1. Dean Foods Company
CAGNY Conference
February 21, 2006
Scottsdale, Arizona
2. Forward Looking Statements
The following statements made in this presentation are “forward looking” and are made pursuant to
the safe harbor provision of the Securities Litigation Reform Act of 1995: statements relating to (1)
projected sales (including for individual segments, for specific product lines and for the company as
a whole), profit margins, net income and earnings per share, (2) our growth strategy, (3) our
branding initiatives (4) our integration plans, and (5) our cost-savings initiatives. These statements
involve risks and uncertainties that may cause results to differ materially from those set forth in this
presentation. Financial projections are based on a number of assumptions. Actual results could be
materially different than projected if those assumptions are erroneous. Sales, profit margins, net
income and earnings per share can vary based on a variety of economic, governmental and
competitive factors, all of which are identified in our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10K (which can be accessed on our website at
www.deanfoods.com or the website of the Securities and Exchange Commission at www.sec.gov).
The success of our branding initiatives will depend on a number of factors, including customer and
consumer acceptance of both the products themselves and the prices that we intend to charge for
those products. We have many competitors with greater resources than ours, and significant
additional spending or innovations by our competitors could render our products less successful
than we currently expect. All forward looking statements in this presentation speak only as of the
date of this presentation. We expressly disclaim any obligation or undertaking to release publicly
any updates or revisions to any such statements to reflect any change in our expectations with
regard thereto or any changes in the events, conditions or circumstances on which any such
statement is based.
3. One of the nation’s leading food and
beverage companies
• Largest dairy company in the U.S.
– Over $10 billion in net sales
– Approximately 4X the size of nearest fluid
dairy competitor
• Uniquely positioned branded portfolio
– On trend with healthy, better-for-you
product offerings
– High-growth brands
– Significant margin-enhancing opportunities
• Extremely focused on shareholder value
4. Dean Foods 2005 Achievements
• Spun-off Treehouse Foods
• Divested Marie’s dressings and Dean’s dips
• Combined branded businesses
• Joe Scalzo named president of WhiteWave
• Alan Bernon promoted to president of the Dairy
Group
• Repurchased 18.9 million shares
5. Dean Foods 2005 Financial Recap
• Dairy Group fluid milk volume growth of 2.5%
– operating income growth of 7%
• WhiteWave Foods revenue growth of 13%
– operating income growth of 32%
• Consolidated operating profit growth of 7%
• Earnings per share growth of 15%
6. 2006 Guidance
Consolidated operating income of $680 -
700 million, up 9%-12%*
Earnings per share of $2.10 – $2.15, up
15%-18% over $1.82 in 2005*
* Post stock-option expense
7. A Unique Balance of Businesses
Dairy Group WhiteWave Foods
– Stable, predictable earnings – Attractive growth categories
– Volume growth – Strong national brands
– Synergy opportunities – Value-added margins
– Strong cash flow – Improving supply chain
– National refrigerated direct – Leverage through
store delivery network consolidation
1
Positioned for 8-10% Long-Term Earnings Per Share Growth
1
Excludes possible facility closing costs, future acquisitions / divestitures and one-time items
8. 2005 Net Sales by Segment
Dairy Group
$9 billion
WhiteWave
Foods
$1.1 billion
International
$0.4 billion
9. 2005 Net Sales by Segment
Dairy Group
$9 billion
WhiteWave
Foods
$1.1 billion
International
$0.4 billion
10. Dean Dairy Group
• Nation’s largest dairy processor
• Strong regional brands
• Unique nationwide footprint
• National refrigerated direct store
delivery (DSD) network
12. National Refrigerated DSD Network
Coupled With Strong Regional Brands
• 99 facilities
• 6,500 DSD
routes
• 150,000
locations
served
DSD coverage
Processing plants
13. Focus on Leading the Industry
in Customer Service
• One-stop-shop solution
• Simplified pricing
• Superior responsiveness
• Focus on quality
14. Focus on Volume and Marketshare Growth
Dairy Group Fluid Milk and Cream Growth versus
USDA Total Consumption
5%
4.1%
4% 3.4%
2.7%
2.4%
3%
2% 1.4%
1.3%
0.9%
1% 1.2%
0% -0.8%
0%
0%
-1% - 0.5%
-2%
-2.3%
-3% - 2.9%
-4%
Q4 05
Q3 04 Q2 05 Q3 05
Q1 05
Q2 04 Q4 04
Dean Milk and Cream USDA Fresh Milk
Volume Growth Volume Growth
* Calculation is exclusive of cream volumes in 2005
15. Focus on Driving Efficiency
Historical Focus
• Consolidate redundant facilities
– 32 facilities closed to date
– Includes 2 facilities closed in 2005
• Separated branded and private label
product manufacturing
Next Steps
• Modernize information systems
platform
• Optimize SG&A infrastructure
– Consolidate regional structure
– Leverage scale in purchasing and
administrative functions
16. Experienced Leadership
• Alan Bernon named
President of Dean Dairy Group
– 30 year dairy industry veteran
– 20 years as president of Garelick/
COO of Dean Northeast region
• Pete Schenkel named
Vice-Chairman of Dean
17. 2005 Net Sales by Segment
Dairy Group
$9 billion
WhiteWave
Foods
$1.1 billion
International
$0.4 billion
18. WhiteWave Foods’
Leading Brand Portfolio
$337 M
and other
$111 M
$273 M
$182 M
$241 M
2005 Net Sales
* Note: excludes Marie’s p. 18
19. Branded products have become a core
part of the Dean Foods portfolio over time
1997 2002 2004
Purchased Entered licensing Purchased
Morningstar agreement with Horizon
Land O’ Lakes Organic
2005
2002
Merged 3 legacy companies
Purchased
under WhiteWave name
White Wave
20. Significant Strides Have Been Made
in Integrating the 3 Legacy Companies
One, unified
company;
best-in-class brands,
One company talent, and
3 separate,
Sustainable growth and
infrastructure
legacy companies
superior returns
– 1 organization
– 1 leadership team – Focused portfolio of
– 3 faces to the
– 1 “sales” face to premium brands
customer
the customer – 1 face to the customer
– 3 separate,
– Supply chain – Fully integrated supply
under-leveraged
integration in chain
supply chains
progress
– Top-talent organization
– Internal redundancy
– Process and
– Best-in-class
– Limited process systems build-out in
processes and
and systems progress
systems
infrastructure
Time
2004 2005 2006-2007
21. White Wave’s Focus is to Enable Continued
Growth and Superior Returns
Focused Focused
Product Organization
Portfolio
Strong
Growth
And Superior
Returns
Focused
Supply
Chain
p. 21
22. Creating a Leveraged,
Fully-Integrated Supply Chain
Distributed Complex
Under-leveraged
Mfg Footprint Distribution
Short-run Plants
12 Company
2,600 SKU’s
2004 65
Owned Plants and
Inefficient Inventory
30+ Co-packers
Processing Locations
Focus Dedicated, Reduced
product multi-line, product
portfolio on long run plants movement,
largest (5 WWFC plants full trucks
2005 opportunities 3 strategic (11 inventory
(~700 SKUs) co-packers) locations)
Vertically Integrated Branded Supply Chain
2006- Focused Efficient Optimized
2007 Product Portfolio Manufacturing Distribution
23. Focused on Premium, High Growth Brands
in the Dairy Case
Focused on brands
that offer:
• High growth
• Health and wellness
• High profit potential
• Premium dairy
brands
• Supply chain fit
24. Focused on Premium, High Growth Brands
in the Dairy Case
Focused on brands
that offer:
• High growth
• Health and wellness
• High profit potential
• Premium dairy
brands
• Supply chain fit
Fit with the vision
25. Strong Brands with a History of
Robust Growth
1,200
1,000
5 YR CAGR of
Key Brands = 28%
800
600
400
200
0
2000 2001 2002 2003 2004 2005
* Pro forma assuming we owned these same
businesses in all comparable periods
26. WhiteWave Foods’
Leading Brand Portfolio
$337 M
20% increase
vs. 2004
2005 Net Sales
* Note: excludes Marie’s p. 26
27. Despite the Rapid Growth of the
Soymilk Category, US Household
Penetration is Low
• Virtually all sales are to 7% of households
– These buyers represent 80% of category
volume
• Core soymilk households still consume 3X as
much conventional milk as soymilk
• Another 30% of US households are interested
in soymilk
Represents significant opportunity
to grow the category
p. 27
28. Silk’s strategy is to drive category growth
Strategic focus
$337 M
100% Other
• Focus on current users and
90%
Aseptic interested prospects
80%
• Increase marketing investment
70%
and focus on heart health
60%
• Focus on core refrigerated
50%
products (best taste - margins)
Refrigerated
40%
• Use new products to drive trial
30%
(e.g. Silk Light)
20%
• Integrate the supply chain
10%
to improve margins
0%
2005 Net Sales
p. 28
30. WhiteWave Foods’
Leading Brand Portfolio
$273 M
39% increase
vs. 2004
2005 Net Sales
* Note: excludes Marie’s p. 30
31. There is Significant Latent Demand
for Organic Milk
• 32% of consumers are interested
– 4% of households use organic milk today
• Demand is outstripping supply, customers are
on allocation
• We are not currently investing in marketing
the brand or pursuing new distribution
(68% ACV)
Category will grow as supply
situation improves
p. 31
32. We are Investing to Grow Supply
• Increase supply from 325+ family-owned farms
(80% of current supply)
• Adding 180 new family farms to producer network
– Horizon Organic Producer Education (HOPE) –
Assists farmers to become organic
– 12-36 month transition period
• Increase supply at company-owned farms (20% of
current supply)
– Improve operations at Idaho and Maryland to
increase quality and productivity
– Add new company-owned farms
p. 32
33. Horizon Organic’s Focus is Profitable Growth
$273 M
Strategic focus
100% Other
90%
Non-milk • Invest to increase supply
80%
Dairy
70% • Integrate the supply chain
and drive margin
60%
• Optimize pricing to improve
50%
profitability and moderate
40% Fluid Milk demand
30%
• Drive growth on core fluid
20% milk by targeting interested
prospects
10%
0%
2005 Net Sales
p. 33
34. Rachel’s Organic
$69 M
Strategic focus
100%
Other
90%
Yogurt &
• Intensify marketing
80%
Cream
support of branded
70%
products
60%
• Use innovation as driver
50%
of growth and
40% Milk
differentiation
30%
• Continue to reinforce
20%
premium nature of the
10% brand
0%
2005 Net Sales
38% increase
over 2004
p. 34
35. WhiteWave Foods’
Leading Brand Portfolio
$241 M
13% increase
vs. 2004
2005 Net Sales
* Note: excludes Marie’s p. 35
36. International Delight – Opportunities for Sales
and Profit Growth
Strategic focus
$241 M
100%
Away from
90% • Continue to innovate
Home
– Introduction of seasonal
80% (Portion Control
flavors and “trans fat-
& Bulk)
free” varieties
70%
• Capture the “Away from
60%
Home” opportunity
At Home
50%
(Pints and
• Integrate the supply chain to
Quarts)
40% drive margin expansion
30%
• Maintain/enhance market
20% position over time
– currently 30% market
10% share
0%
2005 Net Sales
p. 36
37. Innovation Drives the Brand:
At Home
• Hershey’s Chocolate Caramel
leverages a strong co-brand
equity
• 0 Trans Fat formulation
targets health and wellness
trends
p. 37
38. Innovation Drives the Brand:
Away from Home
• Bulk Creamer dispensers
complement Portion Control
cups to provide full creamer
solutions for Away From
Home coffee programs
• Seasonal, limited time
flavors add excitement and
incremental sales
p. 38
39. WhiteWave Foods’
Leading Brand Portfolio
$182 M
2% increase
vs. 2004
2005 Net Sales
* Note: excludes Marie’s p. 39
40. Land O’ Lakes is a Premium
Dairy Brand
$182 M
Strategic focus
100%
Other
90%
80% • Invest to drive national
Aerosol
brand equity and growth
70%
Half & Half
60%
Away from home • Introduce value-added
50% (Portion Control)
products
40%
• Leverage brand equity
30%
Half & Half to build leadership in
20% At home
premium dairy
(Pints & Quarts)
10%
categories
0%
2005 Net Sales
p. 40
41. Building a World Class Organization
• Joe Scalzo named
President and CEO of
WhiteWave
– Proven executive with skills and
experience to realize WhiteWave’s
potential
– Gillette, Coca-Cola, Procter &
Gamble
– Brand management, marketing,
logistics and supply chain
management experience
– Passion for excellence
42. Focus on Shareholder Value
Stock Price Performance, IPO – February 13, 2006
$50 TreeHouse Spin-off
$45
CAGR = 26% Acquired Horizon Organic
$40
Acquired Dean Foods
$35
$30 Acquired Morningstar
$25
$20 Began WhiteWave
consolidation
$15 Acquired
White Wave
$10
$5
$0
6
7
8
9
0
1
2
3
4
5
6
97
98
99
00
01
02
03
04
05
-9
-9
-9
-9
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-0
-0
-0
-9
r-
r-
r-
r-
r-
r-
r-
r-
r-
ct
ct
ct
ct
ct
ct
ct
ct
ct
ct
r
Ap
Ap
Ap
Ap
Ap
Ap
Ap
Ap
Ap
Ap
O
O
O
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O
O
O
O
O
O
TreeHouse Foods was Spun-off from Dean Foods on June 27, 2005. Chart includes the value of
TreeHouse Foods on the day it was spun-off to show total shareholder return since IPO
43. Summary
• Dairy Group continues to execute long-term
strategy
– Growing marketshare
– Driving efficiency
• Significant opportunities at WhiteWave Foods
– Driving rapid growth in well-positioned brands
– Pushing efficiency to grow profitability
• Intense focus on shareholder value creation
– History of shareholder enriching activities
44. Dean Foods Company
CAGNY Conference
February 21, 2006
Scottsdale, Arizona
