Croda International Plc

2024 half year results
Analyst presentation
30 July 2024

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Disclaimer
Cautionary statement

Alternative Performance Measures (APMs)

This review is intended to focus on matters which are relevant to theinterests of shareholders in the Company. The purpose of the review
is to assist shareholders in assessing the strategies adopted andperformance delivered by the Company and the potential for thosestrategies to succeed. It should not be relied upon by any other partyor for any other purpose. Forward looking statements are made ingood faith, based on a number of assumptions concerning future
events and information available to the Directors at the time of theirapproval of this report. These forward-looking statements should betreated with caution due to the inherent uncertainties underlying
such forward-looking information. The user of this review should not
rely unduly on these forward-looking statements, which are not aguarantee of performance and which are subject to a number of
uncertainties and other facts, many of which are outside theCompany’s control and could cause actual events to differ materiallyfrom those in these statements. No guarantee can be given of future
results, levels of activity, performance or achievements.

We use a number of APMs to assist in presenting information in thisstatement in an easily analysable and comparable form. We use
such measures consistently at the half year and full year andreconcile them as appropriate. Whilst the Board believes the APMs
used provide a meaningful basis upon which to analyse the Group’s
financial performance and position, which is helpful to the reader, it
notes that APMs have certain limitations, including the exclusion ofsignificant recurring items, and may not be directly comparable withsimilarly titled measures presented by other companies. The
measures used in this presentation are defined in Croda’s results
statement for the six months ended 30 June 2024.

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Market information
Market information is company compiled informed by a range of third
party sources.

2Agenda01. Executive summary
02. Financial performance
03. Future performance drivers

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Croda
Croda International
International Plc
Plc

01 Executive summary

Steve Foots
Group Chief Executive Officer

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Executive summaryGroup performance in line with expectations
Sales 7% lower

Sequential sales growth v H223*• Consumer Care up 3%• Life Sciences down 19%• Industrial Specialties down 17%• Consumer Care up 9%• Life Sciences* down 2%; Pharma* up 3%• Industrial Specialties up 21%

Sales of innovative products at record levels

Margin improving sequentially*; strong cashflow• New & Protected Products (NPP) 36% of total sales (H123: 34%)
• 11% NPP sales growth in Consumer Care; all 4 businesses
growing NPP sales at constant currency• 16.6% operating margin; 1.6 ppts higher than H223*• Free cash flow up 69%; £44m working capital inflow

Reported sales. *H2 2023 comparator excludes £48m of sales of CV19 lipids and associated profit contribution. No CV19 lipid sales are expected in 2024

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Executive summary

Significant portfolio change

Macro

1

2

3

Pre-Covid

Pandemic and aftermath

Reset for growthMore stable environment

Pandemic-stimulated boom / restocking

Demand reset

Portfolio

Acquired Avanti and Iberchem

Industrials divestment

Portfolio transitioned

GrowthSales CAGR (2014-2019) of 6%

Sales CAGR (2020-22) of 23%

investing for growthReported sales 2019-2023 (£m)

2019

2020

2021

2022

2023

2024

CV19 lipid sales

Reported sales.

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Executive summary

Delivering on self-help measures
Learnings from a challenging period

Issues to address

1.
2.
3.

Croda response

Encouraging leading indicators•

Extended lead-times leading totransactional relationships•

New model moving decision-making
closer to customers•

Higher customer Net Promoter
Scores: +34•

Innovation focused on existing
brands not new product development•

Localising innovation with focus onregional customers innovating quickly•

Growth in NPP sales and with local& regional customers•

Cost a key driver of decision-making
for less-differentiated ingredients•

More flexible pricing policy for certain
customer / product combinations•

Increasing sales volumes and regaining
business in the USA

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Executive summary

Differentiated model with attractive financial characteristics
A high and stable gross margin1

Underpinned by IP and continued innovation

100%

NPP relative to total sales (%)
H1 2024

36%

H1 2023

0%
H1 2022

H2 2022

H1 2023

H2 2023>1,650active patents

34%

H1 2024

Balanced investment and capital discipline2

With consistently high cash conversion3

200.0

10% 110%

8%

8%

150.0

7%
6%

100.0

8%

5%

4%
50.0
0.0

2019

2020
Core capex

2021
Pharma & ECO

2022

95%

6%

2023

80%

2%

65%

0%

50%
2019

2020

2021

2022

2023

Capex/sales

1 Gross margin is internal product margin which is sales minus raw material and packaging costs divided by sales. 2 Capex/sales is capital expenditure excluding ECO and Pharma investment programmes divided by sales.
3 Cash conversion is EBITDA/cash from operations (before interest and tax).

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Executive summary

Assessment of current macro-economic market

Consumer Care

Agriculture

PharmaConsumer Care sales growth inStock days
constant currency (H1 2024 vs. H1 2023)
Q2 24

MNCs

(1)%

Q1 24
L&R

+9%
Customer A
Customer B
Pre-CV19
2022• Customer inventories are lower;
local and regional customers areinnovating and growing quickly

Customer C
2023/24• Prolonged period of destocking
compounded by weather issues andstable but lower commodity prices

Pharma sales• Sequential sales growth versus H223*,
and Q224 sales > Q124 areencouraging signs

MNCs are multinational customers; L&R are local and regional customers. Agriculture customers A, B & C are leading multinational crop science companies.
Customer inventory data compiled from public company reports using 12-month rolling average of Cost of Goods Sold. *Excluding CV19 lipids.

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Executive summary

Portfolio well positioned for earnings growth

Beauty Actives

Beauty Care

F&F

Home Care

Leader in peptides andbiotech ingredients
including plant cell culturesand now ceramides

Differentiated ‘effect’ ingredientsfor hair care and sun protection,and formulation ingredientsdifferentiated by sustainability

Business model optimised
for local and regionalcustomers who are
growing fastest

Principal technology
platforms are sustainability
driven, e.g. ECO

PharmaCrop Protection

Seed Enhancement

Industry-leading position empowering
biologics delivery with excellent
competitive positioning

Innovation partner for delivery systems
to meet sustainability challenges of
conventional pesticides and support themove to biopesticides

Market leader in micro-plastic free
seed coatings which are growing
quickly due to regulatory change

Move to sustainable ingredients and biologics

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Executive summary

Near-term priorities

1

2

3

4

Beauty Care

Crop Protection

PharmaOperational improvements

Driving Beauty Care performanceand capturing growth of local &regional customers

Focusing on innovation in
Crop Protection

Accelerating conversion of
Pharma pipeline

Strong operational improvements
and cost control

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Croda
Croda International
International Plc
Plc

02 Financial performance

Anthony Fitzpatrick
Interim Chief Financial Officer

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Financial performanceGroup performance summary
Adjusted results, £m

H1 2024

H1 2023% change

Sales
Operating profit
Operating margin
Profit before tax
Basic earnings per share
Ordinary dividend per share
Free cash flow

815.9
135.6
16.6%
127.3
68.8p
47.0p
122.7

880.9
175.8
20.0%
174.3
92.9p
47.0p
72.8*

(7.4)%(22.9)%(3.4)ppts(27.0)%(25.9)%
0.0%
68.5%

Reconciliation to IFRS, £m

H1 2024

H1 2023

Adjusted PBTExceptional items
Amortisation of acquired intangibles
Reported PBT

127.3
(2.4)
(18.8)
106.1

174.3(28.5)(17.1)
128.7

Reported sales. H1 2023 free cash flow has been restated in line with the definition in Croda’s H1 2024 results statement.

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Financial performance

Sales lower than prior year but higher than H2 2023
Sales, £m
Reported sales (7)%0%• Constant currency sales
down 4% driven by price/mix(5)%• Raw material prices down
~4% from 1 January 2024
+1%

(3)%
Sector breakdown (H1 2024 vs. H1 2023)
VolumePrice/mix

Acquisitions

FX

Reported

880.9
Constant currency sales (4)%815.9

H1 2023

VolumePrice/mix

Acquisitions

Currency translation

H1 2024

Consumer
Care

Life Sciences

Industrial
Specialties

Reported sales.

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Financial performance

Consumer Care – growing in key markets
Sales

Innovationvs H1 2023

vs H2 2023

+13%

+11%
+9%

+9%

New andProtected Products

+15%
+9%

+8%
+3%

+3%

42%

• 2 ppts above H123
• NPP sales grew 11%
at constant currencyof total sales(6)%
BeautyActivesBeauty
Care

F&F

Home
Care

Consumer
Care• Strong Beauty Actives growth; China driven by
L&R customers• Beauty Care benefiting from more stable demand• F&F growing ahead ‘tier one’ peers• Home Care innovation driving double-digit sales growth

Operating margin
Adjusted operating
profit margin

17.6%• 3.3 ppts below H123,but• 2.5 ppts above H223

Reported sales, except where stated.

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Financial performance

Life Sciences – impacted by Crop and consumer health destocking
Sales

Innovationvs H1 2023

+3%

vs H2 2023

New andProtected Products

(2)%

(2)%
(10)%

(11)%

(17)%

(19)%

33%

• 2 ppts above H123
• Increased in Pharma as
key strategic platforms
growof total sales(33)%
Pharma*Crop
Protection

Seed
Enhancement

Life
Sciences*• Sales of delivery systems for Nucleic Acid andProtein-based drugs continuing to grow• New drug delivery technologies coming to market• Continued destocking and lower commodity prices in Crop
Protection

Operating margin
Adjusted operating
profit margin• Lower Crop volumes
partially offset byrobust cost control

18.3%

Reported sales. *H2 2023 comparator excludes £48m of sales of CV19 lipids. No CV19 lipid sales are expected in 2024.

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Financial performance

Industrial Specialties – enhancing efficiency ofGroup manufacturing model
Sales

Innovationvs H1 2023

vs H2 2023

+23%

+21%

+16%

New andProtected Products• In line with H123

16%
of total sales

(14)%

(17)%
(24)%

Core
Croda

Supplyagreement• Sales 21% higher than H223
• Sequential improvement in volumes and mix• Q2 sales higher than Q1

Industrial
Specialties

Operating margin
Adjusted operating
profit margin

8.0%• 1.2 ppts above H123,
and• 6.7 ppts above H223

Reported sales.

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Financial performance

Adjusted operating margin improving sequentially
Adjusted operating margin % versus H1 2023

(0)%

*

Adjusted operating margin % versus H2 2023*

+5%

(2)%

(2)%

(1)%

(2.7)%(1)%

Crop Protection impact
20.0%
16.6%

H1 2023

Volumeleverage

Price/mix

Variable
remuneration& other

H1 2024

17.7%

16.6%

15.0%

H2 2023

CV19
lipids

H2 2023(ex. CV19)

Volumeleverage

Price/mix

Variable
remuneration& other

H1 2024*H2 2023 comparator excludes contribution from £48m of sales of CV19 lipids. No CV19 lipid sales are expected in 2024.

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Financial performance

Improved free cash flow and disciplined capital management
Cash flow, £m

H1 2024

H1 2023

EBITDA
Working capitalInterest & tax

184.5

219.2

43.5

(9.7)

(33.4)(52.3)

Other cash movements
Net cash from operating activities
Net capital expenditure(0.1)(13.0)

194.5

144.2

(69.7)(76.1)

2.3

5.0

(8.8)

(8.0)

4.4

7.7

122.7

72.8

(86.6)(85.1)–(35.1)

–

(4.4)

(7.9)
28.2

(14.9)(66.7)

H1 2024

FY 2023

Net debt

507.9

537.6

Net debt/EBITDA

1.4x

1.3x

Interest received
Payment of lease liabilities
Exceptional items
Free cash flow
Dividends
Acquisitions
Business disposal
Other cash movements
Net cash flow

• Operating cash flow up
by £50m• Driven by £44m working
capital inflow••

Payment of CV19 lipids
receivable from FY 2023;
Management of net working
capital days

• Continue to expect ~£150m
capex this year
• Free cash flow up 69% to£123m• Leverage within target rangeof 1-2x at 1.4x

Reported basis

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Croda
Croda International
International Plc
Plc

03 Future performance
drivers
Steve Foots
Group Chief Executive Officer

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Future performance drivers

Well positioned for earnings growthTechnology
trends intact

Capital invested to drive future growthDriving fast growth in Asia
• Solus Biotech acquisition• Shanghai claims lab• Guangzhou production• New Indian manufacturing

Sustainable
ingredientsMove tobiologics

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Consumer
Care

Scaling Pharma• Hyderabad small molecule lab• Singapore nucleic acid lab• Capital projects in USA
and UK on track

Life
Sciences

Driving earnings growth• M&A value creation• Cost control• Capital discipline

Operational
efficiencies

Near-term priorities• Driving
Beauty Careperformance• Capturing growthof L&R customers• Focused on innovationin Crop Protection• Accelerating conversionof Pharma pipeline• Strong operational
improvements and cost
control21

Future performance drivers

Driving Beauty Care performance – improving leading indicators
Increasing innovation

Sustainable ingredients growing

Higher sales volumes

Localising our approach

Impact valued by customers

Regaining share in North America

Cradle-to-gate carbon footprint data for

+1.5

ppts*
Beauty Care NPP %>80%

of product
codes

>40%
lost sales volumes regained

Customer innovation projects+34%+33% CAGR

2022

2023

2024

ECO sales growth(H1 2024 vs. H1 2023)~65%
capacity utilisation across key
shared sites globally in H124

*Constant currency.

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Future performance drivers

Beauty Care – tailored offer to customers of all sizes
Growing global market – L&R
customers increasingly important

Investment focused on fastest-growing markets

L&R share of beauty product launches
93%
85%

Skin

Beauty Care – R&D investment
enhancing customer proximity
EMEA• Dubai, UAE• Daresbury, UK

N America• Princeton, USA

79%

Hair

61%
2023

2013

China case study – L&Rs driving
Croda growth
China 618 shopping festival –top-selling brands (L&Rs in red)
Rank

1

2

3

2024

Kans

Proya

HelenaRubinstein

2023

HelenaRubinstein

Estee Lauder

La MerConsumer Care growth with L&R customers
Constant currency (H1 2024 vs. H1 2023)

Proportion of Croda Consumer Care sales tomultinational vs. local & regional customers

+28%

China

2020

2022

H1 2024

MNCs

28%

25%

22%

L&Rs

72%

75%

78%

Asia
• Shanghai, China• Delhi, India,• Iksan, S Korea,• Singapore

Latam• Campinas,
BrazilGlobal+9%

MNCs are multinational companies. L&Rs are local and regional customers.
A Mintel data snapshot from 2013 to 2023 shows that innovation launches have increased year-on-year in the market in total.
Local and regional businesses notably accelerating their launch speed and quantity, while multinational companies continue to innovate steadily.

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Future performance drivers

Winning with local and regional customers in F&F
Distinctive positioning with
L&R customers

Growing ahead of the market
Reported Croda F&F growth rate (yoy) comparedwith tier 1 peers*>95%
sales to local &regional customers

Investing to support
continued growth
Investing in innovation – Grasse and Dubai

25%

20%

15%

83%
sales outside Europe
and North America

Investing in capacity – China

10%

5%

0%

H1 2022

H2 2022

Croda F&F

Peer A

H1 2023Peer BH2 2023Peer C

Reported currency. *Total F&F growth compared with growth for relevant fragrance/scent division of large F&F companies.

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Future performance drivers

Innovating to develop sustainable Agriculture solutions
L&Rs growing in Agriculture

Asian demand for drone delivery

MPF* coating sales in all regions

Proportion of Crop Protection sales tomultinational vs. L&R customers
2019

2022

H1 2024

MNCs

57%

55%

44%

L&Rs

43%

45%

56%

Croda Agriculture growing with L&Rs
• L&Rs less effected by inventory correction andmore indexed to Asia and biopesticides• China launch; now available across Asia;
leads with all major customers• Sales across Europe, N America and Latam• Strategic choice by Croda to diversify basewith associated investment• Leverages leadership in drift reduction
technology• Low base but growing strongly – ~40%
increase in H124

• In final test with the major seed companies

Reported currency. *MPF is microplastic-free.

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Future performance drivers

Pharma pipelines expanding;innovation coming to market as planned
Industry pipelines expanding

Strong competitive position

Novel lipid-based adjuvants

mRNA Vaccines & Therapeutics
1130
770

New technology coming to market

Unique portfolio of specialty
excipients for Protein andSmall Molecule Delivery

Malaria
Tuberculosis

320

2022

2023
Preclinal

2024

Clinically active

Influenza

No other independent supplier
has equivalent breadth of
Adjuvants needed for futureapplications

HIV
ShinglesGene Editing
650
430
250

2022

2023

2024

Unrivalled portfolio of 2,000+
lipids and polymers for
Nucleic Acid Delivery;
600 added in last 4 years• Will contribute meaningful sales in H2• Customer progressing to regulatory approval• Sampled into 80 projects

Chart shows total global industry pipelines of Nucleic Acid-based drugs using external data. Source: Beacon RNA database.

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Future performance drivers

Operational improvements and cost control
Creating value from M&A

Operational efficiencies

Cost and capital discipline

Growth synergies

New organisational structure

Robust cost control• Utilising global sales network• More responsive to customers• Expected to benefit FY margin by ~0.5 ppt• Sharing R&D capabilities• Businesses accountable for P&L• Leveraging procurement• Leveraging Croda brand• On track for £9m annual savings• Further cost base review in H2

Cost synergies

Simplifying business processes

Capital discipline• Sharing functional support• Automating and harmonising key processes• Close monitoring of inflight projects• Consolidation of sites/offices• One common SAP platform• Prioritising investments by ROIC

• Economies of scale• +34 (‘Great’) customer NPS score• Balanced 5-year plan

Focused on strengthening the Group to deliver strong earnings growth

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Future performance drivers

Conclusion
FY 2024 outlook

Summary• Encouraging H1 for Consumer Care, key strategic
Pharma platforms and Industrial Specialties• Sequential sales growth versus H2 2023

• Improving operating margins driven by higher sales
volumes, price discipline and robust cost control• Improving operating margin1• Life Sciences impacted by continued destocking in Crop
Protection and consumer health• Emerging from a tough environment reshaped for future1• No signs of an immediate recovery in Crop Protection• Record levels of innovation• Strong free cash flow
• More focused on faster growth and higher value markets• Now expect FY 2024 Group adjusted PBT to be between£260m and £280m at constant currency2

1Excluding sales of CV19 lipids in H2 2023.
2Constant currency expectations are based on the Group’s average exchange rates through 2023. H124 adjusted profit before tax was adversely impacted by £6.5m due to strengthening Sterling.

Assuming 1 July 2024 exchange rates for the remainder of the year, we estimate translation would have a further £5m adverse impact on Group adjusted profit before tax in the second half of the year.
For sensitivity analysis see slide 30.

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CrodaCroda International
International Plc
Plc

Additional financial
information

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29

Currency translation
Sensitivity analysis

H124 currency impact

The US Dollar and the Euro together represent
approximately 65% of the Group’s currency translation
exposure. We estimate that the average annual currencytranslation impact on adjusted operating profit is:

The average rates in H124 were:• £1m per $cent pa• £1m per €cent pa

H124 adjusted profit before tax was adversely impacted by£6.5m due to strengthening Sterling.

Company guidance

Estimated FY24 currency impact• US$1.266 (H1 2023: US$1.234)• €1.170 (H1 2023: €1.141)

Company guidance is provided at constant currency based Assuming 1 July 2024 exchange rates for the remainder ofon the Group’s average exchange rates through 2023
the year, we estimate translation would have a further £5m
which were:
adverse impact on Group adjusted profit before tax in thesecond half of the year.
• US$1.243•€1.149Smart science to improve lives

30Additional financial information

Quarterly sales breakdown
Quarterly sales by sector (£m)
Sector

Q123

Q223

Q323

Q423

Q124

Q224

Consumer Care

236.8

218.8

218.2

212.3

236.8

231.6

Life Sciences

170.8

132.4

125.0

174.1

121.8

124.4

Industrial Specialties

69.1

53.0

43.7

40.3

49.9

51.4

Group

476.7

404.2

386.9

426.7

408.5

407.4

Life Sciences (ex-CV19)

170.8

132.4

125.0

126.1

121.8

124.4

Group (ex-CV19)

476.7

404.2

386.9

378.7

408.5

407.4

Reported sales. Where indicated Q423 excludes £48m of CV19 lipid sales.

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31Additional financial information

Five-year sales performance by business unit
Reported sales 2019-2023 (£m)
Consumer Care

Consumer Care

7% CAGRLife Sciences

Life Sciences

13% CAGR
ex CV19 lipids

F&F

Seed

13% CAGR

Enhancement

Home Care

9% CAGR

12% CAGR

Crop
Protection

9% CAGR

Beauty Care
4% CAGR

Pharmaex CV19 lipids
Beauty Actives

16% CAGR

5% CAGR2019

2020
Beauty Actives

2021
Beauty Care

2022
Home Care

2023
F&F

2019

2020

2021

Pharma (ex. CV19)

Crop Protection

2022
Seed Enhancement

2023
CV19 lipids

F&F CAGR of 13% includes period before Croda ownership to provide a more relevant measure of average annual growth. F&F CAGR from 2021-2023 was 19%.

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32Additional financial information

2024 technical factors

Net finance costs

Effective tax rate

~£20m

~26%

Expected to be at the top end of
previous £15-20m range

dependent on geographic
mix of profit

Working capital
Unwind of CV19 receivables anddisciplined management could
drive modest inflow

Capital expenditure~£150mnet of grants received*Excludes amortisation

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Smart science to improve lives