Diageo plc · LSE:DGE

Diageo — FY2007 Earnings Presentation

19 slides from Diageo's earnings presentation, Aug 30, 2007

  1. Slide 1: 2007 Preliminary Results

    2007 PRELIMINARY RESULTS 30 August 2007

  2. Slide 2: Paul Walsh, CEO

    PAUL WALSH CEO

  3. Slide 3: Year on year acceleration in operating performance

    YEAR ON YEAR ACCELERATION IN OPERATING PERFORMANCE Net sales increased by 7%* Marketing spend increased by 8%* Operating margin improved a further 40 bps* Delivering operating profit growth of 9%* And eps growth of 13%** Unless otherwise stated, all figures in this announcement are organic and for t

  4. Slide 4: Consistent strong cash flow and value creation for shareholders

    CONSISTENT STRONG CASH FLOW AND VALUE CREATION FOR SHAREHOLDERS Generating strong free cash flow of £1,365 million Returning cash to shareholders of £2,258 million* Increasing the dividend per share by 5% Cash yield for the fiscal year of 8% * Includes dividends and share buyback, excluding fees and

  5. Slide 5: Strong full year with faster top line growth in the second half

    STRONG FULL YEAR WITH FASTER TOP LINE GROWTH IN THE SECOND HALF > International volume driven by scotch in Latin America and beer in Africa > North America was largest contributor to price / mix improvement > Increased marketing investment in Asia Pacific > Europe driven by better performance in Gre

  6. Slide 6: North America

    NORTH AMERICA > Net sales up 7% > US spirits value share increased by a further 60 bps > Price increases achieved on over 50% of spirits volume > Increased marketing spend and pricing in beer delivered stronger performance > Innovation and pricing in wine drove share increase

  7. Slide 7: Europe

    EUROPE > Improved H2 performance – volume up 3%, NSV up 4% > Focus on core spirits and increased marketing in GB > Innovation and marketing investment in Ireland > New route to market in Spain focused on key customers > Premiumisation strategy delivered in Continental Europe > Volume up 25% and net

  8. Slide 8: International

    INTERNATIONAL > Scotch strategy continued to drive growth in Latin America > Beer performed strongly in Africa > Johnnie Walker net sales up over 40% in South Africa > GTME expanded despite challenging environment

  9. Slide 9: Asia Pacific

    ASIA PACIFIC > Net sales growth delivered in all markets > Net sales up 60% in China > Johnnie Walker outperformed category and competition > Innovation and international brands drove Indian growth > Windsor delivered double digit top line growth in Korea

  10. Slide 10: World leading brands

    WORLD LEADING BRANDS #1 vodka #1 scotch whisky #1 stout #1 liqueur #2 rum #2 scotch whisky #1 tequila #1 import gin in US #1 Canadian whisky Source: Impact Databank – Year ended 31 December 2006

  11. Slide 11: World leading brands

    ~ & "| DIAGEO WORLD LEADING BRANDS A JOHNNIE When, i Y GUINNESS

  12. Slide 12: Smirnoff

    SMIRNOFF > Smirnoff vodka sold 23 million cases, up 6% > Net sales up 9% > Marketing increased 10% to £95 million

  13. Slide 13: Johnnie Walker

    JOHNNIE WALKER > Sold over 15 million cases > Double digit volume growth of 14% > Brand generated nearly £1 billion in net sales, up 16% > Advertising and promotion increased 18%

  14. Slide 14: Buchanan's

    BUCHANAN’S > Net sales grew approximately 40% > Strong trade execution > Marketing support with music event sponsorship and Buchanan’s Forever campaign > Innovation with 18-year-old and Red Seal > Gaining share across Latin America

  15. Slide 15: Baileys

    BAILEYS > Volume up 7% and net sales up 10% > Mint and caramel flavours now available around the world > Growth of brand led by North America and International

  16. Slide 16: Guinness

    GUINNESS > Footprint for the brand is expanding in Africa, Korea and India > Guinness Greatness campaign driving growth in Africa

  17. Slide 17: Year on year acceleration in operating performance

    YEAR ON YEAR ACCELERATION IN OPERATING PERFORMANCE Net sales increased by 7%* Marketing spend increased by 8%* Operating margin improved a further 40 bps* Delivering operating profit growth of 9%* And eps growth of 13%**

  18. Slide 18: Nick Rose - CFO and regional presidents

    Nick Rose - CFO Ivan Menezes - North America Andrew Morgan - Europe Stuart Fletcher - International John Pollaers - Asia Pacific

  19. Slide 19: Cautionary statement concerning forward-looking statements

    Cautionary statement concerning forward-looking statements This announcement contains “forward looking statements” within the meaning of the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations a

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