DIAGEO

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DIAGEO About me...

Late 40’s ; married with three children

1st degree in chemical engineering , 2nd degree in MBA (marketing)

Multi-national companies since graduating in 1985

John Holt Plc: 4 years

CMB Packaging: 2 years

Coca Cola International: 14 years

Diageo: 5 + years

1st executive director role at 35 years as Marketing Director in Coca-Cola

1st GM role in Ghana with Coca-Cola

Current job - 3rd CEO with the last two being in listed companies

1st African CEO of Guinness Ghana in 2006

Proud of leading the most capitalized company on the NSE

Inspiring African leaders My Purpose

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DIAGEO About me… purpose and Leadership

1. Authenticity Building trust

2. Consistently delivering great results Strong commercial orientation

Turning strategy to execution at pace

Great entrepreneurial skills

3. Creating conditions Strong, clear leadership

Attention to people development

4. Creating possibilities Competitive person

Breaking barriers

Innovation: what's going to be new?

5. Growing self Commitment to personal growth

Learn quickly

Creating interdependencies

DIAGEO What is my role as CEO?

Leadership for shaping the destiny of the company in East Africa through short, medium & long term holistic performance

Accountability for delivering superior TSR as measured by profit delivery, healthy balance sheet (including cash), ROIC and ability to pay dividend

Providing strategic direction through annual AOP preparation + orchestrating a flawless execution of the plan to beat the competition = brands/RTC/new geographies/Innovation/renovation, etc

Identifying and growing quality talent and ensuring a successful pipeline and depth of ‘bench strength’ of future leaders

Building amazing relationships with all stakeholders and championing our ‘force for good’ agenda in our communities

Shaping the regulatory environment by role modeling and engagement

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DIAGEO

Challenges

Political environment Kenya elections in 2012

S Sudan oil sharing deal with North

Al Shabaab terrorist attacks

ICC trial for Kenya PEV

Regulation/Over regulation

Punitive taxation/ADCA

Protectionist tendencies by governments

Start-up/ running complexity

Infrastructure

Operational issues

Escalating costs (energy, oil, RM)

Security of supply chain (sustainability)

Increasing competition

Talent capability challenges

What keeps me awake at night?

USD/Shilling depreciation

High consumer inflation

Economic Recession

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DIAGEO But there are also good tailwind opportunities…

Governments across the region are working together to better road and rail networks thereby boosting trade

New sea/air ports are being developed as well as expanding the current facilities to world class status

The World Bank predicts GDP growth of 5%+ in East Africa markets for 2012 and 2013

With world trade growth forecasted to be flat for the next five years, this is indeed a positive indicator

Emerging middle class

Improved infrastructure Increased FDI and Diaspora remittances

GDP growth

The EAC should see higher FDI in the coming years as FDI inflows have increased by 53% to $1.72b in the last four years

Diaspora remittances have increased from $ 25m per month in 2005 to $ 80m per month in Kenya

DIAGEO Tailwind opportunities continued…

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Urbanization

Regional integration

•Currently under 25% of East Africans live in urban areas

•This compares to 50% globally, suggesting that Urbanisation (and subsequent increased consumerism) will be a key trend for East Africa

Tatu city artistic impression

EAC Regional Integration will lead to;

•Harmonization of taxes and standards

•Elimination of non-tariff barriers

•Seamless borders

•Reduced oil costs with Uganda going commercial

DIAGEO

About EABL

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DIAGEO

EABL is the most celebrated business in every market in Eastern Africa

Introducing EABL

Vision Statement

Market-leading brands across all price points across Total Beverage Alcohol

Focused on delivering sustainable top and bottom line performance

Building strong routes to market supported by a secure supply base

Committed to the responsible sales and marketing of iconic brands leveraging our deep consumer understanding

Devoted to developing our talent and having a positive impact in the communities in which we operate

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DIAGEO

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Kenya Uganda Tanzania

EABL Share of Branded Alcohol Value by Key Market 2011

Beer

Spirits

We have beer and spirits brands across all price points in three Key markets and four Develop markets

10 EABL also operates in S Sudan, Rwanda, Burundi and E DRC

Price

points Lower Higher

SOURCE: AC NIELSEN VALUE SHARE 2011

DIAGEO Proven strong business

Marketing

tailored locally

Strong consumer

insight-driven

innovation

Strong

customer

partnerships

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DIAGEO Key strategic pillars to deliver our vision

Talent/Culture Super Engagement at 60%

Customer Partnerships No. 1 on trade; Top 3 CPG company (off trade)

Supply/Cost Leadership Establish cost leadership

Winning in Our Markets IMC in key markets ultimately

TAB portfolio Beat the competition in every market

Reputation Force for Good: Provide 500K people with clean water annually

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DIAGEO So how do I spend my time as CEO?

Growing revenue and profitability – focusing on market development /cost optimization initiatives

Managing resources – making investment choices: capex/ marketing/ technology

Increasing share in existing markets and exploring possibilities in new geographies

Building innovation capacity/capability

Growing customer/consumer base and strengthening brand health

Accessing local value generating business imperatives

Raw materials components

Talent base

Business risk management: footprint + mitigation

Managing multiple stakeholders - board members, shareholders & employees

Embedding internal governance and enhancing corporate reputation

CSR, CCE & RD

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DIAGEO What I am most proud of

EABL’s great performance annually

Uganda business turnaround

Growth of our spirits portfolio

Tusker re-launch

Continued strong contribution of Senator Keg to performance + community RD agenda

SBL acquisition

No. 1 capitalized stock on the NSE

Quality/super engaged talent

Improving company reputation (Tax payer awards + CSR initiatives)

Mwanza Brewery 14

DIAGEO

Example of how we leverage on consumer insights to drive innovations

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DIAGEO Continually monitor customer insights…

Changes in consumer lifestyle (health-concern, less time for social gatherings)

Increasing health awareness among consumers increases affinity to consume and search for healthier options

Busy lifestyle reduces time spent in bars etc for social gatherings – at home consumption gains relevance and acceptance

Develop more convenient formats (packaging, size formats etc) for off-trade

Introduce and/or support healthier options (low calorie, no sugar, non-alcoholic…)

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DIAGEO And we positively respond to them with innovation

Fantastic taste but Low carb. beer

Brewed to completion for a crisp, refreshing taste

4% ABV

Only natural ingredients

330 ml returnable bottles and can (eventually)

6 months Shelf life.

Tusker branded – authentic and credible (Tusker has male

credibility & the offering reaches out to females)

Tusker Lite

330ml

“Tusker reflects our African spirit”

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DIAGEO In Summary, running our businesses in our environment today is about;

Regulatory concerns ( Excise Tax/ Alcohol

Act/ Anti-Trust laws)

Fiscal pressures in our markets – exchange

rate volatility, high inflation, unstable capital

markets

Growing competition

Political uncertainties across the region

Complexities of new Market entry

Cost inflationary pressures

Growth of illicit/ Parallels/ Counterfeits

To accelerate value growth, and become the most celebrated business in every market in Eastern Africa

GDP growth @ +5%, population growth @ + 3%

EAC integration

Emerging middle class + increased urbanization

Significant Spirits opportunity

Low per cap consumption presently

Increased FDI and Diaspora remittances (Africa’s

huge remittance, of $ 40b in 2010)

Opportunities in new markets

Leveraging on Overcoming &

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DIAGEO

So, we have the “right” to win

Delivering great value to our shareholders and investors as the no. 1 company on

the Nairobi Stock exchange

ONE of the leading taxpayers in Kenya

No. 1 Brewery in the region

Voted Supplier of choice

A world Class distribution network

Beer Category Leader in Kenya across segments-From value to premium providing

Choice for consumers.

We have the top achievers in Kenya in our employment

Excellent relationships with our partners that drive mutual business benefits and

performance

Diageo Support and expertise

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DIAGEO My last word to you – Long term personal principles

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Thank you

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