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About Us
Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wine. These brands include Johnnie Walker, Crown Royal, J&B, Windsor, Buchanan's and Bushmills whiskies, Smirnoff, Ciroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness. Many of our brands have been around for generations, while some have been developed more recently to meet new consumer tastes and experiences. Our great range of brands and geographic spread means that people can celebrate with our products at every occasion no matter where they are in the world. This is why 'celebrating life every day, everywhere' is at the core of what we do.
Trading in approximately 180 markets, we employ over 20,000 talented people around the world. With offices in 80 countries, we also have manufacturing facilities across the globe including Great Britain, Ireland, United States, Canada, Spain, Italy, Africa, Latin America, Australia, India and the Caribbean. And the people who work for us across these markets really care for the legacy of each of our brands. We want them to be enjoyed by consumers for generations to come, which means we also take our role as a producer of alcohol very seriously. Diageo is at the forefront of industry efforts to promote responsible drinking. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). The following information is registered with the Registrar of Companies for England and Wales: Full name: Diageo plc Registered Number: 23307 Registered office: Lakeside Drive, Park Royal, London, NW10 7HQ Place of Registration: England and Wales

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History

AboutUs Our Values CorporateGovernance Our Strategy

Our People Our Regions DiageoGlobalSupply

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Our Values
At the heart of everything we do are our company values. We stand by them being the set of behaviours that we expect all our people to embrace to further our ambitions for our business, our people and our communities.
Our values are:

We're passionateaboutcustomersand consumers- our curiosity and customer and consumer insights drive growth. We care for our brands. We're courageous in pursuing their full potential. We're innovative, constantly searching for new ideas that drive growth and spinning them across our business. We give ourselves and each other the freedomto succeedbecause this fosters an entrepreneurial spirit. We trust each other, we're open and challenging. We always behave as a team - when we're together and when we're apart. We're proudof whatwe do - we act sensitively with the highest standards of integrity and social responsibility. We enjoy and benefit from diversity. We will strive to be the best - we are restless, always learning, always improving. We constantly set high standards and then try hard to exceed them. We deliver results, win where we compete and celebrate our success. We valueeachother - we seek and benefit from diverse people and perspectives. We strive to create mutually fulfilling relationships and partnerships. To demonstrate how serious we are about our values we carry out an annual employee values survey. We ask every one of our people how they believe we are demonstrating our values - as an organisation, as leaders and as teams.

Corporate Governance
Boards of directors are responsible for the governance of their companies, that is to say, the way in which companies are directed and controlled. The responsibilities of the board include setting the company's strategic aims and its values, providing the leadership to put them into effect, supervising and constructively challenging the management who are responsible for the day to day operational running of the business and reporting to shareholders on their stewardship. We continue to believe that Diageo has a board with the appropriate balance of diverse skills, experience, independence and knowledge of the company to enable them to discharge these responsibilities effectively. The description in this report of Diageo's corporate governance structures and procedures and of the work of the board and the executive committee is intended to give a sense of how this is approached.
The principal corporate governance rules applying to UK companies listed on the London Stock Exchange (LSE) for the year ended 30 June 2011 are contained in The UK Corporate Governance Code as updated and published by the Financial Reporting Council (FRC) in May 2010 (the Code) and the UK Financial Services Authority (FSA) Listing Rules, which require companies listed on the Main Market of the LSE to describe, in their annual report, their corporate governance from two points of view: the first dealing generally with their application of the Code's main principles and the second dealing specifically with non-compliance with any of the Code's provisions. The two descriptions together are designed to give shareholders a picture of governance arrangements in relation to the Code as a criterion of good practice. Diageo has complied with all relevant provisions set out in the Code throughout the year. The Code is publicly available under the heading 'Corporate Governance' at the website of the FRC, www.frc.org.uk. Diageo must also comply with corporate governance rules contained in the FSA Disclosure and Transparency Rules as well as certain related provisions in the Companies Act 2006 (the Act). As well as being subject to UK legislation and practice, as a company listed on the New York Stock Exchange (NYSE), Diageo is subject to the listing requirements of the NYSE and the rules of the Securities and Exchange Commission (SEC). Compliance with the provisions of the US Sarbanes-Oxley Act of 2002 (SOX), as it applies to foreign issuers, is continually monitored. Whilst the directors believe that the group's corporate governance policies continue to be robust, changes have been and will continue to be made in light of the rules that are in place at any point in time. Diageo follows UK corporate governance practice; differences from the NYSE corporate governance standards are summarised within the corporate governance report. The way in which the Code's principles of good governance and relevant provisions of SOX are applied is described within this corporate governance report. Board committees' terms of reference

Audit committee Nomination committee Remuneration committee Summary of non-executive directors' terms of appointment Independent remuneration consultants

Our Strategy
Diageo is the leading premium spirits business in the world by volume, by net sales and by operating profit and is one of a small number of premium drinks companies that operate globally across spirits, beer and wine. Diageo creates long term value for shareholders through its outstanding brands, its geographical breadth and the expertise of its people.
Diageo manages a broad range of brands across several categories. It manages eight of the worlds top twenty premium spirits brands, including Smirnoff, the number one brand by volume and Johnnie Walker, the number one brand by value. In beer, Diageo owns the only global stout brand, Guinness, and a range of lager brands sold primarily in Africa. Diageos wine brands are sold predominantly in North America and Great Britain across a full range of price points. Diageo is a global company with its products sold in more than 180 markets around the world. In the developed markets of North America and Europe, Diageo has built scale and strong routes to market. Diageo is also the number one international spirits company in the emerging markets of Africa, Latin America and Asia. These rapid growth markets now comprise approximately one third of Diageos net sales, up from 22% in 2005. Through continued organic growth driven by infrastructure investments and targeted acquisitions, these markets are expected to contribute 50% of Diageos net sales by 2015. In the majority of markets, Diageos brands reach customers and consumers through local teams with strong local expertise and networks. In countries where Diageo has not established its own subsidiary, it looks to expand organically through business partners and third party distributors. Diageo is also committed to explore opportunities to expand geographically through acquisitions, within its financial criteria. The acquisition of companies with strong local routes to market and brands that appeal to the growing number of middle class consumers are particularly appealing. The acquisition of Mey ki in Turkey and the investment in ShuiJingFang in China are two examples of this strategy in action. Diageo combines the benefits of global scale with local insights into consumer trends and behaviours to deliver world class marketing campaigns. For example, the Keep Walking campaign on Johnnie Walker has been running globally for over 10 years, based on the universal appeal of personal progress. The marketing campaign is true to this insight although the local creative executions look different around the world. Likewise, consumer insights inform Diageos innovation launches and pipeline. The premiumisation of scotch to appeal to consumers of luxury brands and the development of ready to serve cocktails as at-home consumption increases have been particularly successful. Diageo is also focused on driving category growth with its customers through shopper insights. The sales ambition is to win at the point of purchase. The Diageo Way of Selling programme equips four thousand salesmen with best practice tools and processes. It builds capabilities in sales execution, customer service and the efficient use of trade investment so that Diageo becomes an indispensable business partner to its customers. Diageo is committed to building a sustainable business across its value chain through its Sustainability & Responsibility strategy. The way in which Diageo promotes a positive role for alcohol in society; respects the natural resources, communities and people it relies on; and champions a culture of good governance and ethics are all important drivers of growth. The company and its employees are proud of the responsible manner in which its brands are marketed and the positive role that moderate consumption of its brands plays in the lives of many people. Diageo seeks to be at the forefront of industry efforts to promote responsible drinking and works with other stakeholders to combat alcohol misuse.

Diageo recognises that it operates in a world where many of the natural resources that the business relies on, such as fossil fuels and water, are limited. In 2007 Diageo set highly challenging environmental targets covering water efficiency, the reduction of carbon dioxide, polluting power of water and waste-to-landfill, and in 2009 Diageo expanded these to include the sustainability of its packaging. Measuring and managing its environmental impact is not only important for the planet, it is essential for the financial sustainability of Diageos supply chain and its business. Diageo is also proud of the positive impact it has on the communities in which it operates. For example, from its start in 2007, the Water of Life programme has brought clean and safe drinking water to millions of people in Africa. In Latin America, the Learning for Life programme provides vocational training and has directly transformed the lives of tens of thousands of young adults. Diageo also recognises that the way in which it conducts its business, treats its people and works with local stakeholders can have an impact on community development. Diageo believes that industry leading performance will be delivered through great leadership. The Diageo Leadership Performance Programme builds leadership capabilities and creates the conditions for all employees to grow and perform at their best.

Marketparticipation
Since 2005 up to the year ended 30 June 2011 Diageo managed its business through four regions: North America, Europe, International, and Asia Pacific. The North American region, comprising the United States and Canada, accounts for the largest proportion of Diageos net sales and operating profit. Europe is comprised of Great Britain, Ireland, Iberia, Northern Europe, Southern Europe, and Russia and Eastern Europe. The International region is made up of three business units: Latin America and the Caribbean (including Mexico), Africa and Global Travel and Middle East (GTME). The Asia Pacific region comprises South Korea, Japan, the Peoples Republic of China, India and other Asian markets, Australia and New Zealand. In the past financial year roughly two-thirds of net sales were derived from developed markets (mainly North America and Western Europe) and one-third from emerging markets (mainly Latin America and the Caribbean, Africa and Asia Pacific). In 2005 approximately four-fifths of net sales arose in emerging markets and one-fifth in emerging markets. During the year ended 30 June 2011 the group reviewed its operating model across its businesses and commenced a restructuring programme that is expected to be fully implemented by 30 June 2013. The main objective of the programme is to improve the effectiveness and productivity of the groups operations and to deploy resources closer to the market and in those geographical regions where the potential for growth is greatest. This review will result in changes to the groups regional structure and the way it organises its central functions. The principal countries impacted are the United Kingdom, Ireland and the United States. On 25 May 2011 Diageo announced that the International region from 1 July 2011 will have two autonomous regions: Diageo Latin America and Diageo Africa. The Global Travel business will be divided and each specific duty free operation will be allocated to the market of the geographic region where it is located. The Middle East business will become part of Asia Pacific.

Productoffering
Diageo classifies 14 brands as global strategic brands: Johnnie Walker, Smirnoff, Baileys, Crown Royal, Captain Morgan, Jose Cuervo, J&B, Buchanans, Windsor, Ketel One vodka, Croc, Tanqueray, Bushmills and Guinness. These brands are the main focus for the business and 78% of the groups marketing spend supports these brands. In aggregate, for the year ended 30 June 2011, they comprised 66% of Diageos net sales. Brand performance for the year ended 30 June 2011 is now reported for the 14 strategic brands above which replaces the brand performance reporting of eight global priority brands disclosed in prior years and reflects the way the brands are managed.

Businesseffectiveness
Over the long term, Diageos strategy continues to focus on driving growth and increasing shareholder value.

Regions
The marketing, sales and distribution of our brands are organised across four geographic regions: Diageo North America; Diageo Europe; Diageo International, which includes Diageo Latin America & Caribbean and Diageo Africa; and Diageo Asia-Pacific.
North America Eurpoe International Asia Pacific

We sell products in approximately 180 markets within these four regions. In our financial year ending 30 June 2010, North America generated around 34 per cent of net sales, Europe 28 per cent, International 27 per cent and Asia Pacific 11 per cent.

Diageo Global Supply

We are very proud of our Diageo Global Supply operations across spirits, wine and beer. We operate production and distribution facilities that include maltings, distilleries, breweries, packaging plants, maturation warehouses, cooperages, vineyards, wineries and distribution warehouses.
Approximately 80 per cent of total production is undertaken in Diageo production areas located in Australia, Canada, Cameroon, Ghana, Ireland, Jamaica, Kenya, Nigeria, Uganda, the United Kingdom (most importantly Scotland), and the USA. The remaining 20 per cent of output is produced in many countries by joint-venture businesses or under contract with commercial partners. It is exciting to be able to follow the production of many of our brands through the life cycle of their development directly to the consumer celebration. We take our role as a producer of products seriously and have set ourselves stretching targets to reduce our impact on the environment for the benefit of the planet, our communities and our business. This is of particular relevance across our Supply sites and we are very proud to have been awarded the new Carbon Trust standard for our supply operation in Scotland.