment. Operating cash generation in 2020 was €352.9 million (2019: inflow of €592.0 million).
•	Net debt to EBITDA before exceptional ratio - this is defined as total gross loans and borrowings (excluding lease obligations) less cash and cash equivalents divided by EBITDA before exceptional. In 2020, the net debt to EBITDA before exceptional ratio was 7.7 times, compared to 0.7 times in 2019. However, the EBITDA before exceptional in 2020 does not include the newly acquired INOVYN, Aromatics and Acetyls businesses. On a pro forma basis, including the pro forma EBITDA before exceptional of the acquired businesses and the refinancing that occurred in January 2021, net debt to EBITDA before exceptional ratio was 4.4 times.

As a result of the acquisition of the Aromatics, Acetyls and INOVYN businesses on 31 December 2020, management will review the appropriate KPIs to monitor future performance.

Strategic future developments

The Group continues to investigate potential growth opportunities.

The Styrolution business' strategy is to develop its portfolio of businesses further with its main focus continuing to maintain its number one market position in the styrenics market. This includes a focus on growth regions, growth industries and in more specialised products and product applications. Construction commenced in 2020 of a worldscale acrylonitrile butadiene styrene ("ABS") plant in Ningbo, China, adjacent to the Ningbo polystyrene site. The annual capacity is planned to be at 600,000 tonnes and completion is expected in 2023. The development of the new site is part of the Styrolution business' larger expansion plans into China.

In addition, the Styrolution business and Am Sty, another global producer of polystyrene, announced plans in 2020 to construct a joint 100 ton per day facility in Channahon, Illinois, that will recycle post-use polystyrene products back into virgin-equivalent styrene monomer. The engineering design for the Channahon facility is under way, with construction and commissioning as the expected next phases.

The Styrolution business also partnered with Trinseo to advance plans to build the first-of-its kind polystyrene recycling plant based on depolymerisation in Wingles, France. The planned commercial scale recycling facility will be capable of processing up to 50 tons per day of post-consumer polystyrene feedstock and is expected to be fully operational by mid-2023.

Various agreements have been signed with other leading players in polystyrene production and recycling to explore and optimise advanced recycling technologies for polystyrene, such as depolymerization. These agreements will accelerate steps by the industry to reduce plastic waste by creating a more circular economy for polystyrene. In addition, the Group has plans to build a demonstration plant at its Antwerp, Belgium, site to test production of ABS plastic from recycled feedstock.

Within the newly acquired INOVYN business, there is an ongoing project to increase production of general purpose PVC at its site in Jemeppe, Belgium. This investment, which is estimated to deliver a further approximately 200 kilo tonnes of capacity together with the associated increase in VCM capacity, aims to meet demand growth across the construction, electronics, packaging, food protection, water and energy sectors. The PVC capacity first phase of the expansion programme is currently expected to be operational at the end of 2021, together with approximately 65 kilo tonnes per annum of additional VCM capacity. The second phase consisting of the remaining VCM capacity corresponding to the full 200 kilo tonnes of general purpose PVC capacity is currently under study.

During 2020, the Group became part of a seven strong consortium in a "Power to Methanol" project set up to further investigate options for sustainable methanol production in Antwerp, Belgium. The Group will contribute to a joint feasibility study for the production of methanol from captured carbon dioxide and sustainably generated hydrogen. Subject to the success of the study, an industrial scale demonstration plant could be built at the Group's Lillo, Belgium site.

The Group launched a new business to develop and build clean hydrogen capacity across Europe, in support of the drive towards a zero-carbon future. See further details under the section "Corporate social responsibility" further on in this Directors' Report. Subsequent to the year end, the Group announced a plan to build a new clean hydrogen supply hub at its site in Rafnes, Norway, which includes the plan to build electroylers to produce clean hydrogen through the electrolysis of water, powered by zero-carbon electricity.

The Group will undertake a major investment in a new mechanical vapour recompression unit to decarbonise its solid salt process at Tavaux, France. The planned investment will deliver a major improvement in the energy efficiency of the Tavaux operations by converting its brine concentration process to run on steam produced from electricity rather than gas. This will ultimately deliver a reduction in primary energy consumption and a reduction in CO2 emissions. Project teams will be formed in 2021, with the aim of starting the new unit at the end of 2023.

Within the new Aromatics and Acetyls businesses, the key strategic focus is the integration of the newly acquired business into the INEOS operating model. The key priorities are to maintain safe and reliable manufacturing operations while transitioning the business to INEOS processes. This includes aligning the newly acquired business to INEOS processes and delivering significant cost synergies.

The Aromatics business operates large scale, strategically located, cost competitive production sites that utilise leading edge proprietary technology to provide competitive advantage. The strategy for the business is to operate the manufacturing facilities safely, reliably and at high production rates that will further strengthen the Group's market position. The Group is progressing a major upgrade of its PTA plant in Indonesia that will increase the competitiveness of the asset polyester value chain. The investment will deliver a major improvement in the efficiency of the Merak operations by installing a more modern, larger oxidation reactor, an overhead heat recovery system and modifying the main process air compressor. The effect will be to significantly reduce energy consumption, chemical usage and utilities demand. The increase in capacity it delivers will reduce the Indonesia polyester value chain's dependence on imports of PTA. The installation phase is now complete and the Group will move onto the next phase, optimising the performance of the new technology in order to deliver the energy and capacity benefits.

In addition, INEOS has approved the next stage of the development of the Infinia technology, with the construction of a pilot plant at the Naperville facility due to be completed this year. The objective of the Infinia programme is to create an attractive, scalable new circular business opportunity focused around Chemical Recycling of PET that has strong long term growth prospects.

Within the newly acquired Acetyls business, there are ongoing projects due for completion in 2021. In Hull, United Kingdom, the business is completing a series of projects to deliver improvements in primary energy consumption that will result in reductions of CO2 emissions and the variable production costs of acetic acid. In Ulsan, Korea, the business' joint venture will complete a small debottleneck of the Acetic plant of approximately 60 kilo tonnes with this capacity being available in 2022. In China, the business is finalising plans for a debottleneck of the its acetic acid joint venture in Chongqing by approximately 70 kilo tonnes and is in discussions with Zhejiang Petroleum Chemical Corporation (ZPPC) to build a new acetic acid plant in Zhoushan, China, with a likely final investment decision being taken during 2022.

The Group will continue to focus on those areas which can be controlled including performance on health and safety, improved reliability of production and the continued reductions in the fixed cost base. Additionally, the Group will remain focused on controlling capital expenditure and working capital.

COVID-19 coronavirus

COVID-19 was classified as a Public Health Emergency of International Concern by the World Health Organisation in March 2020.

Many of the Group's manufacturing facilities are categorised as critical infrastructure and so it is essential that they continue to operate. Protecting the Group's employees and ensuring that they stay healthy has been one of the primary objectives. This resulted in a number of changes to standard working practices and shift patterns to reduce personnel on site to those defined as operationally critical in order to adhere to social distancing rules in line with local government advice.

The Group also faced the risk of disruptions to its operations, including due to lockdown and other similar measures. For example, the Styrolution business in India was affected by a temporary countrywide closure of industrial plants enforced by the government authorities. In addition, the Group has experienced delayed shipments to customers due to logistics constraints, including container and driver shortages and, particularly in Asia, the closure of local borders, as well as deferrals of orders by customers. The impact was mainly seen in the first quarter in Asia and in the second quarter in the Americas and EMEA. The Styrolution business has since shown a strong recovery in the second quarter in Asia and in the third quarter in the Americas and EMEA.

Management has taken certain measures aimed to maintain sufficient resources throughout the COVID-19 pandemic, such as reviewing the timing of turnarounds (some of which were deferred until later in 2020 or into 2021 such as the VCM turnarounds at Stenungsund and Tavaux in the newly acquired INOVYN business, which were postponed until September-October 2020 and March-April 2021 respectively), adjusting capital expenditure programmes, reducing net working capital requirements and maintaining strict control over discretionary spend. The INOVYN business has also experienced lower PVC demand, with PVC demand in Europe dropping by nearly 40% in the second quarter of 2020, mainly due to reduced activity in the building and construction sectors, although demand has since largely recovered. Product availability of caustic soda decreased due to reduced PVC production, leading to an increase in prices in the second quarter of 2020, although prices have since fallen as PVC production and product availability of caustic soda picked up. In purified terephthalic acid ("PTA"), the newly acquired Aromatics business has been able to safely and reliably continue operations at all is plants. However, sales volumes have been negatively impacted by reduced demand for polyester fibre, with the apparel sector the slowest to recover. Some products have shown a resilience to COVID-19, such as Aldehydes within the European Acetyls business, where margins and volumes remained broadly in line with forecast and reflect the tighter market supply balance for this product. Prices for energy and ethylene have decreased especially in the second quarter of 2020, which has been driven by the reduction in oil prices. A series of programmes to preserve cash were implemented during this period, including a review of the timing of turnarounds, a reduction in the levels of non-essential capital expenditure and a reduction of non-essential fixed cost expenditure.

As of the date of these financial statements, despite the availability of vaccines, government measures continue to be imposed and continue around the world as new strands of the COVID-19 virus have been discovered. The COVID-19 pandemic situation is dynamic, and updates on travel restrictions, shutdowns on non-essential businesses and shelter-in-place/stay-at-home orders are continually evolving. The extent of the COVID-19 outbreak's effects on the Group's operational and financial performance will depend on future developments, including the duration, spread and intensity of the outbreak and the government measures implemented in response, or whether widespread shutdowns return, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. Although the directors cannot predict the extent and duration of COVID-19 crisis, the directors have undertaken a rigorous assessment of the potential impact of the COVID-19 pandemic on demand for its products and the impact on margins for over 12 months from the date of signing these financial statements.

Whilst there is significant uncertainty due to the COVID-19 crisis, on the basis of the assessment described above, together with a strong balance sheet and access to liquidity, the directors have concluded that it is appropriate to prepare the financial statements on a going concern basis.

Non-financial information statement

See sections in the Directors' Report on employees and corporate social responsibility, and the action on principal risks and key performance indicators in this Strategic Report.

Approved by the Board and signed on its behalf by

28 June 2021

M J Maher, Director

DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their report and the audited consolidated financial statements of INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) (the "Company") and its subsidiary undertakings (together the "Group") for the year ended 31 December 2020.

Principal activities

The principal activities of the Group are the manufacture and sale of a range of chemicals used in a variety of applications. The principal activity of the Company is to act as a holding company.

Results for the year

The results of the Group are set out in the consolidated income statement on page 23 which shows a profit for the year of €207.0 million (2019: €323.0 million).

Dividends

Total interim dividends of €369.3 million were declared and paid during the year (2019: €582.2 million). The directors do not recommend the payment of a final dividend (2019: €nil).

Future developments

Future developments are discussed in the Strategic Report.

Subsequent events

Refinancing

Subsequent to the year end, on 29 January 2021, the Group issued €800.0 million 2½% Euro Senior Secured Notes due 2026, $500.0 million (€406.5 million equivalent) 3⅜% Dollar Senior Secured Notes due 2026 and €500.0 million 3¾% Euro Senior Notes due 2026. In addition, the Group entered into a new Dollar Term Loan B Facility of $2,000.0 million (€1,626.0 million equivalent) and a new Euro Term Loan B Facility of €1,500.0 million. The gross proceeds received under these borrowings were used to (i) repay the amounts outstanding under the Bridge Facility, the Five-Year Euro Term Loan A Facility, the Senior Secured Term Loan B Facility that was acquired with the INOVYN business and repay the Equity Bridge Contribution in the form of a dividend to the Company's shareholder and (ii) to pay certain fees and expenses related to these transactions.

Financing arrangements

On 28 June 2021, the Group renegotiated its historic trade receivables securitisation programme that was in the Styrolution business. A further three banks have joined the programme, with the total number of lending banks now at 5. The maximum amount available under the securitisation programme will increase from €450.0 million to €600.0 million as soon as three new selling entities from the Aromatics and Acetyls business join the programme. The facility now matures on 28 June 2024. For drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was between 0.80% and 0.95%). For undrawn amounts, the facility bears interest of 0.5%.

On 28 June 2021, the Group renegotiated its trade receivables securitisation programme that was acquired with the INOVYN business. The maximum amount available under the securitisation programme remained the same at €240.0 million. The facility now matures on 30 June 2024. The interest rates were also reduced and, for drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was 1.1%), except that if any lending is funded other than by issuing Commercial Paper then the applicable interest rate is SONIA/SOFR plus 0.95% (previously the margin was 1.1%). For undrawn amounts, the facility bears interest of 0.5%.

Research and development

Within the Styrolution businesses, there are global research and development sites in Cologne, Germany, Antwerp, Belgium; Moxi, India and regional development centres in Cologne, Germany; Wingles, France; Channahon, US; Moxi, India; and Ulsan, South Korea, plus external research and development partners, which include Neue Materialien Bayreuth GmbH. The styrenics industry research centres facilitate the joint development of high value-added products and focus on acrylonitrile butadiene styrene ("ABS") Standard, ABS/acrylonitrile styrene acrylate/styrene-acrylonitrile specialties, polystyrene and styrene-butadiene block copolymers products.

The approach to styrenics research and development is twofold: (i) for commodity (styrene monomer) and standard products (ABS Standard and polystyrene), the focus is on optimising the manufacturing process to further improve the business' cost position; and (ii) for specialties, the objective is to develop tailor-made solutions for customers to generate unique value propositions.

To strengthen the styrenics research and development capabilities, in 2013 the Group entered into a partnership with the University of Bayreuth and Neue Materialien Bayreuth, an independent research and technology development provider in the field of new materials. Since 2013, the Group has established further partnerships in this field: it is co-developing new high-strength fibre composites together with the institute Neue Materialien Fuerth. The Group recently entered into a collaboration in the field of sustainable materials with the University of B-Ghent. The Group has also conducted research on an advanced polystyrene recycling process under Project "Resolve" (funded by the German Ministry of Education and Research). In Asia and the Americas, the Group maintains co-operations with established institutes for polymer science (Ulsan University, Rutgers University) to discuss development needs in local projects.

Within the INOVYN business, there are research, technology and engineering facilities in Jemeppe, Belgium; Runcorn, UK; Porsgrunn, Norway; and Rosignano, Italy. The headquarters for the research and innovation activity is located in Jemeppe and covers electrolysis, VCM, PVC, allyl chloride, epichlorohydrin, perchloroethylene and chloromethanes processes. The electrolysis pilot plant is located in Rosignano and is focused on improvements in the electrolysis portion of the chlorine and caustic soda manufacturing processes. The main VCM and PVC pilot plants are located in Jemeppe. At Porsgrunn, the Group has a satellite facility focusing on the improvement of VCM processes, and on the development of new PVC grades. The Runcorn team provides engineering support for all assets and major investment projects.

INOVYN's research, technology and engineering activities are focused on: (i) improving variable production costs, reliability and productivity of all processes; (11) developing new resins and new applications and producing products that generate higher value on the market in line with customer and legislative requirements; (iv) optimising the product mix along with the different production lines; (iv) improving the quality of existing grades; and (v) performing research and innovation activities for the potassium chloride electrolysis process.

The Aromatics and Acetyls businesses have two research and development centres located in Naperville, US and Hull, UK focusing on purified terephthalic acid ("PTA"), paraxylene, recycled PTA from waste PET and Acetyls. Research and development spending is primarily focused on improving cost and capital efficiency and selling and supporting licenses. The Aromatics and Acetyls businesses' research and development efforts have resulted in technological advances that offer these businesses various competitive advantages. For example, the Aromatics business' PTA platform used in the Zhuhai plant has resulted in capital expenditure savings compared to conventional technology and reduced equipment count from the previous generation of technology. These technological advancements have also lowered variable costs and have reduced greenhouse gas emissions and solid waste disposal.

In the Acetyls business, acetic acid, using the Cativa® technology, has been continuously optimised and commercially operated in multiple plants. The latest development, Cativa® XL process, offers advantaged capital efficiency through reduced process complexity and variable cost improvements through efficient heat integration leading to reduced steam consumption. The SaaBreTM process is the Acetyls business' recently developed new acetic acid technology, developed at the research and development facility in Hull, UK. The process avoids the use of methanol and utilises synthesis gas directly to produce acetic acid.

During 2020, the Styrolution business spent €12.8 million on research and development (2019: €13.8 million).

Donations

The Group made no political contributions (2019: €nil).

Financial risks

The Group's operations expose it to a variety of financial risks that include the effects of changes in price risk, credit risk, currency fluctuation risk, liquidity risk and interest rate risk. The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group where appropriate. The Group is exposed to commodity price risk as a result of its operations. However, given the size of the Group's operations, the cost of managing exposure to such risk exceeds any potential benefits. The Group manages its credit exposures with a set of policies for ongoing credit checks on potential and current customers or counterparties. The Group's exposure to market risk for changes in interest rates relates primarily to its term loan borrowings upon which interest is paid at variable rates and its cash resources which are invested at variable rates. Again, the cost of managing exposure to such risk exceeds any potential benefits. This policy is continually reviewed.

Directors

The directors who held office during the year, and up to the date of signing the financial statements, were as follows:

K McQuade	(resigned 12 January 2021)
M Fieseler	(resigned 12 January 2021)
G W Leask
J F Ginns
A C Currie	(resigned 12 January 2021)
S M Harrington	(appointed 10 September 2020)	(resigned 12 January 2021)

M J Maher was appointed as a director on 17 March 2021.

Employees

The Group places considerable importance on communication with employees. This is to ensure that employees at all levels of the organisation are kept aware of key business developments, and in particular financial performance, so as to focus attention on key performance metrics. Town Hall sessions, virtual in 2020 and in the future at each site, once the COVID pandemic allows travel, are held at various points in the year that are hosted by members of the Executive Committee, regional leadership teams and site management. Business news items are also communicated in local language to the organisation either via cascade or direct to individuals via email, Bulletin Boards and Intranet facilities.

Work groups in the manufacturing areas have daily "toolbox talks" that cover SHE, critical operational items for the day and business developments. The Group undertakes employee surveys on a regular basis and there are action plans in place to address issues arising. INEOS is committed to an environment where open, honest communications are the expectation, not the exception. There is encouragement to discuss issues with line managers or other managers. In addition, there is an "INEOS Speak Up!" service for those employees wishing to report more serious unethical or improper behaviour. The Group has regard to employees' interests and take employee views into account when making decisions.

The Group operates in full accordance with prevailing employment legislation including information and consultation with employees and their representatives on matters affecting their interests. Outside of any necessary formal consultation process, there are regular briefings between the Company and the Works Councils/Trade Union bodies in each region.

The Group facilitates a number of schemes designed to encourage employees to deliver key business targets. This includes a discretionary Short-Term Incentive Plan and a Long-Term Incentive Plan, both of which are designed to focus attention on key areas of performance such as SHE, EBITDA before exceptionals, working capital, plant reliability and fixed costs. The Short-Term Incentive Plan is a discretionary Business Bonus Scheme which incentivises employees to meet key targets each year through the potential to receive a bonus pay-out. Each individual also has a set of personal review targets that are used as the basis of rewarding individual performance through pay increases or one-off special bonuses.

It is the Group's practice to give full and fair consideration to applications for employment received from disabled persons, subject to the Group's requirements and to the qualifications, ability and aptitude of the individual in each case. In the event of employees becoming disabled, every effort is made to ensure their continued employment with the Group and to provide suitable adjustments to the workplace where appropriate.

The Group continually strives to meet, and where possible, exceed all relevant legal requirements applying to safety, health and the environment. It is committed to continuous improvement in all aspects of its operations. Through its Safety, Health, Environment Quality ("SHEQ") Policy, the Group aims to be amongst the chemical industry leaders in health, safety, environmental protection and customer satisfaction, ensuring that products meet society's increasing environmental requirements. Specifically the Group works to two guiding principles. The first being to protect the health and safety of its employees; the communities in which it operates; and the users of its products. Secondly, the Group seeks to minimise the effects on the environment from its operations; storage; transport; use and disposal of its products. The Group manages Safety, Health and the Environment ("SHE") as an integral part of its activities through a formal management system that sets clear SHE standards/targets and monitors performance against them. Itrequires all members of staff (and others who work on its behalf) to adhere to the standard in the SHE Management System and to exercise personal responsibility to prevent harm to themselves, others and the environment. Comprehensive SHE information and training is provided to all employees, with SHE objectives set for every individual each year through the performance appraisal process. SHE targets also feature in the Group's discretionary Business Bonus Scheme. Appropriate SHE information and training is also provides to other who work for the Group, handle its products or operate its technologies. The Group also participates in industry wide responsible care and sustainable development activities.

Corporate social responsibility

The Group believes it operates in full accordance with all prevailing laws and regulations in each jurisdiction of operation. In addition, it complies fully with any legally established trade sanctions, embargoes or prohibitions that apply from time to time in the markets in which it operates. The Group's Executive Committees and business management teams have access to a comprehensive range of legal advice to ensure that they are kept abreast and remain compliant with such issues.

The Group is dedicated to sustainability and the development of a circular economy for plastics is seen as a key strategic goal. The Styrolution business has already made successful advances toward this goal, which were recognised with the joint award in 2019 of an Independent Commodity Intelligence Services ("ICIS") Innovation Award in the category "Innovation with Best Benefit for Environment and Sustainability". This business was also nominated as a finalist by Chemical Week magazine for its 2020 Sustainability Awards under the category "best sustainability programme".

In addition, the Styrolution and INOVYN businesses have all undergone recent sustainability assessments by EcoVardis, a global independent assessor, which are detailed assessments focused on environment, ethics, labour and human rights, and sustainable procurement. The Styrolution business reached Platinum Merit status in the most recent assessment of its Corporate Social Responsibility programme by EcoVardis, placing it in the top 1% of plastics manufacturers assessed by EcoVardis and the top 1% of all suppliers assessed by EcoVardis in all categories. The INOVYN business was awarded Gold Merit status in 2019 and delivered a further 10% year-on-year improvement in its overall score in early 2020. In particular, the INOVYN business improved its score associated with environment and labour/human rights practices, putting it in the top 3% and 1% respectively for these categories. Overall, the INOVYN business is in the top 3% of all companies assessed within its industry group.

To achieve transition towards a net zero economy, the Group is taking actions to create meaningful and measurable near and long-term reductions in footprint, whilst at the same time positioning itself to take advantage of new opportunities offered by the evolving markets including continuous optimisation of current operations to reduce energy usage, acquisition or renewable energy sources to run operations, development of clean hydrogen as fuel, capture and use or store of Carbon Dioxide off-gas, use of bio-based feedstocks instead of hydrocarbon feedstocks, development of new recycling technologies to procure polymer products containing recycled plastic and investment in new assets to create step change in emissions.

In 2019, the Group introduced INEOS Styrolution ECO, a new family of sustainable products comprising products made from post-consumer recycled material as well as renewable feedstock. The Styrolution business is one of the founding members of Styrenics Circular Solutions, promoting circular solutions in the industry in collaboration with the complete value chain and has committed to enabling a circular economy for styrenics, further improving its resource efficiency and promoting sustainable operations throughout its entire value chain. The Styrolution business has also demonstrated the advanced recycling capabilities of polystyrene with the first production of polystyrene from styrene monomer made only of depolymerised material. For ABS Standard, the Styrolution business has developed mechanically recycled grades containing post-consumer recycled material, which meet the performance and quality levels of virgin materials. The Styrolution business is also offering the integration of renewable feedstock as a replacement for fossil fuel in upstream existing petrochemical installations. In 2020, the Group launched the world's first specialty styrenics materials made using renewable feedstock within the value chain, which does not compete with food nor land use. The renewable feedstock sources are certified by the Roundtable for Sustainable Biomaterials ("RSB") to assess that they are managed in accordance with their sustainability criteria.

A number of product and process specific sustainability projects have been launched within the INOVYN business. Early conclusions on a project to benchmark the environmental footprints of INOVYN's sites show that the overall carbon footprint is approximately half the European average for caustic soda and between 25% and 33% lower for PVC resins. This is largely due to significant use of renewable and/or nuclear energy by INOVYN's sites. In October 2019, the INOVYN business launched bio-attributed PVC, known as BIOVYN™. BIOVYN™ is the world's first commercially available grade of bio-attributable PVC, manufactured at Rheinberg, Germany and Jemeppe, Belgium, using bio-attributed ethylene, a renewable feedstock derived from second-generation biomass that does not compete with the food chain. BIOVYN™ is certified by the RSB as delivering a 100% substitution of fossil feedstock in its production system, enabling a greenhouse gas saving of over 90% compared to conventionally produced PVC. INOVYN's wider sustainability programme is also developing a new generation of PVC grades that meet both the rigorous product quality and performance needs of customers, whilst moving the Group closer towards a circular, carbon-neutral economy for PVC. In addition, the INOVYN business launched a new business to develop and build clean hydrogen capacity across Europe, in support of the drive towards a zero-carbon future. The INOVYN business aims to substitute the natural gas that it currently uses in operations with clean hydrogen to contribute to the decarbonisation of INOVYN's industrial assets and to decarbonise transport between INOVYN's sites and to customers (trucks and maritime transport).

The INOVYN business is a major funder and supporter of a number of European Voluntary Commitments including both VinylPlus® and EuroChlor. The INOVYN business is also a signatory to Operation Clean Sweep®, a global initiative to ensure that there are no losses of plastic powders or pellets to the environment throughout any stage of its operations.

Within the Aromatics business, creating a circular economy for PET (the key use of PTA) will be of strategic, long-term importance. Within its Infinia technology in partnership with Danone, Unilever, Nestlé and P&G, the Aromatics business is committed to enabling a circular economy for PET to convert difficult to recycle waste PET (such as black food trays and coloured bottles) into new PTA and MEG monomers. The Aromatics business is also at the forefront of developing bio-paraxylene through its development agreement with Virent and Johnson Matthey. The Aromatics business has made significant progress toward contributing to a circular economy, for example, its PTA technology has allowed the latest PTA plant in Zhuhai to reduce greenhouse gas emissions, water discharge and sold waste disposal compared to conventional technologies.

In 2017, the Acetyls business invested in TVUK, which, as part of a consortium, will build and operate the world's first Tricoya® wood elements acetylation plant at the Saltend Chemicals Park in Hull, United Kingdom with expected completion in 2021. The co-location of the TVUK plant with the Acetyls business' acetic acid and acetic anhydride manufacturing plants creates synergies as the Tricoya technology consumes acetic anhydride and produces a side stream of acetic acid. The wood acetylation plant will manufacture acetylated Tricoya wood chips that are treated with acetic anhydride produced by the Acetyls business in Hull. In turn, the Tricoya wood chips are used to produce sustainable, high performance panel products such as medium density fibreboard and particle-board.

Engagement with supplies, customers and other parties

See disclosure in the section 172(1) statement in the Strategic Report.

Branches outside the United Kingdom

Branches of the Group have been established in Austria, Belgium, China, France, Germany, Italy, Japan, Netherlands, Norway, Portugal, Spain and Sweden.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the group financial statements in accordance with International accounting standards in conformity with the requirements of the Companies Act 2006 and the parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 101 "Reduced Disclosure Framework". Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing the parent company financial statements, the directors are required to:

•	select suitable accounting policies and then apply them consistently,
•	make judgments and accounting estimates that are reasonable and prudent;
•	state whether FRS 101 "Reduced Disclosure Framework" has been followed, subject to any material departures disclosed and exp lamed m the financial statements; and
•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

In preparing the group financial statements, International Accounting Standard 1 requires that directors:

•	properly select and apply accounting policies;
•	present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
•	provide additional disclosures when compliance with the specific requirements in international accounting standards are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance, and
•	make an assessment of the company's ability to continue as a going concern.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure of information to auditors

The directors confirm that as far as they are aware, there is no relevant audit information of which the Company's auditors are unaware and that they have taken all steps necessary as directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provision of s418 of the Companies Act 2006.

Independent auditors

In accordance with Section 485 of the Companies Act 2006, a resolution is to be proposed at the Annual General Meeting for reappointment of Deloitte LLP as auditor of the Company.

Registered address

	INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited)
	Hawkslease
	Chapel Lane
	Lyndhurst
	Hampshire
	SO43 7FG
	United Kingdom

Approved by the Board and signed on its behalf by:

28 June 2021

M J Maher, Director

Section 2 - Consolidated Financial Statements

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of INEOS Quattro Holdings Limited (the 'parent company') and its subsidiaries (the 'Group'):

•	give a true and fair view of the state of the Group's and of the parent company's affairs as at 31 December 2020 and of the Group's profit for the year then ended;
•	have been properly prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

•	the consolidated income statement;
•	the consolidated statement of comprehensive income;
•	the consolidated and parent company balance sheets;
•	the consolidated and parent company statements of changes in equity;
•	the consolidated cash flow statement;
•	the related notes 1 to 33.

The financial reporting framework that has been applied in their preparation is applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (the 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.fre.org.uk/auditorsresponsibllities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the Group's industry and its control environment, and reviewed the Group's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the Group operates in, and identified the key laws and regulations that:

•	had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, IFRS and FRS 1010, as well as laws and regulations prevailing in each country in which we identified a full-scope component.
•	do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group's ability to operate or to avoid a material penalty. These included the Group's operating licences an environmental regulations.

We discussed among the audit engagement team including significant component audit teams and relevant internal specialists such as tax, valuations, pensions and IT specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

•	reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
•	performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
•	enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
•	reading minutes of meetings of those charged with governance and reviewing any correspondence with HMRC and other tax authorities.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
•	the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and of the parent company and their environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

•	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us, or
•	the parent company financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

London, United Kingdom 28 June 2021

James Leigh, FCA, Senior statutory auditor

For and on behalf of

Deloitte LLP Statutory Auditor

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

	Note	2020	2019
		€m
Revenue	2	3,955.1	4,884.2
Cost of sales		(3,149.0)	(3,986.4)
Gross profit		806.1	897.8
Distribution costs		(222.0)	(227.7)
Administrative expenses before exceptional items		(187.7)	(213.8)
Exceptional administrative expenses	4	(34.4)	(6.3)
Total administrative expenses		(222.1)	(220.1)
Operating profit	5	362.0	450.0
Profit/(loss) on disposal of property, plant and equipment	10	0.3	(0.6)
Profit before net finance costs		362.3	449.4
Finance income	8	3.8	22.2
Finance costs	8	(77.4)	(38.3)
Profit before tax		288.7	433.3
Tax charge	9	(81.7)	(110.3)
Profit for the year		207.0	323.0
Profit attributable to:
- Owners of the parent		203.5	324.4
- Non-controlling interest		3.5	(1.4)
		207.0	323.0

All activities of the Group relate to continuing operations.

There have been some reclassifications in the prior year numbers (see note 1.3).

The notes on pages 29 to 104 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

	2020	2019
	€m
Profit for the year	207.0	323.0
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit obligations (note 21)	(5.0)	(13.1)
Deferred taxes on remeasurement of post-employment benefit obligations (note 14)	1.6	3.1
Items that may be subsequently reclassified to profit or loss
Foreign exchange translation differences of subsidiaries	(120.2)	17.3
Total other comprehensive (expense)/income for the year, net of tax	(123.6)	7.3
Total comprehensive income for the year	83.4	330.3
Total comprehensive income/(expense) attributable to:
- Owners of the parent	82.5	331.6
- Non-controlling interest	0.9	(1.3)
Total comprehensive income for the year	83.4	330.3

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

	Note	2020	2019
		€	n
Non-current assets
Property, plant and equipment	10	4,533.2	1,282.1
Intangible assets	11	2,279.7	1,372.8
Investments in equity-accounted investees	12	1,163.3	-
Other investments	12	17.3	-
Other financial assets	13	2.0	-
Other receivables	16	62.0	4.3
Employee benefits	21	33.0	-
Deferred tax assets	14	207.4	47.1
Total non-current assets		8,297.9	2,706.3
Current assets
Inventories	15	908.4	487,5
Trade and other receivables	16	1,564.3	529.8
Tax receivables for current tax		35.8	14.1
Other financial assets		-	0.3
Cash and cash equivalents	17	805.6	289.7
Total current assets		3,314.1	1,321.4
Total assets		11,612.0	4,027.7
Equity
Share capital	24	0.3	0.3
Share premium reserve		6,620.4	2,389.7
Merger reserve	25	(4,526.9)	(1,281.2)
Retained earnings		603.5	769.3
Other reserves		(25.4)	95.6
Equity attributable to owners of the Company		2,671.9	1,973.7
Non-controlling interest		71.3	16.1
Total equity		2,743.2	1,989.8
Non-current liabilities
Interest-bearing loans and borrowings	18	2,829.7	800.5
Lease liabilities	19	234.4	125.1
Trade and other payables	20	130.5	16.4
Employee benefits	21	298.9	74.1
Provisions	22	94.5	24.9
Deferred tax liabilities	14	419.8	308.5
Total non-current liabilities		4,007.8	1,349.5
Current liabilities
Interest-bearing loans and borrowings	18	2,881.6	14.5
Lease liabilities	19	77.9	21.1
Trade and other payables	20	1,769.7	601.4
Tax liabilities for current tax		88.8	44.6
Other financial liabilities	23	13.0	2.1
Provisions	22	30.0	4.7
Total current liabilities		4,861.0	688.4
Total liabilities		8,868.8	2,037.9
Total equity and liabilities		11,612.0	4,027.7

There have been some reclassifications in the prior year numbers (see note 1.3).

These financial statements were approved by the Board of Directors on 28 June 2021 and were signed on its behalf by:

INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited)

M J Maher, Director

Registered number: 09922632

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020

	Share capital	Share premium reserve	Merger reserve	Retained earnings
	€m
Balance at 31 December 2018	0.3	2,389.7	(1,281.2)	1,027.1
Profit/(loss) for the year	-	-	-	324.4
Other comprehensive (expense)/income:
Remeasurement of post-employment benefit obligations (note 21)	-	-	-	-
Deferred taxes on remeasurement of post-employment benefit obligations (note 14)	-	-	-	-
Foreign exchange translation differences of subsidiaries	-	-	-	-
Total other comprehensive income	-	-	-	-
Transactions with owners, recorded directly in equity:
Dividends (note 24)	-	-	-	(582.2)
Transactions with owners, recorded directly in equity	-	-	-	(582.2)
Balance at 31 December 2019	0.3	2,389.7	(1,281.2)	769.3
Profit for the year	-	-	-	203.5
Other comprehensive (expense)/income:
Remeasurement of post-employment benefit obligations (note 21)	-	-	-	-
Deferred taxes on remeasurement of post-employment benefit obligations (note 14)	-	-	-	-
Foreign exchange translation differences of subsidiaries	-	-	-	-
Total other comprehensive expense	-	-	-	-
Transactions with owners, recorded directly in equity:
Issue of shares (note 24)	-	4,230.7	-	-
Acquisition of businesses under common control (note 3)	-	-	(3,245.7)	-
Acquisition of non-controlling interest (note 3)	-	-	-	-
Dividends (note 24)	-	-	-	(369.3)
Transactions with owners, recorded directly in equity	-	4230.7	(3,245.7)	(369.3)
Balance at 31 December 2020	0.3	6,620.4	(4,526.9)	603.5

	Other reserves	Equity attributable to owners of the Company	Noncontrolling interest	Total equity
	€m
Balance at 31 December 2018	88.4	2,224.3	17.5	2,241.8
Profit/(loss) for the year	-	324.4	(1.4)	323.0
Other comprehensive (expense)/income:
Remeasurement of post-employment benefit obligations (note 21)	(13.1)	(13.1)	-	(13.1)
Deferred taxes on remeasurement of post-employment benefit obligations (note 14)	3.1	3.1	-	3.1
Foreign exchange translation differences of subsidiaries	17.2	17.2	0.1	17.3
Total other comprehensive income	7.2	7.2	0.1	7.3
Transactions with owners, recorded directly in equity:
Dividends (note 24)	-	(582.2)	(0.1)	(582.3)
Transactions with owners, recorded directly in equity	-	(582.2)	(0.1)	(582.3)
Balance at 31 December 2019	95.6	1,973.7	16.1	1,989.8
Profit for the year	-	203.5	3.5	207.0
Other comprehensive (expense)/income:
Remeasurement of post-employment benefit obligations (note 21)	(5.0)	(5.0)	-	(5.0)
Deferred taxes on remeasurement of post-employment benefit obligations (note 14)	1.6	1.6	-	1.6
Foreign exchange translation differences of subsidiaries	(117.6)	(117.6)	(2.6)	(120.2)
Total other comprehensive expense	(121.0)	(121.0)	(2.6)	(123.6)
Transactions with owners, recorded directly in equity:
Issue of shares (note 24)	-	4,230.7	-	4,230.7
Acquisition of businesses under common control (note 3)	-	(3,245.7)	-	(3,245.7)
Acquisition of non-controlling interest (note 3)	-	-	54.3	54.3
Dividends (note 24)	-	(369.3)	-	(369.3)
Transactions with owners, recorded directly in equity	-	615.7	54.3	670.0
Balance at 31 December 2020	(25.4)	2,671.9	71.3	2,743.2

Analysis of other reserves:

	Translation reserve	Actuarial reserve	Other reserves
	€m
Balance at 1 January 2019	89.7	(1.3)	88.4
Remeasurement of post-employment benefit obligations	-	(13.1)	(13.1)
Deferred taxes on remeasurement of post-employment benefit obligations (note 21)	-	3.1	3.1
Foreign exchange translation differences of subsidiaries	17.2	-	17.2
Balance at 31 December 2019	106.9	(11.3)	95.6
Remeasurement of post-employment benefit obligations	-	(5.0)	(5.0)
Deferred taxes on remeasurement of post-employment benefit obligations (note 21)	-	1.6	1.6
Foreign exchange translation differences of subsidiaries	(117.6)	-	(117.6)
Balance at 31 December 2020	(10.7)	(14.7)	(25.4)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

	Note	2020	2019
		€	n
Cash flows from operating activities
Profit for the year		207.0	323.0
Adjustments for:
Depreciation and impairment	10	187.0	172.0
Amortisation and impairment	11	62.2	75.9
Net finance costs	8	73.6	16.1
(Profit)/loss on disposal of property, plant and equipment	10	(0.3)	0.6
Tax charge	9	81.7	110.3
Decrease in trade and other receivables		26.3	160.4
Decrease in inventories		87.8	72.1
Increase/(decrease) in trade and other payables		29.4	(90.0)
Decrease in provisions and employee benefits		(34.4)	(2.9)
Tax paid		(95.7)	(220.4)
Net cash from operating activities		624.6	617.1
Cash flows from investing activities
Interest and other finance income received		2.4	4.8
Disposal of businesses, net of cash disposed of		0.6	-
Proceeds from sales of property, plant and equipment		0.7	1.7
Acquisition of businesses, net of cash acquired	3	(3,971.6)	(133.6)
Acquisition of intangible assets		(1.0)	(2.7)
Acquisition of property, plant and equipment		(366.4)	(242.8)
Net cash used in investing activities		(4,335.3)	(372.6)
Cash flows from financing activities
Proceeds from external borrowings	18	4,487.0	288.0
Repayment of external borrowings	18	(559.8)	(179.7)
Debt issue costs	18	(67.2)	-
Interest paid		(39.1)	(34.9)
Capital element of lease payments	19	(23.8)	(21.5)
Issue of share capital		814.3	-
Dividend paid attributable to the owners of the Company	24	(369.3)	(574.9)
Dividend paid attributable to non-controlling interest		-	(0.1)
Net cash from/(used) in financing activities		4,242.1	(523.1)
Net increase/(decrease) in cash and cash equivalents		531.4	(278.6)
Cash and cash equivalents at 1 January	17	289.7	567.1
Effect of exchange rate fluctuations on cash held		(15.5)	1.2
Cash and cash equivalents at 31 December	17	805.6	289.7

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

(forming part of the financial statements)

1 ACCOUNTING POLICIES

1.1 Overview

INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) ("the Company") is a private company, limited by shares, incorporated in the United Kingdom, registered in England and Wales, and has its registered office at Hawkslease, Chapel Lane, Lyndhurst, Hampshire, United Kingdom, SO43 7FG.

The Company was incorporated on 18 December 2015, as a subsidiary of INEOS Industries Holdings Limited.

1.2 Basis of accounting

These financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group") and equity account the Group's interest in associated undertakings and recognise its joint arrangements as joint operations or joint ventures. The parent company financial statements present information about the Company as a separate entity and not about its Group.

Whilst there is significant uncertainty due to the COVID-19 crisis, on the basis of the assessment described on page 11, together with a strong balance sheet and access to liquidity, the directors have concluded that it is appropriate to prepare the financial statements on a going concern basis. The Group financial statements have been prepared on a going concern basis and approved by the directors in accordance with International accounting standards in conformity with the requirements of the Companies Act.

The notes below provide a list of the significant accounting policies adopted in the preparation of the consolidated financial statements. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Group financial statements.

1.3 Changes in presentation policies

The Group has made certain presentational changes in the primary financial statements to ensure alignment of presentation and format across the Styrolution, INOVYN, Aromatics and Acetyls businesses. This has resulted in the renaming of certain line items and reclassifications between line items in the 2019 comparative figures in the primary statements. These changes are not considered material and have no impact on the profit before tax, total assets, net assets or equity.

1.4 Measurement convention

The financial statements are prepared on the historical cost basis except for derivative financial instruments measured at fair value through the profit or loss.

1.5 Functional and presentation currency

The functional and presentational currency of the Company is the currency of its principal operating environment and has been identified as the Euro. The functional currency of the Company and its subsidiaries is determined in line with IAS 21 The Effects of Changes in Foreign Exchange Rates.

All financial information presented in Euro has been rounded to the nearest €0.1 million, except when otherwise stated.

1.6 Leases

From 1 January 2019, the Group applied IFRS 16 Leases for the first time.

IFRS 16 Leases

IFRS 16 replaced previous leasing guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases - Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

IFRS 16 introduced a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. These liabilities are measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate.

For leases in which the Group is a lessor, no significant impact arose. Lessor accounting in IFRS 16 Leases remained similar to the previous standard IAS 17 Leases, with lessors continuing to classify leases as finance or operating leases.

The Group applied IFRS 16 on 1 January 2019 using the 'modified retrospective approach' without restatement of comparative information. The details of the changes in accounting policies are disclosed below.

i) Adjustments recognised on adoption of IFRS 16 in which the Group is a lessee

The Group recognised new right-of-use assets and lease liabilities for lease contracts previously classified as operating leases, which include vessels, storage and transportation infrastructure. The nature of expenses related to those leases changed because the Group recognises a depreciation charge for right-of-use assets and interest expense on lease liabilities. Previously, the Group recognised operating lease expense on a straight-line basis over the term of the lease, and recognised assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expense recognised. In addition, the Group no longer recognised provisions for operating leases that it assesses to be onerous. Instead, the Group includes the payments due under the lease in its lease liability and recognises any required impairment of the corresponding right-of-use asset.

At commencement or on modification of a contract that contains a lease and non-lease component, the Group allocates the consideration in the contract to each component on the basis of its relative stand-alone price.

On transition lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group's incremental borrowing rate as at 1 January 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.

The table below provides a reconciliation between operating lease commitments disclosed as at 31 December 2018 and the lease liability recognised as at 1 January 2019:

	€m
Operating lease commitments as at 31 December 2018	148.5
Impact of discounting using the Group's incremental borrowing rates at the date of initial application	(48.5)
Adjustments as a result of a different treatment of extension and termination options	63.1
Exempted low-value contracts, short-term contracts and non-lease components recognised as expense	(9.1)
Scope changes (contracts in scope of IAS 17 but not regarded as a lease under IFRS 16)	(18.6)
Additional lease liabilities recognised on 1 January 2019	135.4
Finance lease liabilities recognised as at 31 December 2018	8.8
Lease liabilities recognised as at 1 January 2019	144.2
Of which are:
Current lease liabilities	18.6
Non-current lease liabilities	125.6
	144.2

Included within the lease liability on 1 January 2019 is €3.6 million in respect of related party leases.

The weighted average incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 5.1%.

The change in accounting policy affected the following items in the balance sheet on 1 January 2019:

•	Property, plant and equipment- increase of € 135.7 million from the inclusion of right-of-use assets in this balance sheet position. The increase excludes the leased assets recognised previously as finance leases of €8.5 million that were already recognised in property, plant and equipment.
•	Non-current and current lease liabilities - increase of €144.2 million. From 1 January 2019, all lease liabilities (including finance leases recognised as at 31 December 2018) have been categorised within non-current (€125.6 million) and current (€18.6 million) lease liabilities on the balance sheet.

The net impact on retained earnings at 1 January 2019 was €nil.

(ii) Practical expedients applied

The Group had a number of arrangements that were not in the legal form of a lease, for which it concluded that the arrangement contained a lease under IFRIC 4. On transition to IFRS 16, the Group did not apply the practical expedient to grandfather the definition of a lease on transition. Therefore, the new definition of a lease under IFRS 16 has been applied to all of the contracts in place on transition.

When applying the modified retrospective approach to leases previously classified as operating leases under IAS 17, the Group elected to apply the following practical expedients:

―	the use of a single discount rate to a portfolio of leases with reasonably similar characteristics,
―	reliance on previous assessments on whether leases are onerous,
―	the accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases,
―	the accounting for leases with a lease term of 12 months or less as short-term leases. The Group did not recognise right-of-use assets and liabilities for these short-term leases. The lease payments associated with them will be recognised as an expense on a straight-line basis over the lease term,
―	the accounting for leases for which the underlying asset is of low value when it is new as low value leases. The Group did not recognise right-of-use assets and liabilities for these low-value leases. The lease payments associated with them will be recognised as an expense on a straight-line basis over the lease term,
―	the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and
―	the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

(iii) Adjustments in respect of leases where the Group is a lessee and the leases were previously classified as finance leases under IAS 17

For leases classified as finance leases under IAS 17, the carrying amount of the right-of-use asset and the lease liability at 1 January 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date.

The Group applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately.

Lease policies applicable from 1 January 2019

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.

This policy is applied to contracts entered into on or after 1 January 2019.

Group as a lessee

Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate.

The lease payments include fixed payments (including in-substance fixed payments), variable lease payments that depend on an index or a rate (initially measured using the index or rate as at the commencement date), amounts expected to be paid under residual value guarantees less any lease incentives receivable. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are expensed in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the m-substance fixed lease payments a change in the assessment of whether the Group is reasonably certain to exercise an option to purchase the underlying asset, a change in future lease payments arising from a change in an index or rate, or if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee.

When the lease liability is remeasured in this way and there has been no change in the scope of the lease, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to all leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. The Group also applies the lease of low-value assets recognition exemption to leases of assets that are valued below €10,000. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

1.7 New amendments for 2020

The Group has adopted the following amendments to accounting standards for the first time in 2020 with effect from 1 January 2020, although none have had a material effect on the Group's financial statements in the year unless otherwise indicated:

•	Amendments to IFRS 3: Definition of a Business has been adopted from 1 January 2020. The Group has applied this amendment to business combinations whose acquisition dates are on or after 1 January 2020 in assessing whether it had acquired a business of a group of assets.
•	Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform has been adopted from 1 January 2020. This has been applied retrospectively to hedging relationships that existed at 1 January 2020 or were designated thereafter and that are directly affected by interest rate benchmark reform. These amendments also apply to any gain or loss accumulated in the cash flow hedging reserve that existed at 1 January 2020.
•	Amendments to References to the Conceptual Framework in IFRS Standards: The Conceptual Framework for Financial Reporting is the foundation on which the IASB develops new accounting standards. The revised Framework is more comprehensive than the old one - its aim is to provide the Board with the full set of tools for standard setting. It covers all aspects of standard setting from the objective of financial reporting, to presentation and disclosures.
•	Amendments to IAS 1 and IAS 8: Definition of Material: The IASB refined its definition of material to make it easier to understand. "Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity".

1.8 Basis of consolidation

Subsidiaries

The consolidated financial statements of the Company include all subsidiaries of the Company.

Subsidiaries are all entities controlled by the Group (including structured entities).

The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

The Group applies the acquisition method to account for business combinations, except for those acquisitions under common control. The consideration transferred for the acquisition of a subsidiary usually comprises the fair values of the assets transferred, liabilities incurred to the former owners of the acquired business, equity interests issued by the group, fair value of any asset or liability resulting from a contingent consideration arrangement, and fair value of any pre-existing equity interest in the subsidiary. The consideration transferred does not include amounts related to the settlement of pre-existing business relationships. Such amounts generally are recognised in profit or loss. Acquisition costs are expenses as incurred.

Acquisitions under common control are accounted for at book value. The difference in the book value of the assets acquired and consideration paid is recognised in retained earnings within the merger reserve. The Group has elected not to include the results of businesses acquired under common control transactions within the Group income statement for any periods prior to the date of acquiring control.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.

The Group measures goodwill at the acquisition date as:

•	The fair value of the consideration transferred; plus
•	The recognised amount of any non-controlling interests in the acquiree; less
•	The recognised amount (fair value) of the identifiable assets acquired less the liabilities assumed.

Acquisitions and disposals of non-controlling interest

Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result. Adjustments to non-controlling interests arising from disposal transactions that do not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary.

Transactions eliminated on consolidation

Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.

Special purpose entities ("SPE")

A SPE is consolidated if, based on an evaluation of the substance of its relationship with the Group and the SPEs' risks and rewards, the Group concludes that it controls the SPE.

The Group has established two SPEs, INEOS Styrolution Receivables Finance Designated Activity Company and Deutsche Bank Mexico F/1787 Styrolution, for an asset securitisation programme. The Group does not have any direct or indirect shareholdings in these SPEs. INEOS Styrolution Receivables Finance DAC is a special-purpose entity formed by the Group to purchase receivables from Group entities for purposes of a securitisation of such financial assets and is, in substance, controlled by the Group.

Deutsche Bank Mexico F/l787 Styrolution is a Mexican Trust established by INEOS Styrolution Receivables Finance DAC to purchase receivables from INEOS Styrolution Mexicana S.A. de C.V. for the purposes of securitisation of such assets. INEOS Styrolution Receivables Finance DAC is the first beneficiary of this Trust. It is therefore also, in substance, controlled by the Group.

As part of the acquisition of the INOVYN business, the Group acquired a SPE, INEOS Norway Finance Ireland Limited, for a debt securitisation programme. The Group does not have any direct or indirect shareholdings in this SPE. INEOS Norway Finance Ireland Limited is controlled by the Group as it was established under terms that impose strict limitations on the decision-making powers of the SPE's management that result in the Group receiving the majority of the benefits related to the SPE's operations and net assets, being exposed to the majority of risks arising from the SPE's activities, and retains the majority of the residual or ownership risks related to the SPE and its assets.

Associated undertakings

Associated undertakings are those entities in which the Group has significant influence, but not control or joint control over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. Associated undertakings are accounted for using the equity method of accounting and are initially recognised at cost.

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Group's share of the post-acquisition profits or losses of the investee in the income statement, and the Group's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associated undertakings are recognised as a reduction in the carrying amount of the investment. When the Group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Group and its associated undertakings are eliminated to the extent of the Group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group.

Joint arrangements

Under IFRS 11 "Joint Arrangements", investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group has assessed the nature of its joint arrangements and determined them to be either joint operations or joint ventures.

The Group recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings.

Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognised at cost and adjusted thereafter to recognise the Group's share of the post-acquisition profits or loses and movements in other comprehensive income. When the Group's share of losses on a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group's net investment in the joint ventures), the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group's interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the polices adopted by the Group.

1.9 Foreign currency

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the foreign exchange rates at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the foreign exchange rate at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities denominated in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined.

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated to the Group's presentation currency, Euros, at foreign exchange rates at the reporting date. The revenues and expenses of foreign operations are translated to Euros at monthly average exchange rates. Foreign currency differences are recognised in other comprehensive income and presented in other reserves in equity.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign currency gains and losses arising from such items are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and presented in other reserves in equity. Foreign currency differences arising on the retranslation of a hedge of a net investment in a foreign operation are recognised directly in equity, in the translation reserve, to the extent that the hedge is effective. When the hedged part of a net investment is disposed of, the associated cumulative amount in equity is recycled to profit or loss as an adjustment to the profit or loss on disposal.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at periodend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement and foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within finance income or cost. All other foreign exchange gains and losses are presented in the income statement within administrative expenses.

1.10 Classification of financial instruments issued by the Group

Financial instruments issued by the Group are treated as equity only to the extent that they meet the following two conditions:

(a)	They include no contractual obligation upon the Group to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Group; and
(b)	Where the instrument will or may be settled in the Company's own equity instruments, it is either a non- derivative that includes no obligation to deliver a variable number of the Company's own equity instruments or is a derivative that will be settled by the Company's exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the Company's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.

Non-derivative financial instruments

Non-derivative financial instruments comprise investments in debt and equity securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.

The Group initially recognises trade and other receivables on the date that they are originated. All other financial assets are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit and loss ("FVTPL"). Financial assets carried at fair value through profit and loss are initially recognised at fair value, and transaction costs are expenses in the income statement. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial assets at fair value through profit and loss are subsequently carried at fair value. Gains or losses arising from changes in the fair value of the financial assets at fair value through profit and loss category are presented in the income statement within net finance costs in the period in which they arise. Dividend income from financial assets at fair value through profit and loss is recognised in the income statement as part of the other income when the Group's right to receive payments is established.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the right to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is crated or retained by the Group is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Group has a legal right to offset the amounts an intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

The Group's non-derivative financial assets generally fall into the amortised cost category.

The Group initially recognises debt securities issued on the date that they are originated. All other financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.

The Group classified non-derivative financial liabilities into the amortised cost category. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

Trade and other receivables

Trade and other receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs that are directly attributable to the acquisition or issue. Subsequent to initial recognition they are tested for classification as per IFRS 9. If the trade receivables meet the cash flow characteristics and business model tests as per IFRS 9, then they are recognised at amortised cost using the effective interest method, less any impairment losses. If they do not qualify for being recognised at amortised cost, they are recognised at fair value through profit or loss.

Trade and other payables

Trade and other payables are recognised initially at fair value less transaction costs that are directly attributable to the acquisition or issue. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method.

Investments in debt and equity securities

Investments in debt securities are measured at amortised cost if they meet both of the following conditions and are not designated as a fair value through profit or loss:

•	The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
•	The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset is measured at fair value through other comprehensive income only if it meets both of the following conditions and is not designated as a fair value through profit and loss:

•	The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
•	The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All other financial assets, including derivatives, are classified as measured at fair value through profit and loss. When these financial assets are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised in the income statement. Where these financial assets are interest-bearing, interest calculated using the effective interest method is recognised in the income statement. Where no reliable measurement of fair value is available, investments are stated at historic acquisition cost.

Cash and cash equivalents

Cash and cash equivalents comprise of cash balances, call deposits with maturities of three months or less from the acquisition date and money market funds that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the management of its short-term commitments. Pledged balances on accounts used for payment transactions related to the securitisation of receivables are classified as cash. Bank overdrafts that are repayable on demand and form an integral part of the Groups cash management are included as a component of cash and cash equivalents for the purpose of only the statement of cash flows.

Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method.

Debt restructuring

The Group derecognises financial liabilities in accordance with the provisions in IFRS 9, with the difference between carrying amount of the financial liability and the consideration taken to the income statement. When debt is modified, the Group analyses the modifications from both a quantitative and qualitative perspective to determine if the modifications are substantial and meet the IFRS requirements for de-recognition, in which case the debt is treated as extinguished. All fees paid in connection with a debt extinguishment are expensed immediately. When a modification is accounted for as a non-substantial modification, associated fees incurred are deferred as an adjustment to the carrying value of the liability and amortised using the effective interest method.

Share capital (ordinary shares)

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

Derivative financial instruments and hedging

Derivative financial instruments

Derivative financial instruments are initially recognised at fair value. The gain or loss on subsequent remeasurement to fair value is recognised immediately in the consolidated income statement as finance income or expense. Where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged.

Cash flow hedges

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability or a highly probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognised in hedging reserve is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of the hedge is recognised immediately in the consolidated income statement as finance income or expense.

Where the forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, the associated cumulative gain or loss is removed from the hedging reserve and is included in the initial carrying amount of the non-financial asset or liability.

If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gains and losses that were recognised directly in equity are reclassified into profit or loss in the same period or periods during which the hedged expected future cash flows affect profit or loss, e.g. when interest income or expense is recognised.

For cash flow hedges, other than those covered by the preceding two policy statements, the associated cumulative gain or loss is removed from equity and included in the consolidated income statement as an adjustment to revenue and cost of sales in the same period or periods during which the hedged forecast transaction affects revenue and cost of sales in the consolidated income statement.

When a hedging instrument expires, is sold, terminated, exercised, or the hedge no longer meets the criteria for hedge accounting, hedge accounting is discontinued prospectively. The cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in equity is recognised in the consolidated income statement immediately.

1.11 Property, plant and equipment

Recognition and measurement

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes the cost of materials, labour and other costs that are directly attributable to the acquisition of the asset and bringing the asset to the location and condition necessary for it to be put into operation. Cost may also include the cost of dismantling and removing items and restoring the site on which they are located. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are recognised as cost of the asset.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Assets are derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on de-recognition of an item of property, plant and equipment (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is recognised in profit or loss in the period in which the item is derecognised.

Subsequent expenditure

Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. Ongoing repairs and maintenance are expensed as incurred.

Depreciation

Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land and assets in the course of construction are not depreciated.

Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.

The estimated useful lives are as follows:

Buildings	10 to 50 years
Plant and Equipment
Major items of plant	3 to 30 years
Major plant overhauls	2 to 4 years
Motor vehicles	5 years
Computer hardware and major software	2 to 4 years
Fixtures and fittings	3 to 40 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

1.12 Business combinations, goodwill and intangible assets

Business combinations

Business combinations are defined according to IFRS 3 as a transaction or another event in which the acquirer achieves control over one or several businesses of the acquiree. All business combinations are accounted for by applying the purchase method, except acquisitions under common control which are outside the scope of IFRS 3. Goodwill represents amounts arising on acquisition of subsidiaries, associates and jointly controlled entities and represents the difference between the cost of the acquisition and the net fair value of the identifiable assets, liabilities and contingent liabilities acquired. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, are expensed as incurred.

On a transaction-by-transaction basis, the Group elects to measure non-controlling interests, which have both present ownership interests and are entitled to a proportionate share of net assets of the acquiree in the event of liquidation, either at its fair value or at its proportionate interest in the recognised amount of the identifiable net assets of the acquiree at the acquisition date.

Acquisitions and disposals of non-controlling interests that do not result in a change of control are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. Any difference between the price paid or received and the amount by which non-controlling interests are adjusted is recognised directly in equity and attributed to the owners of the parent.

Acquisitions under common control are accounted for at book value. The difference in the book value of the assets acquired and consideration paid is recognised in retained earnings within the merger reserve. The Group has elected not to include the results of businesses acquired under common control transactions within the Group income statement for any periods prior to the date of acquiring control.

Goodwill

Goodwill that arises on the acquisition of businesses is presented within intangible assets. Goodwill is measured at cost less accumulated impairment losses. Goodwill is allocated to groups of cash-generating units and is not amortised but is tested annually for impairment.

Negative goodwill arising on an acquisition is recognised immediately in the consolidated income statement.

Other intangible assets

Intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired separately from a business are carried initially at cost. The initial cost is the aggregate amount paid and the fair value of other consideration given to acquire the assets. An intangible asset acquired as part of a business combination is recognised separately from goodwill if the asset is separable or arises from contractual or other legal rights and its fair value can be measured reliably.

The Group's intangible assets principally comprise of intellectual property rights, customer relationships, licence fees, environmental certificates, the cost of software and costs associated with obtaining access to pipelines owned by third parties.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.

Amortisation

Amortisation is charged to profit or loss on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite. Intangible assets with an indefinite useful life and goodwill are systematically tested for impairment at each reporting date. Other intangible assets are amortised from the date they are available for use. The estimated useful lives are 5 to 21 years.

These intangible assets are tested for impairment at the end of the reporting period if events or changes in circumstances indicate that the carrying value may not be recoverable. Amortisation methods, useful lives and residual values are reviewed at each reporting date an adjusted if appropriate.

Research and development

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in profit or loss as incurred.

Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalised within intangible assets only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use and capitalised borrowing costs. Other development expenditure is recognised in profit or loss as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses.

1.13 Impairment

Impairment of financial assets

A financial asset not classified at fair value through profit and loss is assessed at each reporting date to determine whether there is evidence that it is impaired.

Trade and other receivables

The Group applies the simplified approach to measuring expected credit losses following the requirements of IFRS 9 for its trade receivables and contract assets, being the lifetime expected credit loss model. That means that, beside considering objective evidence (e.g. default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers, economic conditions that correlate with defaults or the disappearance of an active market for a security), the Group takes into account a forecast of future economic conditions in the calculation of the expected loss, which requires a greater extent of judgement.

Financial assets which are considered low risk are not provided for impairment by the Group.

An impairment loss in respect of a receivable carried at amortised cost is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.

Investments in debt and equity securities

If the fair value of a debt instrument classified as FVOCI increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in the income statement, the impairment loss is reversed through profit or loss.

Impairment of equity securities classified as FVOCI are not tested for impairment under IFRS 9.

Impairment of non-financial assets excluding inventories and deferred tax assets

The carrying amounts of the Group's non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment.

For goodwill and other intangible assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount is estimated at the end of the reporting period.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the consolidated income statement.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis. A cash generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Calculation of recoverable amount

The recoverable amount is the greater of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

Reversals of impairment

An impairment loss in respect of goodwill is not reversed.

In respect of other assets, an impairment loss is reversed when there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

1.14 Inventories

Inventories, excluding engineering stocks and maintenance spares, are stated at the lower of cost and net realisable value. The cost of inventories is based on the moving average price principle and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs of bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realisable value of raw materials is based on observable market prices, adjusted for freight and handling costs. The net realisable value of finished goods and other inventories is the estimated selling price of the finished product in the ordinary course of business, less estimated costs of completion and selling.

Items owned by the Group that are held on consignment at another entity's premises are included as part of the Group's inventory.

Engineering stocks and maintenance spares are valued at moving average price. Catalysts, which are part of the chemical reaction and are consumed in the production process, are held as raw materials and consumables within inventories. These are consumed over a certain period, depending on their renewal cycles, according to normal production levels.

Cost of sales includes direct costs of raw material, distribution and handling costs.

1.15 Commodities

Contracts that are entered into and continue to be held for the purpose of receipt or delivery of non-financial items in accordance with the Group's expected purchase, sale or usage requirements (own-use contracts) are not accounted for as derivative financial instruments, but rather as executory contracts.

1.16 Government grants and similar deferred income

Government grants and similar deferred income are shown in the balance sheet as deferred income. This income is amortised on a straight-line basis over the same period as the tangible fixed asset to which it relates or the life of the related project.

1.17 Employee benefits

The Group operates a number of defined contribution plans and funded and unfunded defined benefit pension schemes. The Group also provides unfunded early retirement benefits, long service awards and an incentive plan for certain employees.

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. The contributions are recognised as an employee benefit expense in profit or loss in the periods during which related services are rendered by employees.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group operates defined benefit pension plans in the countries it has its production or distribution activities. The Group's net obligation in respect of defined benefit pension plans and other post-employment benefits is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets are deducted. The discount rate is based on the yield at the reporting date on AA credit-rated bonds that have maturity dates in line with the terms of the Group's obligations and that are denominated in the currency in which the benefits are expected to be paid.

Remeasurements of the net defined benefit liability from actuarial gains and losses and returns on plan assets greater than the discount rate are recognised immediately in other comprehensive income. The Group determines the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense is included in finance cost; all other components of employee benefit costs related to defined benefit plans are recognised as personnel expenses in the income statement.

The calculation is performed annually on the basis of an actuarial report using the projected unit credit method. When the calculation results in a defined benefit asset to the Group, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to the plan. An economic benefit is available to the Group if it is realisable during the life of the plan, or on settlement of the plan liabilities. The change in the present value of the future benefits resulting from a plan change or a curtailment is recognised as past service cost in profit or loss in the year in which they occur.

The Group recognises gains and losses from a settlement of a defined benefit plan in profit or loss when the settlement occurs. The gain or loss on settlement is the difference between the present value of the defined benefit obligation to be settled and the settlement price including payments made directly by the company in connection with the settlement.

Certain of the Group's pension plans include multi-employer schemes for employees of the Group and other INEOS or third-party companies. The method used to split the results between the Group and the other participating employers is as follows:

•	Most members are allocated to a specific company, but where this was not possible members are allocated to the largest employer within the Group.
•	Active scheme liabilities are allocated pro-rata based on the relative value of accrued pensions for active members. Deferred and pensioner members are allocated to the largest employer within the Group.
•	Total assets and cash flows are allocated in proportion to accrued pensions.
•	The allocation of total scheme liabilities is based on data collected at the last valuation date and this proportionate split has been applied consistently in the calculations.

Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short or medium-term cash bonus if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

1.18 Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. The timing of recognition requires the application of judgement to existing facts and circumstances, which can be subject to change. Provisions are determined by discounting the expected future cash flows at risk free pre-tax rates based on country specific government bond yields which match the maturity of the expected future cash flows. The unwinding of the discount is recognised in finance costs.

Estimated direct costs to be incurred in connection with restructuring measures are provided for when the Group has a constructive obligation, which is generally the same as the announcement date. The announcement date is the date on which the plan is announced in sufficient detail such that employees have valid expectations that the restructuring will be carried out.

The Group is exposed to environmental and remediation liabilities relating to its past operations. Provision for these costs is made when the Group has a legal or constructive obligation to carry out remediation works and costs can be estimated within a reasonable range of possible outcomes.

1.19 Revenue from contracts with customers

Revenue represents the invoiced value of products and services sold or services provided to third parties net of sales discounts, value added taxes and duties. Contracts for goods and services are analysed to determine the distinct performance obligations against which revenue should be recognised. The amount to be recognised is determined from the standalone selling prices for goods and services, allocated to the performance obligations. Revenue is recognised when (or as) the performance obligations are satisfied by transferring a promised good or service to a customer.

The timing of the satisfaction of a performance obligation varies depending on the individual terms of the sales agreement. Payment terms vary across the Group dependent on geographical location of each operating company. Transfer of control can occur when the product is received at the customer's warehouse, or loading the goods onto the relevant carrier, or when the product leaves the production site, depending on the international shipping terms that the product is sold under.

The pricing for products sold is determined by market prices (market contracts and arrangements) or is linked by a formula to published raw material prices plus an agreed additional amount (formula contracts). Revenue arising from the sale of goods is recognised when the goods are dispatched or delivered depending on the relevant delivery terms and point at which the control of the good or service is transferred to the customer.

The Group applies the five-step model for revenue recognition, introduced by IFRS 15 Revenue from Contracts with Customers. This model allows the Group to identify the contract with a customer; to determine the performance obligations in the contract; to establish the transaction price, which is later allocated to the performance obligations in the contract; and to recognise revenue when, or as, the entity satisfies a performance obligation, that is, that the control of the asset is transferred to the customer.

The Group has a small number of contracts that include distinct performance obligations. This results, in a limited number of cases, that revenue for certain performance obligations (being primarily separate shipping obligations) is recognised later in time. Additionally, certain customer contracts offer various forms of volume or early payment discount. These variable considerations might have as a consequence timing differences, but since the majority of contracts have terms of less than one year, the differences are solved within the period. Revenue is recognised to the extent that it is highly likely that a significant reversal in the amount of cumulative revenue recognised will not occur.

Additionally, certain customer contracts offer various forms of variable consideration in the form of early settlement discount or retrospective volume discounts. If it is highly probable that an early settlement discount will be taken and the amount is not expected to reverse when the variability is resolved, the discount is recognised as a reduction of revenue as the sales are recognised. If a volume discount applies retrospectively to all sales under the contract once a certain threshold is achieved, an estimate of the volumes to be sold and the resulting discount is calculated in determining the transaction price and this calculation is updated throughout the term of the contract.

Certain time and location swap contracts with third parties for commodities and finished goods are excluded from turnover and cost of sales.

Services provided to third parties include administrative and operational services provided to other companies with facilities on the Group's sites. Revenue is recognised at a point in time or over-time depending on whether the overtime revenue recognition criteria is met.

No contract assets and liabilities have been recognised in the balance sheet of the Group. Its impact, if any, is deemed immaterial. The performed analysis has concluded that he right of payment of the goods and services sold by the Group is unconditional, except for the passage of time. Therefore, all rights of payment have been booked as trade receivables.

No assets related to costs to obtain or fulfil a contract have been recognised. Its impact, if any, is deemed immaterial.

1.20 Finance income and costs

Interest income and interest expenses are accounted for applying the effective interest method. Interest income includes interest income on funds invested and fair value gains on financial assets at fair value through profit or loss. Interest expenses include interest expense on borrowings, the interest component of employee benefit costs net of returns on plan assets, the unwinding of the discount on provisions and fair value losses on financial assets at fair value through profit or loss. The difference between the carrying amount of a financial liability extinguished and the consideration paid is included in interest expense. Gains and losses from the measurement of monetary assets or liabilities denominated in foreign currencies are included in finance income and costs. Foreign currency gains and losses are reported on a net basis.

Costs associated with raising finance are deducted from the gross proceeds in the balance sheet and amortised over the term of the relevant financing at a constant rate over the carrying amount.

1.21 Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination or items recognised directly in equity or in other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends. A provision is recognised for those matters for which the tax determination is uncertain but is considered probable that there will be a future outflow of funds.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

•	Temporary differences on the initial recognition of goodwill;
•	Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and
•	Temporary differences related to investments in subsidiaries to the extent that it is probable that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

In determining the amount of current and deferred tax the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax periods based on its assessment of many factors, including interpretations if tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.

Deferred tax assets and liabilities are offset if it is possible that there is a legally enforceable right to offset current tax liabilities and assts because they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

1.22 Discontinued operations

A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative income statement is restated as if the operation has been discontinued from the start of the previous financial year.

1.23 Disposal groups held for sale

Disposal groups are classified as assets and liabilities held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

1.24 Segmental analysis

The Group determines its operating segments in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers are responsible for allocating resources and assessing performance of the operating segments. The chief operating decision-makers are the members of the Executive Committees of each business who report into the shareholder.

Details of the Group operating segments and the segmental analysis of revenue and EBITDA before exceptionals are shown in note 2.

1.25 Exceptional items

The presentation of the Group's results separately identifies the effect of profits and losses on the disposal of businesses, the costs incurred on acquisition of businesses, the impairment of non-current assets, the cost of restructuring acquired businesses, the impact of one off events such as legal settlements or finance costs relating to call premia and write-off of unamortised debt issue costs following substantial modification or redemption of debt as exceptional items. Results excluding disposals, impairments, restructuring costs and one-off items are used by management and are presented in order to provide readers with a clear and consistent presentation of the underlying operating performance of the Group's ongoing business.

1.26 Emissions Trading scheme

The Group participates in the EU Emissions Trading Scheme. The Scheme encourages companies to reduce carbon emissions by offering financial incentives if they achieve their annual reduction targets. If a company reduces emissions beyond their target then the surplus may be traded in the form of emissions permits.

The incentive money due from the EU Emissions Trading Scheme is recognised in the consolidated income statement within cost of sales as a reduction of energy costs once the reduction targets have been met. The emissions permits allocated under the Scheme are at nil cost. Any additional emission permits that are purchased are recognised as intangible assets. The Group recognises the revenue from such permits upon their sale to third parties.

The Group recognises a provision for emissions produced. The provision is measured at the carrying amount of the emission rights held (nil if granted, otherwise at cost) or, in the case of a shortfall, at the current fair value of the emission rights needed.

1.27 Determination of fair values

A number of the Groups accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation method as follows:

•	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
•	Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly;
•	Level 3: inputs for the asset or liability are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Fair values have been determined for measurement or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Intangible assets and goodwill

The fair value of patents, trademarks and technologies acquired in a business combination is based on the discounted estimated royalty payments that have been avoided as a result of the patent, trademark or technology being owned. The fair value of customer relationships acquired in a business combination is determined using the multi-period excess earnings method, whereby the subject asset is valued after deducting a fair return on all other assets that contribute to achieve the related cash flows.

The fair value of the cash generating units for goodwill has been determined based on estimated discounted cash flows.

Property, plant and equipment

The fair value of property, plant and equipment recognised as a result of a business combination is the estimated amount for which a property could be exchanged on the date of acquisition between a willing buyer and a willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably. The fair value of items of plant, equipment, fixtures and fittings is based on the market approach or cost approaches using quoted market prices for similar items when available or depreciated replacement cost wen appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence of buildings used for production, machinery and equipment acquired in a business combination. The fair value of land and office and laboratory buildings or warehouses acquired in a business combination is based on discounted cash flows or rental income estimates.

Trade and other receivables

The fair value of trade and other receivables is estimated at the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes or when such assets are acquired in a business combination.

Forward exchange contracts

The fair value of forward exchange contracts is based on their quoted price, if available. If a quoted price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a credit-adjusted risk-free interest rate (based on government bonds).

Other non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the resent value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. In respect of the unfavourable contacts assumed in a business combination, the fair value is based on estimates of future cash flows that exceed a contractual arrangement at market terms and the effect of discounting such excess cash outflows.

1.28 New standards and interpretations not yet adopted

A number of new standards and amendments are effective for annual periods beginning after 1 January 2021 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these consolidated financial statements.

The impact of their adoption is being assessed and is not expected to have a material impact on the Group's financial statements in the period of initial application unless otherwise indicated.

•	Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16: Interest Rate Benchmark Reform - Phase 2 (effective date 1 January 2021).
•	Amendments to IAS 37: Onerous Contracts-Cost of Fulfilling a Contract (effective date 1 January 2022).
•	Amendments to References to the Conceptual Framework in IFRS 3 (effective date 1 January 2022).
•	Amendments to IAS 16: Property, Plant and Equipment-Proceeds before Intended Use (effective date 1 January 2022).
•	Annual Improvements to IFRS Standards 2018-2020 (effective date 1 January 2022).
•	IFRS 17 Insurance Contracts (effective date 1 January 2023).
•	Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non- current (effective date 1 January 2023).

2 SEGMENTAL REPORTING

Revenue and EBITDA before exceptionals are key measures used by the chief operating decision makers of the Group to assess the performance of the Business segments.

During the years ended 31 December 2020 and 2019, the Group divided its operations into four businesses::

―	Polymers EMEA: This reportable segment includes the business activities in the region Europe, Middle East and Africa ("EMEA") for the product groups polystyrene ("PS"), ABS Standards and Specialties.
―	Polymers Americas: This reportable segment includes the business activities in the region North, Middle and South America for the product groups polystyrene ("PS"), ABS Standards and Specialties.
―	Polymers Asia: This reportable segment includes the business activities in the region Asia-Pacific for the product groups polystyrene ("PS"), ABS Standards and Specialties.
―	Styrene Monomer: This reportable segment includes the global business activities for the product group Styrene Monomer ("SM").

Segment results that are reported include items directly attributable to a segment as well as those that can be allocated on a basis that is considered reasonable. Unallocated items comprise mainly assets that are used across segments (primarily the Group's headquarters), head office expenses and tax assets and liabilities.

From the year end 31 December 2021 onwards, the Group will include segmental reporting based on four business segments: Styrolution business, INOVYN business, Aromatics business and Acetyls business.

Detailed information by segment is presented in the following tables. Inter-segment sales of the Styrene Monomer business contain internal cross-segment consumption of styrene monomer within the Group.

The revenue and EBITDA before exceptionals attributable to each business segment was as follows:

	External sales		Inter-segment sales
	2020	2019	2020	2019
	€m
Polymers EMEA	1,217.5	1,507.3	99.4	105.8
Polvmers Americas	940.2	1.138.7	28.6	36.3
Polymers Asia	1,277.9	1,413.7	27.6	39.3
Styrene Monomer	519.5	824.5	1,512.8	1,726.6
Corporate and eliminations	-	-	(1,668.4)	(1,908.0)
	3,955.1	4,884.2	-	-

	EBITDA before exceptionals
	2020	2019
	€m
Polymers EMEA	176.5	177.7
Polvmers Americas	146.2	191.9
Polymers Asia	228.5	105.7
Styrene Monomer	94.4	228.9
Corporate and eliminations	-	-
	645.6	704.2

Reconciliation of earnings before operating exceptional items, interest, taxation, impairment, depreciation and amortisation and after the share of profit/loss of associated undertakings and joint ventures using the equity accounting method ("EBITDA before exceptionals") to operating profit:

	2020	2019
	€m
EBITDA before exceptionals	645.6	704.2
Depreciation and amortisation	(249.2)	(247.9)
Exceptional items within operating profit (note 4)	(34.4)	(6.3)
Operating profit	362.0	450.0
Profit/(loss) on disposal of property, plant and equipment	0.3	(0.6)
Net finance costs (note 8)	(73.6)	(16.1)
Profit before tax	288.7	433.3

The split of revenue by product group was as follows:

	2020	2019
	€m
Global Styrene Monomer	519.4	824.5
Polystyrene	1,669.2	2,017.9
ABS Standard	692.6	743.2
Specialties	1,073.9	1,298.6
Total	3,955.1	4,884.2

Geographical analysis - revenues

Geographical information by location of customers	2020	2019
	€m
Europe	1,133.4	1,413.5
North Americas	1,092.5	1,455.3
Rest of World	1,729.2	2,015.4
Total	3,955.1	4,884.2

Geographical information by location of trading legal entity	2020	2019
	€m
Europe	1,245.1	1,548.3
North Americas	1,129.0	1,527.0
Rest of World	1,581.0	1,808.9
Total	3,955.1	4,884.2

In presenting information on the basis of geographic analysis of segments, segment revenue is based on the geographical location of customers and registered address of the Group's trading legal entities.

A geographic analysis of segment assets is not presented as the necessary information is not available and the directors are of the opinion that the cost to develop it would be excessive.

3 ACQUISITION OF BUSINESSES

Acquisitions in the current year - BP Petrochemicals

On 31 December 2020, pursuant to an acquisition agreement dated 29 June 2020 between INEOS Holdings AG and BP, certain subsidiaries of the Group agreed to purchase the Aromatics and Acetyls businesses from certain subsidiaries of BP (the "BP Acquisition" or the "BP Petrochemicals Business"), including shares in seven jointly-controlled joint ventures and the assets owned and used in relation to the Aromatics and Acetyls businesses. The total purchase price for the BP Petrochemicals business was $4,990.0 million (€4,178.3 equivalent), subject to a completion accounts settlement process. Cash of €88.3 million was acquired with the Aromatics and Acetyls businesses.

The Aromatics business produces a variety of aromatic chemical compounds, including paraxylene, purified terephthalic acid, benzene and metaxylene, which may be used in the production of a variety of products including polyester fibres, PET resins and polyester film and used in a variety of end markets such as textiles, upholstery, household items, food packaging, flexible films and industrial products.

The Acetyls business produces a variety of organic compounds, including acetic acid, acetic anhydride, methanol. Ethyl acetate and vinyl acetate, which are used in a variety of end market applications including building and construction materials, paints and coatings, automotive glass, polyester fibre, PET bottles, surface coatings, inks and solvents, washing powders, wood acetylation and herbicides and pesticides.

The acquisition is a good fit with INEOS' existing asset base, reintegrating the Hull, United Kingdom site and expanding the existing INEOS footprint at Geel, Belgium.

The consolidated financial statements include a preliminary allocation of purchase price, due to the proximity of the acquisition to the year end, and an initial view of the outcome of the completion accounts settlement process which is being negotiated with BP. Analyses of provisional fair values of the net assets acquired and the fair value of the consideration for the Group are shown below.

	2020
	Book value on acquisition	Accounting policy alignment	Fair value adjustments	Fair value on acquisition
	€m
Acquiree's net assets at acquisition date:
Property, plant and equipment	1,726.2	29.4	(41.9)	1,713.7
Intangible assets	3.4	-	558.7	562.1
Investments in equity accounted investees	789.1	-	390.3	1,179.4
Other non-current financial assets	2.0	-	-	2.0
Other investments	12.6	-	-	12.6
Other non-current receivables	1.6	-	-	1.6
Deferred tax assets	8.3	-	18.2	26.5
Inventories	322.2	(29.4)	(4.6)	288.2
Trade and other receivables	455.4	-	(33.6)	421.8
Cash and cash equivalents	88.3	-	-	88.3
Current and non-current interest-bearing loans and borrowings	(17.2)	-	-	(17.2)
Current and non-current lease liabilities	(85.4)	-	-	(85.4)
Current and non-current trade and other payables	(404.2)	-	(4.0)	(408.2)
Employee benefits	(2.4)	-	(0.1)	(2.5)
Current and non-current provisions	(2.9)	-	(1.5)	(4.4)
Deferred tax liabilities	(82.4)	-	17.2	(65.2)
Net identifiable assets and liabilities acquired	2,814.6	-	898.7	3,713.3
Non-controlling interest				(45.1)
Net assets				3,668.2
Consideration paid:
Cash consideration				4,178.3
Completion accounts settlement adjustment				(66.0)
Difference between consideration and net assets acquired				444.1

The difference between consideration and net assets acquired has been recognised within intangible assets in note 11. Goodwill is not expected to be deductible for income tax purposes.

The Group incurred acquisition related costs of €34.4 million relating to legal, accounting, human resources, industry specialists, environmental specialists and other consultancy costs. These costs have been treated as exceptional administrative expenses in the Group's consolidated income statement during the year ended 31 December 2020 (see note 4).

The fair value of acquired external trade receivables was €357.8 million. The trade receivables comprise gross contractual amounts of €361.5 million, of which €3.7 million was expected to be uncollectable at the date of acquisition.

Goodwill acquired reflects the expected synergies from combining operations and intangible assets that do not qualify for separate recognition.

If the acquisition had occurred on 1 January 2020, revenue of the Group for 2020 would have increased by €3,563.0 million less inter-company revenues of €14.0 million, and EBITDA before exceptionals of the Group for 2020 would have increased by €172.9 million respectively, after charging €116.7 million of BP corporate costs. These figures are unaudited.

Acquisitions in the current year - INOVYN

On 31 December 2020, the Group acquired 94.9% of the shares in INOVYN Limited, pursuant to a contribution agreement dated 24 July 2020 between INEOS Group Investments Limited, INEOS Industries Limited, INEOS Industries Holdings Limited, the Company and INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited), a subsidiary undertaking of the Company. The Company issued two ordinary shares in exchange for the INOVYN business. The difference between the consideration of €3,416.4 million and the nominal value of the share capital issued was recorded in share premium. Cash of €118.4 million was acquired with the INOVYN business.

The INOVYN business offers a portfolio of vinyls products of a number of industries, including general purpose suspension PVC, emulsion PVC and specialty suspension PVC. In addition, this business produces caustic soda, caustic potash, chlorine and chlorine by-products, brine and water, salt and hydrochloric acid. Various chlorine derivatives are also produced including chlorinated paraffins, chlorinated solvents, allylics and epichlorohydrin.

The purpose of the acquisition was to create a new financing group to bring together the established Styrolution and INOVYN businesses under the same financing umbrella as the newly acquired Acetyls and Aromatics businesses.

The Group and INOVYN Limited are controlled by the same ultimate parent undertaking, both before and after the acquisition date. The transaction has therefore been accounted for at book value since the acquisition involves two parties under common control. The difference between the consideration paid of €3,416.4 million and the book value of the assets and liabilities acquired has been recognised within the merger reserve.

	2020 Book value
	€m
Acquiree's net assets at acquisition date:
Property, plant and equipment	1,439.3
Intangible assets	40.1
Investments in equity accounted investees	15.0
Other investments	4.9
Other non-current receivables	38.8
Deferred tax assets	138.3
Employee benefits	33.3
Inventories	250.5
Trade and other receivables	517.3
Cash and cash equivalents	118.4
Current and non-current interest-bearing loans and borrowings	(1,097.0)
Current and non-current lease liabilities	(88.2)
Current and non-current trade and other payables	(789.3)
Employee benefits	(220.7)
Current and non-current provisions	(95.6)
Deferred tax liabilities	(83.3)
Tax liabilities for current tax	(30.5)
Other financial liabilities	(11.4)
Net identifiable assets and liabilities	179.9
Non-controlling interest	(9.2)
Net assets	170.7
Consideration paid:
Issue of share capital	3,416.4
Difference between consideration and net assets acquired recognised in merger reserve	3,245.7

The Group did not incur significant acquisition related costs on legal fees and due diligence costs.

Acquisitions in the current year - INOVYN

The fair value of acquired external trade receivables was €350.4 million. The trade receivables comprise gross contractual amounts due of €357.8 million, of which €7.4 million was expected to be uncollectable at the date of acquisition.

If the acquisition had occurred on 1 January 2020, revenue and EBITDA before exceptional of the Group for 2020 would have increased by €2,878.2 million and €602.6 million respectively.

Acquisitions in the prior year

Effective 1 February 2019, the Styrolution business acquired Total S.A.'s polystyrene business in China. The acquisition covers the wholly owned Chinese polystyrene business including two production sites in Ningbo and Foshan and two related sales offices in Guangzhou and Shanghai. The transaction included the purchase of 100% of the equity interests in Total Petrochemical (Foshan) Company Limited and Total Petrochemical (Ningbo) Company Limited. This acquisition is in line with the Styrolution business' Triple Shift growth strategy.

The final purchase price was agreed at €186.2 million. The purchase agreement provided for corrections for actual net working capital contributions compared to target. In 2019, the Group did not incur significant acquisition-related costs on legal fees and due diligence.

The fair value of the consideration exchanged in the transaction was allocated to the following identified assets acquired and liabilities assumed:

	2019
	€m
Acquiree's net assets at acquisition date:
Intangible assets	13.4
Property, plant and equipment	98.7
Inventories	27.7
Trade receivables and other assets	76.8
Cash and cash equivalents	52.6
Trade payables and other liabilities	(80.2)
Deferred tax liabilities	(10.0)
Net identifiable assets and liabilities	179.0
Consideration paid:
Cash	186.2
Goodwill arising	7.2

During 2019, the fair values assigned to the book values of the identifiable assets and liabilities were reviewed and the allocation of the purchase price was finalised in 2019 without changes to the allocation as set out above.

The goodwill is the remaining difference between net assets acquired, adjusted for the fair value of the consideration and includes certain economic benefits that cannot be identified as separate intangible assets. The goodwill is attributable to the value of customer relations, intellectual property and profitability of the acquired business. Goodwill has been allocated to the Asia polymers segment and is not expected to be deductible for tax purposes.

The fair value of the acquired trade receivables is €61.2 million. The trade receivables comprise gross contractual amounts due of €61.2 million, of which none was expected to be uncollectable at the date of acquisition.

For the eleven-month period since 1 February 2019, the acquired business contributed revenue of €381.1 million and EBITDA before exceptionals of €34.5 million. EBITDA before exceptionals was reduced because of inventory fair value uplift in the opening balances sheet. If the acquisition had occurred on 1 January 2019, management estimates that revenue would have been €436.1 million and EBITDA before exceptionals including fair value considerations would have been €38.3 million.

4 EXCEPTIONAL ITEMS

	2020	2019
	€m
Exceptional items included in administrative expenses:
Acquisition costs ⁽¹⁾	34.4	-
Site and line closures ⁽²⁾	-	6.3
	34.4	6.3

⁽¹⁾ In 2020, certain subsidiaries of the Group acquired the Aromatics and Acetyls businesses from certain subsidiaries of BP. Professional fees have been incurred associated with the acquisition relating to legal, accounting, human resources, industry specialists, environmental specialists and other consultancy costs.
⁽²⁾ In 2019, the Group recognised €6.3 million exceptional expenses for planned site and line closures in India.

There is no material effect on the tax charge due to exceptional items.

5 OPERATING PROFIT

Included in operating profit are the following:

	2020	2019
	€m
Research and development costs expensed as incurred	12.8	13.8
Amortisation of intangible assets	62.2	75.9
Expenses relating to short-term leases	1.4	3.0
Expenses relating to leases of low value assets	0.2	0.2
Expenses relating to variable lease payments not included in the measurement of the lease liability	0.8	0.3
Depreciation of property, plant and equipment - within cost of sales, distribution costs and administrative expenses
Owned assets	160.8	147.2
Right-of-use assets	26.2	24.8
	187.0	172.0

	2020	2019
	€m
Auditor's remuneration
Audit of these financial statements	0.5	0.5
Amounts receivable by auditors and their associates in respect of:
Audit of financial statements of subsidiaries pursuant to legislation	1.2	1.2
Services relating to corporate finance transactions	0.3	0.2
All other services	-	0.1
	2.0	2.0

The total in 2020 and 2019 includes fees paid to Deloitte LLP and its network firms for the audit of the consolidated financial statements and the audits of the financial statements of the Company and several of its worldwide subsidiaries. The auditors' remuneration disclosed above relates to the fees charged to the income statement in 2020 and relate to the Styrolution business. In addition, auditors' remuneration of €1.2 million were incurred by the newly acquired INOVYN business for the audit of financial statements and non-audit fees of €0.2 million were also incurred in 2020. Auditors' remuneration was €2.5 million for 2020 for the newly acquired Aromatics and Acetyls businesses.

The audit fee above includes the audit fee of €10,000 (2019: €10,000) for the parent Company.

6 STAFF NUMBERS AND COSTS

The monthly average number of persons including directors employed by the Group (including any divestitures up to the date of disposal and any acquisitions from the date of acquisition) during the year, analysed by category, was as follows:

	2020	2019
	Number
Research and development	108	99
Administration	993	985
Operations	2,441	2,486
	3,542	3,570

The aggregate payroll costs of these persons were as follows:

	2020	2019
	€m
Wages and salaries	299.2	255.5
Social security costs	20.9	21.1
Contributions to defined contribution plans	18.1	18.9
Items related to defined benefit plans:
Current service cost	7.8	7.3
Past service credit	(0.2)	-
	345.8	302.8

In terms of the acquired businesses, the INOVYN business had a monthly average of 4,049 persons during 2020; the Aromatics business had a monthly average of 1,275 persons during 2020; and the Acetyls business had a monthly average of 384 persons during 2020.

7 DIRECTORS' REMUNERATION

	2020	2019
	€m
Salaries and other short-term benefits	2.4	2.1
Post-employment benefits	0.1	0.1
Other long-term benefits	1.1	0.7
	3.6	2.9

Highest paid director	2020	2019
	€m
Aggregate emoluments	2.3	2.2

No directors have benefits accrued under defined benefit schemes (2019: nil). Three directors have benefits accruing under defined contribution schemes (2019: two).

8 FINANCE INCOME AND COSTS

	2020	2019
	€m
Finance income
Interest receivable from banks and short-term deposits	1.8	4.2
Net fair value gain on derivatives	0.4	4.5
Net exchange movements	-	4.8
Interest receivable from related parties	-	7.3
Other interest income	1.6	1.4
Total finance income	3.8	22.2
Finance costs
Interest payable on bank loans and overdrafts	22.6	21.0
Interest payable on senior secured notes	12.4	-
Interest payable on securitisation facility	2.4	2.9
Amortisation of debt issue costs	2.6	0.3
Interest payable on right-of-use assets	7.4	8.0
Net fair value loss on derivatives	-	0.1
Net exchange movements	27.3	-
Interest expense on pension schemes	1.2	1.4
Other interest expense	1.5	4.6
Total finance costs	77.4	38.3
Net finance costs	73.6	16.1

Net gains and losses on financial instruments are included in note 26.

9 TAX CHARGE

Recognised in the consolidated income statement

	2020	2019
	€m
Current tax expense
Current tax expense	106.1	139.0
Adjustments in respect of prior years	(4.7)	3.1
Current tax expense	101.4	142.1
Deferred tax expense
Origination and reversal of temporary differences	(20.8)	(34.2)
Adjustments in respect of prior years	1.1	2.4
Deferred tax credit	(19.7)	(31.8)
Total tax charge	81.7	110.3

Factors affecting the tax charge for the year	2020	2019
	€m
Profit before taxation	288.7	433.3
Tax using the UK corporation tax rate of 19.0% (2019: 19.0%)	54.9	82.3
Effect of tax rates in foreign jurisdictions	8.6	7.5
Tax exempt income	(1.1)	(2.9)
Non-deductible expenses	12.7	6.6
Change in tax rate	(0.3)	(2.0)
Applicable tax credits	-	(4.7)
Adjustments in respect of prior years	(3.6)	5.5
Other	10.5	18.0
Total tax charge	81.7	110.3

The deferred tax assets in the relevant United Kingdom companies at 31 December 2019 were measured using a tax rate of 17% since the Finance Bill 2016 included legislation to reduce the main rate of corporation tax from 19% to 17% from 1 April 2020 . However, deferred taxes in the United Kingdom are measured at 19% at 31 December 2020, following the decision to maintain the main corporation tax rate at 19% was substantively enacted on 17 March 2020. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. On 11 March 2021, the Finance Bill 2021 was announced in the United Kingdom, which increased the rate of corporation tax to 25% on profits over £250,000 from April 2023. This was substantively enacted on 24 May 2021. Deferred tax assets in the United Kingdom have not been revalued.

Taxation recognised in other comprehensive income

	2020
	Gross	Tax	Net
	€m
Remeasurement of postemployment benefit obligations net of taxes	(5.0)	1.6	(3.4)
Foreign exchange translation differences of subsidiaries	(120.2)	-	(120.2)
	(125.2)	1.6	(123.6)

	2019
	Gross	Tax	Net
	€m
Remeasurement of postemployment benefit obligations net of taxes	(13.1)	3.1	(10.0)
Foreign exchange translation differences of subsidiaries	17.3	-	17.3
	4.2	3.1	7.3

10 PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Plant and equipment, fixtures and fittings, and vehicles
	€m
Cost
At 1 January 2019	74.6	130.1	1,345.0
Impact of adopting IFRS 16 (see note 1)	-	-	-
Reclassification of finance leases	-	(8.3)	(2.9)
Acquisition of business	18.9	30.3	46.0
Additions	0.4	2.7	40.1
Lease modifications and reassessments	-	-	-
Reclassification	0.1	6.7	66.3
Disposals	-	(0.1)	(6.6)
Effects of movements in foreign exchange	0.4	0.2	13.1
At 31 December 2019	94.4	161.6	1,501.0
Acquisitions	182.2	243.0	2,523.6
Additions	-	1.6	75.2
Lease modifications and reassessments	-	-	-
Reclassification	-	4.1	99.3
Disposals	-	(0.2)	(84.0)
Effects of movements in foreign exchange	(9.2)	(6.7)	(87.3)
At 31 December 2020	267.4	403.4	4,027.8
Accumulated depreciation and impairment
At 1 January 2019	0.2	54.8	712.3
Reclassification of finance leases	-	(1.4)	(1.3)
Depreciation charge for the year	0.5	10.6	136.1
Reclassification	-	0.5	(0.5)
Disposals	-	(0.1)	(5.5)
Effects of movements in foreign exchange	-	0.3	4.2
At 31 December 2019	0.7	64.7	845.3
Acquisitions	0.6	36.6	271.7
Depreciation charge for the year	0.5	9.8	150.5
Reclassification	-	0.1	(0.1)
Disposals	-	(0.2)	(83.7)
Effects of movements in foreign exchange	-	(2.5)	(33.2)
At 31 December 2020	1.8	108.5	1,150.5
Net book value
At 31 December 2019	93.7	96.9	655.7
At 31 December 2020	265.6	294.9	2,877.3

	Assets under construction	Right-of-use assets	Total
	€m
Cost
At 1 January 2019	160.6	-	1,710.3
Impact of adopting IFRS 16 (see note 1)	-	135.7	135.7
Reclassification of finance leases	-	11.2	-
Acquisition of business	1.4	2.1	98.7
Additions	202.7	10.6	256.5
Lease modifications and reassessments	-	8.4	8.4
Reclassification	(72.7)	-	0.4
Disposals	(0.1)	-	(6.8)
Effects of movements in foreign exchange	1.8	1.9	17.4
At 31 December 2019	293.7	169.9	2,220.6
Acquisitions	345.2	212.5	3,506.5
Additions	289.2	20.3	386.3
Lease modifications and reassessments	-	6.6	6.6
Reclassification	(102.1)	-	1.3
Disposals	(0.2)	(4.0)	(88.4)
Effects of movements in foreign exchange	(32.9)	(11.0)	(147.1)
At 31 December 2020	792.9	394.3	5,885.8
Accumulated depreciation and impairment
At 1 January 2019	0.3	-	767.6
Reclassification of finance leases	-	2.7	-
Depreciation charge for the year	-	24.8	172.0
Reclassification	-	-	-
Disposals	-	-	(5.6)
Effects of movements in foreign exchange	-	-	4.5
At 31 December 2019	0.3	27.5	938.5
Acquisitions	-	44.6	353.5
Depreciation charge for the year	-	26.2	187.0
Reclassification	-	-	-
Disposals	-	(3.8)	(87.7)
Effects of movements in foreign exchange	-	(3.0)	(38.7)
At 31 December 2020	0.3	91.5	1,352.6
Net book value
At 31 December 2019	293.4	142.4	1,282.1
At 31 December 2020	792.6	302.8	4,533.2

Right-of-use assets

	Land	Buildings	Plant and equipment, fixtures and fittings, and vehicles	Total
	€m
At 1 January 2019	-	-	-	-
Impact of adopting IFRS 16 (see note 1)	1.8	59.6	74.3	135.7
Reclassification of finance leases	-	8.3	2.9	11.2
Acquisition of business	0.3	-	1.8	2.1
Additions	-	0.8	9.8	10.6
Lease modifications and remeasurements	-	6.7	1.7	8.4
Effect of movement in foreign exchange	-	0.2	1.7	1.9
At 31 December 2019	2.1	75.6	92.2	169.9
Acquisitions	8.4	8.8	195.3	212.5
Additions	-	3.3	17.0	20.3
Lease modifications and remeasurements	-	2.2	4.4	6.6
Disposals	(0.2)	(1.7)	(2.1)	(4.0)
Effects of movement in foreign exchange	(0.1)	(1.1)	(9.8)	(11.0)
At 31 December 2020	10.2	87.1	297.0	394.3
At 1 January 2019	-	-	-	-
Reclassification of finance leases	-	1.4	1.3	2.7
Depreciation charge for the year	0.3	6.3	18.2	24.8
At 31 December 2019	0.3	7.7	19.5	27.5
Acquisitions	0.6	0.8	43.2	44.6
Depreciation charge for the year	0.1	6.9	19.2	26.2
Disposals	(0.2)	(1.6)	(2.0)	(3.8)
Effects of movement in foreign exchange	-	(0.4)	(2.6)	3.0
At 31 December 2020	0.8	13.4	77.3	91.5
Net book value
At 31 December 2019	1.8	67.9	72.7	142.4
At 31 December 2020	9.4	73.7	219.7	302.8

Existing finance lease assets under IAS 17 were reclassified from owned assets to right-of-use assets as at 1 January 2019.

The Group mainly leases tanks, railcars, vessels, storage and transportation infrastructure, machinery, production buildings, administrative offices, motor vehicles and land, which are classified as right-of-use assets. Rental contracts are usually made for periods between 1 to 20 years, but may also include extension options. Extension options are included only if the lease term is reasonably certain to be extended and the decision of extending is mainly up to the Group (as a lessee).

See note 19 for lease obligations related to right-of-use assets.

11 INTANGIBLE ASSETS

	Goodwill	Customer relationships	Intellectual property rights	Environmental certificates
	€m
Cost
At 1 January 2019	707,4	773.5	271.5	7.1
Acquisitions	7.2	2.6	10.8	-
Additions	-	-	2.7	-
Disposals	-	(73.5)	-	-
Transfers	-	-	(1.1)	-
Effect of movements in exchange rates	7.1	4.8	1.3	0.2
At 31 December 2019	721.7	707.4	285.2	7.3
Acquisitions	444.1	351.9	211,6	29.4
Additions	-	-	0.2	0.6
Disposals	-	-	-	-
Effect of movements in exchange rates	(41.1)	(32.9)	(14.5)	(0.6)
At 31 December 2020	1,124.7	1,026.4	482.5	36.7
Accumulated amortisation and impairment
At 1 January 2019	-	248.5	97.4	-
Amortisation for the year	-	61.3	13.7	-
Transfers	-		0.4	-
Disposals	-	(73.5)		-
Effect of movements in exchange rates	-	2.4	0.5	-
At 31 December 2019	-	238.7	112.0	-
Acquisitions	-	-	1.0	-
Amortisation for the year	-	47.9	13.5	-
Disposals	-	-	-	-
Effect of movements in exchange rates	-	(8.4)	(2.5)	-
At 31 December 2020	-	278.2	124.0	-
Net book value
At 31 December 2019	721.7	468.7	173.2	7.3
At 31 December 2020	1,124.7	748.2	358.5	36.7

	Licence fees	Other	Total
	€m
Cost
At 1 January 2019	7.8	-	1,767.3
Acquisitions	-	-	20.6
Additions	0.1	-	2.8
Disposals	-	-	(73.5)
Transfers	0.7	-	(0.4)
Effect of movements in exchange rates	0.1	-	13.5
At 31 December 2019	8.7	-	1,730.3
Acquisitions	19.1	10.0	1.066.1
Additions	0.1	-	0,9
Disposals	(0.1)	-	(0.1)
Effect of movements in exchange rates	-	-	(89.1)
At 31 December 2020	27.8	10.0	2,708.1
Accumulated amortisation and impairment
At 1 January 2019	6.2	-	352.1
Amortisation for the year	0.9	-	75.9
Transfers	(0.4)	-	-
Disposals		-	(73.5)
Effect of movements in exchange rates	0.1	-	3.0
At 31 December 2019	6.8	-	357.5
Acquisitions	14.4	4.4	19,8
Amortisation for the year	0.8	-	62.2
Disposals	(0.1)	-	(0.1)
Effect of movements in exchange rates	(0.1)	-	(11.0)
At 31 December 2020	21.8	4.4	428.4
Net book value
At 31 December 2019	1.9	-	1,372.8
At 31 December 2020	6.0	5.6	2,279.7

Other intangible assets mainly relate to development costs, purchases for pipeline access rights and electricity grid capacity fees.

The existing customer relationship intangible assets relate the prior acquisitions and are split into ABS, Specialities and Polystyrene sectors. The remaining useful lives range between 4 and 18 years. The existing intellectual property rights intangible assets are for production technology and brands from prior acquisitions. The remaining useful lives range between 11 and 16 years.

Separable intangible assets for customer relationships and intellectual property rights have been recognised and represent value attributed to customer relationship arising from contractual rights and non-contractual relationship (€351.9 million) and to intellectual property mainly in relation to the right to use patents (€211.6 million). The remaining customer life for the acquired customer relationships is between 9 and 15 years and for the acquired intellectual property rights is between 7 and 16 years.

Amortisation

The amortisation charge is recognised in administrative expenses in the consolidated income statement.

Goodwill impairment testing

Goodwill has been allocated to cash generating units ("CGUs") or groups of cash generating units as follows:

	2020	2019
	€m
Polymers EMEA	252.2	252.2
Polymers Asia	96.1	103.3
Polymers Americas	170.0	186.7
Styrene Monomer	168.2	179.5
Aromatics	120.0	-
Acetyls	318.2	-
	1,124.7	721.7

For the Styrolution business's CGUs, the Group determined the recoverable amount based on value in use. The recoverable amount is calculated on a long-term business plan for the CGUs with a detailed planning period of three years and a consistent terminal growth rate between 0.5% and 2.5% for each unit for the period thereafter. The key assumption on which management based its cash flow projection is an increase of EBITDA before exceptionals over the detailed three year planning period, which is seen as the most important performance indicator and the basis for cash flow estimates used to determine the value in use. The assumption is based on detailed project plans to increase revenues and profitability. The Group expects to continue the EBITDA before exceptionals growth in the years after the detailed planning period. The terminal growth rate between 0.5% and 2.5% reflects the expected economic growth rates of countries in which the Group is operating. The main assumptions for the preparation of the three-year-business plan are the economic growth developments in the main customer regions and industries of the Styrolution business. These assumptions are based on external market data as well as internal assessments. The expected demand that is derived from the growth assumptions is compared with the supply balance of its product groups. The Styrolution business expects its Specialties and ABS Standards products groups to continue to grow, especially in its key focus industries. The Group also invests in these product groups and is increasing capacity to meet the growing demand. Polystyrene demand is expected to slightly decline in line with lower demand especially from the packaging industry.

New Styrene Monomer capacities came on stream in China in 2020. Consequently, gross margin levels are expected to be at low-cycle levels. For the main foreign currencies, a fixed exchange rate is expected. This means that profitability and cash flows are not materially affected by exchange rate changes.

For the acquired Aromatics and Acetyls businesses, the acquisition was negotiated in total and the consideration was considered in the context of the whole transaction. The Aromatics and Acetyls businesses will report separately to the Group, and decisions around resource allocation and monitoring of performance will consider the Acetyls and Aromatics businesses separately. Each business has its own independent management structure. Therefore, the carrying amount of goodwill resulting from the acquisition has therefore been allocated between the Acetyls and Aromatics segments. The recoverable amount of the CGUs is determined based on the higher of value in use and fair value less cost to sell. The recoverable amount is calculated on a long-term business plan for the CGUs with a detailed planning period of five years and a consistent terminal growth rate of 2% for each unit for the periods thereafter. The terminal growth rate of 2% represents the average expected growth rates in the countries in which the Group is operating. The main assumptions for the preparation of the five-year business plans are the production volumes and margins. The margin assumptions are based on external market data as well as internal assessments. The volume assumptions are based on the expectation of improvement of assets reliability programme and approved increase of production projects.

None of the goodwill is expected to be deductible for income tax purposes. The following discount rates were applied per cash generating unit to determine the cash flow projection before taxes:

	Polymers EMEA	Polymers Asia	Polymers Americas
Pre-tax discount rate	8.8%	14.0%	10.9%

	Styrene Monomer	Aromatics	Acetyls
Pre-tax discount rate	10.7%	8.2%	9.2%

12 INVESTMENTS

As at 31 December 2020, the Group has the following investments in subsidiaries:

Company	Country of incorporation	Principal activity	Class of shares held
INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) ^#	UK	Holding company	Ordinary
INEOS Quattro Finance 1 plc ^#	UK	Financing company	Ordinary
INEOS Quattro Finance 2 plc ^#	UK	Financing company	Ordinary
INEOS Styrolution Investment GmbH ^(d)	Germany	Holding company	Ordinary
INEOS Styrolution Holding GmbH ^(d)	Germany	Holding company	Ordinary
INEOS Styrolution America LLC	USA	Manufacture of styrene monomer and polymers, selling, distribution	Members interest
INEOS Styrolution Belgium NV	Belgium	Manufacture of styrene monomer and polymers	Ordinary
INEOS Styrolution Belgium Services bvba	Belgium	Sales office	Ordinary
INEOS Styrolution Beteiligungs GmbH ^(a)(d)	Germany	Non trading	Ordinary
INEOS Styrolution Canada Ltd	Canada	Manufacture of styrene monomer	Common
INEOS Styrolution (China) Investment Co. Ltd	China	Financing company	Registered capital
INEOS Styrolution do Brasil Polimeros Ltda.	Brazil	Sales office	Equity /Ordinary
INEOS Styrolution Hong Kong Company Limited	Hong Kong	Sales office	Ordinary
INEOS Styrolution Europe GmbH ^(d)	Germany	Distribution company	Ordinary
INEOS Styrolution France SAS	France	Manufacture of polymers	Ordinary
INEOS Styrolution France Services SAS	France	Sales office	Ordinary
INEOS Styrolution Group GmbH ^(d)	Germany	Holding company	Ordinary
INEOS Styrolution Iberia S.L.	Spain	Sales office	Ordinary
INEOS Styrolution India Limited ^(e)	India	Manufacture of polymers	Equity
INEOS Styrolution Switzerland SA	Switzerland	Distribution company	Ordinary
INEOS Styrolution Italia S.r.L.	Italy	Sales office	Ordinary
INEOS Styrolution Kimyasal Ürünler Ticaret Limited Sirketi	Turkey	Sales office	Ordinary
INEOS Styrolution Köln GmbH ^(d)	Germany	Manufacture of polymers	Ordinary
INEOS Styrolution Korea Ltd.	South Korea	Manufacture of polymers	Common
KR Copolymer Co. Ltd.	South Korea	Manufacture of K-Resin	Ordinary
INEOS Styrolution Ludwigshafen GmbH ^(d)	Germany	Manufacture of polymers	Ordinary
INEOS Styrolution Mexicana, S.A. de C.V.	Mexico	Manufacture of polymers	Ordinary
INEOS Styrolution Netherlands B. V	Netherlands	Sales office	Ordinary
INEOS Styrolution OOO.	Russia	Sales office	Charter capital
INEOS Styrolution Poland Sp. z o.o	Poland	Sales office	Ordinary
INEOS Styrolution Polymers (Foshan) Co. Ltd.	China	Manufacture of polymers	Registered capital
INEOS Styrolution Polymers (Ningbo) Co. Ltd.	China	Manufacture of polymers	Registered capital
INEOS Styrolution Advanced Materials (Ningbo) Pte Ltd.	China	Manufacture of ABS (under construction)	Registered capital
INEOS Styrolution Polymers (Shanghai) Co. Ltd.	China	Sales office	Registered capital
INEOS Styrolution Schwarzheide GmbH ^(d)	Germany	Manufacture of polymers	Ordinary
INEOS Styrolution Servicios, S.A. de C.V.	Mexico	Service company	Ordinary
INEOS Styrolution APAC Pte Ltd.	Singapore	Sales office	Ordinary
INEOS Styrolution UK Limited	UK	Sales office	Ordinary
INEOS Styrolution US Holding LLC.	USA	Holding company	Member interest
INEOS Styrolution Verwaltungsgesellschaft mbH.	Germany	Financing company	Ordinary
INEOS Styrolution (Thailand) Co., Ltd.	Thailand	Manufacture of polymers	Ordinary
INEOS Styrolution Vietnam Co., Ltd.	Vietnam	Sales office	Charter Capital
Deutsche Bank Mexico F/l787 Styrolution.	Mexico	Securitisation vehicle	n/a
INEOS Styrolution Receivables Finance Designated Activity Company.	Ireland	Securitisation vehicle	n/a
INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited)	UK	Holding company	Ordinary
INEOS Acetyls UK Limited (formerly INEOS 256 GB Limited)	UK	Production of acetic acid and other acetyls products	Ordinary
INEOS Acetyls International Limited (formerly INEOS 287 Limited)	UK	Holding company	Ordinary
INEOS US Petrochem LLC	USA	Holding company	Ordinary
INEOS US Petrochem II LLC ^(b)	USA	Non-trading company	Ordinary
INEOS US Chemicals Company (formerly BP Amoco Chemical Company)	USA	Production of purified terephthalic acid and paraxylene	Common
INEOS 179 Limited	UK	Holding company	Ordinary
INEOS Aromatics and Acetyls Trading (Shanghai) Company Limited	China	Sales office	Registered capital
INEOS Acetyls Japan KK	Japan	Sales office	Ordinary
INEOS Acetyls Investments Limited (formerly BP Chemicals Investments Limited)	UK	Holding company	Ordinary
INEOS Aromatics Asia Limited (formerly BP Asia Limited)	Hong Kong	Sales office	Ordinary
INEOS Acetyls (Malaysia) Sdn Bhd. (formerly BP Asia Pacific (Malaysia Sdn Bhd.)	Malaysia	Production of acetic acid and other acetyls products	Ordinary
INEOS Acetyls (Korea) Limited (formerly BP Chemicals (Korea) Limited)	UK	Sales office	Ordinary
INEOS Acetyls Americas Limited (formerly Exploration Service Company Limited)	UK	Holding company	Ordinary
INEOS Aromatics Holdings Limited (formerly BP Aromatics Holdings Limited)	UK	Holding company	Ordinary
INEOS Aromatics Limited (formerly BP Aromatics Limited)	UK	Production of purified terephthalic acid and paraxylene	Ordinary
INEOS World-Wide Technical Services Limited (formerly BP World-Wide Technical Services Limited)	UK	Licensing services	Ordinary
INEOS Aromatics Holding Company (formerly BP Amoco Chemical Holdings Company)	USA	Holding company	Common
BP Zhuhai Chemical Company Ltd ^(f)	China	Production of purified terephthalic acid and paraxylene	Member interest
INEOS Aromatics Indonesia Holdings Ltd (formerly BP .Amoco Chemical Indonesia Ltd)	USA	Holding company	Common
INEOS Aromatics Belgium NV (formerly BP Chembel NV)	Belgium	Production of purified terephthalic acid and paraxylene	Ordinary
INEOS Aromatics Belgium Holdings LLC (formerly BP .America Chembel Holding LLC)	USA	Holding company	Common
PT INEOS Aromatics Indonesia (formerly PT BP Petrochemicals)	Indonesia	Production of purified terephthalic acid and paraxylene	Ordinary
INOVYN Limited ^(g)	UK	Holding company	Ordinary
INOVYN Holdings Limited ^(c)	UK	Holding company	Ordinary
INOVYN Finance Limited (formerly INOVYN Finance plc)	UK	Holding company	Ordinary
INOVYN Group Treasury Limited	UK	Holding company	Ordinary
INOVYN Europe Limited	UK	Holding company	Ordinary
INOVYN Norge AS	Norway	Manufacture of chemicals and PVC	Ordinary
INOVYN Sverige AB	Sweden	Manufacture of chemicals and PVC	Ordinary
INEOS Chlor Vinyls Holdings BV	Netherlands	Holding company	Ordinary
INOVYN Newton Aycliffe Limited	UK	Non-trading	Ordinary
INEOS Newton Aycliffe Trustees Limited	UK	Pension trustee	Ordinary
INOVYN Services Limited	UK	Service company	Ordinary
INOVYN Enterprises Limited	UK	Extraction and supply of brine and water	Ordinary
INOVYN Chlor Vinyls Holdings Limited	UK	Holding company	Ordinary
INOVYN Newco 2 Limited	UK	Holding company	Ordinary
INOVYN Chlor Vinyls Limited	UK	Manufacture of chemicals and PVC	Ordinary
INEOS Enterprises Group Limited	UK	Manufacture of salt and sulphur chemicals	Ordinary
Keuper Gas Storage Limited	UK	Gas storage	Ordinary
INEOS Chlor Atlantik GmbH	Germany	Non-trading	Ordinary
INOVYN Americas Inc	USA	Purchase and resale of chemicals	Ordinary
INOVYN Sales International Limited ^(c)	UK	Non-trading	Ordinary
INEOS Chlor Trustees Limited	UK	Pension trustee	Ordinary
INEOS Vinyls UK Ltd ^(c)	UK	Non-trading	Ordinary
INEOS Vinyls GmbH & Co KG	Germany	Holding company	Ordinary
INOVYN Schkopau GmbH	Germany	Non trading	Ordinary
INOVYN Sales GmbH	Germany	Non trading	Ordinary
EVC Pension Trustees Limited	UK	Pension trustee	Ordinary
INOVYN Energy Limited	UK	Holding company	Ordinary
Kerling Newco 1 Limited	UK	Holding company	Ordinary
Kerling Newco 2 Limited	UK	Holding company	Ordinary
INOVYN Deutschland GmbH	Germany	Manufacture of chemicals and PVC	Ordinary
INOVYN Espana S.L.	Spain	Manufacture of chemicals and PVC	Ordinary
INOVYN Osterreich GmbH	Austria	Sales office	Ordinary
INOVYN Belgium SA	Belgium	Manufacture of chemicals Operation of ethylene	Ordinary
INOVYN Olefines France SAS	France	cracker	Ordinary
INOVYN Portugal Lda	Portugal	Sales office	Ordinary
INOVYN Trade Services SA	Belgium	Purchase and resale of chemicals	Ordinary
INOVYN Manufacturing Belgium SA	Belgium	Manufacture of chemicals and PVC	Ordinary
-INOVYN France SAS	France	Manufacture of chlorine products	Ordinary
INOVYN Italia S.p.A	Italy	Commercial services	Ordinary
INOVYN Produzione Italia S.p.A.	Italy	Manufacture of chemicals	Ordinary
INOVYN Quimica Espana S.L.	Spain	Waste treatment	Ordinary
Vinyloop Ferrara S.p.A ^(c)	Italy	PVC Recycling	Ordinary
TTE Training Limited	UK	Training company	Limited by Guarantee
TTE Apprenticeship Training Agency Limited	UK	Apprenticeship company	Limited by Guarantee
INEOS Norway Finance Ireland Limited	Ireland	Securitisation vehicle	n/a

Company	Ownership 2020	Ownership 2019	Registered office reference
INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) ^#	100%	100%	(1)
INEOS Quattro Finance 1 plc ^#	100%	-	(1)
INEOS Quattro Finance 2 plc ^#	100%	-	(1)
INEOS Styrolution Investment GmbH ^(d)	100%	100%	(2)
INEOS Styrolution Holding GmbH ^(d)	100%	100%	(2)
INEOS Styrolution America LLC	100%	100%	(3)
INEOS Styrolution Belgium NV	100%	100%	(4)
INEOS Styrolution Belgium Services bvba	100%	100%	(5)
INEOS Styrolution Beteiligungs GmbH ^(a)(d)	-	100%	(2)
INEOS Styrolution Canada Ltd	100%	100%	(6)
INEOS Styrolution (China) Investment Co. Ltd	100%	100%	(7)
INEOS Styrolution do Brasil Polimeros Ltda.	100%	100%	(8)
INEOS Styrolution Hong Kong Company Limited	100%	100%	(33)
INEOS Styrolution Europe GmbH ^(d)	100%	100%	(2)
INEOS Styrolution France SAS	100%	100%	(10)
INEOS Styrolution France Services SAS	100%	100%	(11)
INEOS Styrolution Group GmbH ^(d)	100%	100%	(2)
INEOS Styrolution Iberia S.L.	100%	100%	(12)
INEOS Styrolution India Limited ^(e)	75%	75%	(13)
INEOS Styrolution Switzerland SA	100%	100%	(14)
INEOS Styrolution Italia S.r.L.	100%	100%	(15)
INEOS Styrolution Kimyasal Ürünler Ticaret Limited Sirketi	100%	100%	(16)
INEOS Styrolution Köln GmbH ^(d)	100%	100%	(17)
INEOS Styrolution Korea Ltd.	100%	100%	(18)
KR Copolymer Co. Ltd.	100%	100%	(19)
INEOS Styrolution Ludwigshafen GmbH ^(d)	100%	100%	(2)
INEOS Styrolution Mexicana, S.A. de C.V.	100%	100%	(20)
INEOS Styrolution Netherlands B. V	100%	100%	(21)
INEOS Styrolution OOO.	100%	100%	(22)
INEOS Styrolution Poland Sp. z o.o	100%	100%	(23)
INEOS Styrolution Polymers (Foshan) Co. Ltd.	100%	100%	(24)
INEOS Styrolution Polymers (Ningbo) Co. Ltd.	100%	100%	(25)
INEOS Styrolution Advanced Materials (Ningbo) Pte Ltd.	100%	100%	(26)
INEOS Styrolution Polymers (Shanghai) Co. Ltd.	100%	100%	(27)
INEOS Styrolution Schwarzheide GmbH ^(d)	100%	100%	(30)
INEOS Styrolution Servicios, S.A. de C.V.	100%	100%	(20)
INEOS Styrolution APAC Pte Ltd.	100%	100%	(31)
INEOS Styrolution UK Limited	100%	100%	(1)
INEOS Styrolution US Holding LLC.	100%	100%	(3)
INEOS Styrolution Verwaltungsgesellschaft mbH.	100%	100%	(2)
INEOS Styrolution (Thailand) Co., Ltd.	100%	100%	(34)
INEOS Styrolution Vietnam Co., Ltd.	100%	100%	(35)
Deutsche Bank Mexico F/l787 Styrolution.	n/a	n/a	(37)
INEOS Styrolution Receivables Finance Designated Activity Company.	n/a	n/a	(51)
INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited)	100%	100%	(1)
INEOS Acetyls UK Limited (formerly INEOS 256 GB Limited)	100%	100%	(1)
INEOS Acetyls International Limited (formerly INEOS 287 Limited)	100%	100%	(1)
INEOS US Petrochem LLC	100%	-	(3)
INEOS US Petrochem II LLC ^(b)	100%	-	n/a
INEOS US Chemicals Company (formerly BP Amoco Chemical Company)	100%	-	(3)
INEOS 179 Limited	100%	-	(1)
INEOS Aromatics and Acetyls Trading (Shanghai) Company Limited	100%	-	(29)
INEOS Acetyls Japan KK	100%	-	(36)
INEOS Acetyls Investments Limited (formerly BP Chemicals Investments Limited)	100%	-	(1)
INEOS Aromatics Asia Limited (formerly BP Asia Limited)	100%	-	(33)
INEOS Acetyls (Malaysia) Sdn Bhd. (formerly BP Asia Pacific (Malaysia Sdn Bhd.)	100%	-	(68)
INEOS Acetyls (Korea) Limited (formerly BP Chemicals (Korea) Limited)	100%	-	(1)
INEOS Acetyls Americas Limited (formerly Exploration Service Company Limited)	100%	-	(1)
INEOS Aromatics Holdings Limited (formerly BP Aromatics Holdings Limited)	100%	-	(9)
INEOS Aromatics Limited (formerly BP Aromatics Limited)	100%	-	(1)
INEOS World-Wide Technical Services Limited (formerly BP World-Wide Technical Services Limited)	100%	-	(1)
INEOS Aromatics Holding Company (formerly BP Amoco Chemical Holdings Company)	100%	-	(3)
BP Zhuhai Chemical Company Ltd ^(f)	91.9%	-	(66)
INEOS Aromatics Indonesia Holdings Ltd (formerly BP .Amoco Chemical Indonesia Ltd)	100%	-	(64)
INEOS Aromatics Belgium NV (formerly BP Chembel NV)	100%	-	(71)
INEOS Aromatics Belgium Holdings LLC (formerly BP .America Chembel Holding LLC)	100%	-	(3)
PT INEOS Aromatics Indonesia (formerly PT BP Petrochemicals)	100%	-	(72)
INOVYN Limited ^(g)	94.9%	-	(38)
INOVYN Holdings Limited ^(c)	100%	-	(38)
INOVYN Finance Limited (formerly INOVYN Finance plc)	100%	-	(38)
INOVYN Group Treasury Limited	100%	-	(38)
INOVYN Europe Limited	100%	-	(38)
INOVYN Norge AS	100%	-	(39)
INOVYN Sverige AB	100%	-	(40)
INEOS Chlor Vinyls Holdings BV	100%	-	(41)
INOVYN Newton Aycliffe Limited	100%	-	(38)
INEOS Newton Aycliffe Trustees Limited	100%	-	(38)
INOVYN Services Limited	100%	-	(38)
INOVYN Enterprises Limited	100%	-	(38)
INOVYN Chlor Vinyls Holdings Limited	100%	-	(38)
INOVYN Newco 2 Limited	100%	-	(38)
INOVYN Chlor Vinyls Limited	100%	-	(38)
INEOS Enterprises Group Limited	100%	-	(38)
Keuper Gas Storage Limited	100%	-	(38)
INEOS Chlor Atlantik GmbH	100%	-	(42)
INOVYN Americas Inc	100%	-	(43)
INOVYN Sales International Limited ^(c)	100%	-	(38)
INEOS Chlor Trustees Limited	100%	-	(38)
INEOS Vinyls UK Ltd ^(c)	100%	-	(38)
INEOS Vinyls GmbH & Co KG	100%	-	(42)
INOVYN Schkopau GmbH	100%	-	(42)
INOVYN Sales GmbH	100%	-	(42)
EVC Pension Trustees Limited	100%	-	(38)
INOVYN Energy Limited	100%	-	(38)
Kerling Newco 1 Limited	100%	-	(38)
Kerling Newco 2 Limited	100%	-	(38)
INOVYN Deutschland GmbH	100%	-	(42)
INOVYN Espana S.L.	100%	-	(44)
INOVYN Osterreich GmbH	100%	-	(45)
INOVYN Belgium SA	100%	-	(46)
INOVYN Olefines France SAS	100%	-	(47)
INOVYN Portugal Lda	100%	-	(48)
INOVYN Trade Services SA	100%	-	(46)
INOVYN Manufacturing Belgium SA	100%	-	(46)
-INOVYN France SAS	100%	-	(47)
INOVYN Italia S.p.A	100%	-	(49)
INOVYN Produzione Italia S.p.A.	100%	-	(50)
INOVYN Quimica Espana S.L.	100%	-	(44)
Vinyloop Ferrara S.p.A ^(c)	100%	-	(49)
TTE Training Limited	100%	-	(52)
TTE Apprenticeship Training Agency Limited	100%	-	(52)
INEOS Norway Finance Ireland Limited	n/a	n/a	(51)

^# Shares held directly by INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited). All other subsidiaries listed are held indirectly.
^(a) On 1 January 2020 INEOS Styrolution Beteiligungs GmbH was merged into INEOS Styrolution Holding GmbH.
^(b) INEOS US Petrochem II LLC was dissolved on 27 January 2021.
^(c) In the process of being liquidated.
^(d) Pursuant to HGB, section 264 (3), these subsidiaries are exempt from applying certain legal requirements to their statutory stand-alone financial statements for the year ended 31 December 2020.
^(e) Portion of ownership interests held by non-controlling interests is 25%. Profit attributable to the non-controlling interest is €3.5 million (2019: loss of €1.4 million). Accumulated non-controlling interests are €17.0 million (2019: €16.1 million).
^(f) Portion of ownership interests held by non-controlling interests is 8.1%. The subsidiary was acquired on 31 December 2020 and so there are no profits attributable to the non-controlling interest in 2020 (2019: €nil). Accumulated non-controlling interests are €45.1 million (2019: €nil).
^(g) Portion of ownership interests held by non-controlling interests is 5.1%. The subsidiary was acquired on 31 December 2020 and so there are no profits attributable to the non-controlling interest in 2020 (2019: €nil). Accumulated non-controlling interests are €9.2 million (2019: €nil).

Details of the Group's other investments are as follows:

Investment	Country of registration or incorporation	Principal activity	Class/ percentage of shares held	Registered office reference
Associated undertakings:
INEOS Runcorn (TPS) Holdings Limited	UK	Thermal Power Station operator	Ordinary/60% ⁽¹⁾	(38)
Joint ventures:
INEOS PCG Acetyls Sdn. Bhd. (formerly BP Petronas Acetyls Sdn. Bhd ")	Malaysia	Production of acetic acid and other acetyls products	Ordinary/ 70%	(67)
Yangtze River Acetyls Co. Ltd	China	Production of acetic acid and other acetyls products	Member interest/ 51%	(69)
LOTTE INEOS Chemical Co. Ltd (formerly LOTTE BP Chemical Co. Ltd)	Korea	Production of acetic acid and other acetyls products	Ordinary/ 50.94%	(70)
Formosa INEOS Chemicals Corp (formerly Formosa BP Chemicals Corp)	Taiwan	Production of acetic acid and other acetyls products	Common/50%	(73)
Tricoya UK Limited (formerly Tricoya Ventures UK Limited)	UK	Production of acetic acid and other acetyls products	Ordinary/35.6%	(63)
BP YPC Acetyls Company (Nanjing) Ltd	China	Production of acetic acid and other acetyls products	Member interest/ 50%	(74)
Atlas Methanol Company Unlimited	Trinidad	Methanol production	Ordinary/36.9%	(75)
China American Petrochemical Company Ltd	Taiwan	Production of acetic acid and other acetyls products	Ordinary/61.36%	(65)
Joint arrangements:
Runcorn MCP Limited	UK	Cell room operator	Ordinary/ 50%	(38)
GIE Cancel-Bresse	France	Brine solution mining services	Ordinary/ 50%	(59)
Other investments:
Tricoya Technologies Limited	UK	Production of acetic acid and other acetyls products	Preferred/ 9%	(63)
Akra Polyester SA de CV	Mexico	Manufacture of polyester filaments and polymers	Ordinary/6.65%	(28)
Tereftaltos Mexicanos SA de CV	Mexico	Production of purified terephthalic acid	Ordinary B/8.55%	(32)
IndustriEI AS	Norway	Energy consultancy	Ordinary/12.5%	(53)
Sociedad Española de Materiales Plasticos SEMAP S.A	Spain	Plastic waste management	Ordinary/8%	(54)
Societe Intercommunale D' Amenagement et d'Equipement Economique	Belgium	Economic development of province of Namur	Ordinary/0.17%	(55)
BKV GmbH	Germany	Plastic recycling association	Ordinary/2.0%	(56)
VSR GmbH	Germany	Fire protection of Rheinberg site	Ordinary/30.0%	(57)
API PVC - u. Umweltberatung GesmbH	Austria	PVC technology solutions	Ordinary/73.2%	(58)
Hållbar Kemi i Stenungsund	Sweden	Sustainable production association	Ordinary/20.0%	(60)
Energy For Growth Societa' Consortile A Responsabilita' Limitata	Italy	Energy consortium	Ordinary/7.3%	(61)
Power to Methanol Antwerp B.V.	Belgium	Sustainable methanol production consortium	Ordinary/14.3%	(62)

⁽¹⁾ The Group owns shares entitling it to 60% of the voting rights but only 25% of the economic benefits.

None of the above other investments are held directly by INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited).

Investments in associated undertakings, joint ventures and other investments

	Joint ventures	Associated undertakings	Other investments	Total
	€m
At 31 December 2019	-	-	-	-
Acquisitions	1,179.4	15.0	17.5	1,211.9
Effect of movements in exchange rates	(31.0)	(0.1)	(0.2)	(31.3)
At 31 December 2020	1,148.4	14.9	17.3	1,180.6

All joint ventures and associated undertakings were acquired via business combination on 31 December 2020. Joint ventures and other investments acquired with the Acetyls and Aromatics businesses were fair valued at this date.

Summary aggregated financial information on joint ventures:

Summarised balance sheet

	2020	2019
	€m
Current assets	603.1	-
Non-current assets	1,075.9	-
Current liabilities	(329.0)	-
Non-current liabilities	(376.0)	-

The registered office addresses of the investments disclosed in this note are:

Reference	Registered office address
(1)	Hawkslease, Chapel Lane, Lyndhurst, Hampshire, SO43 7FG, United Kingdom
(2)	Mainzer Landstrasse 50, 60325 Frankfurt, Germany
(3)	1209 Orange Street, Wilmington DE 19801, Delaware, USA
(4)	Haven 725, Scheldelaan 600, 2040 Antwerp, Belgium
(5)	2070 Zwijndrecht, Nieuwe Weg 1, 1053 Haven, Mechelen, Belgium
(6)	872 Tashmoo Avenue, Sarnia ON N7T 8A3 Ontario, Canada
(7)	Room 2502, 567 Langao Road, Putuo District, Shanghai, China
(8)	Rua Quintana 887 3° andar, conjuntos 33 e 34, Ciudade Moncoes, São Paulo 04569-011
(9)	Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
(10)	Rue Albert Duplat, F-62410 Wingles. France
(11)	95 rue la Boétie, F-75008 Paris, France
(12)	Ronda General Mitre 28-30, 08017 Barcelona, Spain
(13)	5th Floor, OHM House - II, OHM Business Park, Ellora Park (East), Subhanpura, 390023 Vadodara Gujarat, India
(14)	Avenue des Uttins 3, CH-1180 Rolle, Switzerland
(15)	Via Caldera 21, 20153 Milano Cesano Mademo, Italy
(16)	Buyukdere Cad. Meydan sok., Spring Giz Plaza K. 13 N.11, Maslak Sariyer, Istanbul, Turkey
(17)	Alte Strasse 201, 50769 Cologne, Germany
(18)	Sanggae-ro 143 (Sanggae-dong), Nam-gu, Ulsan, South Korea
(19)	14 ^th Floor, 92 Tongil-ro (Soonhwa-dong) Jung-gu, Seoul, 04517, Korea
(20)	Avenida Insurgentes Sur No. 859, Piso 11, Oficina 1102, Colonia Nápoles, 03810, Mexico City, Mexico
(21)	Strawinskylaan 411, NL-1077 XX Amsterdam, The Netherlands
(22)	Bldg. 3, 18 Pyatnitskaya St., 115035 Moscow, Russian Federation
(23)	ul. Wołoska 9, 02-583 Warszawa, Poland
(24)	No. 61, Jinben Industry Avenue, Xinan Sub-district, Sanshui District, Foshan, Guangdong Province, China
(25)	No.2388, Minghai North Road, Ningbo Petrochemical Economy & Technology Development Zone, Ningbo, Zhejiang, China
(26)	Building No. 3 Unit 1-10, 266 Beihai Road, Ningbo Petrochemical Zone, Zhenhai District, Ningbo, China
(27)	Central Towers, Suite 2501&2503, 567 Langao Road, 200333 Shanghai, China
(28)	Avenida Adolfo Ruiz Cortines y Priv. Roble S/N, Col. San Pedro Lozano, Monterrey, Nuevo León, 64299, Mexico
(29)	Room 368, Part 302, No. 211 Fute North Road, China (Shanghai) Pilot Free Trade Zone, Shanghai, China
(30)	Schipkauer Strasse 1, 01987 Schwarzheide, Germany
(31)	111 Somerset Road, #14-16 to 21 TripleOne Somerset, Singapore 238164, Singapore
(32)	Av. Ricardo Margáin Zozaya 444, Torre Equus IZA Sur, Colonia Valle del Campestre, San Pedro Garza García, Nuevo León, 66265, Mexico
(33)	Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong
(34)	No. 4/2,1-8 Road, T. Map Ta Phut, A Muang, 2115 Rayong, Thailand
(35)	11 ^th Floor, Lotte Center Hanoi, 54 Lieu Giai Street Hanoi, Vietnam
(36)	1-25-1 Nishi-Shinjuku, Shinjuku-ku, (35F, Shinjyuku Center Building), Tokyo 1630635, Japan
(37)	Torre Virreyes, Pedregal 24, Piso 20, Colonia Molino del Rey, 11040, Mexico City, Mexico
(38)	Bankes Lane Office, Bankes Lane, Runcorn, Cheshire, WA7 4JE, United Kingdom
(39)	Rafnes Industriomrade, 3966 Stathelle, Norway
(40)	444-83 Stenungsund, Sweden
(41)	Luna Arena, Herikerbergweg 238, Amsterdam, The Netherlands, 1101 CM
(42)	Ludwigstrasse 12, 47495 Rheinberg, Germany
(43)	2036 Foulk Rd, Suite 204, Wilmington, Delaware 19801, USA
(44)	Calle Marie Curie 1-3-5, 08760 Martorell, Barcelona, Spain
(45)	Schottengasse 1, 4. Stock, 1010 Wien, Austria
(46)	Avenue des Olympiades 20, 1140 Brussels, Belgium
(47)	2 Avenue de la République, 39500 Tavaux, France
(48)	Rua do Centro Cultural n° 5 - R/C, sala 8, 1700-106 Lisboa, Portugal
(49)	Via Marconi 73, 44122 Ferrara (FE), Italy
(50)	Rosignano Marittimo (LI), Via Piave 6 CAP 57016, Italy
(51)	Kilmore House, Park Lane, Spencer Dock, Dublin 1, Ireland
(52)	New Horizons House, New Bridge Road, Ellesmere Port, Cheshire, CH65 4LT
(53)	Postboks 1367 - Vika, 0114 Oslo, Norway
(54)	Calle Principe de Vergara 204 - Primero C - 28002, Madrid, Spain
(55)	Rue de la Religion, 10, 1400 Nivelles, Belgium
(56)	Mainzer Landstraße 55, 60329 Frankfurt am Main, Germany
(57)	Xantener Str. 237, 47495 Rheinberg, Germany
(58)	Paniglgasse 24/I/19°, A-1040 Wien, Austria
(59)	12 Rue Raoul Nordling CS 7001, 92270 Bois Colombes, France
(60)	Fregatten 3, 444-30 Stenungsund, Sweden
(61)	Via Giovanni Da Procida, 11, 20149, Milan, Italy
(62)	Scheldelaan 480, 2040 Antwerpen, Belgium
(63)	Brettenham House, 19 Lancaster Place, London, England, WC2E 7EN
(64)	2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
(65)	6 ^th Floor, No. 413 Section 2 Ti-Ding Blvd., Neihu, Taipei, 11493,Taiwan
(66)	Da Ping Harbour, Lin Gang Industrial Zone, Zhuhai City, Guangdong Province, China
(67)	12 ^th Floor, Menara Symphony No. 5, Jalan Prof Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia
(68)	Level 9, Tower 5, Avenue 7, The Horizon Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia
(69)	97 Weijiang Road (in the Petrochemical Park), Changshou District, Chongqing, China
(70)	6 3-15 Sanggae-ro, Cheongnyang-myeon, Uljugun, Ulsan, 44987, Korea
(71)	Amocolaan 2 2440 Geel, Belgium
(72)	20 ^th Floor Summitmas II Jl., Jend. Sudirman Kav. 61 - 62, Jakarta, Selatan, Indonesia
(73)	No. 1-1 Formosa Industrial Comples, Mailiao, Yunlin Hsien, Taiwan
(74)	9# Huo Ju Road, Liu He District, Nanjing, Jiangsu Province, China
(75)	Maracaibo Drive, Point Lisas Industrial Estate, Point Lisas, Trinidad and Tobago

13 OTHER FINANCIAL ASSETS

	2020	2019
	€m
Non-current
Other receivables	2.0	-
Current
Derivative commodity contracts designated as fair value through the profit or loss (note 26)	-	0.3

14 DEFERRED TAX ASSETS AND LIABILITIES

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	2020	2019	2020	2019
	Assets		Liabilities
	€m
Property, plant and equipment	81.1	25.2	(216.1)	(142.5)
Investments	-	-	(38.0)	(41.7)
Intangible assets	2.4	3.2	(177.1)	(178.7)
Employee benefits	71.5	28.6	(4.8)	-
Tax value of loss carry-forwards	72.1	0.4	-	-
Other	56.3	54.7	(59.8)	(10.6)
Set off of tax	(76.0)	(65.0)	76.0	65.0
Net tax assets/(liabilities)	207.4	47.1	(419.8)	(308.5)

Movement in deferred tax during the year

	2020
	1 January	Recognised in income statement	Recognised in equity - translation exchange
	€m
Property, plant and equipment	(117.3)	2.7	5.9
Investments	(41.7)	-	3.7
Intangible assets	(175.5)	14.7	5.8
Employee benefits	28.6	2.5	(0.3)
Tax value of loss carry-forwards	0.4	7.2	(0.4)
Other	44.1	(7.4)	(3.3)
	(261.4)	19.7	11.4

	2020
	Recognised in equity - actuarial	Acquisitions	31 December
	€m
Property, plant and equipment	-	(26.3)	(135.0)
Investments	-	-	(38.0)
Intangible assets	-	(19.7)	(174.7)
Employee benefits	1.6	34.3	66.7
Tax value of loss carry-forwards	-	64.9	72.1
Other	-	(36.9)	(3.5)
	1.6	16.3	(212.4)

	2019
	1 January	Recognised in income statement	Acquisitions
	€m
Property, plant and equipment.	(90.6)	(20.4)	(2.3)
Investments	(41.1)	-	-
Intangible assets	(190.6)	19.4	(6.2)
Employee benefits	21.0	4.7	-
Tax value of loss carryforwards	3.3	(5.5)	2.5
Other	10.5	33.6	(0.4)
	(287.5)	31.8	(6.4)

	2019
	Recognised in equity - translation exchange	Recognised in equity - actuarial	31 December
	€m
Property, plant and equipment.	(4.0)	-	(117.3)
Investments	(0.6)	-	(41.7)
Intangible assets	1.9	-	(175.5)
Employee benefits	(0.2)	3.1	28.6
Tax value of loss carryforwards	0.1	-	0.4
Other	0.4	-	44.1
	(2.4)	3.1	(261.4)

In assessing the Group's ability to realise deferred tax assets, management considers whether it is probable that some portion of all of the deferred tax assets will not be realised. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax strategies in making this assessment.

In order to fully realise the deferred tax asset, the Group will need to generate future taxable income in the countries where the net operating losses were incurred. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes that the Group will realise the aforementioned benefits.

The Group did not recognise deferred tax on losses of €337.8 million (2019: €28.3 million) and other temporary differences of €17.9 million (2019: €nil). Of the carried forward losses, €85.1 million expire at the end of 2021, the remaining balance can be carried forward indefinitely Raw materials, consumables and changes in finished goods and work in progress recognised as cost of sales in the year amounted to €2,435.1 million (2019: €3,301.1 million).

15 INVENTORIES

	2020	2019
	€m
Raw materials and consumables	380.6	157.8
Work in progress	124.5	118.3
Finished goods	403.3	211.4
	908.4	487.5

The write-down of inventories to net realisable value amounted to €3.7 million (2019: €5.3 million). The reversal of previous write-downs of inventories to net realisable value amounted to €5.8 million (2019: €12.8 million).

16 TRADE AND OTHER RECEIVABLES

	2020	2019
	€m
Current
Trade receivables	1,188.2	452.2
Amounts owed by related parties and associated undertakings	48.1	13.0
Other receivables	275.4	55.7
Prepayments and accrued income	52.6	8.9
	1,564.3	529.8
Non-current
Amounts owed by related parties and associated undertakings	50.8	-
Other receivables	8.2	4.3
Prepayments and accrued income	3.0	-
	62.0	4.3

Included in current other receivables are amounts due as part of the completion accounts settlement process for the acquisition of the Aromatics and Acetyls businesses.

Trade receivables ageing

The ageing of trade receivables at the end of the reporting period and the expected credit loss rate (ECLR) was:

	2020
	Gross	Impairment	ECLR
	€m	€m	%
Not past due	1,111.6	(0.3)	-
Past due 0 - 30 days	57.5	(0.2)	0.3%
Past due 31 - 90 days	15.4	(0.4)	2.6%
Past due more than 90 days	18.2	(13.6)	74.7%
	1,202.7	(14.5)	1.2%

	2019
	Gross	Impairment	ECLR
	€m	€m	%
Not past due	420.7	(0.3)	0.1%
Past due 0 - 30 days	29.5	(2.1)	7.1%
Past due 31 - 90 days	3.3	(0.7)	21.2%
Past due more than 90 days	5.1	(3.3)	64.7%
	458.6	(6.4)	1.4%

There were no allowances made against amounts owed by related parties and other receivables during the year (2019: €nil).

The amounts receivable not yet due after impairment losses as of the end of the reporting period are deemed to be collectible on the basis of established credit management processes such as regular analyses of the credit worthiness of customers and external credit checks where appropriate for new customers (see note 26(c)). At 31 December 2019 and 2020 there were no significant trade, related party or other receivable balances classified as "not past due" that were subsequently impaired.

Due to the global activities and diversified customer structure of the Group, the management considers that there is no significant concentration of credit risk (2019: nil).

During 2019 and 2020 there were no significant trade balances that were subject to material renegotiation of terms.

Trade receivable balances totalling €556.8 million (2019: €190.0 million) have been pledged as security against amounts drawn under the Securitisation Facility, totalling €nil (2019: €190.0 million). In accordance with IFRS 9 "Financial Instruments" the trade receivable balances pledged as security do not qualify for derecognition and are included within the trade receivable balances above.

The movement in the allowance for impairment in respect of trade receivables (as per this note) during the year was as follows:

	2020	2019
	€m
Balance at 1 January	(6.4)	(6.5)
Acquisitions	(11.1)	-
Impairment loss recognised	(0.4)	-
Utilised	3.2	0.1
Effects of movement in foreign exchange	0.2	-
Balance 31 December	(14.5)	(6.4)

The allowance account for trade receivables is used to record any impairment losses unless the Group is satisfied that no recovery of the amount owing is probable; at that point the amounts considered irrecoverable are written off against the trade receivables directly.

The Group applies the forward-looking 'expected credit loss' (ECL) model in line with IFRS 9 in assessing the recoverability of trade receivables. The ECL is calculated considering past experiences and management's estimate of future developments. Management expects no significant change in the future market situation. Consequently, the future credit losses in the ECL model are in the same range as the credit losses experienced in the past years. This is regarded as the future expectation of the inherent credit risk of the not impaired trade and other receivables outstanding. The Group reviews the assumptions of the ECL model on a yearly basis.

Credit risk of trade receivables

	2020	2019
	€m
Low	1,087.3	453.5
Medium	65.6	3.0
High	49.8	2.1
Impairment allowance	(14.5)	(6.4)
	1,188.2	452.2

17 CASH AND CASH EQUIVALENTS

	2020	2019
	€m
Cash	462.3	165.0
Short term investments	343.3	124.7
Cash and cash equivalents	805.6	289.7

Cash and cash equivalents held by the Group are denominated in the following currencies:

	2020	2019
	€m
Euro	228.7	61.3
UK Pound	13.9	1.4
US Dollar	341.5	148.7
Other currencies	221.5	78.3
Cash and cash equivalents	805.6	289.7

Bank balances include an amount of €68.0 million (2019: €36.6 million) representing funds in collection accounts that facilitate the trade receivable securitisation programme and which are pledged to the lenders. These funds are available to the Group. Included within cash as of 31 December 2020 are restricted cash balances of €10.2 million (31 December 2019: €nil).

18 INTEREST-BEARING LOANS AND BORROWINGS

This note provides information about the contractual terms of the Group's interest-bearing loans and borrowings, which are measured at amortised cost. For more information about the Group's exposure to interest rate and foreign currency risk see note 26(e).

	2020	2019
	€m
Non-current liabilities
Three-Year Dollar Term Loan A Facility	85.3	-
Five-Year Dollar Term Loan A Facility	170.7	-
Three-Year Euro Term Loan A Facility	90.0	-
Five-Year Euro Term Loan A Facility	180.0	-
Styrolution Euro Term Loan B facilities	450.0	438.2
Styrolution Dollar Term Loan B facilities	161.6	173.3
Styrolution Senior Secured Notes	600.0	-
INOVYN Senior Secured Term Loan B Facility	1,064.3	-
Securitisation facilities	-	190.0
Loan from related party	38.0	-
Other loans	8.7	-
Gross borrowings	2,848.6	801.5
Less: unamortised finance costs	(18.9)	(1.0)
Net borrowings	2,829.7	800.5
Current liabilities
Three-Year Dollar Term Loan A Facility	28.5	-
Three-Year Euro Term Loan A Facility	30.0
Dollar Bridge Facility	1,991.9	-
Euro Bridge Facility	870.0	-
Styrolution Dollar Term Loan B facilities	1.6	7.3
External bank loan	8.4	7.5
Securitisation facilities	-	-
Gross borrowings	2,930.4	14.8
Less: unamortised finance costs	(48.8)	(0.3)
Net borrowings	2,881.6	14.5

Gross debt and issue costs	2020
	Gross loans and borrowings	Issue costs	Net loans and borrowings
	€m
Dollar Bridge Facility	1,991.9	(28.1)	1,963.8
Euro Bridge Facility	870.0	(16.9)	853.1
Three-Year Dollar Term Loan A Facility	113.8	(1.3)	112.5
Five-Year Dollar Term Loan A Facility	170.7	(2.0)	168.7
Three-Year Euro Term Loan A Facility	120.0	(2.9)	117.1
Five-Year Euro Term Loan A Facility	180.0	(1.9)	178.1
Styrolution Euro Term Loan B facilities	450.0	(3.3)	446.7
Styrolution Dollar Term Loan B facilities	163.2	(1.2)	162.0
Styrolution Senior Secured Notes	600.0	(4.4)	595.6
INOVYN Senior Secured Term Loan B Facility	1,064.3	(5.6)	1,058.7
Securitisation facilities	-	(0.1)	(0.1)
Loan from related party	38.0	-	38.0
Other loans	17.1	-	17.1
	5,779.0	(67.7)	5,711.3

Gross debt and issue costs	2019
	Gross loans and borrowings	Issue costs	Net loans and borrowings
	€m
Styrolution Euro Term Loan B facilities	438.2	(0.8)	437.4
Styrolution Dollar Term Loan B facilities	180.6	(0.5)	180.1
Other loans	7.5	-	7.5
Securitisation facilities	190.0	-	190.0
	816.3	(1.3)	815.0

Terms and debt repayment schedule

	Currency	Nominal interest rate	Year of maturity
Dollar Bridge Facility	$	LIBOR + 3.25%	2021
Euro Bridge Facility	€	EURIBOR + 3.25%	2021
Three-Year Dollar Term Loan A Facility	$	LIBOR (floor of 0.0%) + 2.00%	2023
Five-Year Dollar Term Loan A Facility	$	LIBOR (floor of 0.0%) + 2.50%	2025
Three-Year Euro Term Loan A Facility	€	EURIBOR (floor of 0.0%) + 3.00%	2023
Five-Year Euro Term Loan A Facility	€	EURIBOR (floor of 0.0%) + 3.50%	2025
Styrolution Euro Term Loan B facilities	€	EURIBOR (floor of 0.5%) + 2.00%	2027
Styrolution Dollar Term Loan B facilities	$	LIBOR (floor 0.0%) + 2.00%	2027
Styrolution Senior Secured Notes	€	2.25%	2027
INOVYN Senior Secured Term Loan B Facility	€	EURIBOR (floor 0.5%) + 2.00%	2027
Securitisation facilities	$/€/£	Variable	2021

Summary

To facilitate the financing of the BP Acquisition, the Group entered into a $400.0 million Deposit Facility made available to INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) pursuant to a credit agreement dated 29 June 2020. The full $400.0 million (€361.8 million equivalent) available under the Deposit Facility was drawn on the same date, which was used to pay the purchase price deposit payable upon the signing of the BP Acquisition Agreement.

On 31 July 2020, the Group's subsidiaries, INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) and INEOS US Petrochem LLC, entered into a $2,450.0 million and €870.0 million Bridge Credit Agreement with a number of lenders (the "Bridge Facility").

On 31 July 2020, the Group's subsidiaries, INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) entered into a Term Loan A Agreement and INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) entered into a Revolving Credit Agreement.

On 31 December 2020, $2,450.0 million (€2,050.5 million equivalent) and €870.0 million was drawn under the Bridge Facility. In addition, the following was drawn under the Term Loan A Facilities on the same day:

•	$140.0 million under a dollar Term Loan A facility (the "Three-Year Dollar Term Loan A Facility") (€117.2 million equivalent);
•	$210.0 million under a dollar Term Loan A facility (the "Five Year Dollar Term Loan A Facility") (€175.8 million equivalent);
•	€120.0 million under the euro Term Loan A facility (the "Three-Year Euro Term Loan A Facility"); and
•	€180.0 million under the euro Term Loan A facility (the "Five Year Euro Term Loan A Facility").

The Group also received $1,000.0 million contribution by the Company's immediate parent undertaking (the "Equity Bridge Contribution"). The proceeds of the Bridge Facility, the Term Loan A Facilities and the Equity Bridge Contribution were used to (i) pay the purchase price consideration for the BP Acquisition and certain fees and expenses and (ii) repay the amounts outstanding under the Deposit Facility. The Revolving Credit Facility of $300.0 million remained undrawn as at 31 December 2020.

Subsequent to the year end, on 29 January 2021, the Group issued €800.0 million 2½% Euro Senior Secured Notes due 2026, $500.0 million (€406.5 million equivalent) 3⅜% Dollar Senior Secured Notes due 2026 and €500.0 million 3¾% Euro Senior Notes due 2026. In addition, the Group entered into a new Dollar Term Loan B Facility of $2,000.0 million (€1,626.0 million equivalent) and a new Euro Term Loan B Facility of €1,500.0 million. The gross proceeds received under these borrowings were used to (i) repay the amounts outstanding under the Bridge Facility, the Five-Year Euro Term Loan A Facility, the Senior Secured Term Loan B Facility that was acquired with the INOVYN business and repay the Equity Bridge Contribution in the form of a dividend to the Company's shareholder and (n) to pay certain fees and expenses related to these transactions.

Bridge Facility

On 31 July 2020, the Group's subsidiaries, INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) and INEOS US Petrochem LLC, entered into a $2,450.0 million and €870.0 million bridge credit facility (the "Bridge Facility") and all amounts were drawn on 31 December 2020.

The Bridge Facility and the existing capital market debt shared the same security package. The newly acquired businesses of INOVYN, Acetyls and Aromatics were subsequently brought into this security package. In addition, per the Bridge Credit Agreement, the Group had to adhere to certain affirmative and negative covenants.

The Bridge Facility bore interest on drawn amounts and was calculated as follows: EURIBOR (for the Euro portion) and LIBOR (for the US dollar portion) plus a margin of 3.25% for the period 1 to 90 days after closing of the Bridge Credit Agreement, margin of 3.50% for the period 91 to 180 days after closing and 3.75% for 181 to 270 days after closing.

The Bridge Facility was repaid and terminated on 29 January 2021.

Term Loan A facilities and Revolving Credit facility

On 31 July 2020, the Group' subsidiaries, INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) and INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited), entered into a Term Loan and Revolving Credit Agreement with Barclays Bank plc, Citigroup Global Markets Limited and J.P. Morgan Securities plc, as joint global coordinators, joint bookrunners and joint lead arrangers along with a consortium of other banks.

The Term Loan and Revolving Credit Facility Agreement provides:

(i)	Term loans maturing in 2023 to INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) denominated in dollars and denominated in euro, in aggregate principal amount of $140.0 million (the "Three-Year Dollar Term Loan A Facility") and €120.0 million (the "Three-Year Euro Term Loan A Facility"), respectively ;
(ii)	Term loans maturing in 2025 to INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) denominated in dollars and denominated in euro, in an aggregate principal amount of $210.0 million (the "Five Year Dollar Term Loan A Facility") and €180.0 million (the "Five Year Euro Term Loan A Facility"), respectively; and
(iii)	A revolving credit facility maturing in 2023 to INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited) and any other borrowers as may be designated from time to time under the Term Loan and Revolving Credit Agreement, available in dollars and euro, in an aggregate amount of $300.0 million.

As at 31 December 2020, $140.0 million was drawn under the Three-Year Dollar Term Loan A Facility (€117.2 million equivalent); $210.0 million was drawn under the Five Year Dollar Term Loan A Facility) (€175.8 million equivalent); €120.0 million was drawn under the Three-Year Euro Term Loan A Facility; and €180.0 million under the Five Year Euro Term Loan A Facility. As at 31 December 2020, the Revolving Credit Facility was undrawn. The €180.0 million outstanding principal amount of the Five-Year Euro Term Loan A Facility was repaid on 29 January 2021.

Interest

The Term Loans that are denominated in dollars and any revolving credit facility drawings denominated in dollars bear interest at a rate per annum equal to (a) LIBOR divided by 100% minus the LIBOR Reserve percentage (as defined in the Term Loan and Revolving Credit Facility Agreement) (subject to a floor of 0% per annum) plus the Applicable Eurocurrency Margin (as defined in the Term Loan and Revolving Credit Facility Agreement) for such loan or (b) the Alternate Base Rate (subject to a floor of 1.00% per annum) plus the Applicable ABR Margin (as defined in the Term Loan and Revolving Credit Facility Agreement) for such loan.

The Term Loans that are denominated in euros and any revolving credit facility drawings denominated in euro bear interest at a rate per annum equal to EURIBOR (subject to a floor of 0% per annum) plus the Applicable Eurocurrency Margin for such loan.

As at 31 December 2020, the Applicable ABR Margin or the Applicable Eurocurrency Margin, as applicable, is:

•	in the case of the Three-Year Dollar Term Loan A Facility and the revolving credit agreement drawings denominated in dollars, in each case bearing interest at a rate determined by reference to the Alternative Base Rate, 2.00%, subject to adjustment as described below;
•	in the case of the Five-Year Dollar Term Loan A Facility bearing interest at a rate determined by reference to the Alternate Base Rate, 2.50%, subject to adjustment as described below;
•	in the case of the Three-Year Euro Term Loan A Facility and the revolving credit agreement drawings denominated in euros, in each case bearing interest at a rate determined by reference to EURIBOR or LIBOR, as applicable, 3.00%, subject to adjustment as described below; and
•	in the case of Five-Year Euro Term Loan A Facility bearing interest at a rate determined by reference to EURIBOR or LIBOR, as applicable, 3.50%, subject to adjustment as described below.

Following the delivery of financial statements and a compliance certificate for each fiscal quarter, commencing with the fiscal quarter ended 31 March 2021, the Applicable ABR Margin and the Applicable Eurocurrency Margin for the A Term Loans and the Revolving Loans will be subject to adjustment on a quarterly basis based on the Consolidated Total Net Leverage Ratio (as defined in the Term Loan and Revolving Credit Facility Agreement) as of the end of such fiscal quarter.

The Alternate Base Rate will be a rate per annum determined as the highest of (a) a specified prime rate, (b) the Federal Funds rate plus 0.50% and (c) LIBOR for an interest period of one month (after giving effect to the applicable LIBOR floor) plus 1.00%.

A commitment fee equal to 35% of the Applicable Eurocurrency Margin in effect from time to time with respect to Revolving Loans is payable on the daily unused amount of the commitments under the Revolving Credit Facility.

Security and Guarantees

The obligations under the Term Loans and the Revolving Credit Facility are jointly and severally guaranteed on a senior basis by the certain of the Group's subsidiaries.

Covenants

The Term Loan and Revolving Credit Agreement contains a number of operating and financial covenants including limitations on indebtedness, restricted payments, transactions with affiliates, liens, sale of assets and dividend payments.

The Term Loan and Revolving Credit Facility Agreement contains a financial covenant based on a maximum Consolidated Total Net Leverage Ratio (as defined in the Term Loan and Revolving Credit Facility Agreement).

Repayment

The Five-Year Dollar Term Loan A Facility are to be repaid in quarterly instalments beginning on 30 September 2023, in aggregate principal amounts equal to the following percentages of the original aggregate principal amount:

•	8%, for 30 September 2023;
•	10.5%, for each of 31 December 2023, 31 March 2024, 30 June 2024 and 30 September 2024;
•	12.5%, for each of 31 December 2024 and 31 March 2025; and
•	25.0% thereafter.

The balance of the Five-Year Dollar Term Loan A Facility and the Five-Year Euro Term Loan A Facility are payable, subject to certain exceptions, on 31 July 2025.

Each of the Three-Year Dollar Term Loan A Facility and the Three-Year Euro Term Loan A Facility are to be repaid in quarterly instalments beginning on 30 June 2021, in aggregate principal amounts equal to the following percentages of the original aggregate principal amount:

•	6.25%, for each of 30 June 2021 and 30 September 2021; and
•	12.5% thereafter.

The balance of the Three-Year Dollar Term Loan A Facility and the Three-Year Euro Term Loan A Facility are payable, subject to certain exceptions, on 31 July 2023.

Any drawings under the Revolving Credit Facility are payable, subject to certain exceptions, on 31 July 2023.

Prepayments

The Group may make voluntary prepayments of all or part of the Term Loan subject to certain conditions.

The Group may be required to make mandatory prepayments of part of the Terms Loans in any one year in an amount of up to 50% of annual excess cash; 100% of the net cash proceeds from certain sales or other dispositions of material assets and 100% of the net cash proceeds from any issuance or incurrence of debt.

Styrolution Term Loan B facilities

On 7 November 2014, INEOS Styrolution Group GmbH and INEOS Styrolution US Holding LLC entered into a Credit Agreement with Barclays Bank PLC as Administrative Agent and Security Agent (the "Term Loan B Facilities Agreement"). Subsequently, the Credit Agreement was extended and amended multiple times, the last extension was executed on 22 November 2017.

As at 31 December 2019, the Styrolution Euro Term Loan B borrowings outstanding were €438.2 million and the Styrolution Dollar Term Loan B borrowings were $202.3 million (€180.6 million equivalent). On 31 January 2020, the Group successfully completed an amend-and-extend transaction of the existing term loans increasing the principal amount of the Styrolution Euro Term Loan B borrowings to €450.0 million and the Styrolution Dollar Term Loan B borrowings remained at $202.3 million.

The new Term Loan B Facilities Agreement provides terms loans to INEOS Styrolution US Holding LLC denominated in dollars (the "Styrolution Dollar Term Loan B") and to INEOS Styrolution Group GmbH denominated in euros (the "Styrolution Euro Term Loan B") in aggregate principal amount of $202.3 million and €450.0 million, respectively. The Term Loans were made in a single drawing on 31 January 2020. As at 31 December 2020, €450.0 million remained drawn under the new Styrolution Euro Term Loan B and $200.8 million (€162.3 million equivalent) remained drawn under the new Styrolution Dollar Term Loan B.

Interest

The Dollar Term Loans outstanding up until 31 January 2020 bore interest at a rate per annum equal to LIBOR plus 2.00%. The Euro Term Loans outstanding up until 31 January 2020 bore interest at a rate per annual equal to EURIBOR (subject to a floor of 0.5% per annum) plus 2.00%.

From 31 January 2020, the new Dollar Term Loans bear interest at a rate per annum equal to (a) LIBOR divided by 100% minus the LIBOR Reserve Percentage (as defined in the Term Loan B Facilities Agreement) (subject to a floor of 0% per annum) plus the Applicable Margin specified below for such loan or (b) the Alternate Base Rate (subject to an a floor of 1.00% per annum) plus the Applicable Margin specified below for such loan.

From 31 January 2020, the new Euro Term Loans bear interest at a rate per annum equal to EURIBOR (subject to a floor of 0.50% per annum) plus the Applicable Margin specified below for such loan.

The Applicable Margin is:

•	in the case of new Dollar Term Loans bearing interest at a rate determined by reference to LIBOR, 2.00%;
•	in the case of new Dollar Term Loans bearing interest at a rate determined by reference to Alternate Base Rate, 1.00%; and
•	in the case of new Euro Term Loans (together with the new Dollar Term Loans bearing interest by reference to LIBOR, the "LIBOR Loans"), 2.00%.

The Alternate Base Rate is a rate per annum determined as the highest of (a) a specified prime rate, (b) the Federal Funds rate plus 0.50% and (c) LIBOR for an interest period of one month (after giving effect to the applicable LIBOR floor) plus 1.00%.

Security and guarantees

The obligations under the Term Loans and the Revolving Credit Facility are jointly and severally guaranteed on a senior basis by the certain of the Group's subsidiaries.

Covenants

The Term Loan B facilities contains a number of operating and financial covenants including limitations on indebtedness, restricted payments, transactions with affiliates, liens, sale of assets and dividend payments.

The Term Loan B facilities do not contain any financial maintenance covenants.

Repayment

Up until 31 January 2020, the maturity date for both the Dollar Term Loans and the Euro Term Loans was 30 March 2024.

From 31 January 2020, the new Dollar Term Loans are to be repaid in equal instalments, in aggregate annual amounts equal to 1% of the original principal amount of the new Dollar Term Loans. The new Euro Term Loans and the balance of the new Dollar Term Loans are payable on 31 January 2027.

Prepayments

The Group may make voluntary prepayments of all or part of the Term Loan subject to certain conditions.

The Group may be required to make mandatory prepayments of part of the Terms Loans in any one year in an amount of up to 50% of annual excess cash; 100% of the net cash proceeds from certain sales or other dispositions of material assets and 100% of the net cash proceeds from any issuance or incurrence of debt.

Styrolution Senior Secured Notes

On 31 January 2020, INEOS Styrolution Group GmbH issued €600.0 million aggregate principal amount 2¼% Senior Secured Notes due 2027 (the "Styrolution Senior Secured Notes"). The Styrolution Senior Secured Notes are listed on the Euro MTF - Luxembourg stock exchange and bear interest at 2¼% per annum, payable semi-annually in arrears on 15 January and 15 July of each year, beginning 15 July 2020. Unless previously redeemed as noted below, the Styrolution Senior Secured Notes will be repaid by the Group at their principal amount on 16 January 2027.

At any time prior to 15 January 2023, INEOS Styrolution Group GmbH may redeem all or part of the Styrolution Senior Secured Notes at a redemption price equal to 100% of the principal amount of the Styrolution Senior Secured Notes redeemed plus the greater of (1) 1.0% of the principal amount of such Styrolution Senior Secured Notes; and (2) the excess of (a) the present value at such redemption date of the redemption price of such Styrolution Senior Secured Notes at 15 January 2023, plus all required interest payments that would otherwise be due to be paid on such Styrolution Senior Secured Notes during the period between the redemption date and 15 January 2023, excluding accrued but unpaid interest, computed using a discount rate equal to the Bund rate at such redemption date plus 50 basis points, over (b) the principal amount of such Styrolution Senior Secured Notes.

The Styrolution Senior Secured Notes are subject to redemption at any time on or after 15 January 2023 in whole or in part, at the following redemption prices (expressed as percentages of the aggregate principal amount), if redeemed during the twelve-month period beginning on 15 January of the year indicated below:

Year	2027 Senior Secured Notes Redemption Price
2022	101.1250%
2023	100.5625%
2024 and thereafter	100.0000%

together with certain additional amounts, if applicable, and accrued and unpaid interest, if any, to the redemption date (subject to the rights of holders of record on relevant record dates to receive interest due on an interest payment date).

At any time prior to 15 January 2023, INEOS Styrolution Group GmbH may redeem up to 40% of the initial aggregate principal amount of the sum of the initial aggregate principal amount of the Styrolution Senior Secured Notes originally issued on 31 January 2020 with the net cash proceeds of certain public equity offerings at 102.250% of the aggregate principal amount of the Styrolution Senior Secured Notes, and accrued and unpaid interest, if any, to, but not including, the redemption date, if at least 60% of the issued aggregate principal amount of the Styrolution Senior Secured Notes remains outstanding.

The Styrolution Senior Secured Notes are jointly and severally guaranteed on a senior secured basis by INEOS Styrolution Group GmbH and certain of its subsidiaries. They are secured by first priority liens (subject to certain exceptions) on the same assets that secured the obligations under the Styrolution Term Loan B facilities, the Term loan and Revolving Credit Facility Agreement and certain hedging obligations and cash management arrangements.

The Styrolution Senior Secured notes contain a number of operating and financial covenants including limitations on indebtedness, restricted payments, transactions with affiliates, liens, sale of assets and dividend payments.

INOVYN Senior Secured Term Loan B facility

On 13 May 2016, INOVYN Finance Limited (formerly INOVYN Finance plc) entered into a Credit Agreement with, inter alia, J.P. Morgan Europe Limited as Administrative Agent, The Bank of New York Mellon, London Branch as Security Agent and J.P. Morgan Limited as Global Coordinator.

Under the terms of this Credit Agreement, INOVYN Finance Limited (formerly INOVYN Finance plc) fully drew down on 13 May 2016 the Initial Tranche B Euro Term Commitment of €535.0 million in the form of Senior Secured Term Loans (the "Senior Secured Term Loans"). As at 31 December 2020, following a number of refinancing and repricing events and repayments, €1,064.3 million was outstanding.

The interest rate payable on the INOVYN Senior Secured Term Loan B facility is EUIBOR (with a floor of 0.50%) plus a margin of 2.00%, payable in arrears on the last day of each interest period, or every three months for interest periods greater than three months.

The maturity date was 9 March 2027 and a single payment of the full amount was due on this date.

The obligations under the INOVYN Senior Secured Term Loan B facility are guaranteed by INOVYN Limited and certain of its subsidiaries on a senior secured basis. The Credit Agreement contains a number of operating and financial covenants including limitations on indebtedness, restricted payments, transactions with affiliates, liens, sale of assets and dividend payments. The INOVYN Senior Secured Term Loan B facility was maintenance covenant free.

On 29 January 2021, the aggregate principal amount of Term Loan B outstanding of €1,064.3 million plus accrued interest was repaid in full using the proceeds from the refinancing on 29 January 2021.

Securitisation facilities

INEOS Styrolution Group GmbH and certain other Styrolution business' companies are party to a trade receivables securitisation programme (the "Styrolution Securitisation Programme") with HSBC Bank PLC and Landesbank Hessen-Thüringen (Helaba) who act as lenders, liquidity providers and programme agents. The maximum amount available under the Styrolution Securitisation Programme is €450.0 million, subject to a borrowing limit that is adjusted periodically based on the amount of eligible trade receivables at that time. The Styrolution Securitisation Programme matures on 10 July 2021. For drawn amounts, the Styrolution Securitisation Programme bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.89% except that if any lending is funded other than by issuing Commercial Paper then the applicable interest rate is EURIBOR / LIBOR plus 0.89%. For undrawn amounts, the Styrolution Securitisation Programme bears interest of 0.5%. The facility is secured on certain of the Styrolution business' trade receivables.

INOVYN Group Treasury Limited and certain other INOVYN business' companies are party to a trade receivables securitisation programme (the "INOVYN Securitisation Programme") with Barclays Bank PLC, ING Belgium N.V. and HSBC Bank PLC who act as lenders, liquidity providers and programme agents. The maximum amount available under the INOVYN Securitisation Programme is €240.0 million subject to a borrowing limit that is adjusted periodically based on the amount of eligible trade receivables at that time. The INOVYN Securitisation Programme matured on 30 June 2021. For drawn amounts, the INOVYN Securitisation Programme facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 1.1 %, except that if any lending is funded other than by issuing Commercial Paper then the applicable interest rate is EURIBOR / LIBOR plus 1.1%. For undrawn amounts, the facility bears interest of 0.5%. The facility is secured on certain of the INOVYN business' trade receivables.

On 28 June 2021, the Group renegotiated its historic trade receivables securitisation programme that was in the Styrolution business. A further three banks have joined the programme, with the total number of lending banks now at 5. The maximum amount available under the securitisation programme will increase from €450.0 million to €600.0 million as soon as three new selling entities from the Aromatics and Acetyls business join the programme. The facility now matures on 28 June 2024. For drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was between 0.80% and 0.95%). For undrawn amounts, the facility bears interest of 0.5%.

On 28 June 2021, the Group renegotiated its INOVYN Securitisation Programme. The maximum amount available under the securitisation programme remained the same at €240.0 million. The facility now matures on 30 June 2024. The interest rates were also reduced and, for drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was 1.1%), except that if any lending is funded other than by issuing Commercial Paper then the applicable interest rate is SONIA/SOFR plus 0.95% (previously the margin was 1.1%). For undrawn amounts, the facility bears interest of 0.5%.

Other facilities

The Group acquired an external bank loan with the acquisition of the Aromatics business of €17.2 million. This is a loan between INEOS Zhuhai Chemical Company Ltd (formerly BP Zhuhai Chemical Company Ltd) and the Bank of China Zhuhai branch. Repayments are made every six months, with the final repayment due on 27 August 2022. The loan bears interest at Chinese LPR +0.25%. The loan is secured by the minority shareholders, Zhuhai Port Co. Ltd. As at 31 December 2020, this external bank loan was €16.8 million.

The Group has several short-term credit facilities with different local banks to fund working capital requirements up to a total aggregate amount of €409.9 million equivalent as of 31 December 2020, in China, India, Mexico, Singapore, South Korea, Thailand, and UK. As of 31 December 2020, the drawn amount under working capital facilities amounted to €17.4 million equivalent (2019: €8.5 million), and there was €392.5 million equivalent available under such facilities (2019: €142.6 million) (after taking into account a reduction in the available amounts due to the use of certain bank acceptances in China of €5.9 million (2019: €6.0 million).

The Group also has letter of credit facilities in China, India, Mexico, Singapore, South Korea, Thailand, and UK. As of 31 December 2020, the drawn amount under all letter of credit facilities was €11.2 million equivalent (2019: €1.8 million). The letters of credit are generally secured by current assets. The facilities also provide for a limited number of other financial services, such as bank guarantees and FX hedging lines. The facilities, which are at an agreed margin or the state bank advance rate, contain customary covenants and representations as well as termination events.

In 2015, INOVYN Group Treasury Limited entered into on-demand letter of credit facilities with each of ING Bank N.V. and Barclays Bank PLC (each, an "Issuing Bank"), under which INOVYN Group Treasury Limited may request (on its own behalf or on behalf of other INOVYN subsidiaries) that the Issuing Banks issue letters of credit, guarantees, performance bonds and indemnities (or any other instrument in a form agreed by the Issuing Bank) with an aggregate base currency amount of up to €40.0 million; €30.0 million of which is available under the ING Bank N.V. facility and €10.0 million of which is available under the Barclays Bank PLC facility. At 31 December 2020, €7.2 million of certain bank guarantees and letters of credit of the INOVYN business were provided for under these facilities. Under the terms of each Letter of Credit Facility, INOVYN Group Treasury Limited will provide cash collateral of the value of outstanding letters of credit, bonds, guarantees and indemnities when provided. These facilities are uncommitted and there is no expiry date.

In addition, within the INOVYN business, certain guarantees from banks and other financial institutions have been provided under non cash-backed arrangements with those institutions. The majority of these guarantees are to support energy purchasing arrangements and operating licenses from regulatory bodies. As at 31 December 2020, these amounted to €29.0 million.

19 LEASE OBLIGATIONS

Analysed as:	2020	2019
	€m
Current lease liabilities	77.9	21.1
Non-current lease liabilities	234.4	125.1
	312.3	146.2

Maturity analysis - contractual undiscounted cash flows:	2020	2019
	€m
Less than one year	86.4	27.4
Between one and five years	153.5	78.7
More than five years	137.8	87.8
Total undiscounted lease liabilities at 31 December	377.7	193.9

Amounts recognised in the statement of cash flows:	2020	2019
	€m
Lease capital payments	23.8	21.5
Lease interest payments	7.2	7.4
Short-term leases	1.4	3.0
Variable lease costs	0.8	0.3
Leases of low value assets	0.2	0.2
Total cash outflow for leases	33.4	32.4

The Group has entered into a number of significant lease arrangements relating to off-site storage capacity, rail cars, land and buildings, and air separation plants used for the generation of industrial gases.

20 TRADE AND OTHER PAYABLES

	2020	2019
	€m
Current
Trade payables	1,041.9	385.6
Amounts owed to related parties	191.6	48.3
Accruals	332.6	130.2
Deferred income	6.8	-
Other payables	196.8	37.3
	1,769.7	601.4
Non-current
Accruals	27.3	16.4
Deferred income	100.6	-
Other payables	2.6	-
	130.5	16.4

The Group's exposure to currency and liquidity risk related to trade and other payables is disclosed in note 26.

21 EMPLOYEE BENEFITS

The Group operates a number of pension and post-retirement medical plans throughout the world, devised in accordance with local conditions and practices. The plans are generally of the defined benefit type and those that are funded are done so by payments to separately administered funds or insurance companies. The principal funded plans are in Belgium, Canada, France, Germany, India, South Korea, Mexico, Switzerland, USA, Norway, Austria, Spain and the United Kingdom.

The Group also operates a number of unfunded defined benefit pension schemes in the Indonesia, Canada, South Korea, Thailand, USA, Germany and Italy.

The most recent full valuations of the significant defined benefit plans were carried out as follows:

Plan	Country	Valuation date
All Plans	Belgium	31 December 2020 / 1 January 2021
All Plans	Canada	31 December 2017
All Plans	France	31 December 2020
All Plans	Germany	31 December 2020
All Plans	India	31 December 2020
All Plans	South Korea	31 December 2020
All Plans	Mexico	31 December 2020
All Plans	Switzerland	31 December 2020
All Plans	Thailand	31 December 2020
All Plans	USA	1 January 2020
All Plans	Indonesia	31 December 2020
All Plans	United Kingdom	5 April 2019
All Plans	Norway	31 December 2020
All Plans	Italy	31 December 2020
All Plans	Spain	31 December 2020
All Plans	Austria	31 December 2020

Where the most recent full valuations were carried out prior to the balance sheet date, these have been updated to 31 December 2020 by independent qualified actuaries.

The Group's pension schemes have been disclosed on a geographical basis as those schemes in Europe, United Kingdom, North America and Rest of the World.

The European pension arrangements are a mix of final salary, career average, unit benefit and cash balance plans in nature, and the majority are closed to new entrants. The majority of the plans are funded via insurance policies and there are also a number of unfunded German and Italian plans.

The UK defined benefit pension plans were historically final salary in nature, with a normal retirement age of 60, and are both closed to new entrants and future accrual. The plans operate under trust law and are managed and administered by Trustees in accordance with the terms of each plan's Trust Deed and Rules and relevant legislation. The contributions paid to the UK plans are set every three years based on a funding agreement between the company and Trustee after taking actuarial advice.

The North Americas pension arrangements consists of three funded plans in the USA (all of which are closed to future accrual) and one funded plan in Canada (which is closed to new entrants and to future accrual). All pension plans, except one, are final salary defined benefit in nature, and the plans' liabilities are valued regularly in line with statutory funding requirements.

The Rest of the World pension arrangements are comprised of the Group's pension plans in India, South Korea, Mexico, Thailand and Indonesia.

The Group also operates a number of post-retirement healthcare plans in North Americas and the United Kingdom, which provide employees with other post-retirement benefits in respect of healthcare. The plans are unfunded and the liability is assessed by qualified independent actuaries under the projected unit method.

Pension plan assumptions

The major actuarial assumptions (expressed as weighted averages or ranges) at year end were as follows:

	European		United Kingdom
	2020	2019	2020	2019
	%
Price inflation	1.00 - 1.75	1.00 - 2.00	2.80	-
Discount rate for scheme liabilities	-0.50 - 2.00	0.25 - 1.25	1.60	-
Rate of increase in pensionable salaries	0.00 - 4.25	0.00 - 2.75	n/a	-
Rate of increase in pensions in payment	-3.86 - 1.75	0.00 - 1.75	2.00 - 3.60	-
Rate of increase for deferred pensioners	0.00 - 1.75	0.00 - 1.75	2.40 - 2.80	-
Healthcare medical trend rate (initial)	1.75	n/a	5.36	-
Healthcare medical trend rate (ultimate)	1.75	n/a	4.80	-

	North America		Rest of the World
	2020	2019	2020	2019
	%
Price inflation	0.00 - 2.00	0.00 - 2.00	0.00 - 3.50	0.00 - 3.50
Discount rate for scheme liabilities	2.50	3.00 - 3.25	1.25 - 8.00	1.50 - 8.75
Rate of increase in pensionable salaries	0.00 - 2.50	0.00 - 3.00	0.00 - 8.00	4.66 - 8.00
Rate of increase in pensions in payment	0.00-0.50	0.00 - 0.50	n/a	n/a
Rate of increase for deferred pensioners	n/a	n/a	n/a	n/a
Healthcare medical trend rate (initial)	5.56 - 6.25	5.64 - 6.50	n/a	n/a
Healthcare medical trend rate (ultimate)	4.50 - 5.00	4.50 - 5.00	n/a	n/a

The assumptions relating to longevity underlying the pension liabilities at the reporting date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65-year old to live for a number of years as follows:

	European		United Kingdom
	2020	2019	2020	2019
	(Years)
Longevity at age 65 for current male pensioners	20.3 - 23.5	18.0 - 22.5	20.5 - 22.2	-

	North America		Rest of the World
	2020	2019	2020	2019
	(Years)
Longevity at age 65 for current male pensioners	20.9 - 22.1	21.5 - 22.0	n/a	n/a

Expected long-term rate of return is as follows:

	European		United Kingdom
	2020	2019	2020	2019
	%
Equity	-0.50 - 2.00	0.25 - 1.25	1.60	-
Bonds	-0.50 - 2.00	0.25 - 1.25	1.60	-
Property	-0.50 - 2.00	0.25 - 1.25	1.60	-
Other	-0.50 - 2.00	0.25 - 1.25	1.60

	North America		Rest of the World
	2020	2019	2020	2019
	%
Equity	2.50	3.00 - 3.25	1.25 - 8.00	1.50 - 8.75
Bonds	2.50	3.00 - 3.25	1.25 - 8.00	1.50 - 8.75
Property	2.50	3.00 - 3.25	1.25 - 8.00	1.50 - 8.75
Other	2.50	3.00 - 3.25	1.25 - 8.00	1.50 - 8.75

The following table presents the sensitivity of the defined benefit obligation to each significant actuarial assumption:

	2020
	European	United Kingdom	North America	Rest of the World
	€m
Discount rate: 1% decrease	90.9	310.0	9.6	1.9
Rate of inflation: 0.5% increase ⁽¹⁾	26.1	105.3	1.3	-
Mortality: 1 year increase in longevity for a member currently aged 65	13.6	54.3	1.5	-

	2019
	European	North America	Rest of the World
	€m
Discount rate: 1% decrease	35.0	9.6	2.2
Rate of inflation: 0.5% increase ⁽¹⁾	11.4	1.2	-
Mortality: 1 year increase in longevity for a member currently aged 65	4.8	1.3	-

⁽¹⁾ The sensitivity to the inflation assumption change includes corresponding changes to the future salary increase and future pension increase assumptions where these assumptions are set to be linked to the inflation assumption.

The weighted average duration of plan liabilities at 31 December 2020 is as follows:

	European	United Kingdom	North America	Rest of the World
	(Years)
Duration	0.60 - 26.201	12.0 - 25.2	12.6 - 14.5	4.7 - 8.5

Pension assets

The disclosures relating to the net pension assets are disclosed below. The amounts recognised in the balance sheet are as follows:

	2020	2019
	United Kingdom
	€m
Equities	43.0	-
Bonds	349.4	-
Property	3.2	-
Other	102.4	-
Fair value of plan assets	498.0	-
Present value of funded obligations	(465.0)	-
Net pension asset	33.0	-

Other investments largely consist of quoted instruments. There are no plans which hold investments in the Group's own financial instruments, or hold assets or property which are used by the Group.

The United Kingdom pension asset was acquired with the INOVYN business. Therefore there are no amounts recognised in the income statement nor the statement of other comprehensive income in the years ended 31 December 2020 and 31 December 2019.

Reconciliation of present value of scheme liabilities:

	2020	2019
	United Kingdom
	€m
At 1 January	-	-
Acquisition	(469.4)	-
Exchange adjustments	4.4	-
At 31 December	(465.0)	-

Reconciliation of fair value of scheme assets:

	2020	2019
	United Kingdom
	€m
At 1 January	-	-
Acquisition	502.7	-
Exchange adjustments	(4.7)	-
At 31 December	498.0	-

Pension liabilities

The disclosures relating to the net pension liabilities are disclosed below. The amounts recognised in the balance sheet are as follows:

	2020
	European	United Kingdom	North America	Rest of the World	Total
	€m
Equities	83.9	158.5	4.5	0.3	247.2
Bonds	89.7	477.9	56.5	0.5	624.6
Property	7.3	9.0	-	-	16.3
Other	89.1	126.3	0.5	7.9	223.8
Fair value of plan assets	270.0	771.7	61.5	8.7	1,111.9
Present value of funded obligations	(390.9)	(799.0)	(55.7)	(11.9)	(1,257.5)
Present value of unfunded obligations	(118.4)	(0.5)	(12.9)	(21.5)	(153.3)
Net pension liability	(239.3)	(27.8)	(7.1)	(24.7)	(298.9)

	2019
	European	North America	Rest of the World	Total
	€m
Equities	32.5	4.5	0.4	37.4
Bonds	51.3	55.7	0.8	107.8
Property	1.1	-	-	1.1
Other	15.5	0.6	8.0	24.1
Fair value of plan assets	100.4	60.8	9.2	170.4
Present value of funded obligations	(140.4)	(55.9)	(13.0)	(209.3)
Present value of unfunded obligations	-	(13.4)	(21.8)	(35.2)
Net pension liability	(40.0)	(8.5)	(25.6)	(74.1)

The actual return on plan assets was:

	2020	2019	2020	2019
	European		North America
	€m
Actual return on plan assets	7.0	13.3	7.4	7.0

	2020	2019	2020	2019
	Rest of the World		Total
	€m
Actual return on plan assets	0.3	0.3	14.7	20.6

The majority of the assets invested in property are unquoted. All other investments are largely in quoted instruments. Equities comprise of well-diversified holdings over a wide range of global markets.

There are no plans which hold investments in the Group's own financial instruments, or hold assets or property which are used by the Group. At 31 December 2020, within one of the pension plans in the United Kingdom, the Group held €24.3 million (2019: €nil) of bonds issued by INEOS Group Holdings S.A., which is a related party.

The amounts recognised in the income statement are as follows:

	2020	2019	2020	2019
	European		North America
	€m
Current service cost ⁽¹⁾	(5.0)	(4.6)	(0.8)	(0.8)
Past service credit ⁽¹⁾	0.1	-	-	-
Expected return on plan assets ⁽²⁾	1.2	1.7	1.7	2.0
Interest cost on obligation ⁽²⁾	(1.6)	(2.2)	(2.0)	(2.3)
Total	(5.3)	(5.1)	(1.1)	(1.1)

	2020	2019	2020	2019
	Rest of World		Total
	€m
Current service cost ⁽¹⁾	(2.0)	(1.9)	(7.8)	(73)
Past service credit ⁽¹⁾	0.1	-	0.2	-
Expected return on plan assets ⁽²⁾	0.3	0.3	3.2	4.0
Interest cost on obligation ⁽²⁾	(0.8)	(0.9)	(4.4)	(5.4)
Total	(2.4)	(2.5)	(8.8)	(8.7)

⁽¹⁾ Included within operating profit
⁽²⁾ Included within finance costs.

The amounts recognised in the statement of other comprehensive income are as follows:

	2020	2019	2020	2019
	European		North America
	€m
Actual return less expected return on pension scheme assets	5.8	11.6	5.7	5.0
Experience gains/(losses) arising on scheme liabilities	2.8	(1.5)	0.7	0.3
Changes in assumptions	(15.1)	(20.3)	(5.6)	(6.0)
Actuarial (loss)/gain recognised	(6.5)	(10.2)	0.8	(0.7)

	2020	2019	2020	2019
	Rest of the World		Total
	€m
Actual return less expected return on pension scheme assets	-	-	11.5	16.6
Experience gains/(losses) arising on scheme liabilities	0.2	(1.0)	3.7	(2.2)
Changes in assumptions	0.5	(1.2)	(20.2)	(27.5)
Actuarial (loss)/gain recognised	0.7	(2.2)	(5.0)	(13.1)

Reconciliation of present value of scheme liabilities:

	European	United Kingdom	North America	Rest of the World	Total
	€m
At 1 January 2019	(112.4)	-	(61.2)	(29.3)	(202.9)
Current service cost	(4.6)	-	(0.8)	(1.9)	(7.3)
Interest cost	(2.2)	-	(2.3)	(0.9)	(5.4)
Employee contributions	(0.2)	-	-	-	(0.2)
Benefits paid	0.8	-	3.9	1.4	6.1
Experience (loss)/gain	(1.5)	-	0.3	(1.0)	(2.2)
Change of assumptions	(20.3)	-	(6.0)	(1.2)	(27.5)
Other ^*	-	-	(0.1)	(1.5)	(1.6)
Exchange adjustments	-	-	(3.1)	(0.4)	(3.5)
At 31 December 2019	(140.4)	-	(69.3)	(34.8)	(244.5)
Acquisitions	(350.8)	(807.1)	-	(2.4)	(1,160.3)
Current service cost	(5.0)	-	(0.8)	(2.0)	(7.8)
Past service credit	0.1	-	-	0.1	0.2
Interest cost	(1.6)	-	(2.0)	(0.8)	(4.4)
Benefits paid	1.2	-	3.1	3.6	7.9
Experience gain	2.8	-	0.7	0.2	3.7
Change of assumptions	(15.1)	-	(5.6)	0.5	(20.2)
Exchange adjustments	(0.5)	7.6	5.3	2.2	14.6
At 31 December 2020	(509.3)	(799.5)	(68.6)	(33.4)	(1,410.8)

^* Inclusion of Indian Gratuity Plan as at 1 January 2019 with €1.5 million defined benefit obligation.

Reconciliation of fair value of scheme assets:

	European	United Kingdom	North America	Rest of the World	Total
	€m
At 1 January 2019	82.7	-	53.8	8.0	144.5
Expected return on scheme assets	1.7	-	2.0	0.3	4.0
Employer contributions	5.0	-	0.9	0.7	6.6
Employee contributions	0.2	-	-	-	0.2
Benefits paid	(0.8)	-	(3.9)	(1.4)	(6.1)
Actuarial gain	11.6	-	5.0	-	16.6
Other ^*	-	-	-	1.7	1.7
Exchange adjustments	-	-	3.0	(0.1)	2.9
At 31 December 2019	100.4	-	60.8	9.2	170.4
Acquisitions	158.1	779.0	-	-	937.1
Expected return on scheme assets	1.2	-	1.7	0.3	3.2
Employer contributions	5.4	-	0.9	3.4	9.7
Employer contributions	0.3	-	-	-	0.3
Benefits paid	(1.2)	-	(3.1)	(3.6)	(7.9)
Actuarial gain	5.8	-	5.7	-	11.5
Exchange adjustments	-	(7.3)	(4.5)	(0.6)	(12.4)
At 31 December 2020	270.0	771.7	61.5	8.7	1,111.9

^* Inclusion of Indian Gratuity Plan as at 1 January 2019 with €1.3 million fair value of plan assets.

Actuarial gains and losses before tax recognised directly in equity in the statement of comprehensive income is:

	2020	2019
	€m
At 1 January	(21.2)	(8.1)
Actuarial loss recognised in the year	(5.0)	(13.1)
Cumulative amount at 31 December	(26.2)	(21.2)

Depending on prevailing exchange rates, the Group expects to contribute approximately €68.9 million to its defined pension plans in 2021.

22 PROVISIONS

	Onerous contracts	Severance and restructuring	Environmental
	€m
At 1 January 2020	3.0	-	0.2
Acquisitions	-	1.7	83.5
Charged/(credited) to the consolidated income statement	0.3	-	-
Reclassifications	-	-	-
Utilised in the year	(1.2)	-	-
Effects of movement in foreign exchange	(0.2)	-	(0.1)
At 31 December 2020	1.9	1.7	83.6
Non-current	0.6	-	0.2
Current	2.4	-	-
At 31 December 2019	3.0	-	0.2
Non-current	0.2	0.8	69.1
Current	1.7	0.9	14.5
At 31 December 2020	1.9	1.7	83.6

	Plant closures	Other provisions	Total
	€m
At 1 January 2020	-	26.4	29.6
Acquisitions	12.0	2.8	100.0
Charged/(credited) to the consolidated income statement	-	(0.8)	(0.5)
Reclassifications	-	(2.8)	(2.8)
Utilised in the year	-	(0.1)	(1.3)
Effects of movement in foreign exchange	(0.1)	(0.1)	(0.5)
At 31 December 2020	11.9	25.4	124.5
Non-current	-	24.1	24.9
Current	-	2.3	4.7
At 31 December 2019	-	26.4	29.6
Non-current	3.0	21.4	94.5
Current	8.9	4.0	30.0
At 31 December 2020	11.9	25.4	124.5

Onerous contracts

Provisions relates to unfavourable supply contracts and contract termination costs with related parties recognised in a prior year's business combination. Cash of €1.2 million was spent in the year. There was a reclassification of €2.8 million to accruals during 2020. The remaining provision is expected to be fully utilised by 2022.

Severance and restructuring

Provisions of €1.7 million were acquired as part of the INOVYN acquisition, which is mostly associated with the closure of the cellroom at Zandvliet, Belgium, and the reorganisation of supply chain and commercial teams. The remaining provision of €1.7 million is expected to be fully utilised by 2023.

Environmental

Environmental provisions represent the expected cost of remediation works where there is a legal or constructive obligation for the works to be carried out and a reasonable estimate of the cost can be made.

Provisions were acquired with the acquisition of the Acetyls business of €1.5 million. The majority of the provisions relate to decommissioning costs of a boiler in the United Kingdom, with the provision expected to fully utilised in 2021.

Provisions were acquired with the acquisition of the Aromatics business of €2.9 million. The majority of the provisions in the Aromatics business relate to the future costs for monitoring and clean up of land in Geel, Belgium and an environmental provision relating to the Naperville campus in the USA.

Provisions of €79.1 million were acquired with the INOVYN business. The majority of the provisions in the INOVYN business relate to obligations associated with the decommissioning of mercury-based cell rooms at the Group's sites in Belgium, France, Sweden, Spain and Italy, plus costs of implementing the Plan de prevention des risques technologiques (PPRT) at the Feyzin site in France as required under French legislation. In addition, there is a provision to cover costs associated with the construction of a sealed cell for certain sedimentation basins and a pilot plant for treatment of contaminated ground water at Tavaux, France in order to comply with the obligations of the EU Water Framework directive and to reduce the level of leaching of historical contamination. The remaining provisions are expected to be fully utilised by 2047.

Plant closures

Provisions of €12.0 million were acquired as part of the INOVYN acquisition. Costs of €7.7 million for decommissioning and decontamination, disposal of elemental mercery, and manpower headcount reductions were provided for in relation to the closure of the mercury electrolysis plant at Runcorn, United Kingdom. This provision is expected to be fully utilised by 2022.

Provisions for remediation activities at Wilhelmshaven, Germany of €3.4 million relate to the closure of the mercury cellroom in 2013. The provision is expected to be fully utilised by 2022.

Provisions of €0.5 million relates to the closure of the INOVYN business' specialised PVC recycling business at Ferrara, Italy. The provision is expected to be fully utilised by the end of 2021.

Costs of €0.4 million to cover redundancies, decontamination and decommissioning and utility reconfiguration costs relate to the closure of the chloromethanes asset in Runcorn, United Kingdom. This provision is expected to be fully utilised by 2021.

Other provisions

The other provisions mainly relate to a provision recognised for a liability to the previous shareholder, BASF, under prior legal agreements. In addition, other provisions contain provisions for guarantee and customer claims.

Other provisions of €2.8 million were acquired with the INOVYN business and relate to various miscellaneous legal claims and commercial disputes. The remaining €2.8 million is expected to be fully utilised by 2022.

23 OTHER FINANCIAL LIABILITIES

	2020	2019
	€m
Current
Derivative commodity contracts designated as fair value through the profit or loss (note 26)	13.0	2.1

24 SHARE CAPITAL AND DIVIDENDS

Share capital

	As at 31 December 2020	As at 31 December 2019
	€m
200,100 (2019: 200,100) issued Ordinary shares (pounds sterling) of £1.00 (2019: £1.00) each	0.3	0.3
6 (2019: 2) issued Ordinary shares (Euro) of €1.00 (2019: €1.00) each	-	-
	0.3	0.3

As the reporting currency of the Company is the Euro, share capital has been converted to Euros at the effective rate of exchange ruling at the date of issuance.

The Company issued two ordinary shares (Euro) on 31 December 2020 to INEOS Industries Holdings Limited in exchange for shares in INOVYN Limited. In addition, the Company issued a further two ordinary shares (Euro) on 31 December 2020, in exchange for equity funding of €814.3 million. Share premium of €4,230.7 million was recorded on these transactions.

On 15 January 2021, the Company cancelled two ordinary shares (Euro) as part of the reduction of share capital and share premium reduction exercise.

Dividends

The following dividends were recognised during the year:

	2020	2019
	€m
Dividends declared	369.3	582.2

An interim dividend of €369.3 million was declared and paid during the year (2019: €582.2 million declared). The dividend declared equates to €1,845.7 per Ordinary share (2019: €2,909.6 per Ordinary share).

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

25 MERGER RESERVE

A difference of €1,281.2 million between the predecessor value of the Group and the fair value recognised as the investment has been debited to a merger reserve for prior year acquisitions.

On 31 December 2020, the Group acquired 94.9% of the shares in INOVYN Limited, pursuant to a contribution agreement dated 24 July 2020 between INEOS Group Investments Limited, INEOS Industries Limited, INEOS Industries Holdings Limited, the Company and INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited), a subsidiary undertaking of the Company in exchange for €3,416.4 million. On 31 December 2020, €3,245.7 million was debited to a merger reserve, being the difference between the book value of the net assets acquired and the total consideration paid.

26 FINANCIAL INSTRUMENTS

The Group has exposure to the following risks arising from financial instruments:

•	credit risk
•	liquidity risk
•	market risk (including currency and interest rate risk)

This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies and processes for measuring and managing risk, and the Group's management of capital.

The Board of Directors have overall responsibility for the establishment and oversight of the Group's risk management framework. They are responsible for developing and monitoring the Group's risk management policies. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

26(a) Fair values of financial instruments

Trade and other receivables

The carrying amount of trade and other receivables generally approximates to fair value due to their short maturities. Where settlement is not due in the short-term and where the effect is material, fair value is estimated as the present value of future cash flows discounted at the market rate of interest at the reporting date.

Trade and other payables

The carrying amount of trade and other payables generally approximates to fair value due to their short maturities. Where settlement is not due in the short-term and where the effect is material, fair value is estimated as the present value of future cash flows discounted at the market rate of interest at the reporting date.

Cash and cash equivalents

The fair value of cash and cash equivalents is estimated as its carrying amount where the cash is repayable on demand. Where it is not repayable on demand then the fair value is estimated at the present value of future cash flows, discounted at the market rate of interest at the balance sheet date.

Interest-bearing borrowings

The fair value of the interest-bearing loans (excluding the securitisation facility, lease liabilities and related party loans) is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the balance sheet date. The fair value of the securitisation facilities is the same as the carrying value excluding debt issue costs. The fair value of lease liabilities is determined by reference to market rates for similar lease agreements. The fair value of the related party loans is the same as the carrying value.

Derivative financial instruments

The Group has entered into derivative financial instruments and the fair value is based on market or broker quotes.

Defined benefit pension plans

The fair value measurements of pension plan assets, and projected benefit obligations under these defined benefit plans are described in note 21.

The fair values for each class of financial assets and financial liabilities together with their carrying amounts shown in the consolidated balance sheet are as follows:

	2020		2019
	Carrying amount	Fair value	Carrying amount	Fair value
	€m
Financial assets held for trading at fair value through profit or loss:
Derivative commodity contracts	-	-	0.3	0.3
Financial assets held at amortised cost:
Trade receivables	1,188.2	1,188.2	452.2	452.2
Amounts due from related parties and associated undertakings	98.9	98.9	13.0	13.0
Other receivables (excluding prepayments and tax)	285.6	285.6	60.0	60.0
Other investments	17.3	17.3	-	-
Cash and cash equivalents	805.6	805.6	289.7	289.7
Total financial assets	2,395.6	2,395.6	815.2	815.2

	2020		2019
	Carrying amount	Fair value	Carrying amount	Fair value
	€m
Financial liabilities held for trading at fair value through profit or loss:
Derivative commodity contracts	13.0	13.0	2.1	2.1
Financial liabilities carried at amortised cost:
Dollar Bridge Facility	1,963.8	1,991.9	-	-
Euro Bridge Facility	853.1	870.0	-	-
Three-Year Dollar Term Loan A Facility	112.5	113.8	-	-
Five-Year Dollar Term Loan A Facility	168.7	170.7	-	-
Three-Year Euro Term Loan A Facility	117.1	120.0	-	-
Five-Year Euro Term Loan A Facility	178.1	180.0	-	-
Styrolution Euro Term Loan B facilities	446.7	446.7	437.4	437.4
Styrolution Dollar Term Loan B facilities	162.0	161.9	180.1	180.1
Styrolution Senior Secured Notes	595.6	578.5	-	-
INOVYN Senior Secured Term Loan B Facility	1,058.7	1,059.0	-	-
Securitisation facilities	(0.1)	-	190.0	190.0
Loan from related party	38.0	38.0	-	-
Other loans	17.1	17.1	7.5	7.5
Trade payables	1,041.9	1,041.9	385.6	385.6
Amounts due to related parties	191.6	191.6	48.3	48.3
Accruals and other payables (excluding deferred income)	559.3	559.3	183.9	183.9
Lease liabilities	312.3	312.3	146.2	146.2
Total financial liabilities	7,829.4	7,865.7	1,581.1	1,581.1

The table below analyses financial instruments carried at fair value, by valuation method. The different levels, determined in accordance with IFRS 13 "Fair Value Measurement", have been defined as follows:

•	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
•	Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
•	Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair values of all financial assets and financial liabilities by class together with their carrying amounts shown in the balance sheet are as follows:

	2020
	Level
	Fair value	1	2	3
	€m
Net financial assets and liabilities designated as fair value through profit or loss
Derivative commodity contracts	(13.0)	-	(11.5)	(1.5)
	(13.0)	-	(11.5)	(1.5)

	2019
	Level
	Fair value	1	2	3
	€m
Net financial assets and liabilities designated as fair value through profit or loss
Derivative commodity contracts	(1.8)	-	-	(1.8)
	(1.8)	-	-	(1.8)

The derivative commodity contracts have been assigned to Level 2 or Level 3. Level 2 contains foreign currency derivatives and Level 3 contains commodity derivatives. The fair value of derivatives is the value that the Group would receive or have to pay if the financial instrument were transferred to an external party at the reporting date.

All financial assets and liabilities are Level 3, other than cash and derivative commodity contracts which are Level 2.

The foreign currency derivative contracts have been assigned to Level 2 since there are no market prices available. The fair value of derivatives is the value that the Group would receive or have to pay if the financial instrument were transferred to an external party at the reporting date.

The Level 3 derivatives relate to commodity swaps on styrene monomer in order to hedge fix price forward polymer sales deals. Since there are no market prices available in the portfolio assigned to Level 3 as they are not listed on a market, the fair values are calculated using standard financial valuation models. The calculation is based on observable and unobservable inputs, since there are no liquid forward prices available.

There have been no transfers from one level to another during 2019 and 2020.

26(b) Net gains and losses from financial instruments

Net gains and losses from financial instruments comprise the results of valuations, the amortisation of debt issue costs, the recognition and derecognition of impairment losses, results from the translation of foreign currencies, interest, dividends and all effects on profit or loss of financial instruments.

Net gains from financial assets measured at amortised cost relate primarily to recognition and derecognition of impairment losses, results from the translation of foreign currencies and interest income.

Net losses from financial liabilities measured at amortised cost relate primarily to amortisation of debt issue costs, results from the translation of foreign currencies, interest expense and other financing related expenses.

The item 'financial instruments at fair value through profit or loss' comprise valuation gains and losses, and only includes gains and losses from instruments which are not designated as hedging instruments as defined by IFRS 9.

	2020
	Financial assets at amortised cost	Fair value recognised in profit or loss	Financial liabilities at amortised cost
	€m
Gains from financial instruments
Interest income	3.4	-	-
Foreign exchange gains	39.2	-	-
Net result	42.6	-	-
Carrying value at 31 December	2,395.6	-	-
Losses from financial instruments
Interest cost	-	--	(46.3)
Amortisation of debt issue costs	-	-	(2.6)
Net fair value gains on derivatives	-	0.4	-
Foreign exchange losses	-	-	(66.5)
Net result	-	0.4	(115.4)
Carrying value at 31 December	-	(13.0)	(7,816.4)

	2019
	Financial assets at amortised cost	Fair value recognised in profit or loss	Financial liabilities at amortised cost
	€m
Gains from financial instruments
Interest income	12.9	-	-
Foreign exchange gains	15.1	-	-
Net result	28.0	-	-
Carrying value at 31 December	814.9	0.3	-
Losses from financial instruments
Interest cost	-	-	(36.5)
Amortisation of debt issue costs	-	-	(0.3)
Net fair value gains on derivatives	-	4.4	-
Foreign exchange losses	-	-	(10.3)
Net result	-	4.4	(47.1)
Carrying value at 31 December	-	(2.1)	(1,579.0)

26(c) Credit risk

Financial risk management

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's receivables from customers, deposits with financial institutions and amount owed to Group undertakings.

The Group's treasury policy and objectives in relation to credit risk is to minimise the likelihood that the Group will experience financial loss due to counterparty failure and to ensure that in the event of a single loss, the failure of any single counterparty would not materially impact the financial wellbeing of the Group.

Trade and other receivables

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group's customer base, including the default risk of the industry and country in which customers operate, as these factors may have an influence on credit risk. Management considers that there is no geographical concentration of credit risk. The Group has established a credit policy under which each new customer is analysed individually for creditworthiness before the Group's standard payment and delivery terms and conditions are offered or are adjusted accordingly. The Group's review includes external ratings, when available, and in some cases bank references. Purchase limits are established for each customer, which represent the maximum open amount without requiring approval. Customers that fail to meet the Group's benchmark creditworthiness may transact with the Group only on a prepayment basis. No single customer accounts for more than 5% of revenue.

Investments, cash and cash equivalents

Surplus cash investments are only made with banks with which the Group has a relationship. Occasionally deposits are made with banking counterparties that provide financing arrangements, reducing the credit exposure of the Group.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. Therefore, the maximum exposure to credit risk at the reporting date was the carrying amount of financial assets. Further details on the Group's exposure to credit risk, and the associated impairments recognised, are given in note 16.

26(d) Liquidity risk

Financial risk management

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group. The Group's exposure to liquidity risk is limited by the fact that it operates with significant cash resources, it maintains the most appropriate mix of short, medium and long-term borrowings from the Group's lenders and has significant headroom on the securitisation facilities (see note 18).

The Group is reliant on committed funding from a variety of sources at Group and subsidiary company level to meet the anticipated needs of the Group for the period covered by the Group's budget.

The Group forecasts on a regular basis the expected cash flows that will occur on a weekly and monthly basis. This information is used in conjunction with the weekly reporting of actual cash balances at bank in order to calculate the level of funding that will be required in the short and medium term. On a monthly basis the level of headroom on existing facilities is reported and forecast forward until the end of the financial year.

The maturity profile of the Group's undrawn committed facilities at 31 December 2020 and 2019 was as follows:

	2020	2019
	Undrawn facilities	Undrawn facilities
	€m
In less than one year	690.0	-
In more than one year, but not more than two years	-	260.0
In more than two years, but not more than five years	243.9	-
	933.9	260.0

The undrawn committed facilities of €690.0 million (2019: €260.0 million) are in respect of the unused securitisation facilities. The maturity date of the securitisation facilities is 30 June 2021 for the INOVYN securitisation facility and 10 July 2021 for the Styrolution securitisation facility. The undrawn committed facilities of €243.9 million (2019: €nil) are in respect of the $300.0 million Revolving Credit Facility; the maturity date for this facility is 31 July 2023.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the effect of netting agreements:

	2020
	Carrying amount	Contractual cash flows	1 year or less
	€m
Non-derivative financial liabilities
Dollar Bridge Facility	1,963.8	(1,997.7)	(1,997.7)
Euro Bridge Facility	853.1	(872.5)	(872.5)
Three-Year Dollar Term Loan A Facility	112.5	(120.5)	(31.9)
Five-Year Dollar Term Loan A Facility	168.7	(193.5)	(5.6)
Three-Year Euro Term Loan A Facility	117.1	(124.7)	(32.9)
Five-Year Euro Term Loan A Facility	178.1	(208.9)	(6.3)
Styrolution Euro Term Loan B facilities	446.7	(518.6)	(11.4)
Styrolution Dollar Term Loan B facilities	162.0	(184.8)	(5.4)
Styrolution Senior Secured Notes	595.6	(681.0)	(13.5)
Revolving Credit facility	-	(5.3)	(2.2)
INOVYN Senior Secured Term Loan B Facility	1,058.7	(1,231.3)	(27.0)
Securitisation facilities	(0.1)	(1.7)	(1.7)
Loan from related party	38.0	(47.4)
Other loans	17.1	(18.5)	(9.4)
Trade payables	1,041.9	(1,041.9)	(1,041.9)
Amounts due to related parties	191.6	(191.6)	(191.6)
Accruals and other payables (excluding deferred income)	559.3	(559.3)	(529.4)
Lease obligations	312.3	(377,7)	(86.4)
Derivative financial liabilities
Commodity contracts	13.0	(13.0)	(13.0)
	7,829.4	(8,389.9)	(4,879.8)

	2020
	1 to 2 years	2 to 5 years	5 years and over
	€m
Non-derivative financial liabilities
Dollar Bridge Facility	-	-	-
Euro Bridge Facility	-	-	-
Three-Year Dollar Term Loan A Facility	(59.4)	(29.2)	-
Five-Year Dollar Term Loan A Facility	(5.2)	(182.7)	-
Three-Year Euro Term Loan A Facility	(61.5)	(30.3)	-
Five-Year Euro Term Loan A Facility	(6.3)	(196.3)	-
Styrolution Euro Term Loan B facilities	(11.4)	(34.3)	(461.5)
Styrolution Dollar Term Loan B facilities	(5.3)	(15.7)	(158.4)
Styrolution Senior Secured Notes	(13.5)	(40.5)	(613.5)
Revolving Credit facility	(2.0)	(1.1)	-
INOVYN Senior Secured Term Loan B Facility	(27.1)	(80.9)	(1,096.3)
Securitisation facilities	-	-	-
Loan from related party	-	-	(47.4)
Other loans	(8.9)	(0.2)	-
Trade payables	-	-	-
Amounts due to related parties	-	-	-
Accruals and other payables (excluding deferred income)	(19.3)	(9.3)	(1.3)
Lease obligations	(62.7)	(90.8)	(137,8)
Derivative financial liabilities
Commodity contracts	-	-	-
	(282.6)	(711.3)	(2,516.2)

	2019
	Carrying amount	Contractual cash flows	1 year or less
	€m
Non-derivative financial liabilities
Styrolution Euro Term Loan B facilities	437.4	(484.4)	(15.5)
Styrolution Dollar Term Loan B facilities	180.1	(209.2)	(9.8)
Other loans	7.5	(7.5)	(7.5)
Securitisation facilities	190.0	(190.0)	(190.0)
Trade payables	385.6	(385.6)	(385.6)
Amounts due to related parties	48.3	(48.3)	(48.3)
Accruals and other payables (excluding deferred income)	183.9	(183.9)	(167.5)
Lease obligations	146.2	(193.9)	(27.4)
Derivative financial liabilities
Commodity contracts	2.1	(2.1)	(2.1)
	1,581.1	(1,704.9)	(853.7)

	2019
	1 to 2 years	2 to 5 years	5 years and over
	€m
Non-derivative financial liabilities
Styrolution Euro Term Loan B facilities	(15.4)	(453.5)	-
Styrolution Dollar Term Loan B facilities	(9.8)	(189.6)	-
Other loans	-	-
Securitisation facilities	-	-	-
Trade payables	-	-	-
Amounts due to related parties	-	-	-
Accruals and other payables (excluding deferred income)	(10.9)	(5.5)	-
Lease obligations	(22.8)	(55.9)	(87.8)
Derivative financial liabilities
Commodity contracts	-	-	-
	(58.9)	(704.5)	(87.8)

26(e) Market risk

Financial risk management

Market risk reflects the possibility that changes in market prices, such as foreign exchange rates, interest rates, crude oil, key feedstocks and raw materials will adversely affect the value of the Group's assets, liabilities or expected future cash flows. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Market risk - Foreign currency risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US Dollar, Sterling, Norwegian Krone and Swedish Krona. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

A substantial portion of the Group's revenue is generated in, or linked to, Sterling, US dollars and the Euro. Product prices, certain feedstock costs and most other operating costs are denominated in US Dollar, Sterling, Euro, Norwegian Krone and Swedish Krona. In the US petrochemical and specialty chemicals businesses, product prices, raw materials costs and most other costs are primarily denominated in US Dollars.

The group applies hedge accounting to foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign operation. When the settlement of a monetary item receivable from or payable to a foreign operations is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary items is considered to form part of a net investment in a foreign operation and changes to the fair value are recognised directly within equity.

The Group generally does not enter into foreign currency exchange instruments to hedge foreign currency transaction exposure, although the Group may do so in the future.

The Group benefits from natural hedging, to the extent that currencies in which net cash flows are generated from the Group's operations, are matched against long-term indebtedness.

The foreign currency exposure where the Group's financial assets / (liabilities) are not denominated in the functional currency of the operating unit involved is shown below. Foreign exchange differences on retranslation of these assets and liabilities are taken to the income statement of the Group.

	2020	2019
	€m
Euros	9.7	3.2
Pounds Sterling	5.8	0.2
US Dollars	97.3	126.4
Norwegian Krone	4.4	-
Others	(27.5)	(35.3)
	89.7	94.5

Sensitivity analysis

A 10% per cent weakening of the following currencies at 31 December 2019 and 31 December 2020 would have increased/(decreased) equity and profit or loss by the amounts shown below. This calculation assumes that the change occurred at the reporting date and had been applied to risk exposures existing at that date.

This analysis assumes that all other variables, in particular other exchange rates and interest rates, remain constant. The analysis is performed on the same basis for the comparative year.

	2020	2019	2020	2019
	Equity		Profit or loss
	€m
Euros		-	16.1	(1.6)
Pounds Sterling	-	-	4.4	-
Norwegian Krone	-	-	(8.8)	(11.5)
US Dollars	-	-	(0.3)	-
Other	-	-	2.6	3.2

A 10% per cent strengthening of the above currencies against the Euro at 31 December 2019 and 31 December 2020 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

(ii) Market risk - Interest rate risk

Profile

At the reporting date the interest rate profile of the Group's interest-bearing financial instruments was:

	2020	2019
	€m
Fixed rate instruments
Financial liabilities	(945.9)	(146.2)
	(945.9)	(146.2)
Variable rate instruments
Financial assets	805.6	289.7
Financial liabilities	(5,077.7)	(815.0)
	(4,272.1)	(525.3)

Sensitivity analysis

A change of 1% in interest rates at the reporting date would have increased equity and profit or loss by the amounts shown below. This calculation assumes that the change occurred at the reporting date and had been applied to risk exposures existing at that date.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant and considers the effect of financial instruments with variable interest rates and financial instrument at fair value through profit or loss. The analysis is performed on the same basis for 2020 and 2019.

Profit or (loss)	2020	2019
	€m
Increase in interest rates by 1%	(42.7)	(3.8)

A 1% change in the opposite direction of the above interest rates at 31 December 2019 and 31 December 2020 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

(iii) Market risk-Commodity price risk

This section discusses the Group's exposure to the commodity contracts which are not covered under the own use exemption and are recognised as derivative instruments.

The Group is exposed to commodity price risk through fluctuations in raw material prices and sales of products. The raw material exposures result primarily from the price of feedstocks, electricity and base chemicals linked to the price of crude. The sales price exposures are primarily related to petrochemicals where prices are in general linked to the market price of crude oil.

The Group enters into contracts to supply or acquire physical volumes of commodities at future dates during the normal course of business that may be considered derivative contracts. Where such contracts exist and are in respect of the normal purchase or sale of products to fulfil the Group's requirements, the own use exemption from derivative accounting is applied.

The Group in some circumstances enters into swap contracts to acquire physical volumes of commodities at future dates which are not covered under the own use exemption and are recognised as derivative instruments. Derivative commodity contracts designated as fair value through profit or loss are disclosed in notes 13 and 23.

The Group operates within procedures and policies designed to ensure that risks, including those relating to the default of counterparties, are minimised.

26(f) Capital management

The Group's objectives for managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Group defines its capital employed of €7,645.3 million (2019: €2,500.3 million) as equity attributable to the owners of the Company of €2,671.9 million (2019: €1,973.7 million) and net debt (total gross loans and borrowings less cash and cash equivalents) of €4,973.4 million (2019: €526.6 million).

The principal sources of debt available to the Group at 31 December 2020 are described in note 18 along with the key operating and financial covenants that apply to these facilities.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares, raise new debt or sell assets to reduce debt. The ability of the Group to pay dividends and provide appropriate facilities to the Group is restricted by the terms of principal financing agreements to which members of the Group are party.

27 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

	2020	2019
	€m
Increase/(decrease) in cash and cash equivalents in the year	531.4	(278.6)
Cash outflow from change in debt financing	(3,927.2)	(108.3)
Change in net debt resulting from cash flow	(3,395.8)	(386.9)
Acquisitions	(1,119.9)	-
Other net non-cash transactions	68.9	5.9
Movement in net debt in the year	(4,446.8)	(381.0)

	2020
	1 January 2020	Cash flow	Acquisitions ^*	Other non-cash changes	31 December 2020
	€m
Cash at bank and in hand	289.7	531.4	-	(15.5)	805.6
Debt due within one year	(14.8)	(2,971.0)	(8.7)	64.1	(2,930.4)
Debt due after more than one year	(801.5)	(956.2)	(1,111.2)	20.3	(2,848.6)
	(816.3)	(3,927.2)	(1,119.9)	84.4	(5,779.0)
Net debt	(526.6)	(3,395.8)	(1,119.9)	68.9	(4,973.4)

^* Excludes cash

Following the application of IFRS 16 Leases on 1 January 2019, all lease liabilities have been excluded from the definition of net debt.

	2019
	1 January 2019	Cash flow	Other non-cash changes	31 December 2019
	€m
Cash at bank and in hand	567.1	(278.6)	1.2	289.7
Debt due within one year	(38.7)	31.7	(7.8)	(14.8)
Debt due after more than one year	(665.2)	(140.0)	3.7	(801.5)
Finance leases	(8.8)	-	8.8	-
	(712.7)	(108.3)	4.7	(816.3)
Net debt	(145.6)	(386.9)	5.9	(526.6)

28 OTHER COMMITMENTS

Capital commitments

Outstanding capital expenditure on property, plant and equipment authorised by the directors of Group companies and for which contracts had been placed as at 31 December 2020 by the Group amounted to approximately €166.3 million (2019: €199.9 million).

Other commitments

During the ordinary course of business, the Group enters into purchase contracts to acquire raw materials, energy, other utilities, maintenance and site services, storage and logistics services. These contracts are for obligations to make cash payments into the future upon receipt of these products or services. These are not recorded on the balance sheet as the products or services fall due for delivery in the future.

29 CONTINGENCIES

The Group companies are and may from time to time be involved in proceedings or litigation arising in the ordinary course of business. Management does not believe that the ultimate resolution of these matters will materially affect the Group's financial condition or results of operations.

30 RELATED PARTIES

Related parties comprise:

•	Parent entities and their subsidiaries not included within the INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) group
•	Entities controlled by the shareholders of INEOS Limited, the ultimate parent company of INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited)
•	Key management personnel
•	Jointly controlled entities and associated undertakings held by INEOS Limited (and their subsidiaries)
•	Jointly controlled entities and associated undertakings held within the INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) group.

Mr J A Ratcliffe, Mr A C Currie and Mr J Reece are shareholders in INEOS Limited.

Parent entities and their subsidiaries not included within the INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) group

Material trading and non-trading transactions by the Group with the entities controlled by INEOS Limited are as follows:

	2020		2019
	Transaction value	Balance outstanding	Transaction value	Balance outstanding
	€m
Sale of products	53.6	-	69.7	-
Purchase of raw materials	235.2	-	347.3	-
Services received	41.8	-	43.0	-
Trade and other receivables	-	59.5	-	13.0
Trade and other payables	-	(131.8)	-	(48.3)
Interest-bearing loans and borrowings	-	(38.0)	-	-

Included within services above is a management fee paid to INEOS Limited of €11.3 million (2019: paid to INEOS AG of €11.1 million). No amounts remained outstanding at the year-end (2019: €nil).

In general, all outstanding balances with INEOS companies are priced based on contractual arrangements and are to be settled in cash within two months of the reporting date, with the exception of the interest-bearing loans and borrowings. None of the balances are secured. The transactions were made on terms equivalent to those that prevail in arm's length transactions. There were no provisions for doubtful debt related to these entities as at 31 December 2020 (2019: €nil).

The interest bearing loan is an unsecured loan due to INEOS Enterprises Holdings Limited. The loan bears interest at a rate of 4.5%. There is no formal repayment date under the loan agreement.

Entities controlled by the shareholders of INEOS Limited

The shareholders of INEOS Limited own a controlling interest in the share capital of INEOS Limited and Screencondor Limited. During the year ended 31 December 2020, the Group made no sales or purchases with these companies (2019: €nil). As at 31 December 2020, amounts owed by Screencondor Limited were € 1.2 million (2019: €nil).

Jointly controlled entities and associated undertakings held within the INEOS Limited group and jointly controlled entities and associated undertakings held within the INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) group.

Material trading and non-trading transactions with these entities during the period were as follows:

	2020		2019
	Transaction value	Balance outstanding	Transaction value	Balance outstanding
	€m
Sale of products	-	-	-	-
Purchase of raw materials	-	-	-	-
Services received	-	-	-	-
Trade and other receivables	-	20.3	-	-
Loans receivable	-	17.9	-	-
Trade and other payables	-	(59.8)	-	-

In general, all outstanding balances with these related parties are priced based on contractual arrangements and are to be settled in cash within two months of the reporting date with the exception of the interest-bearing loans and borrowings. None of the balances are secured. The transactions were made on terms equivalent to those that prevail in arm's length transactions. There were no provisions for doubtful debt related to these entities as at 31 December 2020 (2019: €nil).

Transactions with key management personnel

Key management personnel are directors and other members of the executive committee representing the business segments. The compensation of key management personnel including the directors is as follows:

	2020	2019
	€m
Short-term employee benefits	4.7	4.5
Post-employment benefits	0.2	0.2
Other long-term benefits	2.1	1.5
	7.0	6.2

31 ULTIMATE PARENT COMPANY AND PARENT COMPANY OF LARGER GROUP

The immediate parent company of the Company is INEOS Industries Holdings Limited.

The ultimate parent undertaking of the Company is INEOS Limited, a company incorporated in the Isle of Man. The directors regard Mr J A Ratcliffe as the ultimate controlling party by virtue of his majority shareholding in INEOS Limited.

The largest group in which the results of the Company are consolidated is that headed by INEOS Industries Limited. Copies of the financial statements can be obtained from the company secretary at the registered office, INEOS Industries Limited, Hawkslease, Chapel Lane, Lyndhurst, Hampshire, SO43 7FG.

32 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The Group prepares its consolidated financial statements in accordance with adopted IFRSs, which require management to make judgements, estimates and assumptions which affect the application of the accounting policies, and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The following areas are considered to involve a significant degree of judgement or estimation.

Critical judgements in applying the Group's accounting policies

The following areas are considered to involve a significant degree of judgement:

Fair value measurement on business combination

The amount of goodwill initially recognised as a result of a business combination is dependent on the allocation of the purchase price to the fair value of the identifiable assets and liabilities acquired. The determination of the fair value of the acquired assets and liabilities is to a considerable extent based upon management's judgement, and estimates and assumptions made.

Allocation of the purchase price affects the results of the Group as intangible assets are amortised over their estimated useful lives, whereas goodwill, is not amortised. This could lead to differing amortisation charges based on the allocation to indefinite and finite lived intangible assets.

On acquisition of a business, the identifiable intangible assets may include customer contracts, customer relationships and preferential supply contracts. The fair value of these assets is determined by discounting estimated future net cash flows generated by the asset. The use of different estimates and assumptions for the expectations of future cash flows and the discount rate would change the valuation of these intangible assets.

The carrying amount of intangibles is disclosed in note 11.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.

Impairment tests for goodwill and other non-financial assets

Goodwill impairment testing is performed annually or of there is an indication of impairment. Goodwill impairment tests are based on cash generating units and compare the recoverable amount of the unit with the respective carrying amount. The recoverable amount of an asset or cash generating unit is the higher of its fair value less costs of disposal and its value in use. The value in use is determined using a discounted cash flow method, considering earnings forecast of the unit. The management of the Group identified the operating segments as cash generating units ("CGUs") for the purposes of testing goodwill for impairment. Each unit or group of units to which goodwill is allocated to shall represent the lowest level within the entity at which the goodwill is monitored for internal management purposes. The goodwill is internally monitored at the level of business units.

Intangible assets other than goodwill assets and property, plant and equipment are generally valued at cost less amortisation. Impairment losses on intangible assets and property, plant and equipment are recognised when the recoverable amount of the cash generating unit which includes the asset is lower than the respective carrying amount. In accordance with the definition of a cash generating unit under IAS 36, the individual production plants generally do not represent separate cash generating units, but are part of larger asset groups that form the cash generating units.

Since assessment whether goodwill or a non-financial asset is impaired is based on long-term business plans for the cash generating units and the determination of an appropriate discount rate, management uses significant estimates and assumptions in making these assessments. Details on the estimates used for the goodwill impairment test are disclosed in note 11. The Group currently has significant headroom across all its business segments, but monitors the principal risk and uncertainties set out in the Strategic Report when assessing its business. A reasonable possible change in a key assumption would not cause a CGU's carrying amount to exceed its recoverable amount and an impairment to be required.

Determination of the lease term of contracts with renewal options

The Group determines the lease terms as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has the option, under some of its leases to lease the assets for additional terms. The Group applies judgment in evaluating whether it is reasonably certain to exercise the option to renew.

Taxation

Management is required to estimate the tax payable in each of the jurisdictions in which the Group operates. This involves estimating the actual current tax charge or credit together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. The calculation of the Group's total tax charge necessarily involves a significant degree of estimation in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority, or, as appropriate, through a formal legal process.

The Group has, from time to time, contingent tax liabilities arising from trading and corporate transactions in the countries in which it operates. After appropriate consideration, management makes provision for these liabilities based on the probable level of economic loss that may be incurred and which is reliably measurable.

The breadth of the Group's structure with operations in many geographic locations makes the use of estimates and assumptions more challenging. The resolution of issues is not always within the control of the Group and can be reliant upon the efficiency of the legal processes in the relevant jurisdictions in which the Group operates, and as a result, issues can, and often do take many years to resolve.

Details of amounts recognised with regard to taxation are disclosed in notes 9 and 14. Note 9 shows tax adjustments in respect of prior years of credit of €3.6 million (2019: charge of €5.5 million).

Post-retirement benefits

The Group operates a number of defined benefit post-employment schemes. Under IAS 19 Revised "Employee Benefits", management is required to estimate the present value of the future defined benefit obligation of each of the defined benefit schemes. The costs and year end obligations under defined benefit schemes are determined using actuarial valuations. The actuarial valuations involve making numerous assumptions, including:

•	Future rate of increase in salaries;
•	Inflation rate projections,
•	Discount rate for scheme liabilities,
•	Expected rates of return on the scheme assets.

Details of post-retirement benefits are set out in note 21.

Provisions

Provisions are recognised for the cost of remediation works where there is a legal or constructive obligation for such work to be carried out. Where the estimated obligation arises upon initial recognition of the related asset, the corresponding debit is treated as part of the cost of the related asset and depreciated over its estimated useful life.

Other provisions are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events that can be reasonably estimated. The timing of recognition requires the application of judgement to existing facts and circumstances, which can be subject to change.

Estimates of the amounts of provisions recognised are based on current legal and constructive requirements, technology and price levels. Because actual outflows can differ from estimates due to changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes.

In relation to remediation costs, the estimated interest rate used in discounting the cash flows is reviewed at least annually. The interest rates used to determine the obligation in the balance sheet at 31 December 2019 and 31 December 2020 are risk free pre-tax rates, based on country specific government bond yields. The nature and amount of provisions included within the financial statements are detailed in note 22.

33 SUBSEQUENT EVENTS

Refinancing

Subsequent to the year end, on 29 January 2021, the Group issued €800.0 million 2½% Euro Senior Secured Notes due 2026, $500.0 million (€406.5 million equivalent) 3⅜% Dollar Senior Secured Notes due 2026 and €500.0 million 3¾% Euro Senior Notes due 2026. In addition, the Group entered into a new Dollar Term Loan B Facility of $2,000.0 million (€1,626.0 million equivalent) and a new Euro Term Loan B Facility of €1,500.0 million. The gross proceeds received under these borrowings were used to (i) repay the amounts outstanding under the Bridge Facility, the Five- Year Euro Term Loan A Facility, the Senior Secured Term Loan B Facility that was acquired with the INOVYN business and repay the Equity Bridge Contribution in the form of a dividend to the Company's shareholder and (ii) to pay certain fees and expenses related to these transactions.

Financing arrangements

On 28 June 2021, the Group renegotiated its historic trade receivables securitisation programme that was in the Styrolution business. A further three banks have joined the programme, with the total number of lending banks now at 5. The maximum amount available under the securitisation programme will increase from €450.0 million to €600.0 million as soon as three new selling entities from the Aromatics and Acetyls business join the programme. The facility now matures on 28 June 2024. For drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was between 0.80% and 0.95%). For undrawn amounts, the facility bears interest of 0.5%.

On 28 June 2021, the Group renegotiated its trade receivables securitisation programme that was acquired with the INOVYN business. The maximum amount available under the securitisation programme remained the same at €240.0 million. The facility now matures on 30 June 2024. The interest rates were also reduced and, for drawn amounts, the revised facility bears interest at a rate equal to the cost to the lenders of issuing Commercial Paper plus a margin of 0.95% (previously the margin was 1.1%), except that if any lending is funded other than by issuing Commercial Paper then the applicable interest rate is SONIA / SOFR plus 0.95% (previously the margin was 1.1%). For undrawn amounts, the facility bears interest of 0.5%.

Section 3 - Company Financial Statements

COMPANY'S PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

	Note	2020	2019
		€m
Administrative expenses		(0.3)	(0.2)
Operating loss	2	(0.3)	(0.2)
Income from shares in group undertakings	4	369.7	582.5
Interest receivable and similar income	5	-	7.3
Interest payable and similar expenses	6	-	(7.3)
Profit before taxation		369.4	582.3
Tax on profit	7	-	-
Profit for the financial year		369.4	582.3

All activities of the Company relate to continuing operations.

The Company has no recognised other comprehensive income and therefore no separate statement of other comprehensive income has been presented.

COMPANY'S BALANCE SHEET AS AT 31 DECEMBER 2020

	Note	2020	2019
		€m
Fixed assets
Investments	8	6,620.8	2,390.0
Current assets
Debtors: amounts due after more than one year	9	16.2	-
Cash and cash equivalents		0.4	0.3
Total current assets		16.6	0.3
Current liabilities
Interest-bearing loans and borrowings	10	(0.1)	-
Trade and other payables	11	(0.1)	(0.1)
Total current liabilities		(0.2)	(0.1)
Net current assets		16.4	0.2
Total assets less current liabilities		6,637.2	2,390.2
Non-current liabilities
Interest- bearing loans and borrowings	10	(16.2)	-
Net assets		6,621.0	2,390.2
Capital and reserves
Called up share capital	12	0.3	0.3
Share premium account	12	6,620.4	2,389.7
Profit and loss account		0.3	0.2
Total shareholder's funds		6,621.0	2,390.2

The financial statements on pages 106 to 119 were approved by the Board of Directors on 28 June 2021 and were signed on its behalf by:

INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited)

M J Maher, Director

Registered number: 09922632

COMPANY'S STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2020

	Called up share capital	Share premium account	Profit and loss account	Total shareholder's funds
	€m
Balance at 1 January 2019	0.3	2,389.7	0.1	2,390.1
Profit and total comprehensive income for the financial year	-	-	582.3	582.3
Transactions with owners, recorded directly in equity: Dividends (note 12)	-	-	(582.2)	(582.2)
Total contributions by and distributions to owners.	-	-	(582.2)	(582.2)
Balance at 31 December 2019	0.3	2,389.7	0.2	2,390.2
Profit and total comprehensive income for the financial year	-	-	369.4	369.4
Transactions with owners, recorded directly in equity:
Issue of shares (note 12)	-	4,230.7	-	4,230.7
Dividends (note 12)	-	-	(369.3)	(369.3)
Total contributions by and distributions to owners.	-	4,230.7	(369.3)	3,861.4
Balance at 31 December 2020	0.3	6,620.4	0.3	6,621.0

NOTES TO THE COMPANY'S FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES

INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) ("the Company") is a private company, limited by shares, incorporated in the United Kingdom, registered in England and Wales and has its registered office at Hawkslease, Chapel Lane, Lyndhurst, Hampshire, United Kingdom, SO43 7FG.

These financial statements present information about the Company as an individual undertaking and not about its group.

1.1 Basis of preparation

The financial statements have been prepared in accordance with applicable accounting standards, on a going concern basis and under the historical cost accounting rules.

These financial statements were prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework ("FRS 101") and the Companies Act 2006.

The consolidated financial statements of INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited) are prepared in accordance with International Financial Reporting Standards. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 101 in respect of the following disclosures:

•	Cash Flow Statement and related notes;
•	Disclosures in respect of transactions with wholly owned subsidiaries;
•	Disclosures in respect of capital management;
•	Financial instrument disclosures as required by IFRS 7;
•	The effects of new but not yet effective IFRSs;
•	Comparative information for fixed asset reconciliations, and
•	Disclosures in respect of the compensation of Key Management Personnel.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Company financial statements.

1.2 Measurement convention

The financial statements are prepared on the historical cost basis. No assets or liabilities are stated at fair value.

1.3 Functional and presentation currency

These company financial statements are presented in Euros, which is the functional currency of the majority of operations.

1.4 Investments

Investments in subsidiary undertakings are carried at the cost to the Company (being the fair value of the shares acquired) less any impairment.

1.5 Impact of new standards and interpretations

There are no amendments to accounting standards that are effective for the year ended 31 December 2020 which have had a material impact on the Company.

1.6 Foreign currency

Foreign currency transactions are translated into the local currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account, except when deferred in reserves as qualifying net investment hedges.

1.7 Non-derivative financial instruments

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.

Trade and other receivables

Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances, call deposits with maturities of three months or less from the acquisition date and money market funds that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. Pledged balances on accounts used for payment transactions related to the securitisation of receivables are classified as cash. The amount of these balances is disclosed in the notes.

Trade and other payables

Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Investments in debt and equity securities

Investments in loans and receivables are stated at amortised cost less impairment.

Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method.

Share capital (ordinary shares)

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

1.8 Impairment

Financial assets (including receivables)

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

1.9 Expenses

Finance cost

Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.

1.10 Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following timing differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the timing difference can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

2 OPERATING LOSS

The audit fee for the parent company for the year ended 31 December 2020 was €10,000 (2019: €10,000) and was borne by a fellow group undertaking.

3 STAFF NUMBERS AND COSTS

The Company had no employees, other than the directors, during the year ended 31 December 2020 (2019: none).

No directors received any fees or remuneration in respect of their services as a director of the Company during the year ended 31 December 2020 (2019: €nil).

4 INCOME FROM SHARES IN GROUP UNDERTAKINGS

During 2020 the Company received total dividends of €369.7 million (2019: €582.5 million) from INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited).

5 INTEREST RECEIVABLE AND SIMILAR INCOME

	2020	2019
	€m
Interest receivable from parent undertaking	-	7.3

6 INTEREST PAYABLE AND SIMILAR EXPENSES

	2020	2019
	€m
Interest payable from subsidiary undertaking	-	7.3

7 TAX ON PROFIT

Recognised in the profit and loss account

	2020	2019
	€m
UK Corporation tax:
Total current tax charge	-	-

Reconciliation of effective tax rate

	2020	2019
	€m
Total tax charge	-	-
Profit before taxation	369.4	582.3
Tax using the UK corporation tax rate of 19.0% (2019: 19.0%)	70.2	110.6
Tax exempt income	(70.2)	(110.6)
Total tax charge	-	-

The Finance Bill 2020 was substantively enacted on 17 March 2020 and included legislation to maintain the main rate of corporation tax in the UK at 19%. On 11 March 2021, the Finance Bill 2021 was announced in the United Kingdom, which increased the rate of corporation tax to 25% on profits over £250,000 from April 2023.

8 INVESTMENTS

Cost and net book value	Shares in group undertakings
	€m
At 1 January 2020	2,390.0
Acquisitions	4,230.8
At 31 December 2020	6,620.8

The Company has the following investments in subsidiaries:

Company	Country of incorporation	Principal activity	Class of shares held
INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) ^#	UK	Holding company	Ordinary
INEOS Quattro Finance 1 plc ^#	UK	Financing company	Ordinary
INEOS Quattro Finance 2 plc ^#	UK	Financing company	Ordinary
INEOS Styrolution Investment GmbH ^(d)	Germany	Holding company	Ordinary
INEOS Styrolution Holding GmbH ^(d)	Germany	Holding company	Ordinary
INEOS Styrolution America LLC	USA	Manufacture of styrene monomer and polymers, selling, distribution	Members interest
INEOS Styrolution Belgium NV	Belgium	Manufacture of styrene monomer and polymers	Ordinary
INEOS Styrolution Belgium Services bvba	Belgium	Sales office	Ordinary
INEOS Styrolution Beteiligungs GmbH ^(a)(d)	Germany	Non trading	Ordinary
INEOS Styrolution Canada Ltd	Canada	Manufacture of styrene monomer	Common
INEOS Styrolution (China) Investment Co. Ltd...	China	Financing company	Registered capital
INEOS Styrolution do Brasil Polimeros Ltda.	Brazil	Sales office	Equity /Ordinary
INEOS Styrolution Hong Kong Company Limited	Hong Kong	Sales office	Ordinary
INEOS Styrolution Europe GmbH ^(d)	Germany	Distribution company	Ordinary
INEOS Styrolution France SAS	France	Manufacture of polymers	Ordinary
INEOS Styrolution France Services SAS	France	Sales office	Ordinary
INEOS Styrolution Group GmbH ^(d)	Germany	Holding company	Ordinary
INEOS Styrolution Iberia S.L.	Spain	Sales office	Ordinary
INEOS Styrolution India Limited ^(e)	India	Manufacture of polymers	Equity
INEOS Styrolution Switzerland SA	Switzerland	Distribution company	Ordinary
INEOS Styrolution Italia S.r.L.	Italy	Sales office	Ordinary
INEOS Styrolution Kimyasal Ürünler Ticaret Limited Sirketi	Turkey	Sales office	Ordinary
INEOS Styrolution Köln GmbH ^(d)	Germany	Manufacture of polymers	Ordinary
INEOS Styrolution Korea Ltd	South Korea	Manufacture of polymers	Common
KR Copolymer Co. Ltd	South Korea	Manufacture of K-Resin	Ordinary
INEOS Styrolution Ludwigshafen GmbH ^(d)	Germany	Manufacture of polymers	Ordinary
INEOS Styrolution Mexicana, S.A. de C.V.	Mexico	Manufacture of polymers	Ordinary
INEOS Styrolution Netherlands B.V.	Netherlands	Sales office	Ordinary
INEOS Styrolution OOO.	Russia	Sales office	Charter capital
INEOS Styrolution Poland Sp. z o.o	Poland	Sales office	Ordinary
INEOS Styrolution Polymers (Foshan) Co. Ltd.	China	Manufacture of polymers	Registered capital
INEOS Styrolution Polymers (Ningbo) Co. Ltd.	China	Manufacture of polymers	Registered capital
INEOS Styrolution Advanced Materials (Ningbo) Pte Ltd.	China	Manufacture of ABS (under construction)	Registered capital
INEOS Styrolution Polymers (Shanghai) Co. Ltd.	China	Sales office	Registered capital
INEOS Styrolution Schwarzheide GmbH ^(d)	Germany	Manufacture of polymers	Ordinary
INEOS Styrolution Servicios, S.A. de C.V	Mexico	Service company	Ordinary
INEOS Styrolution APAC Pte Ltd	Singapore	Sales office	Ordinary
INEOS Styrolution UK Limited	UK	Sales office	Ordinary
INEOS Styrolution US Holding LLC.	USA	Holding company	Member interest
INEOS Styrolution Verwaltungsgesellschaft mbH.	Germany	Financing company	Ordinary
INEOS Styrolution (Thailand) Co., Ltd.	Thailand	Manufacture of polymers	Ordinary
INEOS Styrolution Vietnam Co., Ltd.	Vietnam	Sales office	Charter Capital
Deutsche Bank Mexico F/1787 Styrolution	Mexico	Securitisation vehicle	n/a
INEOS Styrolution Receivables Finance Designated Activity Company	Ireland	Securitisation vehicle	n/a
INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited)	UK	Holding company	Ordinary
INEOS Acetyls UK Limited (formerly INEOS 256 GB Limited)	UK	Production of acetic acid and other acetyls products	Ordinary
INEOS Acetyls International Limited (formerly INEOS 287 Limited)	UK	Holding company	Ordinary
INEOS US Petrochem LLC	USA	Holding company	Ordinary
INEOS US Petrochem II LLC ^(b)	USA	Non-trading company	Ordinary
INEOS US Chemicals Company (formerly BP Amoco Chemical Company)	USA	Production of purified terephthalic acid and paraxylene	Common
INEOS 179 Limited	UK	Holding company	Ordinary
INEOS Aromatics and Acetyls Trading (Shanghai) Company Limited	China	Sales office	Registered capital
INEOS Acetyls Japan KK	Japan	Sales office	Ordinary
INEOS Acetyls Investments Limited (formerly BP Chemicals Investments Limited)	UK	Holding company	Ordinary
INEOS Aromatics Asia Limited (formerly BP Asia Limited)	Hong Kong	Sales office	Ordinary
INEOS Acetyls (Malaysia) Sdn Bhd. (formerly BP Asia Pacific (Malaysia Sdn Bhd.)	Malaysia	Production of acetic acid and other acetyls products	Ordinary
INEOS Acetyls (Korea) Limited (formerly BP Chemicals (Korea) Limited)	UK	Sales office	Ordinary
INEOS Acetyls Americas Limited (formerly Exploration Service Company Limited)	UK	Holding company	Ordinary
INEOS Aromatics Holdings Limited (formerly BP Aromatics Holdings Limited)	UK	Holding company	Ordinary
INEOS Aromatics Limited (formerly BP Aromatics Limited)	UK	Production of purified terephthalic acid and paraxylene	Ordinary
INEOS World-Wide Technical Services Limited (formerly BP World-Wide Technical Services Limited)	UK	Licensing services	Ordinary
INEOS Aromatics Holding Company (formerly BP Amoco Chemical Holdings Company)	USA	Holding company	Common
BP Zhuhai Chemical Company Ltd ^(f)	China	Production of purified terephthalic acid and paraxylene	Member interest
INEOS Aromatics Indonesia Holdings Ltd (formerly BP Amoco Chemical Indonesia Ltd)	USA	Holding company	Common
INEOS Aromatics Belgium NV (formerly BP Chembel NV)	Belgium	Production of purified terephthalic acid and paraxylene	Ordinary
INEOS Aromatics Belgium Holdings LLC (formerly BP .America Chembel Holding LLC)	USA	Holding company	Common
PT INEOS Aromatics Indonesia (formerly PT BP Petrochemicals)	Indonesia	Production of purified terephthalic acid and paraxylene	Ordinary
INOVYN Limited ^(g0	UK	Holding company	Ordinary
INOVYN Holdings Limited ^(c)	UK	Holding company	Ordinary
INOVYN Finance Limited (formerly INOVYN Finance plc)	UK	Holding company	Ordinary
INOVYN Group Treasury Limited	UK	Holding company	Ordinary
INOVYN Europe Limited	UK	Holding company	Ordinary
INOVYN Norge AS	Norway	Manufacture of chemicals and PVC	Ordinary
INOVYN Sverige AB	Sweden	Manufacture of chemicals and PVC	Ordinary
INEOS ChlorVinyls Holdings BV	Netherlands	Holding company	Ordinary
INOVYN Newton Aycliffe Limited	UK	Non-trading	Ordinary
INEOS Newton Aycliffe Trustees Limited	UK	Pension trustee	Ordinary
INOVYN Services Limited	UK	Service company	Ordinary
INOVYN Enterprises Limited	UK	Extraction and supply of brine and water	Ordinary
INOVYN Chlor Vinyls Holdings Limited	UK	Holding company	Ordinary
INOVYN Newco 2 Limited	UK	Holding company	Ordinary
INOVYN Chlor Vinyls Limited	UK	Manufacture of chemicals and PVC	Ordinary
INEOS Enterprises Group Limited	UK	Manufacture of salt and sulphur chemicals	Ordinary
Keuper Gas Storage Limited	UK	Gas storage	Ordinary
INEOS Chlor Atlantik GmbH	Germany	Non-trading	Ordinary
INOVYN Americas Inc	USA	Purchase and resale of chemicals	Ordinary
INOVYN Sales International Limited ^(c)	UK	Non-trading	Ordinary
INEOS Chlor Trustees Limited	UK	Pension trustee	Ordinary
INEOS Vinyls UK Ltd ^(c)	UK	Non-trading	Ordinary
INEOS Vinyls GmbH & Co KG	Germany	Holding company	Ordinary
INOVYN Schkopau GmbH	Germany	Non trading	Ordinary
INOVYN Sales GmbH	Germany	Non trading	Ordinary
EVC Pension Trustees Limited	UK	Pension trustee	Ordinary
INOVYN Energy Limited	UK	Holding company	Ordinary
Kerling Newco 1 Limited	UK	Holding company	Ordinary
Kerling Newco 2 Limited	UK	Holding company	Ordinary
INOVYN Deutschland GmbH	Germany	Manufacture of chemicals and PVC	Ordinary
INOVYN Espana S.L	Spain	Manufacture of chemicals and PVC	Ordinary
INOVYN Osterreich GmbH	Austria	Sales office	Ordinary
INOVYN Belgium SA	Belgium	Manufacture of chemicals	Ordinary
INOVYN Olefines France SAS	France	Operation of ethylene cracker	Ordinary
INOVYN Portugal Lda	Portugal	Sales office	Ordinary
INOVYN Trade Services SA	Belgium	Purchase and resale of chemicals	Ordinary
INOVYN Manufacturing Belgium SA	Belgium	Manufacture of chemicals and PVC	Ordinary
INOVYN France SAS	France	Manufacture of chlorine products	Ordinary
INOVYN Italia S.p.A.	Italy	Commercial services	Ordinary
INOVYN Produzione Italia S.p.A	Italy	Manufacture of chemicals	Ordinary
INOVYN Quimica Espana S.L	Spain	Waste treatment	Ordinary
Vinyloop Ferrara S.p.A ^(c)	Italy	PVC Recycling	Ordinary
TTE Training Limited	UK	Training company	Limited by guarantee
TTE Apprenticeship Training Agency Limited	UK	Apprenticeship company	Limited by guarantee
INEOS Norway Finance Ireland Limited	Ireland	Securitisation vehicle	n/a

Company	Ownership 2020	Ownership 2019	Registered office reference
INEOS Quattro Financing Limited (formerly INEOS Styrolution Financing Limited) ^#	100%	100%	(1)
INEOS Quattro Finance 1 plc ^#	100%	-	(1)
INEOS Quattro Finance 2 plc ^#	100%	-	(1)
INEOS Styrolution Investment GmbH ^(d)	100%	100%	(2)
INEOS Styrolution Holding GmbH ^(d)	100%	100%	(2)
INEOS Styrolution America LLC	100%	100%	(3)
INEOS Styrolution Belgium NV	100%	100%	(4)
INEOS Styrolution Belgium Services bvba	100%	100%	(5)
INEOS Styrolution Beteiligungs GmbH ^(a)(d)	-	100%	(2)
INEOS Styrolution Canada Ltd	100%	100%	(6)
INEOS Styrolution (China) Investment Co. Ltd...	100%	100%	(7)
INEOS Styrolution do Brasil Polimeros Ltda.	100%	100%	(8)
INEOS Styrolution Hong Kong Company Limited	100%	100%	(33)
INEOS Styrolution Europe GmbH ^(d)	100%	100%	(2)
INEOS Styrolution France SAS	100%	100%	(10)
INEOS Styrolution France Services SAS	100%	100%	(11)
INEOS Styrolution Group GmbH ^(d)	100%	100%	(2)
INEOS Styrolution Iberia S.L.	100%	100%	(12)
INEOS Styrolution India Limited ^(e)	75%	75%	(13)
INEOS Styrolution Switzerland SA	100%	100%	(14)
INEOS Styrolution Italia S.r.L.	100%	100%	(15)
INEOS Styrolution Kimyasal Ürünler Ticaret Limited Sirketi	100%	100%	(16)
INEOS Styrolution Köln GmbH ^(d)	100%	100%	(17)
INEOS Styrolution Korea Ltd	100%	100%	(18)
KR Copolymer Co. Ltd	100%	100%	(19)
INEOS Styrolution Ludwigshafen GmbH ^(d)	100%	100%	(2)
INEOS Styrolution Mexicana, S.A. de C.V.	100%	100%	(20)
INEOS Styrolution Netherlands B.V.	100%	100%	(21)
INEOS Styrolution OOO.	100%	100%	(22)
INEOS Styrolution Poland Sp. z o.o	100%	100%	(23)
INEOS Styrolution Polymers (Foshan) Co. Ltd.	100%	100%	(24)
INEOS Styrolution Polymers (Ningbo) Co. Ltd.	100%	100%	(25)
INEOS Styrolution Advanced Materials (Ningbo) Pte Ltd.	100%	100%	(26)
INEOS Styrolution Polymers (Shanghai) Co. Ltd.	100%	100%	(27)
INEOS Styrolution Schwarzheide GmbH ^(d)	100%	100%	(30)
INEOS Styrolution Servicios, S.A. de C.V	100%	100%	(20)
INEOS Styrolution APAC Pte Ltd	100%	100%	(31)
INEOS Styrolution UK Limited	100%	100%	(1)
INEOS Styrolution US Holding LLC.	100%	100%	(3)
INEOS Styrolution Verwaltungsgesellschaft mbH.	100%	100%	(2)
INEOS Styrolution (Thailand) Co., Ltd.	100%	100%	(34)
INEOS Styrolution Vietnam Co., Ltd.	100%	100%	(35)
Deutsche Bank Mexico F/1787 Styrolution	n/a	n/a	(37)
INEOS Styrolution Receivables Finance Designated Activity Company	n/a	n/a	(51)
INEOS Quattro Holdings UK Limited (formerly INEOS 226 Limited)	100%	100%	(1)
INEOS Acetyls UK Limited (formerly INEOS 256 GB Limited)	100%	100%	(1)
INEOS Acetyls International Limited (formerly INEOS 287 Limited)	100%	100%	(1)
INEOS US Petrochem LLC	100%	-	(3)
INEOS US Petrochem II LLC ^(b)	100%	-	n/a
INEOS US Chemicals Company (formerly BP Amoco Chemical Company)	100%	-	(3)
INEOS 179 Limited	100%	-	(1)
INEOS Aromatics and Acetyls Trading (Shanghai) Company Limited	100%	-	(29)
INEOS Acetyls Japan KK	100%	-	(36)
INEOS Acetyls Investments Limited (formerly BP Chemicals Investments Limited)	100%	-	(1)
INEOS Aromatics Asia Limited (formerly BP Asia Limited)	100%	-	(33)
INEOS Acetyls (Malaysia) Sdn Bhd. (formerly BP Asia Pacific (Malaysia Sdn Bhd.)	100%	-	(54)
INEOS Acetyls (Korea) Limited (formerly BP Chemicals (Korea) Limited)	100%	-	(1)
INEOS Acetyls Americas Limited (formerly Exploration Service Company Limited)	100%	-	(1)
INEOS Aromatics Holdings Limited (formerly BP Aromatics Holdings Limited)	100%	-	(9)
INEOS Aromatics Limited (formerly BP Aromatics Limited)	100%	-	(1)
INEOS World-Wide Technical Services Limited (formerly BP World-Wide Technical Services Limited)	100%	-	(1)
INEOS Aromatics Holding Company (formerly BP Amoco Chemical Holdings Company)	100%	-	(3)
BP Zhuhai Chemical Company Ltd ^(f)	91.9%	-	(53)
INEOS Aromatics Indonesia Holdings Ltd (formerly BP Amoco Chemical Indonesia Ltd)	100%	-	(28)
INEOS Aromatics Belgium NV (formerly BP Chembel NV)	100%	-	(55)
INEOS Aromatics Belgium Holdings LLC (formerly BP .America Chembel Holding LLC)	100%	-	(3)
PT INEOS Aromatics Indonesia (formerly PT BP Petrochemicals)	100%	-	(32)
INOVYN Limited ^(g0	94.9%	-	(38)
INOVYN Holdings Limited ^(c)	100%	-	(38)
INOVYN Finance Limited (formerly INOVYN Finance plc)	100%	-	(38)
INOVYN Group Treasury Limited	100%	-	(38)
INOVYN Europe Limited	100%	-	(38)
INOVYN Norge AS	100%	-	(39)
INOVYN Sverige AB	100%	-	(40)
INEOS ChlorVinyls Holdings BV	100%	-	(41)
INOVYN Newton Aycliffe Limited	100%	-	(38)
INEOS Newton Aycliffe Trustees Limited	100%	-	(38)
INOVYN Services Limited	100%	-	(38)
INOVYN Enterprises Limited	100%	-	(38)
INOVYN Chlor Vinyls Holdings Limited	100%	-	(38)
INOVYN Newco 2 Limited	100%	-	(38)
INOVYN Chlor Vinyls Limited	100%	-	(38)
INEOS Enterprises Group Limited	100%	-	(38)
Keuper Gas Storage Limited	100%	-	(38)
INEOS Chlor Atlantik GmbH	100%	-	(42)
INOVYN Americas Inc	100%	-	(43)
INOVYN Sales International Limited ^(c)	100%	-	(38)
INEOS Chlor Trustees Limited	100%	-	(38)
INEOS Vinyls UK Ltd ^(c)	100%	-	(38)
INEOS Vinyls GmbH & Co KG	100%	-	(42)
INOVYN Schkopau GmbH	100%	-	(42)
INOVYN Sales GmbH	100%	-	(42)
EVC Pension Trustees Limited	100%	-	(38)
INOVYN Energy Limited	100%	-	(38)
Kerling Newco 1 Limited	100%	-	(38)
Kerling Newco 2 Limited	100%	-	(38)
INOVYN Deutschland GmbH	100%	-	(42)
INOVYN Espana S.L	100%	-	(44)
INOVYN Osterreich GmbH	100%	-	(45)
INOVYN Belgium SA	100%	-	(46)
INOVYN Olefines France SAS	100%	-	(47)
INOVYN Portugal Lda	100%	-	(48)
INOVYN Trade Services SA	100%	-	(46)
INOVYN Manufacturing Belgium SA	100%	-	(46)
INOVYN France SAS	100%	-	(47)
INOVYN Italia S.p.A.	100%	-	(49)
INOVYN Produzione Italia S.p.A	100%	-	(50)
INOVYN Quimica Espana S.L	100%	-	(44)
Vinyloop Ferrara S.p.A ^(c)	100%	-	(49)
TTE Training Limited	100%	-	(52)
TTE Apprenticeship Training Agency Limited	100%	-	(52)
INEOS Norway Finance Ireland Limited	n/a	n/a	(51)

^# Shares held directly by INEOS Quattro Holdings Limited (formerly INEOS Styrolution Holding Limited). All other subsidiaries listed are held indirectly.
^(a) On 1 January 2020 INEOS Styrolution Beteiligungs GmbH was merged into INEOS Styrolution Holding GmbH.
^(b) INEOS US Petrochem II LLC was dissolved on 27 January 2021.
^(c) In the process of being liquidated.
^(d) Pursuant to HGB, section 264 (3), these subsidiaries are exempt from applying certain legal requirements to their statutory stand-alone financial statements for the year ended 31 December 2020.
^(e) Portion of ownership interests held by non-controlling interests is 25%.
^(f) Portion of ownership interests held by non-controlling interests is 8.1 %.
^(g) Portion of ownership interests held by non-controlling interests is 5.1 %.

The registered office addresses of the investments disclosed in this note are:

Reference	Registered office address
(1)	Hawkslease, Chapel Lane, Lyndhurst, Hampshire, SO43 7FG, United Kingdom
(2)	Mainzer Landstrasse 50, 60325 Frankfurt, Germany
(3)	1209 Orange Street, Wilmington DE 19801, Delaware, USA
(4)	Haven 725, Scheldelaan 600, 2040 Antwerp, Belgium
(5)	2070 Zwijndrecht, Nieuwe Weg 1, 1053 Haven, Mechelen, Belgium
(6)	872 Tashmoo Avenue, Sarnia ON N7T 8A3 Ontario, Canada
(7)	Room 2502, 567 Langao Road, Putuo District, Shanghai, China
(8)	Rua Quintana 887 3° andar, conjuntos 33 e 34, Ciudade Moncoes, São Paulo 04569-011
(9)	Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
(10)	Rue Albert Duplat, F-62410 Wingles. France
(11)	95 rue la Boétie, F-75008 Paris, France
(12)	Ronda General Mitre 28-30, 08017 Barcelona, Spain
(13)	5th Floor, OHM House - II, OHM Business Park, Ellora Park (East), Subhanpura, 390023 Vadodara Gujarat, India
(14)	Avenue des Uttins 3, CH-1180 Rolle, Switzerland
(15)	Via Caldera 21, 20153 Milano Cesano Mademo, Italy
(16)	Büyükdere Cad. Meydan sok., Spring Giz Plaza K. 13 N.11, Maslak Sariyer, Istanbul, Turkey
(17)	Alte Strasse 201, 50769 Cologne, Germany
(18)	Sanggae-ro 143 (Sanggae-dong), Nam-gu, Ulsan, South Korea
(19)	14 ^th Floor, 92 Tongil-ro (Soonhwa-dong) Jung-gu, Seoul, 04517, Korea
(20)	Avenida Insurgentes Sur No. 859, Piso 11, Oficina 1102, Colonia Nápoles, 03810, Mexico City, Mexico
(21)	Strawinskylaan 411, NL-1077 XX Amsterdam, The Netherlands
(22)	Bldg. 3, 18 Pyatnitskaya St., 115035 Moscow, Russian Federation
(23)	ul. Wołoska 9, 02-583 Warszawa, Poland
(24)	No. 61, Jinben Industry Avenue, Xinan Sub-district, Sanshui District, Foshan, Guangdong Province, China
(25)	No.2388, Minghai North Road, Ningbo Petrochemical Economy & Technology Development Zone, Ningbo, Zhejiang, China
(26)	Building No. 3 Unit 1-10, 266 Beihai Road, Ningbo Petrochemical Zone, Zhenhai District, Ningbo, China
(27)	Central Towers, Suite 2501&2503, 567 Langao Road, 200333 Shanghai, China
(28)	2711 Centerville Road,Suite 400, Wilmington DE 19808, United States
(29)	Room 368, Part 302, No. 211 Fute North Road, China (Shanghai) Pilot Free Trade Zone, Shanghai, China
(30)	Schipkauer Strasse 1, 01987 Schwarzheide, Germany
(31)	111 Somerset Road, #14-16 to 21 TripleOne Somerset, Singapore 238164, Singapore
(32)	20th Floor Summitmas Il Jl., Jend. Sudirman Kav. 61 - 62, Jakarta, Selatan, Indonesia
(33)	Level 54, HopewellCentre, 183 Queen's Road East, Hong Kong
(34)	No. 4/2, I-8 Road, T. Map Ta Phut, A Muang, 2115 Rayong, Thailand
(35)	11 ^th Floor, Lotte Center Hanoi, 54 Lieu Giai Street Hanoi, Vietnam
(36)	1-25-1 Nishi-Shinjuku, Shinjuku-ku, (35F, Shinjyuku Center Building), Tokyo 1630635, Japan
(37)	Torre Virreyes, Pedregal 24, Piso 20, Colonia Molino del Rey, 11040, Mexico City, Mexico
(38)	Bankes Lane Office, Bankes Lane, Runcorn, Cheshire, WA7 4JE, United Kingdom
(39)	Rafnes Industriomrade, 3966 Stathelle, Norway
(40)	444-83 Stenungsund, Sweden
(41)	Luna Arena, Herikerbergweg 238, Amsterdam, The Netherlands, 1101 CM
(42)	Ludwigstrasse 12, 47495 Rheinberg, Germany
(43)	2036 Foulk Rd, Suite 204, Wilmington, Delaware 19801, USA
(44)	Calle Marie Curie 1-3-5, 08760 Martorell, Barcelona, Spain
(45)	Schottengasse 1, 4. Stock, 1010 Wien, Austria
(46)	Avenue des Olympiades 20, 1140 Brussels, Belgium
(47)	2 Avenue de la République, 39500 Tavaux, France
(48)	Rua do Centro Cultural n° 5 - R/C, sala 8, 1700-106 Lisboa, Portugal
(49)	Via Marconi 73, 44122 Ferrara (FE), Italy
(50)	Rosignano Marittimo (LI), Via Piave 6 CAP 57016, Italy
(51)	Kilmore House, Park Lane, Spencer Dock, Dublin 1, Ireland
(52)	New Horizons House, New Bridge Road, Ellesmere Port, Cheshire, CH65 4LT
(53)	Da Ping Harbour, Lin Gang Industrial Zone, Zhuhai City, Guangdong Province, China
(54)	Level 9, Tower 5, Avenue 7,The Horizon Bangsar South City, No. 8, Jalan Kennchi, 59200 Kuala Lumpur, Malaysia
(55)	Amocolaan 2 2440 Geel, Belgium

9 DEBTORS

	2020	2019
	€m
Amounts falling due after more than one year
Amounts owed by group undertakings	16.2	-

The amounts owed by group undertakings is an unsecured non-interest bearing loan owed by the Company's immediate parent undertaking, which is measured at amortised cost. The loan was settled in January 2021.

10 INTEREST-BEARING LOANS AND BORROWINGS

	2020	2019
	€m
Non-current
Amounts owed to group undertakings	16.2	-
Current
Amounts owed to group undertakings	0.1	-

The amounts owed to group undertakings is an unsecured non-interest-bearing loan owed to a subsidiary undertaking, which is measured at amortised cost. The loan was settled in January 2021.

11 TRADE AND OTHER PAYABLES

	2020	2019
	€m
Accruals	0.1	0.1

12 CAPITAL AND RESERVES

Share capital

	As at 31 December 2020	As at 31 December 2019
	€m
200,100 (2019: 200,100) issued Ordinary shares (pounds sterling) of £ 1.00 (2019: £1.00) each	0.3	0.3
6 (2019: 2) issued Ordinary shares (Euro) of €1.00 (2019: €1.00) each	-	-
	0.3	0.3

As the reporting currency of the Company is the Euro, share capital has been converted to Euros at the effective rate of exchange ruling at the date of issuance.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

The Company issued two ordinary shares (Euro) on 31 December 2020 to INEOS Industries Holdings Limited in exchange for shares in INOVYN Limited. In addition, the Company issued a further two ordinary shares (Euro) on 31 December 2020 in exchange for equity funding of €814.3 million. Share premium of €4,230.7 million was recorded on these transactions.

On 15 January 2021, the Company cancelled two ordinary shares (Euro) as part of the reduction of share capital and share premium reduction exercise.

Dividends

The following dividends were recognised during the year:

	2020	2019
	€m
Dividends declared	369.3	582.2

An interim dividend of €369.3 million was declared and paid during the year (2019: €582.2 million declared). The dividend declared equates to €1,845.7 per Ordinary share (2019: €2,909.6 per Ordinary share).

13 ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The immediate parent company of the Company is INEOS Industries Holdings Limited.

The ultimate parent undertaking of the Company is INEOS Limited, a company incorporated in the Isle of Man. The directors regard Mr J A Ratcliffe as the ultimate controlling party by virtue of his majority shareholding in INEOS Limited.

The largest group in which the results of the Company are consolidated is that headed by INEOS Industries Limited. Copies of the financial statements can be obtained from the company secretary at the registered office: INEOS Industries Limited, Hawkslease, Chapel Lane, Lyndhurst, Hampshire, SO43 7FG.

14 ACCOUNTING ESTIMATES AND JUDGEMENTS

The Company prepares its financial statements in accordance with FRS 101, which requires management to make judgements, estimates and assumptions which affect the application of the accounting policies, and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates change and in any future periods. There is no area within the financial statements that involve a significant degree of judgement or estimation.

INEOS Styrolution Ludwigshafen GmbH