Interim Statement

1
Interim Statement 22 February 2001 PRESENTATION
TO ANALYSTS AND INVESTORS
Supplementary Schedules
2
Supplementary Schedules

• 1. Analysis of turnover
• 2. Analysis of organic turnover growth
• 3. Analysis of operating profit
• 4. Analysis of organic operating profit growth
• 5. Geographic analysis of organic operating
  profit growth - Spirits and Wine
• 6. Geographic analysis of organic operating
  profit growth - Beer
• 7. Merger costs and synergy
• 8. Analysis of marketing expenditure
• 9. Analysis of share of profits of associates
• 10. Calculation of economic profit
• 11. Return on average total invested capital
• 12. Risk management policies
• 13. Guinness UDV brand performance
• 14. Guinness UDV local priority brand market
  units
• 15. Spirits and Wine 10 leading brand market
  units
• 16. Category and consumer takeaway growth for
  Pillsbury North America
• 17. QSR Worldwide operations
• 18. TSR Ranking in peer group

3
Analysis of turnover
Supplementary Schedule 1
6 months to 31 Dec 2000 m
6 months to 31 Dec 1999 m
Reported movement
Organic growth
Spirits and Wine Europe 1,395 1,442
(3) 6 North America 895 787 14 4 Asia
Pacific 325 282 15 9 Latin America 275 256 7 3 R
est of World 114 110 4 10 3,004 2,877 4 5 Beer
Europe 631 810 (22) 1 North
America 139 108 29 18 Asia Pacific 114 112 2
9 Latin America 50 56
(11) 4 Rest of World 126 109 16 26 1,060 1,195
(11) 6 Premium drinks Europe 2,026 2
,252 (10) 4 North
America 1,034 895 16 6 Asia Pacific 439 394 11 9
Latin America 325 312 4 3 Rest of
World 240 219 10 18 4,064 4,072 - 6 Quick
Service Restaurants 519 468 11 1 Packaged
Food 2,259 2,056 10 2 Total 6,842 6,596 4 4
4
Analysis of organic turnover growth6 months to
31 December
Supplementary Schedule 2

• 1999 Acqui- Organic
• 1999 Exchange Disposals restated sitions growth
  2000
• m m m m m m m
• Spirits and Wine 2,877 59 (100) 2,836 15 153 3,004
  
• Beer 1,195 (14) (184) 997 - 63 1,060
  
• Premium drinks 4,072 45 (284) 3,833 15 216 4,064
• Quick Service
• Restaurants 468 48 - 516 - 3 519
• Packaged Food 2,056 191 (74) 2,173 50 36 2,259
• Total 6,596 284 (358) 6,522 65 255 6,842

5
Analysis of operating profit
Supplementary Schedule 3
6 months to 31 Dec 1999 m
6 months to 31 Dec 2000 m
Percentage movement
Organic growth

• Premium drinks (see Supp. Sch. 3a) 834 775 8 14
• Quick Service Restaurants
• North America 81 93 (13)
  (12)
• Europe / Middle East / Africa 11 8 - -
• Rest of World 7 4 - -
• 99 105 (6) (7)
• Packaged Food 302 271 11 11
• Total 1,235 1,151 7 11

6
Analysis of operating profit - Premium drinks
Supplementary Schedule 3a
6 months to 31 Dec 1999 m
6 months to 31 Dec 2000 m
Percentage movement
Organic growth

• Spirits and Wine
• Europe 282 262 8 14
• North America 217 185 17 17
• Asia Pacific 89 64 39 26
• Latin America 72 73 (1)
  (1)
• Rest of World 33 30 10 14 693 614 13 14
• Beer
• Europe 80 107 (25) 11
• North America 1 - - -
• Asia Pacific 21 18 17 11
• Latin America 13 8 - -
• Rest of World 26 28
  (7) 4 141 161 (12) 13
• Premium drinks
• Europe 362 369 (2) 13
• North America 218 185 18 18
• Asia Pacific 110 82 34 23
• Latin America 85 81 5 4
• Rest of World 59 58 2 9

7
Analysis of organic operating profit growth6
months to 31 December
Supplementary Schedule 4

• 1999 Acqui- Organic
• 1999 Exchange Disposals restated sitions growth
  2000
• m m m m m m m
• Spirits and Wine 614 7
  (18) 603 3 87 693
• Beer 161 (7)
  (29) 125 - 16 141
• Premium drinks 775 -
  (47) 728 3 103 834
• QSR 105 1 - 106 - (7) 99
• Packaged Food 271 -
  (5) 266 6 30 302
• 1,151 1 (52) 1,100 9 126 1,235

8
Geographic analysis of organic operating profit
growth - Spirits and Wine6 months to 31 December
Supplementary Schedule 5
Acqui- Organic Organic 1999 Exchange Dispo
sals sitions growth 2000 growth m m m m m
m

• Europe 262 1 (15) - 34 282 14
• North America 185 - - - 32 217 17
• Asia Pacific 64 5 (1) 3 18 89 26
• Latin America 73 2 (2) - (1) 72
  (1)
• Rest of World 30 (1) - - 4 33 14
• 614 7 (18) 3 87 693 14

9
Geographic analysis of organic operating profit
growth - Beer6 months to 31 December
Supplementary Schedule 6
Organic Organic 1999 Exchange Disposals grow
th 2000 growth m m m m m

• Europe 107 (5)
  (30) 8 80 11
• North America - - - 1 1 -
• Asia Pacific 18 1 - 2 21 11
• Latin America 8 - 1 4 13 -
• Rest of World 28 (3) - 1 26 4
• 161 (7) (29) 16 141 13

10
Merger costs and synergy
Supplementary Schedule 7
6 months to 31 Dec 2000 m
Year to 30 June 2000 m
Total expected m
6 months to 31 Dec 1999 m

• Exceptional charge 45 - 83 647
• Cash spend 53 28 128 580
• Merger synergy
• Spirits and Wine 90 132 194 263
• Corporate 11 13 23 27
• Total 101 145 217 290

Expected annualised total m
Year to 30 June 2000 m
6 months to 31 Dec 2000 m
6 months to 31 Dec 1999 m
11
Analysis of marketing expenditure
Supplementary Schedule 8

• 6 months to 6 months to Organic
• 31 Dec 2000 31 Dec 1999 growth m m
• Spirits and Wine 414 369 13
• Beer 111 124 (4)
• Premium drinks 525 493 9
• Quick Service Restaurants 18 17 n/a
• Packaged Food 478 424 4
• 1,021 934 6

12
Analysis of share of profits of associates
Supplementary Schedule 9
6 months to 6 months to 31 December 31
December 2000 1999 m m

• Spirits and Wine 116 109
• Beer 7 6
• Premium drinks 123 115
• Packaged Food 16 6
• Total 139 121

13
Calculation of economic profit
Supplementary Schedule 10

• 6 months to 6 months to
• 31 Dec 2000 31 Dec 1999
• m m
• Operating profit before exceptional
  items 1,235 1,151
• Associates 139 121
• Goodwill amortisation (11)
  (7)
• Effective tax at 25 (1999 - 26.2)
  (341) (331)
• 1,022 934
• Cost at 9 of weighted average invested capital
  (709) (696)
• Economic profit 313 238

See Supplementary Schedule 11
14
Return on average total invested capital
Supplementary Schedule 11

• 6 months to 6 months to
• 31 Dec 2000 31 Dec 1999
• m m
• Profit after tax ? 1,022 934
• Average net assets ? 6,011 5,244
• Average net borrowings 5,624 5,898
• Average goodwill 4,117 4,335
• Average total invested capital ? 15,752 15,477
• Return on average total invested
  capital 13.0 12.1
• ? Before exceptional items and interest
• ? Including amounts in respect of merger
  integration costs (net of tax)
• ? Average total invested capital is calculated
  using balance sheets at beginning and end of
  period

15
Risk management policies
Supplementary Schedule 12

• 1. Foreign exchange exposure
• a. Transaction exposure
• For currencies in which there is an active
  market, between 80 and 100 of currency exposure
  is hedged (using simple forward contracts) up to
  18 months forward.
• Cover for the major currencies for the six
  months to 31 December 2000 was at the following
  approximate average rates
• US dollar 1.57/
• Euro 1.55/
• Cover for the major currencies for the year to
  30 June 2001 will be at the following
  approximate average rates
• US dollar 1.55/
• Euro 1.57/
• b. Net profit exposure
• Forecast future profits (net of interest
  expense) in US dollars and Euro currencies are
  hedged on a rolling 12 month basis primarily
  using zero cost currency option cylinders.
• Cover for the major currencies for the six
  months to 31 December 2000 is within the
  following ranges
• US dollar 1.59 - 1.64/
• Euro 1.41 - 1.60/
• Cover for the major currencies for the year to
  30 June 2001 is within the following ranges
• US dollar 1.58 - 1.63 /
• Euro 1.53 - 1.61 /
• c. Balance sheet exposure

16
Exchange impact on reported PBET
Supplementary Schedule 12a

• 6 months to 6 months to Expected
• 31 December 31 December full year
• 2000 1999 2001
• / cylinder bands 1.59 - 1.64 1.59 -1.67 1.58 -
  1.63
• / cylinder bands 1.41 - 1.60 1.37 - 1.45 1.53 -
  1.61
• Average spot exchange rate
• pre-hedging / 1.46 1.62
• Average exchange rate
• post hedging /
  1.61 1.62 1.59

17
Guinness UDV brand performance6 months to 31
December
Supplementary Schedule 13
Net Sales Value
Volume

• 2000 1999 2000 1999
• 000 000 m m
• 9 GPBs old definition excl. RTD
  Guinness 28,932 28,430 1,279 1,184
• Exclude Gordons
  (2,813) (2,974) (71)
  (72)
• GPB RTDs 884 305 128 47
• Guinness 5,658 5,481 404 379
• 8 GPBs including RTD and Guinness 32,661 31,242 1
  ,740 1,538
• 35 LPBs old definition 8,393 7,806 421 357
• 30 LPBs new definition 7,946 7,704 443 412

GPB new definition global priority brands
including RTDs where appropriate (Johnnie Walker
Scotch whiskies, Guinness stout, Smirnoff vodka,
JB Scotch whisky, Baileys Cream liqueur, Cuervo
tequila, Tanqueray gin, Malibu speciality
spirit) LPB local briority brands RTD ready
to drink 9 litre case equivalents at
constant exchange rates
18
Guinness UDVLocal priority brand market units
Supplementary Schedule 14

• Brand Market
• Archers Peach GB
• Beaulieu Vineyard wines USA
• Bells Extra Special GB
• Bells Extra Special South Africa
• Buchanans Mexico
• Buchanans USA
• Buchanans Venezuela
• Budweiser Ireland
• Bundaberg Rum Australia
• Cardhu Spain
• Carlsberg Ireland
• Dimple/Pinch Korea
• Gilbeys GW Whisky India
• Goldschlager USA
• Gordons Gin GB

Brand Market Gordons Gin USA Harp Ireland Jack
Daniels GB Malta Ghana Malta Nigeria Old
Parr Japan Pimms GB Red Stripe Jamaica Red
Stripe USA Romana USA Rumple Minze USA Smithwicks
Ireland Southern Comfort GB Spey
Royal Thailand Total Single Malts USA













New additions to definition post formation of
Guinness UDV
19
Local priority brand market unitsRemoved from
previous definition
Supplementary Schedule 14a

• Brand Market
• Buchanans Colombia
• Dimple/Pinch Greece
• Dreher Brazil
• Gilbeys Gin Philippines
• Gordons Space Greece
• IW Harper Gold Medal Japan
• JC Margaritas USA
• Logan Delux Portugal
• Old Eight Brazil

Brand Market Old Parr Colombia Picon France Smirn
off Ice GB Stolichnaya USA Stoli Lemon
Ruski Australia Tanqueray Vodka USA UDL
RTD Australia White Horse Fine Old Japan Total
Classic Malts USA
20
Spirits and Wine 10 leading brand market units6
months to 31 December 2000
Supplementary Schedule 15
Volume growth
Net sales growth

• Smirnoff Total in Great Britain 25 73
• Smirnoff Total in the United States (11) 5
• JB in Spain 11 12
• Cuervo in the United States (5) 7
• Baileys in the United States 3 2
• JW Black in the United States 6 11
• Tanqueray in the United States 5 12
• Bells in Great Britain - (6)
• Baileys in Great Britain 6 5
• JW Red in the United States (3) 1

21
Supplementary Schedule 16
Category and consumer takeaway growth for
Pillsbury North America

ending 30 December 2000
Category and consumer takeaway growth excluding
shelf stable vegetables and dessert and
specialty products
22
Worldwide
Supplementary Schedule 17

• 6 months to Year to
• 31 Dec 2000 30 June 2000
• System sales m 5,694 11,417
• Comparable restaurant sales growth
  (5.5) 0.1
• Net restaurant openings 184 635
• At 31 Dec 2000 At 30 June 2000
• Company restaurants 925 861
• Franchise restaurants 10,420 10,300
• Total number of restaurants 11,345 11,161

23
North America
Supplementary Schedule 17a

• 6 months to Year to
• 31 Dec 2000 30 June 2000
• System sales m 4,445 8,987
• Comparable restaurant sales growth
  (6.6) (0.4)
• Net restaurant openings 42 309
• At 31 Dec 2000 At 30 June 2000
• Company restaurants 632 588
• Franchise restaurants 8,035 8,037
• Total number of restaurants 8,667 8,625

24
Europe, Middle East Africa
Supplementary Schedule 17b

• 6 months to Year to
• 31 Dec 2000 30 June 2000
• System sales m 749 1,485
• Comparable restaurant sales growth
  (1.2) 2.2
• Net restaurant openings 75 196
• At 31 Dec 2000 At 30 June 2000
• Company restaurants 213 210
• Franchise restaurants 1,362 1,290
• Total number of restaurants 1,575 1,500

25
Latin America
Supplementary Schedule 17c

• 6 months to Year to
• 31 Dec 2000 30 June 2000
• System sales m 263 473
• Comparable restaurant sales growth
  1.8 3.5
• Net restaurant openings 27 53
• At 31 Dec 2000 At 30 June 2000
• Company restaurants 34 32
• Franchise restaurants 483 458
• Total number of restaurants 517 490

26
Asia Pacific
Supplementary Schedule 17d

• 6 months to Year to
• 31 Dec 2000 30 June 2000
• System sales m 237 472
• Comparable restaurant sales growth
  (4.4) 1.1
• Net restaurant openings 40 77
• At 31 Dec 2000 At 30 June 2000
• Company restaurants 46 31
• Franchise restaurants 540 515
• Total number of restaurants 586 546

27
TSR ranking in peer group
Supplementary Schedule 18

• Rank Company TSR
• 1st Heineken 164
• 2nd Anheuser-Busch 112
• 3rd Nestlé 91
• 4th Colgate-Palmolive 68
• 5th Allied Domecq 51
• 6th PepsiCo 31
• 7th McDonalds 30
• 8th Diageo 23
• 9th Unilever 16
• 10th Carlsberg 5
• 11th Tricon 1
• 12th Philip Morris 1
• 13th Procter Gamble 1
• 14th Heinz (3)
• 15th Coca-Cola (5)
• 16th Gillette (26)
• 17th Kellogg (40)
• 18th Campbell Soup (41)

Total shareholder return (TSR) measures relative
return from the movement in the share price
together with the dividends received. TSR above
is measured from 1 January 1998 using average of
share price from 1 July 1997 to 1/1/98 as
starting point and using last 6 months up to
19/02/01 as end point.