Selected Financial Data
Summarized Financial Information
Adjustments to Financial Statements: Proportionate Consolidation
Adjusted Financial Ratios: Proportionate Consolidation (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Assets (ROA)

Diageo PLC selected financial data

US$ in millions, translated from GBP £

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Share of after tax results of associates and joint ventures	426)	330)	346)	273)	219)	265)
Investments in associates and joint ventures	5,406)	4,049)	3,575)	3,706)	3,171)	3,306)
Profitability Ratio
ROA (equity method investments only)¹	7.87%	8.15%	9.69%	7.38%	6.89%	8.02%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

¹ 2014 Calculation
ROA (equity method investments only) = 100 × Share of after tax results of associates and joint ventures ÷ Investments in associates and joint ventures
= 100 × 426 ÷ 5,406 = 7.87%

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Item	Description	The company
Share of after tax results of associates and joint ventures	This item represents the entity proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment.	Diageo PLC share of after tax results of associates and joint ventures decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Investments in associates and joint ventures	This item represents the carrying amount on the entity balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment losses recognized.	Diageo PLC investments in associates and joint ventures increased from 2012 to 2013 and from 2013 to 2014.
ROA (equity method investments only)	A profitability ratio calculated as share of after tax results of associates and joint ventures divided by investments in associates and joint ventures.	Diageo PLC ROA of equity method investments deteriorated from 2012 to 2013 and from 2013 to 2014.

Summarized financial information for Diageo PLC affiliates, subsidiaries, associates, and joint ventures

US$ in millions, translated from GBP £

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Non-current assets	7,001)	6,137)	6,490)	6,863)	6,203)	6,548)
Current assets	9,693)	9,382)	8,354)	8,578)	7,325)	7,811)
Total assets	16,693)	15,519)	14,845)	15,441)	13,528)	14,359)
Non-current liabilities	1,956)	1,699)	2,139)	2,332)	1,755)	1,937)
Current liabilities	3,141)	3,078)	2,436)	2,489)	2,640)	2,892)
Total liabilities	5,097)	4,776)	4,575)	4,821)	4,394)	4,829)
Net assets	11,596)	10,742)	10,270)	10,620)	9,133)	9,530)
Total liabilities and equity	16,693)	15,519)	14,845)	15,441)	13,528)	14,359)
Net sales	7,588)	5,739)	7,253)	6,400)	5,847)	5,439)
Profit for the year	1,265)	1,122)	1,060)	867)	730)	859)

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

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Item	Description	The company
Net assets	Amount of equity, excluding noncontrolling interest, attributable to the equity method investment of the entity.	Net assets of Diageo PLC affiliates, subsidiaries, associates, and joint ventures increased from 2012 to 2013 and from 2013 to 2014.
Profit for the year	The amount of net income (loss) reported by an equity method investment of the entity.	Profit for the year of Diageo PLC affiliates, subsidiaries, associates, and joint ventures increased from 2012 to 2013 and from 2013 to 2014.

Recognition of Diageo PLC proportionate share of affiliates, subsidiaries, associates, and joint ventures assets and liabilities instead of net equity.

Diageo PLC, adjustments to financial statements

US$ in millions, translated from GBP £

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Weighted average percentage interest in affiliates	46.62%	37.69%	34.81%	34.89%	34.72%	34.70%
Adjustment to Current Assets
Current assets (as reported)	12,614)	14,243)	11,795)	11,126)	10,700)	10,032)
Add: Current assets of affiliates (adjustment)	4,519)	3,536)	2,908)	2,993)	2,543)	2,710)
Current assets (adjusted)	17,133)	17,779)	14,703)	14,120)	13,243)	12,742)
Adjustments to Total Assets
Total assets (as reported)	38,784)	41,559)	36,347)	30,729)	29,943)	29,258)
Less: Investments in associates and joint ventures (adjustment)	5,406)	4,049)	3,575)	3,706)	3,171)	3,306)
Add: Total assets of affiliates (adjustment)	7,783)	5,849)	5,167)	5,388)	4,696)	4,982)
Total assets (adjusted)	41,160)	43,360)	37,940)	32,411)	31,469)	30,934)
Adjustment to Current Liabilities
Current liabilities (as reported)	8,193)	9,188)	7,780)	7,637)	6,070)	6,446)
Add: Current liabilities of affiliates (adjustment)	1,465)	1,160)	848)	869)	916)	1,004)
Current liabilities (adjusted)	9,657)	10,348)	8,628)	8,505)	6,987)	7,450)
Adjustment to Total Liabilities
Total liabilities (as reported)	25,965)	28,124)	25,271)	21,429)	22,577)	22,894)
Add: Total liabilities of affiliates (adjustment)	2,376)	1,800)	1,592)	1,682)	1,526)	1,676)
Total liabilities (adjusted)	28,342)	29,924)	26,863)	23,112)	24,102)	24,570)
Adjustment to Sales
Sales (as reported)	23,611)	25,666)	23,734)	20,559)	19,945)	19,859)
Add: Net sales of affiliates (adjustment)	3,538)	2,163)	2,525)	2,233)	2,030)	1,887)
Sales (adjusted)	27,149)	27,829)	26,258)	22,793)	21,974)	21,746)

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

Diageo PLC, Financial Data: Reported vs. Adjusted

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Diageo PLC, adjusted financial ratios

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Current Ratio
Reported current ratio	1.54	1.55	1.52	1.46	1.76	1.56
Adjusted current ratio	1.77	1.72	1.70	1.66	1.90	1.71
Net Profit Margin
Reported net profit margin	16.08%	16.05%	13.31%	14.36%	12.57%	13.20%
Adjusted net profit margin	13.98%	14.80%	12.03%	12.95%	11.41%	12.05%
Total Asset Turnover
Reported total asset turnover	0.61	0.62	0.65	0.67	0.67	0.68
Adjusted total asset turnover	0.66	0.64	0.69	0.70	0.70	0.70
Financial Leverage
Reported financial leverage	3.37	3.56	4.00	3.77	4.86	5.62
Adjusted financial leverage	3.57	3.72	4.17	3.98	5.10	5.94
Return on Assets (ROA)
Reported ROA	9.79%	9.91%	8.69%	9.61%	8.37%	8.96%
Adjusted ROA	9.22%	9.50%	8.32%	9.11%	7.97%	8.47%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Diageo PLC adjusted current ratio improved from 2012 to 2013 and from 2013 to 2014.
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	Diageo PLC adjusted net profit margin ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	Diageo PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Diageo PLC adjusted financial leverage ratio decreased from 2012 to 2013 and from 2013 to 2014.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Diageo PLC adjusted ROA improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

Diageo PLC, Financial Ratios: Reported vs. Adjusted

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	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Current assets	12,614)	14,243)	11,795)	11,126)	10,700)	10,032)
Current liabilities	8,193)	9,188)	7,780)	7,637)	6,070)	6,446)
Liquidity Ratio
Current ratio¹	1.54	1.55	1.52	1.46	1.76	1.56
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted current assets	17,133)	17,779)	14,703)	14,120)	13,243)	12,742)
Adjusted current liabilities	9,657)	10,348)	8,628)	8,505)	6,987)	7,450)
Liquidity Ratio
Adjusted current ratio²	1.77	1.72	1.70	1.66	1.90	1.71

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 12,614 ÷ 8,193 = 1.54

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 17,133 ÷ 9,657 = 1.77

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Diageo PLC adjusted current ratio improved from 2012 to 2013 and from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company	3,797)	4,118)	3,158)	2,952)	2,507)	2,621)
Sales	23,611)	25,666)	23,734)	20,559)	19,945)	19,859)
Profitability Ratio
Net profit margin¹	16.08%	16.05%	13.31%	14.36%	12.57%	13.20%
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company	3,797)	4,118)	3,158)	2,952)	2,507)	2,621)
Adjusted sales	27,149)	27,829)	26,258)	22,793)	21,974)	21,746)
Profitability Ratio
Adjusted net profit margin²	13.98%	14.80%	12.03%	12.95%	11.41%	12.05%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Net profit margin = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Sales
= 100 × 3,797 ÷ 23,611 = 16.08%

² Adjusted net profit margin = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Adjusted sales
= 100 × 3,797 ÷ 27,149 = 13.98%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	Diageo PLC adjusted net profit margin ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Sales	23,611)	25,666)	23,734)	20,559)	19,945)	19,859)
Total assets	38,784)	41,559)	36,347)	30,729)	29,943)	29,258)
Activity Ratio
Total asset turnover¹	0.61	0.62	0.65	0.67	0.67	0.68
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted sales	27,149)	27,829)	26,258)	22,793)	21,974)	21,746)
Adjusted total assets	41,160)	43,360)	37,940)	32,411)	31,469)	30,934)
Activity Ratio
Adjusted total asset turnover²	0.66	0.64	0.69	0.70	0.70	0.70

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Total asset turnover = Sales ÷ Total assets
= 23,611 ÷ 38,784 = 0.61

² Adjusted total asset turnover = Adjusted sales ÷ Adjusted total assets
= 27,149 ÷ 41,160 = 0.66

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	Diageo PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Total assets	38,784)	41,559)	36,347)	30,729)	29,943)	29,258)
Equity attributable to equity shareholders of the parent company	11,523)	11,661)	9,088)	8,149)	6,167)	5,208)
Solvency Ratio
Financial leverage¹	3.37	3.56	4.00	3.77	4.86	5.62
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted total assets	41,160)	43,360)	37,940)	32,411)	31,469)	30,934)
Equity attributable to equity shareholders of the parent company	11,523)	11,661)	9,088)	8,149)	6,167)	5,208)
Solvency Ratio
Adjusted financial leverage²	3.57	3.72	4.17	3.98	5.10	5.94

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to equity shareholders of the parent company
= 38,784 ÷ 11,523 = 3.37

² Adjusted financial leverage = Adjusted total assets ÷ Equity attributable to equity shareholders of the parent company
= 41,160 ÷ 11,523 = 3.57

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Diageo PLC adjusted financial leverage ratio decreased from 2012 to 2013 and from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company	3,797)	4,118)	3,158)	2,952)	2,507)	2,621)
Total assets	38,784)	41,559)	36,347)	30,729)	29,943)	29,258)
Profitability Ratio
ROA¹	9.79%	9.91%	8.69%	9.61%	8.37%	8.96%
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company	3,797)	4,118)	3,158)	2,952)	2,507)	2,621)
Adjusted total assets	41,160)	43,360)	37,940)	32,411)	31,469)	30,934)
Profitability Ratio
Adjusted ROA²	9.22%	9.50%	8.32%	9.11%	7.97%	8.47%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ ROA = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Total assets
= 100 × 3,797 ÷ 38,784 = 9.79%

² Adjusted ROA = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Adjusted total assets
= 100 × 3,797 ÷ 41,160 = 9.22%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Diageo PLC adjusted ROA improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

Diageo PLC (NYSE:DEO)

Analysis of Equity Method Investments

Selected Financial Data

Summarized Financial Information

Adjustments to Financial Statements: Proportionate Consolidation

Diageo PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Proportionate Consolidation (Summary)

Diageo PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Assets (ROA)