Adrian Whitfield

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(No Transcript)
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Adrian Whitfield Chief Executive
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Highlights

• Underlying group sales up 8 to 557.4m
• Profit before taxation 31.5m
• Earnings per share of 14.7p
• Dividend 9.3p, up 3.3
• Strong volume growth in polymers
• Seven new drug master files registered
• Borrowings stable 166.3m (2005 165.6m)

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SEAN CUMMINS Finance Director
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Turnover by Territory
2006
2005
USA7
USA7
Rest ofWorld13
Rest ofWorld13
UK16
UK15
Asia22
Asia23
Europe41
Europe43
516.5m
557.4m
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Consolidated Income Statement
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Currency Rates
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Balance Sheet UK post retirement benefits
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Balance Sheet - borrowings
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Cash Flow Statement underlying performance
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Adrian Whitfield Chief Executive
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Sector Review

• Polymer Chemicals
• Pharma Fine Chemicals
• Performance Chemicals

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Segmental Analysis
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Polymer Chemicals
Operating profit
Operating profit
Sales
m
m
399.0
38.7
364.8
34.2
57.6
57.6
81

• Market growth rates for dipping latex maintained
  at 15
• Raw material prices increased sharply Q4 2006
• Currently prices are easing but supply/demand
  balance remains tight
• US trading company created to supply speciality
  products to the US
• 30 increased latex capacity in Malaysia due on
  stream Q2
• Further capacity planned for early 2008
• 50 increase in European dispersion capacity due
  on stream late 2007

• Turnover 9
• Operating Profit 13

• Strong volume growth
• Europe - Dispersions 12
• - Latex 6
• Far East - Dipping Latex 14

• Enhanced margins

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Raw Material Prices
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Raw Material Usage
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Sales Volume by Product

• 34 growth over 5 years

• 54 growth over 5 years

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Polymer Chemicals
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Pharma Fine Chemicals
Operating profit
Sales
Operating profit
m
m
88.5
10.9
9.5
82.2
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• 9 sales growth from Pharmachem business
• Sales of non-Omeprazole pharma products grow 8
• 13 volume growth of Omeprazole Active but
  continued price pressure
• In House pellet manufacture commissioned and
  approval Q4 2006

• 7 DMFs registered
• Big Pharma continues to look to cut cost and
  manage the transition of patent expiry
• We regard both trends as potentially positive
• Fine Chemicals sales showed small growth (3),
  but continued erosion of margin due to increased
  raw material prices
• Flavours and Fragrance market continues to
  re-structure (Givaudan/Quest)

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Pharma Fine Chemicals
No. of registrations in USA Europe for generic
market
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Performance Chemicals
Sales
Operating profit
Operating profit
m
m
3.5
(0.4m)
69.5
69.8
(0.4)

• Stable Turnover
• Operating profit down 3.9m
• Previously announced site closures will be
  complete end of Q1
• Holliday Pigments production now stable.
  Continue to re-build commercial relationships

• Long term contract for an increased range of fuel
  markers
• James Robinson won the Queens Award for
  Innovation for the development of photochromic
  dyes
• 15 year on year increase in volumes on
  continuing business at William Blythe

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Outlook

• Continued growth from Polymer Chemicals
  businesses
• Further development of our Pharma product range
• Previously announced re-structuring within
  Performance Chemicals business coming to a close.
  Actively looking at ways to further improve the
  performance of these businesses.
• Cash management will remain a key focus

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