Slide 1: Focused on delivering long-term sustainable growth
Focused on delivering long-term sustainable growth Debra Crew, Chief Executive Officer Nik Jhangiani, Chief Financial Officer Sally Grimes, Chief Executive Officer, North America 20 February 2025
Slide 2: Cautionary statements concerning forward-looking statements and non-GAAP financial measures
Cautionary statements concerning forward-looking statements and non-GAAP financial measures The following presentation contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts and may generally, but not always,
Slide 3: Focused on delivering long-term sustainable growth
Focused on delivering long-term sustainable growth Market leader with a portfolio of iconic category leading brands Attractive industry fundamentals with a long runway for spirits growth Making progress on our Growth Ambition Capturing the growth opportunity in North America Reshaped priorities to d
Slide 4: Unrivalled portfolio of iconic brands
D I A G E O ’ S S T R O N G F O U N D AT I O N Unrivalled portfolio of iconic brands 13 #3 #1 1.5x Billion-dollar in Total Beverage in International Larger than nearest brands Alcohol Spirits International Spirits competitor 4 CAGNY 2025 Source: IWSR 2023 USD Value
Slide 5: Diageo has a diversified geographical footprint
D I A G E O ’ S S T R O N G F O U N D AT I O N Diageo has a diversified geographical footprint… North America Europe $7.9bn $4.8bn 39% 24% Fiscal 24 by region Net sales & Latin America and Caribbean Asia Pacific share of group NSV $1.8bn $3.8bn 9% 19% Africa $1.8bn 9% Developed markets: 62% Emerging
Slide 6: Leading portfolio across categories
D I A G E O ’ S S T R O N G F O U N D AT I O N …and has built a leading portfolio across categories... Liqueurs, Non Alc Whisk(e)y* Tequila Vodka Gin Rum Bitters & RTD’s Spirits Aperitifs Diageo position #1 #1 #1 #1 #2 #2 #2 Relative Market 1.6x 1.1x 1.7x 2.2x 3.2x 1.0x 0.8x 0.7x Share (RMS)1 RMS >
Slide 7: Broad price ladder, biased to premium
D I A G E O ’ S S T R O N G F O U N D AT I O N …and across a broad price ladder, biased to premium Diageo reported net sales value by price tier F24 8% 30% 37% 16% 5% 4% Value Standard Premium Super-premium Ultra-premium Luxury 25% 62% 7 CAGNY 2025 Source: Diageo Internal reporting F24; IWSR 2023
Slide 8: Diageo view on near term pressure: cyclical not structural
AT T R AC T I V E I N D U S T RY Diageo view on near term pressure: cyclical not structural Established Tailwinds Potential Headwinds Growing LPA+ population Pressured consumer wallet Rising middle class Cannabis Premiumisation GLP-1’s Spirits gaining share of TBA Spirits household penetration Gen Z
Slide 9: US consumer behaviour impacted by pressure on wallets, but TBA spend retained
AT T R AC T I V E I N D U S T RY US consumer behaviour impacted by pressure on wallets, but TBA spend retained Grocery baskets costing 20% more But alcohol at least maintained for 11% less 1 proportion of spend, 1.96% vs 1.80%2 20% more for 11% less 1.80% 1.96% 2020 2024 2014 2024 9 CAGNY 2025 Sourc
Slide 10: Confidence in strength of favourable industry fundamentals
AT T R AC T I V E I N D U S T RY Confidence in strength of favourable industry fundamentals Population development Premiumisation Spirits gaining share of TBA Share of volume change +1.2% population growth1 S/UP+ share of IS RSV 2023 vs. 2022 (bps) Int’l Spirits 70 +3.6% middle class growth1 Beer 40
Slide 11: Increased consumers in US drinking spirits: spirits gaining share of TBA
AT T R AC T I V E I N D U S T RY Increased consumers in US drinking spirits: spirits gaining share of TBA TBA volumes have declined Spirits have gained share Core Spirits penetration increased US Spirits Volume US Spirits US Household Penetration November 2024 vs. November 2022 November 2024 vs. Nov
Slide 12: Gen Z consumers increasingly engaging with Spirits
AT T R AC T I V E I N D U S T RY Gen Z consumers increasingly engaging with Spirits Gen Z US Household Penetration F20 F24 TBA 83% 88% Spirits 49% 55% Wine 57% 61% Beer 68% 66% 12 CAGNY 2025 Source: Numerator
Slide 13: Strong runway for growth across categories and brands
AT T R AC T I V E I N D U S T RY Strong runway for growth across categories and brands US Household 44% 43% Key: Penetration Category 33% 34% Diageo brand 29% 28% 15% 14% 13 CAGNY 2025 Source: Numerator Household Penetration through November 2024
Slide 14: Moderation offers a growth opportunity for Diageo
AT T R AC T I V E I N D U S T RY Moderation offers a growth opportunity for Diageo Building new to world Extending existing trademarks dedicated Non Alc brands into Non Alc variants Consistent with Diageo’s long-term commitment to responsible drinking and premiumisation 14 CAGNY 2025
Slide 15: Growth Ambition for long-term sustainable growth
Growth Ambition for long-term sustainable growth PURPOSE Celebrating life, every day, everywhere AMBITION To create the best performing, most trusted and respected, consumer products company in the world S T R AT E GY Unleash the power of our brands and portfolio to lead and shape consumer trends ex
Slide 16: Growth Ambition for long-term sustainable growth
Growth Ambition for long-term sustainable growth PURPOSE Celebrating life, every day, everywhere AMBITION To create the best performing, most trusted and respected, consumer products company in the world S T R AT E GY Unleash Lead and shape the power of our brands and portfolio to leadthe Unleash an
Slide 17: Identifying growth opportunities from consumer behaviour and insights
D E L I V E R I N G O U R G R O W T H A M B I T I O N Lead and shape consumer trends Identifying growth opportunities from consumer behaviour and insights Cocktail Culture Cocktail Culture Exploration Exploration Moderation Luxury With Food Convenience Source: 2024 Global Cocktail Report NIQ/CGA Dia
Slide 18: Broadening recruitment into scotch and premiumising tequila globally
D E L I V E R I N G O U R G R O W T H A M B I T I O N Unleash the power of our brands and portfolio Broadening recruitment into scotch and premiumising tequila globally Johnnie Walker Blonde & Black Ruby Launching Don Julio 1942 Recruiting from outside scotch in India and Global Travel 18 CAGNY 2025
Slide 19: Embedding increased speed and agility across our 30,000 brand builders
Diverse and engaged talent D E L I V E R I N G O U R G R O W T H A M B I T I O N with an inclusive culture, behaviours and new organisational capabilities Embedding increased speed and agility across our 30,000 talented brand builders Be externally Collaborate Experiment and Act curious efficiently
Slide 20: Growth Ambition for long-term sustainable growth
Growth Ambition for long-term sustainable growth PURPOSE Celebrating life, every day, everywhere AMBITION To create the best performing, most trusted and respected, consumer products company in the world S T R AT E GY Unleash the power of our brands and portfolio to lead and shape consumer trends ex
Slide 21: Capturing the growth opportunity in North America
N O R T H A M E R I C A : D R I V I N G F O R WA R D Capturing the growth opportunity in North America 21 CAGNY 2025
Slide 22: Highly experienced and passionate team
N O R T H A M E R I C A : D R I V I N G F O R WA R D Highly experienced and passionate team Steve Rust Ed Pilkington Marsha McIntosh Michael Ward Here today President, US Spirits Chief Marketing & President, EVP, Canada, Casamigos Innovation Officer NAM Supply & Non Alc 35 years Diageo 32 years Diag
Slide 23: Clear portfolio roles to identify and prioritise growth
N O R T H A M E R I C A : D R I V I N G F O R WA R D Brand building Clear portfolio roles to identify and prioritise growth Growth drivers GROWTH Bend the curve Emerging Spaces Agile resourcing by group STABILITY Strongholds based on growth Small jewels opportunity Foundations EFFICIENCY Prove poten
Slide 24: Tequila category leadership with powerful brands
N O R T H A M E R I C A : D R I V I N G F O R WA R D Brand building Tequila category leadership with powerful brands Don Julio Casamigos DeLeón Astral 21 Seeds Mexican heritage Friendly and Double barreled More tequila Real fruit for for an authentic smooth for easy with bold stature to taste good b
Slide 25: Don Julio brings together both scale and cultural cachet
N O R T H A M E R I C A : D R I V I N G F O R WA R D Brand building Don Julio brings together both scale and cultural cachet 25 CAGNY 2025
Slide 26: Clear strategy to improve Casamigos performance
N O R T H A M E R I C A : D R I V I N G F O R WA R D Brand building Clear strategy to improve Casamigos performance 1. Commercial execution 2. Launching new campaign 3. Innovating in convenience Establishing strong Advertising to increase brand awareness Introducing a convenient ready commercial exe
Slide 27: Innovating to recruit and build our brands
N O R T H A M E R I C A : D R I V I N G F O R WA R D Innovation Innovating to recruit and build our brands Crown Royal Baileys Churros Captain Morgan Blackberry Culturally connected Sweet Chili Lime Recruiting new flavour driving Developed with direct consumers excitement input from Gen Z consumers
Slide 28: Stepping up route-to-market and commercial execution
N O R T H A M E R I C A : D R I V I N G F O R WA R D Route-to-market Stepping up route-to-market and commercial execution Most differentiated transformation of our US spirits organisation in at least a decade Targeted incremental resource to maximise growth Enhanced capability and expertise with ‘Ac
Slide 29: Deep Diageo engagement in my first six months
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Deep Diageo engagement in my first six months 29 CAGNY 2025
Slide 30: Attractive financial foundations with potential to improve
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Attractive financial foundations with potential to improve 1. Market leader with a portfolio of iconic category leading brands 2. Sustained investment behind our brands 3. Attractive margin, with opportunity to improve operatin
Slide 31: Reshape priorities to deliver sustainable growth
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Deliver sustainable Increase top-line growth operating leverage Reshape priorities to deliver sustainable Optimise long-term Maximise returns performance free cash flow 31 CAGNY 2025 Source: Diageo
Slide 32: Opportunities to further build on attractive financial foundations
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Opportunities to further build on attractive financial foundations Deliver sustainable Increase Maximise Optimise top-line growth operating leverage free cash flow returns Re-cut productivity program Drive volume growth Returns
Slide 33: Driving volume growth with strategic centralised resource allocation
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Deliver sustainable top-line growth Driving volume growth with strategic centralised resource allocation Connect Market Growth Leaders Engines Revel Relax Market Growth Framework Impress Reward Value Unlock Contributors Potenti
Slide 34: Focus on effectiveness and returns of A&P
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Increase operating leverage Focus on effectiveness and returns of A&P Working to maximise brand …enhancing tools to leverage …and drive better returns investment… further and prioritise... focused commercial A&P F21-F25 Shape o
Slide 35: Maximising free cash flow
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Maximise free cash flow Maximising free cash flow F19 - F24 net cash flow1 • Further sustainable working capital improvement • Including opportunities with receivables and inventory Average $3.0bn • Deeper review of maturing st
Slide 36: Ensuring appropriate capex investment for both long and short-term
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Maximise free cash flow Ensuring appropriate capex investment for both the long and short-term Annual CAPEX investment and % of NSV, F21 – F25 outlook Incremental capacity in scotch and tequila $m 2,000 8.0 7.5 1,500 7.0 6.5 1,
Slide 37: Rigorous scenario planning and deeper review of maturing stock
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Maximise free cash flow Rigorous scenario planning and deeper review of maturing stock F19-F24 Maturing stock ($bn)1 7.8 7.3 6.5 6.3 5.5 5.6 F19 F20 F21 F22 F23 F24 37 CAGNY 2025 Each year is measure on F24 actual rates
Slide 38: Rigorous scenario planning and deeper review of maturing stock
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Maximise free cash flow Rigorous scenario planning and deeper review of maturing stock F19-F24 Maturing stock ($bn)1 7.8 7.3 6.5 6.3 5.5 5.6 F19 F20 F21 F22 F23 F24 38 CAGNY 2025 Each year is measure on F24 actual rates
Slide 39: Continued disciplined portfolio management and selective appropriate disposals
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Optimise returns Continued disciplined portfolio management and selective appropriate disposals Acquisitions F23 to F25 YTD South Africa repatriation Disposals F23 to F25 YTD Guinness Cameroon Guinness USL Guinness Ghana S.A. N
Slide 40: Reshape priorities to deliver sustainable growth
R E S H A P E D P R I O R I T E S F O R S U S TA I N A B L E G R O W T H Deliver sustainable Increase top-line growth operating leverage Reshape priorities to deliver sustainable Optimise long-term Maximise returns performance free cash flow 40 CAGNY 2025 Source: Diageo
Slide 41: Key messages
F O C U S E D O N D E L I V E R I N G L O N G - T E R M S U S TA I N A B L E G R O W T H Key messages: Market leader with a portfolio of iconic category leading brands Attractive industry fundamentals with a long runway for spirits growth Making progress on our Growth Ambition Capturing the growth o
Slide 42: Diageo: Celebrating life, every day, everywhere
DIAGEO Celebrating life, every day, everywhere
Slide 43: Financial/legal appendix: Definitions and reconciliation of non-GAAP measures
Financial/legal appendix: Definitions and reconciliation of non-GAAP measures to GAAP measures Diageo’s strategic planning process is based on certain non-GAAP measures, including organic movements. These non-GAAP measures are chosen for planning and reporting, and some of them are used for incentiv
Slide 44: Calculation of organic movements
Continued from the previous page Calculation of organic movements An explanation of non-GAAP measures, including organic movements, is set out on pages 227-235 of Diageo’s Annual Report for the year ended 30 June 2024. (a) Exchange rates Exchange in the organic movement calculation reflects the adju
Slide 45: Exceptional items
Continued from the previous page (c) Exceptional items Exceptional items are those that in management’s judgement need to be disclosed separately. Such items are included within the income statement caption to which they relate, and are excluded from the organic movement calculations. Management bel
Slide 46: Adjustment in respect of hyperinflation
Continued from the previous page Adjustment in respect of hyperinflation The group's experience is that hyperinflationary conditions result in price increases that include both normal pricing actions reflecting changes in demand, commodity and other input costs or considerations to drive commercial