28 October 2016

Elementis - Trading Update

Elementis plc (ELM.L, "Elementis" or the "Group"), the Global Specialty
Chemicals Company, today issues a trading update for the three months ended 30
September 2016.

Commenting on the Group's performance Chief Executive Officer, Paul Waterman,
said:

"We continue to focus on prioritising our strategic agenda, which we will
present in more detail at the Group's Capital Markets Day presentation on 14
November 2016. I am pleased to report continued progress in Specialty Products
and while trading conditions for Chromium continued to be challenging, overall
Group earnings per share for 2016 are expected to be in line with market
expectations.

Specialty Products' performance in the period was positive, with strong growth
in Personal Care and improved performance in Latin America coatings.

In Chromium, although the environment internationally remains challenging,
contribution margins in North America and the rest of the world were stable. We
continue to look at options to increase efficiency to help offset the
competitive effects of a stronger dollar.

Cash generation continues to be an important component of the Group's
performance and, as previously stated, the net cash balance at the end of the
year is likely to be higher than at the same time last year which, under our
progressive dividend policy, will have a positive effect on the special
dividend."

Specialty Products' sales were 6 per cent higher than in the same period last
year on a constant currency basis, and 4 per cent on a reported basis. The
remainder of this business commentary refers to constant currency sales.

In Coatings, Asia Pacific sales were 5 per cent ahead of the prior year as
demand in China continued to reflect solid underlying growth. Sales in Latin
America showed significant growth in the period, despite ongoing economic
challenges in Brazil. The business benefited from new business wins at key
accounts in Brazil, Mexico and Chile, which resulted in sales being 38 per cent
higher than in the same period last year. Sales in North America were at a
similar level to the comparator period, as overall demand continued to be
negatively influenced by the impact of the strong dollar on North American
exporters. In Europe, following a relatively strong second quarter (+4 per
cent), sales in the period were 5 per cent lower than in the same period last
year. We saw reduced consumption across Europe through our distributor channel
whilst sales to Eastern Europe were also lower.

In Personal Care, where the Group has recently added more resources, sales were
38 per cent higher than in the same period last year. Excellent progress was
made in growing sales of hectorite products in colour cosmetics and
antiperspirants, while expanding sales geographically also showed good
progress, particularly in Italy, China, India and Brazil.

In Oilfield Drilling, sales were 4 per cent lower than in the same period last
year as demand patterns continued to remain relatively stable.

In Chromium, sales were 4 per cent lower than in the same period last year, on
3 per cent higher volumes, which was due to a continuation of the more
challenging environment outside of North America, as reported in previous
announcements. Compared to the second quarter, contribution margins in the
period were relatively stable in North America and improved for sales outside
of the region, as a result of a better product mix.

Consistent with the strategy to reduce activity in Surfactants over time, sales
in the period were 14 per cent lower than in the same period last year and
operating profit was consistent with the previously reported near break-even
run rate in the first six months of the year.

The Group's tax rate for the full year is expected to be lower than it was for
the first six months of the year, due to changes in the geographic mix of
profits, but overall Group earnings per share for 2016 are expected to be in
line with market expectations. The Group's balance sheet remains strong, with
robust operating cash generation continuing to be a positive feature of the
Group's performance. Consequently, the Group's year end net cash balance is
expected to be higher than the $74 million reported at the end of 2015.

END

Enquiries

Elementis plc                           Tel: +44 (0) 20 7067 2999
Paul Waterman, CEO
Brian Taylorson, CFO
Ralph Hewins, CFO-Designate

FTI Consulting                          Tel: +44 (0) 20 3727 1000
Deborah Scott
Matthew Cole