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SCHOOL CONFERENCE
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FORWARD LOOKING STATEMENTS
This presentation may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Statements which are not historical facts and relate to future plans, events or
performance are forward-looking statements that are based on management's current expectations and are subject to a
number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-
looking statements, including but not limited to future global economic conditions; market conditions; regulatory conditions;
unanticipated environmental liabilities and costs; changes to international trade agreements or tariffs; timing of accounting
elections or assertions or changes in accounting elections, assertions, or standards; changes in tax laws, tax rates, interest rates
and foreign exchange rates; the actions of competitors; consumer preferences; operating and financial risks related to
managing growth; the amount and timing of future dividends; the amount, timing and source of funds of any share
repurchases; the accuracy of projections associated with the acquisitions of the Meiomi wine brand, Ballast Point, the Prisoner
Wine Company brand portfolio, High West, the Charles Smith wine collection, Schrader Cellars, Funky Buddha, the Obregon
brewery and the sale of the Canadian wine business; beer operations expansion activities, including construction, expansion
and optimization activities at our Mexican breweries and joint venture glass plant, take place on expected scope, terms, costs
and timetables; the accuracy of supply projections, including those relating to beer operations expansion activities, glass
sourcing, and raw materials and water supply expectations; receipt of any necessary regulatory approvals; and accuracy of
forecasts relating to joint venture businesses. Many of these factors are beyond the control of the Company. Any projections of
future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. More
detailed information regarding risk factors is included in company filings with the U.S. Securities and Exchange Commission.
The Company does not undertake to update any of these forward looking statements.
*****
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USE OF NON-GAAP FINANCIAL
MEASURES AND CAUTION REGARDING
OUTDATED MATERIAL
This presentation may contain non-GAAP financial measures. These measures, the purposes for which management
uses them, why management believes they are useful to investors, and a reconciliation to the most directly
comparable GAAP financial measures can be found in the appendix of this presentation. All references to profit
measures and earnings per share on a comparable basis exclude items that affect comparability. Non-GAAP financial
measures are also referred to as being presented on a comparable, organic or constant currency basis.
Unless otherwise indicated, the information presented is as of September 6, 2017. Thereafter, it should be
considered historical and not subject to further update by the Company. This presentation does not provide
information regarding the company's fiscal 2018 second quarter results or financial condition.
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KEY TAKEAWAYS
DRIVING TBA INNOVATION, FINANCIAL
GROWTH THROUGH BRAND BUILDING STRENGTH &
PREMIUMIZATION & & EXECUTION ATTRACTIVE
SCALE FOCUS GROWTH PROFILE
SUSTAINING BUILDING
PROFITABLE SHAREHOLDER
growth value
TBA = Total Beverage Alcohol | 4
TOTAL U.S. BEVERAGE ALCOHOL category
Total U.S. CPG Growth +1%
$75 10%
8%
3% 4% 5%
$50 2%
1%
0% 1%
0%
(5)%
$ SALES
$25 $ SALES % CHG
-5%
$0 -10%
CIGARETTES BEVERAGE CARBONATED SALTY SNACKS MILK BOTTLED PET FOOD CHOCOLATE
ALCOHOL BEVERAGES WATER CANDY
Source: IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending May 14, 2017 against the comparable prior
year period
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U.S. INDUSTRY PREMIUMIZATION DRIVES growth
PREMIUM SEGMENT GROWTH BY CATEGORY
10.0%
HIGH-END
PREMIUM+ +8%
8.0% HIGH-END +7%
$ SALES % GROWTH
+7%
6.0% CATEGORY
CATEGORY +5%
4.0% +4%
OTHER
CATEGORY
+2%
2.0% +2%
OTHER OTHER
-2% 0%
0.0%
BEER WINE SPIRITS
-2.0%
-4.0%
PREMIUMIZATION ACROSS BEER, WINE & SPIRITS IS DRIVING GROWTH OF TOTAL BEVERAGE ALCOHOL
Source: IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending May 14, 2017 against the comparable prior year
period; High-End beer segmentation defined as brands with an average case price of $25 or higher
Premium + Wine segmentation corresponds with IRI price segmentation; Spirits segmentation based on company estimates
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U.S. RETAIL DOLLAR SALES GROWTH OF TOP BEVERAGE
ALCOHOL SUPPLIERS
$700
$600
CONSTELLATION IS
$500
#
1 MILLIONS
$400
$300
$200
$100
$0
IN RETAIL DOLLAR
SALES GROWTH
CONTRIBUTING ~30%
OF TBA GROWTH
Source: IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks
ending May 14, 2017 against the comparable prior year period; National Alcohol
Beverage Control Association (NABCA), 12 months ending May 2017
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CONSTELLATION BRANDS scale
TOTAL BEVERAGE ALCOHOL LEADER BEER BUSINESS
#1 multi-category supplier in U.S. #1 in high-end U.S. beer
80+ premium consumer brands #1 imported beer
~9,000 employees company in U.S.
~40 facilities #3 beer company in
U.S.
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CHANGING CONSUMER profiles
TBA CONSUMERS TBA CONSUMERS
SHARE OF DOLLARS (1)
DOLLARS PER BUYER (2)
$454
BEER ONLY
7%
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STZS TOTAL BEVERAGE ALCOHOL advantage
OUR ADVANTAGED POSITION DRIVES PORTFOLIO GROWTH
EXPERTISE STRONG
in consumer insights and category
distributor network / route to market
management
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TBA GROWTH leadership platform
BRINGING ACTIONABLE SHOPPER CENTRIC STRATEGIES TO RETAIL
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LEVERAGING OUR TBA marketing position
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INCREASING digital marketing
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CONSTELLATION growth organization
LEVERAGING CONSUMER-LED TRENDS, SENSORY & INSIGHTS
ACROSS TBA TO DRIVE INNOVATION
PACKAGING FLAVORS
| 14
DEVELOPING INDUSTRY-LEADING innovation
OUR INNOVATION CAPTURE CONSUMER
BUILD BIG BETS LEAD WITH LUXURY
PRIORITIES: CENTRIC TRENDS
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CORONA premier & familiar
| 16
BEER innovation
Modelo Chelada New Corona Extra Corona Extra New Pacifico 12 oz
Tamarindo Picante Summer Cans Draft Cans
Modelo Chelada
3 Packs
| 17
CONSTELLATION ventures
Constellation Ventures is identifying and investing in early stage brands
and technologies that have proven to resonate with consumers, while
also displaying a proven track record of success and the potential for
scalability.
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U.S. TBA SHARE GAINS FROM
spirits, wine & high-end beer
Spirits Wine High-End Beer All Other Beer
10 Year CAGR
2% 2% 5% -2%
(2006-2016 )
5 Year CAGR
2% 2% 8% -3%
(2011-2016)
80%
60%
40%
20%
0%
2006 2016
Source: Beer - Beer Marketers Insights, based on its High-End beer segmentation definition which includes Imports, Craft, Domestic Super
Premium, Cider, Flavored Malt Beverages; Wine & Spirits Beverage Information Group.
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beer
B E T HE L EADER I N T HE
HI GH - END
U. S . B EER M AR KET
21
U.S. BEER PERFORMANCE overview
HIGH-END BEER IS DRIVING GROWTH IN THE U.S. BEER CATEGORY
10 Year CAGR Latest 5 Year CAGR Latest 3 Year CAGR
(2006-2016 ) (2011-2016) (2013-2016)
Total Beer +0% +0% +1%
All Other Beer -2% -3% -4%
High-End Beer +5% +8% +7%
Craft Beer +11% +14% +13%
3.0
(SHIPMENTS BILLIONS)
EQUIVALIZED CASES
2.0
1.0
0.0
2006 2016
HIGH-END BEER ALL OTHER BEER
Source: Beer Marketers Insights, based on its High-End beer segmentation
definition: includes Imports, Craft, Domestic Super Premium, Cider, Flavored | 22
Malt Beverages
MIGRATION
OF HIGH-END
SPREADING
TO ALL OTHER MARKETS
GROWING FASTER THAN MAJOR METROS
Major
Metros +6.1% ~55% ~30%
All Other
Markets +6.7% ~40% ~70%
Source: U.S. Population Beverage Information Group 2016 Handbook; Volume and Trend Data IRI, Multi-Outlet +
Convenience, for the 52 weeks ending May 14, 2017 against the comparable prior year period; HE = High-End 23
+ mid single digit high-end industry growth
FUELED BY MIX OF CONSUMER BASE EFFECTS AND ACTIONS
IN ECONOMICS
STORE PRICING
AND TRADE UP
MERCH
SUBSTITUTION
CONSUMER
& TBA
DEMAND &
DISTRIBUTION BLURRING
DEMOGRAPHICS
& NEW
PRODUCTS +MSD CAGR EST.
~1B cases
IN ECONOMICS
STORE PRICING
AND TRADE UP
MERCH
SUBSTITUTION
CONSUMER
& TBA
DEMAND &
DISTRIBUTION BLURRING
DEMOGRAPHICS
& NEW
PRODUCTS +MSD CAGR EST.
~1B cases
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DISTRIBUTION OPPORTUNITIES convenience
CAPITALIZING ON FAVORABLE C-STORE TRENDS
over indexes
#
1
to millennials and hispanics(2)
>80%
NEW PACKAGE IN
C-STORES (1)
of single-serve beer is sold
in c-stores
(1) IRI, Total U.S. Convenience; $ sales for January 1, 2017 through May 14, 2017
(2) Scarborough Multi Market 21+ 2015 Release
(3)
(3) IRI, Total U.S. Convenience & Total U.S. Multi-Outlet+Conv; for the 52 weeks ending May 14, 2017
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DISTRIBUTION OPPORTUNITIES on-premise
(1)
CONSTELLATION HIGH SINGLE DIGIT GROWTH
BRANDS
VS.
(1)
INDUSTRY LOW SINGLE DIGIT DECLINE
CONSTELLATION IMPORT
DRAFT BEER GROWTH
~30% (2)
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U.S. HISPANIC
LDA ADULTS
FROM 2010 - 2015 NEARLY 80% OF THE
COUNTIES IN THE U.S. SAW DOUBLE DIGIT
HISPANIC POPULATION GROWTH 46M
36M
2010
2011
2012
2013
2014
2015
2016
2018
2019
2020
2021
2022
2023
2024
2025
2017
Source: American Community Survey 2010-2015, Latinum Population Projection Model; factfinder.census.gov;
LDA = Legal Drinking Age 30
HISPANICS PREFER IMPORTS & our brands
AFFINITY
44%
CONSUMPTION OF BEER
42% 65
30% 57
24% 24% 23% 55
19% 18%
46
8%
44
43
40
40
40
HISPANICS NON-HISPANICS
Source: Scarborough 2017 21+ Source: Kantar MillWardBrown Research as of May 31, 2017
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65% 30% 65% 85% 60%
=
GENERAL GENERAL GENERAL GENERAL GENERAL
MARKET MARKET MARKET MARKET MARKET
TOTAL
~40%
HISPANIC
Source: Nielsen expanded Hispanic panel, 52 weeks ending December 31, 2016 32
MARKETING approach
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CORONA EXTRA
Saber Vivir
Know how to live
# 1
Import
Fighting
For Better
# 3
Tenacious, straight-forward,
genuine, proud, loyal,
confident
High-End
# 2
Import
The Light
Cerveza
# 7
High-End
~17M
Cases
+6%
# 6
Import
Spirit
of Baja
# 16
High-End
Adventurous,
laid-back, unpretentious,
confident, rugged
# 8
Import
~5M Cases
GROWTH OPPORTUNITIES
gold network alignment
sculpin brand focus
innovation leadership
portfolio segmentation
12 pack opportunities
1st national digital marketing
campaign
leveraging import beer business for
marketing / national accounts
Source: IRI, Total U.S. Multi-Outlet + Convenience; for the 52 weeks ending
May 14, 2017; company estimates | 39
INVESTING IN LOCAL TEAM
SPONSORSHIPS &VENUES
40
OUR BEER BUSINESS
POWERFUL brands
DISTRIBUTION opportunity
INNOVATION runway
FAVORABLE demographics
41
wine
B E T HE L EADER I N
P R EM I UM WI NE
&
spirits
B ROA D EN P O RTFO LI O O F
P R EM I UM S P I R I TS
B R ANDS
42
U.S. WINE & SPIRITS MARKET PROVIDES
consistent growth
WINE MARKET WINE MARKET
VOLUME 5 YEAR CAGR
STEADY VOLUME GROWTH
+3% DOLLAR 5 YEAR CAGR
POSITIVE PRICE / MIX
+6%
1 YEAR ANNUAL % GROWTH RATE
6.2
5.1
4.0
1.9
0.9
0.1
CPG INDUSTRY WINE SPIRITS
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WINE & SPIRITS focus brands STRATEGY
DRIVES STRONG GROWTH
SELECT FOCUS BRANDS
IRI $ SALES GROWTH VS. YEAR AGO
(1)
FOCUS BRANDS
REPRESENT (2)
~70%
+38% +15%
+35%
~60%
+38%
OF WINE & SPIRITS
VOLUME
(1) IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending May 14, 2017 against the comparable prior year period
(2) FY17 company measures
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STZS focus brands STRATEGY
DRIVES STRONG GROWTH
14.0%
OPERATING MARGIN GOAL >30%
12.0%
10.0%
8.0%
6.0%
ATTRACTIVE >200BPS
OPERATING OPERATING MARGIN
EXPANSION
4.0% ROIC (FY15 - FY17)
2.0%
0.0%
FY16 FY17 FY18 Est. (1)
NET SALES GROWTH OPERATING INCOME GROWTH
(1) FY18 estimate based on FY18 guidance, excluding wine and spirits segment results related to the Canadian wine business divestiture
BPS = Basis Points
| 45
KIM CRAWFORD brand building
Kim Crawford 9LE Depletions (2)
1,200,000
16% CAGR
1,000,000
800,000
600,000
400,000
200,000
0
FY2015 FY2016 FY2017
CONSUMER SENSORY
INSIGHTS
ACCOUNT SEGMENTATION
right products, at the right place
at the right time
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USING CONSUMER INSIGHTS to refresh brands
NEW BOTTLE SHAPE & WEIGHT
Heavier Glass Weight vs. Current (Reds)
Broader Shoulders
Tapered Profile
Flared Heel
NEW LABEL
Unique Die-Cut
Quality Paper Stock
Refined Brand Mark
Prominent Tower
In-Hand Quality
NEW
+81% +38%
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spirits portfolio EVOLUTION
ACQUISITIONS
ENHANCING & PREMIUMIZING
VENTURES
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OUR WINE & SPIRITS
BUSINESS
FANTASTIC categories
CONSUMERS trading up
FOCUS BRANDS strength
STRONG INNOVATION pipeline
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51
BARCLAYS BACK TO
SCHOOL CONFERENCE
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52
DELIVERING FINANCIAL growth (1)
NET SALES 15% CAGR EBIT 21% CAGR DILUTED EPS 28% CAGR
(1) On a comparable basis, net sales and EBIT in billions; a reconciliation to the most directly comparable GAAP financial measure is
included within the appendix of this presentation
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FY18 FY20 GROWTH vision
C O N S O L I D A T E D N E T S A L E S : MID TO HIGH SINGLE DIGIT GROWTH
BEER SALES HIGH SINGLE DIGIT GROWTH WINE & SPIRITS SALES MID SINGLE DIGIT GROWTH
(1) (1)
+ MSD-HSD Volume Growth; Greater Than High-End U.S. + LSD-MSD Volume Growth; In-Line/Better Than U.S. Wine
Beer Category and Spirits Category
+ Annual Pricing of 1-2% + Mix / Price Benefits
90%
10% OTHER 10% OTHER
DEMOGRAPHICS DEMOGRAPHICS
80% 20% Hispanics and Millennials 20% Hispanics and Millennials
70%
TRADE-UP TRADE-UP
60%
10% INNOVATION
20% INNOVATION
50%
40%
30%
20%
60% DISTRIBUTION 50% DISTRIBUTION
& SPACE
10%
0%
headwinds
NORMALIZATION OF INCREASED
FX / COMMODITIES DEPRECIATION
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FREE CASH FLOW HISTORY AND opportunity
FY17 : ~$1.7B OPERATING CASH FLOW OPERATING CASH
FLOW GROWTH
$2,500
$2,000
+
CAPEX MODERATION
MILLIONS
$1,000
=
$500
FY19 ACHIEVE
$0
FY14 FY15 FY16 FY17 FY18 EST
(1)
$1B
NET CASH PROVIDED BY OPERATING ACTIVITIES FCF MILESTONE
(2)
FREE CASH FLOW
(1) Based on the midpoint of the guidance range
(2) Free cash flow (FCF) defined as net cash provided by operating activities less purchases of property, plant and equipment; a reconciliation
to the most directly comparable GAAP financial measure is included within the appendix of this presentation
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debt / leverage HISTORY AND TARGET
HISTORICAL LEVERAGE TARGET: CURRENT LEVERAGE TARGET:
3X - 4X ~3.5X Over The Long Term
(1)
$10.0 6X
(1) Net debt defined as debt less cash, EBITDA is on a comparable basis; a reconciliation to the most directly comparable GAAP financial
measure is included within the appendix of this presentation; LTM = Last Twelve Months
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CASH priorities
Leverage Ratio TARGET: ~3.5x
1 2 3 4
BUSINESS INVESTMENT GROW DIVIDEND TARGETED M&A DEBT PAY DOWN /
SHARE REPURCHASE
Beer Capacity Target 25%-30% Payout ROIC Accretive Manage Within ~3.5X
Expansion Activities Ratio Growth Momentum Leverage Target
Investment to Margin Accretive
Support Growth
Synergistic
Fills Portfolio Gap
Consumer-Led
Low Risk Integration
Leverage Target Discipline
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long-term INVESTMENT CASE
SIGNIFICANT CASH
ATTRACTIVE GROWTH BEST IN CLASS GROWTH
GENERATION &
CATEGORIES WITHIN & PROFIT MARGIN
SHAREHOLDER RETURN
CONSUMER SPACE PROFILES IN CPG
OPPORTUNITIES
| 62
CORONA LIMITED EDITION
CAN COMMERCIAL
63
RMPS DIGITAL
64
MODELO ESPECIAL FIGHTING
SPIRIT COMMERCIAL
65
BLACKBOX COMMERCIAL
66
PACIFICO COMMERCIAL
67
BALLAST POINT DIGITAL
68
MEIOMI DIGITAL
69
CORONA LIGHT COMMERCIAL 70
SVEDKA BLUE RASPBERRY DIGITAL
71
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72
appendix
| 73
COMPARABLE MEASURES (NON-GAAP)
Comparable measures are provided because management uses this information in evaluating the results of the core
operations of the Company and/or internal goal setting. In addition, the Company believes this information provides
investors better insight on underlying business trends and results in order to evaluate year over year financial
performance. As such, the following items, when appropriate, are excluded from comparable results:
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COMPARABLE MEASURES (NON-GAAP)
Restructuring and Related Charges
Global Initiative The Global Initiative includes costs associated with the Companys plan to simplify its
business, increase efficiencies and reduce its cost structure on a global basis. The Global Initiative includes
the elimination of approximately five percent of its global workforce and the termination of certain contracts, both
of which are recorded primarily as restructuring charges. In addition, the Global Initiative includes the closure of
certain office, production and warehouse facilities and a streamlining of the Companys production footprint and
sales and administrative organization. Costs associated with these items consist of accelerated depreciation,
which is recorded to cost of product sold; and other costs, which are recorded to selling, general and
administrative expenses. Lastly, the Global Initiative includes other non-material restructuring activities
primarily in connection with the consolidation of the Companys remaining spirits business into its North
American operations following the March 2009 disposition of its value spirits business.
Fiscal 2008 Plan The Fiscal 2008 Plan includes restructuring charges and acquisition-related integration
BEST IN CLASS
costs associated with the Companys plan to streamline certain of its international operations, primarily in
Australia, and its plan to streamline certain of its operations in the U.S., primarily in connection with the
GROWTH & PROFIT
restructuring and integration of the operations of the acquired Fortune Brands U.S. wine portfolio. In addition,
primarily in connection with the rationalization of the Companys U.S. wine portfolio, the Fiscal 2008 Plan
MARGIN PROFILES IN
includes costs associated with the write-down of certain inventory, which is recorded to cost of product sold;
CPG
accelerated depreciation for the consolidation of certain manufacturing processes, which is recorded to cost of
product sold; and impairment charges associated with certain assets, which are recorded to impairment of
goodwill and intangible assets.
Fiscal 2012 Initiative The Fiscal 2012 Initiative includes costs associated with the Companys plan to
streamline operations, gain efficiencies and reduce its cost structure following the sale of 80.1% of its
Australian and U.K. business. The Fiscal 2012 Initiative includes the elimination of approximately two to three
percent of its global workforce, which is recorded primarily as a restructuring charge, and other costs, which are
recorded to selling, general and administrative expenses.
Fiscal 2016 Plan The Fiscal 2016 Plan includes restructuring and related charges, consisting primarily of
employee termination benefit costs, to streamline and simplify processes, and shift resources and investment
to long-term, profitable growth opportunities across the business.
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COMPARABLE MEASURES (NON-GAAP)
Other
Other includes items that are not specifically related to acquisitions and divestitures or restructuring and related
activities (e.g. net (gain) loss from the mark to fair value of undesignated commodity derivative contracts prior to
settlement, impairment of assets, dividend income from a retained interest in a previously divested business
and loss on write-off of debt issuance costs).
Comparable Basis Earnings before Interest and Taxes ("Comparable Basis EBIT"), as used by the Company,
means operating income plus equity in earnings (loss) of equity method investees, both on a comparable basis.
Comparable Basis EBIT is considered a performance measure and the Company considers operating income the
most comparable GAAP measure. Comparable Basis EBIT is used by management in evaluating the results of the
core operations of the Company including the results of its equity method investments. In addition, the Company
believes this information provides investors better insight on underlying business trends and results in order to
BEST IN CLASS
evaluate year over year financial performance.
The Company has disclosed its debt to EBITDA ratio GROWTHand net debt to & PROFIT
EBITDA ratio. These are non-GAAP financial
measures that management believes are of interest to investors and lenders in relation to the Company's overall
MARGIN
capital structure and its ability to borrow additional PROFILES
funds. The Company IN a measure of liquidity
considers EBITDA
CPG
and considers net cash provided by operating activities the most comparable GAAP measure.
Free cash flow as used by the Company means the Company's net cash flow from operating activities prepared in
accordance with generally accepted accounting principles in the U.S. ("GAAP") less capital expenditures for
property, plant and equipment. Free cash flow is considered a liquidity measure and provides useful information to
investors about the amount of cash generated, which can then be used, after required debt service and dividend
payments, for other general corporate purposes. A limitation of free cash flow is that it does not represent the total
increase or decrease in the cash balance for the period. Free cash flow should be considered in addition to, not as
a substitute for, or superior to, cash flow from operating activities prepared in accordance with GAAP.
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REPORTED STATEMENT OF OPERATIONS (GAAP)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Net sales $ 2,654.3 $ 2,796.1 $ 4,867.7 $ 6,028.0 $ 6,548.4 $ 7,331.5 $ 1,935.5
Cost of product sold (1,592.2) (1,687.8) (2,876.0) (3,449.4) (3,606.1) (3,802.1) (940.2)
Gross profit 1,062.1 1,108.3 1,991.7 2,578.6 2,942.3 3,529.4 995.3
Selling, general and administrative expenses (1) (575.6) (585.4) (1,196.0) (1,078.4) (1,177.2) (1,392.4) (427.2)
Gain on sale of business - - - - - 262.4 -
Gain on remeasurement to fair value of equity method investment - - 1,642.0 - - - -
Operating income 486.5 522.9 2,437.7 1,500.2 1,765.1 2,399.4 568.1
Earnings (losses) from unconsolidated investments 228.5 233.1 87.8 21.5 51.1 27.3 0.4
Interest expense (181.0) (227.1) (323.2) (337.7) (313.9) (333.3) (82.4)
Loss on write-off of debt issuance costs - (12.5) - (4.4) (1.1) - (6.7)
Income before income taxes 534.0 516.4 2,202.3 1,179.6 1,501.2 2,093.4 479.4
(Provision for) benefit from income taxes (89.0) (128.6) (259.2) (343.4) (440.6) (554.2) (74.1)
Net income 445.0 387.8 1,943.1 836.2 1,060.6 1,539.2 405.3
Net (income) loss attributable to noncontrolling interests - - - 3.1 (5.7) (4.1) (2.5)
Net income attributable to CBI $ 445.0 $ 387.8 $ 1,943.1 $ 839.3 $ 1,054.9 $ 1,535.1 $ 402.8
BEST IN CLASS
Diluted net income per common share attributable to CBI $ 2.13 $ 2.04 $ 9.83 $ 4.17 $ 5.18 $ 7.52 $ 2.00
Diluted weighted average common shares outstanding 208.655 190.307 197.570 201.224 203.821 204.099 201.030
24.9%
-
MARGIN PROFILES IN
11.8%
-
29.1%
- $ 1.12
29.3%
$ 1.44
26.5%
$ 0.47
15.5%
NM - Not meaningful
(1)
Includes impairment of intangible assets of $38.1 million for the year ended February 29, 2012, impairment of goodwill and intangible assets of
$300.9 million for the year ended February 28, 2014, impairment of intangible assets of $46.0 million for the year ended February 28, 2017, and
impairment of intangible assets of $86.6 million for the three months ended May 31, 2017.
| 77
RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Net Sales
Reported Net Sales $ 2,654.3 $ 2,796.1 $ 4,867.7 $ 6,028.0 $ 6,548.4 $ 7,331.5 $ 1,935.5
Comparable Net Sales $ 2,654.3 $ 2,796.1 $ 4,867.7 $ 6,028.0 $ 6,548.4 $ 7,331.5 $ 1,935.5
Gross Profit
CPG
Reported Gross Profit $ 1,062.1 $ 1,108.3 $ 1,991.7 $ 2,578.6 $ 2,942.3 $ 3,529.4 $ 995.3
Inventory Step-Up 1.6 7.8 11.0 - 18.4 20.1 7.0
Favorable Interim Supply Agreement - - 6.0 28.4 31.7 2.2 -
Net Gain/Loss on Undesignated Commodity Swap Contracts - - (1.5) 32.7 48.1 (16.3) 3.1
Settlements of Undesignated Commodity Swap Contracts - - 0.5 (4.4) (29.5) (23.4) (2.4)
Inventory, Other - - - 2.8 - - -
Accelerated Depreciation 0.3 - - - - - -
Comparable Gross Profit $ 1,064.0 $ 1,116.1 $ 2,007.7 $ 2,638.1 $ 3,011.0 $ 3,512.0 $ 1,003.0
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Selling, General and Administrative Expenses
Reported Selling, General and Administrative Expenses $ (575.6) $ (585.4) $ (1,196.0) $ (1,078.4) $ (1,177.2) $ (1,392.4) $ (427.2)
Net Gain/Loss on Sale of and/or Write-down of Nonstrategic Assets - (0.5) - 0.3 - - -
Deferred Compensation - - 7.0 - - - -
Selling, General and Administrative Expenses, Other - 0.7 0.3 - - 2.6 -
Gain/Loss on Sale of Pacific Northwest Assets 3.4 (4.0) - - - - -
Gain/Loss on Obligation from Put Option of Ruffino Shareholder (2.5) - - - - - -
Net Gains on Sale of Australian and U.K. Business (0.5) (7.1) - (7.5) - - -
Net Gain on Acquisition of Ruffino and Related Activities (3.8) - - - - - -
Gains in Connection with Releases from Certain Contractual Obligations BEST IN (7.5)
CLASS- (0.8) - - - -
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Operating Income
Reported Operating Income $ 486.5 $ 522.9 $ 2,437.7 $ 1,500.2 $ 1,765.1 $ 2,399.4 $ 568.1
Inventory Step-Up 1.6 7.8 11.0 - 18.4 20.1 7.0
Favorable Interim Supply Agreement - - 6.0 28.4 31.7 2.2 -
Net Gain/Loss on Undesignated Commodity Swap Contracts - - (1.5) 32.7 48.1 (16.3) 3.1
Settlements of Undesignated Commodity Swap Contracts - - 0.5 (4.4) (29.5) (23.4) (2.4)
Inventory, Other - - - 2.8 - - -
Accelerated Depreciation 0.3 - - - - - -
Net Gain/Loss on Sale of and/or Write-down of Nonstrategic Assets - (0.5) - 0.3 - - -
Deferred Compensation - - 7.0 - - - -
Selling, General and Administrative Expenses, Other
Gain/Loss on Sale of Pacific Northwest Assets BEST IN CLASS 3.4
- 0.7
(4.0)
0.3
-
-
-
-
-
2.6
-
-
-
Gain/Loss on Obligation from Put Option of Ruffino Shareholder
Net Gains on Sale of Australian and U.K. Business
GROWTH & PROFIT (2.5)
(0.5) (7.1)
- -
- (7.5)
- -
-
-
-
-
-
Net Gain on Acquisition of Ruffino and Related Activities
MARGIN PROFILES IN
Gains in Connection with Releases from Certain Contractual Obligations
(3.8)
(7.5)
-
- (0.8)
- -
-
-
-
-
-
-
-
Restructuring Charges
CPG
Transaction and related costs associated with pending and completed acquisitions
24.4
- 27.7
9.2
52.3
(3.1)
30.5
-
15.4
16.4
14.2
0.9
1.6
1.4
Costs Associated with Canadian Divestiture and Related Activities - - - - - 20.4 3.2
Impairment of Goodwill and Intangible Assets 38.1 - 300.9 - - 37.6 86.8
Gain on Sale of Business - - - - - (262.4) -
Gain on Remeasurement to Fair Value of Equity Method Investment - - (1,642.0) - - - -
Comparable Operating Income $ 540.0 $ 556.7 $ 1,168.3 $ 1,583.0 $ 1,865.6 $ 2,195.3 $ 668.8
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Interest Expense
Reported Interest Expense $ (181.0) $ (227.1) $ (323.2) $ (337.7) $ (313.9) $ (333.3) $ (82.4)
Comparable Interest Expense $ (181.0) $ (227.1) $ (323.2) $ (337.7) $ (313.9) $ (333.3) $ (82.4)
BEST IN CLASS
Favorable Interim Supply Agreement - - (1.7) (8.2) (9.2) (0.8) -
Net Gain/Loss on Undesignated Commodity Swap Contracts - - 0.5 (12.0) (17.8) 6.0 (1.2)
Settlements of Undesignated Commodity Swap Contracts - - (0.1) 1.6 10.9 8.8 0.9
Inventory, Other
Accelerated Depreciation
GROWTH & PROFIT (0.1)
- -
-
-
-
(1.1)
-
-
-
-
-
-
-
Net Gain/Loss on Sale of and/or Write-down of Nonstrategic Assets
Deferred Compensation MARGIN PROFILES IN -
-
0.2
- (2.6)
- (3.6)
-
-
-
-
-
-
-
CPG
Selling, General and Administrative Expenses, Other - (0.2) - - - (0.7) -
Gain/Loss on Sale of Pacific Northwest Assets (1.3) 1.5 - - - - -
Net Gains on Sale of Australian and U.K. Business 6.7 - - 2.2 - - -
Net Gain on Acquisition of Ruffino and Related Activities (0.5) - - - - - -
Gains in Connection with Releases from Certain Contractual Obligations 3.3 - 0.3 - - - -
Transaction and related costs associated with pending and completed acquisitions - (9.6) (18.0) (8.2) (5.7) (5.4) (0.7)
Restructuring Charges (8.8) (3.2) 1.1 - (6.0) (0.3) (0.5)
Costs Associated with Canadian Divestiture and Related Activities - - - - - (3.8) (0.8)
Impairment of Goodwill and Intangible Assets (9.5) - (5.8) - - (14.0) (32.4)
Gain on Sale of Business - - - - - 66.3 -
Gain on Remeasurement to Fair Value of Equity Method Investment - - - - - - -
Dividend from Unconsolidated Investment - - - - 9.2 - -
Equity Method Investments, Other - (0.4) - - - (0.7) -
Loss on Write-off of Debt Issuance Costs - (4.7) - (1.3) (0.3) - (2.6)
Income Tax Adjustments - - (2.3) - - - -
Comparable Provision for Income Taxes $ (99.7) $ (147.8) $ (291.3) $ (374.0) $ (466.4) $ (506.2) $ (113.8)
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Net (Income) Loss Attributable to Noncontrolling Interests
Reported Net (Income) Loss Attributable to Noncontrolling Interests $ - $ - $ - $ 3.1 $ (5.7) $ (4.1) $ (2.5)
Other - - - (2.9) 0.3 - -
Comparable Net (Income) Loss Attributable to Noncontrolling Interests $ - $ - $ - $ 0.2 $ (5.4) $ (4.1) $ (2.5)
MARGIN PROFILES IN
Gain/Loss on Sale of Pacific Northwest Assets 2.1 (2.5) - - - - -
Gain/Loss on Obligation from Put Option of Ruffino Shareholder (2.5) - - - - - -
CPG
Net Gains on Sale of Australian and U.K. Business 6.2 (7.1) - (5.3) - - -
Net Gain on Acquisition of Ruffino and Related Activities (4.3) - - - - - -
Gains in Connection with Releases from Certain Contractual Obligations (4.2) - (0.5) - - - -
Transaction and related costs associated with pending and completed acquisitions - 18.1 34.3 22.3 9.7 8.8 0.9
Restructuring Charges 15.6 6.0 (2.0) - 10.4 0.6 0.9
Costs Associated with Canadian Divestiture and Related Activities - - - - - 16.6 2.4
Impairment of Goodwill and Intangible Assets 28.6 - 295.1 - - 23.6 54.4
Gain on Sale of Business - - - - - (196.1) -
Gain on Remeasurement to Fair Value of Equity Method Investment - - (1,642.0) - - - -
Dividend from Unconsolidated Investment - - - - (15.3) - -
Equity Method Investments, Other - 0.6 0.1 - - 1.0 -
Loss on Write-off of Debt Issuance Costs - 7.8 - 3.1 0.8 - 4.1
Income Tax Adjustments - - (2.3) - - - -
Net Income/Loss Attributable to Noncontrolling Interests, Other - - - (2.9) 0.3 - -
Comparable Net Income Attributable to CBI $ 487.8 $ 415.9 $ 641.7 $ 893.0 $ 1,106.5 $ 1,380.7 $ 470.5
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Diluted Net Income Per Common Share Attributable to CBI (1)
Reported Diluted Net Income Common Per Share Attributable to CBI $ 2.13 $ 2.04 $ 9.83 $ 4.17 $ 5.18 $ 7.52 $ 2.00
Inventory Step-Up 0.01 0.03 0.04 - 0.06 0.06 0.02
Favorable Interim Supply Agreement - - 0.02 0.10 0.11 0.01 -
Net Gain/Loss on Undesignated Commodity Swap Contracts - - (0.01) 0.10 0.15 (0.05) 0.01
Settlements of Undesignated Commodity Swap Contracts - - - (0.01) (0.09) (0.07) (0.01)
Inventory, Other - - - 0.01 - - -
Accelerated Depreciation - - - - - - -
Net Gain/Loss on Sale of and/or Write-down of Nonstrategic Assets - - - (0.02) - - -
Deferred Compensation - - 0.02 - - - -
BEST IN CLASS
Selling, General and Administrative Expenses, Other - - - - - 0.01 -
Gain/Loss on Sale of Pacific Northwest Assets 0.01 (0.01) - - - - -
MARGIN PROFILES IN
Net Gain on Acquisition of Ruffino and Related Activities (0.02) - - - - - -
Gains in Connection with Releases from Certain Contractual Obligations (0.02) - - - - - -
CPG
Transaction and related costs associated with pending and completed acquisitions - 0.10 0.17 0.11 0.05 0.04 -
Restructuring Charges 0.07 0.03 (0.01) - 0.05 - -
Costs Associated with Canadian Divestiture and Related Activities - - - - - 0.08 0.01
Impairment of Goodwill and Intangible Assets 0.14 - 1.49 - - 0.12 0.27
Gain on Sale of Business - - - - - (0.96) -
Gain on Remeasurement to Fair Value of Equity Method Investment - - (8.31) - - - -
Dividend from Unconsolidated Investment - - - - (0.08) - -
Equity Method Investments, Other - - - - - - -
Loss on Write-off of Debt Issuance Costs - 0.04 - 0.02 - - 0.02
Income Tax Adjustments - - (0.01) - - - -
Net Income/Loss Attributable to Noncontrolling Interests, Other - - - (0.01) - - -
Comparable Diluted Net Income Per Common Share Attributable to CBI $ 2.34 $ 2.19 $ 3.25 $ 4.44 $ 5.43 $ 6.76 $ 2.34
(1)
May not sum due to rounding as each item is computed independently.
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COMPARABLE STATEMENTS OF INCOME (NON-GAAP)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions, except per share data)
Net sales $ 2,654.3 $ 2,796.1 $ 4,867.7 $ 6,028.0 $ 6,548.4 $ 7,331.5 $ 1,935.5
Cost of product sold (1,590.3) (1,680.0) (2,860.0) (3,389.9) (3,537.4) (3,819.5) (932.5)
Gross profit 1,064.0 1,116.1 2,007.7 2,638.1 3,011.0 3,512.0 1,003.0
Selling, general and administrative expenses (524.0) (559.4) (839.4) (1,055.1) (1,145.4) (1,316.7) (334.2)
Operating income 540.0 556.7 1,168.3 1,583.0 1,865.6 2,195.3 668.8
Earnings from unconsolidated investments 228.5 234.1 87.9 21.5 26.6 29.0 0.4
Earnings before interest and tax 768.5 790.8 1,256.2 1,604.5 1,892.2 2,224.3 669.2
Interest expense (181.0) (227.1) (323.2) (337.7) (313.9) (333.3) (82.4)
Income before income taxes 587.5 563.7 933.0 1,266.8 1,578.3 1,891.0 586.8
Provision for income taxes (99.7) (147.8) (291.3) (374.0) (466.4) (506.2) (113.8)
Net income 487.8 415.9 641.7 892.8 1,111.9 1,384.8 473.0
Net (income) loss attributable to noncontrolling interests - - - 0.2 (5.4) (4.1) (2.5)
Net income attributable to CBI $ 487.8 $ 415.9 $ 641.7 $ 893.0 $ 1,106.5 $ 1,380.7 $ 470.5
Diluted net income per common share attributable to CBI $ BEST IN CLASS
2.34 $ 2.19 $ 3.25 $ 4.44 $ 5.43 $ 6.76 $ 2.34
CPG
Class B Convertible Common Stock - - - - $ 1.12 $ 1.44 $ 0.47
Comparable effective tax rate 17.0% 26.2% 31.2% 29.5% 29.6% 26.8% 19.4%
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ADJUSTED EBITDA CALCULATION AND RECONCILIATION, FREE CASH FLOW
RECONCILIATION (NON-GAAP)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First
Year Year Year Year Year Year Quarter
2012 2013 2014 2015 2016 2017 2018
(in millions)
Comparable Net Sales $ 2,654.3 $ 2,796.1 $ 4,867.7 $ 6,028.0 $ 6,548.4 $ 7,331.5 $ 1,935.5
MARGIN PROFILES IN
Comparable Basis EBITDA $ 872.0 $ 906.2 $ 1,405.5 $ 1,778.1 $ 2,081.5 $ 2,470.0 $ 740.7
LTM Comparable Basis EBITDA $ 872.0 $ 906.2 $ 1,405.5 $ 1,778.1 $ 2,081.5 $ 2,470.0 $ 2,603.5
Debt to LTM Comparable Basis EBITDA 3.6 3.6 5.0 4.1 3.9 3.7 3.5
Net Debt to LTM Comparable Basis EBITDA 3.5 3.3 4.9 4.0 3.8 3.7 3.5
(2)
Certain items, when material, are reported as part of the Change in Operating Assets and Liabilities in the Company's quarterly filings. If not material, these
same items are reported as part of Other Items. For reporting in this analysis, presentation for those certain items is consistent with the presentation in the
Company's annual filings.
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