Africa Webcast

14 April 2011

Nick Blazquez
President, Diageo Africa

Africas potential is based on favourable demographics. . .

Population growth by geography, millions of people
108 160 270 195 +1,401 117 444 126 (19)

8,306

6,905

2010 Sub-Saharan AfricaSouth North Africa and Middle East Asia Middle EastAsia-Oceania Population growth, CAGR 2.1 1.9 1.4 1.3

India North and Latin America China

EU-Japan

2030

1.0

0.9

0.4

(0.1)

0.9
3

Source: McKinsey strategy review 2010.

. . .and promising GDP prospects. . .

GDP growth, unweighted annual average, %
6 African countries 5 Asian countries

2 1970s 1980s 1990s 2000s 2011-15*

* Forecast. Source: The Economist, January 2011.

. . .that translate into consumer opportunities

Africa private consumption, $bn
1,600
Discretionary income

Share of households in each income bracket, % millions of households

163 196 244

37

1,200

44 53

Basic needs

800

4.9% p.a.

29 32 29

400

34 24 0 2000 2008 2020e 2000 2008 2020e Aspiring emerging consumers (>$5,000 pa) Basic needs ($2,000-$5,000 pa)
Source: McKinsey strategy review 2010.

18

Struggling (<$2,000 pa)

Diageo has the widest geographic coverage in Africa

Total beer and spirits volume in Africa, 2009

Other

South Africa

Diageo operating model

Ethiopia

Subsidiary License brewing

Angola

Third party distribution

DRC Ghana Cameroon Uganda Tanzania Nigeria Kenya

Source: Market interviews; Euromonitor; Plato Logic; IWSR.

Our operating models are fit for purpose

Joint Venture with International Brewer

Joint Venture with International Brewer

Listed on local stock exchange

Diageo operating model Subsidiary Associate License brewing Third party distribution
Fully owned subsidiary Joint Venture with International Brewer
7

We have a track record of delivering growth

1,250

Net sales*, m

Net sales* Beer

5 Year CAGR, %
18

Spirits
1,000

13
16 12 F11 H1 Organic,%**

Total 5 Year OP CAGR

750

Volume

Net sales
500 F06 F07 F08 F09 F10

10
10
8

Marketing spend

* Year ended June 30. **6 months ended 31 December 2010.

Africa is growing in importance to Diageo

14

Africa as % of Diageo net sales

Africa beer as % of Diageo beer

2006

12 29% 10

2010

4 41% 2 2006 2007 2008 2009 2010

Year ended 30 June.

Our Africa strategy is founded on 3 principles

Beer and spirits a key differentiator

Consistent investment behind our brands

Local business with global strengths

10

Beer and spirits: A key differentiator

Diageo Africa net sales, %

Spirits, 25%

RTD, 6%

Lager, 43%

Guinness, 26%

6 months ended 31 December 2010.

11

Beer and spirits: Diageos unique in its range

Beer

Lower

Price points

Higher

Spirits

12

Beer and spirits: Accelerating growth

Improves capabilities

Improves routes to market

Drives efficiencies and enhances pace

13

Beer and spirits: South Africa example

14

Beer and spirits: Together winning share

Diageo share of spirits in South Africa, % volume share
35 33

Windhoek and Heineken share of beer in South Africa, % volume share

6 5.2

31 30 28 27 26 25 25 26 26 2 1.8 2.0 2.0 2.0 2.5 30 4.1 4

3.5

2.2

20 F02 F03 F04 F05 F06 F07 F08 F09 F10

Year ended 30 June. Source: AC Nielsen National Off-trade, internal estimates.

0 F02 F03 F04 F05 F06 F07 F08 F09 F10

15

Consistent investment: Building sales capabilities

For the first time I foresee a clear future in partnership with Guinness, not just buying and selling products - Cameroon

Platform for Growth must be in our DNA - Kenya Its obvious that we have not even started to scratch the surface in terms of being a distributor, I thank Guinness Nigeria for this opportunity - Nigeria
16

Consistent investment: In innovation

Net sales, m
90 80 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 5 Year CAGR, 31% 90 80 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 90 80 5 Year CAGR, 39%

5 Year CAGR, 21%

70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010

Year ended 30 June.

17

Consistent investment: In marketing

Proven growth driver, high-growth geography Integrated digital marketing campaigns

18

Consistent investment: Building capacity

19

Local business: Partnering with communities

300k Tonnes of grain

4 Million people with water

20

Local business: Developing people

21

East Africa: Business context

Clear leadership position Rapidly developing spirits market Trading bloc benefits with some offset of tax rationalisation

22

East Africa: Growth drivers and opportunities

Building our spirits distribution footprint

Leveraging proven pan-regional marketing

Actively managing corporate responsibility agenda

23

South Africa: Business context

Successful joint venture operating model

Gaining share versus market leader

Full brand range in Africas most developed spirits market

24

South Africa: Growth drivers and opportunities

Going to market as a category captain

Driving brand growth

Expanding capacity and moving to returnable bottles

25

Nigeria: Business context

Well-placed in a highly competitive market

Opportunity fuelled by scale and economic growth

Brand range, route to market and capacity key to further growth and profitability

26

Nigeria: Growth drivers and opportunities

Expanding offering of beer and spirits

Extending the reach of our route to market

Investing in our manufacturing strategy

27

Summary: Well-placed to deliver continued growth

Diageo has scale in the biggest African markets

Diageo is connected to communities

Diageos beer and spirits range is unique Diageo has the right capabilities across all sales drivers Diageos management team has deep experience in growing African businesses
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For further information on Diageo, please visit the Investors section of: diageo.com The Investor Relations team can be contacted on: UK +44 (0)20 8978 4267 US +1 202 715 1110

or by email at: investor.relations@diageo.com

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Cautionary statement concerning forward-looking statements This presentation contains forward-looking statements. These forward-looking 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 and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or synergies, the completion of Diageo's strategic transactions and restructuring programmes, anticipated tax rates, expected cash payments, outcomes of litigation, anticipated deficit reductions in relation 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. These factors include, but are not limited to: global and regional economic downturns; increased competitive product and pricing pressures and unanticipated actions by competitors that could impact Diageos market share, increase expenses and hinder growth potential; the effects of Diageos strategic focus on premium drinks, the effects of business combinations, partnerships, acquisitions or disposals, existing or future, and the ability to realise expected synergies and/or costs savings; Diageos ability to complete existing or future business combinations, restructuring programmes, acquisitions and disposals; legal and regulatory developments, including changes in regulations regarding production, product liability, distribution, importation, labelling, packaging, consumption or advertising; changes in tax law, rates or requirements (including with respect to the impact of excise tax increases) or accounting standards; and changes in environmental laws, health regulations and the laws governing labour and pensions; developments in any litigation or other similar proceedings (including with tax, customs and other regulatory authorities) directed at the drinks and spirits industry generally or at Diageo in particular, or the impact of a product recall or product liability claim on Diageos profitability or reputation; developments in the Colombian litigation, Turkish customs litigation, SEC investigation, Korean customs litigation or any similar proceedings; changes in consumer preferences and tastes, demographic trends or perception about health related issues, or contamination, counterfeiting or other circumstances which could harm the integrity or sales of Diageos brands; changes in the cost or supply of raw materials, labour, energy and/or water; changes in political or economic conditions in countries and markets in which Diageo operates, including changes in levels of consumer spending, failure of customer, supplier and financial counterparties or imposition of import, investment or currency restrictions; levels of marketing, promotional and innovation expenditure by Diageo and its competitors; renewal of supply, distribution, manufacturing or licence agreements (or related rights) and licenses on favourable terms when they expire; termination of existing distribution or licence manufacturing rights on agency brands; disruption to production facilities or business service centres, and systems change programmes, existing or future, and the ability to derive expected benefits from such programmes; technological developments that may affect the distribution of products or impede Diageos ability to protect its intellectual property rights; and changes in financial and equity markets, including significant interest rate and foreign currency exchange rate fluctuations and changes in the cost of capital, which may reduce or eliminate Diageos access to or increase the cost of financing or which may affect Diageos financial results and movements to the value of Diageos pensions funds. 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 factors and the Risk factors contained in the Annual Report on Form 20-F for the year ended 30 June 2010 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 document 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 2011. This presentation also includes names and images of brands and products which constitute trademarks and trade names which are not owned by Diageo and Diageo hereby acknowledges that it will not gain any right, title or interest in such trademarks and trade names. 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. This presentation includes information about Diageos target debt rating. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating organisation. Each rating should be evaluated independently of any other rating. Past performance cannot be relied upon as a guide to future performance. The contents of the companys website (www.diageo.com) should not be considered to form a part of or be incorporated into this presentation. 30