1. Simon Cumpsty, Head of Employee Relations and Reward : An Auto- Enrolment Story

2. Introduction to Dairy Crest
Dairy Crest is the number one British owned dairy company
Market capitalisation: £650 million
Previously owned by Milk Marketing Board
Floated on London Stock Exchange 1996, turnover £750 million
Since flotation turnover has increased to £1.4 billion, reflecting strong growth in added-value sales
Pre-tax profit 2012/13 £50.6 million
2013 – Only food manufacturer to achieve BITC corporate responsibility platinum ranking (98%) and highly commended as company of the year

3. Dairy Crest today
Dairy Crest is the UK’s leading British owned dairy company manufacturing and selling:
a strong portfolio of dairy foods brands in the UK
fresh milk to UK retailers, middle ground customers and residential customers
We have 13 manufacturing sites in England and Wales:
- 4 milk processing sites (3 retailer and 1 doorstep)
- 1 cream site
- 3 cheese sites
- 2 spreads sites
- 2 other food and ingredients sites
doorstep delivery depots
4,800 Employees
1,300 Self – Employed Franchises
Dairy Crest is one of the largest purchaser of milk in the UK, buying around 1 in every 6 litres produced. Direct contracts with 1,200 dairy farmers

4. Site Map
Notes
________________________________________

5. Dairy Crest Foods – strong British brands
Focus on 4 key brands – other brands include Utterly Butterly, Willow and Vitalite
Momentum maintained through innovation, advertising (TV) and promotions

6. Dairy Crest : Past and Current Pension Arrangements
Defined Benefit (Final Salary Scheme) – Closed April 2010
Contribution / Accrual Rates : 40ths, 50ths and 60ths
7% Employee Contributions
Life Cover : 4 x salary plus Spouse and Dependents Pension
Ill Health : Full and Limited Incapacity Pensions
Defined Contribution (Zurich Stakeholder Scheme) – From 2006
Contribution / Accrual Rates : 1:2, 1:1.5, 1:1.25
Life Cover : 7 x salary
Ill Health : Group Income Protection Scheme (GIP’s) for a 2 year limited period
Additional benefits if contributing a minimum of 3% up to a maximum of 8%
In replacing DB Scheme with a DC Scheme replicated additional benefits as far as possible
Pension key part of Dairy Crest’s reward offering

7. Dairy Crest : Impact of Auto-Enrolment To Date
Opt Outs and On Costs
From end of January 2013 main section of Stakeholder Scheme closed for all employees (except Band 5 and above new starters and promotions) until April 2014
April 11th – 1228 Employees enrolled
April 25th – 1203 Employees enrolled
235 Employees opted out as at end June
9.67% Opt Out Rate
Majority of those opting out monthly paid
Average run rate of additional Employer contributions
£5,913 per week
£21,751 per month
£568,488 Annualised

8. Dairy Crest : Auto-Enrolment Communications and Implementation Approach
Agreed with elected and constituted PCCF (Pensions Communication and Consultation Forum)
Low key
Last opportunity given to join main section without 12 month wait
Very different to 2010
Role of effective Governance group key
Defined Disputes process
Guaranteed representation of Trade Union including National Officer
3 Company Appointed Representatives
Supporting on line financial planning tools and pre-Retirement education

9. Dairy Crest : Auto-Enrolment Impact on Reward
Lower annual pay award
Relaunch and reinvigoration of Voluntary Benefits offering
Over 35% workforce registered and using regularly
Low Opt Out Rates lead to review of and agreement with PCCF on matching and additional benefits from April 2014
Mitigate Risk and Cost exposure
Balance best benefit provision with minimising cost

10. Dairy Crest : Auto-Enrolment Moving Forward
Review impact of Trading Up in April 2014
Opportunities to link Trading Up and additional benefits to possible flex arrangements
Pension proposition remains a key part of our Benefits offering
Fits with our Culture and Values