diageo ppt
TRANSCRIPT
DIAGEO
THE BUSINESS MODEL
OUR STRONGEST LINKS
PROSPECTS
FINANCIAL HIGHLIGHTS
RISK FACTORS
WORLD’S LEADING PREMIUM DRINKS COMPANY
#1 Spirits company in the United States
#1 International spirits company in Asia Pacific and Latin America The largest premium drinks company in Europe
14 strategic brands
A leading beer company in Africa
STRONG GLOBAL OUTREACH
£3,324m North America
£2,614m Europe
£2,747m International
£1,181m Asia Pacific
180 MARKETS AROUND THE GLOBE
30 spirits, beer,
and wine brands,
distributed globally
across 180 countries
BUSINESS MODEL
OUR STRONGEST LINKS
Beer
Spirits
Niche category in Stout
Guinness
Investments in Africa
Strong presence in North
America and Western Europe
Acquisitions in key growth
markets
World’s 26th Biggest wine producer
Focused on the UK, US and
Argentina
Wine
14 STRATEGIC BRANDS
14 STRATEGIC BRANDS
BUSINESS PROSPECTS
PROSPECTS
Focus on growth in emerging markets Drive
growth in Stout
Lower value spirits Trimming
losses
POSITIONED FOR GROWTH
#1 Restructuring
Focus on growth in emerging markets
Fully implemented by 30 June 2013
#2 Acquisitions
#3 Unlocking growth in
developed markets
#4 Emerging middle
class consumers
#5 Premiumising our
brands
DIVIDENDS OF
2.7%
ANNUALLY
FINANCIAL HIGHLIGHTS
INCREASE IN REVENUE YOY INCREASE IN CASH FROM OPERATIONS INCREASE IN NET PROFIT MARGIN 13.89% (FY2010) TO 16.77% (FY2011)
ROE OF 41.07 IN FY2011 – INDUSTRY LEADER
DECREASE IN LONG TERM DEBT
PE RATIO OF 16.21 (INDUSTRY PE: 27.41)
FINANCIAL COMPARABLES
FINANCIAL RATIO
PROFITABILITY RATIO
#1 Diageo’s products may be
affected by changes in consumer preferences and tastes and adverse impacts of a declining economy
RISK FACTORS
#2 An increase
in the cost of raw
materials or energy could affect Diageo’s profitability
#3 Diageo’s operations may be adversely affected by
failure to maintain or renegotiate distribution, supply, manufacturing or licence agreements on favourable terms.
DIAGEO: WHY INVEST IN US?
High value for money
Consistent Dividends
Competent manageme
nt team
Good investment opportunity
PE ratio low: CHEAP Low price target of 98.87 is higher than share price of 96.86 now Average price target of 101.72 High price target and low price target Dividend
THANK YOU.