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SAPUTO DAIRY AUSTRALIA TO SELL TWO FRESH MILK PROCESSING FACILITIES

3 April 2023

(Melbourne, 03 April, 2023) – Saputo Dairy Australia (SDA) has announced its intention to further optimise its operating model by entering into a definitive agreement with Coles Group Limited to sell its fresh milk manufacturing sites at Laverton North (Victoria) and Erskine Park (NSW). The transaction is subject to customary conditions, including clearance from the Australian Competition and Consumer Commission (ACCC), and is expected to close in the second half of calendar 2023.

Fresh milk products remain an important part of SDA’s business and as part of the sale agreement with Coles Group Limited, SDA will continue to have fresh milk products processed at these two manufacturing facilities.

SDA will work closely with its customers through the transition to ensure these changes have minimal impact and intends for its loyal consumers to continue enjoying its diverse range of dairy products. There will also be no changes to its valued farmer relationships, with suppliers’ milk continuing to be collected and processed throughout Victoria, New South Wales and Tasmania.

“As the Australian dairy industry landscape continues to evolve, this proactive measure aims to further adapt SDA’s manufacturing network and is designed to strengthen our market competitiveness,” said Leanne Cutts, Saputo Inc.’s President and COO (International and Europe).

“We’re continually working to ensure we have the right manufacturing footprint and product offering to enhance our position as a high-quality, low-cost processor,” said Lino A. Saputo, Saputo Inc.’s Chair of the Board, President and CEO. “This marks an important step in executing our long-term vision for success in Australia as we maintain a sharp focus on efficiency to ensure we maximize the return on every litre of milk.”

The sites employ approximately 48 people. All employees will receive an offer to transfer their employment to Coles Group Limited and SDA will work closely with the site teams to support them through this changeover.

About Saputo Dairy Australia
Saputo Dairy Australia produces, markets and distributes a wide range of high quality dairy and non-dairy products for the domestic and international markets including cheese, dairy alternative cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. We are the largest dairy processor in Australia. Our products are sold in several countries under well-known brand names such as Caboolture, CHEER™, Cracker Barrel*, Devondale, Great Ocean Road, King Island Dairy, Liddells, Mersey Valley, MG Ingredients, Mil Lel, Sheese, South Cape, Sungold and Tasmanian Heritage. We are part of Saputo Inc., one of the top ten dairy processors in the world.

*Cracker Barrel is a registered trademark of Lactalis Heritage Dairy used under licence.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release contains statements which are forward-looking statements. These forward-looking statements include, among others, statements with respect to the intended sale of two processing facilities and the expected timing related thereto, SDA’s production, packaging, employees, consumers, customers, suppliers, projects and objectives. The words “may”, “could”, “should”, “will”, “would”, “believe”, “plan”, “anticipate”, intend” or “expect”, 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. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.

By their nature, forward-looking statements are subject to a number of inherent risks and uncertainties. Actual results could differ materially from those stated, implied or projected in such forward-looking statements. As a result, Saputo Inc. and SDA cannot guarantee that any forward-looking statements will materialize and warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to differ materially from current expectations are discussed in Saputo Inc.’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 dated June 9, 2022, available on SEDAR under Saputo Inc.'s profile at www.sedar.com, and also include the following: Saputo Inc. and SDA’s ability to implement capital investment, consolidation and network optimization initiatives as planned, Saputo Inc. and SDA’s ability to achieve productivity and efficiency gains resulting from such initiatives, uncertainties as to the timing of the intended sale; the risk that the intended sale may not be completed in a timely manner or at all, and the possibility that any or all of the various conditions to the consummation of the intended sale may not be satisfied or waived, including the failure to receive any required regulatory approvals.

Forward-looking statements are based on Management’s current estimates, expectations and assumptions. Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide stakeholders with information regarding Saputo Inc. and SDA, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.

All forward-looking statements included herein speak only as of the date hereof or as of the specific date of such forward-looking statements. Except as required under applicable securities legislation, Saputo Inc. and SDA do not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by them or on their behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.