Diageo Results Presentation Deck
DELIVERING SUSTAINABLE LONG-TERM GROWTH
Continued from the previous page
Gains and losses on the 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 non-operating exceptional items below operating profit in the consolidated income statement.
Exceptional current and deferred tax items, comprising 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.
Organic growth excluding Travel Retail and Guinness
The performance of the Travel Retail channel is dependent on the level of international travel and the performance of Guinness is highly dependent on the availability
of the on-trade channel (particularly in Europe). Due to ongoing travel restrictions and market variability of on-trade recovery conditions brought about by the Covid-19
pandemic, slower growth had been experienced in Travel Retail and Guinness performance.
Additional information on the performance of the business excluding Travel Retail and Guinness has therefore been provided. Management use this information to
assess business performance, and similarly believed that such information will be useful to readers of this document.
In the first half of fiscal 22, the recovery of the on-trade, particularly in Europe, and the partial recovery of Travel Retail has driven a significant improvement in volumes
for Travel Retail and Guinness. As a result, the performance of Travel Retail and Guinness has not had a significant impact on the performance of the group, thus this
information has not been highlighted in this presentation.
An explanation of non-GAAP measures, including organic movements excluding Travel Retail and Guinness and 2019 to 2021 growth on a constant basis, are
described on page 74 of Diageo's Annual Report for the year ended 30 June 2021. For further information and analysis, please see pages 47 to 53 in the Diageo
Interims results, six months ended 31 December 2021 press release.
DIAGEO 34 Interims Results Fiscal 22View entire presentation