1. 1 Dairy Crest Group plc Annual Results 2012 24 May 2012 DOING THE RIGHT THING

2. Preliminary Results For the year ended 31 March 2012 24 May 2012 DAIRY CREST GROUP plc

3. Agenda 20011/12Mark Allen, Chief Executive Financial ReviewAlastair Murray, Finance Director Looking ForwardMark Allen, Chief Executive DAIRY CREST GROUP plc

4. Mark Allen Chief Executive 2011/12

5. 5 Strong growth in Foods, continuing progress with key brands – Revenue +10% Decisive action in Dairies – restore profitability in medium term – Revenue -2% Adjusted profit before tax maintained at £87.4m (2011: £87.6m) Increased shareholder returns – dividend up 4% to 20.4p per share Good performance in challenging trading conditions Sales up – adjusted profits stable – dividend up

6. 6 Our broadly based business provides stability 102 106 108 109 Strong performances from Spreads and Cheese have compensated for a difficult year in Dairies

7. 7 Despite an even more challenging year for consumers, retailers and dairy processors alike For consumersWho faced real increases in food prices For retailersIntense competition Falling consumption For dairy processorsIncreasing commodity costs Falling returns from dairy commodity markets FOOD INFLATION +5% DAIRY CREST: COMMODITY COSTS +£80 MILLION YOY PRICE WARS RETAIL MILK PRICE April 2011 £1.25 / 4 pts March 2012 £1.18 / 4 pts BULK CREAM PRICES March 2011: £1.55/litre June 2011: £1.85/litre March 2012: £1.08/litre

8. 8 Against this background Dairy Crest maintained adjusted profit at £87.4 million Our consistent strategy proves its worth Build market leading positions in branded and added value markets 11% increase in sales of key brands 10% increase Foods revenues milk&more weekly sales > £1.2 million Focus on cost reduction and efficiency improvements Efficiency projects have delivered £22 million Further £20 million in pipeline for 2012/13 Plans to close two non-core Dairies Improve quality of earnings and reduce commodity risk Foods Revenues up to 34% of Group (2007: 29%) Successful innovation: 10% of sales from products and services <3 years old Generate growth and focus the business through acquisition & disposals Strategic Review of St Hubert Purchase of MH Foods

9. 9 Key brands: another year of strong growth *DC value sales 12 months to 31 March 2012v 12 months to 31 March 2011 ** Nielsen, IRI data 52 weeks to 31 March 2012 *** DC value sales 12 months to 31 March 2012 v 12 months to 31 March 2007 12% 16% -1% 19% 4% 27% 1% 12% 7% 0% 100% 35% 1% 60% 54% 84% 0% 6% 2.5 0.1 1.3 0% 6% 0.3 1.3 Core Brand MarketBrand Growth 11/12* Market Size (£bn) Market Growth 11/12** 5 Year Brand Growth 11/12 v 06/07 *** UK Cheese UK Butter Spreads Margarine French Non- Butter Spread Fresh Flavoured Milk

10. Achieved target to have 10% of sales from products and services launched within the last three years Recent innovation: milk&more, Jugit and ‘lighter’ products have provided a strong base… …that exciting new products launched in 2011/12 have built on 10 Innovation: delivering for consumers and retailers

11. 11 Ongoing focus on cost reduction has contributed to a solid year and allowed increased marketing investment Cost reduction – an essential part of the mix £million10/1111/1212/13 Production efficiencies 57  Overheads 53  Purchasing 59  Distribution 53  Total 202220 (minimum) £75 million three year investment programme for liquid dairies on track Consultations on closures of Aintree and Fenstanton underway

12. 12 Strategic review of French spreads business progressing to plan - A successful business but Dairy Crest was unable to make further synergistic acquisitions as envisaged in 2007 Strength of St Hubert confirmed during the year ended 31 March 2012 -Record high profits -Record market share Disposal would reduce debt and provide alternatives -Releasing some proceeds to shareholders -Investing in core business -Making strategic UK branded chilled and dairy acquisitions St Hubert – review progressing to plan

13. 13 Continue to make progress with Corporate Responsibility -40 pledges developed during the year to add transparency and aid reporting -Highlights include a reduction in workplace accidents and a significant reduction in carbon footprint Take practical approach and align with commercial strategy -Environmental savings improve profits -Increase number of women by targeting return to work after maternity leave Acting responsibly across the supply chain BITC – Gold Award – highest new entry in BITC Index 2012

14. 14 Working with dairy farmers Strengthened support package -Water conservation -Herd health improvements Increasing amount of milk bought direct Introducing flexible new contracts -Fixed price -‘Farm business’ Paying fair, market-related milk prices -Milk prices have increased steadily during the last two years -Recent cuts disappointing but unavoidable given weak markets since year-end

15. Alastair Murray Finance Director Financial Review

16. 16 Adjusted profit before tax* maintained at £87.4m (2011: £87.6m) Adjusted earnings per share* up 5% to 49.4p (2011: 47.1p) Exceptional non-cash impairment charges in Dairies lead to reported loss Final dividend up 4% to 14.7p (2011: 14.2p) – total dividend 20.4p (2011: 19.7p) Net debt increased by £24.8m to £336.4m (2011: £311.6m) Financial highlights * Before exceptional items, amortisation of acquired intangibles and pension interest.

17. 17 Income Statement * Before exceptional items and amortisation of acquired intangibles £m2011/122010/11 Profit on operations*108.7108.4 Finance costs(21.0)(20.6) Share of associate net loss(0.3)(0.2) Adjusted profit before tax*87.487.6 Other finance income - pensions5.5- Exceptional items(93.9)(1.1) Amortisation of acquired intangibles(9.1)(8.7) (Loss)/Profit before tax(10.1)77.8 Taxation(7.0)(20.3) (Loss)/Profit after tax(17.1)57.5

18. 18 Segmental analysis – Cheese Volume growth despite pack size reduction Revenues up - comparative includes three months of Wexford Cathedral City clear leader in the branded everyday cheese category New Davidstow cheddar brand growing Chedds launch and strong NPD pipeline Improved efficiencies at Davidstow and Nuneaton £m2011/122010/11 Revenue229.6223.1 Profit35.528.0 Margin15.5%12.6%

19. 19 Strong sales growth for St Hubert Omega 3 and Clover Successful launch of two new products in France Continued efficiency improvements delivered with more to come Strong profit delivery and increased A&P £m2011/122010/11 Revenue328.7285.5 Profit63.053.3 Margin19.2%18.7% Segmental analysis – Spreads

20. 20 Segmental analysis – Dairies Tough trading conditions exacerbated in H2 by falling cream realisations Continue to focus on cost, quality and service Increased sales of new products – milk&more, FRijj The Incredible and 1%milk Action taken to restore Dairies’ margins by increasing efficiency and capacity utilisation Significant exceptional impairment of fixed assets and goodwill £m2011/122010/11 Revenue1,069.01,089.8 Profit10.227.1 Margin1.0%2.5%

21. 21 Exceptional Items £mP&L ChargeCash Impact Depot rationalisation costs(5.3) Impairment of Dairies assets and goodwill(81.7)- Clover rationalisation costs(2.6)(0.2) Bad debt provision(4.3)- OFT settlement (incl costs)-(7.3) Wexford onerous contract costs-(0.9) Total(93.9)(13.7)

22. 22 £mMar-12Mar-11Change Fixed assets, goodwill & intangibles713.4799.6(86.2) Inventories187.8164.523.3 Debtors less creditors(134.9)(124.2)(10.7) Pension deficit(79.8)(60.1)(19.7) Deferred tax(69.4)(86.3)16.9 Net debt(336.4)(311.6)(24.8) Other(6.4)(16.4)10.0 Net assets274.3365.5(91.2) Balance Sheet

23. Pensions 23 IAS-19 deficit as of March 2012 - £79.8m (2011: £60.1m) Annual contributions of £20m agreed for 2010-2013 Benefits from asset outperformance and cash contributions offset by reduced discount rate for calculating liabilities Continued work on de-risking the Scheme - ETV exercise removed £14.6m of liabilities

24. 24 * Before exceptional items, amortisation of acquired intangibles and share of associates ** Including amortisation of grants *** Share based payments and profits on asset disposals £m2011/122010/11 Adjusted profit on operations* 108.7 108.4 Depreciation & amortisation** 33.5 33.9 Exceptional Items (13.7) (3.7) Pensions (21.0) (21.7) Other*** (2.4) (0.5) Working capital (20.6) 11.7 Cash generated from operations 84.5 128.1 Capital expenditure (net of grants) (53.1) (48.5) Operating cash flow 31.4 79.6 Operating Cash Flow

25. 25 £m2011/122010/11 Operating cash flow31.479.6 Interest(23.6)(19.8) Tax(14.1)(16.1) (6.3)43.7 Dividends paid(26.5)(25.4) Proceeds from disposal of assets12.62.5 Acquisition/disposal of businesses Other (12.3) 0.1 3.9 (0.1) Net cash flow(32.4)24.6 Foreign exchange movements7.61.0 Movement in net debt(24.8)25.6 Opening net debt(311.6)(337.2) Closing net debt(336.4)(311.6) Net Cash Flow

26. 26 Net Debt history

27. Summary 27 Adjusted profit before tax maintained in a tough year Pre-tax loss mainly caused by non-cash goodwill impairment Small increase in IAS-19 pension deficit Good year-end net debt position despite cash outflows for - 2 nd year of Dairies investment -Acquisition of MH Foods -Additional cheese stock to allow further growth -OFT fine Business has renewed long term facilities and has 1.3 turns of headroom in important net debt: EBITDA covenant

28. Mark Allen Chief Executive Looking Forward - Restoring Dairies - Building on UK Foods

29. 29 Focus on cost reduction and efficiency improvements Improve quality of earnings and reduce commodity risk Generate growth and focus the business through acquisitions and disposals Build market leading positions in branded and added value markets Looking forward We will continue with consistent strategy We plan to restore our Dairies business to a satisfactory level of profitability in the medium term And build on the strength of our Foods business

30. 30 Restoring Dairies – a clear plan in a market with potential UK liquid milk – a large, complex, cyclical market that Dairy Crest can benefit from -6 billion litres of milk consumed each year -Annual retail milk sales alone over £3 billion -A multi-layered supply chain where expertise counts Dairy Crest has around 25% market share Dairy Crest has a clear vision of success -Strategy driven by profitability -Right volumes at right price Decisive action since year end to build on ongoing operational improvements -Two dairies to close (subject to consultation) -Depot closures -Head Office reorganisation -Reduced milk purchase prices

31. 31 A clear vision of where we want to go Focused well invested dairies supplying major retailers, residential customers and selective ‘middle ground’ customers Efficient distribution from the right dairy and depot network Leaders in flavoured milk – FRijj and retailer own brand Grow milk&more With a strong, profitable farmer supply base And what we have to do to get there Ongoing drive for efficiencies Complete our three year, £75 million investment programme Use depot network to minimise distribution costs Grow our brands and innovation Focus on key customers

32. 32 Operational Improvements We have driven significant improvements in our Dairies operations over recent years

33. 33 Dairies processing – a balanced footprint…. We compete on cost, quality and service Our focus is on 3 core well- positioned, well invested liquid dairies Processing milk with the same equipment operated by our competitors Backed up by specialist cream and glass bottling dairies

34. 34 With market-leading distribution…. Focus and transparency improved by organisational changes Annual cost of milk collection and distribution > £120 million Projects underway to implement advanced planning tools Collaboration with key customers to tackle higher costs Extensive depot network makes Dairy Crest different Ongoing projects to reduce cost of operating depots

35. 35 And with 2 strong branded propositions…. FRijj  The UK’s leading flavoured milk brand with retail sales c. £50 million  In strong growth after investment in capacity  With more innovation coming soon milk&more  Continuing to grow despite challenging economic environment  >200,000 active customers generating weekly sales consistently over £1.2 million  Focus on customer service

36. 36 Restoring Dairies – summary This business operates in a large market with potential It has a good market share and brings critical mass to Dairy Crest We have a well-invested solid base and strong brands to build on With a track record of driving operational improvements Short-term market weakness has resulted in unsatisfactory profits We have a clear plan to remedy this We will continue to manage the business to make progress in challenging markets Aiming to achieve 3% on sales Our target is to be able to restore Dairies to a satisfactory level of profits in the medium term

37. 37 Building on UK Foods We have created the UK’s leading portfolio of dairy brands in large, mature markets

38. 38 Investment in consumer understanding leads our decision making -Promotional background -Smaller packs v higher prices Ongoing communication with consumers -TV advertising core -Supplemented by other media -Promotions Continuous new product development -Cathedral City big slice -Clover seedburst -Selections Our focus is on the consumer 38 “We want to earn consumers’ loyalty by providing healthy enjoyable, convenient products. We aim to meet consumers’ needs and go where this takes us” Dairy Crest Vision

39. 39 It is not just about marketing..... success requires continuous investment in supply chain -Consistent quality -Record packing speeds and efficiencies at Nuneaton -Increased flexibility at Frome -Investment in modern tools to help sales force -Packaging innovation – for example single spreads tubs Supported by a well invested strong supply chain 39

40. Source: Nielsen. 31 March 2012 Resulting in strong growth in sales of key brands 40 266 401 Value Sales (£m) Retail sales of Dairy Crest’s 3 key UK foods brands have increased by 51% From £266 million to £401 million in 4 years of unbroken growth

41. 41 Virtuous circle of growth and investment Skillful execution of a well-established strategy Strong key brands Wide customer base We expect to achieve market leading growth and long term margin improvement We will keep building on our UK Foods success Our proven ability to develop brands in mature markets leaves us well set for further profitable growth in our foods businesses 41

42. 42 Summary and current year outlook Summary Sales up – adjusted profits stable – dividend up Strategic review of French spreads business Clear plan for Dairies Build on UK Foods Current year outlook Continued cost discipline Strong momentum in our branded Foods businesses Expect Dairies to benefit from decisive actions 42

43. Questions A video interview with Mark Allen, Group Chief Executive is available at www.dairycrest.co.uk & www.cantos.com