Slide 1: CAGNY 2023
4 B J = es . Constellation Brands WORTH REACHING FOR CAGNY 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that are based on certain assumptions, estimates, expectations, plans, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future
Slide 3: Forward-Looking Statements (Cont.)
FORWARD-LOOKING STATEMENTS (CONT.) In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, our forward-looking statements contained in this presentation are also subject to the risk, uncertainty, and possible v
Slide 4: Use of Non-GAAP Financial Measures, Disclaimer, Caution Regarding Outdated Material
USE OF NON-GAAP FINANCIAL MEASURES, DISCLAIMER, CAUTION REGARDING OUTDATED MATERIAL, AND LOCATION OF DEFINED TERMS This presentation (including audio, video, and supplemental slides, if any) may contain non-GAAP financial measures. These and other non-GAAP financial measures, the purposes for which
Slide 5: Today's Presentation
TODAY’S PRESENTATION OUR CONSUMER-OBSESSION UNDERPINS EVERYTHING WE DO WE HAVE A WELL-CONSIDERED, EFFECTIVE STRATEGIC ROADMAP GROWTH AND VALUE CREATION REMAIN OUR CORE PROPOSITION 5
Slide 6: Our Deep Understanding of Consumer Trends Underpins Our Strategy
OUR DEEP UNDERSTANDING OF CONSUMER TRENDS UNDERPINS OUR STRATEGY 6
Slide 7: Why Beverage Alcohol?
WHY BEVERAGE ALCOHOL? GROWTH IN THE CONSUMER BASE SUPPORTS MARKET EXPANSION U.S. LDA U.S. BEVERAGE ALCOHOL POPULATION GROWTH DOLLAR SALES GROWTH (CY10 - CY20) (CY10 - CY20) 1% CAGR 1 3% CAGR 2 1. Source: United States Census Bureau, 2000 Decennial Census Profile of General Demographic Characteristic
Slide 8: Why a Higher-End Focus?
WHY A HIGHER-END FOCUS? CONSUMER-LED PREMIUMIZATION IS DRIVING HIGHER-END GROWTH HIGHER-END LOWER-END LOWER-END HIGHER-END LOW-END HIGH-END WINE WINE SPIRITS SPIRITS BEER BEER (FY19 Q3 LTM - FY23 Q3 LTM) DOLLAR SALES CAGR 12% -3% $10B CURRENT TOTAL DOLLAR SALES (FY23 Q3 LTM) $55B 8 Source: IRI, Tota
Slide 9: Capturing Further Consumer-Led Premiumization
CAPTURING FURTHER CONSUMER-LED PREMIUMIZATION U.S. TRACKED CHANNEL DOLLAR SALES GROWTH OF BEVERAGE ALCOHOL CATEGORIES & PRICING SEGMENTS BEER WINE SPIRITS 48% 40% 47% 59% 53% 71% 69% 66% 76% 52% 60% 53% 41% 47% 29% 31% 34% 24% CY10 CY19 CY22 CY10 CY19 CY22 CY10 CY19 CY22 LOWER-END HIGHER-END 9 Sourc
Slide 10: Why a Diversified Portfolio?
WHY A DIVERSIFIED PORTFOLIO? VAST MAJORITY OF CONSUMERS DRINK ACROSS BEER, WINE & SPIRITS 88% GROWTH IN SHARE OF CONSUMERS SHARE OF CONSUMERS WHO DRINK… IN THE U.S. WHO DRINK ACROSS MULTIPLE CATEGORIES ACROSS MULTIPLE (FY19 Q3 LTM - FY23 Q3 LTM) DOLLAR CATEGORIES SALES IN ~300 THE U.S. (FY23 Q3 LTM)
Slide 11: Capturing Higher Consumer Spend
CAPTURING HIGHER CONSUMER SPEND BEVERAGE ALCOHOL DOLLARS PER BUYER (FY23 Q3 LTM) DRINK BEER, WINE $1,944 & SPIRITS DRINK TWO CATEGORIES $840 DRINK ONLY ONE $291 CATEGORY 11 Source: IRI, Total U.S. All Outlets, 52 weeks ending December 4, 2022 Average Household Beverage Alcohol Spend Per Year.
Slide 12: What Else Informs Our Strategy?
WHAT ELSE INFORMS OUR STRATEGY? BETTERMENT, FLAVOR, AND DIGITAL TRENDS ARE ALSO IMPORTANT GROWTH IN THE GROWTH IN FLAVOR PRODUCTS GROWTH IN 3-TIER E-COMMERCE BETTER-FOR-YOU SEGMENT IN IN BEVERAGE ALCOHOL BEVERAGE ALCOHOL SALES BEVERAGE ALCOHOL IN THE U.S. IN THE U.S. IN THE U.S. (CY19-CY22) (CY19-CY
Slide 13: Our Strategic Initiatives Continue Winning the Consumer, Delivering Growth, and Creating Value
OUR STRATEGIC INITIATIVES CONTINUE WINNING THE CONSUMER, DELIVERING GROWTH, AND CREATING VALUE 13
Slide 14: Our Strategic Initiatives
OUR STRATEGIC INITIATIVES 1 CONTINUE TO BUILD POWERFUL BRANDS THAT PEOPLE LOVE 2 DEVELOP CONSUMER-LED INNOVATIONS ALIGNED WITH EMERGING TRENDS 3 DEPLOY CAPITAL IN-LINE WITH DISCIPLINED AND BALANCED PRIORITIES 4 OPERATE IN A WAY THAT IS GOOD FOR BUSINESS AND GOOD FOR THE WORLD 14
Slide 15: A Portfolio of Powerful Brands
A PORTFOLIO OF POWERFUL BRANDS OUR BEER BUSINESS #1 SUPPLIER IN THE HIGH-END OF THE U.S. BEER MARKET OUR WINE AND SPIRITS BUSINESS A LEADING HIGHER-END WINE AND SPIRITS SUPPLIER 15
Slide 16: A Portfolio of Powerful Brands
A PORTFOLIO OF POWERFUL BRANDS BEER IN THE U.S. BEER IN THE U.S. #1 #2 #4 BEER MARKET 1 #2 BEER MARKET 1 #1 PINOT SAUVIGNON SUPER BEER IN THE BEER IN THE NOIR 1 BLANC 1 LUXURY #3 HIGH-END 1 #1 HIGH-END 1 WINE BRAND 1 IMPORT IN THE U.S. BEER #3 #6 MARKET 1 #1 HIGHER-END AMERICAN TRENDING BEER IN THE
Slide 17: Corona Extra
CORONA EXTRA A LONG-STANDING ICON WITH RE-INVIGORATED GROWTH HIGHLY EFFECTIVE MARKETING INVESTMENTS UNLOCKING GROWTH FROM BROADENED LDA CONSUMER DEMOGRAPHICS SCORING AD DOLLAR SALES BY CONSUMER DEMOGRAPHIC 2 TOP IN U.S. BEER CATEGORY 1 10% 32% 13% 32% FY19 FY23 2 SHARE OF VOICE Q3 LTM Q3 LTM ND POSI
Slide 18: Modelo Especial
MODELO ESPECIAL 2ND LARGEST BEER IN THE U.S. WITH CONTINUED GROWTH POTENTIAL SIGNIFICANT SHARE OPPORTUNITY NATIONALLY FURTHER UPSIDE BEYOND HISPANIC LDA CONSUMER MODELO ESPECIAL DOLLAR SHARE BY STATE 1 DOLLAR SALES BY CONSUMER DEMOGRAPHIC 2 30% 70% 45% 55% FY19 FY23 Q3 LTM Q3 LTM HISPANIC OTHER CONS
Slide 19: Pacifico
PACIFICO THE FASTEST GROWING MAJOR BEER BRAND IN THE U.S. ATTRACTING NEW GENERATIONS OF LDA CONSUMERS TO OUR PORTFOLIO HIGHER SHARE OF DOLLAR SALES FROM MILLENNIALS & LDA GEN Z CONSUMERS1 40% 33% 21% CAGR SIGNIFICANT DOLLAR SALES IN U.S. HOUSEHOLD PENETRATION OPPORTUNITY 1 2% 11% TRACKED CHANNELS (F
Slide 20: Kim Crawford
KIM CRAWFORD THE #1 NEW ZEALAND WINE BRAND IN THE U.S. EVOLVING INTO A LIFESTYLE BRAND WITH BROADER INTERNATIONAL OFFERINGS 14% DOLLAR SALES IN U.S. TRACKED CHANNELS # 1 SAUVIGNON BLANC IN THE CAGR (FY19 Q3 LTM - FY23 Q3 LTM) 1 U.S. WINE MARKET 3 4 SUPER PREMIUM 1.8M 8% PROSECCO IN # THE U.S. WINE M
Slide 21: Meiomi
MEIOMI THE #1 ULTRA PREMIUM WINE BRAND IN THE U.S. 15% DOLLAR SALES IN U.S. TRACKED CHANNELS 1 # PINOT NOIR IN THE U.S. WINE CAGR (FY19 Q3 LTM - FY23 Q3 LTM) 1 MARKET 3 ULTRA PREMIUM 1.8M 10% #3 CHARDONNAY IN THE U.S. WINE MARKET 3 CASES CAGR #5 ULTRA PREMIUM DEPLETIONS DEPLETIONS ROSÉ IN THE U.S. (
Slide 22: The Prisoner Wine Co.
THE PRISONER WINE CO. AN EXPANDED HIGH-GROWTH, HIGHER-END SET OF BRANDS WITH SIGNIFICANT GLOBAL AND OMNI-CHANNEL OPPORTUNITIES 31% DOLLAR SALES IN U.S. TRACKED CHANNELS (FY19 Q3 LTM - FY23 Q3 LTM) 1 1 # SUPER LUXURY CAGR ZINFANDEL 3 570k 23% #2 SUPER LUXURY WINE BRAND 3 CAGR #7 LUXURY WINE BRAND 3 #
Slide 23: High West
HIGH WEST A TOP 15 AMERICAN HIGHER-END WHISKEY BRAND IN THE U.S. 21% DOLLAR SALES IN U.S. TRACKED CHANNELS # 3 HIGHER-END AMERICAN RYE WHISKEY CONTINUED STRONG GROWTH IN ULTRA PREMIUM CAGR (FY19 Q3 LTM - FY23 Q3 LTM) 1 IN THE U.S. 3 AMERICAN WHISKEY SEGMENT IN THE U.S. 170k 14% (FY23 Q3 LTM) 3 CASES
Slide 24: Casa Noble & Mi Campo
CASA NOBLE & MI CAMPO RISING TEQUILA BRANDS DELIVERING SIGNIFICANT GROWTH IN THE U.S. AND KEY INTERNATIONAL METRO MARKETS 19% DOLLAR SALES IN U.S. TRACKED CHANNELS CONTINUED STRONG GROWTH IN CAGR (FY19 Q3 LTM - FY23 Q3 LTM) 1 HIGHER-END TEQUILA SEGMENT IN THE U.S. (FY23 Q3 LTM) 3 157k 29% CASES DEPL
Slide 25: A Holistic Approach to Betterment
A HOLISTIC APPROACH TO BETTERMENT LOWER ALCOHOL NON-ALCOHOLIC LOWER CALORIES LOWER / NO CALORIES ESTABLISHED BRANDS ALIGNED PART OF VENTURES WITH TREND PORTFOLIO ADDITIONAL OFFERINGS IN CY23 25
Slide 26: Broad Flavor Offerings
BROAD FLAVOR OFFERINGS COMPLETE RANGE OF “FLAVOR” BRANDS IN ONE PORTFOLIO TRADITIONAL HARD FMB SELTZERS 30% DOLLAR SALES IN U.S. TRACKED CHANNELS (FY19 Q3 LTM - 3 CAGR FY23 Q3 LTM) 1 READY-TO- WINE >50% OF CHELADA DRINK SPIRITS SPRITZERS SEGMENT DOLLAR SHARE SALES (FY23 Q3 LTM) 2 DEPLETIONS GROWTH 1
Slide 27: Accelerating Digital Transformation
ACCELERATING DIGITAL TRANSFORMATION BEVERAGE ALCOHOL OUR PORTFOLIO 3-TIER E-COMMERCE SALES IS OUTPACING REMAINS ELEVATED IN BEVERAGE ALCOHOL POST-PANDEMIC TIMES IN 3-TIER E-COMMERCE >4x above 12pts pre-COVID 1 above market 2 1. Source: IRI EMI through 11/27/22, CBI eCommerce Category Advisory Platfo
Slide 28: Deploy Capital in Line with Disciplined and Balanced Priorities
DEPLOY CAPITAL IN LINE WITH DISCIPLINED AND BALANCED PRIORITIES COMMITTED TO A DISCIPLINED FINANCIAL FOUNDATION BALANCING REINVESTMENT AND ADDITIONAL RETURNS DEPLOY EXCESS CASH THOUGHTFULLY AND PRUDENTLY 28
Slide 29: Committed to a Disciplined Financial Foundation
COMMITTED TO A DISCIPLINED FINANCIAL FOUNDATION FOCUSED ON TARGETING MAINTAINING A SOLID DIVIDEND GROWTH INVESTMENT GRADE RATING IN-LINE WITH EARNINGS TARGET NET TARGET DIVIDEND LEVERAGE RATIO PAYOUT RATIO ~3.0X ~30% 1 2 1. Net leverage ratio defined as debt net of cash divided by comparable basis E
Slide 30: Balancing Reinvestment and Additional Returns
BALANCING REINVESTMENT AND ADDITIONAL RETURNS DEPLOYING CAPITAL TO BUY-BACKS TARGETED TO AT LEAST ORGANIC INVESTMENTS COVER DILUTION WITH ABILITY TO TO SUPPORT GROWTH OPPORTUNISTICALLY DO MORE ADDITIONAL BEER BREWING REMAINING CAPACITY FOR CAPACITY FY23-26 OPPORTUNISTIC BUYBACKS 25-30M HL $1.2B 1 2
Slide 31: Deploy Excess Cash Thoughtfully and Prudently
DEPLOY EXCESS CASH THOUGHTFULLY AND PRUDENTLY ANY POTENTIAL ACQUISITIONS TO BE FOCUSED ON SMALL TARGETS TO FILL PORTFOLIO GAPS TARGET CRITERIA RECENT ACQUISITIONS CONSUMER-LED ACCRETIVE SYNERGISTIC 31
Slide 32: Serving as Good Stewards of Our Environment
SERVING AS GOOD STEWARDS OF OUR ENIVORNMENT MODELING REDUCING WATER STEWARDSHIP GHG EMISSIONS TARGETING TARGETING ~1.1 BILLION ~15% GALLONS REDUCTION OF WATER RESTORATION OF SCOPE 1 & SCOPE 2 BY FY25 GHG EMISSIONS BY FY25 32 1. From baseline fiscal year 2020 Scope 1 and Scope 2 emissions
Slide 33: Enhancing Social Equity Within Our Industry and Communities
ENHANCING SOCIAL EQUITY WITHIN OUR INDUSTRY AND COMMUNITIES WORKFORCE GENDER AND ETHNIC ENHANCING ECONOMIC DEVELOPMENT DIVERSITY REPRESENTATION GOALS IN COMMUNITIES WE OPERATE IN FEMALE FY26 GOAL 1 $100M REPRESENTATION 50% COMMITMENT TO FOCUS ON FEMALE FOUNDER INITIATIVE ETHNIC DIVERSITY FY26 GOAL 1
Slide 34: Enhancing Our Corporate Governance Profile
ENHANCING OUR CORPORATE GOVERNANCE PROFILE ALIGNMENT OF VOTING 100% OF BOARD POWER AND ECONOMIC ROTATION OF LEAD ELECTED BY HOLDERS OF OWNERSHIP OF ALL INDEPENDENT DIRECTOR CLASS A STOCK SHAREHOLDERS BETTER ALIGNED WITH INTRODUCTION OF SHAREHOLDERS, ANTI-PLEDGING POLICY ADVOCACY GROUPS AND PROXY ADV
Slide 35: Promoting Responsible Beverage Alcohol Consumption
PROMOTING RESPONSIBLE BEVERAGE ALCOHOL CONSUMPTION CHAMPIONING THE SAFE AND RESPONSIBLE ENJOYMENT OF BEVERAGE ALCOHOL IS FOUNDATIONAL TO WHO WE ARE RESPONSIBLE CONSUMPTION STRATEGIES IN ACTION WORKING WITH THE SUPPORTING PROGRAMS PROMOTING BREWERS’ VOLUNTARY TO PROMOTE MODERATE ANTI-DRUNK INITIATIVE
Slide 36: Our Path Forward Remains a Compelling Proposition
OUR PATH FORWARD REMAINS A COMPELLING PROPOSITION 36
Slide 37: Best-in-Class Beer Business
BEST-IN-CLASS BEER BUSINESS +12.6% +12.0% CONSECUTIVE +9.8% +6.3% QUARTERS OF DEPLETIONS GROWTH +8.8% +8.9% +7.6% +7.5% +7.8% +6.0% +5.5% +4.5% +3.0% Source: Company quarterly depletion growth rates from FY11 through FY23 Q3; highlighted percentages represent the depletion growth for the fiscal year
Slide 38: Best-in-Class Beer Business
BEST-IN-CLASS BEER BUSINESS NET SALES OPERATING INCOME 1 MEDIUM-TERM ~9% CAGR $6.1 $6.8 9%-10% GROWTH TARGETS $5.6 $5.2 7-9% BILLIONS ~40% AVERAGE OP. MARGIN 1 4%-5% $2.5 $2.7 GROWTH NET SALES GROWTH $2.0 $2.2 FY19 FY20 FY21 FY22 FY23 39-40% GUIDANCE OPERATING MARGIN 1 1. Operating margin and operat
Slide 39: Optimized Wine & Spirits Business
OPTIMIZED WINE & SPIRITS BUSINESS OUR NET SALES HAVE SHIFTED TO BE MAINLY OUR NET SALES ARE ALSO SHIFTING TO DRIVEN BY OUR HIGHER-END BRANDS 1 INTERNATIONAL MARKETS & DTC CHANNELS % LOWER-END % HIGHER-END US WHOLESALE DTC INTERNATIONAL 8% 11% 2% 4% 34% 62% 90% 85% 66% 38% FY19 2 FY23 Q3 YTD 2 FY19 2
Slide 40: Optimized Wine & Spirits Business
OPTIMIZED WINE & SPIRITS BUSINESS NET SALES OPERATING INCOME 1 MEDIUM-TERM INCLUDES DIVESTITURE OF LOWER-PRICED BRANDS TO E. & J. GALLO IN FY21 ADJUSTMENTS FROM ADDITIONAL DIVESTITURE OF MAINSTREAM AND PREMIUM BRANDS TO THE WINE TARGETS GROUP CLOSED IN Q3 FY23 $2.9 $2.7 2-4% BILLIONS $2.5 ~$(44)M 0%
Slide 41: Building Long Term Shareholder Value
BUILDING LONG TERM SHAREHOLDER VALUE 10 CONSECUTIVE YEARS AS A GROWTH 10-YEAR ANNUALIZED TSR 2 LEADER AMONG CPG PEERS 1 CONSTELLATION BRANDS 10-K COMPETITORS 23.0% CY22 14.7% CY21 CY20 CY19 11.6% ~8% 10.7% COMPETITOR 9.5% 9.2% AVERAGE 7.5% CY18 CY17 CY16 3.8% 0.3% N/A2 CY15 CY14 CY13 1. Source: IRI
Slide 42: Appendix 1: Additional Capital Allocation Reference Materials
APPENDIX 1 ADDITIONAL CAPITAL ALLOCATION REFERENCE MATERIALS 42
Slide 43: Deploy Capital in Line with Disciplined and Balanced Priorities
DEPLOY CAPITAL IN LINE WITH DISCIPLINED AND BALANCED PRIORITIES 1 COMMITTED TO A DISCIPLINED FINANCIAL FOUNDATION FOCUSED ON MAINTAINING A TARGETING DIVIDEND GROWTH SOLID INVESTMENT GRADE RATING IN-LINE WITH EARNINGS TARGET ~3.0X LEVERAGE RATIO 1 TARGET ~30% DIVIDEND PAYOUT RATIO 2 BALANCING REINVES
Slide 44: Maintaining a Solid Investment Grade Rating
MAINTAINING A SOLID INVESTMENT GRADE RATING TARGET NET LEVERAGE RATIO IN THE ~3.0X RANGE 1 NET LEVERAGE RATIO 1 DEBT MATURITY PROFILE 2 BANK DEBT SENIOR NOTES INCREASE DUE TO INCLUDES ~$3.2B OF RECLASSIFICATION REVOLVER RECLASSIFICATION FINANCING (BANK DEBT) DEBT REDUCTION 3 4.5X FINANCING 3.9X BILL
Slide 45: Targeting Dividend Growth In-Line with Earnings
TARGETING DIVIDEND GROWTH IN-LINE WITH EARNINGS TARGET DIVIDEND PAYOUT RATIO IN THE ~30% RANGE DIVIDEND PAYOUT RATIO 1 DIVIDEND YIELD 1 ~$1.7B OF CONSTELLATION BRANDS 10-K COMPETITORS AVERAGE DIVIDENDS PAID 1.8% 1.8% 29% 29% 28% 27% 29% 29% 30% 30% 1.7% 1.6% 1.6% 1.5% 1.4% 1.3% FY20- FY22 FY21 FY20
Slide 46: Executing Organic Investments to Support Growth
EXECUTING ORGANIC INVESTMENTS TO SUPPORT GROWTH CAPITAL EXPENDITURE FOR THE BEER BUSINESS IS EXPECTED TO BE IN THE $5.0B - $5.5B RANGE FOR THE FY23 - FY26 TIME PERIOD 1 ADDING 25-30M HL OF BREWING CAPACITY TO SUPPORT MEDIUM TERM MID TO HIGH SINGLE-DIGIT VOLUME GROWTH OF BEER BUSINESS 2 1ST WAVE 2ND
Slide 47: Executing Organic Investments to Support Growth
EXECUTING ORGANIC INVESTMENTS TO SUPPORT GROWTH WINE & SPIRITS HOSPITALITY VENUE UPGRADES TO ENHANCE EXPERIENCES AND SEEK TO MAXIMIZE DIRECT-TO-CONSUMER OPPORTUNITY NEW TASTING ROBERT MONDAVI FACILITY AT THE WINERY PRISONER WINERY RENOVATIONS 47
Slide 48: Buy-Backs Targeted to At Least Cover Dilution
BUY-BACKS TARGETED TO AT LEAST COVER DILUTION ABILITY TO OPPORTUNISTICALLY DO MORE WITH ~$1.2B OF CAPACITY 1 SHARE REPURCHASE RATIO FROM FY20-FY22 (2) COMPLETED REPURCHASES CONSTELLATION BRANDS 10-K COMPETITORS 4.5% BILLIONS 4.6% $1.4 3.2% 0.3% $2.8 0.0% ~1.3% 0.0% COMPETITOR $1.4 0.0% 0.0% AVERAGE
Slide 49: Small Acquisitions to Fill Portfolio Gaps
SMALL ACQUISITIONS TO FILL PORTFOLIO GAPS RECENT ACQUISITIONS OF HIGH-GROWTH BRANDS ALMOST ENTIRELY SELF-FUNDED THROUGH SALE OF SUCCESSFUL VENTURE INVESTMENT $8.1B ACQUISITIONS OPERATING HIGHER-END WINES FROM PASO ROBLES, CALIFORNIA, CASH FLOW WITH STRONG DIRECT-TO-CONSUMER BUSINESS, FY20-FY22 INCLU
Slide 50: Appendix 2: Additional ESG Reference Materials
APPENDIX 2 ADDITIONAL ESG REFERENCE MATERIALS 50
Slide 51: Modeling Water Stewardship
MODELING WATER STEWARDSHIP TARGETING ~1.1 BILLION GALLONS OF WATER RESTORATION BY FY25 WATER RESTORATION STRATEGIES IN ACTION REFORESTATION OF BUILT 3 DAMS NEAR NEW TECHNOLOGIES NEAR 2,000+ HECTARES OF OBREGON BREWERY OUR NAPA VALLEY LAND NEAR NAVA SAVING ~15 MILLION CUBIC VINEYARDS REPRESENTING BRE
Slide 52: Reducing GHG Emissions
REDUCING GHG EMISSIONS TARGETING ~15% REDUCTION OF SCOPE 1 & SCOPE 2 GHG EMISSIONS BY FY251 GHG STRATEGIES IN ACTION 99% OF BIOGAS PLAN TO CONVERT 100% OF ELECTRICITY GENERATED AT NAVA PORTION OF BEER PROCURED AT BREWERY IS USED IN OPERATIONS TO WOODBRIDGE WINERY ITS BOILERS REDUCING NATURAL GAS AND
Slide 53: Fostering an Inclusive Culture
FOSTERING AN INCLUSIVE CULTURE WE ARE COMMITTED TO CULTIVATING A BEST-IN-CLASS, DIVERSE, AND EQUITABLE WORKFORCE WORKFORCE GENDER AND ETHNIC DIVERSITY REPRESENTATION GOALS FEMALE REPRESENTATION 1 ETHNIC DIVERSITY REPRESENTATION 1 FY26 FY26 FY22 ACHIEVEMENT FY22 ACHIEVEMENT GOAL GOAL 43% 50% 22% 30%
Slide 54: Advancing Diversity, Equity & Inclusion in Beverage Alcohol
ADVANCING DIVERSITY, EQUITY & INCLUSION IN BEVERAGE ALCOHOL CONTINUED EXECUTION OF CREATING NEW OPPORTUNITIES EXISTING PROGRAMS TO ACCELERATE CHANGE SUPPORTING 1,800 ROLES INTENDED FOR $100M THE BLACK COMMUNITY IN THE SPIRITS INDUSTRY VIA PARTNERSHIP WITH COMMITMENT TO FOCUS ON FEMALE FOUNDER INITIA
Slide 55: Appendix 3: Defined Terms & Additional Financial Information
APPENDIX 3 DEFINED TERMS & ADDITIONAL FINANCIAL INFORMATION 55
Slide 56: Defined Terms
DEFINED TERMS Unless the context otherwise requires, the terms “Company,” “CBI,” "STZ," “we,” “our,” or “us” refer to Constellation Brands, Inc. and its subsidiaries. We use terms in this presentation that are specific to us or are abbreviations that may not be commonly known or used. Term Meaning 2
Slide 57: Defined Terms
DEFINED TERMS Term Meaning Low-End Beer Beer that sells for less than $27.00 per case at retail Lower-End Spirits Spirits that generally sell for less than $14.00 - $17.00 per bottle at retail Lower-End Wine Wine that sells for less than $11.00 per bottle at retail for table wine and less than $13.0
Slide 58: Comparable Measures (Non-GAAP)
COMPARABLE MEASURES (NON-GAAP) Comparable measures are provided because management uses this information in evaluating the results of the core operations of the Company and/or internal goal setting. In addition, the Company believes this information provides investors valuable insight on underlying
Slide 59: Comparable Measures (Non-GAAP)
COMPARABLE MEASURES (NON-GAAP) Other Other includes items that are not specifically related to acquisitions and divestitures or restructuring and other strategic business development costs (e.g. unrealized net (gain) loss on securities measured at fair value, loss on extinguishment of debt, impairme
Slide 60: Reported Statement of Operations (GAAP)
REPORTED STATEMENT OF OPERATIONS (GAAP) Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2018 2019 2020 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 (in millions, except s
Slide 61: Reconciliation of Reported and Comparable Non-GAAP Information
RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2018 2019 2020 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023
Slide 62: Reconciliation of Reported and Comparable Non-GAAP Information
RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2018 2019 2020 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023
Slide 63: Canopy Equity Earnings (Losses) and Related Activities (Non-GAAP)
CANOPY EQUITY EARNINGS (LOSSES) AND RELATED ACTIVITIES ("CANOPY EIE") (NON-GAAP) Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2018 2019 2020 2021 2022 2022 2022 2022 2022 2
Slide 64: Adjusted EBITDA Calculation and Reconciliation, Free Cash Flow Reconciliation
ADJUSTED EBITDA CALCULATION AND RECONCILIATION, FREE CASH FLOW RECONCILIATION (NON-GAAP) Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2017 2018 2019 2020 2021 2
Slide 65: Adjusted EBITDA Calculation and Reconciliation, Excluding Canopy EIE
ADJUSTED EBITDA CALCULATION AND RECONCILIATION, EXCLUDING CANOPY EIE (NON-GAAP) Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2017 2018 2019 2020 2021 2022 2022
Slide 66: Business Segment Information
BUSINESS SEGMENT INFORMATION Organic Net Sales Through AmountsFebruary included28, for2019, our internal the Canopy management segment represent financial reportingreported 100% of Canopy’s consistedresults of twoon business divisions: a two-month (i) Beer and lag, prepared (ii) Wine and in accordan
Slide 67: Business Segment Information
BUSINESS SEGMENT INFORMATION Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2018 2019 2020 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 (in millions) Net Sales Beer $ 4,
Slide 68: Business Segment Information
BUSINESS SEGMENT INFORMATION Fiscal Fiscal Fiscal Fiscal First Second Third Fourth Fiscal First Second Third Nine Year Year Year Year Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Months 2018 2019 2020 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 Income (Loss) from Unconsolidated
Slide 69: Reported and Organic Net Sales
REPORTED AND ORGANIC NET SALES First First Percent Second Second Percent Third Third Percent Fourth Fourth Percent Nine Nine Percent Fiscal Year 2023 Quarter Quarter Change Quarter Quarter Change Quarter Quarter Change Quarter Quarter Change Months Months Change 2023 2022 2023 2022 2023 2022 2023 20
Slide 70: Reported and Organic Net Sales
REPORTED AND ORGANIC NET SALES First First Percent Second Second Percent Third Third Percent Fourth Fourth Percent Fiscal Fiscal Percent Fiscal Year 2020 Quarter Quarter Change Quarter Quarter Change Quarter Quarter Change Quarter Quarter Change Year Year Change 2020 2019 2020 2019 2020 2019 2020 20
Slide 71: Thank You
THANK YOU