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Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer. Our products are sold in more than 180 countries around the world. Our brands include Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness. Our performance ambition is to be one of the best performing, most trusted and respected consumer products companies in the world. We are proud of the brands we make and the enjoyment they give to millions. We are passionate about alcohol playing a positive role in society as part of a balanced lifestyle. This is central to our purpose to help people celebrate life.

Cover image: Diageo Cambus Cooperage, Scotland. Image inspired by a submission to our employee competition ‘The Big Picture’, by Graduate Trainee, Rory Slater. Rory’s photo won the ‘Proud of what we do’ category. Each competition category celebrates one of Diageo’s values.

For more information about Diageo, our people and our Contents brands, visit www.diageo.com. Visit Diageo’s global responsible drinking resource, Strategic report www.DRINKiQ.com, for information, initiatives, and ways to share best practice. — Our business model 02 — Our strategy 04 In addition, Diageo has prepared a Sustainability & Responsibility Performance Addendum 2017, which is available — Our global reach 06 on www.diageo.com. It outlines further economic, social and — Our brands 07 environmental disclosures in line with the Global Reporting — How we measure performance: Initiative Sustainability G4 Guidelines and the United Nations key performance indicators 08 Global Compact advanced reporting criteria. — Chairman’s statement 10 — Chief Executive’s statement 12 Diageo is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). — Market dynamics 14 This is the Annual Report 2017 of Diageo plc for the year ended 30 June 2017 and — Our strategy in action 16 it is dated 27 July 2017. The Annual Report is made available to all shareholders on — How we protect our business: risk Diageo’s website (www.diageo.com). management and principal risks 19 This report includes names of Diageo’s products, which constitute trademarks or trade names which Diageo owns or which others own and license to Diageo for — Group financial review 22 use. In this report, the term ‘company’ refers to Diageo plc and the terms ‘group’ and ‘Diageo’ refer to the company and its consolidated subsidiaries, except as the — Business reviews 28 context otherwise requires. — Category review 38 Diageo’s consolidated financial statements have been prepared in accordance with — Sustainability & Responsibility review 40 International Financial Reporting Standards (IFRS) as adopted for use in the European Union (EU) and IFRS as issued by the International Accounting Standards Board (IASB). — Definitions and reconciliations of non- References to IFRS hereafter should be construed as references to both IFRS, as adopted GAAP measures to GAAP measures 52 by the EU, and IFRS, as issued by the IASB. Unless otherwise indicated, all financial information contained in this document has been prepared in accordance with IFRS. Unless otherwise stated in this document, percentage movements refer to organic Governance movements which are non-GAAP financial measures. For a definition of organic movement and reconciliations of non-GAAP measure to GAAP measures see — Board of Directors and Company page 52. Share, unless otherwise stated, refers to value share. Unless otherwise Secretary 58 stated in this document, the percentage figures presented are reflective of a year-on-year comparison, namely 2016-2017, only. — Executive Committee 59 The brand ranking information presented in this report, when comparing information — Corporate governance report 60 with competitors, reflects data published by sources such as Impact Databank. Market — Report of the Audit Committee 65 data information and competitive set classifications are taken from independent industry sources in the markets in which Diageo operates. © Diageo plc 2017 — Directors’ remuneration report 68 — Directors’ report 88 Diageo plc is incorporated as a public limited company in England and Wales. Diageo was incorporated as Arthur Guinness Son and Company Limited on 21 October 1886. The group was formed by the merger of Grand Metropolitan Public Financial statements 90 Limited Company (GrandMet) and Guinness PLC (the Guinness Group) in December 1997. Diageo plc’s principal executive office is located at Lakeside Drive, Park Royal, Additional information London NW10 7HQ and its telephone number is +44 (0) 20 8978 6000. for shareholders 157 Cautionary statement: this document contains ‘forward-looking’ statements. For our full cautionary statement, please see on page 159.