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Diageo atCAGNYFebruary 2012

Makinga strongbusiness stronger

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Paul WalshCEO

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Diageo

Worlds leading premium drinks company

outstanding brands and global reach

c40% of our business in the wealth creating,emerging markets of the world

Enhancing our position through world class marketing

Consistently leading the industry in innovation

29% operating margin, 16% ROIC, 2.2x net debt:EBITDA

Year ended 30 June 2011.

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Acceleratingvalue creation

Faster organic net sales growth

Strongplatform

+

Expansion

in faster

growing

markets

+

Sharperfocus

A im: 6% CAGR in the medium term

Organic operatingmargin improvement Maximising

cash and

returnsA im:The first 200bpts by year

2014ending

EPS growth

A im: Double digit growth in core* eps

* Excluding foreign exchange and exceptional items.

4

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Diageoiswell positioned forgrowth

Out-standing

brandportfolio

Industryleading

marketing

skills

Superiorroute-to-market

Scale &Agility

Industryleadingsales

capabilities

World-class

innovation

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Outstandingbrandportfolio

6

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Unparalleledbreadthanddepth

UltraPremium

SuperPremium

Premium

Popular /Value

7

Vodka Scotch Whisk ey Gin Tequi la Rum Cordia ls

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Broadeningourbrandrangethroughacquisitions

Ketel One Zacapa Mey k i ShuiJ ingFang

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Broadening our brandrange through innovation

Premiumising our brands Emerging middle class consumers

The female opportunity Unlocking growth in developed markets

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Industry leadingmarketingskills

Strategicalliances Multi-culturalexpertise

Pioneeringdigital

Luxury

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Renewed customer focusatamarketlevelisdrivingtoplinegrowth

Ease of sho pCocktai ls ontap

Brand act ivat ion Port fo l io prog rams Luxu ry act ivat ion

Off premise On premise

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Superiorroutes to market

Leadership in US Spirits

#1 International spirits companyPacific and Latin America

in Asia

Leading beer and spirits company in Africa

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Enhancing our presenceinthewealthcreatingmarkets

c40% of our businessis now in the emerging

markets

18% NSV and 23% OPgrowth with increased

investment*

Marketing up 20%*

Investment inmarket

organisations

15%*

in-

up

* 6 months ended 31 December 2011.

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Theoperating model review gave us:

Differentiated strategies by market

Focus on global and local

Prioritising commercial success

Standards of compliance and reputation

are non-negotiable

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NorthAmerica driving efficient growth

North America is an attractive growth market forbeverage alcohol:

Per capita spirits consumption is increasing

Consumers trading up

Resilience of spirits growth

Growth in wine and discovery beer

Diageo is well positioned for growth

Focus on spirits, wine and discovery beer

Unique relationships with our customers

Scale and excellence in innovation and marketing

Our new operating model has strengthened our focus

We are accelerating top line growth, sustaining margin

expansion and increasing returns

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Oneintegrated Western Europe market

A consumer and customer focused agenda

Winning customer partnerships

Rapid, effective investment and roll out of

marketing and innovation

Focus on accelerating the growth of superpremium brands

Able to fund incremental marketingand drive operating margin expansion

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Supply goals: Enhancing margin andenablinggrowth

Competitive advantage in costmargin expansion through will deliver gross

Asset rationalisation

Advantaged sourcing

Competitive advantage in service will helpaccelerate top line growth through

Collaborating more closely with customers

Accelerating the rate of product innovation

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Astrongstart

Marketing up 10% to 15.8%* of net sales

7% net sales growth with strong price/mix

Gross margin up 70 bpts*

Operating profit growth of 9% withoperating margin expansion*

60 bpts

Free cash flow of 0.5 billion

7% increase in interim dividend

6 months ended 31 December 2011. * Organic.

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Agreatcompanyisagoodglobalandlocalcitizen

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Questions

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Reconciliation to GAAPmeasuresYear ended30June

2010Reported,

m

Acquisitions**and disposals,

m

Organicmovement,

m

2011Reported,

m

Organicmovement,

%Exchange*,

m

*The exchange adjustments for net sales and marketing spend are primarily the retranslation of prior period reported results at current period exchange

rates and are principally in respect of the weakening of the Venezuelan bolivar, the Euro and some African currencies. The exchange adjustment foroperating profit was largely attributable to the weaker Venezuelan bolivar, offset by the favourable transaction exchange rate movements in the US dollar

and the Euro.

**The impacts of acquisitions and disposals are excluded from the organic movement percentages. In the 12 months ended 30 June 2011 acquisition

represent the performance of Serengeti Breweries in Tanzania. Disposals in the 12 months ended 30 June 2011 were the disposals completed under the

reorganisation of the groups US wines operations and the disposal of the Gilbeys wholesale wine business in Ireland. Adjustment is also made to exclude

directly attributable transaction costs incurred in the 12 months ended 30 June 2011 of 15 million, netted against acquisition costs of 9 million incurred in

the 12 months period ended 30 June 2010 primarily in respect of the acquisition of Mey Ick i, Zacapa and the acquisition of an additional equity stake in

Quanxing.

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Net sales 9,780 (221) (55) 432 9,936 5

Marketing spend 1,419 (2) 3 118 1,538 8

Operating profit

before exceptionalitems

2,751 18 (14) 129 2,884 5

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Reconciliation to GAAPmeasures6 monthsended31December

2010 Acquisitions**and disposals,

m

Organicmovement,

m

2011Reported,

m

Organicmovement,

%Reported,

mExchange*,

m

*The exchange adjustments for net sales and marketing spend are primarily the retranslation of prior period reported results at current period exchange

rates and are principally in respect of the weakening of some African currencies and the weaker US dollar, offset by the appreciation of the Euro. Theexchange adjustment for operating profit was largely attributable to the weaker African currencies and the adverse transaction exchange rate movements

in the US dollar.

**The impacts of acquisitions and disposals are excluded from the organic movement percentages. In the six months ended 31 December 2011 acquisitions

represent the Mey Icki business in Turkey and Serengeti Breweries in Tanzania. Disposals in the six months ended 31 December 2011 were the disposals

completed under the reorganisation of the groups US wines operations and the disposal of the Gilbeys wholesale wine business in Ireland. Adjustment is

also made to exclude directly attributable transaction costs incurred in the six months ended 31 December 2011 of 39 million, netted against acquisition

costs of 6 million incurred in the six months period ended 31 December 2010 primarily in respect of the acquisition of Mey Icki, Zacapa and the

acquisition of an additional equity stake in Quanxing.

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Net sales 5,320 (42) 115 364 5,757 7

Marketing spend 813 (4) 10 77 896 10

Operating profit

before exceptionalitems

1,727 (30) 16 153 1,866 9

C ti t t t i f d l ki t t t

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Cautionary statement concerning forward-looking statements

This presentation contains forward-lookingstatements. These forward-looking statements can be identified by the fact that they do not relate only to historical orcurrent facts. In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect tofuture matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availabilityor cost of financing to Diageo, anticipated cost savings or synergies, the completion of Diageo's strategic transactions and restructuring programmes, anticipatedtax rates, expected cash payments, outcomes of litigation, anticipated deficit reductions in relation to pension schemes, general economic conditions and allstatements on the slide outlook statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and dependon circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from thoseexpressed or implied by these forward-looking statements, including factors that are outside Diageo's control.

These factors include, but are not limited to:global and regional economic downturns; increased competitive product and pricing pressures and unanticipated actions by competitors that could impact Diageos market share, increase expenses

and hinder growth potential;

the effects of Diageos strategic focus on premium drinks, the effects of business combinations, partnerships, acquisitions or disposals, existing or future,and the ability to realise expected synergies and/or costs savings;

Diageos ability to complete existing or future business combinations, restructuring programmes, acquisitions and disposals; legal and regulatory developments, including changes in regulations regarding production, product liability, distribution, importation, labeling, packaging,

consumption or advertising; changes in tax law, rates or requirements (including with respect to the impact of excise tax increases) or accountingstandards; and changes in environmental laws, health regulations and the laws governing labour and pensions;

developments in any litigation or other similar proceedings (including with tax, customs and other regulatory authorities) directed at the drinks and spiritsindustry generally or at Diageo in particular, or the impact of a product recall or product liability claim on Diageos profitability or reputation;

developments in the Colombian litigation, Korean customs dispute, thalidomide litigation or any similar proceedings;changes in consumer preferences and tastes, demographic trends or perception about health related issues, or contamination, counterfeiting or othercircumstances which could harm the integrity or sales of Diageos brands;

changes in the cost or supply of raw materials, labour, energy and/or water;changes in political or economic conditions in countries and markets in which Diageo operates, including changes in levels of consumer spending, failure of

customer, supplier and financial counterparties or imposition of import, investment or currency restrictions; levels of marketing, promotional and innovation expenditure by Diageo and its competitors;renewal of supply, distribution, manufacturing or licence agreements (or related rights) and licenses on favourable terms when they expire;termination of existing distribution or licence manufacturing rights on agency brands;disruption to production facilities or business service centres, and systems change programmes, existing or future, and the ability to derive expected

benefits from such programmes;technological developments that may affect the distribution of products or impede Diageos ability to protect its intellectual property rights; andchanges in financial and equity markets, including significant interest rate and foreign currency exchange rate fluctuations and changes in the cost of

capital, which may reduce or eliminate Diageos access to or increase the cost of financing or which may affect Diageos financial results and movementsto the value of Diageos pensions funds.

All oral and written forward-looking statements made on or after the date of this presentation and attributable to Diageo are expressly qualified in their entirety bythe above factors and the Risk factorscontained in Diageos Annual Report on Form 20-F for the year ended 30 June 2011 as filed with the US Securities andExchange Commission (SEC). Any forward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does notundertake to update forward-looking statements to reflect any changes in Diageo's expectations with regard thereto or any changes in events, conditions orcircumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Diageo may make in any documentswhich it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures.

This document includes names of Diageo's products, which constitute trademarks or trade names which Diageo owns, or which others own and license toDiageo for use. All rights reserved. Diageo plc 2012.

The information in this presentation does not constitute an offer to sell or an invitation to buy shares in Diageo plc or an invitation or inducement to engage in anyth i t t ti iti