Slide 1: Preliminary Results 2011
PRELIMINARY RESULTS 2011 YEAR ENDED 30 JUNE 2011 PAUL WALSH CEO
Slide 2: A Strong Business, Growing Stronger in F11
A STRONG BUSINESS, GROWING STRONGER IN F11 Organic net sales and operating profit up 5%, with price/mix up 2% Marketing as % net sales up 50 bpts to 15.5% Gross margin up 70 bpts* Increased our presence in emerging markets Net sales growth of 13%* in emerging markets Marketing investment
Slide 3: Volume Growth and Positive Price/Mix Drove 5% Organic Net Sales Growth
VOLUME GROWTH AND POSITIVE PRICE/MIX DROVE 5% ORGANIC NET SALES GROWTH Net sales, £m 178 254 (55) 9,936 (221) 9,780 FY F10 Volume Price/mix Scope change* FX FY F11 Year ended 30 June 2011. *Scope change comprises acquisitions and disposals.
Slide 4: The Premium and Super Premium Price Segments Were Engines of Growth
THE PREMIUM AND SUPER PREMIUM PRICE SEGMENTS WERE ENGINES OF GROWTH Net sales growth, £m £m 7% 5% 1% 400 3% 3% 300 9% 200 22% 17% 100 38% 0 Super Super deluxe Other super Premium Other Standard beer Other Value Total premium scotch premium scotch premium standard vodka Year ended 30 June 2011.
Slide 5: Marketing Focused Behind the Biggest Growth Opportunities
MARKETING FOCUSED BEHIND THE BIGGEST GROWTH OPPORTUNITIES
Slide 6: Marketing Innovation to Drive Consumer Engagement
MARKETING INNOVATION TO DRIVE CONSUMER ENGAGEMENT
Slide 7: Industry Leading Innovation Supports Growth
INDUSTRY LEADING INNOVATION SUPPORTS GROWTH Premiumising our brands Emerging middle class consumers Driving growth in developed markets Sustaining what we’ve launched
Slide 8: Enhancing Our Strategic Customer Relationships
ENHANCING OUR STRATEGIC CUSTOMER RELATIONSHIPS Deeper partnerships Effective use of with strategic space in store and customers innovative shopper marketing programmes Accelerated growth for both Diageo & Customers 8
Slide 9: Diageo: Proven, Strong Business
DIAGEO: PROVEN, STRONG BUSINESS Leading brands give us outstanding brand depth and breadth Global reach and strong routes to market Industry leading capabilities in innovation, marketing, customer relations and community initiatives Financial strength
Slide 10: A Strong Business, Growing Stronger
A STRONG BUSINESS, GROWING STRONGER Proven strong business We are expanding our presence in the fastest growing markets We are sharpening our focus
Slide 11: Expanding Our Presence in the Fastest Growing Markets
EXPANDING OUR PRESENCE IN THE FASTEST GROWING MARKETS Mey İçki Serengeti Breweries Zacapa Marketing up 15% SJF and Halico Marketing up 28% Marketing up 20% Year ended 30 June 2011.
Slide 12: We Are Sharpening Our Focus
WE ARE SHARPENING OUR FOCUS Differentiating our in-market strategies based on their growth profile Brilliant execution in supply, marketing, sales and innovation in each market every day Driving further cost savings to fund investment and expand our industry leading margins
Slide 13: We Are Sharpening Our Focus
WE ARE SHARPENING OUR FOCUS Focus on customers as key competitive advantages in Western Europe Win in the growing US spirits market Resourced to deliver growth in emerging markets Gain profitable share in the developed markets in Asia 13
Slide 14: We Are Sharpening Our Focus
WE ARE SHARPENING OUR FOCUS Differentiating our in-market strategies based on their growth profile Brilliant execution in supply, marketing, sales and innovation in each market every day Driving further cost savings to fund investment and expand our industry leading margins
Slide 15: Delivering for Shareholders
DELIVERING FOR SHAREHOLDERS Faster organic net sales growth Strong platform Aim: 6% CAGR in the medium term + Expansion Organic operating margin in faster improvement Maximising growing cash and Aim: The first 200bpts by year ending returns markets 2014 + Sharper EPS growth focus Aim: Double digit g
Slide 16: Questions
DIAGEO QUESTIONS