1. DAIRY CREST GROUP PLC INTERIM RESULTS For the period ended 30 September 09

2. DAIRY CREST GROUP PLC INTERIM RESULTS 2009/10 Agenda H1 2009/10Mark Allen, Chief Executive Financial ReviewAlastair Murray, Finance Director Current Trading & OutlookMark Allen, Chief Executive

3. Mark Allen Chief Executive H1 2009/10

4. 4 Delivering on a clear and consistent strategy… Build market leading positions in branded and added value markets Invest in advertising and promotions Focus on Innovation Focus on cost reduction and efficiency improvements Continue to drive efficiencies to finance marketing investment and grow profits Build on decisive action last year Reduce commodity risk to improve quality of earnings Minimise exposure to dairy commodity markets Reduce risk associated with pension scheme Business acquisitions and disposals to generate growth and focus on the business Short term focus on cash generation Medium term return to acquisitions

5. 5 A strong first half with good cash generation - adjusted profit before tax up 9% to £38 million - debt down 22% to £380 million Brand Growth 5 key brands grew by 10% Cathedral City retail sales through £200 million Other Growth Milk sales to major retailers up 10% v last year Over 125,000 registered milk&more customers New Products Key areas of focus health and environment Lighter brands and 1% fat milk growing strongly Cost Reduction Contracted out Davidstow milk collection In consultation to close glass bottling operations at Fenstanton Cash Generation Operating cash flow improved by £45 million Half year debt lowest for 3 years Risk Reduction Closing defined benefit pension scheme Reduced milk volumes into Ingredients

6. 6 Benefiting from being a broadly based business Dairies profits rebound after difficult 2008/09 UK cheese market challenging

7. 7 Brands continue to outperform market * DC value sales 6 months to 30 September 2009 v 6 months to 30 September 2008 ** ACN, IRI, TNS data 24 weeks to 4 October 2009 v 24 weeks to 5 October 2008 *** DC value sales 6 months to 30 September 2009 v 6 months to 30 September 2006 8% 13% 4% 14% 21% 4% -2% -4% 19% 74% 29% 63% 48% 41% Core BrandMarket Brand Growth H1 v H1* Market Growth H1 v H1** Brand Growth 3 Year*** UK Cheese UK Butter, Spreads, Margarine UK Butter, Spreads, Margarine French non-butter spread Flavoured Milk

8. 8 Sales to major retailers up 10% v last year Strong sales of conventional milk to existing and new customers New customers for organic milk New customers and strong market growth for retailer own-label fresh flavoured milk – up 50% milk&more customer base growing strongly 125,000 customers now registered Good progress in Dairies

9. 9 Healthy innovation high on our agenda Key focus on lower fat variants of brands Cathedral City Lighter Country Life Lighter Combined sales +41% Clover Lighter Developing French spreads brands recipes to improve health credentials 1% fat milk sales growing strongly Now 8% of Sainsbury’s total milk sales Plans to launch with milk&more in H2 Gluten Free bakery and Equilibrium Through Fayrefield FoodTec subsidiary

10. 10 Looking after the environment Jugit™ - milk in a recyclable bag, which reduces plastic milk bottle packaging waste by 75% 1.6 million bags sold since launch New improved jug ready Recycled milk bottles Development of UK’s first polybottle containing 10% recycled material, saving up to 13,000 tonnes of virgin HDPE plastic Working to increase percentage of recycled material to deliver even greater savings

11. 11 Ongoing focus on cost and risk reduction Driving efficiency to finance marketing investment and grow profits Contracted out Davidstow milk collection Changed media buying agency In consultation to close glass bottling operation at Fenstanton (30 jobs) Reduced milk volumes into Ingredients H1 2009/10 volumes down 49% v H1 2008/09 Defined benefit contribution scheme to be closed to future accrual from 31 March 2010 Closed to new entrants in 2006 Insurance policies in place for most pensions in payment

12. 12 Cash Generation Operating cash flow* £59 million v £13 million 2008 £110 million repaid in year Half year net debt lowest for 3 years * Cash generated from operation less capital expenditure

13. Alastair Murray Finance Director Financial Review

14. 14 Group Revenue down 1% to £803.7m (2008: £808.2m) Adjusted profit before tax* up 9% to £38.1m (2008: £35.1m) Adjusted earnings per share* up 2% to 20.1p (2008: 19.7p) Interim dividend rebased as previously announced – 5.3 pence (2008: 7.1 pence) Net debt £380.4m (2008: £490.6m) * Before exceptional items, amortisation of acquired intangibles and pension interest costs/income Financial Highlights

15. 15 Income Statement

16. 16 Segmental Analysis - Cheese Higher cost of sales following milk price increases in 2007 and 2008 UK cheese market highly competitive – increased import penetration and higher levels of promotion Continue to invest in promotional activity and marketing – Cathedral City re- launch in second half Year March 09 £’mHalf Year Sept 09 Half Year Sept 08 244.2Revenue131.8127.1 34.3Profit7.918.4 14.0%Margin6.0%14.5%

17. 17 Includes UK Spreads and St Hubert Strong performance from 3 key brands – Clover, St Hubert Omega 3 & Country Life – offset by lower sales of non-branded & other brands which have not been advertised and promoted as heavily Translation benefit on St Hubert profits (approx £1.5m) Year March 09 £’mHalf Year Sept 09 Half Year Sept 08 284.2Revenue137.9135.1 59.5Profit27.025.3 20.9%Margin19.6%18.7% Segmental Analysis - Spreads

18. 18 Segmental Analysis - Dairies Good progress in our retail milk business – volumes up 10% Strong performance by FRijj Improved operating efficiencies, lower raw milk costs and lower balancing volumes Doorstep sales have declined Decline rate of 8.5% lower than last year aggressive milk&more customer acquisition target in H2 Year March 09 £’mHalf Year Sept 09 Half Year Sept 08 1,108.2Revenue528.7540.4 7.9Profit14.32.7 0.7%Margin2.7%0.5%

19. 19 Exceptional Items

20. 20 Balance Sheet

21. 21 Operating Cash Flow

22. 22 Net Cash Flow

23. 23 Pensions Summary Reported deficit under IAS19 £178.0m at September 2009 Significant increase from March 2009 (£63.3m deficit) due to declines in credit spreads and impact on liability discount rate Partly offset by strong equity returns in the half IAS19 deficit more reflective of actuarial (funding) deficit

24. 24 Pensions Summary Range of actions taken to de-risk the scheme: 2 nd tranche of insurance taken out in June 2009 – almost all retired members hedged through insurance contracts Scheme closing to future service accrual in 2 nd half – will be effective from April 2010 £20m per annum agreed as additional scheme contributions going forward Equity exposure reduced since September 2009 following strong returns

25. Mark Allen Chief Executive Current Trading and Outlook

26. 26 Challenging but relatively stable Consumers continue to look for “value” Some signs of consumer confidence returning, but fragile Own label share of cheese and butter, spreads, margarine markets falling as brands continue to promote strongly Signs that dairy commodity markets are improving but recovery not yet conclusive Trading environment

27. 27 Responding effectively to the challenges Consumers are at the heart of our business – we understand their needs and align ourselves with them Advertising and innovation are fundamental to ensure we continue to drive our key brands forward In addition the current environment requires a powerful promotional programme An ongoing focus on cost reduction is essential to fund marketing expenditure and grow profits

28. 28 Consumers needs – at the heart of our business Reassurance of familiar brands Help navigating the healthy eating agenda Products that help create simple, wholesome meals and snacks Affordable indulgences and little luxuries To support British products for emotional and ethical reasons The reassurance of heritage and tradition And a growing number are starting to recognise the importance of sustainable production and packaging Source: Opinion Leader/Dragon Rouge/Haygarth

29. 29 Our products meet consumer needs Heritage & Tradition Sustainable Health PleasureConvenienceBritish

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34. 34 FRijj – the thicker, the slower, the better FRijj is unashamed satisfaction. The thickest, tastiest milkshake in the UK and the treat to be seen with by 16 – 24 yr old men! ‘The thicker, the slower, the better’. FRijj is the no.1 flavoured milk in the UK Value sales of £43.7 million (+21%), total market share 28%. Latest activity £2 million sponsorship of Soccer AM with new ‘swamp football creative’ New packaging now in-store.

35. 35 Continuing with a powerful promotional programme Consumers remain heavily focussed on value This strategy is growing brand sales at the expense of own label We continue to promote more heavily than our competitors providing good growth Although there are some sign of improving consumer confidence we anticipate that we will continue to promote our brands into next year Sept 08Sept 09CloverCountry LifeCathedral City Butter & Spreads Brand Volume on deal Own label share 30% 22% 45% 19% 52%60% Cheddar Brand Volume on deal Own label share 61% 63% 65% 57% 72%

36. 36 Over the past 6 months dairy commodity prices have increased and are now higher than last year Fonterra and NI milk auctions have also risen, reflecting this trend However there are significant volumes of commodity stocks in Europe and US and these may make it difficult for higher prices to be sustained Source: DairyCo 2009 Dairy commodity prices increasing

37. 37 Milk production has increased in Great Britain over the first half of 2009/10 milk year More cows in pipeline and some signs that farmer confidence is improving Although there are environmental and financial challenges in the near future, the medium-long term outlook is positive Some pressure for liquid milk price increases, but overall direction unclear We have agreed to a “floor” for our suppliers through to February 2010 and continue to monitor the situation with them Stability valued by milk market

38. 38 milk&more Progressing to plan Customer numbers growing towards our target of 250,000 registered customers by 31 March 2010 New customers are spending in line with our estimates (weekly spend £6.20 v traditional £4.50) Direct mailshot and door drop to 3 million potential new customers planned before Christmas Customers are notified of attractive promotions via a weekly email

39. 39 Summary and outlook Successful first half Adjusted profit before tax up 9% Net debt down £110 million from September 2008 Sales of key brands up 10% Strategy remains appropriate given challenging economic environment Continue to make progress with the same focus in H2 Cash management Development of key brands Cost reduction