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DIAGEO INTERIM RESULTS HALF YEAR ENDED

31 DECEMBER 2020

28 January 2020

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DELIVERING OUR STRATEGY

Reflecting our ambition to be one of the best performing,

most trusted and respected consumer products companies in the world

Delivering through our six priorities with clear goals defined by our performance ambition

Four measures of our progress
Efficient	Value	Credibility	Engaged
growth	creation	and trust	people

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• Good morning everyone
• I am pleased to announce our financial results for the first half of fiscal 21.
• We have returned to top line growth, driven by strong sequential improvement across our regions compared to the second half of fiscal 20. This is ahead of our expectations at the start of the fiscal year.
• Our people and our business have shown incredible resilience and agility in this challenging operating environment created by Covid-19.
• Using insights and data, we have quickly pivoted to changes in consumer occasions and behaviours, and we have responded at pace to increased demand in the off-trade channel.
• Excellent commercial execution, effective marketing and accelerated innovation have driven strong performance and market share gains.
• The on-trade channel continues to be very disrupted, with bars and restaurants around the world being impacted by government restrictions.
• We are well-positioned for the re-opening of these outlets but we expect the recovery of this channel to be volatile.
• Travel Retail continues to be severely impacted by lower passenger numbers.
• Despite the current challenges, I am cautiously optimistic about the outlook for our business.
• The fundamental growth drivers for Diageo remain intact and the actions we have taken, and will continue to take, will ensure we emerge stronger.

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CONTINUING TO SUPPORT PARTNERS

AND COMMUNITIES

• Delivering support through 'Raising the Bar,' our $100 million global recovery fund

- Already reached c.30,000 outlets in 7 countries

• Providing support and training to bartenders and bar owners

• Partnering with bars and restaurants to reach consumers in safe and creative ways

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• I am proud of the support we have given to our customers and communities in response to Covid- 19.
• Last June we launched 'Raising the Bar', our $100 million commitment to support the recovery of the hospitality sector around the world.
• The fund has already benefitted over 30,000 outlets in seven countries, with ongoing rollout into additional outlets and countries over the course of the two-year programme.
• This support includes, hygiene and sanitation kits, furniture for outdoor spaces and solutions for table reservations and contactless ordering.
• Over 70% of the procurement spend funded by 'Raising the Bar' has been locally sourced in the countries where the funding was received.
• Across our brands from Crown Royal to Guinness, we have continued to raise awareness and provide support for bartenders.
• And most recently, Guinness launched a 'Keep the Lights On' campaign in Ireland, which invited consumers to embrace their local pubs and pay a visit when they re-open.
• Through our platforms such as Diageo Bar Academy, we are providing training and guidance on safe re-openings including online menus and takeaway cocktails.
• We will continue to support the on-trade through the recovery, whenever and however outlets re- open.

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POSITIVELY IMPACTING THE WORLD BY 2030

HIGHLIGHTS FROM 25 GLOBAL GOALS

	PROMOTE POSITIVE DRINKING	• Reach 1 billion people with messages
	of moderation
		• Increase representation of leaders from ethnically
		diverse backgrounds to 45%*
	CHAMPION INCLUSION & DIVERSITY	• Champion gender diversity with an ambition to
		achieve 50% representation of women in leadership
		roles by 2030*
	PIONEER GRAIN TO GLASS	• Achieve Net Zero carbon emissions across
	direct operations
	SUSTAINABILITY
	• Use 30% less water in every drink we make
*Statements on representation are a goal for Diageo and should not be considered a target	4

• It is fundamental to our performance ambition that we do business in the right way and it is embedded in our strategy.
• I am immensely proud of Diageo's sustainability and responsibility achievements to date, and aware that we have more to do.
• We are building on our track record with the launch of 'Society 2030: Spirit of Progress'.
• This is our 10-year sustainability action plan, with 25 bold and ambitious goals to help create a more inclusive and sustainable world.
• It will challenge us even further to make a positive impact over the critical decade to 2030.
• I will talk about this in more detail shortly.

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