Second Quarter 2018 Earnings. August 7, 2018

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1 Second Quarter 2018 Earnings August 7,

2 Forward Looking Statements Some of the statements made in this presentation are forward-looking and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 including statements relating to: (1) our financial forecast, including projected sales (including specific product lines and the company as a whole), total volume, price realization, profit margins, net income, earnings per share, free cash flow, our leverage ratio and debt covenant compliance, (2) our regional and national branding and marketing initiatives, (3) our innovation, research and development plans and our ability to successfully launch new products or brands, (4) commodity prices and other inputs and our ability to forecast or predict commodity prices, milk production and milk exports, (5) our enterprise-wide cost productivity plan and other cost-saving initiatives, including plant closures and route reductions, and our ability to achieve expected savings, (6) our planned capital expenditures, (7) the status of our litigation matters, (8) our plans related to our capital structure, (9) our dividend policy, (10) possible repurchases of shares of our common stock, and (11) potential acquisitions. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in this presentation, including the risks disclosed in our filings with the Securities and Exchange Commission. Financial projections are based on a number of assumptions. Actual results could be materially different than projected if those assumptions are erroneous. The cost and supply of commodities and other raw materials are determined by market forces over which we have limited or no control. Sales, operating income, net income, debt covenant compliance, financial performance and earnings per share can vary based on a variety of economic, governmental and competitive factors, which are identified in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K and 10-Q (which can be accessed on our website at or on the website of the Securities and Exchange Commission at Our ability to profit from our branding and marketing initiatives depends on a number of factors including consumer acceptance of our products. The declaration and payment of cash dividends under our dividend policy remains at the sole discretion of the Board of Directors and will depend upon our financial results, cash requirements, future prospects, restrictions in our credit agreement and debt covenant compliance, applicable law and other factors that may be deemed relevant by the Board. 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, except as required by law. Certain non-gaap financial measures contained in this presentation, including adjusted diluted earnings per share, free cash flow, adjusted EBITDA, net debt, total leverage, adjusted operating income and other adjusted measures, are from continuing operations and have been adjusted to eliminate the net expense or net gain related to certain items identified in our earnings press release. A full reconciliation of these measures calculated according to GAAP and on an adjusted basis is contained in such press release, which is publicly available in the investor relations section on our website. 2

3 Highlights

4 Our Strategic Imperatives Building and Buying Strong Brands & Winning in Private Label Incremental Enterprise-Wide Cost Productivity Building our Capabilities: People, Technology & Infrastructure 4

5 Q Highlights Overall volume performance in line with our expectations Duplicate costs with timing of volume transition and network optimization plans Higher than expected freight and fuel inflation Q2 18 Q2 17 Q2 YoY Adj. Operating Income* (13) Adj. Net Income* (5) Adj. Diluted EPS* $0.16 $0.21 ($0.05) YTD FCF* *See tables in the earnings release for computation and reconciliations of these Non-GAAP measures $ millions, except per share 5

6 Business Update

7 Building and Buying Strong Brands DairyPure branded white milk maintaining flat dollar share in the white milk category at retail Launch of DairyPure Mix-Ins in Q2 Ice Cream category at retail flat versus PY; mix shift to premium and pints Gaining incremental distribution Increased stake to majority shareholder 7

8 Executing our Enterprise-Wide Productivity Plan Rescaling Our Supply Chain 7 planned plant closures; expected execution late Q3 Optimizing Spend Management New technology launched Q3 to simplify the way we buy and enforce national contract leverage Integrating Our Operating Model Simplified field structure implemented Q1; streamlining and centralizing back office processes by year-end 8

9 Financial Results Financial Results

10 Q Adjusted P&L* Gross profit declines vs PY driven by volume and mix Freight and fuel inflation driving higher Logistics expense Reduced headcount & overhead expense driving YoY G&A savings $ millions, except EPS Q2 18 $B/(W) vs. Q2 17 Adjusted Gross Profit $433 ($27) Selling & Logistics (338) 1 G&A (60) 13 Total Adjusted Operating Costs (398) 14 Adjusted Operating Income 35 (13) Adjusted EBITDA 70 (16) Interest Expense (14) % 38% PY (5) 7 Adjusted Diluted EPS $0.16 ($0.05) *See tables in the earnings release for computation and reconciliations of these non-gaap measures 10

11 $14.49 $13.53 $15.11 $16.09 $15.52 $14.35 $14.60 $14.63 $17.03 $16.67 $16.58 Significant Resin, Freight and Fuel Inflation Higher than expected FY inflation rates in resin, freight and fuel Mitigation plans will not fully offset inflation in-year Class I Q2 costs up 2% sequentially; down 6% vs PY Expect Class I costs to remain relatively benign through the balance of the year Resin Class 1 Quarterly Average Freight FY 16: $14.80 (-9%) FY 17: $16.45 (+11%) Fuel 18% 26% 31% Q3 Forecast -12% YoY Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 * Inflation rates based on Q2 rate inflation. Sources: CDI, DAT & Capturis 11

12 Free Cash Flow Performance* H1 FCF performance supported by better working capital management FCF higher in H vs prior year as we overlap $38.5 million Defined Pension Plan contribution Six Months Ended $ in millions June 30, 2018 June 30, 2017 Net Cash Provided by Operating Activities $121 $79 Capital Expenditures $38 $34 Free Cash Flow Provided by Continuing Operations* $83 $45 *See tables in the earnings release for computation and reconciliations of these Non-GAAP measures 12

13 Sound Balance Sheet Q2 net debt sequentially down from prior quarter Net debt leverage ratio steady at 2.67x Bank EBITDA Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Net Debt $ Millions / Leverage Ratio *Net debt is total consolidated funded indebtedness as calculated in accordance with our credit agreement except on an all cash netted basis. Bank EBITDA is calculated in accordance with our credit agreement. See tables in the earnings release for computation and reconciliation 13

14 2018 Outlook and Summary Lower administrative costs through enterprise-wide cost productivity plan Network optimization plans in place for execution late Q3 Timing shift of network optimization, higher inflation and private label mix impacting 2018 Committed to delivering targeted $150 million of incremental annual run-rate savings by 2020 FY Adj EPS Guidance* FY FCF Guidance* FY Capex Guidance* $ $0.52 $40 - $60MM $125 - $150MM *Guidance provided on Non-GAAP basis. 14

15 Q&A