carr s milling industries plc strong trading momentum interim results presentation 11 april 2011

1. CARR�S MILLING INDUSTRIES PLC �strong trading momentum� Interim Results Presentation 11 April 2011

2. 2 Results Overview Revenue increased 27.0% to �204.7m (2010: �161.3m) Pre-tax profit increased 48.9% to �7.9m (2010: �5.3m) Fully diluted EPS increased 52.6% to 58.6p (2010: 38.4p) First interim DPS increased 8.3% to 6.5p (2010: 6.0p) Net debt up 44.5% to �28.2m (2010: �19.5m)

3. 3 Agriculture � Trading Enlarged retail business in the North of England and Scotland (total number of stores: 19) Encouraging early performance by Kuhn franchise for agricultural machinery Fuel distribution increased volumes and margins in severe winter conditions �35.6m revenue with positive impact of depots opened during 2010 in Langwathby (Cumbria) and Lancaster Excellent customer service in rural community Number of customers increased by 22% Plans to increase market share further

4. 4 Agriculture - Feed Mixed UK business environment Favourable farmgate prices - except milk which remains unsustainably low Excellent customer service UK animal feed block business, Caltech, benefited from strong demand and integration of Scotmin Nutrition (feed supplements business acquired in June 2010) UK compound feed volumes and margins maintained SP increases offsetting higher input costs - wheat prices up 70% Share of associate company profit after taxation increased by �0.3m as a result of operational efficiencies Overseas benefited from launch of Crystalyx in New Zealand and entry into France. Recovery in US feed block sales and profitability slowed during heavy snow New plant in upstate New York on track to start production of AminoMax in August 2011

5. 5 Agriculture - Fertiliser Strong demand resulting from high cereal prices and early buying by a large number of farmers anticipating higher raw materials prices March and April are peak months for fertiliser sales; a significant proportion of sales normally made in this period already made in H1 Positive contribution from AVAIL (phosphorous fertiliser enhancer) and environmentally-oriented products. SPs, volumes and margins increased during H1 and expected to be significantly up for the year overall Inventory acquired ahead of expected demand will unwind during H2

6. 6 Agriculture � Fertiliser

7. 7 Food Continuing challenges of overcapacity in UK flour market Stable sales volumes despite milling wheat prices more than doubling since June 2010 Continuing focus on capex to reduce costs Significant annual savings will offset continuing pressure on margins Responding to pressure on SPs by developing speciality products now being sold through supermarkets

8. 8 Food

9. 9 Engineering Profit increase on lower revenue reflecting high material content and lower margins for contracts completed in 2010. W�lischmiller profit similar to last year with H2 to benefit from expected contract completions in Germany, Japan and China � total value �4.5m Order book strong through to late 2013 � significant contracts won from businesses engaged in nuclear activities in Russia, Germany and France Recruiting additional skilled engineering personnel Carrs MSM in line with last year with H2 activity expected to increase Inventory reduction by major customer Demand for manipulators for de-commissioning Bendalls engaged in 2 contracts worth �4m+ scheduled for completion by end 2011 Evaporator D project at Sellafield Nuclear plant in USA

10. 10 Update on acquisitions

11. 11 Income Statement

12. 12 Cash Flow Statement

13. 13 Summarised Balance Sheet Make the point that you have increased turnover by �120m whilst still managing working capital very well Make the point that you have increased turnover by �120m whilst still managing working capital very well

14. 14 Progressive dividend

15. 15 Outlook Agriculture Agricultural markets mainly positive Stable UK fertiliser market Further progress from feed block and supplements in UK, Europe, New Zealand & USA Opening of AminoMax plant in upstate New York in August 2011 will benefit 2011/12 Further UK expansion in fuel Food Continuing over-capacity in UK flour market Focus on developing speciality products and reducing costs Sustained H1 performance at best Engineering Growing order book and positioned to benefit from demand from nuclear, oil and gas H2 completions by W�lischmiller, Carrs MSM and Bendalls These might be in wrong order / repetivtiveThese might be in wrong order / repetivtive

16. 16 Carr�s Milling Industries PLC APPENDIX

17. 17 Carr�s Milling Industries PLC Established, profitable agriculture, food and engineering group Operations primarily in UK, but also in USA and Germany Strategy of organic and acquisitive growth Progressive dividend policy Highly experienced management team

18. 18 Carr�s Five Year Record

19. 19 Divisional Structure This page should only take about 30 seconds to deliver � the idea is to give a very brief introduction to CM � give people who know CM a quick reminder and give those who don�t know it a birds eye view of the business in very simple language so that they can grasp the basic structure Depending on what you said about the �coherent diversified platform� on the previous slide you should open with a statement that encapsulates this. Also make the point that this has been a record year driven by agric. Then lead into each division: eg � �we have 3 divisions, Agric which account for x% of group profit , Food which accounts for Y and Engineering which accounts for Z. Within Agric the business is broadly split into 3 areas � to start with animal feed, we have an extensive range of feed products and we are the / (one of the?) market leaders in the UK, we also have operations in Germany and the USA: We manufacture 3 tyoes of feed: compound blended feed for dairy beef and sheep (this is your basic feed but we blend to order which is what distinguishes us), a specialty feed which increases milk yield called Aminomax and is unique to us in the UK and lastly feed blocks which improve the health and growth of animals and hence the returns for the farmer. In our Food division we are one of the countries top 3 independent millers, we have an extensive r and d programme to ensure that we blend the highest quality flour and our customers are people like x y z. Engineering is the smallest of our 3 divisions but has great margins �. The key product is robotic arms for the nuclear industry - we the only company in the UK that produces these and we own the IP hence we are a very valuable supplier to the British Nuclear industry.� These words might not be quite right but the aim is to give a high level explanation of what you do AND in one line to explain what your USP is so that its more than just factual � you need to ram the �so what� point home. Don�t worry if the descriptor isn't technically entirely accurate, sometimes you need to use words people understand in order to convey what you mean even though according to industry speak it might not the the way its described (like environmentally protective / environmentally friendly!!) In addition to give a one line This page should only take about 30 seconds to deliver � the idea is to give a very brief introduction to CM � give people who know CM a quick reminder and give those who don�t know it a birds eye view of the business in very simple language so that they can grasp the basic structure Depending on what you said about the �coherent diversified platform� on the previous slide you should open with a statement that encapsulates this. Also make the point that this has been a record year driven by agric. Then lead into each division: eg � �we have 3 divisions, Agric which account for x% of group profit , Food which accounts for Y and Engineering which accounts for Z. Within Agric the business is broadly split into 3 areas � to start with animal feed, we have an extensive range of feed products and we are the / (one of the?) market leaders in the UK, we also have operations in Germany and the USA: We manufacture 3 tyoes of feed: compound blended feed for dairy beef and sheep (this is your basic feed but we blend to order which is what distinguishes us), a specialty feed which increases milk yield called Aminomax and is unique to us in the UK and lastly feed blocks which improve the health and growth of animals and hence the returns for the farmer. In our Food division we are one of the countries top 3 independent millers, we have an extensive r and d programme to ensure that we blend the highest quality flour and our customers are people like x y z. Engineering is the smallest of our 3 divisions but has great margins �. The key product is robotic arms for the nuclear industry - we the only company in the UK that produces these and we own the IP hence we are a very valuable supplier to the British Nuclear industry.� These words might not be quite right but the aim is to give a high level explanation of what you do AND in one line to explain what your USP is so that its more than just factual � you need to ram the �so what� point home. Don�t worry if the descriptor isn't technically entirely accurate, sometimes you need to use words people understand in order to convey what you mean even though according to industry speak it might not the the way its described (like environmentally protective / environmentally friendly!!) In addition to give a one line

20. 20 Key Macro Drivers for Carr�s This slide is a very good idea � again it is educating people / reminding people so make is very simple and clear, lots of detail is not required. It may be that each driver and effect is better on the relevant graph slide such that people have something to look at and you can educate them and then tell them what's happened this year all in one go � thus telling them the same thing twice, once in theory and then demonstrating what you mean in practice with this year as the illustration. This slide is a very good idea � again it is educating people / reminding people so make is very simple and clear, lots of detail is not required. It may be that each driver and effect is better on the relevant graph slide such that people have something to look at and you can educate them and then tell them what's happened this year all in one go � thus telling them the same thing twice, once in theory and then demonstrating what you mean in practice with this year as the illustration.

21. 21 Strategy