JεB is the No.1

scotch whisky in Spain

Black & White

is the No.1

primary scotch

whisky in Mexico 3

MARKETING

Cîroc is the

No.2

reserve vodka

in the United States

Bulleit is the

No.1 rye

whiskey in the

world

Don Julio is the No.2

reserve Tequila in the world

Talisker is the

No.1 super

malts whisky in

Europe

Zacapa is the

No.1 reserve rum in the world

Buchanan’s is the No.2

premium scotch

whisky in the

United States

Johnnie

Walker is the

No.1 scotch whisky in the world

Smirnoff is the No.1

vodkain the world

Captain

Morgan is

the No.2 rum

in the world

VOLUME

Our Sustainability and Responsibility priorities

#1

#2

#3

Create a positive role for alcohol in society

Build thriving communities

Reduce our environmental impact

Tanqueray

is the No.1

gin in the

United States

Financial strength

1 Pre exceptional items; 2 Reported movement; 3 Adjusted to

include net debt and post employment liabilities

Volume

126mEU

Net sales

£6.5bn

Marketing spend

£1.0bn

Operating profit1

£2.2bn

Eps1

67.8pence

Adj. net debt3

/ EBITDA1 ratio

2.2x

Reported

operating

margin1

33.5%

Dividend

24.9pence

2%

4%

7%

7%

9%2

Free cash

flow

£1.0bn

F18 H1 reported

figures

Organic

movement

5%2

Baileys is

the No.1

liqueur in the world

F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 F14 F15 F16 F17

0

5

10

15

03 10 17

£bn

NSV

OP

Growing dividend per share

NET SALES

Sustained performance

Net sales* increased from £6,636m in F03 to £12,050m in F17

Operating profit increased from £1,902m in F03 to £3,601m in F17

Guinness is

the No.1 stout

in the world 2

North American whisk(e)y

Scotch Vodka

Rum

Liqueurs Gin Tequila

Beer Ready to drink

IMFL whisky

Other

Crown Royal

is the No.1 Canadian

whisky in the world

126.4EUm

0

5

10

03 10 17

%

NSV

OP

£6,530m

Yenì Raki is

the No.1

aniseed based

spirit in the world

F17 dividend: 62.2 pence per share

Shui Jing Fang has 600 years

heritage and

distributed in 26

countries

World leading brands1

Bundaberg

is the No. 1

rum in

Australia

Old Parr is

the No.1

scotch whisky in Colombia

Local stars

McDowell’s is the No.2 IMFL

whisky in the world

Global giants

*Global giants and Local stars including reserve variants. 1IWSR 2016;

2canadean intelligence;

3 NISCAM November 2017

£968m

% of net sales 43%*

Singleton is the No.1 premium

scotch malts

whisky in Asia

Pacific

20%* 18%

Reserve

” I WANT TO CREATE ONE OF THE BEST PERFORMING, MOST TRUSTED AND RESPECTED CONSUMER PRODUCTS COMPANIES IN THE WORLD “

PERFORMANCE AMBITION

Organic growth

Year ended 30 June. Percentage increases are organic growth movements before exceptional items and have not been restated for accounting changes. *Net sales is after deducting excise duties. 2003-2004 as reported under UK GAAP. 2005 restated for IFRS. 2009 restated for IFRS. 2012-2013 restated for IAS19 and IFRS11.

Other

Tequila

Beer

North America delivered net sales

growth of 2% with US Spirits

growing 3%, continued growth in

DBC USA and Canada, and

improvement in Travel Retail. In US Spirits, category share gains

were achieved for all key brands

except in vodka. Net sales in Canada were up 1%.

DBC USA net sales grew 2% with

ready to drink growing 4% and beer

declining 1%.

RTDs Beer

Tequila

* Organic growth six months ended 31 December 2017, ** Other principally Travel Retail

Local Spirits

In Europe, net sales were up 4%

largely driven by Great Britain and

Continental Europe.

Growth primarily driven by gin, across

both Tanqueray and Gordon’s. Strong

performance on Johnnie Walker,

Captain Morgan and reserve brands

continued. Guinness net sales were up 4%.

In Turkey, net sales were up 10%

largely driven by price increases

across categories.

Liqueurs

Vodka

Asia Pacific net sales grew 7% with

strong growth in Greater China and

solid performance in India and South

East Asia partially offset by Korea

and Australia.

In scotch, net sales were up 5% as

strong performance in Johnnie

Walker more than offset the net sales decline in Windsor in Korea.

Net sales of reserve brands were up

29% mainly driven by Chinese white

spirits.

Net sales in India grew 2% largely

impacted by highway ban.

Gin

Liqueurs

Africa net sales increased 2%.

Growth in Nigeria was partially offset

by weakness in Africa Regional

Markets and South Africa. Kenya was

flat.

Beer performance with net sales up 5% was driven by Dubic in Nigeria

and Serengeti Lite in Tanzania.

Guinness and Malta Guinness showed

net sales growth of 3% and 9%

respectively.

Mainstream spirits continued to

deliver strong growth, up 14%.

RTDs

Turkey

Local spirits

RTDs

Other

Vodka

Rum

Latin America and Caribbean net

sales grew 7% with strong

performance in PUB, Mexico and

PEBAC partially offset by Colombia. In scotch net sales were up 2% with

strong performance by Johnnie

Walker and Black & White partially

offset by Old Parr. Don Julio and Smirnoff delivered

strong double digit growth. Tanqueray drove category growth in

Brazil and Mexico, and in rum net

sales were up double digit.

Super Premium

Other**

Standard

Standard

Value

Value

Premium Premium

Ultra Premium Ultra Premium

2%

3%

4%

12%

2%

(3)%

7%

10%

7%

17%

Other

Super

Premium

Scotch

Scotch

Vodka

Value

Standard

Premium

Super

Premium

Ultra

Premium

Other** Other** Other**

Europe

Liqueurs

Rum

Vodka

Scotch Beer

Gin

Beer

Other

Ultra Premium Value

Standard

Standard

Value

Premium

Premium

Liqueurs

Scotch

North American

whisk(e)y

Ultra Premium

Super Premium

Super Premium

PUB

Rum

Scotch Other

IMFL whisky

Vodka

Other** Canada

US Spirits

DBC USA

Beer

RTDs

Gin Liqueurs

Rum

cate

go

rie

s

pric

e s

eg

men

ts

markets

Net

sale

s c

on

trib

uti

on

by

RTDs

North America Europe and Turkey Africa Latin America and Caribbean Asia Pacific

% of net sales 33% 25% 12% 10% 20%

Local spirits

Net sales

movement*

Operating profit

movement*

Hig

hli

gh

ts

GEOGRAPHIC BREADTH – F18 H1 AT A GLANCE

India

Gin

Australia

East Africa

Greater China

Africa Regional

Markets

Nigeria

South Africa

South East

Asia

Mexico

CCA

Adrean

North Asia

PEBAC

KEY FINANCIAL INFORMATION BUSINESS REVIEW

Organic Reported Organic Reported

F18 H1 F17 H1

F18 H1 F17 H1

F18 H1 F17 H1 growth% growth% F17 H1 F16 H1 growth% growth% %* Eum %* Eum %* £m %* £m Volume EUm 126.4 129.4 2 (2) 129.4 130.3 2 (1) NORTH AMERICA

VO

LU

ME

1 25.2 1 24.8

NET

SA

LE

S

2 2,183 3 2,172 Net sales £m 6,530 6,421 4 2 6,421 5,606 4 15 EUROPE AND TURKEY 5 25.2 3 24.1 4 1,599 5 1,534

Marketing £m 968 908 7 7 908 822 (2) 10 AFRICA 4 17.4 3 16.8 2 774 4 808

Operating profit before exceptional items £m 2,190 2,065 7 6 2,065 1,717 4 20 LATIN AMERICA AND CARIBBEAN 9 12.5 - 11.6 7 649 11 628

Operating margin expansion* bps 81 (1) (1) 16 ASIA PACIFIC (1) 46.1 2 52.1 7 1,298 3 1,255

Operating profit £m 2,190 2,065 6 2,065 1,613 28 CORPORATE 8 27 14 24

Profit attributable to parent company’s

shareholders £m 2,058 1,514 36 1,514 1,406 8 DIAGEO 2 126 2 129

4 6,530 4 6,421

Basic earnings per share pence 82.2 60.3 36 60.3 56.1 7

F18 H1 F17 H1

F18 H1 F17 H1

F18 H1 F17 H1

Earnings per share before exceptional items pence 67.8 62.0 9 62.0 51.3 21 %* £m %* £m %* £m %* £m %* %*

Tax rate including exceptional items % 3.5 21.0 (83) 21.0 16.6 27 NORTH AMERICA

MA

RK

ET

IN

G

8 338 1 318

OP

ER

AT

IN

G P

RO

FIT*

*

3 1,027 6 1,019

OP

ER

AT

IN

G M

AR

GIN

47.4 47.3

Tax rate before exceptional items % 19.8 20.9 (5) 20.9 19.0 10 EUROPE AND TURKEY 6 246 (2) 229 12 599 6 535 37.5 35.1

Free cash flow £m 1,029 1,084 1,084 839 AFRICA 2 83 3 84 (3) 120 2 132 15.5 16.3

ROIC % 16.5 15.7 15.7 13.9 LATIN AMERICA AND CARIBBEAN 11 109 (6) 99 10 218 13 205 33.6 32.6

Average net debt £m (8,819) (9,066) (9,066) (9,671) ASIA PACIFIC 9 188 (6) 174 17 316 (6) 259 24.3 22.3

- -

CORPORATE 4 4 (14) (90) (20) (85)

- -

DIAGEO 7 968 (2) 908 7 2,190 4 2,065 33.6 32.8

* Organic, ** Pre-exceptional

60.3

82.2 13.8 2.2

(0.6)

5.5

(0.1)

1.1

(0.3)

0.3

F17 H1 Exceptionalitems after tax

Discontinuedoperationsafter tax

Exchange onoperating

profit

Organicoperating profit

growth(ii)

Associates andjoint ventures

Net financecharges

Tax Other F18 H1

15.7%

16.5%

10bps

(10)bps

126bps

(20)bps (18)bps (11)bps

F17 H1 Exchange Acquisitionsand disposals

Organicoperating

profit growth

Associatesand jointventures

Tax Other F18 H1

32.2%

33.5%

45bps 12bps 3bps

(44)bps

122bps

F17 H1 Exchange Acquisitionsand disposals

Gross margin Marketing Other operatingexpenses

F18 H1

Organic operating profit grew 6.7%, ahead of top line growth, as higher marketing investment was more than offset by efficiencies from our productivity programme

Basic eps of 82.2 pence was up 36.3%. Pre-

exceptional eps was 67.8 pence, up 9.4%, driven by

higher organic operating profit and lower finance

charges

The interim dividend increased 5% to 24.9 pence per share growth_CY_TOT

Cash flow continued to be strong and broadly in line with last year, with net cash from operating activities at £1.2 billion and free cash flow at £1 billion

All regions contributed to broad based organic net sales growth, up 4.2%, and organic volume grew 1.8%

Reported net sales (£6.5 billion) and operating profit (£2.2 billion) were up 1.7% and 6.1%, respectively, as organic growth was partially offset by adverse exchange

(i) Exchange rate movements reflect the translation of prior period reported results at current exchange rates. (ii) Excluding exchange. (iii) Exchange on operating profit before exceptional items. (iv) Operating profit excluding exchange, depreciation and amortisation, post employment charges and non-cash items. (v) Working capital movement includes maturing stock (vi) Other items include post employment payments, dividends received from associates and joint ventures and loans and other investments.

6,421 6,530

(134) (17)

111 149

F17 H1 Exchange(i) Acquisitionsand disposals

Volume Price/mix F18 H1

Organic movement

1,084 1,029

(17) (15)

86

(37)(101)

21 8

F17 H1 Capex Exchange(iii) Operatingprofit(iv)

Workingcapital(v)

Tax Interest Other(vi) F18 H1

Net sales growth (£ million)

Operating margin improvement (%)

FINANCIAL RESULTS – F18 H1

Basic eps (pence)

Free cash flow (£ million)

Return on average invested capital (ROIC) (%)

Organic movement

FINANCIAL RESULTS – F18 H1 STRATEGIC MARKETS PERFORMANCE (growth %) CATEGORY AND BRAND PERFORMANCE (growth %)

Organic volume Organic net sales Reported net sales Organic volume Organic net sales Reported net sales

F18 H1* F17 H1 F18 H1* F17 H1 F18 H1* F17 H1 F18 H1* F17 H1 F18 H1* F17 H1 F18 H1* F17 H1

NORTH AMERICA 1 1 2 3 1 16 SPIRITS** 2 2 5 6 3 20

US Spirits 1 1 3 4 - 17 SCOTCH 4 4 3 6 3 21

Diageo Beer USA 2 - 2 3 (4) 14 NORTH AMERICAN WHISK(E)Y 1 11 4 15 - 37

Canada (2) 4 1 5 1 21 VODKA**** 1 (2) (3) (2) (6) 15

EUROPE AND TURKEY 5 3 4 5 4 13 RUM**** (1) (4) 5 2 1 13

Europe 5 4 4 5 9 10 LIQUEURS 5 3 5 2 5 12

Turkey 7 (5) 10 5 (8) 15 TEQUILA 37 22 43 18 58 36

AFRICA 4 3 2 4 (4) 13 GIN**** 18 4 16 7 15 21

East Africa 4 5 - - (5) 19 IMFL WHISKY (2) 6 1 11 (3) 14

Africa Regional Markets (6) - (4) 6 (8) 22 BEER - 1 4 - - 7

Nigeria 17 7 20 6 - (19) READY TO DRINK (5) (5) (2) (1) (4) 21

South Africa 4 (2) (2) 10 (2) 42 DIAGEO 2 2 4 4 2 15 LATIN AMERICA AND

CARIBBEAN 9 - 7 11 3 20 GLOBAL GIANTS**

PUB 9 (6) 14 (6) 13 26 Johnnie Walker 5 4 7 6 6 20

Mexico 7 20 12 21 12 25 Smirnoff 2 (2) (1) (2) (3) 13

CCA (6) 7 (6) 10 (6) 4 Captain Morgan 8 4 6 2 5 20

Andean 16 (19) (1) 30 (12) 56 Baileys 6 5 6 3 6 17

PEBAC 31 3 17 5 18 (13) Tanqueray 16 12 16 9 15 28

ASIA PACIFIC (1) 2 7 3 3 12 Guinness 1 (3) 4 - 2 10

India (3) 2 2 4 (4) 3 LOCAL STARS** Greater China 29 24 32 22 32 44 Crown Royal 1 15 3 17 (1) 40

Australia (10) 2 (8) 3 (9) 29 Yenì Raki 2 (4) 7 5 (11) 16

South East Asia 8 4 10 2 7 15 JεB (5) 6 (8) 5 (6) 20

North Asia 6 10 (5) (2) (8) 23 Buchanan’s (3) 28 1 24 (2) 40

Travel Retail Asia and Middle East 29 (20) 27 (18) 32 (19) Windsor (11) (14) (15) (15) (16) 4

DIAGEO 2 2 4 4 2 15 Old Parr (11) 7 (15) 14 (16) 34

Bundaberg (13) (3) (8) 1 (9) 26

Black & White 31 21 42 9 42 27

* Organic equals reported volume movement except for:

Europe 7%, South East Asia 27%, India (15%) and Mexico 6%,

spirits (3)%, rum (10)%, IMFL whisky (9)%, vodka (1)%, tequila 53%, gin 13% and McDowell’s (15%) which were

impacted by acquisitions and disposals and the move from an owned to a franchise model in India and beer 2% and Guinness 4% which was impacted by an adjustment to include Malaysia and Singapore contract brew

volume in the reported beer figures.

Ypióca 12 - 7 (3) 5 32

McDowell's (3) 1 3 4 (6) 1

Shui Jing Fang*** 69 79 75 63 73 82

RESERVE**

Scotch malts 1 4 3 3 4 20

** Spirits brands excluding ready to drink. Cîroc (2) 7 (6) 6 (9) 25 *** Organic growth figures represent total Chinese white spirits of which Shui Jing Fang is the predominant brand. Ketel One vodka (6) (3) (11) (8) (14) 10 **** Vodka, rum, gin including IMFL brands. Don Julio 35 22 42 17 38 35

Bulleit 10 27 11 29 8 54