Polymer Chemicals 2000 Turnover 216M Operating Profit 23M

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1 Yule Catto Co plc Results for the year
ended 31 December 2001
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Highlights

• SUCCESSFUL ACQUISITION OF REMAINING 50 OF HARLOW
  CHEMICAL COMPANY LIMITED FOR A CONSIDERATION OF
  54.6 MILLION
• 11 IMPROVEMENT IN PROFIT BEFORE TAXATION,
  AMORTISATION OF GOODWILL AND EXCEPTIONAL ITEMS TO
  40.3 MILLION
• ADJUSTED EARNINGS PER SHARE UP BY 12 TO 18.9
  PENCE
• FURTHER INCREASE IN DIVIDEND TO 12.0 PENCE PER
  SHARE
• 20 MILLION MALAYSIAN GREENFIELD SYNTHETIC LATEX
  PLANT COMMISSIONED ON TIME EARLY 2002
• CREATION OF GLOBAL WATER-BASED POLYMER BUSINESS
  OFFERS EXCITING OPPORTUNITIES

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SEAN CUMMINS Finance Director
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
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TURNOVER BY DESTINATIONTotal Company
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
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PBT BY ORIGIN - TOTAL
Exchange Rates Average for Year 2001
2000 Euro 1.61 1.64 Malaysian Ringgit
5.47 5.75 Mexican Peso 13.42 14.34 South
African Rand 12.60 10.54
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
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FINANCIAL RATIOS
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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

• Global water-based polymer business created under
  Synthomer banner

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International Technology
Individual Service
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Marketing Statistics

• 400,000 wet tonnes sales
• Sales to over 40 countries
• Market leader in
• - Vinyl Acetate and Acrylic based Emulsions for
  
• Surface Coatings
• Adhesives
• Textiles
• PVC polymerisation stabilisers
• Nitrile latex for dipping
• SBR Latex
• Construction, Textiles Adhesives
• Solid Vinyl Acetates
• Haircare, Sound damping Adhesives
• Liquid Polybutadienes

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SYNTHOMER SALES BY INDUSTRY
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Production Sites

• Dispersions Stallingborough/Batley (UK),
  Mouscron (Belgium),
• Dammam (Saudi Arabia)
• PVOH PVA Harlow (UK)
• SBR Latex Stallingborough (UK), Langelsheim
  (Germany),
• Kluang (Malaysia)
• Compounding Ossett (UK), Mouscron (Belgium),
  Oss (Netherlands)

Kluang (Malaysia), Durban (South Africa)
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Production Sites
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POLYMER CHEMICALS

• Global water-based polymer business created under
  Synthomer banner

• Good demand for emulsions, SBR and nitrile latex

• Raw material prices fall and margins
  re-established

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Raw Material Prices
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POLYMER CHEMICALS

• Global water-based polymer business created under
  Synthomer banner

• Good demand for emulsions, SBR and nitrile latex

• Raw material prices fall and margins
  re-established

• New nitrile latex plant commissioned early 2002

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Dipped Nitrile Products

• NBR Latex
• Thin Nitrile gloves for medical use electronic
  industries
• Lined and unlined gloves for industrial
  applications

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POLYMER CHEMICALS

• Global water-based polymer business created under
  Synthomer banner

• Good demand for emulsions, SBR and nitrile latex

• Raw material prices fall and margins
  re-established

• New nitrile latex plant commissioned early 2002

• Investment approved for substantial new emulsion
  capacity in Belgium and South Africa

• Slow PVC industry worldwide holds back Alcotex
  but further penetration for new secondary grades

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PHARMA FINE CHEMICALS

• Omeprazole already largest selling product

• US patent litigation in progress with resolution
  likely in 2002

• Other generics weaker in 2001 - outlook brighter
  supported by launch of four new products

• Changes/delays to ethical contracts

• Major new pilot plant commissioned

• Market consolidation benefiting demand for
  flavours and fragrances

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PERFORMANCE CHEMICALS

• Ultramarine achieves further progress and new
  market applications identified

• Raw material supply and production difficulties
  hold back inorganic sales

• Hair dye and photochromic products deliver growth

• Indian joint venture moves into profit with
  strong colour developer demand

• Targeted efficiencies emerge at Consumer Chemicals

• Weak market conditions for small French inks and
  dispersions operations

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OUTLOOK

• Integration of water-based polymer businesses
  well received by customers
• Timely start up of Malaysian latex facility to
  meet growing nitrile dipping opportunities
• Solid emulsion and synthetic latex demand plus
  more favourable raw material prices
• Resolution of US Omeprazole patent litigation
  ever nearer
• New markets for performance chemical products
  support medium term growth
• Sustained focus on cash generation

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1 Yule Catto Co plc