#1ITE PARA NE INICCO DIAGEO MIN DIAGEO GREATER CHINA PRESIDENT'S CALL SAM FISCHER Caroly#2INTRODUCTION atel One ● DIAGEO Sam Fischer President of Diageo Asia Pacific and Global Travel Responsible for Global Travel business, from January 2021 2#3CHINA IS AN INCREASINGLY IMPORTANT PART OF DIAGEO PLC Diageo reported net sales by region, F15 Africa 13% Asia Pacific 20% LAC Greater China 2% Corporate* 10% F15 24% 32% North America Europe & Turkey *Corporate represents less than 1% of total Diageo NSV Source: Diageo internal data Impact from disposals and acquisitions, re-classifications and exchange may not be fully captured Diageo reported net sales by region, H1 F21 Africa 11% Asia Pacific 20% LAC Greater China 5% 9% H1 F21 DIAGEO 21% 39% Europe & Turkey North America 3#4FAST GROWING PREMIUM BUSINESSES STRONGLY POSITIONED IN GREATER CHINA BAIJIU Shui Jing Fang 1 第一坊 Shui Jing Fang FROM CHINA'S FIRST BAIJIU DISTILLERY Category size* Ⓡ $157Bn* *Source: IWSR 2019. Excludes 'low' and 'value' price bands Mainland China C茂昌眼鏡公司 得强酒店 国华美大香序 1 INTERNATIONAL SPIRITS & BEER allo Market size* MAP BETO $51Bn* DIAGEO Taiwan, HK & Macau Market size* $3.8Bn* UNDERPINNED BY STRONG TECHNICAL, INNOVATION AND ORGANISATIONAL CAPABILITIES 4#5GREATER CHINA IS THE WORLD'S LARGEST TBA¹ MARKET, $224 BILLION AND GROWING AHEAD OF GLOBAL RATES Global RSV¹ growth (%) 2015 - 2019 Excludes 'low' and 'value' price bands Global Greater China Source: IWSR 2019 1 Excludes 'low' and 'value' price bands 2 International spirits excludes imported baijiu 5% 11% Greater China category RSV¹ ($Bn) 2019 Excludes 'low' and 'value' price bands International spirits² Wine 3% Other 0% 5% Beer DIAGEO 22% 70% Baijiu 5#6GREATER CHINA MARKET CONTINUES TO PREMIUMISE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: IWSR 2019 ¹ Excludes 'low' and 'value' price bands Greater China share of TBA¹ retail sales value by price band: 2015, 2019, 2024 excludes 'low' and 'value' price bands Prestige 9% Super and Ultra Premium 14% Premium 19% Standard 58% 2015 +13 ppt Prestige 19% Super and Ultra Premium 17% Premium 18% Standard 46% 2019 +5 ppt Prestige 21% Super and Ultra Premium 20% Premium 21% Standard 39% 2024 DIAGEO 6#7ATTRACTIVE TRENDS UNDERPIN LONG-TERM MARKET GROWTH Shifts in TBA occasions 0:21 Chinese culture Health and wellbeing Urbanisation From status to discernment Digitalisation DIAGEO Col Keter TEAM label CTS 7#8BAIJIU CATEGORY IS LARGE, FAST GROWING AND PREMIUMISING Baijiu category growth projection (CY2020-2024) Baijiu (ex-Low Price/Value) Baijiu (Total) 0% Volume Source: IWSR 2019 6% Value 7% 8% Prestige & Prestige+ 25% Super & Ultra Premium 22% Premium 23% Source: IWSR 2019. Excludes 'low' and 'value' price bands Standard 31% 'Low' and 'Value' (475m 9 litre cases) DIAGEO Value CAGR Value CAGR CY15-CY19 CY20-CY24 35% 19% 11% 11% 10% 11% 10% 3% 8#9DIAGEO PLACED TO WIN WITH FAST GROWING PREMIUM AND SUPER PREMIUM SCOTCH Mainland China Whisky RSV¹ 2015, 2019, 2024 Excludes 'low' and 'value' price bands $662m 2015 Others US Whiskey Japanese Scotch Source: IWSR 2019. ¹ Excludes 'low' and 'value' price bands $903m 2019 Others US Whiskey Japanese $1.2Bn 2024 Others US Whiskey Japanese Mainland China Whisky RSV¹ growth (%) 2016 - 2019 Excludes 'low' and 'value' price bands China Whisky Scotch Blended Scotch Malts Japanese US Whiskey Others JOHNNIE WALKER. 2 Diageo internal DIAGEO Mainland China: Brand organic net sales² CAGR F16 - F19 +26% Sur Label CAGR 2016-2019 13% 6% 31% 34% 30% 78% +51% 9#10DELIVERING OUR STRATEGY FOR GREATER CHINA DISRUPT BAIJIU CATEG FIT-FOR-PURPOSE ORGANISATION To be the best performing, most trusted and respected international alcohol company in Greater China 30 DEEP CONSUMER INSIGHTS WIN WITH WHISKY INNOVATION SINGLETON SUPPLY & RTC TO MEET DEMAND SINGLETON 21 DIAGEO WIN IN TAIWAN & SCALE BEER E2E DIGITAL EXCELLENCE 10#11DIAGEO GREATER CHINA GROWTH HAS BEEN SUSTAINABLE AND IS POISED FOR A RECOVERY POST-COVID F16 Source: Diageo internal F17 Greater China organic net sales value/growth 15% CAGR F18 F19 T F20 H1 F21 DIAGEO Strong recovery in H1 F21, ahead of pre Covid-19 levels 11#12WE ARE GROWING FASTER THAN OUR PEERS WE HAVE BEEN GROWING AHEAD OF KEY COMPETITORS IN CHINA DRIVEN BY OUR SUPER DELUXE STRATEGY AND COMPETITIVE ADVANTAGE ACROSS INTERNATIONAL SPIRITS AND BAIJU Diageo China¹ growth Organic sales growth vs Key Competitor F18 Source: Diageo internal; Competitor: Press Releases ¹ Diageo China = Mainland China, Hong Kong and Macau F19 F20 DIAGEO H1 Diageo China Key Competitor F21H1 H1 12#13SHUI JING FANG HAS SHOWN STRONG GROWTH SJF HAS BEEN A GROWTH ENGINE SJF GSV RMB million 855 CY15 1,176 Source: SJF Annual Reports CY16 2,048 CY17 +19% post-COVID recovery from H2 CY19 to H2 CY20 3,539 2,819 CY18 CY19 3,006 CY20 AND HAS BEEN GAINING SHARE 2015-2019 GSV CAGR SJF Fenjiu Moutai Jiuguijiu Wuliangye Luzhoulaojiao ST Shede Shunxin Jinshiyuan Gujinggong Kouzijiao Laobaigan Yanghe Yilite Jinhui Yingjiagong ST Huangtai QQKJ Gold seed -15% Source: Company Annual Reports (2015-2019) 10% 9% 8% DIAGEO 7% 15% 19% 19% 16% 27% 23% 23% 23% 22% 30% 26% 43% 13#14SHUI JING FANG IS FOCUSED ON KEY GROWTH DRIVERS TO WIN MARKET SHARE ## 1164e MI 水井坊 CORE STORE PROGRAMME 的第一坊酒 井香品位 600 BANQUET 水井坊·井台珍藏 瑞兽呈祥 吉庆成双 1080 INNOVATION DIAGEO CORPORATE PURCHASE 14#15SCOTCH PENETRATION IS FASTER THAN COGNAC AND THERE IS SIGNIFICANT RUNWAY TO GROWTH China Usage & Attitude study¹ Whisky Cognac Whisky growing ahead of Cognac Whisky Cognac 2015 9% 9% Tmall national shopper purchase data² 2020 16% 1.3 13% Nov 2020 Growth Rates 0.6 44% 20% (16%) +7ppt +4ppt (44%) ¹ China Usage & Attitude study-2015 study conducted by Shanghai Soaring Market Research in May 2015 and 2020 study conducted by Kantar in January 2020 (past 4 weeks consumption among 21-50 year-olds drinking International Spirits, Baijiu, Wine or RTD in five major cities). 2 Tmall national purchase data: Nov 2019 to Nov 2020 Estimated³ penetration of total beverage alcohol across Greater China >50% Beer ~30% Wine ~30% Baiju ~3% International Spirits DIAGEO 3 Combined Sources including: CNRS; China Usage & Attitude Study by Kantar; Diageo Kantar BGS study; 2019 Incidence Study by Kantar; Diageo internal estimates (estimated penetration considers post one year consumption). >40% HK Whiskey >30% Taiwan Whiskey 15#16WE HAVE A PROVEN STRATEGY TO GROW OUR WHISKY BUSINESS t It 1144 DRIVE CATEGORY GROWTH Tekint J WALKED Blue Label RELATED SE WIN WITH OUR BRANDS 时光菊真意 天涯英团 尊尼获加蓝牌 世纪华章特别版 E2E DIGITAL EXCELLENCE PUTATE TELEOR Blor Labr! DIAGEO DELIVER VIBRANT EXPAND SCALE AND ROUTE TO MARKET FOOTPRINT INNOVATION 16#17WEwy Lasse - Weeddaa NL-ANDAL 20 PEL PLETELI 52 WHISKY SPACES C2 mi DIAGEO WHISKY SEMINAR 2020帝亚吉欧·东莞 威士忌研讨会 W WHISKY ACADEMY MMAN >15,000 DIAGEO WHISKY ACADEMY (DWA) GRADUATES#18-尊尼获加蓝牌- 蓝是深藏不露 蓝是待人寻味 * 40% VOL DRINKIC.COM 请勿向未成年人分享此内容 M JO WAKE Blue Label DAN SE CHENMAN HNNIE WALKER Blue Label 特尼获加蓝牌一 探索临的深度 JOHNNIE WALKER Blue Label STRONG DOUBLE-DIGIT NET SALES VALUE GROWTH OVER THE PAST 3 YEARS ~2.5 x BIGGER THAN CLOSEST COMPETITOR Blue Label 尊尼龙眼 RENDE Blue Label ·北新加蓝牌 JOHNNIE WALKER#19SINGLETON 15 SINGLETON 苏格登单一麦芽威士忌 慢品·丰·味 SINGLETON 20131093 15 SINGLETON THE SINGLETON. 15 SINGE 18 SINGLETON. 25/6/ ORD 18 THE SINGLETON IS ONE OF THE TOP THREE SINGLE MALT BRANDS Kom OFF-TOKE WEIN CAL SINGLETON. Single Malt Scotch Whisky REPE THE 38 PACK SINGLETON ingle Malt Jotch Whisk 38 标志蓝绿色 优雅质感 经典传承 点击探索更多 THE SIM 21.... SINGLETON SINGLETON back holdershards 21 BUTTON JIGGLE- LINITICLERCELERCELEBR FECTLY . SINGLETON Single Malt Scotch Whisky 苏格登单一麦芽威士忌 时光协奏系列 BALANCES 80年代超张力桶陈风味试验 首批38年桶裝原酒释出 全球限量1,689瓶 SINGLETON Single Malt Scotch Whisky 21 SUFFTON'S MISBILLERY TRINITY CAKRAWONT KARONY OR FICK#20JOHNNIE WALKER 时光有真意 天涯共团圆 尊尼获加蓝牌 世纪华章特别版 Blue Label Wher soupl tar Branimin Woch Quorn thi 12... Soral SINGLETON SINGLETON DOUBLE DIGIT CONTRIBUTION TO GROWTH FROM INNOVATION 12 SINGLETOK 15 SINGLEHN She the O SINGLETIN SINGLETON. 21 -SINGLFION an THE HE SINGLETON. Malehotch Whick DUFFTOWN 25 SINGLETON SINGLEBAN 21#21END-TO-END DIGITAL EXCELLENCE IS KEY TO SUCCESS AND WE ARE GROWING SHARE IN ECOMMERCE GEO Outlet Hierarchy 1.1.1.1. Digitalise Our Business 企业微信 289157.58 HEADLINE PERFORMANCE DASHBOARD P www. 64,160,105 BETIN 5.730.00 41 201704275 285805 141876 A TER THE BOUN Chave m AT THE WIN 5772.05 0681 SP3 22.340.015.745.37 1.300.385.91 THE Tradement by ChuC 8- JANE www.w 225 業版中心 WCY VAP VAN CYGVAPGAV % of 1% of NEVY MA KARTON SARPSE (see THELLA TRIBU ALU DA UNI JA AN HOUSTO - ***- Bay 18/15- CHY. 78.54% AZALTO 400 13.47 5.938.368.82 5.938.348.82 48 Win With Consumers 天猫 TMALL.COM JD.COM joooi 钻石会员 > DIAGEO 帝亚吉欧会员俱乐部 4957 会员积分> DWA Level 1 威士忌入门 随时、随地 在线学习专业 品鉴威士忌 WHISKY ACADEMY 88 ATLET TALISKER 我的礼券 StarLabel J SINGLETON 享4项特权> W MORTLICH -12 会员购物金> WHISKY ACADEMT Win With Our Customers 天猫 TMALL.COM DIAGEO X 21#22RTM SCALE AND EXPANSION IS KEY FOR WINNING IN WHISKY North China West China Central China East China South East China South China Population 165 40 120 12% % of IS contribution ~90% Territory expansion Expanded coverage to all 30 cities in the South • Doubled distribution in key T1 & T2 cities in the East ● DIAGEO Channel expansion • Increased # of Liquor Store 'core stores' by +40% Doubled on-trade volumes and improved margins Customer Network Development Expanded wholesaler coverage +30% with additional T2 recruitments Ongoing digitisation in programs and analytics ● 22#23DIAGEO'S ROLE IN SOCIETY PROMOTING POSITIVE DRINKING 主办,等诸界安出版公司 面料,并且百限公司 酒与社会 ALCOHOL SOCIETY 酒与社会论坛启动仪式暨首届研讨会 Alcohol & Society Forum Launch Ceremony and Seminar 2006年5月17日 中国 北京 May 17, 2006 Beijing, China Organised by Admite Office for Alcohol Crestation.MOFCOM Supported by DAGED 京东超市 EHTA DIAGEO 京东超市与帝亚吉欧合作备忘录签约仪式 Memorandum of Cooperation Signing Ceremony between JD.com and Diageo 中国·上海 Shanghai, " 020年11月 SNOVE CHAMPIONING INCLUSION & DIVERSITY DIAGEO ROUNDATION 喜核洋酒集团 帝亚吉欧与中国妇女发展基金会 权女性基漫自幼仪: 转账支票 出黎日期(大):或要茄琳 麥麵厅装检针 太網接連中央区委书 BECORATOR 委否壹佰零伍万壹仟捌佰元整 Moogle 付款人:帝亚吉欧洋酒業後 收款人:中国妇女发展基金会 10.3 DIAGEO PIONEERING GRAIN TO GLASS SUSTAINABILITY DIAGEO 帝亚吉欧 23#24CONFIDENCE IN THE FUTURE OF OUR BUSINESS Greater China is a large and attractive market with strong consumer fundamentals Diageo is uniquely positioned as the only international spirits player with presence in both super-premium baijiu and whisky A robust and proven strategy, that is delivering growth ahead of key competition Ambitious commitments to positively impact society to 2030 Confident that China will be a strong, profitable growth driver for Diageo DIAGEO 24#25DIAGEO Cautionary statement concerning forward-looking statements This presentation contains 'forward-looking' statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook, objectives and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of changes in interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or synergies, expected investments, the completion of any strategic transactions or restructuring programmes, anticipated tax rates, changes in the international tax environment, expected cash payments, outcomes of litigation or regulatory enquiries, anticipated changes in the value of assets and liabilities related to pension schemes and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including factors that are outside Diageo's control. Factors that could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: economic, political, social or other developments in countries and markets in which Diageo operates (including as a result of the Covid-19 pandemic), which may contribute to a reduction in demand for Diageo's products, adverse impacts on Diageo's customer, supplier and/or financial counterparties, or the imposition of import, investment or currency restrictions (including the potential impact of any global, regional or local trade disputes, including but not limited to any such dispute between the United States and the European Union and/or the United Kingdom) or any tariffs, duties or other restrictions or barriers imposed on the import or export of goods between territories; the impact of the Covid-19 pandemic, or other epidemics or pandemics, on Diageo's business, financial condition, cash flows and results of operation; the negotiating process surrounding, as well as the final terms of, the United Kingdom's future trading relationships with the European Union and other countries, which could lead to a sustained period of economic and political uncertainty and complexity whilst successor trading arrangements with other countries are negotiated, finalised and implemented, potentially adversely impacting economic conditions in the United Kingdom and Europe more generally as well as Diageo's business operations and financial performance; changes in consumer preferences and tastes, including as a result of changes in demographics, evolving social trends (including any shifts in consumer tastes towards small- batch craft alcohol, low or no alcohol, or other alternative products), changes in travel, holiday or leisure activity patterns, weather conditions, health concerns, pandemics and/or a downturn in economic conditions; changes in the domestic and international tax environment, including as a result of the OECD Base Erosion and Profit Shifting Initiative and EU anti-tax abuse measures, leading to uncertainty around the application of existing and new tax laws and unexpected tax exposures; the effects of climate change, or legal, regulatory or market measures intended to address climate change, on Diageo's business or operations, including on the cost and supply of water; Continued on the following page 25#26Continued from the previous page ● ● ● ● ● ● DIAGEO changes in the cost of production, including as a result of increases in the cost of commodities, labour and/or energy or as a result of inflation; any litigation or other similar proceedings (including with tax, customs, competition, environmental, anti-corruption or other regulatory authorities), including litigation directed at the beverage alcohol industry generally or at Diageo in particular; legal and regulatory developments, including changes in regulations relating to production, distribution, importation, marketing, advertising, sales, pricing, labelling, packaging, product liability, antitrust, labour, compliance and control systems, environmental issues and/or data privacy or protection; the consequences of any failure by Diageo or its associates to comply with anti-corruption, sanctions, trade restrictions or similar laws and regulations, or any failure of Diageo's related internal policies and procedures to comply with applicable law or regulation; the consequences of any failure of internal controls, including those affecting compliance with existing or new accounting and/or disclosure requirements; Diageo's ability to maintain its brand image and corporate reputation or to adapt to a changing media environment; contamination, counterfeiting or other circumstances which could harm the level of customer support for Diageo's brands and adversely impact its sales; increased competitive product and pricing pressures, including as a result of actions by increasingly consolidated competitors or increased competition from regional and local companies, that could negatively impact Diageo's market share, distribution network, costs and/or pricing; any disruption to production facilities, business service centres or information systems, including as a result of cyberattacks; increased costs for, or shortages of, talent, as well as labour strikes or disputes; Diageo's ability to derive the expected benefits from its business strategies, including in relation to expansion in emerging markets, acquisitions and/or disposals, cost savings and productivity initiatives or inventory forecasting; fluctuations in exchange rates and/or interest rates, which may impact the value of transactions and assets denominated in other currencies, increase Diageo's cost of financing or otherwise adversely affect Diageo's financial results; movements in the value of the assets and liabilities related to Diageo's pension plans; Diageo's ability to renew supply, distribution, manufacturing or licence agreements (or related rights) and licences on favourable terms, or at all, when they expire; or any failure by Diageo to protect its intellectual property rights. Continued on the following page 26#27Continued from the previous page Other Information DIAGEO 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 by the above risk factors and by the 'Risk factors' section contained in the annual report on Form 20-F for the year ended 30 June 2020 filed with the US Securities and Exchange Commission (SEC). Any forward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does not undertake to update forward-looking statements to reflect any changes in Diageo's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Diageo may make in any documents which it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. This presentation includes names of Diageo's products, which constitute trademarks or trade names which Diageo owns, or which others own and license to Diageo for use. All rights reserved. © Diageo plc 2020. 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 any other investment activities. Past performance cannot be relied upon as a guide to future performance. 27#28DIAGEO CELEBRATING LIFE, EVERY DAY, EVERYWHERE