Brown Forman Inc · NYSE:BF.A
Brown Forman — Shareholder Meeting (July 2022)
24 slides from Brown Forman's shareholder meeting presentation, Jul 28, 2022
Slide 1: 2022 Annual Stockholders' Meeting
2022 Annual Stockholders’ Meeting July 28, 2022
Slide 2: Forward Looking Statement
Forward Looking Statement 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
Slide 3: 2022 Annual Stockholders' Meeting – Lawson E. Whiting, President and CEO
2022 Annual Stockholders’ Meeting Lawson E. Whiting | President and Chief Executive Officer
Slide 4: Enduring Spirits. Resilient Business.
Enduring Spirits. RESILIENT BUSINESS. ORGANIC NET SALES ORGANIC OPERATING INCOME 4YR CAGR = 7% 4YR CAGR = 5% 27% 17% 5% 5% 2% 2% F19 F20 F21 F22 F19 -3% F22 -5% See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. 4
Slide 5: Enduring Spirits. Consistent Brand Growth.
Enduring Spirits. CONSISTENT BRAND GROWTH. 4YR Organic CAGR 13% 18% 6% 30% 17% See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. The four-year compound annual growth rates were determined by calculating the geomet
Slide 6: Enduring Spirits. Consistent Geography Growth.
Enduring Spirits. CONSISTENT GEOGRAPHY GROWTH. 4YR Organic CAGR 7% 7% 10% -7% See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional information. The four-year compound annual growth rates were determined by calculating the geometr
Slide 7: A Changing Momentum from Headwinds...
A Changing Momentum FROM HEADWINDS... TARIFFS COGS GLOBAL PANDEMIC SUPPLY CHAIN DISRUPTION RUSSIA / UKRAINE INFLATION 7
Slide 8: ...to Tailwinds
…TO TAILWINDS TARIFFS REMOVED INCREASED ON-PREMISE DEMAND PREMIUMIZATION / CONVENIENCE AMERICAN WHISKEY + TEQUILA 8
Slide 9: A Remarkable Year. F22 Highlights.
A Remarkable Year. F22 HIGHLIGHTS. Strong double-digit Price increases Investments in Spirited commitment Delivering value to organic top- and across the globe strategic initiatives to our people, our our shareholders bottom-line growth communities, and our environment B R O W N - F O R M A N A N N
Slide 10: Gross Margin Pivots to Modest Expansion in F22
Gross Margin Pivots to MODEST EXPANSION IN F22. +1.3% -1.3% +0.5% -0.2% 60.8% 60.5% F21 Price/Mix Cost A&D FX F22 B R O W N - F O R M A N A N N U A L S T O C K H O L D E R S ’ M E E T I N G | 7 - 2 8 - 2 0 2 2 10
Slide 11: Investments that Endure
Investments that ENDURE. $2.8B $600M Industry Leading returned to shareholders invested in CapEx and ROIC of 18% over 5 years acquisitions over 5 years Operating Margin of 31% See appendix for reconciliations of non-GAAP measures to the comparable GAAP measures, non-GAAP definitions, and additional
Slide 12: Total Shareholder Return: Focus on the Long-Term View
Total Shareholder Return FOCUS ON THE LONG-TERM VIEW. 1 5 10 Comp. Set 22% Comp. Set 15% 14% Consumer Staples 17% 14% S&P 500 14% S&P 500 0% S&P 500 14% Comp. Set 13% -9% Consumer Staples 10% Consumer Staples 12% Source: Factset B R O W N - F O R M A N A N N U A L S T O C K H O L D E R S ’ M E E T I
Slide 13: Superb Brand Building / Purposeful Capital Deployment
Timeless Values Great People Strong Governance Excellent System Capital Purposeful Deployment Portfolio Superb Brand Management Building
Slide 14: Thank you!
@ BROwWN-FORMAN Enduring Spirits. BOLD PERSPECTIVES. Thank you!
Slide 15: Appendix
Appendix B R O W N - F O R M A N A N N U A L S T O C K H O L D E R S ’ M E E T I N G | 7 - 2 8 - 2 0 2 2 15
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Use of Non-GAAP Financial Information. We use some financial measures in this presentation 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 t
Slide 17: 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 18: 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 19: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes TOTAL B-F | NET SALES TOTAL B-F | OPERATING INCOME Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 prior fiscal year 2019 2020 2021 2022 Change in reported net sales Change in reported operating 2% 1% 3% 14% 9% -5% 7%
Slide 20: 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 prior fiscal year 2019 2020 2021 2022 Change in reported net sales Change in reported net sales 2% 8% 3% 10
Slide 21: 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 prior fiscal year 2019 2020 2021 2022 Change in reported net sales Change in reported net sales 4% -4% 1% 24% 1% -11% -50%
Slide 22: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes JACK DANIEL’S FAMILY | NET SALES WOODFORD RESERVE | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 prior fiscal year 2019 2020 2021 2022 Change in reported net sales Change in reported net sales 1% 1% 1% 15
Slide 23: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes EL JIMADOR | NET SALES HERRADURA | NET SALES Percentage change versus Percentage change versus prior fiscal year 2019 2020 2021 2022 prior fiscal year 2019 2020 2021 2022 Change in reported net sales Change in reported net sales 8% 8% 2% 27% 8% 11% 15% 29%
Slide 24: Reconciliation of non-GAAP Organic Changes
Reconciliation of non-GAAP Organic Changes OLD FORESTER | NET SALES Percentage change versus prior fiscal year 2019 2020 2021 2022 Change in reported net sales 27% 30% 35% 24% (GAAP) Acquisitions and divestitures 0% 0% 0% 0% New accounting standard 3% 0% 0% 0% Foreign exchange 0% 0% 0% 0% Change in