DIAGEO UK SHARESAVE MATURITY 2016 Share in our success

Transcription

1 DIAGEO UK SHARESAVE MATURITY 2016 Share in our success

2 Sharesave Maturity Key Dates 14 November 2016 Maturity pre-election window opens. Participants will be able to go onto the website and input their instruction online year Option Price 9.60 The Diageo plc Sharesave contracts that commenced in 2011 (5 year) & 2013 (3 year) mature on 1 December 2016*. *Please note if you have missed any payments your maturity date will be delayed by one month for each outstanding contribution, for a maximum of 6 months. All you have to do now is decide what to do with your savings and, if applicable, tax-free bonus! The proceeds from your savings account can be used, if you wish, to buy Diageo shares at the fixed option price. If you participate in both the 3 and 5 year plans you must exercise both plans separately. You have six months from the Maturity Date to buy Diageo shares. If you take no action within 6 months of your maturity date you will lose the right to buy the shares at the option price. 28 November 2016 Close date for pre-election window Last date for participants to input their instruction in order to exercise on the Maturity Date Any instructions received after this date will be processed on a weekly basis year Option Price Your Maturity instructions are submitted online. You can choose to: Exercise your option at the option price and Hold all (your shares will be transferred into your Sharestore account). Exercise your option at the option price and choose to sell all or some of your shares on the Maturity Date, this will be 1 December Close your account and receive a refund of your savings (and bonus for 5 year plans). To learn more about the online service please read the following pages carefully. If you are not sure of your choices or have any further queries please contact the Computershare Sharesave Helpline on All contact details are contained on the final page of the document. 1 December 2016 Maturity Date* 31 May 2017 Latest date to exercise your Option for saving accounts maturing 1 December 2016

3 Exercising your option You have up to six months from 1 December 2016 to exercise your option, after which your option will lapse and cannot be reinstated. If you have missed any payments, your maturity date will be delayed by one month for each missing monthly contribution, for a maximum of 6 months. If you choose to exercise your option, your savings (and bonus for 5 year savings plans) are used to buy Diageo plc shares at the option price (2011/5 year /3 year 16.15). When making your choice it is important to consider the current share price. The Diageo shareprice can be found at YOU HAVE THE following choices: 1. Transfer all your shares to the Diageo Sharestore Your shares will be held in the Diageo Sharestore on your behalf. You can sell your shares at any time on or after 5 December 2016 through Capita Share Dealing Services at or telephoning and quoting your Share Reference Number (which is the same as your USER ID for and your National Insurance Number (found on your payslip). For more detailed information and Sharestore terms and conditions log onto 2. Sell some or all of your shares on 1 December 2016 This choice will be available up to 4.30pm (GMT) on Monday 28 November 2016 to all option holders whose savings contracts mature on 1 December Computershare will deduct brokers commission of 0.25% of the gross sale proceeds subject to a minimum deduction of 15. Proceeds from the sale will be transferred to your nominated bank account three business days after the date of sale. Please allow 3-5 working days for the payment to credit your bank account. If you choose to sell only some of your shares, the remaining shares will be transferred into the Diageo Sharestore and can be sold any time on or after 5 December Important You cannot set a limit price at which to sell your shares. If you input a valid sale instruction on or before Monday 28 November 2016 at 4.30pm (GMT), your shares will be sold in accordance with the Computershare sale facility terms and conditions.

4 Online Maturity Instruction Log onto diageoshareplans and select payroll number under USER ID. To input your instruction you may require some or all of the following: Payroll Number This can be found on your payslip or at the top of your maturity letter. Computershare PIN Your PIN may have previously been sent to you by Computershare, however you can use the forgotten your PIN functionality when you log onto the Computershare website. If you have never been issued with a PIN then please call Computershare on to request a new PIN. Bank Details If you are choosing to sell all or part of your shares and/or if you do not donate any residual to charity. Diageo Share Reference number This is the same number as your USER ID logging onto your account at mydiageoshares.com. It can be found on most correspondence from Shareplans and can also be referred to as your Investor Code. What will you see online? Step 1 - Employee Portfolio This screen shows a summary of all active accounts. For more detailed information about each holding, please click on the plan description. To begin your Maturity Instruction click on Transact. Step 2 - Summary of current available transactions The plan maturing on 1 December 2016 is marked Maturity, click on this link to take you to the Maturity pages. (You may see the option Close. Please do not click on this link unless you wish to close any other existing accounts). In case of any difficulty call the Computershare Sharesave Helpline on

5 Online Maturity Instruction What will you see online? (Continued) Once you have completed step 4, follow the on screen instructions to the end, ensuring you complete the process and SUBMIT. A Maturity Confirmation screen will appear allocating you a confirmation number, please ensure you take a note of this number as it will be required for future reference. To check the choice you have made, click on the Transaction History button. You may have the opportunity to amend your instruction, provided that you act prior to the relevant delivery deadline. If you wish to do this, please immediately contact Computershare Sharesave Helpline on Computershare will be able to confirm whether it is possible to amend your instruction and, if so, will advise you how to do it. Please note you will not be able to amend your instruction on or after the relevant delivery deadline. Step 3 - Computershare Terms & Conditions You MUST read and accept the Terms and Conditions to move to the next part of the online process. Step 4 - Select a Maturity choice This screen provides you with more detailed information on each of your options. There is a dropdown menu at the bottom of the screen for you to record your choice. Yorkshire Building Society (YBS) are Plan Managers and savings carriers for the 2014, 2015 and 2016 plans. If you applied to join any of these plans this information will not be visible on this website.

6 YOUR questions answered When will my instruction be processed? If your instruction is received by (4.30pm GMT) on 28 November 2016 we will aim to exercise your instruction and if you wish, sell your shares on 1 December Thereafter, processing will be carried out on a weekly basis and provided we have received your valid instruction by 4:30pm (GMT) on a Friday (the Weekly Cut-Off Point ) Computershare will aim to exercise your instruction on the third Business Day following such day. Please note the sale facility is for one day only, on 1 December If you want to sell any shares after the first day sale service, you should sell following the Sharestore sale process outlined under choice 1 Transfer all your shares to the Diageo Sharestore on page 2 of this guide. Any shares transferred to your Sharestore account as part of the first delivery (1 December 2016), will be available to sell on or after 5 December If the Weekly Cut-Off Point falls on a UK Public Holiday, the Weekly Cut-Off Point will be delayed until 4:30pm (GMT) on the next available Business Day (the Delayed Weekly Cut-Off Point ) and Computershare will aim to exercise your instruction on the third Business Day following the Delayed Weekly Cut-Off Point. Unless you missed a contribution, no exercise can take place after 31 May 2017 and any exercise form must be received by 4:30pm (UK time) on 31 May What if my maturity date is delayed? If you have missed a contribution or contributions into your Savings Account, you may have the right to exercise your option and, if you wish transfer your shares, after 31 May For any such instructions accepted after 31 May 2017, provided we have received your valid instruction by 4.30 pm (UK time) on a Friday we will aim to exercise your instruction on the third Business Day following such day. How much does it cost to buy and sell my shares immediately? Shares will be purchased at the option price of either 9.60 or There is no charge to exercise your option and purchase your shares, however if you choose the one day sale facility, commission is charged on the sale of these shares. The commission is 0.25% of the value of the sale with a minimum fee of and will be deducted from the proceeds of your sale. How will I receive my sale proceeds? Computershare Plan Managers will arrange to send your sales proceeds by BACS to the account advised when you input the transaction. Please allow 3-5 working days following the settlement date for the funds to arrive into your nominated bank account. When do I have to complete my instructions if I want to buy and/or sell my shares on 1 December 2016? Your instruction must be input and confirmed by 4.30pm GMT on 28 November What happens to the small amount of cash left over after I purchase the shares (Residual)? If you decide to exercise your option there may be a small residual sum left over which cannot purchase a whole share, you have 2 choices: Donate the amount to charity. Diageo s nominated charity for 2016/2017 is MercyCorps - Registered Charity Number: SC Registered Charity Number Scotland: For more detailed information please visit their website mercycorps.org.uk Have this amount transferred to your nominated bank account.

7 YOUR questions answered (Continued) How do I sell my shares in the future if I have chosen to Hold all? Your shares will be held in your Sharestore account and can be sold by contacting Capita Share Dealing Services from 5 December 2016, for full information on how to sell your Sharestore shares please log onto our website and click on the Sharestore link at the top of the screen. What happens if I have missed any payments? For every payment missed, the maturity date of your plan will be deferred by one month and you will continue to have deductions from your pay until you have completed your savings plan, for a maximum of 6 payments. What tax will I pay? You will not pay Income Tax or National Insurance if you choose to Exercise your option. Your savings are taken from your pay after Income Tax and National Insurance have been deducted. Any profit you make from selling shares may be taxed as a capital gain. Profit is calculated as the difference between the sale proceeds and the cost (based on the option price) of the shares sold. An individual can make an aggregate gain of up to 11,100 in the current tax year, from all sources (not just Sharesave) before being liable for Capital Gains Tax. For more detailed information regarding Capital Gains Tax log onto HMRC website: or contact an Independent financial advisor. If you are subject to tax in another country, you must check if you have any tax liability under that countries tax regime. What happens if I leave? For full information on what will happen if you leave please refer to the Sharesave leavers factsheet on our website or contact the Diageo Shareplans helpline on What happens if I do nothing? Your choice to buy the shares at the option price will lapse 6 months after your maturity date, you will be entitled to a full refund of your savings (and, if applicable, your tax free bonus) only. How do I find out more? If you need more information about your Diageo Sharesave plan please call the Computershare Sharesave helpline on or visit our website and click on the Sharesave link at the top of the screen. Who should I contact with any technical issues? If you are experiencing any issues logging onto the Computershare website or have any queries regarding the online functionality please contact the Computershare Sharesave Helpline on

8 IMPORTANT information If you are subject to the Diageo Dealing in Securities Code you can exercise your option, but you must obtain clearance to deal if you wish to sell your shares. Important information for US taxpayers participating in the UK Sharesave plan. The following information is applicable to you if you are currently or if you become a US taxpayer (US taxpayers include US citizens and green card holders, whether living in the US or not, and non-us citizens who are living in the US and are subject to US tax). As a participant in the Diageo UK Sharesave plan, you could become liable to US tax penalties under Section 409A of the US Internal Revenue Code. We have amended the UK Sharesave plan to bring UK Sharesave options held by US taxpayers within an exemption under Section 409A. The exemption applies if options held by US taxpayers are exercised by 15 March in the year after the year that options first become exercisable. Please note that this means that if you are or become a US taxpayer, you may not be able to take advantage of the full 6 month exercise period. For example, if you currently participate in Sharesave and you are in a Plan that becomes exercisable on 1 December 2016 you will need to exercise this plan by 15 March Should you require any further information regarding any possible tax implications you may wish to consult an independent financial adviser. Share Certificates If you wish to receive a share certificate (instead of transferring your shares to the Diageo Sharestore) or wish to transfer the shares to another person contact the Shares Office in writing. NISA S You may wish to consider transferring your shares into an Individual Savings Account (NISA). If you are considering this you should select Hold All from the drop down menu on the website. Once your shares have been deposited into your Diageo Sharestore account you then have 90 days to select and transfer the shares to your preferred NISA provider. You will need to request a share certificate for the amount of shares you wish to transfer to your NISA. You can do this by downloading a form from Please remember that share prices can go down as well as up, it is important that you make yourself aware of the current market price of a Diageo plc share when deciding whether or not to exercise your option to buy shares at the option price. If you are in any doubt about the suitability of any action, please contact a financial adviser. If your instruction is input after 4.30pm (GMT) on 28 November 2016 you should allow up to 10 business days from receipt of your request for your exercise instructions to be processed. It must be emphasised that this document is only a guide and if you require any financial advice you should consult an independent financial adviser. In the event of any conflict between this document and the rules of the plan, the rules of the plan will prevail.

9 Contact Details Computershare Plan Managers is a trading name of: 1. Computershare Investor Services PLC (registered in England, Company No ): and 2. A group of entities compromising amongst others EES Corporate Trustees Limited (registered in England, Company No ), EES Capital Trustees Limited (registered in England, Company No ), EES Trustees Limited (registered in England, Company No ) and EES Services (UK) Limited (registered in England, Company No ). The registered address of each of the companies is: The Pavilions, Bridgwater Road, Bristol BS13 8AE. Computershare Investor Services PLC and EES Capital Trustees Limited are both authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. Please visit the following website to read the Computershare Plan Managers legal notice: Disclaimer.aspx Diageo Shares Office Edinburgh Park 5 Lochside Way Edinburgh EH12 9DT The.Registrar@ diageo.com Computershare diageoshareplans Tel: +44 (0) open 8.30am to 5.30pm Monday to Friday excluding bank holidays. Diageo@computershare.co.uk Fax: +44 (0) B68G D01