Croda International Plc 2002 Preliminary Results

Summary Results above market expectations Ongoing pre-tax profit up 23% Net debt reduction of £11.5m Good growth in core markets Outlook positive for all sectors

Summary of continuing operations £m £m Sales ============= ============ Operating profit Interest(4.0)(5.3) ___________ ___________ Profit before tax ========== ========== EBITDA ========== ==========

Statistics EPS normalised (p) Dividend per share (p) Cash flow per share (p) Dividend cover (x) Interest cover (x) 10 7 Tax rate35.8%40.0%

Specific operating costs £mExpectedActualActual UK Pension costs * Insurance * 2003 cash cost will be close to that of 2002

UK pension costs Balance Sheet Asset/(liability) before tax32.2(89.7) Deferred tax(9.7)26.9 __________ __________ Net asset/(liability) December (62.8) ========= ========= Net asset/(liability) December (3.9) ========= ========= £m SSAP 24 FRS 17

UK pension costs Estimated Profit and Loss Within operating profit Financing -0.8 __________ __________ Net cost ========= ========= Net cost ========= ========= £m SSAP 24 FRS 17

Exceptional closure/disposal costs 2002 £m Non-cash24.7 Cash (net of proceeds)4.2 __________ 28.9 __________

Cash Working capital reduction of £1.4m Net debt reduction of £11.5m Net debt at 31 December 2002 was down to £52.1m

Operating cash flow £m £m Operating profit Depreciation and amortisation Stock Debtors(3.7)6.2 Creditors Other(6.4)(5.2) __________ _________ Operating Cash Flow __________ _________ Working Capital (days sales) 76 87

Net cash flow Operating cash flow Interest(3.9)(5.4) Dividends(13.0)(13.4) Taxation(10.7)(3.7) Net Capex(13.4)(23.1) Own shares(0.8)(1.3) Acquisitions/Disposals(1.8)26.6 __________ _________ Net cash flow __________ _________ £m £m

Turnover change on prior year* VolumeCurrencyMix/Total Price % % % % H H Year * Continuing operations only

Sales by destination * United Kingdom Rest of Europe Americas Asia Rest of World ____________ ___________ ____________ ___________ ____________ ___________ ___________ ___________ * Continuing operations only £m %

Sales by market * Personal & Health Care Home Care & Plastics Additives Industrial Specialities Other ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ * Continuing operations only £m % £m %

Raw materials $/mt Crude Vegetable Oil Prices

Raw materials Fatty Acid and Fatty Alcohol Prices Price

Oleochemicals FirstSecondYearFirst SecondYear halfhalfhalfhalf Turnover£m Trading profit£m Margin%

Summary of trading Good sales growth in Personal and Health Care Margins back over 16% Strong bounce back in the Americas Raw material prices rose slightly in second half

Strategic and operational progress

Restructuring Two oleochemical sites closed Three businesses sold/closed One business radically restructured

New products Crodarom - Plantago Sederma - Kombuchka Oleochemicals - Proteins for fabric care

Crodarom Botanicals business Combination of existing small Croda plant extract business and similar, but higher technology, botanicals business acquired as part of the Sederma transaction in 1997 Sales and profits have more than doubled from 1997 to 2002

Plantago Anti-inflammatory Reduces skin redness Anti bacterial Free radical scavenger Plantago Lanceolata

Plantago

Kombuchka Fermentation product of black tea rich in organic acids and vitamins Smoothes the skin (reduces roughness by 16% in 28 days) Improves complexion in three ways: - radiance (+15%) - clarity (+11%) - colour tone (+20%)

Kombuchka

Decrease of skin roughness

Coltide HQS- Quaternised Protein Enhances the conditioning properties of fabric conditioners Significantly improves the “handle/ feel” of cotton terry towelling Reduces fibre erosion in cotton and fibre erosion /degradation in wool Increases the lubricity of wool fibres Does not build-up on cotton or wool fibres Does not impair fabric wettability Proteins for fabric care

Coltide HQS study - Subjective Handle Results 20 Assessors - 10 Male, - 10 Female Proteins for fabric care

Coltide HQS study - Comparison of Cotton Fibres 20 Wash Cycles Control Fibres Test Fibres with HQS Marked fibrillation Much reduced fibrillation Proteins for fabric care

Health Care update Provensis Airozin IBS Ultra High Purity Lipids

Outlook Reorganisation to increase focus on core markets Some costs rising but manageable Development of speciality lipids business Constant enhancement of our intellectual property Industrial businesses beginning to recover