© The Delos Partnership 2005 A Workshop for Dairygold Dairygold Consumer Foods & Tesco Ireland How to minimise the impact on Dairygold’s bottom-line

© The Delos Partnership 2005 Objectives for workshop 1.To prepare for negotiations with Tesco on 10 th November 2.To outline likely Procurement strategies and tactics which Tesco will use and counters for these moves 3.To discuss and develop negotiating strategies which will assist Dairygold in their desired aim to minimise the LTA’s which Tesco will aim to impose 4.To review all aspects of the negotiating process which can be used Meeting skills Presentation skills Negotiation strategies 5.To understand all aspects of Tesco’s process and Supplier Relationship Management to ensure that all aspects of the relationship can be leveraged at minimum cost to Dairygold 6.To ensure that there is minimum impact on Dairygold’s profitability as a result of these key negotiations with Tesco

© The Delos Partnership 2005 Workshop Content 1.Preparation for negotiation around understanding of current position 2.Understanding of complete skills requirements for negotiation 3.Simulation and role play of Dairygold and Tesco Ireland 4.Preparation of Action Plans for negotiation

© The Delos Partnership 2005 Dairygold Workshop Agenda November 7 th Morning Session Item Objectives and Goals for the Workshop Dairygold Business Strategy Dairygold Financials & 2005 Interim Results Product, Sales & Discounts Strategy / Analysis Customer Contribution Analysis Competition Analysis and Tesco Positioning Dairygold CRM System & Tesco / Customer Agreements Tesco Ireland – Account History, Management, People, Results Tesco – Vision, Strategy & Priorities Tesco – Supply & Procurement Analysis / People Tesco - Simulation Brief and Roles

© The Delos Partnership 2005 Dairygold Workshop Agenda November 7th th Afternoon Session Item Meeting, Presentation & Negotiation Skills Strategic Sourcing – Tesco Process Defining the Deal & Role Play Supplier Relationship Management November 8th th Morning Session Item Tesco Ireland Meeting – Simulation Analysis from the Tesco Simulation What Dairygold will do differently – Defined Tesco Strategy & Approach Other Key Account Management Plans Action Plan Development

© The Delos Partnership 2005 Details of workshop Introduction1.Review and discuss key issues to be addressed in negotiation with Tesco 2.Set aims and objectives for workshop 3.Review Financial results and business plans for for Dairygold in general and Tesco in particular Review of Dairygold relationship 1.Review Dairygold Sales & Discounting strategies 2.Review Customer Relationship Management system 3.Review current agreements 4.Put the Tesco account and negotiations in the context of Dairygold business objectives 5.Review Tesco versus other key account status, positioning and competition strategies. (Templates will be provided by Delos). Preparation for simulation of negotiation 1.Focus in detail on Tesco and Tesco Ireland’s position 2.Prepare for negotiation simulation to ensure this is as realistic as possible for the planned meeting with Tesco on November 10 th November 7th Morning - Overview

© The Delos Partnership 2005 Details of workshop Education1.Education on Meeting, Presentation & Negotiation skills 2.The Strategic Sourcing process which Tesco use 3.Tesco’s process for RFQ [Request for Quotation] and RFI [Request for Information] 4.Tesco’s Supplier Relationship Management Process Strategy Relationship review 1.Dealmaking and price discounting mechanisms will be reviewed 2.Review of the two way relationship between Dairygold and Tesco Supplier Relationship management and Performance measurement 1.What do Tesco expect of suppliers in their Supplier Relationship Management process 2.What performance measures will Tesco expect to use, and how will Dairygold perform against these. 3.What will Tesco concede? November 7th Afternoon - Overview

© The Delos Partnership 2005 Details of workshop Simulation1.Simulation of Tesco meeting and negotiation with teams for Tesco, Dairygold and observers - Delos [Paul] to Lead “Tesco Ireland” - Delos [Gordon] to observe Simulation review1.Review of Meeting simulation 2.Agreement of the critical success factors for the 10 th November meeting – what will success look like Action Plan development 1.Develop Action plans for the negotiation 2.Set goals and objectives and focus for the meeting 3.Develop plan for developing relationship with Tesco November 8th Morning - Overview

© The Delos Partnership 2005 Paul Warrick has substantial Strategic Purchasing & Global Sourcing expertise and a career track record of delivering outstanding supply side value improvement. He has held global purchasing leadership roles with ICI PLC, Elementis PLC, Lonza Biopharmaceuticals, Crown Cork & Seal, Georgia Pacific and Borden (Hexion). Paul has complete spend category and project management expertise and recently led major improvement projects for covering Inventory Reduction, Global Logistics & Freight, Strategic Sourcing of key Raw Materials with volumes in excess of 500,000 tonnes and E Commerce. In addition to his considerable experience of Chemicals, Biopharmaceutical, Packaging, Paper, Coatings, Adhesives and Metals industries, Paul has also worked with leading food, retail and consumer businesses. In his Purchasing role for Borden, he was also the global Casein buyer and has first hand knowledge of the leading Irish milk producers. Paul has a chemistry & polymer science degree, is Six Sigma and World Class Manufacturing trained and has corporate and interim career experience of working with a number of world’s biggest consulting companies on Supply Chain and Purchasing transformation projects. He has provided Procurement, Supply Chain and Business strategy support and advice to numerous blue chip clients. PAUL WARRICK

© The Delos Partnership 2005 Gordon Hammond has strong supply chain and client relationship management skills that have been developed both within industry as a manager,and as a change agent and educator working in a variety of blue chip companies. Prior to joining The Delos Partnership he worked for MML between 1994 and During this time, before the management buy out from ICL, he was Head of Division during which time he returned MML to profit and raised turnover by 500%. He built the reputation of the business to focus upon delivering business benefits for clients and worked with a variety of companies in this time including BAE SYSTEMS, Caterpillar, Lawson Mardon, Rolls Royce and Westland Helicopters. From 1990 to 1993 he was an associate of Mike Salmon’s MRP Ltd. Before joining MRP Ltd, Gordon worked for Cincom Systems’ Manufacturing Systems Division as Consultancy Manager for a period of ten years. His role included profit and loss responsibility for pre and post-sales support team. The proactive approach taken was to ensure that Cincom’s clients implemented their business solution in an effective way so that they achieved business benefits. Clients included Rosyth Royal Dockyards, Birds Eye Walls, Dowty Aerospace, ICI Agrochemicals, ICI Pharmaceuticals, Marley. MEL, Smith & Nephew, Thorn EMI Electronics (Radar, Computer Systems and Defence Divisions) and Vickers Systems He has worked in a variety of supply chain management roles. At Chesebrough- Ponds Gordon was Inventory & Planning Manager. He project managed the company’s MRPII implementation which delivered increased staff productivity as well as significant customer service and stock turn improvements. Whilst at Rediffusion he managed a team of personnel that worked with the operating companies to increase both profitability and productivity. Projects ranged from subscriber payment methods, supply chain solutions for improved customer service and reduced stock holding. In addition he was responsible for the set up of all processes and procedures for an electrical discount warehouse chain selling goods direct to the public. Gordon is a Fellow of The Institute of Operations Management and currently tutors on two of their public course programmes. He was Chairman of the Institute for two years. He holds a degree in Industrial Engineering. GORDON HAMMOND