Slide 1: Half Year Results
HALF YEAR RESULTS 10 FEBRUARY 2011 Paul Walsh CEO
Slide 2: Improved organic performance and increased investment in strategic brands and emerging markets
Improved organic performance and increased investment in strategic brands and emerging markets Net sales up 4%* Marketing spend up 10%* Operating profit up 2%* eps pre-exceptionals up 9%** Free cash flow of £0.8bn 6% increase in interim dividend 6 months ended 31 December 2010. *Organic growth. **ep
Slide 3: Diageo delivered an improved performance despite weakness in Europe
Diageo delivered an improved performance despite weakness in Europe Net sales growth*, £m 250 Net sales growth*, % 4% 200 150 100 17% 3% 10% 50 7% 15% 0 (50) (3)% (100) North America Europe Latin America Africa Global Travel Asia Pacific Diageo & the Caribbean & Middle East 6 months ended 31 Decembe
Slide 4: The super premium price segment grew fastest in all four regions
The super premium price segment grew fastest in all four regions Net sales growth*, £m 100 22% 75 5% 50 1% 25 7% 0 Value Standard Premium Super Premium % of Diageo 3% 62% 26% 9% 6 months ended 31 December 2010. *Organic growth.
Slide 5: Spirits, primarily scotch and vodka brands, were the key drivers of growth in the half
Spirits, primarily scotch and vodka brands, were the key drivers of growth in the half Net sales growth*, £m 225 4% 200 5% 175 150 125 100 6% 75 8% 50 3% 25 5% 0 (1)% (25) Scotch Vodka Spirits Beer RTD Wine Diageo 6 months ended 31 December 2010. *Organic growth.
Slide 6: The strategic brands drove three quarters of total growth
The 14 strategic brands drove three quarters of total growth 14 Strategic brands % % of total volume 65 % of total net sales 67 % of total marketing spend 79 % % of volume growth 77 % of net sales growth 75 % of additional marketing spend 98 6 months ended 31 December 2010. Organic growth.
Slide 7: Strong platform for growth
Strong platform for growth
Slide 8: Brand building in a new world
Brand building in a new world ‘OUR LABELS & HERTAGE WALK WITH THEMAN WHO CAPTURED HISTORY WALK WITH THEACTOR WHO TOOK GLASGOW TO HOLLYWOOD
Slide 9: Innovation to sustain brand relevance and unlock future growth
Innovation to sustain brand relevance and unlock future growth Premiumisation Emerging markets Developed markets Strong pipeline
Slide 10: Building an efficient and sustainable supply footprint to support growth
Building an efficient and sustainable supply footprint to support growth Roseisle US Virgin Islands
Slide 11: Investing in partnerships and improving routes to market to drive growth
Investing in partnerships and improving routes to market to drive growth • Strategic partnerships are building access to a wider consumer base • Sales evolution in emerging and developed markets • Joint business planning with global customers
Slide 12: Today's results reflect the global economic environment
Today’s results reflect the global economic environment • Double digit net sales growth in emerging markets with growth in North America, while Europe remains weak • Marketing spend up 10%, with over 60% of the increase directed towards emerging markets • Innovation focused on driving growth in deve
Slide 13: VT of Marketing ads
VT of Marketing ads
Slide 14: Questions?
O fy) < la QUESTIONS?
Slide 15: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This presentation 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