Croda International Plc Transition to International Accounting Standards

Summary  Minimal Profit and Loss and EPS impact for continuing operations  New pensions accounting reduces net assets  No change to cash flows  New reportable segments  Disclosure of associates tax in headline pre-tax numbers

Profit before tax impact 2004* £m £m Employee benefits (pensions) 1.0 Share based payments(0.6) Business combinations (goodwill amortisation) 0.4 amortisation) 0.4 Associates disclosure (0.8) Total - *Continuing operations _____

Profit after tax impact 2004* £m £m Employee benefits (pensions) 0.6 Share based payments(0.4) Business combinations (goodwill amortisation) 0.4 amortisation) 0.4 Other 0.1 Total 0.7 *Continuing operations _____

Balance sheet 31 December 2004  Net assets reduced from £170.9m to £89.6m Accounting for pensions and other post retirement benefits causes net asset reduction of £95.1m Accounting for pensions and other post retirement benefits causes net asset reduction of £95.1m Accounting for dividends differently increases net assets by £16.3m Accounting for dividends differently increases net assets by £16.3m Other minor changes Other minor changes

Segmental reporting – IAS 14  Consumer Care – Personal, Health and Home Care  Industrial Specialities – Industrial Specialities, Plastics Additives and Other  Central costs absorbed within segments

Segmental analysis 2004* £m Sales Operating profit profit Consumer Care Industrial Specialities ___________ ___________ *Continuing operations

Employee benefits – IAS 19  Mainly pensions but also catches other post-retirement benefits (US Healthcare)  Net cost now split between operating profit and financing  Assets and liabilities effectively marked to market at year end with any movements due to differences in assumptions going directly to reserves

Share based payments – IFRS 2  Recognising full cost for the first time  We have hedged shareholder dilution in the past by buying on market; plan to continue  Some increase from 2004 charge likely as both new schemes and more SAYE options fall into the calculation  Some potential volatility due to non-market based performance criteria on some options and a cash settled overseas SAYE type scheme, though not expected to be material in Group terms

Associates disclosure – IAS 1  International standards require after tax number to be declared in profit before tax number  Apparent reduction in profit before tax and operating profit and corresponding tax charge reduction  Small reduction in reported tax rate  May report on both bases in future presentations if material

Other matters  Westbrook goodwill no longer amortised, annual impairment review (IFRS 3)  Dividends only recognised if paid or approved in AGM by balance sheet date (IAS 10)  Minor changes on tax and leases (IAS 12 & IAS 17)  Financial instrument standards (IAS 32 and IAS 39) not applied to comparatives, no significant future impact foreseen  A number of additional disclosures in financial statements for 2005 onwards