Brown Forman Inc · NYSE:BF.A
Brown Forman — Shareholder Meeting (July 2021)
28 slides from Brown Forman's shareholder meeting presentation, Jul 22, 2021
Slide 1: Reimagining Our Future
REIMAGINING OUR FUTURE 2021 Annual Meeting of Stockholders Lawson E. Whiting, President and Chief Executive Officer July 22, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “exp
Slide 3: Accelerated Top-Line Growth
Accelerated Top-Line Growth FY16 – FY20 FY21 Underlying Net Sales 4% 6% Underlying Operating Income 4% 4% 3 Please see appendix for reconciliation.
Slide 4: Gross Margin Pressure is our Biggest Challenge
Gross Margin Pressure is our Biggest Challenge 0.7% -5.5% 69.4% -2.5% -0.5% -1.1% 60.5% FY16 Price/Mix Costs Tariffs F/X Other FY21 4 GM – on a reported basis.
Slide 5: Financial Stewardship Remains Strong
Financial Stewardship Remains Strong 30% ROIC 15% CONSUMER STAPLES COMPETITIVE SET S&P 500 0% 0% 20% 40% Operating Margin Source: Factset and Company information for the competitive set which includes Diageo, Pernod, Campari, and Remy Cointreau. ROIC is defined as the sum of net income and after-tax
Slide 6: Brown-Forman Strategic Framework
PORTFOLIO BROWN-FORMAN INVESTMENT GEOGRAPHY STRATEGIC FRAMEWORK PEOPLE 6
Slide 7: Portfolio
PORTFOLIO BROWN-FORMAN ANNUAL MEETING OF STOCKHOLDERS JULY 22, 2021
Slide 8: The Jack Daniel's Family Is Now the Largest Global Premium Spirits Trademark
THE JACK DANIEL’S FAMILY IS NOW THE LARGEST GLOBAL PREMIUM SPIRITS TRADEMARK IN THE WORLD Source: IWSR 2020 8
Slide 9: Delivering Double-Digit Underlying Net Sales Growth in FY21
Delivering Double-Digit Underlying Net Sales Growth in FY21 9
Slide 10: Portfolio Evolution Through Garvin Brown's Tenure
Portfolio Evolution Through Garvin Brown’s Tenure ACQUISITIONS DIVESTITURES FY96 2000 2005 2010 2015 FY21 10
Slide 11: Premiumization Trends Accelerated
PREMIUMIZATION TRENDS ACCELERATED 11
Slide 12: Convenience and At-Home Consumption Drive Growth
CONVENIENCE AND AT-HOME CONSUMPTION DRIVE GROWTH 12
Slide 13: Geography
GEOGRAPHY 13
Slide 14: Global Expansion
US International GLOBAL EXPANSION % of Net Sales on a Reported basis 18% 1996 82% 2021 50% 50% 14
Slide 15: Geographic Performance During the Pandemic
Geographic Performance During the Pandemic FY20 Change FY21 Change Underlying Net Sales Underlying Net Sales US 5% 10% Developed International (1)% 10% Emerging (1)% 6% Travel Retail (10)% (48)% 15 Note – Change versus prior-year period | See appendix for non-GAAP to GAAP reconciliations, definition
Slide 16: Investment
BROWN-FORMAN ANNUAL MEETING OF STOCKHOLDERS JULY 22, 2021
Slide 17: Top-Tier Shareholder Return
Top-Tier Shareholder Return $800 14% Brown-Forman 11% S&P 500 10% Comp Set $0 2006 2021 $8.3B Cash returned to shareholders 17
Slide 18: Investing for the Next Generation
INTEGRATED MARKETING COMMUNICATIONS INVESTING FOR THE NEXT GENERATION 18
Slide 19: People
hill BROWN-FORMAN ANNUAL MEETING OF STOCKHOLDERS JULY 22, 2021
Slide 20: Reimagining the Future of Work
REIMAGINING THE FUTURE OF WORK 20
Slide 21: Environmental Social Governance
ENVIRONMENTAL SOCIAL GOVERNANCE 21
Slide 22: Brown-Forman Annual Meeting of Stockholders
BROWN-FORMAN ANNUAL MEETING OF STOCKHOLDERS
Slide 23: Reimagining Our Future - Thank you!
REIMAGINING OUR FUTURE Thank you! Lawson E. Whiting, President and Chief Executive Officer
Slide 24: Appendix
REIMAGINING OUR FUTURE Appendix
Slide 25: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We use some financial measures in this Proxy Statement that are not measures of financial performance under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results o
Slide 26: Reconciliation - P&L
Reconciliation - P&L Twelve months ended April 30, 2016 2017 2018 2019 2020 2021 Change in reported net sales (%) -1% -3% 8% 2% 1% 3% Acquisitions and Divestitures (+/-) 1% 3% —% —% —% —% Foundation (+/-) —% —% —% —% —% —% New accounting standard —% —% —% 1% —% —% Chambord Impairment (+/-) —% —% —%
Slide 27: Reconciliation - Fiscal 2021 Net Sales Growth by Brand
Reconciliation - Fiscal 2021 Net Sales Growth by Brand Twelve months ended April 30, 2021 Estimated Acquisitions Foreign Net Change Reported Underlying and Exchange In Change Change Brand Divestitures Impact Distributor (%) (%) (+/-) (+/-) Inventories (+/-) JDTW -8% —% -1% 4% -4% 27 Note - Totals ma
Slide 28: Reconciliation - Fiscal 2021 and 2020 Net Sales Growth by Geographic Area
Reconciliation - Fiscal 2021 and 2020 Net Sales Growth by Geographic Area Twelve months ended April 30, 2021 Foreign Estimated Reported Underlying Acquisitions and Exchange Net Change In Change Change Geographic Area Divestitures (+/-) Impact Distributor (%) (%) (+/-) Inventories (+/-) United States