DIAGEO

THE BUSINESS MODEL

OUR STRONGEST LINKS

PROSPECTS

FINANCIAL HIGHLIGHTS

RISK FACTORS

WORLD’S LEADING PREMIUM DRINKS COMPANY

#1 Spirits company in the United States

#1 International spirits company in Asia Pacific and Latin America The largest premium drinks company in Europe

14 strategic brands

A leading beer company in Africa

STRONG GLOBAL OUTREACH

£3,324m North America

£2,614m Europe

£2,747m International

£1,181m Asia Pacific

180 MARKETS AROUND THE GLOBE

30 spirits, beer,

and wine brands,

distributed globally

across 180 countries

BUSINESS MODEL

OUR STRONGEST LINKS

Beer

Spirits

Niche category in Stout

Guinness

Investments in Africa

Strong presence in North

America and Western Europe

Acquisitions in key growth

markets

World’s 26th Biggest wine producer

Focused on the UK, US and

Argentina

Wine

14 STRATEGIC BRANDS

14 STRATEGIC BRANDS

BUSINESS PROSPECTS

PROSPECTS

Focus on growth in emerging markets Drive

growth in Stout

Lower value spirits Trimming

losses

POSITIONED FOR GROWTH

#1 Restructuring

Focus on growth in emerging markets

Fully implemented by 30 June 2013

#2 Acquisitions

#3 Unlocking growth in

developed markets

#4 Emerging middle

class consumers

#5 Premiumising our

brands

DIVIDENDS OF

2.7%

ANNUALLY

FINANCIAL HIGHLIGHTS

INCREASE IN REVENUE YOY INCREASE IN CASH FROM OPERATIONS INCREASE IN NET PROFIT MARGIN 13.89% (FY2010) TO 16.77% (FY2011)

ROE OF 41.07 IN FY2011 – INDUSTRY LEADER

DECREASE IN LONG TERM DEBT

PE RATIO OF 16.21 (INDUSTRY PE: 27.41)

FINANCIAL COMPARABLES

FINANCIAL RATIO

PROFITABILITY RATIO

#1 Diageo’s products may be

affected by changes in consumer preferences and tastes and adverse impacts of a declining economy

RISK FACTORS

#2 An increase

in the cost of raw

materials or energy could affect Diageo’s profitability

#3 Diageo’s operations may be adversely affected by

failure to maintain or renegotiate distribution, supply, manufacturing or licence agreements on favourable terms.

DIAGEO: WHY INVEST IN US?

High value for money

Consistent Dividends

Competent manageme

nt team

Good investment opportunity

PE ratio low: CHEAP Low price target of 98.87 is higher than share price of 96.86 now Average price target of 101.72 High price target and low price target Dividend

THANK YOU.