Visit to Bridgwater Dairy

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Visit to Bridgwater Dairy 26th September 2008
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Sales

• Sales and volumes in line with forecast
• Volume gain with Netto started
• Volume gain with Martin McColl Group started
• Additional CRTG volumes starting 28 September

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Costs

• Pressure on bulk cream prices
• Plastic costs at record levels during period
• High oil prices and increased volatility
• Substantial increase in electricity and gas costs
  in second half year
• As noted in July, a further price increase
  required to recover these costs

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Bulk Cream Prices
per tonne
Source MDC Datum
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Resin Costs
per tonne
Source Platts Index
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Fuel Costs
Pence per litre
Source FTA/Wiseman
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Prices

• Notification of increase in last month
• Look to recoup higher non milk related costs and
  allow for a further rise in milk prices
• Confident increase to customers will be achieved
• Significant improvement in the second half
  performance anticipated
• Results for year expected to be still in line
  with our expectations

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Milk Price Comparison
Source - milkprices.com flagship standard litre
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Bridgwater Update

• Now processing 4 million litres per week
• Cost of installing 250 million litres per annum
  capacity finalised at the expected 80 million
• Preparatory work commenced on lifting capacity to
  350 million litres per annum
• Increasing capacity from 250 to 500 million
  litres per annum will cost 20 million, at
  todays prices

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Green Business Principles

• Britains most efficient and environmentally
  advanced dairy
• A focal point for the South West dairy industry
• Effluent treated to bathing water standards
• Zero Waste to Landfill
• Alternative fuel technologies
• Packaging innovations and cap weight reduction
• Potential for an On-site Green Energy Centre

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Impact on Wiseman

• Allows Manchester and Droitwich dairies to
  operate more efficiently
• Reduces trunking of milk to and from South West
• Efficiency and sustainability benefits throughout
  the Wiseman network
• Headroom to grow throughout the UK
• Leading to continued growth with UK multiple
  retailers

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Amesbury

• Further depot required for ongoing volume growth
• Granted planning permission on 19 September
• Conditional agreement to buy 9 acre site for 4.5
  million
• Allow for more efficient delivery in South East
• Look now to finalise cost and timetable

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Facilities
New Distribution Depot
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Finances

• Capital budget for year remains circa 34 million
• Includes new dairy spend of circa 10 million
• First half total capital spend of circa 15
  million
• Anticipate debt position to rise from 40 million
  to circa 55 million
• Anticipate effective tax charge of 29

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Outlook

• Expect a satisfactory outcome for the year
• New Bridgwater dairy now fully on-stream
• New distribution site acquired
• Well positioned for future growth

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Visit to Bridgwater Dairy 26th September 2008