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. Agenda
Unique Beverage Platform
Dean Dairy Group
WhiteWave Foods
Well Positioned for Sustained Growth
4. Dean has established a leading position in
the dairy industry…
$10 B+
10
8
US 6
Dairy
Sales
4
($Billions)
$2.1B $1.7B
2
$1.4B $1.2B
$0.7B
0
HP
Dean Kroger NDH Prairie Foremost
Hood
Foods Farms
Source: Dairy100 (2004 sales, excluding cheese)
5. …and is the only national dairy
beverage company
Leading portfolio of national and regional dairy brands
in health and wellness beverage categories
National manufacturing system with fullest set of
capabilities and with market proximity as a strategic
advantage
Unparalleled refrigerated distribution network
Deep customer relationships at local, regional and
national levels across all channels
Potential to innovate across the entire dairy category
Experienced management team with deep company,
dairy and beverage industry expertise
6. Strong branded position,
complemented by private label…
National Brands
Private
Label
37% Branded
Sales
63%
Strong Regional
Brands
Dean Foods 2005
Sales Mix
7. … supported by the country’s only national
manufacturing system…
8. … with flexible production capabilities…
Any consumer,
any occasion
Short Shelf Life Extended Shelf Life Aseptic
16-18 days 45-60 days 6-9 months
9. …in more than just milk…
Ice Cream
and Novelties
Cottage
Cheese
Yogurts
10. …in more than just milk…
Waters
Sour Creams
Juices Teas
11. ..delivered through the only national
refrigerated distribution network
DSD Warehouse
160,000 refrigerated locations Broad grocery and retail
served capability
6,500 DSD routes nationwide Extensive foodservice / QSR
system
2,600 tractors
4,400 straight trucks
5,300 refrigerated trailers
Any customer, any channel
12. Resulting in superior EPS growth
$2.10 - 2.15 E
$2.25
$2.00
2006
2002-2005 $1.83
YTD
Adjusted EPS*
CAGR = 17%
$1.75
through
6/30 =
13%
$1.48
$1.50
$1.31
$1.25
$1.15
$1.00
$0.75
2002 2003 2004 2005 2006
GAAP EPS $1.08 $1.53 $1.28 $1.67 $0.92 YTD
from continuing 15% growth
operations
See reconciliation of these at www.deanfoods.com
*Adjusted to omit the net impact of facility closing costs and one time charges and discontinued operations.
14. Focus on sustained shareholder
value creation Announced sale of
Iberian operations
TreeHouse
$40
Spin-off
10-year Total Return = 750%
Acquired 100% of
$35 CAGR = 23%
Horizon Organic
$30
Added to
Acquired
Acquired minority S&P 500 Index
Dean Foods
$25 interest in
Horizon Organic
Began WhiteWave
$20 consolidation
Acquired
Southern Foods
$15
Acquired
IPO
$10 White Wave
Acquired
Morningstar
$5
$0
1996 1997 2000 2003 2006 YTD
1999 2002 2005
1998 2001 2004
Source: Bloomberg as of 8/31/2006
Note: Share price appreciation reflects stock-split adjusted price.
15. 2006 first half highlights
Dairy Group
– Dairy Group milk volume growth of 2.8%
– Initiating a multiple-year productivity and capability-building program
WhiteWave Foods
– Continued strong growth of the core brands
– Strengthening the foundation with investments in G&A
infrastructure, and SAP
Dean Foods Company
– Adjusted EPS growth of 13%
– Announced the sale of Iberian operations, sharpening focus on
largest opportunities
– Strong cash flow, supporting share repurchase of $136 million
through June 30,and debt paydown
On Track for Another Strong Year
16. Agenda
Unique Beverage Platform
Dean Dairy Group
WhiteWave Foods
Well Positioned for Sustained Growth
18. Dairy Group Overview
$6B+ in annual fresh
milk sales plus:
($ Millions)
800
600
400
200
0
Ice ESL & Yogurt & Juice, Ice Cream Other
Cream Creamers Cultured Water Mix
and Tea
2005 Sales Mix
19. Entering the next phase of
Dairy Group evolution
Transition Transformation
Consolidation
1994 - 2001 2002 - 2006 2007 - 2010
75 fold US dairy revenue Shifting volume to more Evolve the Dairy Group
growth from 1994 to efficient facilities, operating model to
2002 elimination of excess maximize the benefits of
capacity to reduce costs its scale advantage
– $100 million to
$7.6 billion
Demonstrated ability to Strengthen functional
drive market share expertise to reduce costs
Expanded from 2
and sustain year on year
facilities to over 100
Significant management productivity
focus on portfolio
Developed only
rationalization and Enhance selling
nationwide footprint in
WhiteWave consolidation capability
the industry
Early steps towards Ensure pace of change
Four times larger than
developing the future does not inhibit business
nearest competitor
Dairy Group operating performance
Primary focus on rollup, model
Opportunity to sustain
limited change to local
strong operating profit
dairy operating model
growth
20. We are working today to take
full advantage of our size
Purchasing G&A Infrastructure
Use volume to achieve the Keep activities local that
lowest cost need to be local
Standardize / centralize Centralize activities that
purchases wherever it can be shared
makes sense Lower overhead cost
Maximize efficiency versus competition
21. Addressable spend
base of ~$3B
$1.1B
$1.9B
Other
Ingredients / Commodities* Utilities
MRO
Packaging
Logistics
Direct Indirect
Total Spend Mapped (2005)
*Notes: Ingredients/ commodities does not include raw milk, cream or soybeans
Source: Internal data, including Dairy Group, and WWF
22. Opportunity to realign G&A infrastructure
Over $100 Million
100%
90%
Historically local and
80%
Other
decentralized staffing
70%
Multiple systems,
60%
HR & Payroll organizational structures
50%
40% Significant redundancy
Finance
30% &
Accounting
20%
10%
0%
23. Need to build functional expertise
in manufacturing and selling
Manufacturing Direct to Store
Infrastructure Distribution
Lowest cost facilities Upgrade systems
Producing the right Maximize truck utilization
products in the right Optimize route design
facilities
Leverage network scale
With the right capital
Build selling and
investments
merchandising capability
Enable continuous
improvement mindset
24. Significant manufacturing
cost reduction opportunity
Footprint Productivity
Facilities operations FTEs per gallons produced (MM)
39
1.8
1.6
Average 1.5
Number of Facilities
1.4
23
1.2
16
10
7
4
2
0/ 51/ 101/ 151/ 201/ 251/ Over South South Mid North
50 100 150 200 250 300 300 East West West East
Miles to nearest Dean Foods Facilities
Further footprint/ Significant opportunity for
optimization potential continuous improvement
25. Better leverage the only national
refrigerated DSD system
Build additional selling capability
– Increase sales per route/stop
– Offer customers complete dairy
solution
– Innovate with branded/single
serve offerings to improve drop
size and margin
Maximize route efficiency
through technology-based tools
Eliminate redundant or
overlapping routes
26. Cumulative value creation
opportunity is substantial
Value
Brand Building
and Product Innovation
DSD Network Optimization
Manufacturing Continuous Improvement
G&A Infrastructure Realignment
Purchasing Optimization
Time
2010
2009
2008
2007
27. Dairy industry evolution
Traditional New
Dairy Dairy
Consolidated industry
Fragmented industry
Single national player
Local companies/little
– Dean Foods
scale
Growing profitability;
Locally managed, resources to invest
lack of functional Investment in
expertise innovation and
marketing
Limited profitability
Emergence of national
and financial
brands
resources
Portfolio of strong
Infrequent innovation regional brands
Limited marketing Greater consumer
focus on nutrition
High private label
penetration
28. Agenda
Unique Beverage Platform
Dean Dairy Group
WhiteWave Foods
Well Positioned for Sustained Growth
29. WhiteWave Foods: Strong brands
with a history of robust growth % of 2005
WhiteWave
Sales
6%
5-Yr CAGR of
28%
Key Brands = 28%
23%
20%
15%
2000 2001 2002 2003 2004 2005
Note: Assuming full ownership in all comparable periods.
30. Creation of WhiteWave Foods
1997 2004
Purchased Purchased
Morningstar Horizon
2002 Organic
Purchased
WhiteWave
2005
Merged 3 legacy companies
under WhiteWave name
2002
Entered licensing
agreement with
Land O’ Lakes
31. Integration of 3 legacy companies
Sustainable growth
and superior returns
One, unified
company;
best-in-class
brands, talent and
One company
3 separate, infrastructure
legacy companies – 1 organization
– Focused portfolio of
– 1 leadership team
premium brands
– 1 “sales” face to
– 3 faces to the
– 1 face to the
the customer
customer
customer
– Supply chain
– 3 separate,
integration in – Fully integrated
under-leveraged
progress supply chain
supply chains
– Process and – Top-talent
– Internal redundancy systems build-out in
organization
– Limited process progress
– Best-in-class
and systems
processes and
infrastructure
systems
Time
2004 2005-2006 2007-2008
Platform for further premium
branded beverage growth
32. WhiteWave Foods’
leading brand portfolio
Strategic Summary
No. 1 soy beverage
Compelling health benefits
2005 Sales: $337 million Significant growth
opportunity
– Education
2005 growth of 20%
– Innovation
2006 YTD* growth of 14% Focus on driving trial and
adoption in US
74% market share**
Multiple opportunities for
growth
– Product adjacencies
– International
*Through June 30, 2006 for continuing products
**Source: IRI, Spins, IRI Walmart panel data
34. Rapid growth of the soymilk
category should continue
Penetration should increase
– Virtually all sales are to 11%
of households
– These buyers represent 80%
of category volume
– Another 30% of US households
are interested in soymilk
Frequency should increase
– Core soymilk households still
consume 3X as much
conventional milk as soymilk
Represents significant
opportunity to grow the category
35. WhiteWave Foods’
leading brand portfolio
Strategic Summary
Invest to increase supply
localize the supply chain
and drive margin
2005 Sales: $273 Million
Realign pricing as supply
2005 milk sales increase increases for profitability
and sustainable category
of 44%
growth
2006 YTD* growth of 28% Drive growth on core fluid
milk by targeting
46% market share** interested organically
inclined consumers
*Through June 30, 2006 for continuing products
**Source: IRI, Spins, IRI Walmart panel data
36. Organic milk category
growth is accelerating
31%
27%
16%
2004 2005 2006
Estimated organic milk retail sales growth:
grocery & natural channel (52 weeks ending July 30)
Note: above represents grocery and natural food channel dollar sales, 52 weeks ending
July 30; does not include Wal-Mart, Club or other channels
Source: IRI, SPINS for 2004-2006, IRI for 2003
37. Rapid growth of the organic
milk category should continue
Penetration should increase
– Virtually all sales are to 3.3% of
households, up 1.2 pts (150 index)
versus 20031.
– Another 29% of US households are
interested in organic milk2.
Frequency should increase
– 22% of consumers view organic as
“extremely” or “very important” to
healthy lifestyle3.
Represents significant
opportunity to grow the category
1. IRI Household Panel.
2. Cambridge Group – Demand Landscape March 2006.
3. Natural Marketing Institute: Health and Wellness Trends Report 2006.
38. Supply regionality for Horizon Organic
We have a locally aligned
supply chain
Designed to provide
shortest time from farm 9%
to table
13%
17%
This will increasingly
22%
10%
become a strategic
18%
advantage
11%
39. We are investing to grow supply
Adding new family farms to
producer network is our first
priority
– 342 currently, 240 in
transition
– Horizon Organic Producer
Education Program –
Assists farmers in transition
to organic
– Transition takes time 12
Expecting supply growth
months for cows, 36 months
for land in excess of 20% for 2007
Pursuing strategic partnerships
with innovative producers
Selectively leveraging supply at
company-owned farms
– 20% of current supply
40. WhiteWave Foods’
leading brand portfolio
2006 YTD sales growth of 29%
#1 UK organic milk brand
#2 UK organic yogurt
2006 YTD sales growth of 8%
30% market share in retail (#2)
#1 in foodservice
(approx 80% share)
2006 YTD sales growth of 5%
20% market share
Exclusive perpetual fluid dairy
license
41. Agenda
Unique Beverage Platform
Dean Dairy Group
WhiteWave Foods
Well Positioned for Sustained Growth
42. Well positioned for long term growth
Dairy Group entering next phase of long-term strategy
– Consistently growing market share
– Multi-year productivity and capability-building program to extend
advantage and improve margins
WhiteWave Foods executing for growth
– Driving strong growth of well-positioned brands in attractive
categories
– Pushing efficiency through integration of businesses
– Focus on building an innovation center of excellence
Intense focus on cash flow generation and
sustained shareholder value creation
43. Dean Foods sustainable growth algorithm
Mid-single digits
Dairy Group
(5-6%)
Mid-teens
WhiteWave Foods
(15-18%)
Less than volume growth
Corporate Costs (2-3%)
Operating Profits High-single digits
(7-8%)
Leverage from share repurchase
+++
and/or debt paydown
Double-digit EPS Growth
Earnings Per Share Growth*
*excludes any future restructuring or other one-time items
44. Well positioned for sustained
double-digit EPS growth
Value
$2.10
2.15 E
$1.83
$1.48
$1.31
$1.15
2002 2003 2004 2005 2006
