Performance Summary: Outstanding Brands - Diageo

NORTH AMERICA

Growth driven by priority and reserve brands
Net sales growth of spirits up 7%, wine up 12% and beer up 6%
The majority of the priority spirits, wine and beer brands gained share
Share of US spirits broadly maintained at 28.3 percentage points despite share loss in value brands as priority brands gained 0.3 percentage points of share
Ready to drink segment continued to be challenging with net sales down 10%

Regional brands include:

STERLING VINEYARDS, BULLEIT BOURBON, CHALONE VINEYARD

5%

NET SALES UP

2%

VOLUME UP

3%

MARKETING SPEND UP

10%

OPERATING PROFIT UP

Link to business review North America

EUROPE

Eastern Europe and Russia contributed over two thirds of net sales growth
Strong performance in Great Britain generated nearly 20% of the region’s growth
Guinness’ outperformance against the beer categories in Great Britain and Ireland continued
Strong performance of J&B with net sales growth driven by price increases in Spain and volume growth in Continental Europe
Price increases implemented across the region

Regional brands include:

CLASSIC MALTS, PIMM’S, CACIQUE, GORDON’S GIN

3%

NET SALES UP

2%

VOLUME UP

6%

MARKETING SPEND UP

3%

OPERATING PROFIT UP

Link to business review Europe

INTERNATIONAL

Continued double-digit net sales growth in Latin America, Africa and Global Travel and Middle East driven by strong price/mix improvements across categories and markets
In Africa strong performance of beer brands with net sales growth of 19% combined with continued net sales growth of spirits brands up 21% drove very strong growth
Volume growth across the region combined with price increases resulted in strong net sales growth of 14% in scotch
Increased focus on categories outside of scotch and beer, such as vodka and rum, drove broader based growth

Regional brands include:

PAMPERO , BUCHANAN’S, MALTA GUINNESS, RED STRIPE

16%

NET SALES UP

5%

VOLUME UP

16%

MARKETING SPEND UP

19%

OPERATING PROFIT UP

Link to business review International

ASIA PACIFIC

Continued investment in regional infrastructure to support future growth objectives
Net sales growth in the region driven by global priority brands
India route to market strengthened as a result of continued growth of locally produced brands
Further share gains in scotch in China
Loss of import licence in Korea for part of the year impacted all measures
Ready to drink performance was affected by the excise duty increase in Australia in the fourth quarter

Regional brands include:

SHARKTOOTH, MASTERSTROKE BENMORE

2%

NET SALES UP

2%

VOLUME UP

(6%)

MARKETING SPEND DOWN

(12%)

OPERATING PROFIT DOWN

Link to business review Asia Pacific