Diageo : 2023 Interim Results presentation

Delivering sustainable long-termgrowth

Interim Results Fiscal 23

Ivan Menezes &

Lavanya Chandrashekar

26 January 2023

D E L I V E R I N G S U S TA I N A B L E L O N G - T E R M G R O W T H

Cautionary statements concerning forward-looking statements and non-GAAP financial measures

This document contains 'forward-looking' statements. These 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 statements that express forecasts, expectations, plans, outlook, objectives and projections with respect to future matters, including the statements related to Diageo's fiscal 23 outlook, Diageo's medium-term guidance for fiscal 23 to fiscal 25 and any other statements with respect to trends in results of operations, margins, growth rates, overall market trends, the impact of changes in interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or synergies, expected investments, the completion of any strategic transactions or restructuring programmes, anticipated tax rates, changes in the international tax environment, expected cash payments, outcomes of litigation or regulatory enquiries, anticipated changes in the value of assets and liabilities related to pension schemes and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including factors that are outside Diageo's control.

These factors include, but are not limited to: (i) economic, political, social or other developments in countries and markets in which Diageo operates, including macroeconomic events that may affect Diageo's customers, suppliers and/or financial counterparties; (ii) the impact of the Covid-19 pandemic, or any other global or regional public health threats, on Diageo's business, financial condition, cash flows and results of operation; (iii) the elevated geopolitical instability as a result of Russia's invasion of Ukraine; (iv) the effects of climate change, or legal, regulatory or market measures intended to address climate change; (v) changes in consumer preferences and tastes, including as a result of disruptive market forces, changes in demographics and evolving social trends (including any shifts in consumer tastes towards at-home occasions, premiumisation, small-batch craft alcohol, or lower or no alcohol products and/or developments in e-commerce); (vi) changes in the domestic and international tax environment that could lead to uncertainty around the application of existing and new tax laws and unexpected tax exposures; (vii) changes in the cost of production, including as a result of increases in the cost of commodities, labour and/or energy due to inflation and/or supply chain disruptions; (viii) any litigation or other similar proceedings (including with tax, customs, competition, environmental, anti-corruption or other regulatory authorities); (ix) legal and regulatory developments, including changes in regulations relating to environmental issues and/or e-commerce; (x) the consequences of any failure of internal controls; (xi) the consequences of any failure by Diageo or its associates to comply with anti-corruption, sanctions, trade restrictions or similar laws and regulations, or any failure of Diageo's related internal policies and procedures to comply with applicable law or regulation; (xii) cyber-attacks or any other disruptions to core business operations; (xiii) contamination, counterfeiting or other circumstances which could harm the level of customer support for Diageo's brands and adversely impact its sales; (xiv) Diageo's ability to maintain its brand image and corporate reputation or to adapt to a changing media environment; (xv) increased competitive product and pricing pressures, including as a result of introductions of new products or categories that are competitive with Diageo's products and consolidations by competitors and retailers; (xvi)increased costs for, or shortages of, talent, as well as labour strikes or disputes;

1. Diageo's ability to derive the expected benefits from its business strategies, including Diageo's investments in e-commerce and its luxury portfolio; (xviii) fluctuations in exchange rates and/or interest rates; (xix) a tightening of global financial conditions, including an extended period of constraint in the capital markets which Diageo may access; (xx) movements in the value of the assets and liabilities related to Diageo's pension plans; (xxi) Diageo's ability to renew supply, distribution, manufacturing or licence agreements (or related rights) and licences on favourable terms, or at all, when they expire; or (xxii) any failure by Diageo to protect its intellectual property rights.

All oral and written forward-looking statements made on or after the date of this document and attributable to Diageo are expressly qualified in their entirety by the above cautionary factors and by the 'Risk Factors' included in Diageo's Annual Report on Form 20-F for the year ended 30 June 2022 filed with the US Securities and Exchange Commission (SEC). Any forward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does not undertake to update forward- looking statements to reflect any changes in Diageo's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

This document includes names of Diageo's products, which constitute trademarks or trade names which Diageo owns, or which others own and license to Diageo for use. All rights reserved. © Diageo plc 2023.

This presentation includes financial measures which are not presented in Diageo's financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and are considered "non-GAAP financial measures" under US Securities and Exchange Commission rules. Please refer to the section "Definitions and reconciliations of non-GAAP measures to GAAP measures" set out at the end of this presentation.

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Interim Results Fiscal 23

D E L I V E R I N G S U S TA I N A B L E L O N G - T E R M G R O W T H

Continued strong growth

in H1 F23

3 Interim Results Fiscal 23

1. Delivered strong H1 F23 results with quality growth and improving margins

2. Quality market share gains

3. Continued investment in long-term growth

4. Continued progress on Society 2030

5. Continued creating shareholder value

D E L I V E R I N G S U S TA I N A B L E L O N G - T E R M G R O W T H

Strong H1 F23 results across key

financial metrics

4 Year organic

NSV CAGR

+8%

Organic	Organic
volume	net sales value
			growth
		+1.8%			+9.4%

Free	Pre-exceptional
cash flow	eps
£0.8bn	98.6p
		-£0.8bn	+15%

Organic operating margin expansion

+9bps

Interim dividend

30.83p +5%

4 Interim Results Fiscal 23

Source: Diageo internal information For additional information on non-GAAP measures please see financial/legal appendix

D E L I V E R I N G S U S TA I N A B L E L O N G - T E R M G R O W T H

Strong organic net sales growth

+9.4%

Organic volume growth

+1.8%

Europe

+10%

NAM
+3%	APAC
	+17%

LAC
+20%	Africa
	+6%

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Interim Results Fiscal 23

Source: Diageo internal information. For additional information on non-GAAP measures, please see financial/legal appendix.

In June 2022 Diageo announced that it would wind down its business in Russia over the following six months.