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Dean FoodsFourth Quarter and Year End 2008Fourth Quarter and Year End 2008

Earnings Report

February 11, 2009

Forward Looking Statements

The following 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: 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 innovation and research andstrategy, (3) our branding initiatives (4) our integration, innovation, and research and development 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, which are identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K (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 Company's ability to profit from its branding initiatives depends on a numberwww.sec.gov). The Company s ability to profit from its branding initiatives depends on a number of factors including consumer acceptance of the Company's products. 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

t diti i t hi h h t t t i b d C t i GAAPevents, conditions or circumstances on which any such statement is based. Certain non-GAAP financial measures contained in this presentation, including adjusted diluted earnings per share, free cash flow, consolidated adjusted operating income and consolidated adjusted net income, have been adjusted to eliminate the net expense or net gain related to certain items identified in our press releases. A full reconciliation of these measures calculated according to GAAP and on

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p gan adjusted basis is contained in such press releases, which are publicly available on our web site at www.deanfoods.com/investors.

Today’s Prepared Remarks

Barry Sievert, VP Investor Relations & Corporate FP&A

Jack Callahan, Chief Financial OfficerR i Fi i l R ltReview Financial ResultsComments on Forward Outlook

Gregg Engles, Chairman and Chief Executive OfficerBusiness and Commodity ReviewUpdate of Strategic Initiatives

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Agenda: Jack Callahan, CFO

Dean FoodsDean Foods

Segment PerformanceSegment Performance

Cash Flow

Outlook

4

Dean Foods: 4Q 2008 Best Quarter in Company History

Adjusted Operating Income$ Millions Highlights

$185

149138

162

141

190$ Millions

Highest quarterly adjusted operating income in history of company138 141 company

Excellent profit growth across both operating segments due to top line growth strong execution

4Q 06 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08

top line growth, strong execution and a favorable dairy and energy commodity environment

Accumulating benefits of strategic% PY -19.3% -13.5% 3.1% 14.3% 27.3%

Accumulating benefits of strategic initiatives

5

Significant EPS Leverage

$ Millions, except EPS 4Q4Q20082008

B/(W) vs B/(W) vs 4Q 20074Q 200720082008 4Q 20074Q 2007

Adjusted Operating Income $ 190 27%

Interest Expense $ 73 $ 15.8

Tax Rate 38.8%

Adjusted Net Income from Continuing Operations $ 71 92%

Shares Outstanding 156 +18.3M

Adjusted Diluted EPS $ 0.46 70%

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j $

Dean Foods 2008: Solid Recovery

676

Adjusted Operating Income$ Millions

Highlights

619

676

590

631 Strengthening results driven by operational improvements, strategic initiatives, and branded

$554strategic initiatives, and branded growth

Full year results reflect the resiliency of the business

2004 2005 2006 2007 2008

resiliency of the business despite a weak Q1 and volatile energy costs

Quarterly profit growth

% PY 7.3% 11.6% 9.2% -12.7% 7.1%

2004 2005 2006 2007 2008 Quarterly profit growthQ1 = -14%Q2 = + 3%Q3 = +14%Q4 = +27%

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Q4 27%

Renewed EPS growth

$ Millions, except EPS FY FY 20082008

B/(W) vsB/(W) vsFY 2007FY 200720082008 FY 2007FY 2007

Adjusted Operating Income $ 631 7%

Interest Expense $ 308 $ 11.6

Tax Rate 38.3%

Adjusted Net Income from Continuing Operations $ 199 21%

Average Shares Outstanding 153 +16.1M


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Cash Flow

Outlook

9

Accelerating Share Gain

2.8%3 0%

4.0%

DSD DairyFluid Milk

DSD Dairy Competition

1 0%

2.0%

3.0%

1 0%

0.0%

1.0%

-1.3%-2.0%

-1.0%Competition1

-4.0%

-3.0%

1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08

10

*Competitor estimates derived from subtracting DSD Dairy pounds from USDA sales poundsQ4 contains an estimate for USDA/Competitor December sales

$22

Improving Dairy Commodity Trends

$18

$20

$22 Class I Mover

$14

$16

20082007Avg: $18.97

-12% Y-YAvg: $16.10

-23% Y-Y

$10

$12

J F M A M J J A S O N D J F M A M J J A S O N D

3Q 4Q

-12% Y-Y -23% Y-Y

$1.55

$1.65

$1.75 CME Butter

$1.25

$1.35

$1.45

20082007 Avg: $1.62+13% Y Y

Avg: $1.52+14% Y Y

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$1.05

$1.15

J F M A M J J A S O N D J F M A M J J A S O N D

3Q 4Q+13% Y-Y +14% Y-Y

DSD Dairy: 4Q 2008 Best Quarter Ever

Operating Income$ Millions Highlights

$127 131

154140

166

Highest DSD Dairy operating income in company history

$127Strategic initiatives benefitting results:

Reduction in force

4Q 07 1Q 08 2Q 08 3Q 08 4Q 08

Plant closures

Route productivity

Private label trade-down continues% PY -16.1% -14.8% 9.3% 20.5% 30.9% Private label trade-down continues

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DSD Dairy: Solid Recovery Despite High Dairy Inputs

Operating Income$ Millions Highlights

$549577

610

538

591 Operating income growth of 10% from 2007 despite continued commodity challenges

Class I Mover$549 538 commodity challenges

Profit recovery from 2007 demonstrates ability to manage high input costs over time

18.14 18.00

2004 2005 2006 2007 2008

high input costs over time

11.88

$14.98

14.9814 98

14.40

% PY -8.3% 5.1% 5.7% -11.8% 9.9% 14.98

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WhiteWave–Morningstar: Solid 4Q 2008 Sales Growth

WhiteWave Morningstar

Net Sales$ Millions B/(W) vs

4Q 07Brand Performance

$672

619652

671708


1.5%

5% Nearly Fifteen

Percent*288

8%

High-Single Digits

Mid-Single 420

4Q 07 1Q 08 2Q 08 3Q 08 4Q 08

% PY 21 1% 16 8% 10 4% 8 6% 5 3%

ModestGrowth

Digits

% PY 21.1% 16.8% 10.4% 8.6% 5.3%

14*Refers to branded milk sales

WhiteWave–Morningstar: Strong 4Q 2008 Profit Growth

Operating Income Highlights

$6169 Strong volume leverage, pricing

execution and cost management

$ Millions

45 4941

Improving pricing on the Horizon Brand

Declining butter prices late in the

4Q 07 1Q 08 2Q 08 3Q 08 4Q 08

Declining butter prices late in the quarter favorable for Morningstar

% PY -10.5% 0.5% -11.7% -4.0% 13.9%

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WhiteWave–Morningstar: 10% 2008 Sales Growth

B/(W) vsFY07

Net Sales$ Millions

Brand Performance

FY07

$1,981 2,068

2,4112,650


8%

10% Over TwentyPercent*

Low-Double1,120$ ,

WW12%High-Single

Digits

Low-Double Digits

1,530

2005 2006 2007 2008Mid-Single

Digits

g

% PY 12.4% 4.4% 16.6% 9.9%

16*Refers to branded milk sales

WhiteWave–Morningstar: 2008 Profit Flat

Operating Income Highlights

180207 205 205

$ Millions

Flat full year profit due to difficult commodity environment for Morningstar and organic milk

$136Morningstar and organic milk investments

Expect renewed profit growth in 2009*

2004 2005 2006 2007 2008

2009

% PY 31.8% 15.3% -1.1% 0.2%

17*before Hero investment




Cash Flow

Outlook

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Exceptional Cash Flow

$ MillionsTwelve Months endedTwelve Months ended

DecDec 31, 200831, 2008

Net Cash Provided by Continuing Operations $ 719.3

Capital Expenditures (257 0)Capital Expenditures (257.0)

Free Cash Flow from Operations $ 462.3

Cash Outflows for Acquisitions $ (95.9)

N t D bt R d ti $ (783 1)Net Debt Reduction $ (783.1)

Issuance of Common Stock $ 419.7

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Expecting capital expenditures up to $300 million in 2009

$877 Million of Debt Reduction Since 3Q07 Peak

$ Millions

$5,357 5,366 5,272

4 8124,812 4,724

4,635 4,489

2Q 3Q 4Q 1Q 2Q 3Q 4Q2Q 3Q 4Q 1Q 2Q 3Q 4Q

Leverage Ratio* 5.63x 5.97x 5.94x 5.56x 5.48x 5.35x 4.92x

2007 2008

20*As defined by credit agreement(s)




Cash Flow

Outlook

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Si ifi t t h di i t 2009

Solid Growth Expected in 2009

Significant momentum heading into 2009

Favorable commodity environment for now, continued volatility likely

DSDDairy

Competitive intensity remains

Expect dampened net sales growth due to category trends d d t it

WhiteWave-and non-core product exits

Anticipate WhiteWave-Morningstar return to profit growth

Hero JV promising new platform for growth requiring

Morningstar

p g p g q gapproximately six cents per share investment

Selectively investing to support longer-term strategyD F d

y g pp g gy

Increased pension expense of five cents per shareDean Foods

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At least $1.50 per share for full year

At least $0.38 per share in first quarterAdjusted

Diluted EPS

Gregg Engles, CEO

Highlights

Strong Fourth QuarterStrong Fourth QuarterDSD Dairy operating income increased 31%WhiteWave-Morningstar operating income increased 14%Dean Foods adjusted operating income increased 27%Adjusted diluted earnings per share increased 70%

Solid Recovery in 2008DSD Dairy operating income increased 10%Whit W M i t ti i fl tWhiteWave-Morningstar operating income flatDean Foods adjusted operating income increased 7%Adjusted diluted earnings per share increased 8%

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Record free cash flow at $462 million

$22

Dairy Inputs Have Collapsed

$18

$20

$22 Class I Mover

$14

$16

20082007 2009

$10

$12

J F M A M J J A S O N D J F M A M J J A S O N D J F

3Q 4Q

$1.55

$1.65

$1.75 CME Butter

$1.25

$1.35

$1.45

20082007 2009

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$1.05

$1.15

J F M A M J J A S O N D J F M A M J J A S O N D J

3Q 4Q

Lower Prices, A Rising Trend, Varied Forecasts

$20

$22

2008 Actual:

Class I Mover: 2009 Forecasts from Six Leading Dairy Economists

$18

2008 Actual: $18.00 Average

$14

$16 $13.80 High

$12.09 Mid2009 Average

$12

$ $

$10.98 Low

Estimates

$8

$10

25

$8 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Our strategies leverage these unique advantages to win

A Three Part Strategy to Wing

Drive to Lowest C t P iti

Strengthen our C F hi

Build for the F tCost Position Core Franchises Future

Improve supply chain productivity

Expand our leadership in milk

Lead growth & innovation in thechain productivity

Organize for success

leadership in milk

Increase the power of our brands

innovation in the chilled space

Leverage deep executive expertiseexecutive expertise to deliver goals

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Summary

Single best quarter in Dean Foods history

2008 full year results demonstrate a solid recovery after commodity shock of 2007

2008 Free Cash Flow of $462 million

Favorable commodities and benefits from strategicFavorable commodities and benefits from strategic initiatives position us well heading into 2009

Fi t t ff t t t t C fid t i f llFirst quarter off to a strong start. Confident in full year earnings expectations for at least $1.50 per share

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Look forward to meeting with you in New York

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