United Spirits Ltd

Dear Shareholders,

In the past year, Diageo India has demonstrated resilience, agility and an unwavering commitment to delivering value for all our stakeholders with the belief that success is not just about financial performance, it is about anticipating consumer shi_s, fostering a culture of innovation, strengthening partnerships and making a meaningful impact on society. By all these measures, FY 2024-25 was another year of purposeful progress for your Company.

Performance Review

In FY 2024-25, your company registered a healthy financial performance, achieving its growth targets, including double-digit growth in the Prestige & Above (P&A) segment. Profitability remained healthy, with consolidated PAT of Rs. 1,582 Crores and a net profit margin of 13.1%. Standalone PAT stood at Rs. 1,558 Crores with a net profit margin of 13.5%, expanding by 119 bps year-on-year.

The Board of Directors has recommended an interim dividend of Rs. 4 per share for FY 2024-25, underscoring our commitment to delivering sustained shareholder value. The Board has also recommended a final dividend of Rs. 8 per share subject to Shareholders' approval for FY 2024-25.

Board and Leadership Changes

Towards the end of FY 2024-25, Hina Nagarajan,

Managing Director and CEO, was appointed as President, Diageo Africa. On behalf of the Board, I extend my sincere appreciation to Hina for her outstanding leadership and strategic vision over the past four years. Under her stewardship, Diageo India accelerated its premiumisation agenda, strengthened its market position through innovative offerings, and became debt-free for the first time since acquisition. She was also instrumental in supporting the Indian alcobev startup ecosystem through strategic investments in brands such as Greater Than, Hapusa Gins, Quaffine Coffee Liqueur, Sober Non-Alcoholic Spirits, and Pistola Craft Agave Spirits.

I am pleased to welcome Praveen Someshwar as Managing Director and CEO of Diageo India. Praveen is a dynamic business leader with over three decades of experience in driving business transformation, strategy, and execution within the media and FMCG industries. With a sharp strategic mindset and a strong focus on executional excellence, his leadership will be pivotal as your Company enters its next phase of growth.

I would also like to welcome the three new directors who have been inducted to the board. Dr. Indu Bhushan, Amrita Gangotra and Mukesh Bhutani bring varied skills, competencies and expertise that will strongly support our growth agenda.

People, Sustainability, and Governance

Our success is rooted in the strength of our iconic brands and the exceptional talent within Diageo India. We are committed to nurturing this talent by fostering an inclusive environment where diversity thrives, and every individual can contribute their best. Your Company continues to build an organisation of the future by nurturing talent, driving digital transformation, and embedding sustainability into every aspect of its operations. A range of initiatives were introduced this year to accelerate leadership development, deepen inclusion and diversity, and enhance employee engagement, reinforcing your Company's position as a top employer.

Sustainability remains at the core of your Company's long-term vision. With significant achievements across its ‘Spirit of Progress' ESG action plan, your Company is leading industry efforts in water stewardship, renewable energy adoption, circularity, and regenerative agriculture.

At the foundation of this progress is a strong governance framework, ensuring that business is conducted with integrity, transparency, and responsibility. This commitment to ethical leadership reinforces your Company's long-term value creation strategy.

A Future-Focused Vision

The macroeconomic environment has become ever more complex and volatile. Globally, political and economic uncertainty, shifts in trade policies and tariffs, fluctuating commodity prices, and currency volatility have created challenges for businesses. In India, companies across sectors are grappling with changes such as in inflationary pressures and supply chain uncertainties, and their impact on consumer choice and demand.

But the long-term potential of India's beverage alcohol industry remains strong, driven by the country's economic transformation, rising affluence, and evolving consumer aspirations. Your Company is well-positioned to harness these opportunities through a disciplined focus on premiumisation, innovation, and purpose-led growth.

In addition, the new Free Trade Agreement recently announced by the UK and India government will reduce tariffs in many industries, with whisky being one of the major beneficiaries. India is the world's largest whisky market, with Diageo India being a leading player with a wide array of brands, and this landmark treaty will enable improved accessibility of Scotch for Indian consumers and boost the growth of alcobev and hospitality industries.

I extend my deepest gratitude to Diageo Plc, our employees, partners, customers, and shareholders for their continuous support and trust. Together we will continue to deliver exceptional experiences to our consumers and make a positive impact on our communities.

Thank you for being part of this exciting journey.