Diageo plc · LSE:DGE
Diageo — FY2007 Earnings Presentation
19 slides from Diageo's earnings presentation, Aug 30, 2007
Slide 1: 2007 Preliminary Results
2007 PRELIMINARY RESULTS 30 August 2007
Slide 2: Paul Walsh, CEO
PAUL WALSH CEO
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
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
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
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
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
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
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
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
Slide 11: World leading brands
~ & "| DIAGEO WORLD LEADING BRANDS A JOHNNIE When, i Y GUINNESS
Slide 12: Smirnoff
SMIRNOFF > Smirnoff vodka sold 23 million cases, up 6% > Net sales up 9% > Marketing increased 10% to £95 million
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%
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
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
Slide 16: Guinness
GUINNESS > Footprint for the brand is expanding in Africa, Korea and India > Guinness Greatness campaign driving growth in Africa
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%**
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
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