Slide 1: Preliminary Results Fiscal 24
DIAGEO Preliminary Results Fiscal 24 Debra Crew, CEO & Lavanya Chandrashekar, CFO 30 July 2024
Slide 2: Cautionary statements concerning forward-looking statements and non-GAAP financial measures
DIAGEO Cautionary statements concerning forward-looking statements and non-GAAP financial measures The following presentation contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts and may generally, but not a
Slide 3: In a challenging year, Diageo focused on operational excellence
In a challenging year, Diageo focused on operational excellence for "i a resilience and long-term growth DIAGEO 3 Preliminary Results Fiscal 24
Slide 4: Deliberate near term actions to set Diageo up for growth
Deliberate near term actions to set Diageo up for growth Improved inventory and visibility issues in LAC Strengthening consumer insights to identify growth Redeploying resources to best opportunities Building next generation Route-to-Market and commercial capabilities © OOOO Accelerated productivity
Slide 5: F24 performance impacted by LAC and volatile operating environment
F24 performance impacted by LAC and volatile operating environment DIAGEO 5 Organic Organic Organic Volume net sales operating margin NV, -3.5% NV, -0.6% NV; -130bps Free Recommended full cash flow year dividend iS 2.6bn 103.48 cents * +$0.4on “” +5%
Slide 6: Strategic actions delivered share improvements in a cautious consumer environment
Strategic actions a with focus and execution delivered share 75 %+ improvements in a cautious consumer environment gaining/holding share DIAGEO = 6 =|. Preliminary Results Fiscal 24
Slide 7: Resilience from our diversified footprint
Resilience from our diversified footprint Diageo Diageo, ex-LAC F24 organic net sales -0.6% +1.8% decline/growth F24 organic volume -3.5% -2.1% decline DIAGEO = 7s Preliminary Results Fiscal 24 Fiscal 24 organic net sales decline/growth by region 4 Be . Europe ¥ *42 8% North * " America a -2. 5% _ A
Slide 8: Reduced LAC inventory to more appropriate levels
Reduced LAC inventory to more appropriate levels for the consumer environment and expanded visibility Formalised and expanded access to sellout data Incentivising sellout data reporting Escaane Tic Daa plan programme now implemented with distributors in a Incentivising independent stock counts | tar
Slide 9: US spirits: Diageo gaining momentum in cautious consumer environment
US spirits: Diageo gaining momentum in cautious consumer environment US Spirits Diageo Nielsen/NABCA sales US Spirits F24 growth vs prior year" F24 growth vs prior yeart Industry Diageo FY 13% 0.9% 07% 1.9% 0.0% 0.0% 0.2% 3.3% Organic Net Sales Industry Sales © Depletions Sales Diageo Sales 0.9% Nie
Slide 10: NAM: focus on operational excellence and improving share performance
NAM: focus on operational excellence and improving share performance Crown Royal Don Julio The Cocktail Collection Guinness am. >; (GUINNESS POR AMOR Dofulio Strong second half leading Increased momentum: Growing nearly 3x faster Fastest growing imported beer to full year holding share accelerating
Slide 11: Investing in the next-generation route-to-market
Investing in the next-generation route-to-market to build for the next decade of growth Next Generation Route-to-Market (US example) Canes Me Leverage our proprietary data to Scaled resources increasing our Replicating piloted model to grow maximise growth opportunities agility and execution distrib
Slide 12: Scotch gaining category share
miusNOi = Py 5 BENE SCOTCH © atl re Scotch gaining , | category share in cz 9 out of largest * measured scotch FL sc csbu wuisky markets K _ eum "NOI Fy moments ie DIAGEO
Slide 13: Diageo's global tequila rollout strengthened by brand building
Strat Tower, Takeover Superbowl LVIII Las Vegas, USA Diageo’s global tequila rollout strengthened by brand building capabilities & commercial execution Sa DIAGEO 13 | Preliminary Results Fiscal 24
Slide 14: Guinness: strong marketing contributing to double-digit growth
DIAGEO + WHAT IT’S CALLED WHAT YOU CALL IT Guinness: Strong marketing contributing to recruitment and double-digit growth for 7" consecutive half-year
Slide 15: ESG: refined goals: focus on executing priorities
ESG: refined goals: focus on executing priorities Completed review of Spirit of Progress roadmap Maintain Accelerate Simplified and Prioritised Our ESG strategy will continue to protect our licence to operate; deliver efficiencies; strengthen brand equity and improve employee engagement. DIAGEO 15 |
Slide 16: F24 FY key performance metrics
DIAGEO F24 FY key performance metrics Efficient growth Organic net sales Ny; -0.6% (Excl LAC +1.8%) Organic operating margin Ny -130..,; (Excl LAC W) -5ébps) Free cash flow $2.6bn 4+S0.46n Pre-exceptional eps 179 . Scents VL -8.6%
Slide 17: Continued discipline of growth algorithm to support return to sustainable growth
Continued discipline of growth algorithm to support return to sustainable growth Quality top-line growth Organic net sales growth we Consistent delivery of productivity ~$695m cost savings Quality long-term top-line growth - Positive price/mix Positive price/mix contributing 2.9ppts to top-line main
Slide 18: Volume impacted by specific short-term challenges
Volume impacted by specific short-term challenges F24 Volume growth! by region, EUm 0.6 ; P28) i -0.6 | Excl. Russia 0.2 41 ' 1 North America Latin America 1.9 83 “NAM) " Europe Asia Pacific and Caribbean Africa Diageo (LAC) F24 Organic price/mix 1.9% 4.1% 3.6% -5.6% 18.4% 2.9% DIAGEO 28 |. Prelimin
Slide 19: Our broad portfolio drives resilience
Our broad portfolio drives resilience F24 Organic net sales growth! of key categories 27% Diageo incl. LAC Diageo incl. LAC Diageo excl. LAC on 5% Scotch Tequila . “tn envini . 2 5% 4% Beer Chinese white spirits Other whisk(e)y/ 7% 10% DIAGEO — 9 |__ Preliminary Results Fiscal 24
Slide 20: Resilience from a wide portfolio across price tiers
Resilience from a wide portfolio across price tiers F24 Organic net sales growth! by price tier 5.4% 18% 0.7% 0.6% -6.7% Total Value Standard Premium Super-premium+ DIAGEO 20 | Preliminary Results Fiscal 24
Slide 21: Continued confidence in premiumisation despite gap in the US
Continued confidence in premiumisation despite gap in the US F24 Diageo Organic net sales growth’ Diageo US Spirits growth! Super-premium+ only Super-premium+ only Diageo ex NAM i" es 2.9% Organic net sales Neilsen + NABCA (Diageo) 0.3% 4.1% -6.7% 8.7% DIAGEO 21 | Preliminary Results Fiscal 24
Slide 22: Price/Mix +2.9%, supported by successful targeted RGM
Price/Mix +2.9%, supported by successful targeted RGM Guinness, Great Britain Johnnie Walker, Southern Europe F24 organic net sales growth drivers F24 organic net sales growth drivers Index to 100 Index to 100 4 ‘132 2 107 § 18 100 100 F23 Volume Price/ Mix F24 F23 Volume Price/ Mix F24 +70bps of Vo
Slide 23: $1.7bn productivity savings, exceeding commitment
$1.7bn productivity savings, exceeding commitment of $1.5bn 3-year target Total productivity savings $m 695 490 gE 505 Ee $17bn F20 F21 F22 F23 F24 DIAGEO 25 | Preliminary Results Fiscal 24
Slide 24: Operating margin contraction driven mainly by LAC
Operating margin contraction driven mainly by LAC. Excluding LAC gross margin improved, and we continued to invest in the business Movement in organic operating margin Movement in organic operating margin incl. LAC, bps excl. LAC, bps (130)bps (56)bps [ _ 7 42 go 9 -63 403 0 F23 Gross margin Marketi
Slide 25: Decline in EPS due to softer operating profit and higher finance charges
Decline in EPS due to softer operating profit and higher finance charges DIAGEO 2s Movement in earnings per share before exceptional items cents 196.5 1 casen eects 3.0 a 13.4 49 __ ' 79.6 3.0 es 8.4 Finance tepobtel Share F23 Organic OP Change Other! F24 Charges | Buyback mpact Preliminary Results
Slide 26: Strong working capital management drove free cash flow generation
Strong working capital management drove free cash flow generation Movement in free cash flow $m 344 646 — 22 _ 2,609 2235 _ 95 We 8 339 0 23 Foreign 1 Operating we Capex Tax Interest Other’ F24 Exchange profit DIAGEO 26 | Preliminary Results Fiscal 24
Slide 27: Foreign exchange benefit on operating profit, negative impact on net sales
Foreign exchange benefit on operating profit, negative impact on net sales Net sales! Operating profit! $m $m 210 Transaction Translation FY Guidance -8 -90 424 DIAGEO 27 | Preliminary Results Fiscal 24
Slide 28: Strong balance sheet drives resilience in our business
Strong balance sheet drives resilience in our business DIAGEO F24 F23 Movement Closing net debt! $m (21,017) (19,582) (1,435) Average Net Debt! $m (21,034) (18,362) (2,672) Net interest charge $m (906) (713) (193) Net other finance charges Sm 21 1 20 Net Finance Charges $m (885) (712) (173) Effectiv
Slide 29: Consistent and disciplined approach to capital allocation
Consistent and disciplined approach to capital allocation eee Leverage ratio policy Adjusted net debt! to adjusted EBITDA: 2.5x - 3.0x . Dividends M&A and Organic 1.8x to 2.2x portfolio g dividend cover management Return excess cash to shareholders DIAGEO 29. |__ Preliminary Results Fiscal 24
Slide 30: Disciplined and strategic approach to portfolio management
Disciplined and strategic approach to portfolio management DON PAPA\ Cameroon Brewery DIAGEO — 30 | Preliminary Results Fiscal 24 USL Popular Brands | | © SCHNAPPS Acquisitions! F 23 @ Faq & BALCONES Disposals! F23 & Fo4 GORDONS South Africa Repatriation Guinness Nigeria (aw) HE®@ & To be Completed
Slide 31: Fiscal 25 outlook
DIAGEO Fiscal 25 outlook Preliminary Results Fiscal 24 Cautious consumer environment persisting into fiscal 25 We will continue to focus on the resilience of our business and investing in quality market share Disciplined investment to support long-term sustainable growth
Slide 32: Diageo is well positioned for the long term
DIAGEO -# Diageo is well positioned for the long term Preliminary Results Fiscal 24 Medium term focused on: * Getting back into our organic net sales growth guidance range * Organic operating profit growth broadly in line with organic net sales growth Longer term organic operating profit growth ahea
Slide 33: Our key strategic priorities in fiscal 25
Our key strategic priorities in fiscal 25 to drive sustainable long-term growth PURPOSE Celebrating life, every day, everywhere To create one of the best performing, most trusted and respected, AMBITION naan consumer products companies in the world Unleash the power of our brands and portfolio to le
Slide 34: Celebrating life, every day, everywhere
DIAGEO Celebrating life, every day, everywhere
Slide 35: Financial/legal appendix: FY23 Represented
DIAGEO Financial/legal appendix: FY23 Represented Starting 1 July 2023, in line with reporting requirements, the functional currency of Diageo ple changed from sterling to US dollar which is applied prospectively. Diageo also decided to change its presentation currency to US dollar with effect from
Slide 36: Continued from the previous page
DIAGEO Continued from the previous page (a) Exchange rates Exchange in the organic movement calculation reflects the adjust mentto recalculate the reported results as if they had been generated at the prior period weighted average exchange rates. Exchange impacts in respect of the external hedging o
Slide 37: Continued from the previous page
DIAGEO Continued from the previous page Exceptional current and deferred tax items comprise material and unusual or norrrecurring items that impact taxation. Examples include direct tax provisions and settlements in respect of prior years and the remeasurement of deferred tax assets and liabilities
Slide 38: Continued from the previous page
Continued from the previous page Shareholder value metrics * Dividends: Diageo internal information + Return of Capital (RoC): Diageo intemal information. Market share approach * All analysis of data has been applied with a tolerance of +/-3 bps and the descriptions appliedof gaining, holding or los