DIAGEO

DIAGEO

Outline of Q3 F13 Performance Briefing

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Slide Contents Presenter

3 Strategic overview Seni Adetu

8 Performance summary Seni Adetu

11 Highlights of the year so far Seni Adetu

18 Q3 F13 financial results Lisa Nichols

23 Conclusions / outlook Seni Adetu

26 Q&A Sesan Sobowale

DIAGEO

Strategic overview

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DIAGEO

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Our Company

Strong portfolio diversity including alcoholic and non-alcoholic

beverages covering a wide range of consumer segments

Commitment to significant investment to deliver long-term growth

Major investments in capacity expansion

Business doubled in the past 4 years

Largest Guinness market in the world in net sales to be

sustained

Strong values: Performance culture, developing talent, positively

impacting the communities in which we operate, strong governance

and ethical standards

General consumer trends in our favour: Premiumisation, Emerging

Sector, Female opportunity

DIAGEO

Our growing and diverse portfolio covers a wide range of consumer

segments

Beer RTD Malt

Premium

Mainstream

Emerging

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DIAGEO

Guinness Nigeria will have the no. 1 brand in every segment

in which we compete supported by an advantaged Route to

Consumer

Guinness Nigeria Plc is the most iconic and admired consumer goods company in

Nigeria

Employer of Choice

Superior Total Shareholder

Returns

Most reputable in the

Community

Our Vision

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DIAGEO

Long term strategic intent

“We have the most adored adult drink brands for every occasion’’ Consumer

Customer

Competitors

Capability

Community

Capacity

“We are the preferred partner to our customers delivering profitable

arms-reach availability”

“Our people are capable and inspired to deliver exceptional

performance everyday”

“Our seamless supply chain guarantees our brands are available everywhere, everyday at competitive costs”

“We are the undisputed leader wherever we choose to compete”

“We enrich the lives of our communities through our connection to their aspirations and dreams’’

“We have embedded controls, compliance and ethics culture internally

and embodied this externally” Compliance

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DIAGEO

Performance Summary

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DIAGEO

Current market / structural context

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Economic environment

Macro economic environment relatively stable

Inflationary pressure

Some interest rate reduction, but levels still high

Increasing tax burden

Consumer trends

Reducing discretionary income

Prioritising spend on essential items

Security concerns impacting drinking patterns

Beer / Malt markets / share

Market softness due to declining discretionary income

Our brand shares holding up well

Under-indexing of market share in specific locations

Our key challenges

RtC especially rural coverage and off-trade / wholesale channels

Logistics / distribution efficiency

DIAGEO

Q3 F13: Performance overview

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Q3 F13 YTD F13

Growth % Growth %

Net Revenue 1% 4%

Operating Profit -7% -4%

PBT -25% -17%

DIAGEO

Brands

Innovation

Route to

Consumer

Highlights of the year so far

Supply

People

CSR

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DIAGEO

Highlights - Brands

Guinness Harp Malta Guinness Smirnoff Ice

AFCON Campaign and

Jersey Tour

EPL broadcast

Sponsorship

Fly With The Eagles

Campaign

Made of More campaign

Improved media and OOH

visibility

In bar branding

Distribution drives

‘Smirnoff Midnight Circus’

events

Bus branding

New OOH

Competitive pricing

Distribution drive

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DIAGEO

Highlights - Innovation

H1

Snapp Launched in Lagos and 4 other cities –

Abuja, Benin, Port Harcourt and Calabar

Focus on advertising, sampling and

distribution build

Snapp sleek cans launched in Dec 2012

H2

Snapp Rolled out

nationally

Refreshed

advertising

Dubic • New green bottle

• Regional

expansion

Top Malt • Pack redesign

for national re-

launch

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DIAGEO

Cold & Events GDC Branding

Investments in project

cold

Special events supporting

social events driving

convenience & visibility

Guinness Distribution

Centres (GDC) driving

rural re-distribution

Roll out progressing well

Distributor and wholesaler

warehouse branding

• Flagship outlet branding

Sales coverage

Increased sales areas

Additional van sales staff

Wholesaler management

New sales and customer

incentive schemes

Highlights - Route to Consumer

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Highlights - Supply

Warehousing &

Loading capacity

Bottle sorting and

packaging

DIAGEO

Highlights - People

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Significant progress in

employee engagement

with improved

communications and

increased leadership

team engagements

Vibrant employee

awards scheme

Development / career

plans and moves are

also key to engagement

Exceptional

Performance Culture Talent Development Employee Engagement

GN Leadership team

strengthened with addition of

local external hires and internal

moves

Several internal promotions to

senior leadership levels

Gender diversity of leadership

population improving

Investment in enhanced

resourcing capability paying off

Development interventions

identified and underway for key

talent including assignments in

Diageo businesses outside

Nigeria

Development programmes in

place for all levels from Graduate

Management Trainees, Future

Leaders, Growing Leaders to the

Diageo Leadership Performance

Programme for senior leaders

Improved performance

monitoring driving

visibility of outcomes

More effective incentive

programmes for Sales

Improved disciplinary

process

Continued focus and

investment in Controls,

Compliance & Ethics

Seni Adetu

Managing Director

Austin Ufomba

Marketing &

Innovation

Director

Lisa Nichols

Finance & Strategy

Director

Sesan Sobowale

Corporate Relations

Director

Wale Adediran

Human Resources

Director

Cephas Afebuameh

Supply Chain

Director

DIAGEO

Highlights - CSR

Responsible Drinking & Community Investments

•Won award as the Best Private Sector company

supporting the water sector (Min of Water Res)

•Water sensitization walk in Abuja

•Clean water provided at Oza Nogogo, Delta

state

•Responsible Drinking campaign partnering

with Journalists and Actors

•Technical education scholarships to students

•Ikeja Golf Tournament 2013

Sponsorship in March bringing c

300 golfers Pan Nigeria together

•250 children in 3 orphanages

impacted during the Easter

season (Love home Orphanage

Magodo, St. Mary Immaculate

Orphanage Home, Ikhueniro and

Omosefe Orphanage Homes in

Benin)

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Q3 F13 Financial results

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DIAGEO

GN Plc Q3 F13 results - Comprehensive Income

Q3 F13 Growth YTD F13 Growth

Nbn % Nbn %

Gross Revenue 29.2 0% 94.9 3%

Net Revenue 27.3 1% 88.4 4%

Cost of Sales (15.6) 1% (48.2) 7%

Gross Profit 11.7 0% 40.3 1%

Marketing & Distrib'n (6.6) 0% (19.4) 2%

Admin Costs (2.4) -2% (7.4) 3%

Operating Profit 2.6 -7% 13.8 -4%

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DIAGEO

GN Plc Q3 F13 results - Comprehensive Income

Q3 F13 Growth YTD F13 Growth

Nbn % Nbn %

Operating Profit 2.6 -7% 13.8 -4%

Financing costs (0.8) 101% (2.6) 210%

PBT 1.8 -25% 11.2 -17%

Tax (0.6) -24% (3.6) -17%

PAT 1.2 -26% 7.6 -18%

N N

EPS 0.8 -27% 5.1 -19%

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DIAGEO

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YTD F13 vs. YTD F12 (Nbillion)

Drivers of Profit before tax

11.2

1.70.50.20.3

3.16.5

13.6

3.0

COGS Volume Price YTD F12

PBT

YTD F13

PBT

Financing Other

Income

Admin

Costs

Mktg &

Distn

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DIAGEO

GN Plc Q3 F13 results - Financial Position

Q3 F13 YTD F13 Mvt

Nbn Nbn Nbn

Non-Current Assets 89.0 68.0 21.0

Inventories 16.8 16.8 (0.0)

Receivables 23.0 16.7 6.3

Cash 3.0 3.7 (0.7)

Total Assets 131.9 105.3 26.6

Current Liabilites (66.4) (52.7) (13.7)

Non-Current Liabilities (23.6) (18.4) (5.2)

Equity (41.9) (34.2) (7.7)

Net Equity & Liabilities (131.9) (105.3) (26.6)

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Conclusions / outlook

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Conclusion

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Market has been challenging, but we are holding our own in market share terms

We remain confident in our business strategy:

Upweight investment in core brands to outperform competition

Innovate/renovate profitably and sustainably

Transform our Route to Consumer

Optimize our secondary supply chain to moderate cost

Strengthen our talent bench strength

Partnership with government to maintain a balanced tax environment

DIAGEO

We feel very positive about the future of GN

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Encouraging long-term prospects for the consumer economy

We have strong consumer brands with strong brand equities

We still have significant share growth potential

We have a proven business model which is highly cash generative

We are investing ahead for future growth

We have a highly motivated team who are committed to delivering strong

growth

Our partnership with Diageo gives us access to expertise and support

DIAGEO

Q & A