The following statements made in this presentation are “forward looking” and are made pursuant to the safeharbor provision of the Private Securities Litigation Reform Act of 1995: statements relating to (1) projectedsales (including for individual segments, for specific product lines and for the company as a whole), profitmargins, net income and earnings per share, (2) our growth strategy, (3) our branding initiatives (4) ourintegration, innovation, and research and development plans, and (5) our cost-savings initiatives. Thesestatements involve risks and uncertainties that may cause results to differ materially from those set forth in thispresentation. Financial projections are based on a number of assumptions. Actual results could be materiallydifferent than projected if those assumptions are erroneous. Sales, profit margins, net income and earningsper share can vary based on a variety of economic, governmental and competitive factors, which are identifiedin our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K (whichcan be accessed on our website at www.deanfoods.com or the website of the Securities and ExchangeCommission at www.sec.gov). The Companys ability to profit from its branding initiatives depends on anumber of factors including consumer acceptance of the Companys products. All forward looking statementsin this presentation speak only as of the date of this presentation. We expressly disclaim any obligation orundertaking to release publicly any updates or revisions to any such statements to reflect any change in ourexpectations with regard thereto or any changes in the events, conditions or circumstances on which any suchstatement is based.
Certain non-GAAP financial measures contained in this presentation,including adjusted diluted earnings per share, free cash flow,consolidated adjusted operating income and consolidated adjusted netincome, have been adjusted to eliminate the net expense or net gainrelated to certain items identified in our press releases. A fullreconciliation of these measures calculated according to GAAP and onan adjusted basis is contained in the appendix of this presentationand in such press releases, which are publicly available on our web siteat www.deanfoods.com/investors.
Other Fluid Other Other Dairy 2% 8% 8% Distributors Cultured 5% 7% Other Beverages Convenience 5% Stores 7%Ice Cream 9% Food Service 14% Retailers Fresh Milk 64% 71%
National footprint, local dairyCustomers consolidating heritage to deliver differentiated selling propositionConsumers trading down Brands and private label Unmatched size andLocal competitors challenged resources to be the low cost leader
Leverage our scale Strengthen our selling Test ability toInvest in industry- and delivery leverage our sellingleading technology capabilities and deliveryand expertise infrastructure to drive top line growth
Distribution Common market Define and executeProcurement structure the value maximizing Marketing role of DSD in DeanConversion Foods Selling capabilityNetwork Optimization Tuck-in acquisitions Standard in store execution
$ Millions DSD Distribution Procurement $50 WhiteWave $50 Conversion Network Optimization
5,800 company-ownedroutes160,000 locations served200 million miles a year48 million diesel gallons
3.2% 0.1% Nestle UnileverCategory Dean -4.1% -9.5%
To drive impact, we must change how weoperate the business– Data driven– Simplified, standardized– National point of viewOur starting point, while challenging, creates massiveopportunities– Small changes can have a large impact
Cost / efficiency Standard go-to- Use DSD system market strategy to grow the topStandardization and approach by line channel
Conservative volume growthLimited pricing – highly competitive marketsMargin enhancement driven by productivitySustained reinvestment in core capability areas