#1DIAGEO INDIA United Spirits Limited Registered Office: 'UB Tower' #24, Vittal Mallya Road, Bengaluru-560 001 Tel: +91 80 4544 8000 Fax: +91 80 3985 6862 www.diageoindia.com 28th October 2021 BSE Limited Listing Department Dalal Street, Mumbai 400 001 Scrip Code: 532432 National Stock Exchange of India Limited Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra East, Mumbai- 400051 Scrip Code: MCDOWELL-N Dear Sirs, Sub: Investor presentation Further to our intimation dated 26th October 2021 regarding investor meet, enclosed herewith copy of the presentation on strategy refresh to be used in the meeting. This is for your information & records. Thank you, For United Spirits Limited MITAL ARVIND SANGHVI Mital Sanghvi Digitally signed by MITAL ARVIND SANGHVI Date: 2021.10.28 11:13:51+05'30' Company Secretary Encl: as Above HE SINGLETON. JOHNNIE WALKER. BLACK DOG Black & White VAT 69. Antiquity Signature ROYAL McDowell's Director's Special CHALLENGE CIROC BAGPIPER SMIRNOFF Corporate Identity Number: L01551 KA1999PLC024991 [email protected]#2Signature My Shite MY Signature UFTED FROM NATURE Signature CRAFTED FROM NATURE S MY Signature Syste Sylition Jouse Marti ///// CRAFTED FROM NATURE MY Signature SMOOTH & CREAMY Syrative DRINK RESPONSIBLY CRAFTER FROM RE MY Sigh re USL STRATEGY REFRESH INVESTOR PRESENTATION, OCTOBER 28TH, 2021 THIS IS MY Signature WHAT'S YOURS? MYSIGNATURESIP#3WHERE WE ARE TODAY.. Transformation & setting Profitable Growth runway for the future Transformed reputation Total NSV 2.8% CAGR P&A NSV 6.4% CAGR DIAGEO Big shifts in talent & culture EBITDA % 16.6% 14.3% 12.5% 11.4% 9.7% 6.0% 11.6% F15 F16 F17 F18 F19 F20 F21 F15 F16 F17 F18 F19 F20 F21 F15 F16 F17 F18 F19 F20 F21 5320 Cr >90% 443 Cr Debt Reduction FY 2015 Q2 FY22 WELL PLACED TO SHIFT GEAR... 2#4...TOWARDS A NEW MISSION DIAGEO Top performing CPG company in India delivering sustained double-digit, profitable topline growth & long-term value to all our Stakeholders 3#5TAPPING INTO TRANSFORMATIONAL CONSUMER & CATEGORY ENERGIES TO FUEL OUR MISSION DIAGEO 4#6India's Household Population RISING AFFLUENCE providing breakout opportunity at the top DIAGEO Printed from THE TIMES OF INDIA India set to have third-largest number of high-income households globally by 2030: McKinsey TNN Sep 9, 2021, 0913 PM IST 2021 2024: (GDP- INR 250 tn) (GDP-INR 340 tn) 316m Annual HH income 296m 12m(4%) > INR 28L High 9m(3%) 85m (26%) INR 4.8 - 28L Upper Mid 68m (23%) 85m (29%) 95m (29%) INR 2.4-4.8L Lower Mid <INR 2.4L Low 125m 134m (45%) (39%) 2021 2024 Source: WEF/Future of Consumption, India report, PRICE projections based on ICE 360 degree surveys (2014, 16, 18) Aspiring Middle/ Mainstream Affluent (in INR) * Consumer Prices Diageo India portfolio >2000 800-2000 400-800 <400 Popular Prestige Premium Luxury VAT 69 SMIRNOFF Sudar OLD TAVERN WHITE MISCHIE LLF BAND GIN 5#7Big consumer shifts post-Covid Community, Sustainability Changed Work, Socializing Phy-gital Living Premiumization Semi-essential Moderation and 'drinking better' Global & Local Pride Experiential, Repertoire DIAGEO 9#8Emerging Consumer Cohorts Dominant & emerging cohorts Emerging, fast growing Dominant Affluent / HNI LDA-30 youth Women Boom Towns 30yrs + Adult Male SEC BC Middle India DIAGEO 7#9Our new Mission DIAGEO Top performing CPG company in India delivering sustained double-digit, profitable topline growth & long-term value to all our Stakeholders Portfolio Re-shape Organization of the Future Diageo in Society 00 8#10JOHNNIE WALKER. BLACK LABEL Blended Scotch Whisky [12] Pillar 1: Portfolio Re-shape Breakout growth on P&A Portfolio Re-shape New growth engines Value Chain efficiency extraction DIAGEO 9#11Pillar 1 : Portfolio Re-shape 1 Breakout growth on P&A Accelerate in Luxury / Premium Scotch Global Portfolio Sed Label. Embed our Scotch leadership Step up focus on global portfolio for consumer repertoire Black&White The Journal of Sharing Chef thatin Blumenthed DIAGEO 14 WO MORE POL 600 AMERICAN PRIDE AMERICAN PRIDE RVATURE Signature fouce flashin 2 Signature New positioning of Nature & Craft Strengthen Play in Upper Prestige RC American Pride Unique offering with Bourbon, Scotch and select Indian malts & grain spirits CRAFTED FROM NATURE MY Signature 3 Reshape Value Proposition in Lower & Mid Prestige Invest & Premiumize No 1 Restage RCW to drive recruitment McDowell's McDowell's NO ORIGINAL SPOT ON 10#12ROYAL CHALLENGE AMERICAN PRIDE EST 1886 ROYAL CHALLENGE AMERICAN PRIDE ROYAL CHALLENGE AMERICAN PRIDE SIGNATURE AYUSHMAN 40 SEC 26 08 21 Signatu Signatur Sighton Signature SED SIGNATURE Signature RARE RARE KGED WISKY BEEP & RICH DEEP RE DIAGEO Sightin Signature PREMIER GRAIN MY SIGNATURE Signature PREMIER SHOOTH CREAMY 11#13THE NEW NOT BETTER BALANCED NO Dowells THE NEW NO Dowell's BETTER BALANCED BETTER BALANCED BETTER BALANCED GREAT AROMA & FEEL GREAT ARONA & FEEL McDowel GREAT AROMA& FEEL THE NEW Nor THE NEW N BETTER BALANCED GREAT AROMA & FEEL ΝΟΙ THE ALL NEW Nº1 McDowell's No1 SODA THE ALL NEW MCDOWELL'S NOT YOU ALREADY LOVE BECKS HERE'S TO GREAT TASTE JOHNNIE WALKE AMCOG Supported by Retail Transformation BLACK DOG#14Pillar 1: Portfolio Re-shape New growth engines 1 2 Transformational Innovation Sharp focus on the most profitable & fast growing consumer cohorts Emerging Opportunity Spaces & Fast growing segments Indian Craft - Epitome Reserve: India's first 100% Rice Grain whisky Winning Liquids made in India Innovation as material contributor of growth EPITOME RESERVE Premium Beer - seed Guinness Watch this space!! SINGLE GRAIN WHISKY DIAGEO GUINNESS 13#15Pillar 1: Portfolio Re-shape Value Chain efficiency extraction 1 Net Revenue Pricing, Mix and Trade spends Management DIAGEO 2 Productivity Continue to build robust productivity pipeline for year-on-year delivery 3 Invest smartly For Growth & Efficiency 14#16Pillar 2 : Organization of the Future DIAGEO Tanqueray Organization of the Future Digital Acceleration Talent & Culture as growth drivers Speed & Simplicity 15#17Pillar 2: Organization of the Future Digital Acceleration 1 Consumer & Customer OCIAL G.O.A.T. Catalyst EDGE EVERY DAY GREAT EXECUTION 2 3 DIAGEO Supply Chain Transformation Supply 2.0 INDUSTRY 4.0 AUTOMATION Technology for Impact Cutting edge technology in areas of maximum impact Amber Chief Engagement Officer USER INTERFACE FLEXIBILITY BIG DATA 16#18Pillar 2 : Organization of the Future Talent & Culture as growth drivers 1 Strong leadership bench 2 Purpose driving Performance 3 DIAGEO Building capabilities for the Future#19Pillar 2 : Organization of the Future Speed & Simplicity 1 Op Model & Ways of Working reset for Speed Embed "Sprints" 2 Simplification DIAGEO #RadicalLiberation 18#20MASTER BLENDER'S Signature MASTER BLENDER'S SIGNATURE WHISKY M BLE MASTER BLENDER'S Signature PREMIER GRAIN WHISKY Pillar 3: Diageo in Society DIAGEO RAFTE Diageo in Society Driving ESG from 'Grain to Glass' MASTER BLENDER'S Signature PREMIER GRAIN WHISKY SMOOTH & CREAMY Blended with 10 Imported Scotches, Aged Indian Malts and Fine Grain Spirits CRAFTED BY Soucellaction. SELECTION SMOOTH & CREAMY Silky Honey Tones for a Smooth Finish Blended with 10 imported Scotches, Aged Indian Malts & Fine Grain Spirits CRAFTED BY Jouise Martin RESERVE SELECTION Moving India towards 'Drink Better, not More' Leading Inclusion & Diversity 19#21Pillar 3: Diageo in Society Driving ESG from 'Grain to Glass' SOCIETY SPIRIT O OF 2030 PROGRESS DIAGEO Pioneer 'Grain to Glass' sustainability RESERVE W ACCELERATE TO WATER LOW CAR A ON WORLD BECOME SUSTAINABLE BY DESIGN Market leading practices towards Employees, Supply chain & Local communities Exemplary Governance & Disclosures FOR LIFE 20#22PRESERVE Pioneer 'Grain to Glass' sustainability WATER 55% water usage reduction since 2007 40% further reduction by 2030 FOR LIFE Water Positive by 2026 ACCELERATE TO A Market leading practices Citizenship during Covid Sanitizers, medical equipment, public health infrastructure, Raise The Bar CARBON LOW CAR WORLD 95% reduction in carbon emission*, 100% renewable Energy in Own Operations Net ZERO carbon operations by 2025* SUSTAINABLE BECOME S BY DESIGN Elimination of 2k MT from Packaging & Collection of 20k MT of plastic waste Plastic Waste Positive by end of F22 Human Rights Impact Assessment Brand Promoter Standards Employee Wellness Policy Covering 8 dimensions of Wellness WeCare Studio Your wellbeing matters! 26 weeks Paternity Leave Policy *Scope 1 & scope 2 21 24#23Pillar 3: Diageo in Society Moving India towards 'Drink Better, not More' Moderation DIAGEO Tackling Harmful Drinking Responsible Marketing Shaping drinking attitudes by championing Moderation Multi-year scale programs on Drink Driving & Underage Drinking Diageo Marketing Code & Digital Code as minimum mandatory standards 22 22#24Moving India towards 'Drink Better, not More' Moderation DRINKIQ 1.6 Lakh+ people reached 40L by 2024 DIAGEO Anti-Drink Driving WRONG SIDE OF THE ROAD Capacity building for 1.2L enforcement officials, in 65 cities across 22 states 8L by 2024 Underage Drinking ACT SMART ALCHOL EDUCATION TO EMPOWER INDIA A GENERATION 2.3L trained in 300 schools in 15 States 15L by 2024 "Where I work, people feel confident and able to play a role in promoting positive drinking" - 95%* *Diageo India internal 'Your Voice survey' 23#25Pillar 3: Diageo in Society Leading in Inclusion & Diversity Inclusive Workplace Women, People with Disabilities & LGBTQ Progressive Portrayal DIAGEO Empowering Women in Communities 24 24#26Leading Inclusion & Diversity Leading Inclusion & Diversity Progressive Portrayal Black&White. Made For Sharing PRESENTS Shared Space *Diageo India internal 'Your Voice survey' This whole thing of calling people like a female stylist DIAGEO inc. accelerating inclusive culture "In Diageo, people from different backgrounds and opinions can be themselves and thrive": 87%* Signature 25#27Bringing it all Together Top performing CPG company in India delivering sustained double-digit, profitable topline growth & long-term value to all our Stakeholders Great Place to Work DIAGEO Organization of the Future Portfolio Re-shape Diageo in Society Leveraged Growth ESG for Stakeholder Value 26#28Key Shifts DIAGEO FROM Distributed focus on Transformation, Margin and Moderate Growth Enterprise Focus ΤΟ Focus on sustained double digit, profitable topline Growth Portfolio Core i.e. Lower & Mid Prestige Focus Broader Based Break-out growth on P&A Consumer Present Forward - i.e. today's Core Present Forward AND Future Back Focus Transformed Culture Culture Shift 'Best in Class' Culture, Speed & Simplicity Corporate Citizenship Role in Society ESG✶ for Stakeholder Value *Environmental, Social & Governance 27#29An Invitation! What's the difference you'd like to make? Ithink Imight have a problem with drinking I'd like to be better informed about my drinking O Bust Myths Learn Facts. Explore the new DRINKIQ India Website. Drinking and your body Drinking and your mind Support with drinking Diki Does drinking alcohol increase the chance of COVID-19 faction? I want to support o yuly Dy How does drinking affect rou physically? What are the short and long-term effects It depends on who you are of binge drinking? you'r How do drinking affectmand and behaviour? Ensanganyor m Six position may to manage al anxiety ninas When it comes to drinking what is 'normal'? DIAGEO 28#30DIAGEO Q&A 29