#1DELIVERING SUSTAINABLE LONG-TERM GROWTH Cautionary statements concerning forward-looking statements and non-GAAP financial measures The following presentation contains 'forward-looking' statements. These statements can be identified by the fact that they do not relate only to historical or current facts and may generally, but not always, be identified by the use of words such as "will", "anticipates", "should", "could", "would", "targets", "aims", "may", "expects", "intends" or similar expressions or statements. In this presentation, such statements include those that express forecasts, expectations, plans, outlook, objectives and projections with respect to future matters, including information related to Diageo's fiscal 24 outlook, Diageo's medium-term guidance for fiscal 23 to 25, Diageo's supply chain agility programme, future Total Beverage Alcohol market share ambitions and any other statements relating to Diageo's performance for the year ending 30 June 2024 or thereafter. 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, which include, but are not limited to: (i) economic, political, social or other developments in countries and markets in which Diageo operates, including macroeconomic events that may affect Diageo's customers, suppliers and/or financial counterparties; (ii) the effects of climate change, or legal, regulatory or market measures intended to address climate change; (iii) changes in consumer preferences and tastes, including as a result of disruptive market forces, changes in demographics and evolving social trends (including any shifts in consumer tastes towards at-home occasions, premiumisation, small-batch craft alcohol, or lower or no alcohol products and/or developments in e-commerce); (iv) changes in the domestic and international tax environment that could lead to uncertainty around the application of existing and new tax laws and unexpected tax exposures; (v) changes in the cost of production, including as a result of increases in the cost of commodities, labour and/or energy due to inflation and/or supply chain disruptions; (vii) any litigation or other similar proceedings (including with tax, customs, competition, environmental, anti-corruption or other regulatory authorities); (vii) legal and regulatory developments, including changes in regulations relating to environmental issues and/or e-commerce; (viii) the consequences of any failure of internal controls; (ix) 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; (x) Diageo's ability to make sufficient progress against or achieve its ESG ambitions; (xi) cyber-attacks and IT threats or any other disruptions to core business operations; (xii) contamination, counterfeiting or other circumstances which could harm the level of customer support for Diageo's brands and adversely impact its sales; (xiii) Diageo's ability to maintain its brand image and corporate reputation or to adapt to a changing media environment; (xiv) fluctuations in exchange rates and/or interest rates; (xv) Diageo's ability to derive the expected benefits from its business strategies, including Diageo's investments in e-commerce and its luxury portfolio; (xvi) increased competitive product and pricing pressures, including as a result of introductions of new products or categories that are competitive with Diageo's products and consolidations by competitors and retailers; (xvii) increased costs for, or shortages of, talent, as well as labour strikes or disputes; (xviii) movements in the value of the assets and liabilities related to Diageo's pension plans; (xix) 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 (xx) any failure by Diageo to protect its intellectual property rights. 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 cautionary factors and by the factors set out under "Our principal risks and risk management" in Diageo's Annual Report and under "Risk Factors" in Diageo's Annual Report on Form 20-F for the year ended 30 June 2022 filed with the US Securities and Exchange Commission. 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. This presentation includes financial measures which are not presented in Diageo's financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted by the UK and are considered "non-GAAP financial measures" under US Securities and Exchange Commission rules. Please refer to the section "Definitions and reconciliation of non-GAAP measures to GAAP measures" set out at the end of this presentation. DIAGEO 1 | Preliminary Results Fiscal 23#2DIAGEO Delivering sustainable long-term growth Preliminary Results Fiscal 23 Debra Crew & Lavanya Chandrashekar 1 August 2023#3*****VE JB Swing W EE 15 Ivan 1959 - 2023#4DELIVERING SUSTAINABLE LONG-TERM GROWTH Our ambition is to be one of the best performing, most trusted and respected consumer products companies in the world DIAGEO 4 | Preliminary Results Fiscal 23#5DELIVERING SUSTAINABLE LONG-TERM GROWTH A strong set of results and organic NSV 4-YEAR CAGR¹ 8% DIAGEO 5 | Preliminary Results Fiscal 23 Organic volume ↓ -1% F23 results Organic operating profit 个+7% Organic net sales value growth 个+6% Free cash flow £1.8bn ↓ -£1.0bn Source: Diageo internal information 1. F19 to F23 4YR CAGR indicative, based on unrounded numbers and the impact from disposals, acquisitions and re-classifications may not be fully captured For additional information on non-GAAP measures, please see financial/legal appendix#6DELIVERING SUSTAINABLE LONG-TERM GROWTH Our advantaged portfolio of brands is fundamental to driving our business. We delivered double-digit growth from our biggest brands in our top 3 categories. DIAGEO 6 | Preliminary Results Fiscal 23 F23 organic net sales growth JOHNNIE WALKER. +15% CASAMIGOS +16% GUINNESS +16% 土 DonJulio +20% T 19 42 Source: Diageo internal information - note Casamigos +16% tequila only#7DELIVERING SUSTAINABLE LONG-TERM GROWTH Johnnie Walker, the world's #1 international spirit¹ brand, continued to grow double-digit DIAGEO 7 | Preliminary Results Fiscal 23 Walkerad JOHNNIE WALKER Blue Label TLEN AADREZ BE DOWS MED SCOT ant be bot 19 9800 JOHNNIE WALKER BLONDE HOTELSKY BEGAT TEE 1020 wit , JOHNNIE WALKER BLACK LABEL Cended Fontch Whisky 1. 2022 Retail Sales Value - IWSR 2022#8DELIVERING SUSTAINABLE LONG-TERM GROWTH Diageo is #1 in global tequila¹ and is well positioned to take tequila around the world DIAGEO 8 | Preliminary Results Fiscal 23 DIE DonJulio 1942. TEQUIT TEQUILA ANA 1.75 Le alc.38% vol 19 42 TERRIER ATTERR DonJuli ULTIM RESERV TEQUILA ESTRA R 40% 750 DonJulio PRIMAVERA TEQUILA REPOSAD Jaden Sungly 40% alc/vol 750m 1942 TEQUILA onJuli 942 QUILA ARE 40% ALOVOL 750 TEQU 19 42 DonJuli TEQUILA ANE. ATATONILCO E acra As DonJulio 40% 50 TEQUILA REPOSADO DonJul 40% TEQUILA BLANC The 107H BITION ANHERSARY 60% TEQUILA 70 DonJulio 70 TERESA & ANE 10 TOONATAY cal Artesanal 100% Agave DENOMINACION DE ORIG 00-20-MM CATEGORIA lezcal Artesanal Oax ORGONA 100% Agave Espadin CLAS PRODUCTOS CASAMIGOS 20-10-201 Reposad Jov CLASE HECHO Tequila 100% Jalisco Agave Azul NUMERO 22 CASAMIG MEZCA Тому кантно (moon) CASAMIGOS Tequila EXCLUSIVO 40% VOL PRODUCT OF MEXICO equila 100% de Agave Para Jaye (Very PRODUCTOS CASAMIC CO-RO-MM Añe CATEGORIA PRODUCTOS CASAHMIGOS DE AGAVE CLASE HECHO GC-RG-LIM Blanco Tequila 100% Jal: OTOMA HECHO ave Azul Tequila 100% Jalisco, Mexico Agave Azul NUMERO 25026 CASAMIC Tequil EXCLUSIVO Tequila 100% de Agave CARE (IPROOF) CASAMIGOS Tequila Jang Clay Red Aler (SOPROOF) 1. 2022 Retail Sales Value - IWSR 2022#9DELIVERING SUSTAINABLE LONG-TERM GROWTH A momentous year for Guinness DIAGEO 9 | Preliminary Results Fiscal 23 GUINNESS ATTACH DEVICE OVER OPEN 55/1053 NITROSURGE DRAUGHT GUINNESS™ GUINNESS SMOOTH GUINNESS SMOOTH STOUT-S Transitive S OTH SNESS IS OOTH GUINNESS -0.0- GUINNESS DRAUGHT -0.0 INNESS#10DELIVERING SUSTAINABLE LONG-TERM GROWTH Resilience and opportunity from our diversified footprint DIAGEO 10 North America +0% F23 full year organic net sales growth by region Latin America and Caribbean +9% | Preliminary Results Fiscal 23 * Europe +11% Africa +5% Asia Pacific +13% Source: Diageo internal information The above map is intended to illustrate general geographic regions where Diageo has a presence and/or in which its products are sold. It is not intended to imply that Diageo has a presence in and/or that its products are sold in every country or territory within a geographic region.#11DELIVERING SUSTAINABLE LONG-TERM GROWTH Delivered quality market share gains in fiscal 23 and going forward expect consistent gains from key markets DIAGEO 11 | Preliminary Results Fiscal 23 Percentage of Diageo total net sales value gaining/holding share in measured markets 70%+ gaining/holding share Source: Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISCAM, NABCA, Scentia, State Monopolies, TRAC, IPSOS and other third-party providers. All analysis of data has been applied with a tolerance of +/-3 bps. Percentages represent percent of markets by total Diageo net sales contribution that have held or gained total trade share fiscal year to date. Measured markets indicate a market where we have purchased any market share data. Market share data may include beer, wine, spirits or other elements. Measured market net sales value sums to 87% of total Diageo net sales value in fiscal 23.#12DELIVERING SUSTAINABLE LONG-TERM GROWTH % TBA share US spirits consumer resilient and continues to premiumise 50 45 40 35 30 25 20 2012 DIAGEO 12 Spirits taking share of US TBA US TBA +4% 10yr CAGR 2014 2016 | Preliminary Results Fiscal 23 2018 2020 Beer/malt Spirits +6% 10yr CAGR Wine 2022 Source: IWSR, 2012-2022 Super-Premium Plus: +11% 4yr CAGR in US POPULAR PREMIUM 15% 2023 2022 20 19 32% 32% 17% 21% 36% 4% 4% 2% 12% 16% 29% 31% 17% 32% LUXURY ULTRA PREMIUM SUPER PREMIUM Source: US, Nielsen & NABCA through 7/1/2023 5/31/2023#13DELIVERING SUSTAINABLE LONG-TERM GROWTH Diageo US distributor inventory levels at historical levels m June 18 Dec 18 DIAGEO 13 | Preliminary Results Fiscal 23 Diageo US Spirits Distributor Historical DSI¹ June 19 Dec 19 June 20 Dec 20 June 21 - Dec 21 June 22 Dec 22 June 23 } Historical range Source: Diageo internal information 1. DSI: Days Sales of Inventory#14DELIVERING SUSTAINABLE LONG-TERM GROWTH Opportunity for Diageo to re-gain share competitiveness in the US DIAGEO 14 | Preliminary Results Fiscal 23 26 F21 Diageo US TBA Share change (bps) 24 F22 -1 F23 Source: Nielsen 1st July 2022 - 17th June 2023, NABCA 1st July 2022 - 31st May 2023#15DELIVERING SUSTAINABLE LONG-TERM GROWTH Near-term opportunities - Innovation DIAGEO 1942 ********** R DonJulio ROSADO TEQUILA AVE KATI IN OR FORWAR J 40% alc/vol. 750 ml. 15 Preliminary Results Fiscal 23 Speed & agility PRODUCTOS CASAMIGOS DE AGAVE GO-RG-MM equila 100% Agave Azul AEGONA CASAMIGOS Cristalino Joy Clay CLASE Reposado HECHO Jalisco, Mexico NUMERO 22064 EXCLUSIVO PROOF Rank Aren#16DELIVERING SUSTAINABLE LONG-TERM GROWTH Near-term opportunities - Global brand building DIAGEO Walkerada JOHNNIE WALKER Blue Label BOTTLE Nº AA OIREE BB ************* blondament be beat Scotch 16 Preliminary Results Fiscal 23 Tequila 100% de Agave PRODUCTOS CASAMIGOS DE AGAVE CLASE Blanco HECHO CATEGORIA Tequila 100% Jalisco, Mexico Agave Azul NUMERO 23026 CASAMIGOS Tequila Joy Clay CONNA SUPLIT 1942 DonJulio AN TEQUILA BLANCO Tequila Speed & agility GUINNESS GUINNESS Guinness#17DELIVERING SUSTAINABLE LONG-TERM GROWTH Productivity initiatives delivered £450m of cost savings in F23 Critical to fueling investment to deliver our medium- term guidance DIAGEO 17 Preliminary Results Fiscal 23#18DELIVERING SUSTAINABLE LONG-TERM GROWTH Strong F23 performance across key financial metrics DIAGEO 18 Preliminary Results Fiscal 23 Efficient growth Organic net sales value growth 个+6.5% Free cash flow £1.8bn ↓-£1.0bn Organic operating margin expansion ↑+15bps Pre-exceptional eps 163.5p 个+7.6% Value creation Return on invested capital 16.3% ↓-50bps Total shareholder return¹ 9% -10 yr -2% - 1 yr Source: Diageo internal information For additional information on non-GAAP measures please see financial/legal appendix 1. Source: FactSet, in the year ended 30 June 2023. For further information please see financial/legal appendix#19DELIVERING SUSTAINABLE LONG-TERM GROWTH Our profitable growth algorithm delivers quality long-term growth 1. Driving top-line growth 2. Improving price/mix 3. Driving productivity 4. Increasing A&P DIAGEO 19 | Preliminary Results Fiscal 23 Increasing A&P £2.8bn ↑+£0.2bn +5.6% Driving top-line growth Organic net sales value growth 个+6.5% Driving productivity ~£450m cost savings Improving price/mix contributing 7.3ppts to top-line growth with mid to high-single digit price contribution Source: Diageo internal information#20DELIVERING SUSTAINABLE LONG-TERM GROWTH Our advantaged portfolio in fast-growing categories is driving top-line growth F23 Organic net sales growth of key categories¹ 12% Scotch 19% Tequila 9% Beer DIAGEO 20 | Preliminary Results Fiscal 23 5% Gin 1% Other whisk(e)y Chinese white spirits -14% Scotch Tequila Beer F19 F23 CAGR³ Gin Other whisk(e)y² Chinese white spirits Total Diageo Net sales 8% 43% 5% 8% 4% 7% 8% Volume 4% 32% -1% 5% 2% 6% 2% Source: Diageo internal information 1. Growth rates reflected are year-on-year 2. Other whisk(e)y comprises all whisk(e)y categories except for scotch. 3. F19 to F23 4YR CAGR indicative, based on rounded numbers apart from Other Whisk(e)y. The impact from disposals, acquisitions and re-classifications may not be fully captured#21DELIVERING SUSTAINABLE LONG-TERM GROWTH Our premium-plus price tier has grown 7 percentage points since F19 F19-F23 Net sales CAGR³ F19-F23 volume CAGR³ F23 Organic net sales growth vs F22 by price tier 4% Value 3% 0% 9% Standard 7% 3% DIAGEO 21 | Preliminary Results Fiscal 23 5% Premium 6% 3% 7% 6% Super Total premium+ Diageo 17% 11% 8% 2% Reported net sales by price tier, F19 - F23² Super premium+, 18% Premium, 38% Standard, 32% Value, 12% F19 +7 ppt Super premium+, 27% Premium, 36% Standard, 29% Value, 8% F23 Source: Diageo internal information 1. Growth rates reflected are year-on-year. Super premium+ represents super premium, ultra premium and luxury segments 2. Selected brands have been reclassified across price tiers consistent with Diageo's process of continuously reviewing and monitoring metrics of price segmentation. 3. F19 to F23 4YR CAGR indicative, and the impact from disposals, acquisitions and re-classifications may not be fully captured#22DELIVERING SUSTAINABLE LONG-TERM GROWTH Our diversified global footprint is delivering strong top-line growth DIAGEO F23 VS F22 F19-F23 net sales CAGR² F19-F23 volume CAGR² 22 0% North America 9% 2% | Preliminary Results Fiscal 23 11% Europe Organic net sales growth by region 7% 13% Asia Pacific 9% Latin America and Caribbean 6% 15% 3% 1% 4% Diageo F23 net sales are 35% higher than F19¹ 5% Africa 8% 2% 6% Total Diageo 8% 2% Source: Diageo internal information 1. For further detail on F23 growth compared to F19 on a constant basis please see financial/legal appendix 2. F19 to F23 4YR CAGR indicative, and the impact from disposals, acquisitions and re-classifications may not be fully captured#23DELIVERING SUSTAINABLE LONG-TERM GROWTH Revenue growth management is driving balanced top-line growth and share gains in key categories Global | Malts APAC | Scotch USA | Tequila Mexico | Tequila Europe | Johnnie Walker DIAGEO 23 | Preliminary Results Fiscal 23 3 3 Volume (ppts) 9 14 9 13 18 6 12 Price/Mix (ppts) 15 16 12 11 26 29 Share¹ (bps) +87 +139 +121 +65 +239 Source: Diageo internal information 1. Source: Internal estimates incorporating AC Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, Intage, IRI, ISCAM, NABCA, Scentia, State Monopolies, TRAC, IPSOS and other third-party providers For additional information, please see financial/legal appendix#24DELIVERING SUSTAINABLE LONG-TERM GROWTH Productivity initiatives delivered around £450m during fiscal 23 Procurement Tanqueray DIAGEO 24 | Preliminary Results Fiscal 23 TAWW ME 204 Tanqueray LONDON DRY GIN AZSE Product KR GUINNESS СПИИЕ?? Logistics COGS productivity Manufacturing D LABEL VE GOLD RESERVE Handed Finish Whisky Marketing effectiveness . 67.5% - A T T 17. 4E44 2 T Overhead efficiencies D Source: Diageo internal information#25DELIVERING SUSTAINABLE LONG-TERM GROWTH Resilience in organic operating margin despite increased cost inflation DIAGEO 30.7% F22 25 | Preliminary Results Fiscal 23 Movement in organic operating margin +15bps -97bps Gross margin 14bps Marketing 98 bps Other operating items 30.9% F23 Source: Diageo internal information#26DELIVERING SUSTAINABLE LONG-TERM GROWTH Free cash flow generation impacted primarily by creditors within working capital 2,783 F22 122 Exchange (1) 384 Operating profit (2) DIAGEO 26 Preliminary Results Fiscal 23 (779) WC Movement in free cash flow £m (217) Maturing stock (87) Capex (252) Tax (226) Interest 72 Other (3) 1,800 F23 Source: Diageo internal information 1. Exchange on operating profit before exceptional items 2. Operating profit excluding exchange, depreciation and amortisation, post employment charges and non-cash items but including operating exceptional items 3. Other items include dividends received from associate and joint ventures, post employment payments and movements in loans and other investments#27DELIVERING SUSTAINABLE LONG-TERM GROWTH Translation driving positive impact from foreign exchange DIAGEO 27 | Preliminary Results Fiscal 23 Net sales £m 702 Operating profit¹ £m 122 Translation Transaction Source: Diageo internal information 1. Operating profit excluding exceptional items#28DELIVERING SUSTAINABLE LONG-TERM GROWTH Diageo, starting F24, will change its functional and presentation currency from GBP to USD ● ● Change in functional currency took effect 1 July, 2023 No change to UK listing Three years re-presented historical financials to be made available prior to F24 Interim Results DIAGEO 28 | Preliminary Results Fiscal 23 F23 Reported Operating Profit by Geography¹ % Europe and Turkey O North America Africa Latin America Asia Pacific Source: Diageo internal information 1. Geographic operating profit excludes corporate overhead.#29DELIVERING SUSTAINABLE LONG-TERM GROWTH Strong balance sheet drives resilience in our business DIAGEO Closing net debt¹ Average Net Debt¹ Net interest charge Net other finance charges Net Finance Charges Effective interest rate Adjusted² Net Debt¹ / Adjusted³ EBITDA 29 | Preliminary Results Fiscal 23 £m £m £m £m £m % X F23 (15,541) (15,244) (595) 1 (594) 3.9 2.6 F22 (14,137) (12,692) (353) (69) (422) 2.7 2.5 Movement (1,404) (2,552) (242) 70 (172) 1.2 0.1 Source: Diageo internal information 1. Net debt is equivalent to net borrowings 2. Adjusted to include net debt and post employment plan benefit liabilities 3. Earnings before exceptional operating items, interest, tax, depreciation, amortisation and impairment For additional information on non-GAAP measures please see financial/legal appendix#30DELIVERING SUSTAINABLE LONG-TERM GROWTH Consistent and disciplined approach to capital allocation DIAGEO Leverage ratio policy Adjusted net debt¹ to adjusted EBITDA: 2.5x - 3.0x Organic growth 30 Preliminary Results Fiscal 23 Dividends 1.8x to 2.2x dividend cover M&A and portfolio management Return excess cash to shareholders Source: Diageo internal information 1. Net debt is equivalent to net borrowings. Adjusted net debt includes net debt and post employment plan benefit liabilities#31DELIVERING SUSTAINABLE LONG-TERM GROWTH Strong growth in eps driven primarily by organic operating profit 151.9 F22 eps before exceptional items 13.8 Organic operating profit Movement in earnings per share before exceptional items pence (1.7) Acquisition and disposal¹ DIAGEO 31 | Preliminary Results Fiscal 23 0.9 Hyper inflation adjustment 2.3 Fair value remeasurement 5.3 Foreign exchange on operating profit (2.0) Associates and joint ventures (4.3) Tax² (5.5) Net finance charges³ 0.8 2.0 Non- Share controlling buyback¹ interests 163.5 F23 eps before exceptional items Source: Diageo internal information 1. Includes finance charges net of tax 2. Excludes tax related to acquisitions, disposals and share buybacks 3. Excludes finance charges related to acquisitions, disposals, share buybacks and includes finance charges related to hyperinflation adjustments#32DELIVERING SUSTAINABLE LONG-TERM GROWTH Well positioned for the long-term DIAGEO 32 | Preliminary Results Fiscal 23 Encouraged by the strong performance we delivered for the full year in F23 F23-F25 medium-term guidance: Organic net sales growth of 5% to 7% Organic operating profit growth of 6% to 9%#33DELIVERING SUSTAINABLE LONG-TERM GROWTH On track to deliver bold 2030 ambition 2 DIAGEO 50% increase in Diageo's TBA market share by 2030 33 Preliminary Results Fiscal 23 6.0%. 2030 4.7% 2022 4.0% 2020 Source: IWSR CY 2022, Diageo's Retail Sales Value (RSV) % Share of TBA Market#34DELIVERING SUSTAINABLE LONG-TERM GROWTH Well positioned for the long term DIAGEO Sustain quality growth Promote positive drinking Pioneer OUR AMBITION To be one of the best performing, most trusted and respected consumer products companies in the world. Champion Embed everyday efficiency inclusion and diversity grain-to-glass 34 Preliminary Results Fiscal 23 sustainability Invest smartly TBA remains an attractive, growing and resilient market Spirits continue to gain share Premiumisation is continuing • Consumer remains resilient Diversified footprint and advantaged footprint ● ● ● Our core capabilities provide a competitive advantage TBA denotes Total Beverage Alcohol#35Drink responsibly. DRINKIQ.com DIAGEO Celebrating life, every day, everywhere JOHNNIE WALKER. GUINNESS Tanqueray BAILEYS SMIRNOFF Captain Morgan 88#36DELIVERING SUSTAINABLE LONG-TERM GROWTH APPENDIX: Increase in operating profit(¹) driven by organic growth DIAGEO Prior period operating profit before exceptional items¹ Exchange rate movements Fair value remeasurement & other Acquisitions & disposals Organic growth Current period operating profit before exceptional items¹ 36 | Preliminary Results Fiscal 23 F23 £m 4,797 122 75 (61) 321 5,254 F22 £m 3,746 (32) 104 (16) 995 4,797 Reported operating margin² 31.0% (58)Bps 23bps (15)bps 15bps 30.7% Source: Diageo internal information 1. Reported operating profit before exceptional items 2. Reported operating margin before exceptional items#37DELIVERING SUSTAINABLE LONG-TERM GROWTH Financial/legal appendix: Definitions and reconciliation of non-GAAP measures to GAAP measures Diageo's strategic planning process is based on certain non-GAAP measures, including organic movements. These non-GAAP measures are chosen for planning and reporting, and some of them are used for incentive purposes. The group's management believes these measures provide valuable additional information for users of the financial statements in understanding the group's performance. These non-GAAP measures should be viewed as complementary to, and not replacements for, the comparable GAAP measures and reported movements therein. It is not possible to reconcile the forecast tax rate before exceptional items to the most comparable GAAP measure as it is not possible to predict, without unreasonable effort, with reasonable certainty, the future impact of changes in exchange rates, acquisitions and disposals and potential exceptional items. Volume Volume is a performance indicator that is measured on an equivalent units basis to nine-litre cases of spirits. An equivalent unit represents one nine-litre case of spirits, which is approximately 272 servings. A serving comprises 33ml of spirits, 165ml of wine, or 330ml of ready to drink or beer. Therefore, to convert volume of products other than spirits to equivalent units, the following guide has been used: beer in hectolitres, divide by 0.9; wine in nine-litre cases, divide by five; ready to drink and certain pre- mixed products that are classified as ready to drink in nine-litre cases, divide by ten. Organic movements Organic information is presented using pounds sterling amounts on a constant currency basis excluding the impact of exceptional items, certain fair value remeasurements, hyperinflation adjustments and acquisitions and disposals. Organic measures enable users to focus on the performance of the business which is common to both years and which represents those measures that local managers are most directly able to influence. Calculation of organic movements An explanation of non-GAAP measures, including organic movements, is set out on page 76 of Diageo's Annual Report for the year ended 30 June 2022. DIAGEO 37 Preliminary Results Fiscal 23 Continued on the following page#38DELIVERING SUSTAINABLE LONG-TERM GROWTH Continued from the previous page (a) Exchange rates 'Exchange' in the organic movement calculation reflects the adjustment to recalculate the reported results as if they had been generated at the prior period weighted average exchange rates. Exchange impacts in respect of the external hedging of intergroup sales by the markets in a currency other than their functional currency and the intergroup recharging of services are also translated at prior period weighted average exchange rates and are allocated to the geographical segment to which they relate. Residual exchange impacts are reported as part of the Corporate segment. Results from hyperinflationary economies are translated at respective years' actual rates. (b) Acquisitions and disposals the prior period, post For acquisitions in the current period, the post acquisition results are excluded from the organic movement calculations. For acquisitions acquisition results are included in full in the prior period but are included in the organic movement calculation from the anniversary of the acquisition date in the current period. The acquisition row also eliminates the impact of transaction costs that have been charged to operating profit in the current or prior period in respect of acquisitions that, in management's judgement, are expected to be completed. Where a business, brand, brand distribution right or agency agreement was disposed of, or terminated, in the reporting period, the group, in the organic movement calculations, excludes the results for that business from the current and prior period. In the calculation of operating profit, the overheads included in disposals are only those directly attributable to the businesses disposed of, and do not result from subjective judgements of management. (c) Exceptional items Exceptional items are those that in management's judgement need to be disclosed separately. Such items are included within the income statement caption to which they relate and are excluded from the organic movement calculations. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating items further helps investors to understand the performance of the group. Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year. Exceptional operating items are those that are considered to be material and unusual or non-recurring in nature and are part of the operating activities of the group, such as one-off global restructuring programmes which can be multi-year, impairment of intangible assets and fixed assets, indirect tax settlements, property disposals and changes in post- employment plans. DIAGEO 38 Preliminary Results Fiscal 23 Continued on the following page#39DELIVERING SUSTAINABLE LONG-TERM GROWTH Continued from the previous page Gains and losses on the sale or directly attributable to a prospective sale of businesses, brands or distribution rights, step up gains and losses that arise when an investment becomes an associate or an associate becomes a subsidiary and other material, unusual non-recurring items, that are not in respect of the production, marketing and distribution of premium drinks, are disclosed as exceptional non-operating items below operating profit in the income statement. Exceptional current and deferred tax items comprise material unusual non-recurring items that impact taxation. Examples include direct tax provisions and settlements in respect of prior years and the remeasurement of deferred tax assets and liabilities following tax rate changes. (d) Fair value remeasurement Fair value remeasurement in the organic movement calculation reflects an adjustment to eliminate the impact of fair value changes in biological assets, earn-out arrangements that are accounted for as remuneration and fair value changes relating to contingent consideration liabilities and equity options that arose on acquisitions recognised in the income statement. DIAGEO 39 Preliminary Results Fiscal 23 Continued on the following page#40DELIVERING SUSTAINABLE LONG-TERM GROWTH Continued from the previous page Shareholder value metrics Dividends: Diageo internal information. Return of Capital (RoC): Diageo internal information. • TSR: FactSet as of 30 June 2023. TSR based on time periods of 1 year, annualised 5 years and annualised 10 years up to 30 June 2023. TSR based on trading currency. ● Market share approach All analysis of data has been applied with a tolerance of +/- 3 bps Percentages represent % of markets by total Diageo net sales contribution who have held or gained total trade share fiscal year to date. Measured markets indicate a market where we have purchased any market share data. Effective fiscal 23 market share now reflects total on and off trade and data may include beer, wine, spirits or other elements. Measured market net sales value sums to 87% of total Diageo net sales value in the full year of fiscal 23. ● DIAGEO 40 Preliminary Results Fiscal 23