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

£’m Year March 02

Year March 01

Change %

Operating profit

93.0 73.8 + 26%

Interest (19.3) (16.8)

Profit after interest 73.7 57.0 + 29%

Profit and Loss

£’m YearMarch 02

YearMarch 01

Profit after interest 73.7 57.0

Operating exceptionals (44.2) (21.9)

JV exceptional property gain 1.7 -

Goodwill (2.3) (1.5)

Profit before tax 28.9 33.6

Taxation (7.3) (10.2)

Profit after tax 21.6 23.4

Profit and Loss

Earnings and Dividends

Pence per share YearMarch 02

YearMarch 01

Change%

Adjusted EPS 45.2 35.4 + 28%

Basic EPS 18.0 20.2 - 11%

Dividend 15.2 14.1 + 8%

Average number ofshares in issue : m 118.3 114.7 + 3%

Operating Results

£’m

Turnover

Year

March 02

Year

March 01

Consumer Foods excl jv 761 706

Joint ventures 81 79

Food Services 525 522

Total 1,367 1,307

Operating profit *

Consumer Foods excl jv 59.0 36.8

Joint ventures 4.0 4.0

Food Services 30.0 33.0

Total 93.0 73.8

* operating profit before exceptional items and goodwill amortisation

Operating Margin*

% Year March 02

Year March 01

Consumer Foods excl jv 7.8 5.2

Joint ventures 5.0 5.1

Food Services 5.7 6.3

Total 6.8 5.6

* operating profit before exceptional items and goodwill amortisation

£’m YearMarch 02

YearMarch 01

Operating profit 93.0 73.8

Depreciation 36.0 33.9

Cash exceptional items (24.4) (14.7)

Joint ventures (4.0) (4.0)

Working capital (52.1) 17.6

Operating cash flow 48.5 106.6

Operating Cash Flow

Cash Flow

£’m

Net debt at 31 March 2001 (246.3)

Operating cash flow 48.5

Capital expenditure (net of disposals) (52.3)

Interest, tax and dividends (41.0)

Business acquisition / disposal 1.8

Other 4.4

Net debt at 31 March 2002 (284.9)

£’m

March 02

March 01

Fixed assets 372.1 367.0

Stocks 224.5 192.4

Debtors 143.1 145.2

Creditors (208.8) (225.2)

Other net liabilities (39.3) (33.4)

491.6 446.0

Net debt (284.9) (246.3)

Equity shareholders’ funds 206.7 199.7

Gearing 138% 123%

Balance Sheet

£’mMarch 02 March 01

Market value of assets 494.2 515.9

Present value of liabilities (439.5) (387.1)

Surplus 54.7 128.8

Deferred tax (16.4) (38.6)

Surplus net of tax 38.3 90.2

FTSE All Share Index 2,557 2,711

Pensions FRS 17

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