For the three-month periods ended December 31

We are presenting the results for the third quarter of fiscal 207, which ended on December 3, 206. Net earnings totalled $97.4 million, an increase of $22.2 million or 2.7%. Adjusted net earnings totalled $97.4 million, an increase of $22.0 million or 2.5%. Earnings before interest, income taxes, depreciation, amortization, gain on disposal of a business, acquisition and restructuring costs (adjusted EBITDA ) amounted to $346.6 million, an increase of $26.2 million or 8.2%. Revenues for the quarter amounted to $2.966 billion, an increase of $65. million or 2.2%. Adjusted earnings per share (basic and diluted) were $0.50 and $0.49, respectively for the quarter as compared to $0.45 and $0.44 for the corresponding quarter last fiscal year, an increase of.% and.4% respectively. (in millions of Canadian (CDN) dollars, except per share amounts) (unaudited) For the three-month periods For the nine-month periods 206 205 206 205 Revenues 2,966. 2,90.0 8,442.8 8,257.5 Adjusted EBITDA 346.6 320.4,005.4 86.0 Net earnings 97.4 75.2 565.9 460.2 Adjusted net earnings 97.4 75.4 565.9 462. Earnings per share Basic 0.50 0.44.44.7 Diluted 0.49 0.44.42.6 Adjusted earnings per share Basic 0.50 0.45.44.8 Diluted 0.49 0.44.42.6 In the Canada Sector, adjusted EBITDA increased due to better operational efficiencies, as well as higher sales volumes and a favourable product mix. In the USA Sector, the combined effect of the fluctuation of the average block market 2 per pound of cheese and the average butter market 3 price per pound, as well as an unfavourable product mix negatively impacted revenues, as compared to the same quarter last fiscal year. Adjusted EBITDA increased due to a better alignment of selling prices with fluctuating commodity prices, lower ingredients costs and improved operational efficiencies. Market factors 4 of approximately $3 million negatively affected adjusted EBITDA, as compared to the same quarter last fiscal year. In the International Sector, revenues increased due to higher selling prices in the domestic market and higher sales volumes in both the domestic and export markets. Selling prices on the international cheese and dairy ingredient market have also increased during the quarter. Adjusted EBITDA was positively impacted by higher selling prices in the export market. The fluctuation of the Canadian dollar versus foreign currencies during the quarter had a negative impact on revenues of approximately $44 million, as compared to the same quarter last fiscal year, mainly due to the weakening of the Argentine peso. This fluctuation positively impacted adjusted EBITDA by approximately $3 million, as compared to the same quarter last fiscal year. The Board of Directors approved a dividend of $0.5 per share payable on March 7, 207 to common shareholders of record on March 7, 207. Adjusted EBITDA, adjusted net earnings and adjusted earnings per share (basic and diluted) are non-ifrs measures. Refer to Measurement of Results not in Accordance with International Financial Reporting Standards included on page 3 of this report for the definition of these terms. 2 Average block market is the average daily price of a 40 pound block of cheddar traded on the Chicago Mercantile Exchange (CME), used as the base price for cheese. 3 Average butter market is the average daily price for Grade AA Butter traded on the CME, used as the base price for butter. 4 Market factors include the average block market per pound of cheese and its effect on the absorption of fixed costs and on the realization of inventories, the effect of the relationship between the average block market per pound of cheese and the cost of milk as raw material, the market pricing impact related to sales of dairy ingredients, as well as the impact of the average butter market price related to dairy food product sales. SAPUTO INC. Q3 207 Page

Management s Discussion and Analysis The purpose of this management report is to provide investors with a greater understanding of the Company s business, performance and strategy, as well as to analyze the results and the financial position of the Company for the quarter ended December 3, 206. It should be read while referring to our condensed interim consolidated financial statements and accompanying notes for the three and nine-month periods, 206 and 205. The Company s condensed interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standards Board. All dollar amounts are in Canadian dollars, unless otherwise indicated. This report takes into account material elements between December 3, 206 and February 2, 207, the date on which this report was approved by the Company s Board of Directors. Additional information about the Company, including its Annual Report and Annual Information Form for the year ended March 3, 206, can be obtained on SEDAR at www.sedar.com. CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements within the meaning of securities laws. These statements are based, among other things, on Saputo s assumptions, expectations, estimates, objectives, plans and intentions as of the date hereof regarding projected revenues and expenses, the economic, industry, competitive and regulatory environments in which the Company operates or which could affect its activities, its ability to attract and retain customers and consumers, as well as the availability and cost of milk and other raw materials and energy supplies, its operating costs and the pricing of its finished products on the various markets in which it carries on business. These forward-looking statements include, among others, statements with respect to the Company s short and medium term objectives, outlook, business projects and strategies to achieve those objectives, as well as statements with respect to the Company s beliefs, plans, objectives and expectations. The words may, should, will, would, believe, plan, expect, intend, anticipate, estimate, foresee, objective, continue, propose or target, or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements. By their nature, forward-looking statements are subject to a number of inherent risks and uncertainties. Actual results could differ materially from the conclusion, forecast or projection stated in such forward-looking statements. As a result, the Company cannot guarantee that any forward-looking statements will materialize. Assumptions, expectations and estimates made in the preparation of forward-looking statements and risks that could cause actual results to differ materially from current expectations are discussed in the Company s materials filed with the Canadian securities regulatory authorities from time to time, including the Risks and Uncertainties section of the Management s Discussion and Analysis included in the Company s 206 Annual Report. Forward-looking statements are based on Management s current estimates, expectations and assumptions, which Management believes are reasonable as of the date hereof, and, accordingly, are subject to changes after such date. You should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. Except as required under applicable securities legislation, Saputo does not undertake to update or revise these forwardlooking statements, whether written or verbal, that may be made from time to time by itself or on its behalf, whether as a result of new information, future events or otherwise. SAPUTO INC. Q3 207 Page 2

MEASUREMENT OF RESULTS NOT IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS In certain instances, the Company makes references to terms in evaluating financial performance measures, such as adjusted EBITDA, adjusted net earnings and adjusted earnings per share, that hold no standardized meaning under IFRS. These non-ifrs measurements are therefore not likely to be comparable to similarly titled or described measures in use by other publicly traded companies nor do they indicate that excluded items are non-recurring. The Company uses earnings before interest, income taxes, depreciation, amortization, gain on disposal of a business, acquisition and restructuring costs (adjusted EBITDA) as a performance measure as it is a common industry measure and reflects the ongoing profitability of the Company s consolidated business operations. Adjusted net earnings is defined by the Company as net earnings prior to the inclusion of a gain on disposal of a business, acquisition and restructuring costs, net of applicable income taxes, if any. Adjusted earnings per share is defined as adjusted net earnings attributable to shareholders of Saputo Inc. per basic and diluted common share. The most comparable IFRS financial measures to the ones used by the Company are earnings before income taxes, as well as net earnings and earnings per share (basic and diluted). Adjusted EBITDA, adjusted net earnings and adjusted earnings per share, as used by Management, provide precision and comparability with regards to the Company s ongoing operation. They also provide readers with a representation of the activities considered of relevance to the Company s financial performance through the inclusion of additional financial information that can be used to identify trends or additional disclosures that provide information into the manner in which the Company operated. Non-IFRS measures also provide comparability to the Company s prior year results. The definitions provided above are used in the context of the results and activities for the three and nine-month periods, 206. They are subject to change based on future transactions and as deemed necessary by Management in order to provide a better understanding and comparability of future results and activities of the Company. A reconciliation of earnings before income taxes, net earnings and earnings per share to adjusted EBITDA, adjusted net earnings and adjusted earnings per share for the three and nine-month periods in which Management has presented these adjusted measures is provided below. (in millions of CDN dollars) For the three-month periods ended December 3 For the nine-month periods ended December 3 206 205 206 205 Earnings before income taxes 285.9 250.6 822.2 659.3 Other financial charges 0.6 7.4 4.2 9.0 Interest on long-term debt 9.2 2.0 28.6 36.2 Gain on disposal of a business Acquisition costs 0.3 2.7 Restructuring costs Depreciation and amortization 50.9 50. 50.4 43.8 Adjusted EBITDA 346.6 320.4,005.4 86.0 (in millions of CDN dollars, except per share amounts) For the three-month periods 206 205 Per Share Per Share Total Basic Diluted Total Basic Diluted Net earnings 96. 0.50 0.49 74.5 0.44 0.44 Gain on disposal of a business 2 Acquisition costs 2 0.2 0.0 Restructuring costs 2 Adjusted net earnings 96. 0.50 0.49 74.7 0.45 0.44 Attributable to shareholders of Saputo Inc. 2 Net of income taxes SAPUTO INC. Q3 207 Page 3

(in millions of CDN dollars, except per share amounts) For the nine-month periods 206 205 Per Share Per Share Total Basic Diluted Total Basic Diluted Net earnings 563.5.44.42 459.7.7.6 Gain on disposal of a business 2 Acquisition costs 2.9 0.0 Restructuring costs 2 Adjusted net earnings 563.5.44.42 46.6.8.6 Attributable to shareholders of Saputo Inc. 2 Net of income taxes OPERATING RESULTS Consolidated revenues for the quarter, 206 totalled $2.966 billion, an increase of approximately $65 million or 2.2%, as compared to $2.90 billion for the corresponding quarter last fiscal year. The increase is mainly due to higher sales volumes and higher selling prices related to the increase of the cost of milk as raw material in the Canada Sector and the International Sector. Higher international selling prices of cheese and dairy ingredients increased revenues, as compared to the same quarter last fiscal year. This increase was partially offset by the fluctuation of the average block market per pound of cheese and the average butter market 2 price per pound by approximately $6 million, as compared to the same quarter last fiscal year. Moreover, the fluctuation of the Canadian dollar versus foreign currencies decreased revenues by approximately $44 million. For the nine-month period, 206, revenues totalled $8.443 billion, an increase of approximately $85 million or 2.2% in comparison to $8.258 billion for the same period last fiscal year. The increase is mainly due to higher sales volumes and higher selling prices related to the increase of the cost of milk as raw material in the Canada Sector and the International Sector. The inclusion of revenues from the companies forming Woolwich Dairy (Woolwich Acquisition) positively impacted revenues. Additionally, revenues increased due to higher international selling prices of cheese that was partially offset by lower prices of dairy ingredients, as compared to the corresponding period last fiscal year. A lower average block market per pound of cheese, partially offset by the fluctuation of the average butter market 2 price, decreased revenues by approximately $59 million. Moreover, the fluctuation of the Canadian dollar versus foreign currencies decreased revenues by approximately $8 million. Consolidated adjusted EBITDA for the third quarter of fiscal 207 totalled $346.6 million, an increase of $26.2 million or 8.2% in comparison to $320.4 million for the same quarter last fiscal year. The increase is due to better operational efficiencies, higher selling prices of cheese and dairy ingredients, as well as higher sales volumes. Unfavourable market factors in the US of approximately $3 million and an unfavourable product mix, as well as higher administrative expenses, mainly due to the ERP (Enterprise Resource Planning) initiative, decreased adjusted EBITDA. Also, the fluctuation of the Canadian dollar versus foreign currencies had a favourable impact on adjusted EBITDA of approximately $3 million, as compared to the same quarter last fiscal year. For the nine-month period, 206, adjusted EBITDA totalled $.005 billion, an increase of $44.4 million or 6.8%, as compared to $86.0 million for the corresponding period last fiscal year. The increase is due to higher sales volumes, better operational efficiencies, lower warehousing and logistical costs, as well as favourable market factors in the US which increased adjusted EBITDA by approximately $6 million. Additionally, the inclusion of the Woolwich Acquisition positively impacted adjusted EBITDA. The increase was partially offset by lower international selling prices of cheese and dairy ingredients without a similar decline of the cost of milk as raw material, as well as higher administrative expenses, mainly due to the ERP initiative. As a result of lower international market selling prices, inventory was written down by approximately $2 million, as compared to approximately $3 million for the same period last fiscal year. Finally, the fluctuation of the Canadian dollar versus foreign currencies had a favourable impact on adjusted EBITDA of approximately $7 million, as compared to the same period last fiscal year. Average block market is the average daily price of a 40 pound block of cheddar traded on the Chicago Mercantile Exchange (CME), used as the base price for cheese. 2 Average butter market is the average daily price for Grade AA Butter traded on the CME, used as the base price for butter. SAPUTO INC. Q3 207 Page 4

OTHER CONSOLIDATED RESULT ITEMS Depreciation and amortization for the third quarter of fiscal 207 totalled $50.9 million, an increase of $0.8 million, in comparison to $50. million for the same quarter last fiscal year. For the nine-month period, 206, depreciation and amortization expense amounted to $50.4 million, an increase of $6.6 million, as compared to $43.8 million for the corresponding period last fiscal year. These increases are mainly attributed to the fluctuation of the Canadian dollar versus foreign currencies, as well as additions to property, plant and equipment, increasing the depreciable base. In fiscal 206, acquisition costs amounted to $0.3 million and $2.7 million, respectively, for the three and nine-month periods, 205 (none in the current fiscal year). Net interest expense for the three-month period, 206 decreased by $9.6 million in comparison to the same quarter last fiscal year. For the nine-month period, 206, net interest expense decreased by $22.4 million compared to the corresponding period last fiscal year. These decreases are mainly attributed to a lower level of long-term debt and lower bank loans denominated in Argentine peso which bear high interest rates. Income taxes for the third quarter of fiscal 207 totalled $88.5 million, reflecting an effective tax rate of 3.0% compared to 30.% for the same quarter last fiscal year. Income taxes for the nine-month period, 206 totalled $256.3 million, reflecting an income tax rate of 3.2% in comparison to 30.2% for the same period last fiscal year. The income tax rate varies and could increase or decrease based on the amount and source of taxable income, amendments to tax legislations and income tax rates, changes in assumptions, as well as estimates used for tax assets and liabilities by the Company and its affiliates. Net earnings totalled $97.4 million for the quarter, 206, compared to $75.2 million for the same quarter last fiscal year. For the nine-month period, 206, net earnings totalled $565.9 million, as compared to $460.2 million for the same period last fiscal year. Adjusted net earnings totalled $97.4 million for the quarter, 206, compared to $75.4 million for the same quarter last fiscal year. For the nine-month period, 206 adjusted net earnings totalled $565.9 million, as compared to $462. million for the same period last fiscal year. SAPUTO INC. Q3 207 Page 5

SELECTED QUARTERLY FINANCIAL INFORMATION (in millions of CDN dollars, except per share amounts) Fiscal years 207 206 205 Q3 Q2 Q Q4 Q3 Q2 Q Q4 Revenues 2,966. 2,845.3 2,63.4 2,734.0 2,90.0 2,792. 2,564.4 2,53.8 Adjusted EBITDA 346.6 340.6 38.2 33. 320.4 28.7 258.9 232.0 Net earnings 97.4 9.8 76.7 4.2 75.2 48.6 36.4 57.4 Gain on disposal of a business 2 (25.9) Acquisition costs 2 0.5 0.2. 0.6 0.5 Restructuring costs 2 23. (4.7) Adjusted net earnings 97.4 9.8 76.7 64.8 75.4 49.7 37.0 27.3 Attributable to: Shareholders of Saputo Inc. 96. 90.9 76.5 65.0 74.7 49.0 37.9 26.3 Non-controlling interest.3 0.9 0.2 (0.2) 0.7 0.7 (0.9).0 97.4 9.8 76.7 64.8 75.4 49.7 37.0 27.3 Earnings per share Basic 0.50 0.49 0.45 0.36 0.44 0.38 0.35 0.40 Diluted 0.49 0.48 0.44 0.36 0.44 0.37 0.34 0.39 Adjusted earnings per share Basic 0.50 0.49 0.45 0.42 0.45 0.38 0.35 0.32 Diluted 0.49 0.48 0.44 0.4 0.44 0.38 0.34 0.32 Adjusted EBITDA, adjusted net earnings and adjusted earnings per share (basic and diluted) are non-ifrs measures. Refer to the section Measurement of Results not in Accordance with International Financial Reporting Standards included on page 3 of this report for the definition of these terms. 2 Net of income taxes. Consolidated selected factors positively (negatively) affecting adjusted EBITDA (in millions of CDN dollars) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Market factors, 2 (3) 20 () 9 (4) (37) 3 Inventory write-down () () (5) (3) Foreign currency exchange, 3 3 3 5 29 27 5 As compared to the same quarter of the last fiscal year. 2 Market factors include the average block market per pound of cheese and its effect on the absorption of fixed costs and on the realization of inventories, the effect of the relationship between the average block market per pound of cheese and the cost of milk as raw material, the market pricing impact related to sales of dairy ingredients, as well as the impact of the average butter market price related to dairy food product sales. 3 Foreign currency exchange includes effect on adjusted EBITDA of conversion of US dollars, Australian dollars and Argentine pesos to Canadian dollars. LIQUIDITY, FINANCIAL AND CAPITAL RESOURCES (in millions of CDN dollars) For the three-month periods For the nine-month periods 206 205 206 205 Cash generated from operating activities 33. 296.3,052.7 78.6 Net cash generated from operating activities 258.3 224.5 86.2 55.8 Cash used for investing activities (73.0) (60.4) (207.9) (388.0) Cash (used) generated for financing activities (92.7) 5. (402.2) 39.9 Increase in cash and cash equivalents 92.6 69.2 25. 203.7 For the three-month period, 206, cash generated from operating activities amounted to $33. million in comparison to $296.3 million for the corresponding quarter last fiscal year, an increase of $6.8 million. For the nine-month period, 206, cash generated from operating activities amounted to $.053 billion in comparison to $78.6 million for the corresponding period last fiscal year, an increase of $27. million. SAPUTO INC. Q3 207 Page 6

Net cash generated from operating activities for the three-month period, 206, amounted to $258.3 million in comparison to $224.5 million for the corresponding quarter last fiscal year, an increase in liquidity of $33.8 million. For the nine-month period, 206, net cash generated from operating activities amounted to $86.2 million in comparison to $55.8 million for the corresponding period last fiscal year. This additional liquidity is due to an increase in non-cash operating working capital items of $25.3 million driven by the fluctuation in accounts payable, as well as inventories in line with the fluctuation of market prices. Also, an increase in adjusted EBITDA 2 of $44.4 million contributed to additional liquidity. Investing activities for the three-month period, 206 were mainly comprised of additions to property, plant and equipment of $50.7 million and additions to software licenses and professional service intangibles of $22.9 million related to the ERP initiative. For the nine-month period, 206, investing activities consisted mainly of additions to property, plant and equipment of $60.3 million and additions to intangibles of $60.3 million related to the ERP initiative. Financing activities for the three-month period, 206 consisted mainly of an increase in bank loans of $23.6 million and long-term debt of $300.0 million resulting from the issuance of medium term notes. The additional funds were used to repay an unsecured bank term loan of $22.5 million. In addition, shares were issued as part of the stock option plan for $3.4 million. Finally, the Company repurchased share capital for $58.7 million and paid $58.5 million in dividends. Financing activities for the nine-month period, 206 consisted mainly of an increase in long-term debt of $600.0 million resulting from the issuance of medium term notes. The additional funds were used to repay an unsecured bank term loan of $22.5 million, as well as repay unsecured senior notes of $220.0 million. In addition, shares were issued as part of the stock option plan for $47.0 million. Finally, the Company repurchased share capital for $237.6 million, paid $70.4 million in dividends and decreased bank loans. Liquidity (in millions of CDN dollars, except ratio) December 3, 206 March 3, 206 Current assets 2,499.0 2,75.8 Current liabilities,56.5,356.8 Working capital,342.5 89.0 Working capital ratio 2.6.60 Capital Management The Company s capital strategy requires a well-balanced financing structure in order to maintain flexibility to implement growth initiatives, while allowing it to pursue disciplined capital investments and maximize shareholder value. The Company targets a long-term leverage of approximately 2.0 times net debt to adjusted EBITDA 2. From time to time, the Company may deviate from its long-term leverage target to pursue acquisitions and other strategic opportunities. Should such a scenario arise, the Company expects to deleverage over a reasonable period of time in order to seek to maintain its investment grade ratings. (in millions of CDN dollars, except ratio and number of shares and options) December 3, 206 March 3, 206 Cash and cash equivalents 433.7 64.3 Bank loans 89.6 78.2 Net debt,55.9,467. Trailing twelve-months adjusted EBITDA 2,38.5,74. Net debt-to-trailing twelve-months adjusted EBITDA 2 0.88.25 Number of common shares 389,75,848 392,520,687 Number of stock options 8,439,025 6,903,824 2 Total debt, net of cash and cash equivalents. Adjusted EBITDA is a non-ifrs measure. Refer to the section Measurement of Results not in Accordance with International Financial Reporting Standards included on page 3 of this report for the definition of this term. As at December 3, 206, the Company had $433.7 million in cash and cash equivalents and available bank credit facilities of approximately $.0 billion, of which $89.6 million were drawn. See Notes 5 and 6 to the condensed interim consolidated financial statements for additional information related to bank loans and long-term debt. Share capital authorized by the Company is comprised of an unlimited number of common and preferred shares. The common shares are voting and participating. The preferred shares can be issued in one or more series, and the terms and privileges of each series is to be determined at the time of their issuance. No preferred shares are outstanding. As at January 3, 207, 387,853,369 common shares and 8,308,364 stock options were outstanding. SAPUTO INC. Q3 207 Page 7

CONTRACTUAL OBLIGATIONS The Company's contractual obligations consist of commitments to repay certain of its long-term debts, as well as certain leases of premises, equipment and rolling stock. (in millions of CDN dollars) December 3, 206 March 3, 206 Long-term Minimum Long-term Minimum Total debt lease debt lease Less than year 28.6 28.6 244.9 30.5 275.4 2 years 24.3 24.3 24.9 22.8 47.7 2 3 years 900.0 9.9 99.9 70.9 8.8 89.7 3 4 years 5.7 5.7,2.5 4.9,27.4 4 5 years 300.0.6 3.6.9.9 More than 5 years 300.0 32.2 332.2 32. 32.,500.0 32.3,632.3,453.2 3.0,584.2 BALANCE SHEET With regards to balance sheet items as at December 3, 206 compared to those as at March 3, 206, the variances are the result of normal operational fluctuations. FOLLOW-UP ON CERTAIN SPECIFIC ITEMS OF THE ANALYSIS For an analysis of guarantees, related party transactions, accounting standards, critical accounting policies and use of accounting estimates, future standards, new accounting standards adopted, risks and uncertainties, as well as a sensitivity analysis of interest rate and US currency fluctuations, the discussion provided in the Company s 206 Annual Report can be consulted (pages 8 to 25 of the Management s Discussion and Analysis). DISCLOSURE CONTROLS AND PROCEDURES The Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) are responsible for establishing and maintaining disclosure controls and procedures. The Company s disclosure controls and procedures are designed to provide reasonable assurance that material information relating to the Company is made known to Management in a timely manner to allow the information required to be disclosed under securities legislation to be recorded, processed, summarized and reported within the time periods specified in securities legislation. INTERNAL CONTROLS OVER FINANCIAL REPORTING The CEO and the CFO are responsible for establishing and maintaining internal control over financial reporting. The Company s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. The CEO and the CFO, along with Management, have concluded, after having conducted an evaluation and to the best of their knowledge, that, as at December 3, 206, no change in the Company s internal control over financial reporting occurred that could have materially affected or is reasonably likely to materially affect the Company s internal control over financial reporting. Total SAPUTO INC. Q3 207 Page 8

INFORMATION BY SECTOR Canada Sector (in millions of CDN dollars) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Revenues,044.5,029.0 979. 932.8 992.7 958.5 97.5 Adjusted EBITDA 6.9 9.8 2.3 08.5 07.5 99.4 98. Adjusted EBITDA is a non-ifrs measure. Refer to the section Measurement of Results not in Accordance with International Financial Reporting Standards included on page 3 of this report for the definition of this term. The Canada Sector consists of the Dairy Division (Canada). Revenues Revenues for the Canada Sector totalled $.045 billion for the quarter, 206, an increase of approximately $52 million or 5.2%, as compared to $992.7 million for the corresponding quarter last fiscal year. The increase in revenues was mainly due to higher selling prices related to the increase in the cost of milk as raw material as compared to the same quarter last fiscal year, as well as higher sales volumes and a favourable product mix. Since the beginning of the fiscal year, revenues from the Canada Sector totalled $3.053 billion, an increase of approximately $84 million or 6.4% in comparison to $2.869 billion for the same period last fiscal year. Higher sales volumes and a favourable product mix increased revenues, as compared to the same period last fiscal year. Additionally, higher selling prices related to the increase in the cost of milk as raw material, as well as the inclusion of revenues from the Woolwich Acquisition positively impacted revenues during the period. Adjusted EBITDA Adjusted EBITDA for the Canada Sector totalled $6.9 million for the quarter, 206, an increase of $9.4 million or 8.7%, as compared to $07.5 million for the corresponding quarter last fiscal year. Better operational efficiencies through raw material and ingredients optimization, higher sales volumes, a favourable product mix, increased prices in the international dairy ingredient market, as well as lower warehousing and logistical costs positively impacted adjusted EBITDA. This increase was partially offset by higher administrative expenses, mainly due to the ERP initiative, and higher marketing expenses. The fluctuation of the Canadian dollar versus foreign currencies had a negative impact on adjusted EBITDA of approximately $ million mainly due to intercompany receivables denominated in foreign currencies. Since the beginning of the fiscal year, adjusted EBITDA totalled $349.0 million, an increase of $44 million or 4.4%, as compared to $305.0 million for the same period last fiscal year. Better operational efficiencies through raw material and ingredients optimization, higher sales volumes, a favourable product mix and lower warehousing and logistical costs positively impacted adjusted EBITDA as compared to the same period last fiscal year. Additionally, the inclusion of the Woolwich Acquisition, as well as an increase in international dairy ingredient market prices positively impacted adjusted EBITDA. This increase was partially offset by higher administrative expenses, mainly due to the ERP initiative and costs related to the June 206 recall of Neilson branded chocolate milk products. The fluctuation of the Canadian dollar versus foreign currencies had a positive impact on adjusted EBITDA of approximately $ million mainly due to intercompany receivables denominated in foreign currencies. SAPUTO INC. Q3 207 Page 9

USA Sector (in millions of CDN dollars) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Revenues,537.4,49.6,348.5,449.3,574.9,459.2,303.3 Adjusted EBITDA 200. 96. 87.5 9.0 90. 72.7 7.7 Adjusted EBITDA is a non-ifrs measure. Refer to the section Measurement of Results not in Accordance with International Financial Reporting Standards included on page 3 of this report for the definition of this term. Selected factors positively (negatively) affecting adjusted EBITDA (in millions of CDN dollars) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Market factors, 2 (3) 20 () 9 (4) (37) 3 US currency exchange 8 5 25 27 5 As compared to same quarter of previous fiscal year. 2 Market factors include the average block market per pound of cheese and its effect on the absorption of fixed costs and on the realization of inventories, the effect on the relationship between the average block market per pound of cheese and the cost of milk as raw material, the market pricing impact related to sales of dairy ingredients, as well as the impact of the average butter market price related to dairy food product sales. Other pertinent information (in US dollars, except for average exchange rate) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Average block market per pound of cheese.738.689.42.479.582.679.642 Closing block price per pound of cheese.660.533.660.460.508.670.620 Average butter market price per pound.997 2.49 2.25 2.055 2.562 2.243.877 Closing butter market price per pound 2 2.268.898 2.350.955 2.080 2.50.98 Average whey market price per pound 3 0.380 0.299 0.24 0.247 0.226 0.309 0.430 Spread 4 0.2 0.9 0.25 0.28 0.52 0.20 0.078 US average exchange rate to Canadian dollar 5.334.305.288.37.333.309.229 Closing block price is the price of a 40 pound block of cheddar traded on the Chicago Mercantile Exchange (CME) on the last business day of each quarter. 2 Closing butter market price is the price for Grade AA Butter traded on the CME, on the last business day of each quarter. 3 Average whey market price is based on Dairy Market News published information. 4 Spread is the average block market per pound of cheese less the result of the average cost per hundredweight of Class III and/or Class 4b milk price divided by 0. 5 Based on Bank of Canada published information. The USA Sector consists of the Cheese Division (USA) and the Dairy Foods Division (USA). Revenues Revenues for the USA Sector totalled $.537 billion for the quarter, 206, a decrease of approximately $38 million or 2.4%, as compared to $.575 billion for the corresponding quarter last fiscal year. The fluctuation of the average block market per pound of cheese and the butter market in the third quarter of fiscal 207, as compared to the corresponding quarter last fiscal year, decreased revenues by approximately $6 million. Additionally, an unfavourable product mix decreased revenues while sales volumes remained relatively stable. The fluctuation of the Canadian dollar versus the US dollar had a minimal impact on revenues. Since the beginning of the fiscal year, revenues from the USA Sector totalled $4.377 billion, an increase of approximately $40 million or 0.9% in comparison to $4.337 billion for the same period last fiscal year. Higher sales volumes, as well as the inclusion of the Woolwich Acquisition, positively impacted revenues. A lower average block market per pound of cheese was partially offset by a favourable fluctuation of the average butter market price, as compared to the same period last fiscal year which decreased revenues by approximately $59 million. The weakening of the Canadian dollar versus the US dollar increased revenues by approximately $56 million. SAPUTO INC. Q3 207 Page 0

Adjusted EBITDA Adjusted EBITDA for the USA Sector totalled $200. million for the quarter, 206, an increase of $0.0 million or 5.3%, as compared to $90. million for the corresponding quarter last fiscal year. The Dairy Foods Division (USA) benefitted from a better alignment of selling prices with fluctuating commodity prices. Also, decreased operational costs and higher sales volumes increased adjusted EBITDA. This increase was partially offset by an unfavourable product mix, as compared to the same quarter last fiscal year. In the Cheese Division (USA), slightly lower sales volumes and higher warehousing and logistical costs, as well as higher administrative expenses, mainly due to the ERP initiative, decreased adjusted EBITDA as compared to the corresponding quarter last fiscal year. This decrease was partially offset by a decrease in ingredients costs, in comparison to the same quarter last fiscal year. The relation between the average block market per pound of cheese and the cost of milk as raw material, was unfavourable. However, a variation in the average block market per pound of cheese during the quarter versus the corresponding quarter last fiscal year had a favourable impact on both the realization of inventories and on the absorption of fixed costs. Also, a higher dairy ingredient market had a positive effect on adjusted EBITDA. These combined market factors, including unfavourable margins associated with a fluctuation of commodity prices in the Dairy Foods Division (USA), negatively impacted adjusted EBITDA by approximately $3 million, as compared to the same quarter last fiscal year. The fluctuation of the Canadian dollar versus the US dollar had no incidence on adjusted EBITDA. Since the beginning of the fiscal year, adjusted EBITDA totalled $583.7 million, an increase of $49.2 million or 9.2%, as compared to $534.5 million for the corresponding period last fiscal year. The Dairy Foods Division (USA) benefitted from higher sales volumes, a favourable product mix, increased operational efficiencies, as well as lower logistical costs, as compared to the same period last fiscal year. In the Cheese Division (USA), higher sales volumes, as well as a decrease in ingredients costs positively affected adjusted EBITDA as compared to the corresponding period last fiscal year. This increase was partially offset by higher administrative expenses, mainly due to the ERP initiative, increased sales and marketing expenses, as well as higher warehousing and logistical costs. The variation in the average block market per pound of cheese for the nine-month period, 206, as compared to the same period last fiscal year, resulted in a favourable realization of inventories. This increase was partially offset by an unfavourable relationship between the average block market per pound of cheese and the cost of milk as raw material, a lower dairy ingredient market, as well as unfavourable margins associated with higher commodity prices in the Dairy Foods Division (USA). These combined market factors increased adjusted EBITDA by approximately $6 million. The weakening of the Canadian dollar versus the US dollar had a positive impact on adjusted EBITDA of approximately $8 million. SAPUTO INC. Q3 207 Page

International Sector (in millions of CDN dollars) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Revenues 384.2 324.7 303.8 35.9 333.4 374.4 343.6 Adjusted EBITDA 29.6 24.7 8.4 3.6 22.8 9.6 (0.9) Adjusted EBITDA is a non-ifrs measure. Refer to the section Measurement of Results not in Accordance with International Financial Reporting Standards included on page 3 of this report for the definition of this term. Selected factors positively (negatively) affecting adjusted EBITDA (in millions of CDN dollars) Fiscal years 207 206 Q3 Q2 Q Q4 Q3 Q2 Q Inventory write-down () () (5) (3) Foreign currency exchange 4 3 4 As compared to same quarter of previous fiscal year. The International Sector consists of the Dairy Division (Argentina), the Dairy Division (Australia) and the Dairy Ingredients Division. The Dairy Ingredients Division includes national and export ingredients sales from the North American divisions, as well as cheese exports from these same divisions. Revenues Revenues for the International Sector totalled $384.2 million for the quarter, 206, an increase of $50.8 million or 5.2%, as compared to $333.4 million for the corresponding quarter last fiscal year. In the Dairy Division (Argentina), higher selling prices in both the domestic and export markets, as well as the weakening of the Argentine peso versus the US dollar in the export market increased revenues, as compared to the same quarter last fiscal year. This was partially offset by lower sales volumes in both domestic and export markets. Revenues of the Dairy Division (Australia) increased due to higher sales volumes in both the domestic and export markets, as well as higher selling prices in the domestic market. Revenues of the Dairy Ingredients Division increased as compared to the corresponding quarter last fiscal year due to higher selling prices in the international cheese and dairy ingredient markets, as well as higher sales volumes. The fluctuation of the Canadian dollar versus the foreign currencies used in the International Sector negatively impacted revenues by approximately $4 million, as compared to the same quarter last fiscal year, mainly due to the weakening of the Argentine peso. Since the beginning of the fiscal year, revenues for the International Sector totalled $.03 billion, a decrease of approximately $39 million or 3.7% in comparison to $.052 billion for the same period last fiscal year. In the Dairy Division (Argentina), higher selling prices in the domestic market and the weakening of the Argentine peso versus the US dollar in the export market increased revenues, as compared to the same period last fiscal year. This was partially offset by lower sales volumes in both the domestic and export markets, which negatively affected revenues. Revenues of the Dairy Division (Australia) increased due to higher sales volumes in the domestic market. This increase was partially offset by lower international cheese and dairy ingredient market prices, as well as lower selling prices in the domestic market. Revenues of the Dairy Ingredients Division decreased as compared to the corresponding period last fiscal year due to lower sales volumes and an unfavourable product mix, as well as lower selling prices in the international markets. The fluctuation of the Canadian dollar versus the foreign currencies used in the International Sector negatively impacted revenues by approximately $37 million, as compared to the same period last fiscal year, mainly due to the weakening of the Argentine peso. SAPUTO INC. Q3 207 Page 2

Adjusted EBITDA Adjusted EBITDA for the International Sector totalled $29.6 million for the quarter, 206, an increase of $6.8 million or 29.8%, as compared to $22.8 million for the corresponding quarter last fiscal year. In the Dairy Division (Argentina), higher selling prices in the domestic and export markets positively impacted adjusted EBITDA. In the export market, the weakening of the Argentine peso versus the US dollar positively impacted adjusted EBITDA, as compared to the same quarter last year, partially offset by lower sales volumes in the domestic and export markets. In the Dairy Division (Australia), higher sales volumes in the domestic and export markets, as well as lower warehousing and logistical costs positively impacted adjusted EBITDA. This increase was partially offset by lower international cheese and dairy ingredient market prices. Adjusted EBITDA of the Dairy Ingredients Division remained stable, as compared to the same quarter last year. The fluctuation of the Canadian dollar versus foreign currencies had a positive impact on adjusted EBITDA of approximately $4 million. Since the beginning of the fiscal year, adjusted EBITDA totalled $72.7 million, an increase of $5.2 million, as compared to $2.5 million for the same period last fiscal year. In the Dairy Division (Argentina), higher selling prices in the domestic market positively impacted adjusted EBITDA. In the export market, the weakening of the Argentine peso versus the US dollar positively impacted adjusted EBITDA, as compared to the same period last year. This increase was partially offset by lower sales volumes in both the domestic and export markets due to a decrease in milk availability as raw material caused by severe floods in the previous quarter. In the Dairy Division (Australia), a realignment of raw milk cost with current market conditions, higher sales volumes in the domestic market, as well as lower warehousing and logistical costs positively impacted adjusted EBITDA. This increase was partially offset by low international cheese and dairy ingredient market prices. Adjusted EBITDA of the Dairy Ingredients Division slightly decreased due to lower selling prices in the international markets and lower sales volumes. As a result of the decrease in market selling prices, inventory was written down by approximately $2 million since the beginning of the fiscal year, as compared to approximately $3 million for the same period last fiscal year. The fluctuation of the Canadian dollar versus foreign currencies had a positive impact on adjusted EBITDA of approximately $8 million. SAPUTO INC. Q3 207 Page 3

OUTLOOK International cheese and dairy ingredient markets have recovered since last quarter. Despite typical fluctuations inherent to international markets, we do not expect significant decreases in international cheese prices in the calendar year 207. As for the dairy ingredient market, we expect the prices to remain relatively stable for the same period. In Canada, the prevailing competitive market is anticipated to continue over the course of the next fiscal year and remains a challenge for the Company. In order to mitigate downward margin pressures, low growth and competitive market conditions, we will continue to focus on reviewing overall activities to improve operational efficiency. As such, we completed the closure of our Sydney (Nova Scotia) plant in June 206 and the Princeville (Quebec) plant in August 206, and will close the Ottawa (Ontario) plant in December 207, as previously announced. As of April, 207, all merchandising duties in the Atlantic region will be transferred to retailers. This restructuring will impact approximately 90 employees, who will be provided severance and outplacement support. We will continue to support our leading brands in an effort to pursue growth and strengthen our market presence through various promotions, advertising and innovative packaging aimed at enhancing customer experience. In the Cheese Division (USA), we will focus on increasing operational efficiencies and controlling costs in order to mitigate the negative impact on adjusted EBITDA of the international cheese and dairy ingredient market fluctuations. We will continue investments aimed at enhancing blue cheese production capacity and strengthening our position as a category leader in the market. The Company benefits from the implementation of its business management model within the Dairy Foods Division (USA), including various measures aimed at being a low-cost producer. The Dairy Foods Division (USA) continues to focus on optimization and maximizing investment in its existing network in order to benefit from new capabilities in production, enable future growth, meet customer demand and bring new products to market. The Company will keep investing to support production capabilities, and further strengthen its competitive cost position. The International Sector will continue to pursue sales volumes growth in existing markets, as well as develop additional international markets. Also, the Sector will pursue growth of cheese export sales volumes from the Cheese Division (USA) to the extent US milk pricing is competitive with world prices. The Sector will continue to evaluate overall activities to improve efficiencies and will aim to maximize its operational flexibility to mitigate fluctuations in market conditions. The Company intends to pursue its growth activities through investment in capital projects aimed at increasing manufacturing capacity. Innovation has always been a priority, enabling us to offer products that meet consumer needs. Accordingly, additional resources have been allocated to product innovation, allowing us to continue to forge and secure long-term relationships with both customers and consumers. The Company continues to migrate to a new ERP system, a five-year project announced in fiscal 205 which started in fiscal 206 and includes planning, designing and implementing the system. Our goal remains to continue to improve overall efficiencies in all sectors and pursue growth internally and through acquisitions. (signed) Lino Saputo Lino Saputo Chairman of the Board (signed) Lino A. Saputo, Jr. Lino A. Saputo, Jr. Chief Executive Officer and Vice Chairman of the Board February 2, 207 SAPUTO INC. Q3 207 Page 4

NOTICE The condensed interim consolidated financial statements of Saputo Inc. for the three and nine-month periods ended December 3, 206 and 205 have not been reviewed by an independent auditor. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (in millions of CDN dollars, except per share amounts) (unaudited) For the three-month periods For the nine-month periods 206 205 206 205 Revenues $ 2,966. $ 2,90.0 $ 8,442.8 $ 8,257.5 Operating costs excluding depreciation, amortization, gain on disposal of a business, acquisition and restructuring costs (Note 4) 2,69.5 2,580.6 7,437.4 7,396.5 Earnings before interest, income taxes, depreciation, amortization, gain on disposal of a business, acquisition and restructuring costs 346.6 320.4,005.4 86.0 Depreciation and amortization 50.9 50. 50.4 43.8 Acquisition and restructuring costs - 0.3-2.7 Interest on long-term debt 9.2 2.0 28.6 36.2 Other financial charges (Note 9) 0.6 7.4 4.2 9.0 Earnings before income taxes 285.9 250.6 822.2 659.3 Income taxes 88.5 75.4 256.3 99. Net earnings $ 97.4 $ 75.2 $ 565.9 $ 460.2 Attributable to: Shareholders of Saputo Inc. 96. 74.5 563.5 459.7 Non-controlling interest.3 0.7 2.4 0.5 $ 97.4 $ 75.2 $ 565.9 $ 460.2 Earnings per share (Note 8) Net earnings Basic $ 0.50 $ 0.44 $.44 $.7 Diluted $ 0.49 $ 0.44 $.42 $.6 The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. SAPUTO INC. Q3 207 Page 5

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions of CDN dollars) (unaudited) For the three-month periods For the nine-month periods 206 205 206 205 Net earnings $ 97.4 $ 75.2 $ 565.9 $ 460.2 Other comprehensive income (loss): Items that may be reclassified to net earnings: Exchange differences arising from foreign currency translation 60.2 37.4 99.5 300. Net unrealized (losses) gains on cash flow hedges (Note 0) (2.6) 4.4 (.4) 6.7 Reclassification of losses (gains) on cash flow hedges to net earnings 2 0.7 (.3) (.4) (3.6) Other comprehensive income (loss) 58.3 40.5 96.7 303.2 Total comprehensive income $ 255.7 $ 35.7 $ 662.6 $ 763.4 Attributable to: Shareholders of Saputo Inc. $ 254.4 $ 35.0 $ 660.2 $ 762.9 Non-controlling interest.3 0.7 2.4 0.5 $ 255.7 $ 35.7 $ 662.6 $ 763.4 Net of income taxes of $0.3 and $0.2 for the three and nine-month periods, 206, respectively (205 - $2.3 and $4.6). 2 Net of income taxes of $0.3 and $0.8 for the three and nine-month periods, 206, respectively (205 - $. and $2.8). The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. SAPUTO INC. Q3 207 Page 6