Brown Forman Inc · NYSE:BF.A
Brown Forman — Investor Day (March 2024)
122 slides from Brown Forman's investor day presentation, Mar 20, 2024
Slide 1: Matias Bentel | Jeremy Shepherd
Matias Bentel | Jeremy Shepherd
Slide 2: 2024 Brown-Forman Investor Day: Presenter Biographies
2024 Brown-Forman Investor Day Presenter Biographies
Slide 3: Lawson Whiting
Prior to being appointed CEO, Lawson Whiting served as executive vice 2 032 president and chief operating officer of Brown-Forman, where he A M B ITION oversaw regional operations, global production, and corporate responsibility. He has served on the company’s Executive Leadership I N V E S T OR DA
Slide 4: Matias Bentel
Matias Bentel is responsible for the global marketing function and a 2 032 member of the corporation’s Executive Leadership Team. A M B ITION Matias joined Brown Forman in 2008 as Marketing Director for Latin I N V E S T OR DA Y | MARCH 20, 2024 | L O UISVILLE, K Y America & Caribbean. He became Chi
Slide 5: Jeremy Shepherd
Jeremy Shepherd began his career at Brown‑Forman in 2005 as 2 032 commercial manager for Canada, and over the last 17 years, he has held A M B ITION commercial leadership roles in New York City, Louisville, and most recently, London. I N V E S T OR DA Y | MARCH 20, 2024 | L O UISVILLE, K Y Prior to
Slide 6: Thomas Hinrichs
Thomas Hinrichs oversees Latin America, Asia, Australia, and New 2 0 3 2 Zealand, Emerging Asia (Russia, Turkey, Ukraine, and CIS), India, Middle AMB IT I O N East, and Africa, as well as Global Travel Retail. IN VEST OR D AY | MA RC H 2 0 , 20 2 4 | L OUI SV IL L E, K Y He began his career at Brown
Slide 7: Marshall Farrer
Marshall Farrer is responsible for developing key partnerships and new 2 032 growth opportunities to achieve the company’s short-term objectives A M B ITION and long-term ambitions. He is also a member of the Board of Directors, joining in 2016, and a fifth-generation Brown family shareholder. I N V
Slide 8: Tim Nall
Tim Nall is responsible for global production operations, global supply 2 032 chain, research & development, quality assurance, external A M B ITION manufacturing, and all facets of Brown‑Forman information technology infrastructure including advanced analytics, applications, and cyber I N V E S T O
Slide 9: Matt Hamel
Matt Hamel leads Brown‑Forman’s legal, compliance, risk, and 2 032 government relations teams, overseeing activities related to corporate A M B ITION governance, SEC and Sarbanes-Oxley compliance, regulatory compliance, trade practices, trademarks, litigation, acquisitions, I N V E S T OR DA Y | MAR
Slide 10: Kirsten Hawley
Kirsten Hawley has worked at Brown-Forman for over two decades and 2 0 3 2 has served in a variety of roles across human resources, marketing, and AMB IT I O N communications. IN VEST OR D AY | MA RC H 2 0 , 20 2 4 | L OUI SV IL L E, K Y During her tenure in human resources, she led organizational a
Slide 11: Crystal Peterson
Crystal Peterson is responsible for stewarding the company’s progress 2 032 and performance against its diversity and inclusion ambitions and A M B ITION realizing the full value diversity creates for Brown‑Forman’s employees, partners, and communities. She also leads Brown‑Forman’s commitment I N V
Slide 12: Leanne Cunningham
Leanne Cunningham has progressed through a series of roles including 2 032 accounting and finance, corporate strategy, and production operations A M B ITION leadership since joining the organization in 1995. Most recently she served as senior vice president, shareholders relations officer, global I N
Slide 13: Campbell Brown
Campbell Brown is the Chair of the Board of Directors at Brown‑Forman 2 032 Corporation. A great-great grandson of Brown‑Forman’s founder, he was A M B ITION an employee of the company for over 27 years and has served on the Board for seven years. I N V E S T OR DA Y | MARCH 20, 2024 | L O UISVILLE,
Slide 14: Sue Perram
Sue Perram started her career with Brown-Forman in 2009 as the Brand 2 0 3 2 Analytics Manager for Southern Comfort and Finlandia in the North AMB IT I O N American region. Over the next decade, she held a variety of local, regional and global roles, including brand and commercial finance in the IN V
Slide 15: 2024 Brown-Forman Investor Day: Presentation Slides
2024 Brown-Forman Investor Day Presentation Slides
Slide 16: Make It A Double
make ita DOUBLE @ BRown-FORMAN 2024 INVESTOR DAY LOUISVILLE, KENTUCKY MARCH 20, 2024
Slide 17: Welcome
Welcome Sue Perram, VP Director Investor Relations
Slide 18: Important Information on Forward Looking Statements
IMPORTANT INFORMATION ON 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,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “e
Slide 19: Investor Day Agenda
Investor Day Agenda | March 20, 2024 | Old Forester Distillery | Louisville, KY Sue Perram VP Director Investor Relations Welcome Lawson Whiting President and Chief Executive Officer Make It A DOUBLE Matias Bentel EVP Chief Brands Officer DOUBLE American Whiskey Jeremy Shepherd EVP President USA and
Slide 20: Make It A Double Aspirations
Make It A Double Aspirations Lawson Whiting, President and Chief Executive Officer
Slide 21: 100 Years of Agility
100 Years of Agility 1920-1940 Staying Alive 1950-1970 Steady as She Goes 1980-1990 Spreading the Risk 1990-2000 Surging Ahead 2000-2010 A Changing Landscape 2010-2020 Building Forever TODAY NOTHING BETTER IN THE MARKET 2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K
Slide 22: Strategic Pillars
Strategic Pillars 2 03 2 A MBI T ION INV ES TOR DAY | M ARCH 2 0 , 20 24 | LOU ISV IL LE, KY | PAG E 7
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2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 12
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I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 14
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Slide 31: Double American Whiskey
DOUBLE American Whiskey Matias Bentel, EVP Chief Brands Officer Jeremy Shepherd, EVP President USA and Canada
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203 2 AM B I T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | LO U IS V IL LE , K Y | P A G E 17
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2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 18
Slide 34: Among the Best Global Brands
Among the Best Global Brands #1 #8 #11 #14 +4% +1% +5% +5% #7 #9 #13 #16 +7% -4% +9% +8% #23 #37 #48 #60 +10% +10% +12% +8% #57 #35 #85 +6% +6% +1% #95 #99 #72 #89 +5% +1% +2% +7% #79 #93 #98 +1% new Source: Interbrand +6% 203 2 AM B I T I O N I N VE S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I
Slide 35: Second-Largest Contributor to Growth in Spirits
Second-Largest Contributor to Growth in Spirits 17-22 RSV Growth 2.2 $ Billion 2.0 1.9 1.7 1.6 1.5 1.4 1.0 1.0 1.0 0.9 0.9 0.8 0.8 0.7 Source: IWSR, excludes national brands, baiju, includes spirit and RTDs brand lines 2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V
Slide 36: A True Mega-Brand Appealing to Multiple Consumer Price Points
A True Mega-Brand Appealing to Multiple Consumer Price Points, Occasions, Needs, and Consumer Demographics $100+ PRICE PER UNIT $3 High energy, casual meals, mixed CONSUMER OCCASIONS Taste to savor, discernment, gift 203 2 AM B I T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | LO U IS V IL
Slide 37: Track Record of Long-Term, Sustained Growth
Track Record of Long-Term, Sustained Growth American Whiskey 81-82 US Excise Tax Dot com Great Tariffs Decline Recession Increase Crash Recession COVID 25 CAGRs 5 YEAR 10 YEAR 20 YEAR 30 YEAR JDTW 3% 3% 4% 4% JD FoB 5% 5% 6% 5% 9LCs in millions 15 5 1956 1970 1983 1991 2008 2022 Source: Internal (19
Slide 38: Strategic Vision 2032 and Strategic Priorities
STRATEGIC VISION Jack Daniel’s will be the most iconic and valuable premium spirits brand globally 2032 STRATEGIC PRIORITIES Accelerate geographic expansion while protecting key markets Recruit the next generation of LDA drinkers while retaining the core Capture the Super-Premium+ opportunity Expand
Slide 39: Positioned to Capture Global Growth of American Whiskey
Positioned to Capture Global Growth of American Whiskey 60% $24B* $6B* US WHISKEY % SHARE OF STD+ WHISKEY 40% $6B* $28B* 20% Source: IWSR, Standard+ US and Total Whiskey 20% 40% 60% 80% 100% * RSV Pool in each quadrant JD FOB % SHARE OF US WHISKEY 2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2
Slide 40: Recruiting the Next Generation of LDA Drinkers
Recruiting the Next Generation of LDA Drinkers Building Relevance Adapting to Local Leveraging AI to Customize Reach New Fans Continued Influence with Next Gen LDA Nuances Message at Scale With McLaren F1 In Music 203 2 AM B I T I O N I N VE S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I LL
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Slide 42: Winning the Hearts and Minds of Whiskey Experts
Winning the Hearts and Minds of Whiskey Experts Bartender Spirit Awards Ultimate Spirits Breaking Gold & Silver Medal - Challenge Great Value Bourbon #1 JD Bonded 2023 Award - JD Bonded & Rye Whiskey Whiskey Advocate - #1 Triple Mash 2023 of 2023 Whiskies of the Year 2022 Double Gold Medal Double Go
Slide 43: Making New Friends in New Occasions with Flavors and RTDs
Making New Friends in New Occasions with Flavors and RTDs 203 2 AM B I T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | LO U IS V IL LE , K Y | P A G E 28
Slide 44: Confident on Achieving our Long-Term Ambitions
Confident on Achieving our Long-Term Ambitions One of most iconic brands in the With a robust portfolio that Engaging a new generation of world, with solid brand health and expands across multiple occasions, LDA drinkers while retaining core long-term performance track price points, and geographies c
Slide 45: AM B I T O R , | L O U I S V
203 2 AM B I T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 30
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Slide 47: The Power of Woodford Reserve
The Power of Woodford Reserve #1 Super-Premium American Whiskey in the world Source: IWSR 2022 32% volume CAGR over 26 years with continued momentum #4 Ultra-Premium American Whiskey in the world Source: IWSR 2022 Industry recognition F97 F23 Buzz-worthy Alliances Kentucky Derby | Baccarat | William
Slide 48: Woodford Reserve is Poised for Success
Woodford Reserve is Poised for Success Global Premium WR follows similar Super Premium+ premiumization packaging meets growth trajectory as category growth consumer trends consumer needs Jack Daniel’s Source: IWSR 2022 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE,
Slide 49: Our Ambition: Leverage Premiumization & Pricing Leadership
PORTFOLIO Our Ambition: Leverage Premiumization & Pricing Leadership INVEST GEOGRAPHY Elevate our Accelerate Brand Distribution & Global Expansion PEOPLE Next Generation of Distillers 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 34
Slide 50: Leverage Our Strong Premium Portfolio and Pricing Leadership
LEVERAGE Our Strong Premium Portfolio and Pricing Leadership Flagship Growth Driver Ultra Premium Opportunity Portfolio Expansion & Prominence Craft, Innovation & Luxury Retail Prices: $33 $55 $33 $100 - $2,200 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P
Slide 51: Accelerate Distribution and Geographic Expansion
ACCELERATE Distribution and Geographic Expansion USA & Canada Global Travel Retail Europe Emerging International 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 36
Slide 52: Invest: Elevate our Brand
INVEST: Elevate our Brand A SPECTACLE FOR THE SENSES Media Partnerships Generating Buzz Occasions Point of Purchase 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 37
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Slide 54: Woodford Reserve: From Humble Beginnings to Global Premium+ Brand
Woodford Reserve: From Humble Beginnings to Global Premium+ Brand Top 10 Super-Premium spirit brand in the world #1 Super-Premium American Whiskey in the world Woodford Reserve Bourbon launched Source: IWSR 2022 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y |
Slide 55: N V E S T O R , | L O U I S
2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 40
Slide 56: Old Forester Never Gets Old
Old Forester Never Gets Old Founding Brand The First Bottled Bourbon Credible Growth 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 41
Slide 57: The Old Forester Portfolio of Premium+ Offerings
The Old Forester Portfolio of Premium+ Offerings Core Craft Tribute Lifestyle Distillery Only Price Segment: Premium Super Premium+ Ultra Premium+ Various Super Premium+ $24-27 $55 - $200+ 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 42
Slide 58: Triple Tequilas
TRIPLE Tequilas Thomas Hinrichs, EVP President Emerging International
Slide 59: N V E S T O R , | L O U I S
2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 44
Slide 60: Tequila is the Fastest Growing Category in Full Strength Spirits
Tequila is the Fastest Growing Category in Full Strength Spirits Fastest Super Premium+ Versatility & Improving growing centric consumer tailwinds economics 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 45
Slide 61: Brown-Forman's Portfolio is Well Positioned to Seize the Opportunity
Brown-Forman’s Portfolio is Well Positioned to Seize the Opportunity New RTD occasions Premium Super/Ultra Premium Prestige+ 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 46
Slide 62: Our Ambition
OUR AMBITION: 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 47
Slide 63: Our Roadmap for Sustainable Growth
Our Roadmap for Sustainable Growth PREMIUMIZE INVEST Our portfolio Present & future ACCELERATE Broad-based geographic growth 2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 48
Slide 64: Premiumize Our Portfolio
PREMIUMIZE Our Portfolio Premiumized Roll out world Elevate Expand range el Jimador class creative premium cues with innovation 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 49
Slide 65: Accelerate Broad-Based Geographic Growth
ACCELERATE Broad-Based Geographic Growth Fuel momentum Runway for growth in core market Fuel momentum Recruit new LDA+ Fuel consumers momentum in home market 2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 50
Slide 66: Invest Present and Future
INVEST Present and Future Capital investment and expanded Brand building water recycling & treatment plant 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 51
Slide 67: On Our Way to Triple Tequilas
Attractive Well-positioned Clear roadmap On our way to category portfolio for growth triple tequilas 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 52
Slide 68: Bolder: Emerging Brands & RTDs
BOLDER: Emerging Brands & RTDs Marshall Farrer, EVP Chief Strategic Growth Officer
Slide 69: AM B I T I O N I NV ES T O R D
203 2 AM B I T I O N I NV ES T O R D A Y | MA RC H 2 0 , 2 0 2 4 | LO U IS V IL LE , K Y | P A G E 54
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Slide 71: Emerging Brands & RTDs Unlock Incremental Sources of Growth
Emerging Brands & RTDs Unlock Incremental Sources of Growth Unlock New Access New Premium Price Highest Growth Occasions Consumers Points Categories 2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 56
Slide 72: N V E S TO R D
2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 57
Slide 73: New & Enhanced Capabilities Will Drive Accelerated Growth Globally
NEW & ENHANCED CAPABILITIES WILL DRIVE ACCELERATED GROWTH GLOBALLY 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 58
Slide 74: N V E S TO R D
2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 59
Slide 75: Careful and Strategic Portfolio Reshaping
Careful and Strategic Portfolio Reshaping 2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 60
Slide 76: Advancing Existing and Establishing New RTC Capabilities
Advancing Existing and Establishing New RTC Capabilities 150+ dedicated employees Focused brand spending 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 61
Slide 77: Investing in World-Class Alliances
Investing in World-Class Alliances New Geographies, In-Market Scale, Higher A&P Access to 210,000+ Malt-Only Accounts 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 62
Slide 78: We Will Drive Bolder Growth with Emerging Brands & RTDs
We Will Drive BOLDER Growth with Emerging Brands & RTDs AND Portfolio Reshaping Route-to-Consumer World-Class Alliances 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 63
Slide 79: N V E S TO R D
2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 64
Slide 80: Better: In All That We Do
BETTER: In All That We Do Tim Nall, EVP Chief Global Supply Chain and Technology Officer Matt Hamel, EVP General Counsel and Secretary Kirsten Hawley, EVP Chief People, Places, and Communications Officer Crystal Peterson, EVP Chief Inclusion and Global Community Relations Officer
Slide 81: NV E S T OR D | LO UI SV
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Slide 82: We are Committed to
We are Committed to: Our Environment Our Consumers Our Employees Our Communities 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 67
Slide 83: N V E S TO R D
2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 68
Slide 84: Environmental Commitments
Environmental Commitments First set of public Chairman’s Conference Environmental of Sustainability Sustainability targets Corporate Responsibility Second set of public and Environmental Environmental Performance departments Sustainability targets 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H
Slide 85: Many Spirits. One Earth.
Many Spirits. One Earth. 50% reduction in Operations & Supply Chain emissions 100% renewable electricity Business Critical watersheds in water balance Circular Economy principles integrated into Net zero owned-fleet emissions organization 100% primary packaging recyclable or reusable 100% owned farmi
Slide 86: NV E S T OR D | LO UI SV
2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 71
Slide 87: What it Means to Us
What it Means to Us Marketing our brands responsibly to consumers of legal drinking age and empowering mindful choices around beverage alcohol. 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 72
Slide 88: Our Why: The Business Case
Our Why: The Business Case Enables positive experiences with our brands Enhances relationships with our stakeholders Aligns with consumer trends Protects our rights to operate 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 73
Slide 89: Our Ambition
Our Ambition To scale up our global efforts by increasing brand engagement and strategic partnerships. 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 74
Slide 90: NV E S T OR D | LO UI SV
2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 75
Slide 91: The Company Must Provide a Good Place to Work
“The company must provide a good place to work, fair treatment, opportunities for recognition and reward … a favorable climate for individual growth and development …” 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 76
Slide 92: By Better Understanding Each Other, We'll Better Understand Our Consumers
By better understanding each other, we’ll better understand our consumers. OWSLEY BROWN II 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 77
Slide 93: Where are the People of Brown-Forman?
Where are the People of Brown-Forman? United States International Markets 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 78
Slide 94: Who are the People of Brown-Forman?
Who are the People of Brown-Forman? U.S. Workforce PEOPLE OF COLOR Senior Leadership Positions Race & Ethnicity 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 79
Slide 95: Make Brown-Forman a Place Where People Want to Build Great Careers
Make Brown-Forman a Place Where People Want to Build Great Careers TURNOVER RATE 5% LEADER RANKS Benchmark 15% Less than 3% turnover NEW HIRES Best-in-class engagement scores 2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 80
Slide 96: Instill Sense of Pride with Brown-Forman Brand
Instill Sense of Pride with Brown-Forman Brand Great Places to Work One of the World’s Most Best Managed The Best Companies Ethical Companies Company for Future Leaders 2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 81
Slide 97: NV E S T OR D | LO UI SV
2032 AM BI T I O N I NV E S T OR D A Y | M A R C H 2 0, 202 4 | LO UI SV ILLE, K Y | P A GE 82
Slide 98: N V E S TO R D
2032 AM BI T I O N I N V E S TO R D A Y | M A R C H 2 0, 2 02 4 | LO U IS V ILLE, K Y | P A GE 83
Slide 99: Strategic Focus Areas
Strategic Focus Areas Ensure essential living standards Promote responsible & sustainable living Enrich the arts in Louisville 2032 AM BI T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I L L E , K Y | P A G E 84
Slide 100: Invest our Resources
Invest our Resources 203 2 AM B I T I O N I N VE S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I LL E , K Y | P A G E 85
Slide 101: Engage our Employees
Engage our Employees 36 offices identifying local opportunities 13,000+ hours volunteered 203 2 AM B I T I O N I N VE S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I LL E , K Y | P A G E 86
Slide 102: Our Environment, Our Consumers, Our Employees, Our Communities
Our Environment Our Consumers Our Employees Our Communities 203 2 AM B I T I O N I N VE S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I LL E , K Y | P A G E 87
Slide 103: Make It A Double: The Shape of the P&L
Make It A Double: The Shape of the P&L Leanne Cunningham, EVP Chief Financial Officer
Slide 104: Consistent Long-Term Net Sales Growth
2 032 Consistent Long-Term Net Sales Growth A M B ITION I N V E S T OR DA Y | MARCH 20, 2024 | L O UISVILLE, K Y 10% 6% 5% 5% 30yr* 20yr* 10yr** F23** *The 30 year and 20 year compound annual growth rates were calculated based on reported results. **Based on organic results. The 10 year compound ann
Slide 105: Reported Gross Margin Returns to Expansion
Reported Gross Margin Returns to Expansion Higher pricing Wood cost 69.5% 69.7% 69.4% Fx increases 68.6% Supply chain Agave cost 67.5% 67.8% resolves increase Fx 65.2% Price Tariffs 63.2% EU tariffs increases lifted Supply chain disruption 60.5% 60.8% 61.3% 59.0% Q3 YTD F13 F14 F15 F16 F17 F18 F19 F
Slide 106: Investing in the Key Enablers That Will Support Our Next Decade of Growth
Investing in the Key Enablers That Will Support Our Next Decade of Growth 203 2 AM B I T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | LO U IS V IL LE , K Y | P A G E 91
Slide 107: I N V E S T O R , IL LE , K Y
I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | LO U IS V IL LE , K Y | P A G E 92
Slide 108: A Healthy Balance Sheet and our Long Held Capital Deployment Philosophy
A Healthy Balance Sheet and our Long Held Capital Deployment Philosophy Investment in the Business Dividends for 80 years Cash to Shareholders Acquisitions 203 2 AM B I T I O N I N VE S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | L O U I S V I LL E , K Y | P A G E 93
Slide 109: Driving Total Shareholder Return Over the Long-Term
Driving Total Shareholder Return Over the Long-Term 11% 8% 5% 10% 8% 2% 9% 9% 10% 10% 13% 14% 20 YEAR 10 YEAR 5 YEAR Note: All data is through Jan. 31, 2024 203 2 AM B I T I O N I N V E S T O R D A Y | M A R C H 2 0 , 2 0 2 4 | LO U IS V IL LE , K Y | P A G E 94
Slide 110: Board/Family: The Next Generation
Board/Family: The Next Generation Campbell Brown, Chair of the Board
Slide 111: Video Placeholder
VIDEO PLACEHOLDER
Slide 112: Q&A will begin momentarily
2024 Brown-Forman Investor Day Q&A will begin momentarily.
Slide 113: Appendix: Reconciliation Documents
Appendix Reconciliation Documents
Slide 114: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 to (not substitutes for) our results of operatio
Slide 115: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fiscal year ended April 30, 2017 • “Acquisitions and divestitures.” In fiscal 2016, we sold our Southern Comfort and Tuaca brands and related assets to Sazerac Company, Inc. In fiscal 2017, we acquired The BenRiach Distillery Company Limited (BenRiach). See discussion below and
Slide 116: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fiscal year ended April 30, 2019 • “Acquisitions and divestitures.” This adjustment removes (a) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction gains or losses, transaction costs, and integration costs), and (b) the effects of operati
Slide 117: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fiscal year ended April 30, 2021 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, transition, and integration c
Slide 118: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fiscal year ended April 30, 2023 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, transition, and integration c
Slide 119: Non-GAAP Reconciliation
Non-GAAP Reconciliation Nine months ended January 31, 2024 • “Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on sale of divested brands and certain fixed assets, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, tra
Slide 120: 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 category
Slide 121: Definitions
Definitions Other Metrics. • “Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this presentation, unless otherwise specified, we refer to shipments when discussing volume. • “Depletions.” This metric is commonly used in the beverage alcohol industry to
Slide 122: Reconciliation of Non-GAAP Organic Changes
Reconciliation of Non-GAAP Organic Changes Total Brown-Forman Net Sales Growth Fiscal 2023 Brand Net Sales Growth New Accounting Fiscal Fiscal Year Reported A&D FX Organic Reported A&D FX Organic Standard 2023 F23 8% 0% 3% 0% 10% Tequila 10% 0% (1)% 10% F22 14% 2% 2% 0% 17% el Jimador 11% 0% (1)% 10