Robert Wiseman Dairies

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• Robert Wiseman Dairies
• Interim Results
• For the period ended October 3, 2009

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Volume
Millions of litres
- 2010 volume is the first half volumes doubled
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GB Liquid Milk Market
Source Dairy Industry Newsletter and Wiseman
estimates
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New Business
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Sales Volume Gains

• Volume gains in excess of 150 million litres in
  period
• Gain of 116 million litres with the Co-operative
  Group
• Started two months earlier than anticipated in
  June
• Also started supplying Spar wholesalers, Cappers
  and Blakemore, in June 2009
• Supplies to 137 Sainsbury Local stores from
  April 2009

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Coming soon..!
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Bulk Cream Prices
per tonne
Source DairyCo Datum
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UK Dairy Commodity Returns
per tonne
Source DairyCo Datum
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Sales - Other

• Significant volume increases for FreshnLo and
  the One
• Tescos introduction of Creamfields label milk
  will impact these brands but not overall volumes
• Extended Shelf Life milk benefiting from new 1
  litre pack and promotional activity
• Supporting the Make Mine Milk campaign
• Bulk cream prices consistent with same period
  last year
• Recent DairyCo increases ahead of our prices
  generated

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Dairies Depots
where they should be
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Supply Chain

• Integrating Production and Distribution
  departments
• Project being undertaken to optimise Supply Chain
• Reviewing whether a new ERP system would be
  beneficial
• Objective is increase capacities and improve
  efficiencies
• Decision on ERP system will be concluded next year

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Highly efficient, modern dairies
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Dairies

• Volume uplift concentrated in June created
  challenges
• Serviced whilst maintaining efficiency and
  wastage levels
• Major English dairies returned to seven day
  production
• Increased Bridgwater capacity available in
  December
• Ahead of schedule and in line with 7.5 million
  budget
• Plan to lift annual capacity to 500 million
  litres
• Estimated costs of 10 million for the next year

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Resin Costs
per tonne
Source Platts Index
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Resin Costs

• HDPE costs increased in the period
• Plastic costs now 20 higher than the average for
  period
• If sustained, costs would increase 3 million in
  second half

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Amesbury Opened November 16 2009
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Fuel Costs
Pence per litre
Source FTA
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Distribution

• Deliveries started from Amesbury depot 16
  November
• Completion in line with timetable and 14.0
  million budget
• Provides necessary distribution capacity to
  service expansion at Bridgwater
• Amesbury opening will lead to 300 jobs being
  created
• Elsewhere lower employee numbers with volume
  transfers
• Isotrak software installation completed across
  vehicle fleet
• Higher fuel costs could amount to 1 million in
  second half

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Wiseman Milk Partnership
Supplies
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Milk Price Comparison
Source - milkprices.com flagship standard litre
(Dairy Crest Liquid excludes premium paid from
Morrisons)
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Milk Procurement

• Increase in volumes sold led to growth in WMP
• Commenced supplies from 70 previous Dairy Farmers
  of Britain members
• Continue recruitment for Bridgwater dairy
• Milk price increased by 0.3p per litre in August
• Reflected higher bulk cream revenues generated
• Recent cream prices may support a further milk
  price rise
• Review will consider price relative to competitors

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Reported Income Statement
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Underlying Income Statement
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Operating Profit
Pence per litre
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Balance Sheet
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Capital Expenditure
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Cash Flow
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EPS and Dividends
Pence
- Adjusted EPS eliminating non recurring items
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Summary and Outlook

• New production capacity to come on stream at
  Bridgwater
• New depot will provide for further expansion
• Pleased with volume gains in the period
• Maintained improvement in profits in second half
  of 2009
• Increases in fuel and plastic could add 4
  million of costs
• Improved cream returns may not be sufficient to
  compensate
• Well placed to grow volumes and margins in medium
  term
• Remain confident as to outcome for the year

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• Robert Wiseman Dairies
• Interim Results
• For the period ended October 3, 2009