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2 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 My Purpose Inspiring African leaders 2

3 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

4 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 4

5 What keeps me awake at night? Challenges 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 Economic Recession USD/Shilling depreciation High consumer inflation Political environment Kenya elections in 2012 S Sudan oil sharing deal with North Al Shabaab terrorist attacks ICC trial for Kenya PEV 5

6 But there are also good tailwind opportunities GDP growth 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 Increased FDI and Diaspora remittances 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 Improved infrastructure 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

7 Tailwind opportunities continued Regional integration 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 Urbanization 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 7

8 About EABL 8

9 Introducing EABL Vision Statement EABL is the most celebrated business in every market in Eastern Africa 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 9

10 SOURCE: AC NIELSEN VALUE SHARE 2011 DIAGEO We have beer and spirits brands across all price points in three Key markets and four Develop markets 100% 90% EABL Share of Branded Alcohol Value by Key Market 2011 Beer 80% 70% 60% Spirits Lower Price points Higher 50% 40% 30% 20% 10% 0% Kenya Uganda Tanzania EABL also operates in S Sudan, Rwanda, Burundi and E DRC 10

11 Proven strong business Marketing tailored locally Strong consumer insight-driven innovation Strong customer partnerships 11

12 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) Winning in Our Markets IMC in key markets ultimately TAB portfolio Beat the competition in every market Supply/Cost Leadership Establish cost leadership Reputation Force for Good: Provide 500K people with clean water annually 12

13 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 13

14 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

15 Example of how we leverage on consumer insights to drive innovations 15

16 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 ) 16

17 And we positively respond to them with innovation Tusker Lite 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 reflects our African spirit 330ml 17

18 In Summary, running our businesses in our environment today is about; Leveraging on & Overcoming GDP +5%, population + 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 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 18

19 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 19

20 My last word to you Long term personal principles 20

21 Thank you 21