DAIRY CREST GROUP PLC

1
DAIRY CREST GROUP PLC INTERIM RESULTS TO 30
September 2002
Adding Value Building Brands
2
Highlights

• Adjusted profit before tax down 6.5 to 31.6m
  (2001 33.8m)
• Adjusted earnings per share down 8.3 to 18.9
  pence (2001 20.6 pence)
• Interim dividend up 6.3 to 5.1 pence (2001 4.8
  pence)
• Synergies from Unigate acquisition being
  delivered in full and on time
• Double-digit volume growth by Dairy Crests
  market leading brands
• Sale of Westway site for 18m on 3 October 2002
• Acquisition of St Ivel Spreads 1 November 2002

3
Profit and Loss
4
Earnings and Dividends
5
Operating Results
operating profit before exceptional items and
goodwill amortisation
6
Operating Margin
Based on operating profit excluding exceptional
items and goodwill amortisation
7
Balance Sheet
8
Operating Cash Flow
9
Cash Flow
10
DAIRY CREST GROUP PLC Business Operations
Adding value Building brands
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Headlines

• Continued success of brand building strategy
• Market leading brands continue to outperform
  market sectors
• Acquisition of St Ivel Spreads
• Increasing proportion of profits from added value
  products
• Continuing to invest in industry leading
  facilities
• Delivering Unigate synergies in full and on time
• 54m in super dairies and 49m in Davidstow

12
Spreads
13
Spreads

• Significant financial contribution
• Clover continued growth sales volumes 13
• Country Life butter Spreadable showing good
  growth
• Argento recently launched, with an encouraging
  performance

14
Spreads (cont)

• St Ivel Spreads acquisition
• Branded business Utterly Butterly, St Ivel Gold,
  Vitalite, Carapelli
• Strengthens position across all key sectors
• Expected to generate a return in excess of cost
  of capital in first full year
• Highly cash generative

15
Cheese
16
Cheese

• UKs leading manufacturer of branded and added
  value cheddar
• Continued strong growth in Cathedral City - sales
  volumes 12
• Short term margin pressure in commodity cheese as
  anticipated
• Margins being progressively restored
• 49m Davidstow investment progressing well

17
Liquid Products
18
Liquid Products

• 54m super dairies investment programme on
  track
• Chadwell Heath complete
• Severnside now operational
• Addressing supply imbalance in organic
• Margin pressure in juice raw material price
• Continued strong Frijj growth - sales volumes
  16
• Profits slightly below last year with market
  pressures likely to continue
• Business increasingly well placed to compete
  effectively

19
Fresh Dairy Products
20
Fresh Dairy Products

• Yoplait brand volumes flat
• Supply disrupted by strike in France, May/June
• Petits Filous growth sales volume 14
• Now showing good growth
• Retailer brand yogurt sector demanding
• Cost base restructuring completed
• Basildon plant closed
• YDC joint venture agreement to be extended until
  at least 2012

21
Household
22
Household

• Strong contribution to Groups profit and
  cashflow
• Integration fully completed
• Continuing doorstep decline c 12
• Continued small infill acquisitions
• Managed to reduce cost

23
Ingredients
24
Ingredients

• Performance in line with last year
• Skim milk powder prices at lowest level in 10
  years
• Manage efficiently but look to reduce commodity
  exposure

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Outlook

• Branded and added value strategy continues to be
  major focus
• Provides sustainable competitive advantage
• St Ivel acquisition important step
• Increasing proportion of profits from added value
  activities
• Trading conditions in commodity areas remain
  challenging
• Profits for second half expected to show good
  progress over same period last year

26
DAIRY CREST GROUP PLC INTERIM RESULTS TO 30
September 2002
Adding value Building brands