Innovating for a Sustainable Future

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2011Highlights

Revenue continuing operations

£1,068.4m

↑ 6.6%

Profit before tax

£242.2m

↑ 25.9

Earnings per shareContinuing operations

122.5p

↑ 28.4%

1% Club timeEmployee volunteering programme

4,679 hours

↑ 132%

Energy consumption

↓ 4.9%

Landfill waste

↓ 42.9%

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Who We Are

Leaders in the production of speciality ingredients for high growth markets

Innovation is the spirit that drives us forward

Focussed on our customers needs and wants

Experts with a reputation for research, quality and innovation built over 80 years

Dedicated to the separation, concentration, purification and derivatisation of natural products

Committed to a better future with green technology and responsible sourcing strategies

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Where We Operate

33 Countries

46 Sales Offices

18 R&D Centres

17 Manufacturing Sites

Head OfficeManufacturing SiteSales OfficeEuropeAmericasAsiaRest of World

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1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s2010s

A History of Innovation

1925Croda begins trading with operations established in Yorkshire supplying lanolin and waxes

1939Hartolan lanolin alcohol is developed and commercialised. First co-stream product of lanolin refining process

1941Launch of Span & Tween sorbitan esters for food, pharma and cosmetic applications

1949Launch of Polawax, the most successful nonionic emulsifying wax in cosmetics

1950Expansions in the USA with new operations established

1961Launch of Fluilan, a liquid variant of lanolin for use in cosmetics

1964Listed as a public company

1970sExpansions of business in Latin America and Asia with new operations established

1972Introduction of first soluble collagen with a hydrolysed collagen

1976Launch of Crotein Q the first truly quaternised protein

1985First to develop a wheat based protein ingredient

1986Production of high purity erucic acid for the treatment of ALD (Lorenzo’s oil)

1989Application of nanotechnology to achieve high purity surfactants for oral care

1991Launch of Crodasone W, the first silicone co-polymer

1994Launch of Hydrotriticum PVP, the first PVP co-polymer

1996Start of a programme of Super-refining excipients and ingredients for pharmaceuticals

1998Acquisition of Sederma and subsequent launch of acylated peptides for use in anti-ageing

2006Launch of Optisol range of dispersed metal oxides for Sun Care and began the expansion of metal oxides business

2006Acquisition of Uniqema, further expanding Croda’s portfolio and presence

2007Publication of first Corporate Social Responsibility (CSR) Report

2008Publication of first Global Reporting Initiative (GRI) Report

2010Medilan is accredited as “skin friendly” by the British Skin Foundation

2012Croda joins the London Stock Exchange FTSE 100 list of companies

2012Publication of first Sustainability Report (formally CSR Report) outlining the Company’s long term strategy and objectives

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What We Do

Performance Technologies Industrial Chemicals

Personal Care Sun Care & Biotechnologies

Health Care Crop CareSederma Crodarom

LubricantsPolymer Additives

Coatings & Polymers

Home CareGeo

TechnologiesIndustrial Chemicals

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Our NatureNaturally derived ingredients

Each year around 70% of raw materials are

from renewable sources

Sugars

Biopolymers

Botanical extracts

Green processing

Biocatalysis

Fermentation

No solvents and minimised waste by-products

Minimised environmental impact

Biodegradability

Low and non-toxic products

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What is Sustainability?For Croda it’s simple, doing business sustainably means doing business theright way. The right way by our people, the environment, the communities we work within and those organisations we work with.

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their ownneeds”. (Brundtland Report)

Our commitmentWe recognise that it is not just about our products, how they are made or how they are used, but also the impact of everything we do on the economy, environment and society.

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Embedding Sustainability

At Croda CSR is all ‘Our Responsibility’ and is at the heart of Our Vision, which states that:

all functions and individuals are valued; leaders will have as their primary objective to

build other leaders; we will achieve our goals through excellent and

constant communication and setting clear objectives;

continually improve; and continue to be an ethical and responsible

company.

We feel that through our emphasis on emerging markets and technologies, we are making our own small contribution, going beyond “not compromising” and actually “enhancing” the capabilities of future generations.

“”Steve Foots, Group Chief

Executive

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Delivering Our Sustainability Strategy CSR Management Structure – CSR Steering Committee

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Our Material IssuesOur Neighbours

Our World Our PeopleOur Partners Community 1.Community

Communication

2.Community Involvement

3.Community Education

Environment 1.Air Quality &

Climate Change

2.Water Quality & Supply

3.Landfill Waste

Employees 1.Recruitment

& Retention2.Compensatio

n & Benefits3.HR Policies &

Systems4.Talent

Management & Employee Development

5.Performance Management

CorporateStakeholders1.Corporate

Stakeholder Engagement

2.Ethical Supply Chain

Health & Safety1.Process

Safety Management

2.Occupational Health & Safety

ResponsibleSourcing1.Renewable

Raw Materials

2.Responsible Palm Oil Sourcing

3.Product Data Gathering

High

HighLow Impact & Risk to

Croda

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Corporate Stakeholders

Health & Safety

Environment

Responsible Sourcing

Community

Employees

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Key Material Issues & TargetsAir Quality & Climate Change

Reduction in GHG emissions to ensure we progress towards fully sustainable operations

Based on 2010, reduce total Group energy consumption by 5% by 2015

To have 25% of the Group’s total energy requirements generated from non-fossil fuel sources by 2015

Based on 2010, reduce total Group VOC emissions by 10% by 2015

Water Quality & Supply

Minimise our environmental burden from water consumption and waste water discharges

Based on 2010, reduce total Group water consumption by 10% by 2015

To achieve 100% compliance with effluent discharge consents by 2015

Landfill Waste

Phase out the deposition of waste into landfill sites

Based on 2010, reduce total Group waste to landfill by 20% by 2015

Occupational Health & Safety

A sustainable reduction in the rate of injuries

Sustained year on year improvement on the frequency of injuries to all personnel across all manufacturing sites and offices, to ultimately reduce the rate to 0.2 per 100,000 hours worked on a sustainable basis

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A sustainable product portfolio and new product development dedicated to meeting customer needs

Monitor the sustainability of new products by measuring the renewable raw material content and by assessing them against the 12 Principles of Green Chemistry during 2012

Responsible Palm Oil Sourcing

Support sustainable Palm Oil and Palm Kernel Oil, working with the industry on securing a sustainable source of derivatives

Work more closely with suppliers and RSPO to seek ways to source sustainable PO and PKO derivatives wherever possible during 2012

Ensure that the small quantity of PO purchased directly is sourced sustainably by seeking certification by the end of 2012 under RSPO guidelines

Product Data Gathering

Leaders in the quality and quantity of product sustainability data

Complete a gap analysis for the products within our Ingredient Sustainability programme by the end of 2012 to allow data gathering to start at manufacturing site level in 2013

Corporate Stakeholder Engagement

Open ongoing engagement with key stakeholders to identify and review material issues for our business and all our partners

Extend our formal survey to the top 50 customers across all market sectors in each region during 2012

Key Material Issues & Targets

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Attract, recruit and retain high calibre staff to support our business objectives

All regions to have a programme of local graduate and trainee recruitment by the end of 2013

To complete one global employee engagement survey in 2014, which will then be conducted at least every third year

Performance Management

Instil a high performance culture a consistent approach to performance management

All employees to have an annual appraisal via the Croda Aspire system by the end of 2015

Community Involvement

Put community communication into action, support future recruitment needs and enhance the performance of our employees

Based on 2011, increase the total time spent in community related activity through the 1% Club by a further 20% during 2012

Increase the number of individuals in the Group using the 1% Club to 25% of the global workforce in 2012

Community Education

Enhance our brand and reputation, and raise the profile of science, technology and engineering

To ensure that all operations with an R&D Centre create a formal ongoing science, technology and engineering programme with implementation by the end of 2012

Develop an internal Education Ambassador training programme to underpin community education activity by the end of 2013

Key Material Issues & Targets

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Our 2011 PerformanceOver £33 million of our capital expenditure projects since 2010 deliver environmental benefit

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Our 2011 Performance

Resistem™ NatraGem™

ModiSurf™ Clarity

Perfad™ 3000 & 3050 Carbon Footprinting

Percentage of Renewable Content in New Products by Industry Sector

Perc

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Industry Sector

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Our 2011 Performance

Over 78, 500 hours training

4,679 1% Club hours = c. £83,800

Total 1% Club Hours Worked in the Community and Percentage of Employees Accessing the scheme

Percentage of Employees Receiving Training by Year

Innovating for a Sustainable Future

We believe we are doing the right things…

We would like your views as a key stakeholder