Brown Forman Inc · NYSE:BF.A
Brown Forman — Shareholder Meeting (July 2023)
40 slides from Brown Forman's shareholder meeting presentation, Jul 27, 2023
Slide 1: 2023 Annual Meeting of Stockholders
2023 Annual Meeting of Stockholders July 27, 2023
Slide 2: Brown-Forman Highlight Video Placeholder
Brown-Forman Highlight Video Placeholder page 2
Slide 3: Sue J. Perram, VP Director Investor Relations
2023 Annual Meeting of Stockholders July 27, 2023 Sue J. Perram VP Director Investor Relations
Slide 4: Forward-looking statements
Today's presentation may contain forward-looking statements, which are any predictions, projections, or other statements about future events based on current expectations and assumptions. Actual results may differ materially from these forward-looking statements because of a variety of risks and unc
Slide 5: Campbell P. Brown, Chair of the Board
2023 Annual Meeting of Stockholders July 27, 2023 Campbell P. Brown Chair of the Board of Directors
Slide 6: 2023 Annual Meeting of Stockholders Agenda
2023 Annual Meeting of Stockholders Agenda | July 27, 2023 Welcome, Call to Order and Introductions Campbell P. Brown Chair of the Board of Directors Report on Notice and Quorum Jaileah X. Huddleston VP Associate General Counsel - Regional, Securities and Governance, Corporate Secretary Election of
Slide 7: Jaileah X. Huddleston, Corporate Secretary
2023 Annual Meeting of Stockholders July 27, 2023 Jaileah X. Huddleston VP Associate General Counsel - Regional, Securities and Governance, Corporate Secretary
Slide 8: Call to Order and Quorum Report
2023 Annual Meeting of Stockholders July 27, 2023 Campbell P. Brown Chair of the Board of Directors Jaileah X. Huddleston VP Associate General Counsel - Regional, Securities and Governance, Corporate Secretary
Slide 9: Online proxy voting: ams.b-f.com
ams.b-f.com If you are a Class A stockholder and you did not send in a proxy card or vote via telephone or online, or you did but would like to change your vote, you may vote online now at this website and use the “Click Here to Submit Your Proxy Online” button.
Slide 10: 2023 Annual Meeting of Stockholders
2023 Annual Meeting of Stockholders July 27, 2023
Slide 11: President and CEO Walk-up Video Placeholder
President and Chief Executive Officer Walk-up Video Placeholder page 11
Slide 12: Lawson E. Whiting, President and Chief Executive Officer
2023 Annual Meeting of Stockholders July 27, 2023 Lawson E. Whiting President and Chief Executive Officer
Slide 13: F23 Bolder Better
F23 BOLDER Growth BETTER Performance Continued portfolio evolution Significant Spirited commitment Second consecutive investments in brands to our people, our year of double-digit Price increases and facilities communities, and our top-line growth across the globe environment BOLDER. BETTER. TOGETHE
Slide 14: Global Relationships Together
GLOBAL RELATIONSHIPS Building McLaren Racing TOGETHER Churchill Downs The Coca-Cola Company BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 14
Slide 15: Delivering Better over the long-term
DELIVERING BETTER over the long-term ORGANIC NET SALES ORGANIC OPERATING INCOME 27% 5-year CAGR | 7% 5-year CAGR | 6% 17% 10% 8% 5% 5% 2% 2% F19 F23 F19 -3% F23 See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. Th
Slide 16: Top Shelf Portfolio
13% 20% 6% 26% 15% 5-YEAR ORGANIC CAGRs TOP SHELF PORTFOLIO See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. The five-year compound annual growth rates were determined by calculating the geometric mean of the org
Slide 17: With a Global Footprint
UNITED STATES DEVELOPED INTERNATIONAL EMERGING INTERNATIONAL TRAVEL RETAIL 6% 7% 13% 2% WITH A 5-YEAR ORGANIC CAGRs GLOBAL FOOTPRINT See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. The five-year compound annual
Slide 18: Total Shareholder Return impacted in short term
TOTAL SHAREHOLDER RETURN impacted in short term YEARS 1 5 10 (2%) 4% 10% Competitive Set (1%) 10% 10% S&P 500 Consumer Staples Index 2% 12% 10% S&P 500 3% 11% 12% Source: Capital IQ, 1-, 5- and 10-year CAGR through April 30, 2023, in local currency, assuming dividends reinvested. Note — Competitive
Slide 19: Obstacles and Opportunities
OBSTACLES Geopolitical Economic instability uncertainty Competitive War for talent environment OPPORTUNITIES Evolving Premium portfolio Route-to-Consumer Strong consumer Best-in-class demand people and culture BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 19
Slide 20: Obstacles and Opportunities
OBSTACLES Geopolitical Economic instability uncertainty Competitive War for talent environment OPPORTUNITIES Evolving Premium portfolio Route-to-Consumer Strong consumer Best-in-class demand people and culture BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 20
Slide 21: Premiumization, Convenience, Digitalization, Building Better
PREMIUMIZATION CONVENIENCE DIGITALIZATION BUILDING BETTER A desire for quality Delivering spirits Developments in Consumers and investors over quantity and an consumers want, when technology drive how expect more from elevated experience and how they want them consumers engage and companies and bran
Slide 22: Portfolio reshaping
PREMIUMIZATION portfolio reshaping $50 $0 Divestiture Acquisition BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 22
Slide 23: A brand in your hands
CONVENIENCE a brand in your hands 25M 9L cases Organic 5yr CAGR: +14% F23 Organic growth: +20% See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. The five-year compound annual growth rates were determined by calcul
Slide 24: Building capabilities
DIGITALIZATION building capabilities BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 24
Slide 25: A spirit of commitment
BUILDING BETTER a spirit of commitment BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 25
Slide 26: Better for our shareholders
BUILDING BETTER for our shareholders IN THE LAST FIVE YEARS: Invested in Acquired four Returned to $600M+ $1.2B $2.4B CapEx brands shareholders BOLDER. BETTER. TOGETHER. 2023 Annual Meeting of Stockholders page 26
Slide 27: Bolder Better Together
BOLDER BETTER TOGETHER 2023 Annual Meeting of Stockholders page 27
Slide 28: Thank you!
2023 Annual Meeting of Stockholders July 27, 2023 Lawson E. Whiting President and Chief Executive Officer Thank you!
Slide 29: Chair of the Board Walk-up Video Placeholder
Chair of the Board of Directors Walk-up Video Placeholder page 29
Slide 30: Campbell P. Brown, Chair of the Board
2023 Annual Meeting of Stockholders July 27, 2023 Campbell P. Brown Chair of the Board of Directors
Slide 31: 2023 Annual Meeting of Stockholders
2023 Annual Meeting of Stockholders July 27, 2023
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Use of Non-GAAP Financial Information. We use some financial measures in this report 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
Slide 33: Non-GAAP Financial Measures Continued
Non-GAAP Financial Measures Continued “Foreign exchange.” We calculate the percentage change in certain line items of the statements of operations in accordance with GAAP and adjust to exclude the cost or benefit of currency fluctuations. Adjusting for foreign exchange allows us to understand our bu
Slide 34: Definitions
Definitions From time to time, to explain our results of operations or to highlight trends and uncertainties affecting our business, we aggregate markets according to stage of economic development as defined by the International Monetary Fund (IMF), and we aggregate brands by beverage alcohol catego
Slide 35: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes TOTAL B-F | NET SALES TOTAL B-F | OPERATING INCOME Percentage change Percentage change versus prior fiscal 2019 2020 2021 2022 2023 versus prior fiscal 2019 2020 2021 2022 2023 year year Change in reported net Change in reported 2% 1% 3% 14% 8% operating in
Slide 36: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes EL JIMADOR | NET SALES WOODFORD RESERVE | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 2023 prior fiscal year 2019 2020 2021 2022 2023 Change in reported net sales Change in reported net sales 8% 8% 2% 27
Slide 37: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes JACK DANIEL’S FAMILY | NET SALES HERRADURA | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 2023 prior fiscal year 2019 2020 2021 2022 2023 Change in reported net sales Change in reported net sales 1% 1% 1%
Slide 38: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes OLD FORESTER | NET SALES READY-TO-DRINK | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 2023 prior fiscal year 2019 2020 2021 2022 2023 Change in reported net sales Change in reported net sales 27% 30% 35%
Slide 39: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes UNITED STATES | NET SALES DEVELOPED INTERNATIONAL | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 2023 prior fiscal year 2019 2020 2021 2022 2023 Change in reported net sales Change in reported net sales 2
Slide 40: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes EMERGING | NET SALES TRAVEL RETAIL | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 2023 prior fiscal year 2019 2020 2021 2022 2023 Change in reported net sales Change in reported net sales 4% -4% 1% 24% 18