SHAREHOLDER MEETINGS MARCH 2007. AGENDA 1.Chairman Mr Ern Pope 2.Chief Executive OfficerMr John Cook 3.Chief Financial OfficerMrs Kerrie Parker Speakers

SHAREHOLDER MEETINGS

MARCH 2007

AGENDA

1. Chairman Mr Ern Pope

2. Chief Executive Officer Mr John Cook

3. Chief Financial Officer Mrs Kerrie Parker

Speakers

CHAIRMAN - ERN POPESHAREHOLDER MEETING

March 2007

OVERVIEW OF BOARD PERSPECTIVE ON RESULTS

• 2 Years ago following Babcock & Brown capital raising, at which time an agreed target was set to move to a position where shareholders could crystallise value from ownership of Golden Circle.

• 2005 saw stabilisation of the business with some pay down of debt and a capital investment program initiated.

• Key focus in 2006 was to create a business capability to harness the full value from the investments:

Create a new, capable management team Start to gain significant savings from capital investment program Commence process of focusing on core business activities Demonstrate progress on addressing key issues e.g. OJC

• In 2007, expect to see substantial uplift in performance as new team executes detailed improvement plans.

• 2008 remains target date for value delivery

2006 IN REVIEW

Sales growth 2% versus 2005, with last quarter up 10%

EBIT well down on expectations at around breakeven

Issues

Sales - Inadequate investment in sales capability until latter part of 2006. New sales team now demonstrating effectiveness.

Out of Stocks - A major issue resulting in lost sales and profits due to very poor supply chain planning and forecasting.

Capital Investment & Northgate Factory - Cost savings not achieved and Northgate productivity, yields and wastage a major problem. - Complexity a real issue.

Pricing - Price increases not implemented effectively until late 2006.

Cost Control - Very poor and non-transparent systems with many costs above budget/forecasts.

2006 IN REVIEW

• Many issues not visible to the Board in a timely manner, especially cost blow-outs and poor pricing implementation (850 price lists discovered by new sales team).

• A number of major surprises came to light at the end of the year when final year end reconciliations were completed.

2007 ACTIONS

Once true results were apparent in January the Board instigated major business review with management to rationalise and simplify business activities with actions now being executed.

• reduce costs• focus on core business requirements/projects• optimise pricing to improve margins• improve supply chain management to reduce wastage and out of stocks• improve working capital management to release more cash to run business• improve activity based costing

2007 ACTIONS

Additionally with recent key appointments of a new :

- Chief Financial Officer – Kerrie Parker- General Manager Operations – Steve Cowan- Supply Chain Manager – Amron Osman

- we have very significantly strengthened the management team.

2007 OUTLOOK

• With the simplification of the business, reduced costs, strong capable management team and, importantly, much better monitoring and transparency in the business to reduce/eliminate major surprises, we are more confident that a meaningful turnaround will now occur in the business.

The changes highlighted will require substantive step changes in the business.

JOHN COOK SHAREHOLDER MEETING

March 2007

Shareholder UpdateMarch 2007

Three main areas:

1. 2006 Financial Results;

2. Implications;

3. What we have been doing?What must be done differently


Continuing Operations: 2006 2005

Sales 368.1 361.1

Gross Profit 86.423.5%

96.526.7%

Operating Expenses 94.7 85.6

EBIT*(continuing operations)

Includes Profit of $9.415 m from sale of Baby Food

1.0 11.7

EBITFrom discontinued operationsIncluding Loss on sale

(1.3) (1.2)


A $10 million deterioration on 2005 results

Sales were off-plan• Limited growth, competitor discounting & difficulties with OOS

Contribution lower• Material costs, pineapple yield & Northgate performance

Operating costs• Strategic advice, recruitment outlays & on-off benefits in 2005

Northgate performance and Food drove much of the variance

Mill Park yielded a positive EBIT swing of $7.7 million


So what went wrong?

Why were these things not apparent earlier?

Almost everything! and

Because there is a lack of transparency in how the business performs and functions


What we were attempting to do?(As expressed at the 2006 AGM)

1. Deliver the 2006 budget;

2. Extract value from earlier capital investments;

3. Balance supplier relationships; and

4. Make growth possible.


Focus 1 - Getting the numbers

So where are we?

• Poor business systems and practices

• Insufficient reliable information with which to make decisions

• Business swamped by challenges and difficulties

• Opportunities took time to extract

• Progress made on lifting skills and accountability assignment, but this also took time


Focus 2 - Extracting value from earlier investments

So where are we?

• Capital spending was slower than expected

• Savings in a number of areas not practicable

• Others did not work

• Nutricia has been a diversion with considerable demands on business

• Priority selection clouded by lack of reliable financial data

• We should not lose sight of the improved position with Mill Park, it can be done.


Focus 3 - Balancing supplier relations

So where are we?

• Business systems improved to integrate across company and with retailers

• Grower integration has been reorganised

• Planning skills enhanced to cope with dynamics of commodity cycles

• Pineapple supply surveyed and strategy developed

• Pricing/grower yield improved


Focus 4 - Making growth possible

So where are we?

• Sales force reorganised and skills enhanced

• Equitable terms with all retail customers

• Lifted pricing to improve margin profiles

• Targeted and won pieces of private label business

• Tighter control of advertising and its development

• Innovation is now controlled through a transparent process


To remedy Golden Circle must deal with:

• Non-transparent business systems

• Getting accurate information

• Simplifying a business that over time that has become too complex

• Trying to “fix” while “managing” the day-to-day

• Instilling the focus needed to address the systemic problems crippling the company

• Procuring and then holding the skills needed to “turn the business around”


All of these considerations have contributed to the business and the board being impacted by “surprises”

It is these considerations that have impacted the 2006 numbers so dramatically.


So What’s Being Done?

• CFO changed & Finance Department restructured

• Supply Chain function restructured and new resources recruited

• Business simplification study commenced and driven with support of the Board

• Lowering of all factory and overheads costs through curtailment of non-core activity

• Areas of immediate priority execution:

1. improved pricing;2. rationalisation of category and markets with adjustment to cost base;3. improvement of liquidity;4. 2007 entry into innovative packaging.


Operationally the year has started well

• Sales momentum in the last quarter of 2006 is encouraging with this being up 10% on prior year

• Service Levels in Tetra and Pineapple have impacted sales to March. Stock position is now comfortable

• Mill Park Division continues to perform well

• Preservative Free range is exceeding expectations with solid consumer off-take

• Advertising and in-store sampling work is driving sales and share expansion

• The business is tracking to the 2007 budget with Northgate factory and overhead expenses demonstrating favourable trends

• The Business Simplification Study has isolated scope for considerable savings. These are being targeted.

Preservative Free Chilled Juice

Launch Update

March 2007

Total Chilled Category - Retail

0

10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

15.4 15.6 15.6 15.1 15.3 14.316.5

14.8 15.7 15.3 14.8 15.7 16.0

21.6

15.914.1

GOLDEN CIRCLE LTD

NATIONAL FOODS

OTHER MFRS

PRIVATE LABEL

GOLDEN CIRCLE LTD

NATIONAL FOODS

OTHER MFRS

PRIVATE LABEL

Golden Circle Ltd Manufacturer Share Graph - Chilled JuiceNational

Dollars(000)Period Ended 11 Mar 2007

Golden Circle share takes off at the expense of National Foods.

National Golden Circle Preservative Free Range Sales - Retail

Strong sales growth achieved, particularly since launch of TV & sampling support campaign. Sales far surpass previous sales for GC HDPE range.

Marketing campaign launch 25th February

AZTEC Scan Data (MAT 11/03/07)

11.2% share

National Golden Circle Preservative Free Range Value Share - Retail

2007 Target Retail Share of Chilled – 8%

KERRIE PARKERSHAREHOLDER MEETING

March 2007

Initial Evaluation

• Inadequate controls & procedures

• Information provided did not allow for effective decision making

• Ineffective cash management

• Insufficient support to organisation

• Challenging IT environment

Improved Procedures & Controls

• Improve and Tighten Expenditure Process– Accounts Payable– Advertising Spend– Trade Monies– Capital Expenditure

• Realign Internal Audit needs

• Document and Map processes across business

Effective Decision Making

• Finance “Partners” for depts providing financial analysis & support– Sales -Marketing– Operations -Supply Chain

• Improved management reporting– Introduction of COGNOS reporting tool

• Review Product Costing methodology

• Production of decision making information

Cash Management

• Change Accounts Receivable terms

• Review how we pay our creditors

• Inventory Management– FOCUS– Improved reporting– Targeted Reduction

• Manage our capital spends

Challenging IT Environment

• Large number of systems• Lack of connectivity between systems• Band Aids throughout organisation to compensate (spreadsheets)• Too much “fire fighting”• Too many unfinished projects • No planning or prioritisation

• Introduce Steering Committee• Evaluate current projects• Prioritise to align to the business needs

Conclusion

• We understand what needs to be done

• We are introducing controls and processes

• We will improve usage of systems already in place

• We are introducing talented people • We are creating reporting tools to assist

• We are creating a culture suitable to take us forward

QUESTIONS?

Documents

SHAREHOLDER MEETINGS MARCH 2007. AGENDA 1.Chairman Mr Ern Pope 2.Chief Executive OfficerMr John Cook 3.Chief Financial OfficerMrs Kerrie Parker Speakers