Diageo plc · LSE:DGE
Diageo — H1 FY2010 Earnings Presentation
16 slides from Diageo's earnings presentation, Feb 11, 2010
Slide 1: Diageo Half Year Results
DIAGEO HALF YEAR RESULTS 11 FEBRUARY 2010
Slide 2: Paul Walsh, CEO
DIAGEO PAUL WALSH CEO
Slide 3: Managing the business in a challenging environment
Managing the business in a challenging environment • Organic net sales down 2% • Organic operating profit* down 3% • Favourable currency movements led to reported net sales up 3%, operating profit broadly flat • While basic eps is down 10%, eps pre-exceptionals and discontinued operations was up 5%
Slide 4: Building a stronger business well positioned for the future
Building a stronger business well positioned for the future • Effective cost management • Focused marketing and innovation have built stronger brands • Enhanced sales capabilities have delivered stronger customer relationships
Slide 5: Q2 showed improvement mainly reflecting the easing of comparisons
Q2 showed improvement mainly reflecting the easing of comparisons Organic net sales growth 2% (2)% (6)% (7)% Q3 F'09 Q4 F'09 Q1 F'10 Q2 F'10
Slide 6: Mixed performance across the regions
Mixed performance across the regions Net sales growth* 10% 8% 4% (1)% (5)% (2)% (6)% North Europe Asia LA&C Africa GTME Diageo America Pacific 6 months ended 31 December 2009. *Organic growth.
Slide 7: Focus on cash in the half has delivered exceptional results
Focus on cash in the half has delivered exceptional results • Cash generative business • Tight management of cash in half • Free cashflow increased £517m to £904m
Slide 8: Category breadth to deliver on consumer trends in all regions
Category breadth to deliver on consumer trends in all regions % of regional net sales 100 Wine RTDs Other spirits 75 Rum Vodka Beer 50 25 Scotch 0 North America Europe International Asia Pacific % of Diageo net sales 33 30 27 10 6 months ended 31 December 2009. Net sales is sales after deducting exc
Slide 9: Great marketing increased brand equity
Great marketing increased brand equity • Creating memorable experiences, building the long-term health of brands • Intelligent investment, prioritising the most attractive opportunities • Benefiting from media rate deflation and refocusing investment to the most relevant channels and global/regional
Slide 10: Great marketing increased brand equity
Great marketing increased brand equity
Slide 11: Arthur's Day
O © < ra JOIN THE IDE CELEBRATION DW AID Arthur’s Day
Slide 12: Tactical opportunities harnessed through innovation
Tactical opportunities harnessed through innovation • Products tailored for evolving market trends • Declines in disposable income create demand for smaller pack sizes • Consumers willing to try new flavours and formats from trusted brands • Selected ultra-premium innovation continues
Slide 13: Building strong sales capabilities and customer relationships
Building strong sales capabilities and customer relationships
Slide 14: Confidence in Diageo's platform for growth
Confidence in Diageo’s platform for growth • Broad category range and geographic reach delivered resilient performance • Great marketing, sales and innovation has built brand equity • Enhanced financial strength • Diageo has successfully managed through the tough environment
Slide 15: Questions
DIAGEO QUESTIONS
Slide 16: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This announcement contains ‘forward-looking’ statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statem