Slide 1: Third Quarter and Year-to-Date Fiscal 2024
Third Quarter and Year-to-Date Fiscal 2024 March 6, 2024
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: Year-to-Date Fiscal 2024
Year-to-Date Fiscal 2024 GIN MARE & JACK DANIEL’S JACK DANIEL’S DIPLOMÁTICO NEW MIX TENNESSEE APPLE TENNESSEE WHISKEY 79% 34% 44% (6)% reported net sales growth for reported net sales growth reported net sales growth reported net sales decline Rest of Portfolio driven by (+17% organic1) (+45% organi
Slide 4: Year-to-Date Fiscal 2024 Financial Summary
YEAR-TO-DATE Fiscal 2024 Reported Reported Acquisitions and Impairment Foreign Organic Change1 ($ in millions, Change Divestitures Charges Exchange except per share (%) (+/-) (+/-) (+/-) (%) amount) Net Sales $3,214 1% (1)% —% —% —% Gross Profit $1,957 5% (1)% —% 2% 6% Advertising $414 11% (3)% —% (
Slide 5: Global Trends are Normalizing after Two Years of Very Strong Growth
Global Trends are Normalizing after Two Years of Very Strong Growth 1 REPORTED ORGANIC 8% TOTAL PORTFOLIO 5% 9% TOTAL PORTFOLIO 6% 3 year CAGR 2 year YTD CAGR 3 year CAGR 2 year YTD CAGR 17% 14% 12% 10% 8% 8% 3% 2% 1% 0% F21 F22 F23 YTD F23 YTD F24 F21 F22 F23 YTD F23 YTD F24 Notes - Change is versu
Slide 6: Across Categories
Across Categories 1 REPORTED ORGANIC (2)% (1)% WHISKEY Whiskey 9% WHISKEY Whiskey 14% 3% 6% JackWHISKEY Daniel’s (6)% Jack Daniel’s (5)% JACK DANIEL’S TENNESSEE 6% JACK DANIEL’S TENNESSEE WHISKEY 12% Tennessee Whiskey —% Tennessee Whiskey 3% Jack Daniel’s JACK DANIEL’S TENNESSEE APPLE (11)% 44% Jack
Slide 7: Net Sales Growth Across Most Geographic Clusters Reflecting Normalization
NET SALES GROWTH Across Most Geographic Clusters Reflecting Normalization U.S. REPORTED CHANGE ORGANIC CHANGE1 DEVELOPED REPORTED CHANGE ORGANIC CHANGE1 13% 4% 1% 4% 1% 5% 2% 3% (1)% (2)% (2)% (6)% YTD F24 YTD F24 YTD F24 YTD F24 YTD F23 YTD F23 YTD F23 YTD F23 YTD F23/F24 CAGR YTD F23/F24 CAGR YTD
Slide 8: Gross Margin Increased 250 Basis Points
Increased 250 Basis Points Strong gross margin expansion driven by favorable price/mix and lower supply chain disruption related costs, partially offset by higher input costs, the negative effect of foreign exchange, and the negative effect of acquisitions and divestitures. 0.1% 2.9% 0.7% 0.2% 60.9%
Slide 9: Fiscal 2024 Outlook
Organic1 net sales to be Expect 0% to 2% Expect full year effective Capital expenditures flat. organic1 operating tax rate to be in range of are planned to be in the income growth. approximately 20% to range of $230 to $240 22%. million. 1 See appendix for reconciliations from GAAP measures to most
Slide 10: Appendix
APPENDIX BOLDER. BETTER. TOGETHER. @ prown-FORMAN NOTHING BETTER IN THE MARKET Te
Slide 11: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and 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 fo
Slide 12: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and Reconciliation Fiscal year ended April 30, 2022 • “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, transi
Slide 13: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and 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, transi
Slide 14: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and 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
Slide 15: Non-GAAP Financial Measures and Reconciliation
Non-GAAP Financial Measures and Reconciliation We use the non-GAAP measure “organic change,” along with other metrics, to: (a) understand our performance from period to period on a consistent basis; (b) compare our performance to that of our competitors; (c) calculate components of management incent
Slide 16: 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 17: Definitions (continued)
Definitions (continued) • “Ready-to-Drink” includes all ready-to-drink (RTD) and ready-to-pour (RTP) products. The brands included in this category are Jack Daniel’s RTD and RTP products (JD RTD/RTP), New Mix, and other RTD/RTP products. • “Jack Daniel’s RTD/RTP” products include all RTD line extens
Slide 18: Definitions (continued)
Definitions (continued) Other Metrics. • “Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this report, unless otherwise specified, we refer to shipments when discussing volume. • “Depletions.” This metric is commonly used in the beverage alcohol ind
Slide 19: Year-to-Date Fiscal 2024 Reconciliation
YEAR-TO-DATE Fiscal 2024 Reconciliation Acquisitions & Impairment Charges Foreign Exchange Nine months ended January 31, 2024 Reported Organic Divestitures (+/-) (+/-) (+/-) Net Sales 1% (1)% —% —% —% Gross Profit 5% (1)% —% 2% 6% Operating Expenses (11)% 11% 11% (1)% 10% Advertising Expense 11% (3)
Slide 20: Total Portfolio Reconciliation
TOTAL PORTFOLIO RECONCILIATION Historical Trends - Net Sales Growth Acquisitions & Foreign Exchange Fiscal Year Reported Organic Divestitures (+/-) (+/-) Twelve months ended April 30, 2023 8% —% 3% 10% Twelve months ended April 30, 2022 14% 2% 2% 17% Twelve months ended April 30, 2021 3% —% (1)% 2%
Slide 21: Brand Reconciliation
BRAND RECONCILIATION Year-to-Date Fiscal 2024 Net Sales Growth Nine months ended January 31, 2024 Reported Acquisitions & Divestitures (+/-) Foreign Exchange (+/-) Organic Whiskey (2)% —% 1% (1)% Jack Daniel’s Tennessee Whiskey (6)% —% 1% (5)% Jack Daniel’s Tennessee Apple 44% —% 1% 45% Ready-to-Dri
Slide 22: Geographic Reconciliation
GEOGRAPHIC RECONCILIATION Fiscal 2024 Year-to-Date Net Sales Growth Acquisitions & Nine months ended January 31, 2024 Reported Foreign Exchange (+/-) Organic Divestitures (+/-) United States (1)% (1)% —% (2)% Developed International (2)% (3)% (1)% (6)% Emerging 9% —% 2% 11% Travel Retail 3% (1)% (1)
Slide 23: Brown-Forman
@ BROWN-FORMAN § (© ~ sour masw os > p>) } WHISKEY { 8 3) 70c! 40% Vol. || Ge chet | { JACK DANIEL DISTILLERY | ‘\ LYNCHBURG, TENNESSEE 37352 U.s.4, S oo, et OGETHER.