Carr’s Milling Industries PLC

A Year of Achievement

PRELIMINARY RESULTS PRESENTATION

NOVEMBER 2008

Disclaimer

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THIS DOCUMENT IS CONFIDENTIAL AND IS BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. Although reasonable care has been taken to ensure that the facts stated in this document are accurate and that the opinions expressed are fair and reasonable, the contents of this document have not been verified by Investec Bank (UK) Limited ("Investec") or any other person. Accordingly, no representation or warranty, express or implied, is made by Investec as to the fairness, accuracy, completeness or correctness of the information and opinions contained in this document and no reliance should be placed on such information or opinions by any recipient. None of Investec or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of such information or opinions. Certain statements contained in this document constitute "forward-looking statements". Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the relevant entities, or the results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward-looking statements in this document, will in fact, occur. The information presented in this document is subject to change without notice.

Sustained growth and profit maximisation

Coherent diversified platform

10 out of 11 years of consistent growth in earnings, cash and dividends against difficult market backdrop, particularly in UK farming

Grown both organically and through targeted acquisitions

Track record of innovative product development

Successful international expansion (Germany in 2006 and USA in 1997)

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Carr’s Divisional structure

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Sales £276m FY‘08 Animal Feed

UK Dairy, beef and sheep animal feeds – 500,000 tonnes UK Crystalyx feed blocks – 18,000 tonnes USA Smartlic feed blocks – 50,000 tonnes Germany Crystalyx feed blocks – 5,700 tonnes UK AminoMax by pass protein – 11,000 tonnes

Fertiliser

Dominant market position in northern England and Scotland due to innovative niche products – 300,000 tonnes

Agriculture supplies Supplies retail and other products to the farming industry from 15 retail outlets

Sales £86m FY’08 Flour Mills – 230,000 tonnes

Top 3 independent flour miller Profitability on improving trend due to benefits of cost reduction programme

Sales £11m FY‘08 Nuclear and petrochemicals

Small, profitable non-core business

Agriculture

Food

Engineering

Carr’s Five Year Record

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Revenue £m Profit before Earnings per Dividends (p) tax* £m share* (p)

*excludes non-recurring items and amortisation of intangible assets

5.0

6.77.3

6.1

12.9

04 05 06 07 08

39.9

50.9

59.756.0

95.0

04 05 06 07 08

13.5

16.0

18.019.0

23.0

04 05 06 07 08

156

192

243253

372

04 05 06 07 08

Carr’s Income Statement

2008 2007

Sales

£’m

Op. Profit

£’m

Sales

£’m

Op. Profit

£’m

Agriculture 275.8 11.0 185.9 5.2

Food 85.6 2.0 57.0 1.4

Engineering 10.7 1.1 9.6 1.0

Other 0.2 (0.4) 0.2 (0.3)

372.3 13.7 252.7 7.3

Non-recurring items (0.1) (0.4)

Pension Costs (1.0) (1.1)

Associate & JV’s 1.7 0.7

Operating Profit 14.3 6.5

Interest (1.5) (1.0)

12.8 5.5

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Carr’s Income Statement

“One Off” Items – 2008 £m

Reported Profit 12.8

Amortisation 0.1

Deferred Pensioner buy-out (0.4) (0.3)

Adjusted Profit 12.5

Fertiliser

Inventory gain 2.5

Forward contracts (FX) 0.5

Early Autumn sales 0.6 3.6

Feed

Inventory Gain 0.2

PBT (excl “one off” items) 8.7

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152.7146.6

84.0

53.6

25.2 24.7 22.618.3 15.7

10.1

US EU China Brazil Mexico Japan Canada Russia Korea India

Feed Industry Overview

Global population growth and trends in consumption of meat, milk and egg products are driving increased production of animal feed in North America

The North American feed industry is large, representing 175 million tons or 25% of world feed population

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World Feed Production by Country and Region

Growth:

2005 1.7% 4.0% 15.5% 13.6% 3.7% 7.4% 0.9% 5.8% 9.8% 5.2%

2001 5.7% 5.9% 35.0% 38.9% 20.8% (15.8)% 9.8% 17.9% 4.4% 13.1%

(million tons of feed annually)

Source: Feed International, January 2008

Market drivers: Animal feed

Global food market being driven by

Rising population

Increased standards of living

Move to a “western” diet in Asia

Rising end product prices driving farming industry to

Improve yields

Improved animal welfare

Improve quality

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Source: United Nations, January 2008

Source: Feed International, January 2008

Agriculture – Farm Gate Milk Price

Average Annual Milk Price

24.4724.87

21.95

19.26

18.3

16.91

19.13

17.05

18.0118.45 18.46

17.94

20.66

25.44

15

17

19

21

23

25

27

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Pen

ce P

er

Lit

re

PPL

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Agriculture – Feed Wheat Price

Feed Wheat Prices August 2006 - October 2008

-

20

40

60

80

100

120

140

160

180

200

Aug-0

6

Sep-0

6

Oct-

06

Nov-0

6

Dec-0

6

Jan-0

7

Feb-0

7

Mar-

07

Apr-

07

May-0

7

Jun-0

7

Jul-07

Aug-0

7

Sep-0

7

Oct-

07

Nov-0

7

Dec-0

7

Jan-0

8

Feb-0

8

Mar-

08

Apr-

08

May-0

8

Jun-0

8

Jul-08

Aug-0

8

Sep-0

8

Oct-

08

Month

£

Feed Wh ea t Price £/T

Feed Wheat Price £/T 72 78 85 91 90 90 90 92 94 95 97 111 129 159 158 147 144 168 173 176 163 152 144 139 113 100 86

Aug-

06

Sep-

06

Oct-

06

Nov-

06

Dec-

06

Jan-

07

Feb-

07

Mar-

07

Apr-

07

May-

07

Jun-

07

Jul-

07

Aug-

07

Sep-

07

Oct-

07

Nov-

07

Dec-

07

Jan-

08

Feb-

08

Mar-

08

Apr-

08

May-

08

Jun-

08

Jul-

08

Aug-

08

Sep-

08

Oct-

08

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Agriculture – Milling Wheat Price

Milling Wheat Prices August 2006 - October 2008

0

50

100

150

200

250

Aug-0

6

Sep-0

6

Oct-

06

Nov-0

6

Dec-0

6

Jan-0

7

Feb-0

7

Mar-

07

Apr-

07

May-0

7

Jun-0

7

Jul-07

Aug-0

7

Sep-0

7

Oct-

07

Nov-0

7

Dec-0

7

Jan-0

8

Feb-0

8

Mar-

08

Apr-

08

May-0

8

Jun-0

8

Jul-08

Aug-0

8

Sep-0

8

Oct-

08

Month

£

Milling Wh ea t Price £/T

Milling Wheat Price £/T 81 89 95 100 99 98 96 98 100 102 104 126 150 184 183 175 182 193 193 194 190 179 170 164 142 150 135

Aug-

06

Sep-

06

Oct-

06

Nov-

06

Dec-

06

Jan-

07

Feb-

07

Mar-

07

Apr-

07

May-

07

Jun-

07

Jul-

07

Aug-

07

Sep-

07

Oct-

07

Nov-

07

Dec-

07

Jan-

08

Feb-

08

Mar-

08

Apr-

08

May-

08

Jun-

08

Jul-

08

Aug-

08

Sep-

08

Oct-

08

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Block and specialist feed; the solution

Low moisture feed blocks:

Improve both health and growth of animal

Improve returns for the farmer

Versatile across ruminant livestock range

Increased use in growing leisure market

Specialist feeds:

Improve performance, yield and cost efficiency

Technology led

Carr’s at forefront of development (AminoMax)

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Summarised Income Statement

Summarised income statement

12 months ended

2008

2007

Increase

Revenue (£m) 372.3 252.8 47.3%

PBT - adjusted (£m) 12.9 6.1 111.5%

- reported (£) 12.8 5.5 132.7%

EPS - adjusted (p) 95.0 56.0 69.6%

- reported (p) 93.7 50.7 84.5%

DPS (p) 23.0 18.0 27.8%

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Summarised Balance Sheet

Balance Sheet 31 August 08

£m

01 September 07

£m

Non-current assets 42.0 37.8

Current assets 86.8 51.8

Current liabilities (70.1) (39.8)

Non-current liabilities (29.9) (20.9)

Net assets 28.8 28.9

Minority interests – equity (2.6) (2.1)

Equity shareholders’ funds 26.2 26.8

Net debt 17.5 15.4

Gearing 66.8% 57.0%

Net assets per share 299p 324p

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Acquisition

Acquiring Wälischmiller for €5.9m

Leading supplier of remote handling equipment to Europe and Japan’s nuclear industry

Acquired fixed assets and goodwill

Expected to be eps enhancing in year 1

Good fit with Carrs MSM based in UK

Strengthens our Engineering capabilities

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