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Interim Results Fiscal 26 Sir Dave Lewis, CEO & Nik Jhangiani, CFO 25 FEBRUARY 2026
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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 relating to Diageo’s fiscal 26 outlook and beyond, Diageo’s medium-term guidance, ambitions relating to free cash flow and improved operating leverage, Diageo’s Accelerate programme, the impact of changes in interest or exchange rates, 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, potential tariffs and Diageo’s ability to mitigate the impact of tariffs, expected cash payments, future inventory levels, future Total Beverage Alcohol market share ambitions and any other statements relating to Diageo’s performance during or for the year ending 30 June 2026 or thereafter. 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, which include, but are not limited to: (i) economic, political, social or other developments in countries and markets in which Diageo operates, including geopolitical instability and 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, lower or non-alcoholic products or THC and hemp-based THC beverages, increased use of GLP-1 medications, 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; (vi) 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) loss, operational disruptions to or closure of a production site, office or other key facility due to unforeseen or catastrophic events or otherwise; (xiii) contamination, counterfeiting or other circumstances that raise consumer concerns and could harm the level of customer support for Diageo’s brands and adversely impact its sales; (xiv) Diageo’s ability to maintain its brand image and corporate reputation or to adapt to a changing media environment; (xv) fluctuations in exchange rates and/or interest rates; (xvi) Diageo’s ability to successfully execute its strategic business transformation projects; (xvii) Diageo’s ability to derive the expected benefits from its business strategies, including in relation to expansion in emerging markets, acquisitions, investments in joint ventures, productivity initiatives or inventory forecasting; (xviii) increased competitive product and pricing pressures, including as a result of introductions of new products or categories that compete with Diageo’s products and consolidations by competitors and retailers; (xix) increased costs for, or shortages of, talent, as well as labour strikes or disputes; (xx) movements in the value of the assets and liabilities related to Diageo’s pension plans; (xxi) 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 (xxii) 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 2025 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. 2 Interim Results Fiscal 26
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Sir Dave Lewis, CEO Nik Jhangiani, CFO Interim Results Fiscal 26
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Mixed performance across the regions Accelerate savings progressing well Financials and updated guidance for fiscal 26 4 Interim Results Fiscal 26 Interims fiscal 26 Strategic review underway A strong business with an enviable position Significant opportunities with ample room to grow First reflections informing immediate three priorities Will update late summer
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F26 half year key performance metrics Organic net sales Free cash flow Pre-exceptional EPS ↓ -2.8% ↓ -2.8% $1,532m 95.3cents ↓ -$164m ↓ -2.5% Organic operating profit Organic net sales growth in three out of five regions Guinness and Johnnie Walker standout performers Organic operating profit decline due to lower gross profit partially offset by A&P efficiencies and lower overheads Free cash flow decline driven by negative movement in working capital EPS impacted by organic operating profit decline and disposals Dividend of 20 cents declared, move to dividend payout policy 30-50%, minimum floor 50 cents p.a. 1. Excluding year-on-year decline in CWS For additional information on non-GAAP measures please see financial/legal appendix 5 Interim Results Fiscal 26 Excluding Chinese white spirits c.-0.5%1 Excluding Chinese white spirits c.1.5%1 INTERIM RESULTS FISCAL 26
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6 H1 F26 organic net sales growth by region North America Europe Latin America and Caribbean Africa Asia Pacific -6.8% +4.5% +10.9% -11.1% +2.7% NAM: US Spirits softness, especially in tequila, partially offset by growth in Diageo Beer Company Europe: Good performance in Türkiye and MENA and continued broad Guinness momentum APAC: Weak CWS performance in China partly offset by good growth in India Latin America and Caribbean: Mainly good growth, particularly Brazil Africa: Broad-based strong performance c.30% of Diageo total net sales gaining/holding share in measured markets 1 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 territo ry within a geographic region 1. Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISC AM, NABCA, State Monopolies, TRAC, and other third -party providers. All analysis of data has been applied with a tolerance of +/ - 3 bps and the descriptions applied of gaining, holding or losing share by Diageo or brands are based on estimated performance within that tolerance. Per centage represents percent of markets by total Diageo net sales contribution that have held or gained total trade share in the f iscal year to date. Measured markets indicate a market where we have purchased any market share data. Market share data may include beer, wine, s pirits or other elements. Measured market net sales value sums to 91 % of total Diageo net sales value for the six months ended 31 December 2025. For additional information, please see financial/legal appendix. 2. % split of reported net sales. Emerging markets include Central and Eastern Europe (excluding Benelux, Greece and Nordics) , Türkiye, Middle East and North Africa (MENA), Latin America and Caribbean, Africa and Asia Pacific (excluding Australia, Korea and Japan). 3. Excluding year-on-year decline in CWS net sales Mixed performance across the regions Developed markets: 61%2 Emerging markets: 39%2 Interim Results Fiscal 26 Excluding CWS +0.2%3 INTERIM RESULTS FISCAL 26
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North America: performance impacted by an increasingly competitive and cautious US consumer environment Interim Results Fiscal 267 US weaker than expected, largely due to consumer wallet pressure and competitiveness in tequila Gaining share in ready-to-drink (RTD)1 with over 10% organic net sales growth in US1 driven by both Smirnoff RTDs and Casamigos Margaritas Continued momentum and opportunity with Guinness US Spirits share loss in H1 largely driven by Don Julio, Casamigos and Crown Royal Good performance on Johnnie Walker and encouraging performance on Ketel One Vodka and Astral Tequila 1. RTDs includes spirit and malt-based products INTERIM RESULTS FISCAL 26
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8 Interim Results Fiscal 26 Asia Pacific: weak CWS performance in China, only partly offset by strong results in India China: Largely impacted by weak CWS consumption given market policy and later timing of Chinese New Year Excluding decline in CWS, Greater China organic net sales -4% and APAC organic net sales +0.2%1 India: Growth driven by Prestige & Above segment including Royal Challenge, Smirnoff and Johnnie Walker Australia: Guinness on-trade market share gains2, supported by the British & Irish Lions tour sponsorship and distribution growth 1. Excluding year-on-year decline in CWS net sales 2. Volume share from Hybrid INTERIM RESULTS FISCAL 26
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9 Accelerate: good progress in H1 Interim Results Fiscal 26 • Now expect c.50% of Accelerate savings in fiscal 26, with c.40% of this delivered in the first half • Supply Agility: continued momentum — Improving line utilisation rates and facility optimisation — Optimising logistics — Digital supply chain transformation, including Scotch Intelligence Platform (SIP) • A&P: reduced development costs and more efficient targeting of spend — AI content creation leveraging Virtual Content Studios — Procurement through consolidation driving improved rates and new contracts — Concentrated development spend on fewer bigger opportunities e.g. Johnnie Walker — Smart media buying, dynamic allocation tools and better returns • Overheads: responding to changing business needs — Stronger cost control across corporate organisation — Headcount reductions in H1, savings to come in H2 INTERIM RESULTS FISCAL 26
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Organic net sales decline driven by negative volume and price/mix 10 Volume decline in 4 of 5 regions Price/mix decline largely due to adverse mix given US tequila softness and CWS decline in China Net acquisitions and disposals negative given the disposal of Guinness Ghana in F26 H1 and Guinness Nigeria and Cîroc (NAM) in prior year FX positive overall from euro and sterling movement, partly offset by adverse impact of Turkish lira 43 F25 H1 -96 Volume -199 Price/mix -201 Net acquisitions and disposals Exchange 12 Net hyperinflation adjustment F26 H1 10,901 10,460 -4.0%Organic net sales growth -2.8% / -$295m H1 F26 reported net sales growth $m -1.8% +0.4% +0.1% Vol P/M -4.0% NAM -2.8% -1.8% Europe 4.5% -1.2% APAC -9.9% -1.6% LAC 6.1% 7.7% Africa 3.2% -0.9% Group -1.9% Interim Results Fiscal 26 Note: F26 H1 transactions included Guinness Ghana Breweries, Seychelles Breweries Limited; F25 transactions included Guinness Nigeria, Cîroc (NAM), Pampero & Safari INTERIM RESULTS FISCAL 26
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Organic operating profit decline given lower gross profit, only partly offset by reduced A&P investment and overheads 11 Interim Results Fiscal 26 Gross Profit decline given NAM and APAC, partially offset by growth in Europe, LAC and Africa. Adverse mix, cost inflation and tariffs offset cost efficiencies A&P spend lower given lower net sales reduced development spend and Accelerate efficiencies and more targeted investment Overheads due to lower indirect spend and efficiencies Net acquisitions and disposals were largely impacted by the disposal of Guinness Ghana in F26 H1 and Guinness Nigeria in prior year FX favourable impact mainly from euro, partially offset by sterling and Turkish lira Movement in operating profit pre-exceptionals $m -3.4% 178 53 14 F25 H1 Gross Profit A&P OH & OIE Net acquisitions and disposals Exchange Hyperinflation adjustment F26 H1 3,372 -324 -36 -1 3,256 -136bps +124bps +13bps Organic operating margin +1bps Organic operating profit -2.8% INTERIM RESULTS FISCAL 26 Note: F26 H1 transactions included Guinness Ghana Breweries, Seychelles Breweries Limited; F25 transactions included Guinness Nigeria, Cîroc (NAM), Pampero & Safari
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12 Interim Results Fiscal 26 F26 H1 lower free cash flow largely due to adverse working capital movement Free cash flow $m EBITDA (Post-excep) Capex WC movement Operating Cash Flow Tax Interest Other1 Free Cash Flow vs F25 H1 -12 +38 -388 +141 +74 -17 -164 Working capital impacted by unfavourable creditor movements Tax impact given timing phasing of payments Interest paid lower due to lower interest rate and borrowing cost capitalisation on capex Disciplined capex with continued investment in supply agility, Guinness capacity and digital 3,532 2,139 1,532 -591 -802 -365 -310 +68 1. Includes share of after-tax results of associates and joint ventures, dividends received, post -employment payments less amounts included in operating profit, and other items INTERIM RESULTS FISCAL 26
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EPS impacted mainly by lower operating profit 13 1. Share buyback 0.6; Associates and joint ventures -0.5; Finance charges -0.4; Hyper inflation related adjustment -0.1 Interim Results Fiscal 26 1.5 1.3 F25 H1 EPS pre- exceptionals 0.6 Exchange -4.2 Organic operating profit Tax -1.2 Acquisitions & disposals Non-controlling Interest -0.4 Other1 F26 H1 EPS pre- exceptionals 97.7 95.3 -2.5% Movement in EPS pre-exceptionals cents INTERIM RESULTS FISCAL 26
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F26 H1 F25 FY Movement F26 H1 v F25 FY Closing net debt1 $m (21,672) (21,854) 182 Average net debt1 $m (21,808) (21,540) (268) Net interest charge (pre-exceptional items) $m (414) (830) Net other finance charges $m (19) 1 Net pre-exceptional finance charges $m (433) (829) Effective interest rate % 4.0 4.1 (0.1) Net Debt1 / Adjusted2 EBITDA x 3.4 3.4 - Balance sheet at the end of fiscal 26 H1 1. Net debt is equivalent to net borrowings and adjusted to include net debt and post employment plan benefit liabilities 2. Earnings before exceptional operating items, interest, tax, depreciation, amortisation and impairment For additional information on non-GAAP measures please see financial/legal appendix 14 Interim Results Fiscal 26 INTERIM RESULTS FISCAL 26
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Organic net sales: to be down 2% - 3% given further weakness in the US. This also includes the impact of Chinese white spirits (CWS) Organic operating profit growth: to be flat to up low-single-digit, including the revised organic net sales guidance due to the US and CWS, as well as the impact of tariffs at this time. Also includes savings from the Accelerate programme Taxation: to be c.25% Effective interest rate : to be c.4% Capital expenditure : to be at the lower end of the range of $1.2 - 1.3 billion Free cash flow : to be $3 billion after exceptional cash costs related to the Accelerate programme. Does not include c.$100 million one-off impact expected in working capital ahead of the implementation of SAP S/4 HANA ERP system in early fiscal 27 Fiscal 26 Outlook 15 We expect: Interim Results Fiscal 26 INTERIM RESULTS FISCAL 26 Note: Assumes current tariffs remain on imports into the US at 10% from the UK and 15% from Europe and that Mexican and Canad ian spirits imports remain exempt under USMCA with no other changes to tariffs
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Sir Dave Lewis, CEO First impressions and immediate priorities
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80 100 120 140 160 180 200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Spirits is a resilient category with a strong premiumisation history 17 Interim Results Fiscal 26 Global Spirits Index (2010=100) Value1 (USD m) Volume1 (EUs) Consumption per capita2 (EUs per LPA+ pop.) 1. IWSR 2024, Spirits excluding baijiu 2. Diageo calculation from Oxford Economics FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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In the last year consumption dynamics haven’t materially changed 18 Interim Results Fiscal 26 Penetration1 Frequency1 Serves/occasion1 US 0.0ppt +3% -7% UK 1.2ppt +16% 0% India 0.0ppt +4% -6% Mexico -0.3ppt -5% -3% # of servings per occasion # of times per month % of households Attitudes toward spirits not fundamentally changing, although servings per occasion impacted by economic pressures • Relatively stable household penetration • Consumption occasions have increased In the last year in four major markets compromising c.55% NSV • Fewer servings per occasion Change in LPA+ consumption of Spirits (‘25 vs ’24) 1. BGS Kantar (Penetration Claimed Data); BevTrac (Frequency & Intensity Claimed Data) FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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Economic pressure has meaningfully impacted disposable income 19 Interim Results Fiscal 26 US households are spending ~25% more on general CPG staples (ex-alcohol) as compared to 5 years ago but receiving ~8% fewer items1 Pre COVID baseline CY2021 CY2022 CY2023 CY2024 CY2025 5.7% 15.6% 22.1% 24.2% 25.5% 0.2% -3.8% -6.1% -6.8% -8.4% +30.1% +33.2% +37.0% Value ($) % Change vs Pre-COVID Baseline Volume (EQ) % Change vs Pre-COVID Baseline Price/Mix Price/Mix Price/Mix £88 £74 £62 £56 £30 £35 £18 £113 £88 £71 £73 £39 £35 £18 Transport Food & non-alcoholic drinks Recreation & culture Restaurants & hotels (w/o Alcohol) Alcohol Clothing & footwear Housing (net) fuel & power Essential expenses Squeezed by increased housing costs Discretionary expenses Shifting towards experiential categories, alcohol flat 2021-2022 2023-2024 UK essential & discretionary household expenses £/week April 2021 to March 2022 vs April 2023 to March 20242 1. Nielsen xAOC 2 Diageo modeling from ONS, World Bank/IMF 2024 FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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US LPA+ consumption of Spirits by Cohort (2025)3 Penetration Index vs Mean, Jan’25 Frequency Index vs Mean, Sep’25 Serves/occasion Index vs Mean, Sep’25 LPA-34yo 35-44yo 45-54yo +55yo 20 Interim Results Fiscal 26 LPA-34 consumers: Highest increase in penetration and frequency with decreased servings per occasion 1.1 1.1 1.0 0.9 1.3 1.2 0.9 0.7 1.0 1.1 1.1 0.9 Trend vs 2024: Increasing Decreasing Higher cost of living means decreased spend and changes to format Zebra-striping, choosing low- proof, or non- alc options also emerging as key behaviours Emerging substitutes such as legal cannabis products are being monitored closely Impact Pressured consumer wallets Moderation in drinking GLP-1 Emerging substitutes Other factors are present, but impact is relatively limited Limited evidence of lasting impact on TBA purchasing1 75% report no reduced TBA inclination2 TOTAL change 25/24 0.0ppt +3% -7% US Age Cohorts 1. Change in grocery spend from Cornell x Numerator study “The No -Hunger Games” Jan ’25 2. Quddos, F., Hubshman, Z., Tegge, A. et al. Semaglutide and Tirzepatide reduce alcohol consumption in individuals with obesity. Sci Rep 13, 20998 (2023) 3. BGS Kantar (Penetration Claimed Data); BevTrac (Frequency & Serves/Occasion Claimed Data) Comparison of the rolling 12-month average from shown month 2025 to shown month 2024 vs the rolling 12 -month average one year previous? Note: Age cohorts for Penetration & Serves/Occasion: LPA -29 (Gen Z 1997 onwards), 30-45yo (Millennials 1981-1996), 46-61yo (Gen X 1965-1980), +62yo (Boomers any- 1964) FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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Diageo 2024 % Share 2010-24 (bps) +118 -46 -90 21 Interim Results Fiscal 26 6% 8% 10% 12% 14% 16% 18% 20% 22% 2010 2012 2014 2016 2018 2020 2022 2024 Diageo Market Share %1 International Spirits 16.7% International Spirits (incl. RTD) 15.5% Spirits (incl. RTD, CWS) 9.6% Market Share Change Diageo share of spirits over time has been very stable Diageo’s price/mix 2019-2024 +5.3% International Spirits 2019-2024 +4.6%2 Category 1. IWSR 2024 2. Diageo calc of IWSR data excluding CWS Note: Market share calcuations excludes Russia FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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Diageo mix index vs market Premium portfolio bias challenged in a weaker climate % Share of RSV for Market and Diageo, fiscal 25 by Average Selling Price per Unit1 US Spirits $/unit Market Diageo (vs Mkt) $50+ 15% 22% +7% $45-50 6% 9% +3% $40-45 4% 3% -1% $35-40 8% 5% -4% $30-35 10% 9% 0% $25-30 15% 18% +4% $20-25 14% 14% +0% $15-20 11% 8% -3% $10-15 9% 6% -3% $6-10 3% 2% -1% $3-6 2% 1% -1% Under $3 4% 2% -2% Tequila Market Diageo (vs Mkt) 25% 53% 29% 10% 17% 6% 9% 8% 0% 6% 1% -5% 10% 9% -2% 14% 6% -8% 12% 2% -9% 6% 2% -5% 5% 0% -5% 2% 1% -1% 1% 1% 1% 1% 0% -1% +1.0ppt over -1.0ppt under 22 Interim Results Fiscal 26 1. Nielsen 52W thru 6/28/2025 and NABCA 52W 6/30/2025 FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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RTD: an increasingly relevant role in spirits socialising occasions 23 Interim Results Fiscal 26 5% 10% 15% 20% 25% 30% 35% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Market Share1 % Market: % RTD share of Spirits + RTD Diageo: % share of RTD RTD share of spirits category has increased since 2020 Higher and lower ABV RTDs driving growth Diageo market leadership, establishing RTDs Market: Consumer behaviour drives acceleration within spirits Diageo Focus on Premium Spirits acceleration, reduced focus on RTDs RTD share & growth RSV $bn, % 2021-2024 1,2 12% 26% 58% 25% 29% 49% 2024 RSV 2021-2024 RSV Growth ~6-15% ABV $35bn $8bn ~4.5-5% ABV ~0-4.5% ABV 1. IWSR 2024 2. Diageo consumer research with Kantar RTDs study March 2025 in USA, UK, Germany, South Africa, Brazil, Australia FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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24 Interim Results Fiscal 26 Guinness has delivered strong outperformance With significant opportunity for geographic expansion Guinness: a world class brand with significant potential • Double-digit growth in last 5 years; growing share in key markets2 • Historic ROIC highly attractive • Increasing investment in capacity to support geographic expansion • Significant untapped opportunity with Guinness 0.0 2.9% 3.1% 3.1% 3.2% 3.4% 2020 2021 2022 2023 2024 2025E 3.6–3.8% Global market share of premium plus beer1 Share of Guinness RSV 2024 Market Share of Premium+ Beer 2024, IWSR Top 3 Markets (GB, Ireland, US) 54% 5.4% Next 5 Markets (Africa, SEA, CCAV) 31% 12.8% Rest of World (Europe, China, Australia, LAC, India) 15% 1.0% 1.IWSR 2024 and Diageo estimates 2. Diageo internal estimates incorporating Nielsen, CGA, Frontline, IRI, NABCA, TRAC, and other third -party providers FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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25 Interim Results Fiscal 26 Immediate Priority: 1. Competitive category strategies winning with relevant brands • Continue to invest in premium portfolio • Explore new portfolio opportunities: — Price re-positioning — New proposition spaces • Sharpen price-pack architecture e.g. strong growth of small packs • Truly competitive category strategies e.g. MENA (UAE) FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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MENA(UAE):repositioning whisk(e)y portfolio to meet consumer needs Volume (LH Axis) Officer’s Choice McDowell’s No.1 Imperial Blue Royal Stag Clan MacGregor Scotch Blenders Pride Grant’s Jameson William Lawson’s Famous Grouse VAT 69 Black & White JW Red Label J&B Rare Ballantine’s Dewar’s Chivas JW Black Label Jack Daniels Officer’s Choice McDowell’s No.1 Imperial Blue Royal Stag Clan MacGregor Scotch VAT 69 Blenders Pride Black & White Grant’s J&B Rare William Lawson’s Famous Grouse JW Red Label Ballantine’s Dewar’s JW Blonde Jameson Chivas JW Black Label Jack Daniels Bulleit JW Black Ruby Price per litre (RH Axis) Value Premiumisation Opportunity To From Portfolio repositioning to meet consumer needs and increase competitive positioning1 Diageo brands 26 Interim Results Fiscal 26 1. IWSR 2024 UAE, retail price audit. FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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27 Interim Results Fiscal 26 • Reinvigorate and focus ‘on-trade’ • Customer service ‘off-trade’ — NAM 88% — LAC 86% — UK 89% • Joint business plan development and execution • “Grow our customers’ categories and gain disproportionately from growth” Immediate Priority: 2. Customer, Customer, Customer FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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28 Interim Results Fiscal 26 i. Clarity ii. Agility iii. Effectiveness — Output — Cost Immediate Priority: 3. Redesign Diageo operating framework iv. Differentiating competencies v. Competitive edge vi. Sharper capital deployment FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES Shareholder value creation
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• A strong business with an enviable position • The market provides significant opportunity, but we have work to do: — Portfolio and category strategies; Customer relationships; Operating model • The Spirits market has some headwinds, principally economically, but also some small impact from GLP-1 and changing lifestyles (3rd space) • Our leadership position is strong but there is ample room to grow • We will maintain strong capital deployment discipline Summary: 29 Interim Results Fiscal 26 FIRST IMPRESSIONS AND IMMEDIATE PRIORITIES
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Appendix
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Agreement to sell shareholding in EABL to Asahi Announcement in December 2025 of sale of 65% shareholding in EABL and shareholding in Kenyan spirits business Estimated net proceeds after tax & transaction costs of $2.3 billion, implying 17x adjusted EBITDA Consistent with Diageo's strategy of appropriate and selective disposals of non-core assets, strengthening the balance sheet and supporting our previously shared commitment to de-lever Implied enterprise value for 100% of EABL of $4.8 billion Transaction expected to de-lever Diageo’s balance sheet by c.0.25x Subject to regulatory approval, completion expected in the second half of calendar 2026 32 Interim Results Fiscal 26
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33 Proactively managing and scenario planning to mitigate through: • Inventory management • Supply chain optimisation • Cost management • Re-allocation of investments • Pricing and promotion management c.75% net sales not impacted by US tariffs1 Estimated operating profit annualised impact pre-mitigation of c.$200m1; expected mitigation before any pricing c.50% Implications of tariffs on US imports c.25% net sales impacted by US tariffs1 Interim Results Fiscal 26 1. Assuming that a 10% tariff remains on UK and 15% on European imports into the US, that Mexican and Canadian spirits imports into the US remain exempt under the United States - Mexico - Canada Agreement (USMCA). We note the recent ruling on tariff policy by the United States Supreme Court and the subsequent statements by the US Administration, and also the potential for tariff increases in the future. We will continue to monitor developments. We have not updated our guidance for this at this time
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34 Diageo US spirits H1 Fiscal 26 growth vs prior year US spirits Nielsen/NABCA sales Growth vs prior year1 Industry sales Diageo sales Organic net sales Depletions sales Nielsen/NABCA sales (Diageo)1 Fiscal 26Industry Diageo US Spirits industry and Diageo consumption (Nielsen/NABCA) growth; Diageo US spirits shipments, depletions and consumption growth L12M L6M L3M L12M L6M L3M Interim Results Fiscal 26 -9.3% -8.3% -7.3% -2.4% -2.7% -4.0% -5.3% -7.3% -9.7% 1. Diageo; N/N combined - Nielsen 12.27.25, NABCA 12.31.25
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Foreign exchange information and expectations F26 foreign exchange update Using hedged rates in place and spot rates on 31 December 2025 (including $1=£0.74 and $1=€0.85) for fiscal 26 combined translation and transaction FX impact is as follows: • c.$100m favourable impact on net revenue • c.$50m favourable impact on operating profit F26 half year net sales value - FX rates 35 Interim Results Fiscal 26 Currency F26 H1 currency as % of total Spot at 31 Dec 2024 Spot at 31 Dec 2025 Average actual H1 F25 Average actual H1 F26 USD 34% 1.00 1.00 1.00 1.00 GBP 16% 0.80 0.74 0.78 0.75 EUR 12% 0.96 0.85 0.92 0.86 INR 7% 85.61 89.87 84.15 88.26 TRY <5% 35.36 42.96 35.36 42.96 KES <5% 129.27 128.99 129.25 129.20 BRL <5% 6.17 5.49 5.69 5.42 MXN <5% 20.72 18.00 19.67 18.45 CNY <5% 7.30 6.99 7.18 7.12 CAD <5% 1.44 1.37 1.38 1.39
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Historic growth across regions - organic 36 Note: F26 H1 organic growth rates adjusted for all completed acquisitions and disposals to 31st December 2025Interim Results Fiscal 26 F25 F26 Net sales Q1 Q2 H1 Q3 Q4 H2 FY Q1 Q2 H1 North America 2.3 (0.1) 1.0 6.9 (2.3) 2.0 1.5 (2.7) (10.4) (6.8) Europe 1.0 0.7 0.8 (0.4) 0.0 (0.2) 0.3 3.5 2.2 2.7 Asia Pacific (10.9) 5.6 (2.5) 1.6 (9.8) (4.0) (3.2) (7.5) (14.0) (11.1) Latin America and Caribbean 16.0 (1.7) 5.1 28.5 5.0 15.3 9.2 10.9 (0.2) 4.5 Africa 14.3 4.9 9.0 10.1 14.2 12.3 10.5 8.9 12.7 10.9 Diageo 1.1 1.4 1.3 6.3 (1.1) 2.3 1.7 0.0 (5.1) (2.8) Price / mix 4.1 (1.0) 1.4 3.4 (2.4) 0.2 0.8 (2.8) (1.1) (1.9) Volume (3.0) 2.4 (0.1) 2.9 1.3 2.1 0.9 2.9 (4.0) (0.9)
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F26 half year exceptional operating expenses 37 Exceptional operating expenses $m Restructuring programmes – Accelerate and supply chain agility programme 86 Distill Ventures investments -1 One-off pension benefit (Ireland) 38 Ongoing litigation matters (Europe) 17 Total exceptional operating expenses 140 Interim Results Fiscal 26
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Financial/legal appendix: Definitions of non-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 that 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, forecast free cash flow, forecast effective interest rate, forecast organic net sales growth and forecast organic operating profit growth 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. As part of the move to an asset-light beer operating model, calculation of volume for Guinness flavour extract and other concentrate sales has been amended to represent the equivalent finished goods volume. Comparatives for prior periods have been restated Organic movements Organic information is presented using US dollar amounts on a constant currency basis excluding the impact of exceptional items, certain fair value remeasurements, hyperinflation 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. Continued on the following page 38 Interim Results Fiscal 26
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Continued from the previous page Calculation of organic movements An explanation of non-GAAP measures, including organic movements, is set out on pages 213-221 of Diageo’s Annual Report for the year ended 30 June 2025. (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 forward-looking rates. (b) Acquisitions and disposals For acquisitions in the current period, the post-acquisition results are excluded from the organic movement calculations. For acquisitions in the prior period, post-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. Continued on the following page 39 Interim Results Fiscal 26
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Continued from the previous page (c) Exceptional items Exceptional items are those that in management’s judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting, and are excluded from the organic movement calculations. Management believes that separate disclosure of exceptional items and the classification between operating and non-operating 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 unusual or non-recurring in nature, considered to be of a size that could distort performance 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. 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 unusual non-recurring items, that are considered to be of a size that could distort performance and 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 finance incomes/charges are those that are unusual or non-recurring in nature, considered to be of a size that could distort the performance and are part of the financing activity of the group. Exceptional current and deferred tax items comprise unusual or non-recurring items, that are considered to be of a size that could distort performance. 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 remeasurements in the organic movement calculation reflect 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. Continued on the following page 40 Interim Results Fiscal 26
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Continued from the previous page Adjustment in respect of hyperinflation The group's experience is that hyperinflationary conditions result in price increases that include both normal pricing actions reflecting changes in demand, commodity and other input costs or considerations to drive commercial competitiveness, as well as hyperinflationary elements and that for the calculation of organic movements, the distortion from hyperinflationary elements should be excluded. Cumulative inflation over 100% (2% per month compounded) over three years is one of the key indicators within IAS 29 to assess whether an economy is deemed to be hyperinflationary. As a result, the definition of 'Organic movements' includes price growth in markets deemed to be hyperinflationary economies, up to a maximum of 2% per month while also being on a constant currency basis. Corresponding adjustments have been made to all income statement related lines in the organic movement calculations. Shareholder value metrics • Dividends: Diageo internal information. • Return of Capital (RoC): Diageo internal information. Market share approach • All analysis of data has been applied with a tolerance of +/- 3 bps and the descriptions applied of gaining, holding or losing share by the Company or brands are based on estimated performance within that tolerance. • Percentages represent % of markets by total Diageo net sales contribution who have held or gained total trade share in the 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 91% of total Diageo net sales value for the six months ended 31 December 2025. 41 Interim Results Fiscal 26
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Sonya Ghobrial Head of Investor Relations Sonya.Ghobrial@diageo.com +44 (0)7392 784 784 Andy Ryan Investor Relations Director Andrew.Ryan@diageo.com +44 (0)7803 854 842 Grace Murphy Investor Relations Director Grace.Murphy@diageo.com +44 (0)7514 726 167 42 Interim Results Fiscal 26