Diageo is the world’s leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines and beer categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan’s, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness.

Diageo is a global company, with its products sold in more than 180 markets around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).

We employ around 25,000 talented people worldwide with offices in around 80 countries. Our manufacturing facilities are located across the globe including Great Britain, Ireland, United States, Canada, Italy, Africa, Australia and Latin America and the Caribbean.

Diageo was formed in 1997, following the merger of GrandMet and Guinness, and is headquartered in London. The word Diageo comes from the Latin for day (dia) and the Greek for world (geo). We take this to mean every day, everywhere, people celebrate with our brands.

CHAIRMANDr Franz Humer was appointed chairman of Diageo plc in July 2008, having been a non-executive director since April 2005. He is also chairman of F. Hoffmann -La Roche Ltd. in Switzerland and chairman of INSEAD’s board of directors. He was formerly chief operating director of Glaxo Holdings plc and has held a number of other non-executive directorships.

CHIEF EXECUTIVE, EXECUTIVE DIRECTOR AND CHAIRMAN OF THE EXECUTIVE COMMITTEEPaul Walsh was appointed chief executive of Diageo plc in September 2000, having been chief operating officer since January 2000. He has served in a number of management roles since joining GrandMet’s brewing division in 1982, including chief executive officer of The Pillsbury Company. He was appointed to the GrandMet board in October 1995 and to the Diageo plc board in December 1997. He is a non-executive director of FedEx Corporation Unilever plc and Avanti Communications plc. Paul is also the immediate past-chairman of the Scotch Whisky Association, a role he held for 3 years.

CHIEF FINANCIAL OFFICER AND MEMBER OF THE EXECUTIVE COMMITTEEDeirdre Mahlan was appointed chief financial officer of Diageo plc in October of 2010 having worked for the Seagram Company since 1992. She has held a number of senior finance positions in Diageo including finance director of our biggest region, North America, and as Global Head of Tax, of Treasury and of Shared Services. Most recently, she was deputy chief financial officer of Diageo plc.

Non-executive directors: Peggy B Bruzelius, Laurence M Danon, Lord Davies of Abersoch, Betsy D Holden, Philip G Scott and H Todd Stitzer.

Executive committee: Paul Walsh (Chief executive officer), Deirdre Mahlan (Chief financial officer), Nick Blazquez (President, Diageo Africa), Andy Fennell (Chief marketing officer), Gilbert Ghostine (President, Diageo Asia Pacific), David Gosnell (President, Global Supply and Global Procurement), Jim Grover (Global Business Support director), Ivan Menezes (President, Diageo North America, and chairman Diageo Asia Pacific and Diageo Latin America and Caribbean), Randy Millian (President Diageo Latin America and Caribbean), Andrew Morgan (President, Diageo Europe), Tim Proctor (General counsel), Larry Schwartz (President, Diageo USA), Gareth Williams (HR director) and Ian Wright (Corporate Relations director).

STOCK EXCHANGE DATA AS AT 31 DECEMBER 2011

Listing London Stock Exchange New York Stock Exchange

Ticker DGE.L /DGE LN DEO (ADR – 1:4)

Sector Beverages Beverages

Market cap £35.16bn US$54.64bn

Shares in issue 2.50bn 625.04m

TOP SHAREHOLDERS AS AT 31 DECEMBER 2011

Legal & General Investment Management Ltd 3.90%

MFS Investment Management 3.64%

Harris Associates LP 2.37%

BlackRock Institutional Trust Company 2.08%

Norges Bank Investment Management 2.07%

FINANCIAL CALENDAR

Interim Statement 2 May 2012

Full Year Results 23 August 2012

AGM 17 October 2012

Financial Year 1 July to 30 June

ADVISORS

Corporate Brokers Credit Suisse, Goldman Sachs and UBS

Auditors KPMG

DR FRANZ HUMER PAUL WALSH DEIRDRE MAHLAN* Sales after excise duties

(excluding Corporate)** Pre exceptional items

(excluding Corporate)

NET SALES BY REGION (£ MILLION)*

OPERATING PROFIT BY REGION (£ MILLION)**

NB: The tax rate before exceptional items for the six months ended 31 December 2011 was 18.1% compared with 21.8% in the six months ended 31 December 2010.

* Pre exceptional items

SIX MONTHS ENDED SIX MONTHS ENDED REPORTED ORGANIC 31 DECEMBER 2011 31 DECEMBER 2010 % %

Volume 84.1m 79.0m 6 3 (9-L equivalent cases)

Net sales £5,757m £5,320m 8 7 (sales after excise duty)

Marketing £896m £813m 10 10 spend

Operating profit* £1,866m £1,727m 8 9

Profit attributable £953m £1,194m (20) equity shareholders

eps* 55.9 48.2 16

Free cash flow £533m £775m

Recommended half year 16.6 15.5 7 dividend per share

CELEBRATING LIFE, EVERY DAY, EVERYWHERE

North America

Europe

Africa

Latin America

Asia Pacific

731

1,880

1,625

795

687

SPLIT

39%

28%

10%

13%

10%

North America

Europe

Africa

Latin America

Asia Pacific

770

542

198

256

196

SPLIT

33%

28%

13%

12%

14%

*Smirnoff volumes exclude RTDs, ** Impact databank for calendar year 2010

BRAND VOLUME (9-LITRE EQUIVALENT CASES) TOP MARKET (NET SALES)

JOHNNIE WALKER No.1 scotch whisky in the world** 17.8 million

Global Travel and Middle EastUnited StatesBrazilThailandMexico

CROWN ROYAL No.1 Canadian whisky in the world** 5.1 million

United StatesCanadaGlobal Travel and Middle East

J&B No.4 scotch whisky in the world** 4.6 million

SpainFranceSouth AfricaUnited StatesPortugal

BUCHANAN’S Scotch whisky 1.5 million

MexicoVenezuelaUnited StatesColombiaGlobal Travel and Middle East

WINDSOR Scotch whisky 1 million

South Korea China

BUSHMILLS Irish whiskey 0.6 million

United StatesIrelandGlobal Travel and Middle EastGreat BritainFrance

SMIRNOFF No.1 Premium spirit by volume in the world** 24.5 million

United StatesGreat BritainCanadaBrazilSouth Africa

CÎROC Ultra premium vodka 1.3 million

United States Brazil Global Travel and Middle East

KETEL ONE VODKA Super premium vodka 2.1 million

United States Canada

BAILEYS No.1 Liqueur in the world** 6.8 million

United StatesGreat BritainGermanyGlobal Travel and Middle EastCanada

CAPTAIN MORGAN No. 2 brand in the rum category in the world** 9.1 million

United StatesCanadaGreat BritainSouth AfricaGermany

JOSE CUERVO No.1 Tequila in the world** 4.6 million

United StatesCanadaGreeceSpainAustralia

TANQUERAY No.1 Imported gin in the US** 2 million

United StatesSpainCanadaGlobal Travel and Middle EastGreece

GUINNESS No.1 Stout in the world** 10.8 million

IrelandNigeriaGreat BritainUnited StatesCameroon

FOURTEEN STRATEGIC BRANDS*

(Six months ended 31 December 2011)

REGIONS (Six months ended 31 December 2011)

Performance in North America is encouraging in an economy which continues to show mixed signs of recovery. Innovation together with increased sales of premium and super premium brands, volume growth of strategic brands and selective price increases drove price/mix improvement and net sales growth of 5%. Focus on efficient growth, improved mix, price increases and overhead savings increased operating margin.

Momentum behind Smirnoff and Captain Morgan continued following the success of the new marketing campaigns for the brands, with net sales up 6% and 4% respectively. Johnnie Walker performed well following the launch of Johnnie Walker Double Black and increased marketing spend behind the brand, seeing a 19% rise in organic net sales.

Marketing spend was up by 8% behind innovation with the launch of Guinness Black Lager, Cîroc Peach and Johnnie Walker Double Black which delivered share gains for the brands. In addition, spend increased behind the multi-cultural consumer opportunity, principally behind Ketel One vodka and Buchanan’s with both brands gaining share.

In Canada price increases across core brands drove net sales, up 3%, supported by increased marketing spend of 11% focused on the strategic brands.

NORTH AMERICA

Through the structural changes we have made, Diageo Europe has created an organisation which is focused on winning with customers and consumers in Western Europe and capturing the opportunities of the faster growing markets of Russia, Eastern Europe and Turkey.

The economic environment in Western Europe, particularly Southern Europe, is reflected in the performance of this first half, where in the weaker economies of Spain, Greece and Ireland, net sales declined. However, the stronger economies of Germany and France grew net sales by double digits.

Strong performance in Russia and Eastern Europe was driven by scotch, with Johnnie Walker net sales up 22%, and White Horse up 15%. Outside scotch, growth was driven by Baileys and Captain Morgan.

In Turkey, the sales and marketing activities of Diageo’s brands are now integrated into Mey İçki.

Smirnoff delivered 8% net sales growth, driven by Great Britain and Germany. Captain Morgan grew strongly and the reserve brands portfolio performed well, particularly The Singleton, which gained significant share in a number of countries.

EUROPE

Diageo’s superior routes to market and leading brands have again driven strong net sales growth in Africa.

Our beer brands demonstrated impressive growth and our investment in capacity expansion have resulted in increased sales in formerly constrained markets of Nigeria and Uganda. We invested further behind the successful Guinness football platform and our core local brands Tusker and Harp.

The recent completion of Meta Abo Brewery in Ethiopia and the full integration of Serengeti Breweries in Tanzania demonstrate our continued commitment to strengthening our presence in the region.

Momentum in international spirits is building, with net sales up 18%. Johnnie Walker increased net sales by 32% and is spearheading the growth of premium scotch in Africa. In Nigeria, last year’s route to market improvements are driving very strong growth of Diageo’s spirits business with net sales up 95%, albeit off a low base.

AFRICA

Asia Pacific has performed strongly with strong net sales growth and share gains in emerging Asia. In the developed markets we also gained share while net sales reflected the slower economic growth. This reflects the strategy put in place two years ago: to grow scotch, which is already the largest spirits category in the region; to focus on luxury brands; and to expand sales organisations in the fastest growing markets in the region.

Diageo outperformed in the weaker markets of North Asia with share gains in scotch and vodka in both Korea and Japan. Also, in North Asia, Guinness performed strongly and net sales grew over 30%.

In Australia net sales grew by 3% and volume was up 4%, driven by Johnnie Walker and Bundaberg. Marketing spend increased by 5% with the launch of a new Bundaberg ‘Five’ campaign, Johnnie Walker television and digital campaigns and Smirnoff ‘Purity’ and ‘Nightlife Exchange Project’ activities.

Diageo’s Global Travel Asia and Middle East business saw overall net sales increase of 15%. Strong double digit net sales growth in premium and super premium brands included the launch of Johnnie Walker XR 21 and Johnnie Walker Platinum 18 year old. However, volume declined 1% as a result of price increases of Johnnie Walker Red Label and Smirnoff.

ASIA PACIFIC

Growth in Latin America and the Caribbean has been exceptional with net sales up 23%, primarily driven by scotch, but aided by double digit growth in vodka, rum and liqueurs. We increased our investment in marketing and routes to market as the consumer dynamics remain extremely attractive and we are uniquely positioned to capture opportunities in the region.

Diageo has gained share in Brazil, Venezuela, Mexico and Colombia where Johnnie Walker, Buchanan’s and Old Parr have all performed well.

In Brazil, Smirnoff net sales growth increased by 39%, due to programmes such as the Smirnoff ‘Nightlife Exchange Project’.

With a successful launch of Nuvo, and very strong growth from Captain Morgan, Mexico had strong growth from liqueurs and rum. Captain Morgan is now the fastest growing of the top 100 spirits in Mexico.

LATIN AMERICA AND THE CARIBBEAN

Diageo plc, Lakeside Drive, Park Royal, London, NW10 7HQ Tel +44 (0)20 8978 6000, www.diageo.com For more information please contact: media.comms@diageo.com

Before making any investment decision with respect to Diageo’s ordinary shares, investors are directed to Diageo’s Annual Report for the year ended 30 June 2011, including an explanation of organic measures used in the document and a section on ‘Risk Factors’ that could impact the business . The Annual Report and additional information about Diageo can be found at www.diageo.com. The reader should consult any additional disclosures Diageo may make in documents it files with the United States Securities and Exchange Commission. Diageo does not undertake to update any information herein.

Diageo is proud to produce some of the world’s leading brands across total beverage alcohol – spirits, beer and wine. Our range includes eight of the top 20 premium spirits brands worldwide and 16 of the top 100 premium spirits brands*. Effective marketing is key to driving growth in both developed and emerging markets.

We continued to invest behind our brands to support this top line growth, and in the half year ended 31 December 2011, our reinvestment rate increased by 40 basis points to 15.8% with marketing investment up 10%. The bulk of this increased investment - over 70% - was targeted at emerging markets where we see the greatest opportunities for growth.

We use a number of platforms to build our brands, ranging from above the line advertising and promotions to consumer participation and digital campaigns.

Focus in this first half encompassed these four areas:. Investment behind proven growth drivers where we see the greatest

opportunities, for example, Johnnie Walker marketing spend increased 10% with over two thirds directed towards emerging markets. The successful

mentorship and ‘Step Inside the Circuit’ programmes and strong execution of ‘Walk with Giants’ campaign continued to deliver growth, particularly across the emerging markets, where it was used to create strong local brand loyalty, notably in Brazil.

. Spend on our vodka brands increased in both the developed and emerging markets. We increased spend significantly behind Smirnoff on the ‘I Choose’ campaign and the Smirnoff ‘Nightlife Exchange Project’. In developed markets, investment in North America was again driven by Cîroc, Cîroc innovations, Smirnoff and Ketel One.

. Increased marketing investment behind our scotch brands to drive growth in emerging markets and reach the increasing number of middle class consumers. As a result, scotch volume grew 8% and net sales were up 14% in the half year ended 31 December 2011, led by double digit growth of deluxe and super deluxe scotch.

. Targeted investment in sales and marketing resources on reserve brands, which drove 25% net sales growth in half year ended 31 December 2011.

BRANDS & MARKETING

Diageo is a leading innovator, combining commercial strategy with creativity and deep consumer understanding to drive growth for the business. Our innovation pipeline allows us to access the key growth trends such as the luxury opportunity and the emerging middle class.

Our entrepreneurial and agile approach has served us well, delivering a steady stream of sustainable growth, keeping our existing brands fresh and in tune with current consumer needs and creating new to world brands where we have additional opportunities to explore.

INNOVATION

* Source: Impact Databank February 2011

Premiumising our brands through innovations: to mark The Queen’s Diamond Jubilee, John Walker & Sons produced 60 crystal decanters of ‘Diamond Jubilee Blended Scotch Whisky by John Walker & Sons’, that are being sold round the world by private appointment for £100,000.

Using innovation to drive brand relevance, broaden our offering and maintain consumer interest in developed markets: Cîroc Peach has been the most successful of the Cîroc flavour launches to date.

Innovating strategically in emerging markets to increase accessibility of our brands, build categories and leverage consumer trends: in India, we have launched Rowson’s Reserve into the growing IMFL prestige segment to capture the growing middle class consumers.

Sustaining what we have launched beyond year one: Johnnie Walker Double Black was rolled out into multiple markets and The Singleton gained significant share in a number of countries and is now the fastest growing single malt in Russia.

(Six months ended 31 December 2011)

Diageo is building momentum. The increase of 7% in the interim dividend signals our confidence. These first half results have positioned us well and they have demonstrated that Diageo has the brands, the routes to market and the people to deliver our medium term guidance*. However, we are prudent as to the consumer and economic trends we will face in 2012.

To target the growing number of middle class consumers in the faster growing markets, we have increased our penetration through:

. Activity in mergers and acquisitions, such as the integration of our business with that of Mey İçki in Turkey, the recent completion of Meta Abo Brewery acquisition in Ethiopia and the full integration of Serengeti Breweries in Tanzania.

. Increasing our investment in our brands; in the half year ended 31 December 2011, we increased marketing spend in emerging markets by 20% and we increased our investment in our sales and marketing organisations in these markets by 15%.

Our emerging market business grew net sales 18% and operating profit 23% and now accounts for almost 40% of our business. Our performance improved in our developed markets business and we delivered top line growth and operating margin expansion while marketing as a percent of net sales increased.

ENHANCING OUR PRESENCE IN THE WEALTH CREATING MARKETS

*Diageo’s medium term guidance: faster organic net sales growth (6% CAGR in the medium term); organic operating margin improvement (the first 200 bpts by year ending 2014); eps growth (double digit growth in core eps (excluding FX and execptional items)) to underpin faster dividend growth.