DAIRY CREST GROUP PLC

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

2. DAIRY CREST GROUP PLC INTERIM RESULTS 2010/11 Agenda H1 2010/11 Mark Allen, Chief Executive Financial Review Alastair Murray, Finance Director Current Trading & Outlook Mark Allen, Chief Executive

3. H1 2010/11 Mark Allen Chief Executive

4. Continuing Progress in H1 Benefiting from our broad base • 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 46 49 51 42 H1 10/11 Property Profits £nil million (09/10: £2.3 million)

6. Brands continue to outperform market 4% 1% 46% 5% 10% 70% 5% 2% 69% -1% 7% 32% 0% -1% 2% 10% * 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 2007

7. Continuing good progress in Foods- in addition to ongoing key brand growth • 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

8. Continuing good progress in Dairies • 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

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 emissionssignificantly next year

10. Financial Review Alastair Murray Finance Director

11. Financial Highlights • 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

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

14. Segmental Analysis – Spreads 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

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

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

21. Operating Review and Outlook Mark Allen Chief Executive

22. Trading environment • 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

23. Foods – a stable environment Butters and Spreads percentage sales on promotion are below last year but still high Promotions October 2008 – September 2010 Volume Sales (Tonnes) Share % Non Promoted vs Promoted Volume - 12 wkly 100,000 100 Non Promoted Promoted Promoted % 90,000 90 80,000 80 70,000 70 60,000 60 48 46 46 50,000 50 44 44 44 44 43 43 42 41 41 41 40 40 40 40 39 39 38 38 40,000 40 34 33 33 32 32 31 30,000 30 20,000 20 10,000 10 0 0 October 2009 September 2010 October 2008 Source: Nielsen

24. Foods – a stable environment And it is a similar story for branded cheddar Branded Cheddar Promotions October 2008 – September 2010 Volume Sales (Tonnes) Share % Non Promoted vs Promoted Volume - 12 wkly 20,000 100 Non Promoted Promoted Promoted % 18,000 90 16,000 80 69 69 69 67 14,000 70 66 65 65 64 65 65 64 63 63 63 63 63 62 60 60 60 60 59 59 58 58 58 57 12,000 60 10,000 50 8,000 40 6,000 30 4,000 20 2,000 10 0 0 October 2009 September 2010 October 2008 Source: Nielsen

25. Foods – a stable environment Input price increases are manageable 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

26. 24 Projects under development 57 Ideas or concepts 52 Projectsbeingscoped 44 Products in scale-up 46 Products launched Gate 0 Resource Approval Gate 2 Scale up Gate 3 Launch Gate 1 Development 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

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

28. But our Dairies business remains strong • 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

29. Our Dairies business A robust, diverse and sustainable business model Reducing risk self-balancing seasonal milk supply, cream used for Country Life butter Leading position in flavoured milk FRijj, own label flavoured milk 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

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 providesstability and opportunities for profitable growth

31. Milk Purchasing strategies add value to our relationship with suppliers and customers • Dairy Crest drives innovation in retail milk pools • 1999 M&S and Waitrose groups • 2007 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

32. milk&more can make a real difference • Meeting consumers’ needs with planned top-ups and emergencies • Weekly sales averaged £800k during September 2010 • 12 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. And growing volumes with majorretailers allow us to reduce sales to middle ground • 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 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

36. Questions?