DAIRY CREST GROUP PLC Interim results For the period ended 30 September 2010

DAIRY CREST GROUP PLC INTERIM RESULTS 2010/11 Agenda H1 2010/11Mark Allen, Chief Executive Financial ReviewAlastair Murray, Finance Director Current Trading & OutlookMark Allen, Chief Executive

Mark Allen Chief Executive H1 2010/11

4 Continuing Progress in H1 Benefiting from our broad base Build market leading positions in branded and added value markets 5% increase in sales of key brands New fresh milk contract with Tesco Focus on cost reduction and efficiency improvements Efficiency projects set to deliver £20 million Investment in liquid dairies on track Improve quality of earnings and reduce commodity risk Balanced customer base Balanced product portfolio Generate growth and focus the business through acquisition & disposals As suitable value-enhancing opportunities arise Adjusted profit before tax up 5% at £40.1 million Half year debt down 12% from September 2009 to £335 million Confident that we can continue to deliver profits in line with our expectations 4% increase in interim dividend

5 Benefiting from being a broadly based business Another half year of growth Cheese profits rebound to more normal levels Challenging middle-ground dairies market H1 10/11 Property Profits £nil million (09/10: £2.3 million)

6 Brands continue to outperform market * DC value sales 6 months to 30 September 2010 v 6 months to 30 September 2009 ** ACN, TNS data 26 weeks to 2 October 2010 v 26 weeks to 3 October 2009, IRI data 26 weeks to 17 October 2010 v 26 weeks to 17 October 2009 *** DC value sales 6 months to 30 September 2010 v 6 months to 30 September % 10% 2% 7% 1% 2% 46% 70% 69% 32% 10% -1% 5% Core Brand Market Brand Growth H1 v H1* Market Growth H1 v H1** Brand Growth 3 Year*** UK Cheese UK Butter, Spreads, Margarine UK Butter, Spreads, Margarine French non- butter spreads Flavoured Milk -1% 0%

7 Cheese profits rebounding Cheese supply chain becoming increasingly efficient as volumes grow Strong performance in prestigious cheese shows during summer Spreads businesses dealing successfully with higher input costs Cost saving projects at Spreads plants progressing to plan Continuing good progress in Foods - in addition to ongoing key brand growth

8 Profitability (excluding property profits) in line with last year Replacing middle-ground business with high quality retail sales Improving milk&more systems to prepare for further growth Building direct milk supply and leading milk purchasing innovation Driving efficiencies in factories and depots Delivering innovation such as JUGIT Continuing good progress in Dairies

9 Acting responsibly Increasingly recognised as leading the dairy industry First dairy business to be named in prestigious Carbon Disclosure Leadership Index Growing reduced fat brands and 1% fat milk sales Raising money for Macmillan cancer support, now >£550k Member of the The Prince’s Rural Action Programme Biomass boilers at Davidstow will reduce carbon emissions significantly next year

Alastair Murray Finance Director Financial Review

11 Group revenue down 3% to £776.9m (2009: £803.7m) Adjusted profit before tax* up 5% to £40.1m (2009: £38.1m) Adjusted earnings per share* up 6% to 21.4 pence (2009: 20.1 pence) Interim dividend up 4% to 5.5 pence (2009: 5.3 pence) Net debt down 12% to £335.5m (September 2009: £380.4m) * Before exceptional items, amortisation of acquired intangibles and pension interest costs/income Financial Highlights

12 Income Statement

13 Segmental Analysis – Cheese Revenue down due to disposal of Wexford in the half Improved whey returns as commodity markets remain strong Continue to invest in Cathedral City and re-launched Davidstow Year March 10 £’mHalf Year Sept 10 Half Year Sept Revenue Profit %Margin11.5%6.0%

14 Good performance from key brands offset by weaker Utterly Butterly volumes Clover and St Hubert Omega 3 brand performance very strong Margins maintained in a competitive environment, helped by renewed focus on UK cost base Year March 10 £’mHalf Year Sept 10 Half Year Sept Revenue Profit %Margin20.2%19.6% Segmental Analysis – Spreads

15 Segmental Analysis – Dairies Strong volumes in retail milk and successful renewal of key contracts Improved operating efficiencies Doorstep decline continues – improvement to milk&more infrastructure and service will underpin future growth Middle ground remains highly competitive Year March 10 £’mHalf Year Sept 10 Half Year Sept 09 1,081.2Revenue Profit %Margin2.1%2.7%

16 Balance Sheet

17 Operating Cash Flow

18 Net Cash Flow

19 Pensions Summary Reported deficit under IAS19 £137.2m at September 2010 Small decrease from March 2010 (£142.4m deficit) due to ongoing funding payments of £20m per annum Falls in discount rate broadly offset by lower inflation assumptions Full triennial valuation for March 2010 ongoing

20 Continuing to reduce net debt Net debt £335 million, down £155 million v September 2008 Net debt: EBITDA below 2.4x Net debt

Mark Allen Chief Executive Operating Review and Outlook

22 Stable environment for our British and French Foods businesses Dairy Crest produces everyday groceries – less susceptible to downtrading Promotional levels remain historically high but slightly below last year Food inflation, particularly vegetable oil, building but manageable After challenging few months retail milk supply now settled Pressure on middle ground selling prices from increased production and low barriers to entry Dairy commodity markets remain strong and stable Trading environment

23 Promotions October 2008 – September 2010 Source: Nielsen Non Promoted vs Promoted Volume - 12 wkly ,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, ,000 Volume Sales (Tonnes) Share % Non PromotedPromotedPromoted % Foods – a stable environment October 2008 October 2009September 2010 Butters and Spreads percentage sales on promotion are below last year but still high

24 Non Promoted vs Promoted Volume - 12 wkly ,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Volume Sales (Tonnes) Share % Non PromotedPromotedPromoted % Foods – a stable environment Source: Nielsen And it is a similar story for branded cheddar Branded Cheddar Promotions October 2008 – September 2010 October 2008 October 2009September 2010

25 Foods – a stable environment Raw milk prices have increased but are relatively stable Vegetable oil prices are increasing but in a manageable way We have obtained selling price increases to help offset higher milk costs Power and packaging prices broadly stable Input price increases are manageable

26 Foods – responding effectively to the challenges Ongoing commitment to our key brands (media spend up yoy) Selling price increases obtained to help offset cost increases Strong pipeline of innovation with several new launches planned for H2 St Hubert continues to grow market share Cheese & Spreads businesses well positioned Gate 2 Scale up Gate 3 Launch Gate 1 Development 57 Ideas or concepts 52 Projects being scoped 24 Projects under development 44 Products in scale-up 46 Products launched Gate 0 Resource Approval

27 ‘Clone-derived milk claim prompts food agency inquiry’ 3 August 2010 ‘Milk is the new beer as price war erupts’ 31 July August 2010 ‘Milk price war sours Wiseman’ 17 September 2010 ‘Spectre of Britain’s first cattle factory’ 6 August 2010 Dairies environment has been much more volatile ‘Kendall accuses supermarkets of ‘bully boy’ tactics over milk prices’

28 We have a differentiated Dairies business which has advanced strongly over recent years Improvements to quality, service and cost provide a solid foundation Actions taken to reduce risk have increased stability Strong commitment to and increased investment in this business is allowing experienced management team to continue the improvement process But our Dairies business remains strong

29 Strong innovation JUGIT, milk&more, added value milk supply pools Supply 6 major retailers with fresh milk Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose Leading position in flavoured milk FRijj, own label flavoured milk Reducing risk self-balancing seasonal milk supply, cream used for Country Life butter A robust, diverse and sustainable business model Our Dairies business

30 A clear plan for Dairies Build on broad retail customer base Continuous programme of product innovation -FRijj -JUGIT Ongoing investment and focus on cost to drive efficiencies Leverage lead in milk purchasing Convert milk&more opportunity Balanced customer base and product portfolio provides stability and opportunities for profitable growth

31 Dairy Crest drives innovation in retail milk pools M&S and Waitrose groups Sainsbury’s launched SDDG: First joint supply pool (DC & Wiseman) -December 2010 Tesco Sustainable Dairy Group Ambition to ensure all our supplying dairy farmers are aligned either to a customer or a Dairy Crest brand Increased recruitment facilitated by ability to balance seasonal milk supply Milk Purchasing strategies add value to our relationship with suppliers and customers

32 milk&more can make a real difference Meeting consumers’ needs with planned top-ups and emergencies Weekly sales averaged £800k during September depots now in sales growth A further 20 depots have sales decline < 2% Systems improvements will increase customer capacity and tell us more about our consumers The convenience of this service is attracting new customers which leads to higher average spend per customer

33 Over the past 2 years we have increased conventional milk volumes to major retailers and reduced middle ground volumes Major retailers now account for over half of total volumes We will be increasingly selective in middle ground to improve profitability And growing volumes with major retailers allow us to reduce sales to middle ground Dairy Crest conventional milk sales (excluding doorstep)

34 Well positioned through our strong, broadly based business Ongoing investment puts our Foods business in great shape to prosper Differentiated Dairies business has proved resilient in an eventful six months We have a clear plan for future success

35 Summary and outlook Successful first half –Adjusted profit before tax up 5% –Net debt down 12% from September 2009 –Sales of key brands up 5% –Secured new fresh milk contracts with major retailers Confidence demonstrated by interim dividend increase Well placed for future with brand growth, operational efficiencies and selling price increases providing resilience

Questions?