Slide 1: Fiscal 2020 Year-End Earnings Call
Fiscal 2020 Year-End Earnings Call June 9, 2020
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: Diversity & Inclusion Strategy 2030
15@ BRrown-FoRMAN DIVERSITY & INCLUSION STRATEGY 2030 GENDER & RACE EDITION @ BROWN-FORMAN NOTHING Better in the Market
Slide 4: How can we help our communities in this time of need?
At Brown-Forman, we continue to ask..... Our production facilities worked quickly to produce hand sanitizer... How can we help our communities in this time of need? 4
Slide 5: How are our efforts being received by our employees?
How are our efforts being received by our employees? Source: Per Korn Ferry Pulse Survey of Brown-Forman employees conducted from 4/22/20 to 5/1/20 5
Slide 6: Fiscal 2020 Milestones
Fiscal 2020 Milestones Surpassed 1M cases in Fiscal 2020 Exceeded 2.5M cases in Fiscal 2020 Jack Daniel's RTD's 1.5 M cases Acquired Fords Gin in the U.S. and Germany Sustained double-digit underlying net sales U.S. takeaway trends outpaced TDS U.K. and Thailand transitioned to growth in our premium
Slide 7: COVID-19 significantly impacted March/April performance across all markets
COVID-19 significantly impacted March/April performance across all markets: U.S. least affected February 2020 YTD Underlying Net Sales Growth March & April 2020 Underlying Net Sales Growth Fiscal 2020 Underlying Net Sales Growth U.S. 5% U.S. 1% U.S. 5% International Developed 2% International Develo
Slide 8: E-commerce activation
TEQUILA DELIVERED NOTHING Better
Slide 9: Adapting Off-Premise
Learn how to make the Old Forester Hire con sam espe, Perfect Old Fashioned! NOTHING Better in the Market
Slide 10: Adapting Off-Premise
15@ BRrown-FoRMAN Adapting Off-Premise DEAR HUMANITY, CHEERS TO MAKING SOCIAL DISTANCING, SOCIAL. WITH LOVE, JACK
Slide 11: Emerging consumer trends since COVID-19
15 @ BRown-FORMAN Emerging consumer trends since COVID-19 DECODING® THE NeW (ONSUMER MIND Where consumers purchase What consumers buy How / When consumers drink How the consumer is shopping NOTHING Better in the Market ePremise; large off-premise accounts “Trusted” Brands Convenience ; At home occas
Slide 12: Actions to address emerging trends (US)
Actions to address emerging trends (US) “Transitioning from Managing the Crisis to Managing the Recovery” Significant channel shifting Move towards trusted brands RTD category is experiencing strong growth Evolving consumer purchase patterns 12
Slide 13: Financial Strength
Financial Strength • A1 and A- ratings by Moody's and Standard & Poor’s, respectively • Net Cash position $342M ◦ Cash and cash equivalents: $675M ◦ ST borrowings: $333M • $800M undrawn credit facility • $2.3B LT debt with next maturity January 2023 for $250M 13
Slide 14: Fiscal 2021 Outlook
Fiscal 2021 Outlook The company faces substantial uncertainty related to the evolving COVID-19 pandemic and its effect on the global economy. As a result of this uncertainty, the company is not able to provide quantitative guidance for fiscal year 2021 at this time. With a strong balance sheet, soli
Slide 15: Appendix
Appendix NOTHING Better n the
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation We use certain financial measures in this presentation that are not measures of financial performance under U.S. GAAP. These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results of operations and other measures reported under
Slide 17: 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 spirits category. Below
Slide 18: Definitions
Definitions Other Metrics. • “Depletions.” We generally record revenues when we ship our products to our customers. “Depletions” is a term commonly used in the beverage alcohol industry to describe volume. Depending on the context, “depletions” means either (a) our shipments directly to retail or wh
Slide 19: Reconciliation – Fiscal 2020 Net Sales Growth by Geographic Area
Reconciliation – Fiscal 2020 Net Sales Growth by Geographic Area* Twelve months ended April 30, 2020 Estimated Net Change in Geographic Area Reported Foreign Exchange (+/-) Underlying Distributor Inventories (+/-) United States 8% —% -3% 5% Developed International -2% 1% -1% -1% Emerging -4% 1% 1% -
Slide 20: Reconciliation – Fiscal 2020 Net Sales Growth for Brand Aggregations
Reconciliation – Fiscal 2020 Net Sales Growth for Brand Aggregations* Twelve months ended April 30, 2020 Estimated Net Change in Aggregated Brands Reported Foreign Exchange (+/-) Distributor Inventories Underlying (+/-) Premium bourbons 24% —% -4% 21% Totals may differ due to rounding * Please refer
Slide 21: Reconciliation – Fiscal 2020 Net Sales Growth
Reconciliation – Fiscal 2020 Net Sales Growth Estimated Net Change FY20 Time Period / Acquisition & Divestitures Reported (+/-) Foreign Exchange (+/-) in Distributor Underlying Geographic Area* Inventories (+/-) 3Q 3% —% —% —% 3% YTD Feb United States 7% —% —% -2% 5% Developed International —% —% 1%