1. Simulation - Slide 1 © The Delos Partnership 2005 Tesco Simulation Brief Scenario and Roles

2. Simulation - Slide 2 © The Delos Partnership 2005 There will be three teams; Dairygold – Kevin, Seamus and Cormac Kerry Group – Donal, Barry, Michael, Gordon Tesco Ireland – Brendan, James, John & Paul Simulation

3. Simulation - Slide 3 © The Delos Partnership 2005 Timings Plan Kerry, Dairygold and Tesco – 0800 to 0900 (All) Do – Tesco & Kerry 0900 to 0945 Do – Tesco & Dairygold 0945 to 1045 Check Outcomes – 1100 to 1130 (All) Action Plan – 1130 to 1230 close (All)

4. Simulation - Slide 4 © The Delos Partnership 2005 Tesco have held supplier conferences to communicate the 2005 interims and their key business thrusts for 2006 and beyond. Board members were present to add gravitas to the event and provide input on business development and customer / consumer needs. The top 150 suppliers have also been invited to the TWIST programme where they can spend a week in stores. Tesco are aware of the criticism that Supermarkets sometimes receive for their relationships with their suppliers and know that a successful and sustainable food business needs to work in partnership with its suppliers. This involves building long term supplier partnerships to provide a stable supply and increased innovation for Tesco customers, resulting in increased volumes for suppliers. Tesco is prepared to work with selected suppliers to help improve processes and increase productivity, and the many businesses which grow with Tesco know that this benefits them by increasing their profitability. Tesco are a signatory to the UK Department of Trade and Industry's (DTI) Supplier Code of Practice, and fully support its objective of ensuring suppliers are given a fair deal. They have not had any complaints from suppliers under the Code and since its introduction have run tailored training programmes for all Tesco buyers to ensure understanding of the Code and full compliance. The 2006 Tesco Challenge

5. Simulation - Slide 5 © The Delos Partnership 2005 The 2006 Tesco Challenge To help source local products Tesco set up regional buying teams, with the objective of increasing local lines and labels. 2006 will be a challenging year for Tesco to continue to deliver double digit profitable sales growth. Energy prices and falling consumer spending are major concerns. Tesco Commercial and Purchasing are tasked by the Board to deliver an additional €300m of new savings in 2006 and reduce the overall number of suppliers. There is a need to develop new strategies and sources especially in Central Europe and the Far East as part of Tesco ambitious growth strategy covering four key areas – core UK business, international, non-food business, and retailing services. Kerry, Glanbia, Unilever and Northern Foods have been informed that Tesco expect higher LTA’s and better customer service levels in 2006 and have been invited to present their 2006 proposal against the background of potentially higher sales. As the No 1 Retailer, Tesco expect to continue to buy the best possible products and services at the best prices, so that savings can be passed on to customers. They are experts in leveraging suppliers, making the most of Tesco assets, and operating internationally.