Diageo's Competitors

DIAGEO “Celebrating life, Every day, Everywhere”

Will Harrison
Bus. Finance
10/10/2012

TABLE OF CONTENTS

I. Quantitative Analysis_ _ _ _ _ _ _ _ _ _ _ _ _ 3-4
a. Performance Overview _ _ _ _ _ _ _ _ _ _ 3
b. Trends_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4
c. Industry Comparisons_ _ _ _ _ _ _ _ _ _ _ 4
II. Qualitative Analysis_ _ _ _ _ _ _ _ _ _ _ _ _ _ 5-7
III. Sales Pitch_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8
IV. References_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9

QUANTITATIVE In 2012, Diageo continued to be at the forefront of the alcoholic beverage industry. After all, we are the leading alcoholic beverage producer in the world. Over the past year, our company has continued to grow and has become an even stronger company
On the first day of the fiscal year, July 1, 2011, Diageo’s stock opened on the NYSE at $81.25 and closed at $81.87. On the final day of the fiscal year, June 30, 2012, Diageo opened at $103.49 and closed at $103.07. The overall trading price, for Diageo stock on the NYSE, increased by $21.82, roughly 27% of the opening price of the year. At the conclusion of the fiscal year, Diageo had roughly 623.78 million shares outstanding.
Over the past 3 years our Return on Equity (ROE) has been on a steady decline. For the previous fiscal year, our ROE was at 38.85%, down 5.22% from 2011. This decline in ROE is due to an increase in overall shareholder’s equity. We have seen slight increases and decreases in our Return on Assets. We ended the year at 9.22%, which was down 0.47% from 2011. For 2012, we saw a slight increase in our Dividend Payout Ratio, which was 52.4%. This figure was up 1.1% from 2011. With our net income in mind, this figure is very
We strive to maintain our reputation as being a responsible, reliable, and sustainable business. We believe that our emphasis on sustainability aids us greatly with not only maintaining our relationships but also our reputation. The employees of Diageo mean a great deal to us. We value the ideas and beliefs of our employees. At the beginning and end of each year, we send out an employee survey. This survey includes questions regarding: responsible drinking, contributions to communities, environmental sustainability, governance, ethics, and diversity. In 2011 and 2012, 85% and 89%, respectively, of our employees stated that they believe that we are running a responsible and sustainable business. Over the last five years, those numbers have continued to