Diageo.s geographic alignment

Diageo PLC
27 January 2005



Press Release

                                                                 27 January 2005

                         Diageo's geographic alignment

Diageo announced on 8 September 2004 a new geographic organisation comprising
North America, Europe and International. The composition of the new geographical
operating units is as follows:

Diageo Europe consists of the following regions and countries:

  • Great Britain, Ireland
  • Northern Europe - the Nordics, Germany, France, Benelux, Austria,
    Switzerland and the Baltics
  • Southern and Eastern Europe - Greece, Turkey, Italy, Poland, Hungary,
    Czech Republic, Slovakia, the former Yugoslavia, Cyprus, Malta, Israel,
    Romania, Bulgaria, Albania and the former Soviet Union excluding the Baltics
  • Iberia - Spain, Portugal and the Canary Islands

Diageo International consists of the following regions and countries:

  • Latin America and the Caribbean
  • Asian markets including the People's Republic of China
  • Africa
  • Middle East and India
  • Australia and New Zealand
  • Global Duty Free

There has been no change to the composition of the Diageo North America
operating unit although the reported and organic results have changed as a
result of new disclosure of corporate revenues and costs.

For the year ending 30 June 2005 and going forward, Diageo will present
separately certain corporate revenues and costs. These corporate revenues and
costs are in respect of central costs including finance, human resources and
legal as well as certain information system, service centre, facilities and
employee costs that are not directly allocated to the geographical operating
units. Additionally, they also include the revenues and costs related to rents
receivable in respect of properties not used by Diageo in the manufacture, sale
or distribution of premium drinks and the results of Gleneagles Hotel.

Results for the years ended 30 June 2004 and 2003 and the six-month period ended
31 December 2003 reflecting the new organisation are shown below.



Amounts in £ millions except volume which is equivalent unit cases millions
North America                                                                         Reported movement Organic movement
                                                                   Year ended June 30
                                                               2004              2003                 %                %
Volume                                                         44.3              43.9                 1                3
Turnover                                                      2,641             2,742               (4)                9
Net sales (after deducting excise duties)                     2,220             2,283               (3)               10
Marketing                                                       359               369               (3)                9
Operating profit before exceptional items                       757               773               (2)               12
Europe                                                                                Reported movement Organic movement

                                                                   Year ended June 30
                                                               2004              2003                 %                %
Volume                                                         40.9              40.4                 1                2
Turnover                                                      3,847             3,746                 3                1
Net sales (after deducting excise duties)                     2,535             2,500                 1              (1)
Marketing                                                       435               434                 0              (2)
Operating profit before exceptional items                       666               646                 3                0

International                                                                         Reported movement Organic movement

                                                                   Year ended June 30
                                                               2004              2003                 %                %
Volume                                                         36.9              35.0                 5                7
Turnover                                                      2,340             2,252                 4               11
Net sales (after deducting excise duties)                     1,864             1,791                 4               12
Marketing                                                       245               223                10               16
Operating profit before exceptional items                       646               636                 2               10
Corporate                                                          Year ended June 30 Reported movement Organic movement
                                                               2004              2003                 %                %
Turnover                                                         63                62                 2                3
Net sales (after deducting excise duties)                        63                62                 2                3
Operating profit / (loss) before exceptional                  (158)             (153)               (3)              (8)
items

Total excluding discontinued operations                            Year ended June 30 Reported movement Organic movement
                                                               2004              2003                 %                %
Volume                                                        122.1             119.3                 2                4
Turnover                                                      8,891             8,802                 1                6
Net sales (after deducting excise duties)                     6,682             6,636                 1                6
Marketing                                                     1,039             1,026                 1                6
Operating profit before exceptional items                     1,911             1,902                 0                7



Six-Month period ended December 31, 2003

North America

Volume                                                               23.4
Turnover                                                            1,457
Net sales (after deducting excise duties)                           1,228
Marketing                                                             202
Operating profit before exceptional items                             453
Europe


Volume                                                               23.5
Turnover                                                            2,247
Net sales (after deducting excise duties)                           1,481
Marketing                                                             268
Operating profit before exceptional items                             432
International


Volume                                                               20.0
Turnover                                                            1,327
Net sales (after deducting excise duties)                           1,057
Marketing                                                             142
Operating profit before exceptional items                             374
Corporate

Turnover                                                               29
Net sales (after deducting excise duties)                              29
Operating profit / (loss) before exceptional items                   (78)
Total excluding discontinued operations


Volume                                                               66.9
Turnover                                                            5,060
Net sales (after deducting excise duties)                           3,795
Marketing                                                             612
Operating profit before exceptional items                           1,181

Organic movement, net sales (after deducting excise duties) and operating profit
before exceptional items are measures not specifically used in the consolidated
financial statements themselves (non-GAAP measures). The group's management
believe these measures provide valuable additional information for users of the
financial statements in understanding the group's performance, since the
measures focus on that element of the core brand portfolio that is common across
periods and provide information on those elements of performance which local
managers are most directly able to influence. However, whilst these measures are
important in the management of the business, they should not be viewed as
replacements for, but rather as complementary to, the comparable GAAP measures
such as turnover and reported (rather than organic) movements in individual
profit and loss account captions. For further explanation of these non-GAAP
measures and how they are calculated, please see our Annual Report 2004.

--ENDS--

Investor enquiries:

Catherine James [phone] or [e-mail]

Michael Mulhall [phone] or [e-mail]

Media enquiries:

Jane Richardson [phone] or [e-mail]

About Diageo plc

Diageo is the world's leading premium drinks business. With its global vision,
and local marketing focus, Diageo brings to consumers an outstanding collection
of beverage alcohol brands across the spirits, wine and beer categories
including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain
Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo
trades in some 180 markets around the world and is listed on both the New York
Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information
about Diageo, its people, brands and performance, visit us at www.diageo.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange