DAIRY CREST GROUP PLC PRELIMINARY RESULTS TO 31 March 2002

Delivering added value growth and attractive returns for shareholders

Financial Highlights

• Further significant increase in financial results – benefits of the Unigate acquisition – strong progress by brands and added value • Adjusted operating profit up 26% to £93.0m

• Adjusted profit before tax up 29% to £73.7m

• Adjusted earnings per share up 28% to 45.2 pence • Final dividend 10.4 pence; total up 8% to 15.2 pence

Profit and Loss

£’m Operating profit Interest Profit after interest Year March 02 Year March 01 Change % 93.0 73.8 + 26% (19.3) 73.7 (16.8) 57.0 + 29%

Profit and Loss

£ ’m Profit after interest Operating exceptionals JV exceptional property gain Goodwill Profit before tax Taxation Profit after tax Year March 02 73.7

(44.2) 1.7

(2.3) 28.9

(7.3) 21.6

Year March 01 57.0

(21.9) (1.5) 33.6

(10.2) 23.4

Earnings and Dividends

Pence per share Adjusted EPS Basic EPS Dividend Average number of shares in issue : m Year March 02 45.2

Year March 01 35.4

Change % + 28% 18.0

15.2

20.2

14.1

- 11% + 8% 118.3

114.7

+ 3%

Operating Results

£ ’m Year March 02

Turnover

Consumer Foods excl jv Joint ventures Food Services 761 81 525 Total

Operating profit *

Consumer Foods excl jv Joint ventures Food Services Total 1,367 59.0

4.0

30.0

93.0

* operating profit before exceptional items and goodwill amortisation Year March 01 706 79 522 1,307 36.8

4.0

33.0

73.8

Operating Margin*

% Year March 02 7.8 Consumer Foods excl jv Joint ventures Food Services Total * operating profit before exceptional items and goodwill amortisation 5.0 5.7 6.8 Year March 01 5.2 5.1 6.3 5.6

Operating Cash Flow

£ ’m Operating profit Depreciation Cash exceptional items Joint ventures Working capital Operating cash flow Year March 02 93.0

36.0

(24.4) (4.0) (52.1) 48.5

Year March 01 73.8

33.9

(14.7) (4.0) 17.6

106.6

Cash Flow

Net debt at 31 March 2001 Operating cash flow Capital expenditure (net of disposals) Interest, tax and dividends Business acquisition / disposal Other Net debt at 31 March 2002 £ ’m (246.3) 48.5

(52.3) (41.0) 1.8

4.4

(284.9)

Balance Sheet

£’m Fixed assets Stocks Debtors Creditors Other net liabilities Net debt Equity shareholders’ funds Gearing March 02 372.1 March 01 367.0 224.5 143.1 (208.8) (39.3) 491.6 (284.9) 206.7 138% 192.4 145.2 (225.2) (33.4) 446.0 (246.3) 199.7 123%

Pensions FRS 17

£ ’m Market value of assets Present value of liabilities Surplus Deferred tax Surplus net of tax FTSE All Share Index March 02 494.2

(439.5) 54.7

(16.4) 38.3

2,557 March 01 515.9

(387.1) 128.8

(38.6) 90.2

2,711

DAIRY CREST GROUP PLC PRELIMINARY RESULTS TO 31 March 2002

Delivering added value growth and attractive returns for shareholders

Headlines

• Another strong commercial and financial performance • Strong branded and added value progress • Synergy benefits being delivered in full and on time • Super dairies nearing completion • Investment for efficiency and added value • Strong position of competitive advantage • Opportunity for Dairy Crest value enhancement

Brand Performance

• Group’s brands all produced strong volume growth • Clover + 15% • Cathedral City + 18% • Frijj + 24% • Yoplait brands + 18% • Strengthened their position as market leading brands

Spreads

Spreads

• Clover continued excellent performance • Country Life spreadable • Launch of Argento olive oil spread • Significant, reliable contribution to group financial returns

Liquid Products

Liquid Products

• Business transformed to provide real competitive advantage • £54m super dairies investment programme nearing completion • Strong Frijj growth • Confident our business can be successfully managed – to deliver long term growth – satisfactory financial returns

Fresh Dairy Products

Fresh Dairy Products

• Strong branded growth • Petits Filous • Weight Watchers from Heinz • Yoplait Best There Is • Positive impact of management action • Basildon closure • Growing confidence in restructured business prospects

Household

Household

• Business managed to deliver profit and cash – to invest in added value developments • Continuing doorstep decline c 12% • Substantial contribution to group synergy benefits • Acquisition infill opportunities • 2002/03 benefit from raw milk cost reduction

Ingredients

Ingredients

• Volatile raw milk supply • relative scarcity in first half • abundant supply in second half • European prices at ten year low • Ingredients business loss making second half • Raw milk cost reductions will relieve margin pressure

Cheese

Cheese

• Cathedral City continued strong growth • Major £41m net investment at Davidstow • Upgraded facilities • Maelor pre-pack / Hartington Stilton and speciality cheese • Strong cheese business profits 2001/02 driven by • continued brand and added value growth • first half margin benefit from favourable market dynamics

Cheese

• Final quarter commodity margin pressure • mild cheddar realisations at ten year low • being progressively eased by raw milk cost reductions • benefit realised in second half 2002/03 • Continuing opportunity to drive profitable growth, with • investment for added value and branded strategy

Outlook

• Continuing strategy to drive added value growth • brands have made a good start • synergies being delivered • strong cash generative position • Commodity pricing pressures being progressively resolved • Results 2002/03 weighted towards second half • Current performance in line with expectations • Full year expected to continue to deliver attractive performance

Headlines

• Another strong commercial and financial performance • Strong branded and added value progress • Synergy benefits being delivered in full and on time • Super dairies nearing completion • Investment for efficiency and added value • Strong position of competitive advantage • Opportunity for Dairy Crest value enhancement

DAIRY CREST GROUP PLC PRELIMINARY RESULTS TO 31 March 2002

Delivering added value growth and attractive returns for shareholders