Polymer Chemicals 2000 Turnover 216M Operating Profit 23M

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Yule Catto Co plc Preliminary Results 2002
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HIGHLIGHTS

• Profit Before Tax 52.6m 30
• Turnover 510.8m 7.6
• Earnings Per Share 23.9p 28
• Dividend up for 22nd consecutive year 12.5p 4
• Strong free cash flow before dividends of 29.8m
  (200131.7m)
• Launch of generic omeprazole in USA and global
  market opportunities for water-based polymers
  provide good platform for growth

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SEAN CUMMINS Finance Director
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TURNOVER BY DESTINATION
510.8m 7.6
474.8m
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
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PBT BY ORIGIN
Exchange Rates Average for Year 2002
2001 Euro 1.59 1.61 Malaysian Ringgit
5.74 5.47
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
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FINANCIAL RATIOS
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PENSION DISCLOSURE REQUIRED BY FRS17 (EXTRACT)
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CONSOLIDATED BALANCE SHEET
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CASH FLOW STATEMENT
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ALEX WALKER Chief Executive
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SECTOR REVIEW

• Polymer Chemicals
• Pharma Fine Chemicals
• Performance Chemicals

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SECTOR OVERVIEW
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POLYMER CHEMICALS
POLYMER CHEMICALS

• First full year of global operating freedom

• Integrated Synthomer achieving good volumes

• Raw material prices rise on back of Middle East
  uncertainty

Sales
Operating Profit

• Total nitrile latex demand strong and growing
  Malaysian plant steadily gaining customer
  approvals

• Acquisition of Dutch latex compounding company
  cements position as leading supplier in Europe

• New Belgian emulsion facility on stream ahead of
  schedule

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MARKET POSITION OF SYNTHOMER
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RAW MATERIAL PRICES
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PHARMA FINE CHEMICALS

• Launch of generic omeprazole in USA seeing strong
  penetration of proton pump inhibitor market

• Growing sales of omeprazole to other markets

• Ranitidine volumes strong with good prospects

Sales
Operating Profit

• Development programme in place to sustain future
  prospects

• Investment approved to withdraw from
  cephalosporins releasing capacity in Italy

• Flavour and fragrances hold up well despite
  greater competition for higher volume products

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GENERICSCurrent Development Portfolio
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Current Clinical Development Portfolio
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PERFORMANCE CHEMICALS

• Iodine, tin, copper and SO2 products all
  contribute to improving inorganic results

• Weaker US and fire at French facility impact
  ultramarine new products receiving strong
  interest

• Strategic review of James Robinson activities in
  progress

• Colour developer approvals gained and contracts
  secured for Indian facility

• Restructuring initiated in French inks business

• Consumer Chemicals progress continues

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OUTLOOK

• US SALES OF OMEPRAZOLE GROW WITH GENERIC
  SUBSTITUTION OF PRILOSEC
• CONTRACTS IN PLACE ACROSS A RANGE OF PHARMA
  PRODUCTS KEEPING MANUFACTURING CAPACITY WELL
  LOADED
• NEW PRODUCT DEVELOPMENT AND DMF FILING PROGRAMME
  OFFER GOOD PROSPECTS FURTHER OUT
• SUSTAINED DEMAND FOR WATER-BASED POLYMERS
  ENHANCED BY VOLUMES FROM LATEX COMPOUNDING
  ACQUISITION
• PETROCHEMICAL RAW MATERIAL PRICES A CONCERN BUT
  PRICE INCREASE PROGRAMME IN PROGRESS
• STRONG ORDER BOOKS, BETTER PRODUCT MIX AND
  CAPITAL INVESTMENT ASSISTING INORGANIC CHEMICALS
  AND ULTRAMARINE
• MAINTAINED FOCUS ON CASH GENERATION