Croda International Plc Results for 12 months to 31 December 2006

2 Financial Review

3 Basis of preparation of presentation ●Croda and Uniqema shown separately ● Before exceptionals ●Continuing operations  Baxenden re-classified as continuing ●Discontinued operations  Application Chemicals sold to Shell

4 Summary ● ‘Old’ Croda - Operating profit up 9% despite start up costs, input cost inflation and currency - Operating margins increase by 1 percentage point to 18.2% ● ‘Old’ Uniqema - Key restructuring complete for 1 January Strong sales - Price increases

5 Summary – combined Group ● Record set of results  Continuing pre-tax profit up 7.3% to £54.3m  Continuing earnings per share up 11.6% to 28.8p  Dividend up 7.1% to 14.3p  January trading encouraging, ahead of last year and in line with expectations

6 ‘Old’ Croda

7 Turnover by segment £m inc Consumer Care % Industrial Specialities % Total % ● Consumer Care sales up 3.9% with Personal Care the best performer ● Industrial Specialities flat ● Both segments depressed by FX and focused reduction in bulk business and toll processing

8 Turnover change on prior year Volume-3.0% Trading/toll processing -26%, Core +3% Currency-1.1% Mix/price+6.8% Total+2.7% ● Currency hit of 1.1% due to strong sterling (H1 2.5% benefit) ● Volume and mix/price trends the same in H2 as in H1 ● Continuing movement in volume versus mix/price, swapping lower margin volumes (especially toll processing and oil trading at Seatons) for growth in higher margin/ value added products

9 Turnover by destination £m inc Europe % Americas % Asia % Rest of World % Total % ● Good performance in all areas despite impact of adverse currency translation and reduced toll processing/technical oil trading

10 Baxenden ● Majority shareholder, Chemtura, was handling the sales process which has not completed ● We have restated both years as if the business had always been continuing:  2006 share of post tax profit: £1.3m  2005 share of post tax profit: £1.4m ● Included in Industrial Specialities ● Adds around 1p to eps

11 Operating profit £m inc Consumer Care % Industrial Specialities % Total % ROS18.2%17.2% ● Profit uplift and margins increased despite continued rise in input costs, adverse currency and tough comparatives ● Cost of Enterprise Technologies and China start up ●Underlying profit growth accelerated in H2 in both sectors ●Good progress in Industrial Specialities despite Baxenden decline

12 ‘Old’ Uniqema

13 Post acquisition trading £m 2006 Turnover205.0 Operating Profit4.3 ROS2.1% ● Turnover ahead of prior year, margins weaker ● Overall performance in line with expectations

14 Combined pre-tax profit £m inc ‘Old’ Croda % ‘Old’ Uniqema4.3- Total operating profit % Interest(7.2)(1.9) Pre-tax profit % ● Increased interest charge an amalgam of cost of M&A, buyback, IAS19 and pension financing income and share issue

15 Exceptional items ● Exceptional items totalling £35.3 million have been booked as a result of the Uniqema acquisition ● The main elements of the total are redundancy and other employee related costs, charges for onerous lease and supply agreements and costs in relation to the termination of distribution agreements

16 Share buy back/treasury shares £m No. H1 to June m Year to December m Year to December m Total m ● Bought back £21.5m shares in Q1 ● Total buyback £52.4m since start of programme in 2004 ● Cancelled 8.7m shares this year, leaving 3.8m in treasury

17 Share issue ● 10% share placement in September as part of the funding of the Uniqema acquisition raised £60.6m ● The total number of shares with voting rights at 1 January 2007 is 134.0m

18 Earnings per share inc Pre tax profit (£m) % Tax rate33.0%34.8% Average shares in issue 126.0m127.5m Minority (£m) Continuing eps28.8p25.8p+11.6% ● Favourable mix of profits led to a lower tax charge this year ●This plus the slightly lower average number of shares further enhances growth at the eps level

19 Dividend £m inc Continuing eps28.8p25.8p+11.6% Dividend14.30p13.35p+7.1% Cover2.0x1.9x ● Proposed final dividend 9.65p per share ● Total payout for the year increased by 7.1% to 14.3p per share ● Dividend cover 2x

20 Eps and dividend ● Steady progression in earnings, dividends and dividend cover over last 5 years UK GAAP 2002/3, IFRS 2004/5/6

21 Operating cash flow £m Operating profit Depreciation Working capital movement Other/pension top up(14.9)(2.1) Discontinued operations(1.0)(0.2) Operating Cash Flow Another year of strong underlying operating cash generation

22 Free cash flow £m Operating cash flow Net interest paid(12.4)(2.4) Tax paid(19.1)(15.9) Free cash flow

23 Net cash flow £m Free cash flow Capex(22.6)(9.1) Acquisition(357.0)- Business/asset sales Provisions(0.2)(5.2) Share buyback/issue42.3(21.8) Dividends paid(17.9)(21.7) Other5.7(1.9) Total(305.7)(9.0)

24 Balance sheet £m Operating assets Net debt(329.9)(24.2) Net assets ● Good cash performance in 2006 but 2007 will see  Working capital settlement with ICI: £9m  Return of inherited cash to ICI: £18m  Payment to pension fund: £14m  Redundancy payments

25 Hedging ● Net debt £329.9m ● Within facility:  Have hedged currency assets through currency borrowings  US $130m  €145m  Have fixed interest rates on £100m at 6.44% for three years

26 Pensions ● £20m contribution to Croda schemes  £6m December 2006  £14m January 2007 ● Still in discussion with ICI re Uniqema pension transfers

27 IAS19 pension deficit £m Market value of assets Value of liabilities(661.5)(463.2) Gross deficit(140.5)(107.1) Funding level78.8%76.9% Deficit net of deferred tax(106.8)(74.2) ● Pension deficit increases due to inclusion of unfunded liabilities inherited from ICI, less December’s £6m extra contribution from Croda

28 Summary ● Main phase of Uniqema integration completed for 1 January 2007 ●Robust 2006 performance  ‘Old’ Croda operating profit up 9%  Continuing eps up 11.6% to 28.8p ●Dividend up 7% to 14.3p ●Underlying January 2007 trading ahead of last year and in line with our expectations

29 Business Development

30 Uniqema - Why? ● One of our top targets since 1999 ● Very strong brand franchise in markets we understand ● Products and technologies we understand ●Strengthens our global position in Consumer Care ● Global leverage with a consolidating customer base ● Good geographic fit ● Strong synergies

31 New structure Croda Specialities Products -Actives, Alkoxylates, Anionics, Esters, Lanolin, Plant Extracts, Proteins, Quats Plants -BrazilCampinas FranceChanac, Chocques, Paris IndiaThane IndonesiaCikarang JapanShiga SingaporeJurong Island South KoreaWoobang SpainMevisa UKHull, Leek, Rawcliffe Bridge, Widnes, Wilton USAAtlas Point, Mill Hall

32 New structure Croda Specialities Sales Approx £700m Sales by market Administered regionally Increased footprint in the Americas, Asia and Europe

33 Global sales units AmericasEuropeAsia/Africa/M East ArgentinaBelgiumAustraliaSouth Africa BrazilCzech Republic ChinaSouth Korea CanadaFrance DubaiTaiwan ChileGermany EgyptThailand ColombiaHolland Hong KongVietnam MexicoHungary IndonesiaZimbabwe USA (6)Italy Japan Poland Malaysia Russia Philippines Spain Singapore Sweden UK

34 New structure Uniqema Products - Fatty Acids, Glycerine, Polymerised Fatty Acids Plants -BromboroughUK ChicagoUSA CremonaItaly EmmerichGermany GoudaHolland KlangMalaysia External sales approx £300m Operates as one business

35 Integration/restructuring ●In place by 1 January 2007 – on target ●Some IT integration may take us into Q – but minor issue ●All leavers notified by end 2006 ●Cumulative headcount reduction: -end end end ●Head offices discontinued in Atlas Point, Gouda, Wilton ●Retained only 3 of top 11 Uniqema management

36 Distribution ●1 major contract cancelled from 1 April 2007 ●3 more to be cancelled in 2007 ●Centralised European transport contract to be removed in H ●Selling units fully equipped to take all above in house

37 New products ●Enterprise Technologies launched two new ranges for Personal Care in 2006 ●‘Old’ Croda, including Sederma, launched a record number of new products in 2006 ●‘Old’ Uniqema has a number of under/unexploited technologies, which have been moved into Enterprise Technologies ●The pipeline is exciting for 2007 and beyond

38 Pricing and repositioning ●In 2006, ‘Old’ Croda achieved solid price increases ●In 2006 ‘Old’ Uniqema didn’t ●The process of demarketing on price started with price increases issued in November 2006 ●Further increases implemented January 2007 ●So far, so good ●Any loss of low/no margin business will reduce our reliance on toll manufacture and add value

39 Pricing and repositioning ●Repositioning in better markets and correct pricing will create the greatest long term value from the acquisition ●Customer base still well fragmented Old Croda New Croda Biggest customer 3.4% 3.5% Top Ten 18.8% 13.5%

40 Synergies  £20m target at time of acquisition  £ 3m achieved by end 2006  £ 11m will be achieved by end 2007  Full £20m to be achieved during 2008

41 Outlook  Strong demand  Energy costs falling to 2005 levels  Integration/Restructuring on target  Pricing policy implemented  Raw materials manageable  Strong product pipeline  Management focused and motivated