DIAGEO LAC PRESIDENT S CALL 16 MAY 2018

Transcription

1 DIAGEO LAC PRESIDENT S CALL 16 MAY

2 LAC CONTINUES TO BE A REGION WITH ATTRACTIVE GROWTH OPPORTUNITIES DUE TO FAVORABLE DEMOGRAPHICS AND RISING INCOME % ~7m new LPA+ consumers per year* Millions of people 1.0% Wealthy Upper EMC Strong social upward mobility continues Population per income band** % 25% 72% 31% 30% 84% LPA population Total population * Total LAC / ** Wealthy (>$20K); Upper EMC ($10-20K); Middle EMC ($5-10K); Lower EMC ($2.5-5K); all based on annual income PPP Source: US Census Bureau, Euromonitor International Middle EMC Lower EMC Deprived 29% 23% 18% 11% 10% 5%

3 SPIRITS PENETRATION IS LOW COMPARED TO OTHER MARKETS, AND SCOTCH IS EXPECTED TO GROW NEARLY TWICE AS MUCH AS TBA Wine Spirits TBA Retail Value by Category Total LAC vs USA 11% 16% 25% 100% Forecast Volume CAGR Total LAC, excluding Venezuela 3.5% 33% 1.9% 2.1% Beer 73% 42% LAC USA TBA BEER SCOTCH Source: IWSR Value excludes RTD, Cider 3

4 IN SCOTCH, WE HAVE LEADING POSITION IN ALL KEY MARKETS AND CONTINUE TO GAIN SHARE Guatemala 72% Mexico 68% Diageo value share of scotch (%) Costa Rica 70% Panama 74% Venezuela 35% Colombia 76% Peru 63% Uruguay 51% Brazil 58% Source: Nielsen/Niscam Dec 2017 Chile 53% Argentina 64% Share growth Share decline 4

5 DIAGEO HAS BEEN DRIVING MOST OF CATEGORY GROWTH Scotch retail value growth key players USD billion Diageo Competitor 1 Competitor Source: IWSR

6 WE CONTINUE TO RECRUIT AND RE-RECRUIT CONSUMERS WITH JOHNNIE WALKER Keep Walking campaign in the Dominican Republic Mexico F1 activation INSPIRING STORIES COMPELLING DRINKS STRATEGY GIFTING BLUE LABEL Limited edition packs that revisited the evolution of the striding man in Brazil Johnnie Walker Blue Label pop up store in Peru 6

7 CLICK HERE TO PLAY VIDEO 7

8 BLACK & WHITE IS SUCCESSFULLY RECRUITING NEW CONSUMERS AND INJECTING VIBRANCY INTO THE CATEGORY Mexico NSV growth 37% H1 F18 vs H1 F17 Mexico value share 31% Segment leader #1 Brand in Segment Brazil NSV growth 120% H1 F18 vs H1 F17 Brazil value share 38% Segment leader Colombia volume growth 5x Colombia value share 84% Source: Nielsen/Niscam Dec 2017 H1 F18 vs H1 F17 Segment leader 8

9 NET SALES IN NON SCOTCH CATEGORIES WERE UP 25% IN H1 F18* Organic net sale growth H1 F18* 78% Vodka Rum Liqueur Tequila Gin Cachaca 16% 45% 4% 53% 6% Vodka Rum Liqueur Tequila Gin Ypioca *excludes LAC travel retail 9

10 WE CONTINUE TO INVEST TO DEVELOP A STRONGER COCKTAIL CULTURE 10

11 Cautionary statement concerning forward-looking statements This document contains forward-looking statements. These 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, objectives and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of changes in interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or synergies, expected investments, the completion of any strategic transactions and restructuring programmes, anticipated tax rates, changes in the international tax environment, 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 inherent 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, those set out within the Risk factors section of the annual report on Form 20-F for the year ended 30 June 2017 filed with the US Securities and Exchange Commission (SEC). All oral and written forward-looking statements made on or after the date of this document and attributable to Diageo are expressly qualified in their entirety by the above. In addition, 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 forwardlooking 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. Other 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 The information in this document 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. Past performance cannot be relied upon as a guide to future performance. 11

12 CELEBRATING LIFE, EVERY DAY, EVERYWHERE 12