Beruflich Dokumente
Kultur Dokumente
BILL NEWLANDS,
PRESIDENT & COO
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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 previously announced acquisitions, investments and divestitures; beer operations expansion, construction and optimization
activities take place on expected scope, terms, costs and timetables; the accuracy of supply projections, including those relating to beer operations expansion,
construction and optimization 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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KEY TAKEAWAYS
DRIVING TBA GROWTH INNOVATION, FINANCIAL STRENGTH &
THROUGH BRAND BUILDING, ATTRACTIVE GROWTH
PREMIUMIZATION & EMERGING CATEGORIES, PROFILE
SCALE & EXECUTION FOCUS
SUSTAINING BUILDING
PROFITABLE SHAREHOLDER
growth value
TBA = Total Beverage Alcohol | 3
TOTAL U.S. BEVERAGE ALCOHOL category
Beverage High-End All Other
Total CPG Spirits Wine
Alcohol Beer Beer
(3)
10 Year CAGR
2% 1% 2% 2% 5% -2%
(1)
YoY IRI Growth
(2006-2016 )
(3)
5 Year CAGR
~$50B NA
(2)
IRI $ Sales
(2011-2016)
2% 2% 8% -3%
(3)
9L Equivalized Cases as % of TBA
100%
80%
60%
40%
20%
0%
2006 2016
(1) IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending December 3, 2017 against the comparable prior year period
(2)
(3)
IRI, Total U.S. Multi-Outlet + Convenience for the 52 weeks ending December 3, 2017
Beer - Beer Marketer’s Insights, based on its High-End beer segmentation definition which includes Imports, Craft, Domestic Super Premium, Cider,
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Flavored Malt Beverages; Wine & Spirits – Beverage Information Group; CAGR = Compound Annual Growth Rate; CPG = Consumer Packaged Goods
U.S. RETAIL DOLLAR SALES GROWTH OF BEVERAGE ALCOHOL SUPPLIERS
$600
CONSTELLATION IS $500
$400
MILLIONS
#
1
$300
$200
$100
$0
IN RETAIL DOLLAR
SALES GROWTH
CONTRIBUTING ALMOST
40% OF TBA GROWTH
Source: IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending December 3, 2017 against the
comparable prior year period; National Alcohol Beverage Control Association (NABCA), 12 months ending November 2017
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CONSTELLATION BRANDS scale
TOTAL BEVERAGE ALCOHOL LEADER BEER BUSINESS
• #1 multi-category supplier in U.S. • #1 high-end beer company in U.S.
• 80+ premium consumer brands • #1 imported beer company in U.S.
• ~10,000 employees • #3 beer company in U.S.
• ~40 facilities
Source: IRI, National Alcohol Beverage Control Association (NABCA), International Wine and Spirit Research (IWSR), Beverage Information Group, company estimates as of December 3, 2017
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CHANGING CONSUMER profiles
TBA CONSUMERS TBA CONSUMERS
SHARE OF DOLLARS (1) DOLLARS PER BUYER (2)
$1,452
BEER ONLY
7%
• MORE THAN HALF OF TBA DOLLAR SALES COME FROM CONSUMERS WHO DRINK ACROSS ALL THREE
CATEGORIES (BEER, WINE AND SPIRITS)
• U.S. CONSUMERS WHO DRINK ACROSS CATEGORIES SPEND MORE ON THEIR AVERAGE BEVERAGE ALCOHOL
PURCHASES
(1) IRI, Total U.S. All Outlets, 52 weeks ending December 3, 2017
(2) IRI, Total U.S. All Outlets, 52 weeks ending December 3, 2017, average household TBA | 7
spend per year
TBA GROWTH leadership platform
BRINGING ACTIONABLE CAPABILITIES TO CUSTOMERS
INNOVATION INSIGHTS
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CONSTELLATION growth organization
LEVERAGING CONSUMER-LED TRENDS, SENSORY & INSIGHTS ACROSS TBA TO DRIVE INNOVATION
PACKAGING FLAVORS
E-COMMERCE
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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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CANOPY GROWTH investment
ABOUT CANOPY STRATEGIC RATIONALE
• Largest publicly traded cannabis supplier • First-mover emerging market advantage
in the world and a leader in the medical for potentially significant consumer
cannabis market in Canada category
• Medicinal Cannabis Brands Offered: • Capitalize on cannabis beverages
market through joint product
development in federally legal markets
• Recreational flowers and oils legal – • C$245 million (~$191 million) investment
Summer 2018 (1) • Initial 9.9% ownership interest
• Recreational edibles (includes beverages) • Warrants to purchase additional
legal – Summer 2019 (2) ownership interest in the future
(1) Estimated Canadian adult access cannabis legalization timeline
(2) Estimated Canadian adult access cannabis legalization timeline for edibles could be within 12 | 11
months of legalization of flowers and oils
CANNABIS MARKET opportunity
GLOBAL OPPORTUNITY: U.S. OPPORTUNITY:
POTENTIAL ~$200B INDUSTRY BY 2032 ~$50B INDUSTRY TODAY(1)
Allowed in
private clubs
Cigarettes 77
Wine 60
Current Commercial
Legal Status
Medical
Total Cannabis 50
Recreational
Limited
Note: Cannabis remains illegal at a federal level in the United States
Illegal
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beer
LEAD THE HIGH-END
U.S. BEER MARKET
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14
14
U.S. BEER PERFORMANCE overview
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% -3%
High-End Beer +5% +8% +7%
Craft Beer +11% +14% +13%
3
(SHIPMENTS BILLIONS)
Millions
EQUIVALIZED CASES
0
2006 2016
HIGH-END BEER ALL OTHER BEER
HIGH-END BEER IS DRIVING GROWTH IN THE U.S. BEER CATEGORY
PROJECTED GROWTH MSD THROUGH FISCAL 2020
STZ GOAL: OUTPERFORM THE HIGH-END
Source: Beer Marketer’s Insights, based on its High-End beer segmentation definition: includes Imports,
Craft, Domestic Super Premium, Cider, Flavored Malt Beverages | 15
MSD = Mid Single Digit
BEER MEDIUM TERM growth drivers
FY17 ~10% VOLUME MEDIUM TERM MSD TO
(1)
GROWTH HSD VOLUME GROWTH
100%
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%
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high-end BEER THOUGHT LEADERSHIP PLATFORM
DATA CONSUMER INSIGHTS ACTION
• Point of Sale (POS) • Shelf Flow Optimization
• Customer Loyalty • Market Structure
• Consumer Path to Purchase • Space Opportunity
• IRI Syndicated • Assortment Solutions
• Distributor • Hispanic Insights
• Shelf Research • Industry Outlook
• Predictive Analytics • On-Premise Experience
• Analytical Tools
• Virtual Shelf Simulation
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shopper first BEER SHELF
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: American Community Survey 2010-2015, Latinum Population Projection Model; factfinder.census.gov;
LDA = Legal Drinking Age 20
HISPANICS PREFER IMPORTS & our brands
AFFINITY
44% 65
CONSUMPTION OF BEER
42%
61
30% 51
24% 24% 23% 46
19% 18%
42
8% 41
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65% 30% 65% 85% 60%
GENERAL
MARKET
GENERAL
MARKET
GENERAL
MARKET
GENERAL
MARKET
GENERAL
MARKET =
TOTAL
35% 70% 35% 15% 40%
HISPANIC HISPANIC HISPANIC HISPANIC HISPANIC
~40%
HISPANIC
Source: Nielsen expanded Hispanic panel, 52 weeks ending December 31, 2016
22
marketing FOR OUR BEER BRANDS
MISSION: Build CONSUMER DEMAND
Drives Leads to
Increase in Equity More space
Consumer Loyalty More distribution
Higher Repurchase Rates Increased velocity
Reduced Price Sensitivity Pricing power
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CORONA BRAND FAMILY
Corona Premier
Corona Light
“The Refined, Light
“The Light Cerveza”
Beer Experience”
Corona Familiar
Corona Extra “Strong Bonds Over
“Saber Vivir” Shared
Know how to live Experiences”
“Fighting
For Better”
Tenacious, straight-
forward, genuine,
proud, loyal, confident
# 3
High-End
# 2
Import
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PACIFICO
“Spirit
of Baja”
# 15
High-End
Adventurous,
laid-back, unpretentious,
confident, rugged
# 8
Import
• Portfolio Segmentation
• Tap Rooms
• Increased Marketing
FUNKY BUDDHA
INITIATIVES
• Launch of 6 Pack & 12 Pack Cans
• Expansion to Six Southeastern States
• Redesign of Brand Packaging
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BEER innovation
Line Extensions
Domestic Super
on Existing ABA Craft
Premium
Brands
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CORONA PREMIER VIDEO
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CORONA FAMILIAR VIDEO
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OUR BEER BUSINESS
POWERFUL brands
DISTRIBUTION opportunity
INNOVATION runway
FAVORABLE demographics
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33
U.S. WINE MARKET consistent growth & premiumization
HISTORY (1) CURRENT (2)
IRI $ Sales vs. Prior Year IRI $ Sales vs. Prior Year
16%
12 weeks ending 1/28/18
15%
12% 12%
9%
8%
6%
4% 3%
0% 0%
2013 2014 2015 2016 2017 -3%
-4%
>$11* <$11 Total Wine
>$11* RETAIL <$11 RETAIL STZ MARKET
REPRESENT (2)
+32%
+16%
+23%
~65%
OF WINE & SPIRITS
PROFITABILITY
~60%
+20%
OF WINE & SPIRITS
VOLUME
(1) IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending
December 3, 2017 against the comparable prior year period | 36
(2) Nine months ending November 30, 2017 company measures
WINE & SPIRITS focus brands STRATEGY DRIVES STRONG GROWTH
OPERATING MARGIN GOAL = 30%
14%
12%
10%
>200BPS
8%
ATTRACTIVE
6%
OPERATING ROIC
4% OPERATING MARGIN
2% EXPANSION
(FY15 - FY17)
0%
FY16 FY17 FY18 Est.
(1)
(1) FY18 estimate based on FY18 guidance, excluding wine and spirits segment results related to the Canadian wine business divestiture
BPS = Basis Points
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BRAND building
Kim Crawford 9LE Depletions (1)
1,200,000
16% CAGR
1,000,000
800,000
600,000
400,000
200,000
0
FY2015 FY2016 FY2017
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DEVELOPING INDUSTRY-LEADING innovation
OUR INNOVATION CAPTURE CONSUMER
BUILD BIG BETS LEAD WITH LUXURY
PRIORITIES: CENTRIC TRENDS
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premiumization THROUGH M&A
+81% +23%
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spirits portfolio EVOLUTION
ACQUISITIONS
VENTURES
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OUR WINE & SPIRITS
BUSINESS
FANTASTIC categories
CONSUMERS trading up
FOCUS BRANDS strength
STRONG INNOVATION pipeline
STEADY EVOLUTION TO THE high-end | 43 43
FINANCIAL SUMMARY
44
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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
BEER EBIT HIGH SINGLE TO LOW DOUBLE DIGIT GROWTH WINE & SPIRITS EBIT MID SINGLE DIGIT GROWTH
+ Pricing Benefits + Mix / Price Benefits
+ Expansion of Owned Glass Supply + Margin Accretive Innovation
+ Operational Efficiencies / Optimization + Improved Operating Asset Utilization
- Depreciation ramp-up, Normalization of FX / + General & Administrative Expense Management
Commodities, Marketing Investments - Marketing Investments
headwinds
NORMALIZATION OF INCREASED
FX / COMMODITIES DEPRECIATION
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SG&A EFFICIENCIES
LINK STRATEGY & EXECUTION RESOURCE PRIORITIZATION
FIT FOR
growth
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tax reform & rate CONSIDERATIONS
One-time adjustment to deferred and long term tax liabilities results in a net reduction of
(1)
$300 - $400 million
New 21% U.S. Federal statutory rate applies for the last two months of fiscal 2018
BUSINESS SHARE
INVESTMENT REPURCHASE
GROW BOLT-ON
DIVIDEND M&A
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INVESTING IN BEER capacity
(3)
~Fiscal Year FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 - FY 2020
FUTURE
Total Mexico
15 M HL 20 M HL 24 M HL 31.5 M HL 36.5 M HL
CONSIDERATION
Capacity(1)
TIME: 3 - 4 YEARS TO BUILD
INCREMENTAL CAPACITY
Effective
~160 ~210 ~250 ~330 ~385
Annualized
Supply(2) M Cases M Cases M Cases M Cases M Cases >$1B FCF (5)
STARTING FY19
Organic
Shipment ~242 +HSD(4)
Case Volume M Cases
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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
$1,500
=
$1,000
FY19 ACHIEVE
$500 >$1B
$0 FCF MILESTONE
(1)
FY14 FY15 FY16 FY17 FY18 EST
NET CASH PROVIDED BY OPERATING ACTIVITIES
FREE CASH FLOW
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debt / leverage HISTORY AND TARGET
HISTORICAL LEVERAGE TARGET: CURRENT LEVERAGE TARGET:
3X - 4X ~3.5X Over The Long Term
$8
5X • Facilitates capital allocation
$6 flexibility
4X
$4 • Provides lower cost access to
3X
credit markets
$2
• Maintains investment grade
$0 2X rating
FY14 FY15 FY16 FY17
NET DEBT NET DEBT / LTM EBITDA
(1) (2)
SIGNIFICANT CASH
ATTRACTIVE GROWTH BEST IN CLASS GROWTH
GENERATION &
CATEGORIES WITHIN & PROFIT MARGIN
SHAREHOLDER RETURN
CONSUMER SPACE PROFILES IN CPG
OPPORTUNITIES
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DELIVERING FINANCIAL growth
FY15 - FY17 CALENDAR 2018 CONSENSUS
HISTORICAL CAGR MULTIPLES
STZ Select CPG Select CPG
STZ Valuation
Growth Companies(1) Companies(2)
25%
35 X
20% 30 X
25 X
15%
20 X
10% 15 X
10 X
5%
5X
0% 0X
NET SALES EBIT NET SALES EBIT P/E EBITDA P/E EBITDA
(1) Per Goldman median estimates fiscal ‘15 to fiscal ‘17 CAGR, select CPG companies include Avon, Brown-Forman, Church & Dwight, Clorox, Coca-Cola, Colgate-Palmolive, Danone, Diageo,
Energizer, Estee Lauder, Flowers Foods, Heineken, Hershey, Mondelez, Monster, P&G, Pepsi, Pinnacle Foods, The Boston Beer Company, Treehouse Foods, Unilever, WD-40
(2) Per Goldman average estimates (calendar 2018), select CPG companies include Avon, Brown-Forman, Church & Dwight, Clorox, Coca-Cola, Colgate-Palmolive, Danone, Diageo, Energizer, Estee
Lauder, Flowers Foods, Heineken, Hershey, Mondelez, Monster, P&G, Pepsi, Pinnacle Foods, The Boston Beer Company, Treehouse Foods, Unilever, WD-40
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 valuable 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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, unrealized gain on equity securities 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
BEST IN CLASS
believes this information provides investors valuable insight on underlying business trends and results in order to
evaluate year over year financial performance.
GROWTH & PROFIT
MARGIN PROFILES IN
The Company has disclosed its debt to EBITDA ratio and net debt to 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
capital structure and its ability to borrow additional funds. CPG
The Company considers EBITDA a measure of liquidity
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 Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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 $ 2,084.5 $ 1,799.1 $ 5,819.1
Cost of product sold (1,592.2) (1,687.8) (2,876.0) (3,449.4) (3,606.1) (3,802.1) (940.2) (1,019.2) (891.6) (2,851.0)
Gross profit 1,062.1 1,108.3 1,991.7 2,578.6 2,942.3 3,529.4 995.3 1,065.3 907.5 2,968.1
Selling, general and administrative expenses (1) (575.6) (585.4) (1,196.0) (1,078.4) (1,177.2) (1,392.4) (427.2) (351.4) (420.7) (1,199.3)
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 2,399.4 568.1 713.9 486.8 1,768.8
Income (loss) from unconsolidated investments 228.5 233.1 87.8 21.5 51.1 27.3 0.4 0.2 249.1 249.7
Interest expense (181.0) (227.1) (323.2) (337.7) (313.9) (333.3) (82.4) (81.3) (81.4) (245.1)
Loss on write-off of debt issuance costs - (12.5) - (4.4) (1.1) - (6.7) (2.1) (10.3) (19.1)
Income before income taxes 534.0 516.4 2,202.3 1,179.6 1,501.2 2,093.4 479.4 630.7 644.2 1,754.3
(Provision for) benefit from income taxes (89.0) (128.6) (259.2) (343.4) (440.6) (554.2) (74.1) (128.7) (149.5) (352.3)
Net income 445.0 387.8 1,943.1 836.2 1,060.6 1,539.2 405.3 502.0 494.7 1,402.0
Net (income) loss attributable to noncontrolling interests - - - 3.1 (5.7) (4.1) (2.5) (2.5) (3.6) (8.6)
Net income attributable to CBI $ 445.0 $ 387.8 $ 1,943.1 $ 839.3 $ 1,054.9 $ 1,535.1 $ 402.8 $ 499.5 $ 491.1 $ 1,393.4
Diluted net income per common share attributable to CBI $ 2.13 $ 2.04 $ 9.83 $ 4.17 $ 5.18 $ 7.52 $ 2.00 $ 2.48 $ 2.44 $ 6.93
Diluted weighted average common shares outstanding 208.655 190.307 197.570 201.224 BEST IN CLASS
203.821 204.099 201.030 201.346 201.177 201.183
MARGIN PROFILES IN
Class B Convertible Common Stock - - - - $ 1.12 $ 1.44 $ 0.47 $ 0.47 $ 0.47 $ 1.41
Reported effective tax rate 16.7% 24.9% 11.8% 29.1% 29.3% 26.5% 15.5% 20.4% 23.2% 20.1%
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 nine months ended November 30, 2017.
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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 $ 2,084.5 $ 1,799.1 $ 5,819.1
Comparable Net Sales $ 2,654.3 $ 2,796.1 $ 4,867.7 $ 6,028.0 $ 6,548.4 $ 7,331.5 $ 1,935.5 $ 2,084.5 $ 1,799.1 $ 5,819.1
Gross Profit
Reported Gross Profit
MARGIN
$ 1,062.1
PROFILES
$ 1,108.3 $ 1,991.7
IN
$ 2,578.6 $ 2,942.3 $ 3,529.4 $ 995.3 $ 1,065.3 $ 907.5 $ 2,968.1
Inventory Step-Up
Favorable Interim Supply Agreement
1.6
-
CPG 7.8
-
11.0
6.0
-
28.4
18.4
31.7
20.1
2.2
7.0
-
2.8
-
7.2
-
17.0
-
Net (Gain) Loss on Undesignated Commodity Swap Contracts - - (1.5) 32.7 48.1 (16.3) 3.1 (3.9) (3.5) (4.3)
Settlements of Undesignated Commodity Swap Contracts - - 0.5 (4.4) (29.5) (23.4) (2.4) (2.3) 0.1 (4.6)
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 $ 1,061.9 $ 911.3 $ 2,976.2
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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) $ (351.4) $ (420.7) $ (1,199.3)
Deferred Compensation - - 7.0 - - - - - - -
Net (Gain) Loss on Sale of Business or Assets (1) 2.9 (11.6) - - - - - - - -
(Gain) Loss on Obligation from Put Option of Ruffino Shareholder (2.5) - - - - - - - - -
Net Gains on Sale of Australian and U.K. Business - - - (7.5) - - - - - -
Net Gain on Acquisition of Ruffino and Related Activities (3.8) - - - - - - - - -
Gains in Connection with Releases from Certain Contractual Obligations (7.5) - (0.8) - - - - - - -
Transaction and related costs associated with pending and completed acquisitions - 27.7 52.3 30.5 15.4 14.2 1.6 0.7 4.5 6.8
Restructuring and Related Charges 24.4 9.2 (3.1) - 16.4 0.9 1.4 2.0 4.1 7.5
Costs Associated with Canadian Divestiture and Related Activities - - - - - 20.4 3.2 - - 3.2
Loss on Contract Termination
Impairment of Goodwill and Intangible Assets BEST IN- CLASS
38.1
-
300.9
-
-
- - -
- 37.6
-
86.8
- -
-
59.0
-
59.0
86.8
Selling, General and Administrative Expenses, Other
Comparable Selling, General and Administrative Expenses
GROWTH
-
$ (524.0)
0.7
$ (559.4)
& $PROFIT
0.3
(839.4)
0.3
$ (1,055.1) $ (1,145.4)
- 2.6
$ (1,316.7) $
-
(334.2) $
(3.4)
(352.1) $
(8.1) (11.5)
(361.2) $ (1,047.5)
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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 $ 713.9 $ 486.8 $ 1,768.8
Inventory Step-Up 1.6 7.8 11.0 - 18.4 20.1 7.0 2.8 7.2 17.0
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 (3.9) (3.5) (4.3)
Settlements of Undesignated Commodity Swap Contracts - - 0.5 (4.4) (29.5) (23.4) (2.4) (2.3) 0.1 (4.6)
Inventory, Other - - - 2.8 - - - - - -
Accelerated Depreciation 0.3 - - - - - - - - -
Deferred Compensation - - 7.0 - - - - - - -
Net (Gain) Loss on Sale of Business or Assets (1) 2.9 (11.6) - - - - - - - -
(Gain) Loss on Obligation from Put Option of Ruffino Shareholder (2.5) - - - - - - - - -
Net Gains on Sale of Australian and U.K. Business - - - (7.5) - - - - - -
Net Gain on Acquisition of Ruffino and Related Activities (3.8) - - - - - - - - -
Gains in Connection with Releases from Certain Contractual Obligations
Transaction and related costs associated with pending and completed acquisitions
(7.5)
- BEST IN CLASS
27.7
- (0.8)
52.3 30.5
-
15.4
-
14.2
-
1.6
-
0.7
-
4.5
-
6.8
-
MARGIN PROFILES IN
Loss on Contract Termination - - - - - - - - 59.0 59.0
Impairment of Goodwill and Intangible Assets 38.1 - 300.9 - - 37.6 86.8 - - 86.8
CPG
Selling, General and Administrative Expenses, Other - 0.7 0.3 0.3 - 2.6 - (3.4) (8.1) (11.5)
Gain on Sale of Business (1) - - - - - (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 $ 709.8 $ 550.1 $ 1,928.7
Interest Expense
Reported Interest Expense $ (181.0) $ (227.1) $ (323.2) $ (337.7) $ (313.9) $ (333.3) $ (82.4) $ (81.3) $ (81.4) $ (245.1)
Comparable Interest Expense $ (181.0) $ (227.1) $ (323.2) $ (337.7) $ (313.9) $ (333.3) $ (82.4) $ (81.3) $ (81.4) $ (245.1)
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 2018
(in millions, except per share data)
Loss on Write-off of Debt Issuance Costs
Reported Loss on Write-off of Debt Issuance Costs $ - $ (12.5) $ - $ (4.4) $ (1.1) $ - $ (6.7) $ (2.1) $ (10.3) $ (19.1)
Loss on Write-off of Debt Issuance Costs - 12.5 - 4.4 1.1 - 6.7 2.1 10.3 19.1
Comparable Loss on Write-off of Debt Issuance Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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) $ (2.5) $ (3.6) $ (8.6)
Other - - - (2.9) 0.3 - - - - -
Comparable Net (Income) Loss Attributable to Noncontrolling Interests $ - $ - $ - $ 0.2 $ (5.4) $ (4.1) $ (2.5) $ (2.5) $ (3.6) $ (8.6)
CPG
Transaction and related costs associated with pending and completed acquisitions - 18.1 34.3 22.2 9.7 8.8 0.9 0.5 2.9 4.3
Restructuring and Related Charges 15.6 6.0 (2.0) - 10.4 0.6 0.9 1.2 2.6 4.7
Costs Associated with Canadian Divestiture and Related Activities - - - - - 16.6 2.4 - - 2.4
Loss on Contract Termination - - - - - - - - 41.3 41.3
Impairment of Goodwill and Intangible Assets 28.6 - 295.1 - - 23.6 54.4 - (0.5) 53.9
Selling, General and Administrative Expenses, Other - 0.5 0.3 (3.2) - 1.9 - (3.4) (6.0) (9.4)
Gain on Sale of Business (1) - - - - - (196.1) - - - -
Gain on Remeasurement to Fair Value of Equity Method Investment - - (1,642.0) - - - - - - -
Dividend from Unconsolidated Investment - - - - (15.3) - - - - -
Unrealized Gain on Equity Securities - - - - - - - - (138.8) (138.8)
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 1.6 7.6 13.3
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 $ 497.1 $ 402.6 $ 1,370.2
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RECONCILIATION OF REPORTED AND COMPARABLE NON-GAAP INFORMATION
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 2018
(in millions, except per share data)
Diluted Net Income Per Common Share Attributable to CBI (2)
Reported Diluted Net Income Common Per Share Attributable to CBI $ 2.13 $ 2.04 $ 9.83 $ 4.17 $ 5.18 $ 7.52 $ 2.00 $ 2.48 $ 2.44 $ 6.93
Inventory Step-Up 0.01 0.03 0.04 - 0.06 0.06 0.02 0.01 0.02 0.05
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 (0.01) (0.01) (0.01)
Settlements of Undesignated Commodity Swap Contracts - - - (0.01) (0.09) (0.07) (0.01) (0.01) - (0.01)
Inventory, Other - - - 0.01 - - - - - -
Accelerated Depreciation - - - - - - - - - -
Deferred Compensation - - 0.02 - - - - - - -
Net (Gain) Loss on Sale of Business or Assets (1) 0.04 (0.05) - - - - - - - -
(Gain) Loss on Obligation from Put Option of Ruffino Shareholder (0.01) - - - - - - - - -
Net Gains on Sale of Australian and U.K. Business - - - (0.03) - - - - - -
Net Gain on Acquisition of Ruffino and Related Activities
Gains in Connection with Releases from Certain Contractual Obligations
BEST IN CLASS
(0.02)
(0.02)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transaction and related costs associated with pending and completed acquisitions
Restructuring and Related Charges
GROWTH & PROFIT
-
0.07
0.10
0.03
0.17
(0.01)
0.11
-
0.05
0.05
0.04
-
-
-
-
0.01
0.01
0.01
0.02
0.02
Costs Associated with Canadian Divestiture and Related Activities
Loss on Contract Termination
MARGIN PROFILES IN
-
-
-
-
-
-
-
-
-
-
0.08
-
0.01
-
-
-
-
0.21
0.01
0.21
Impairment of Goodwill and Intangible Assets
Selling, General and Administrative Expenses, Other -
CPG
0.14 -
-
1.49
-
-
(0.02)
-
-
0.12
0.01
0.27
-
-
(0.02)
-
(0.03)
0.27
(0.05)
Gain on Sale of Business (1) - - - - - (0.96) - - - -
Gain on Remeasurement to Fair Value of Equity Method Investment - - (8.31) - - - - - - -
Dividend from Unconsolidated Investment - - - - (0.08) - - - - -
Unrealized Gain on Equity Securities - - - - - - - - (0.69) (0.69)
Equity Method Investments, Other - - - - - - - - - -
Loss on Write-off of Debt Issuance Costs - 0.04 - 0.02 - - 0.02 0.01 0.04 0.07
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 $ 2.47 $ 2.00 $ 6.81
(1)
Certain (gains) losses on sales, when material, are reported separately in the Company's quarterly filings. If not material, these same (gains) losses on sales are reported as part of Selling, General and Administrative Expenses.
(2)
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 Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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 $ 2,084.5 $ 1,799.1 $ 5,819.1
Cost of product sold (1,590.3) (1,680.0) (2,860.0) (3,389.9) (3,537.4) (3,819.5) (932.5) (1,022.6) (887.8) (2,842.9)
Gross profit 1,064.0 1,116.1 2,007.7 2,638.1 3,011.0 3,512.0 1,003.0 1,061.9 911.3 2,976.2
Selling, general and administrative expenses (524.0) (559.4) (839.4) (1,055.1) (1,145.4) (1,316.7) (334.2) (352.1) (361.2) (1,047.5)
Operating income 540.0 556.7 1,168.3 1,583.0 1,865.6 2,195.3 668.8 709.8 550.1 1,928.7
Income from unconsolidated investments 228.5 234.1 87.9 21.5 26.6 29.0 0.4 0.2 32.2 32.8
Earnings before interest and tax 768.5 790.8 1,256.2 1,604.5 1,892.2 2,224.3 669.2 710.0 582.3 1,961.5
Interest expense (181.0) (227.1) (323.2) (337.7) (313.9) (333.3) (82.4) (81.3) (81.4) (245.1)
Income before income taxes 587.5 563.7 933.0 1,266.8 1,578.3 1,891.0 586.8 628.7 500.9 1,716.4
Provision for income taxes (99.7) (147.8) (291.3) (374.0) (466.4) (506.2) (113.8) (129.1) (94.7) (337.6)
Net income 487.8 415.9 641.7 892.8 1,111.9 1,384.8 473.0 499.6 406.2 1,378.8
Net (income) loss attributable to noncontrolling interests - - - 0.2 (5.4) (4.1) (2.5) (2.5) (3.6) (8.6)
Net income attributable to CBI $ 487.8 $ 415.9 $ 641.7 $ 893.0 $ 1,106.5 $ 1,380.7 $ 470.5 $ 497.1 $ 402.6 $ 1,370.2
Diluted net income per common share attributable to CBI $ 2.34 $ 2.19 $
BEST IN CLASS
3.25 $ 4.44 $ 5.43 $ 6.76 $ 2.34 $ 2.47 $ 2.00 $ 6.81
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ADJUSTED EBITDA CALCULATION AND RECONCILIATION, FREE CASH FLOW RECONCILIATION (NON-GAAP)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal First Second Third Nine
Year Year Year Year Year Year Quarter Quarter Quarter Months
2012 2013 2014 2015 2016 2017 2018 2018 2018 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 $ 2,084.5 $ 1,799.1 $ 5,819.1
MARGIN PROFILES IN
Comparable Basis EBITDA $ 872.0 $ 906.2 $ 1,405.5 $ 1,778.1 $ 2,081.5 $ 2,470.0 $ 740.7 $ 782.3 $ 657.3 $ 2,180.3
LTM Comparable Basis EBITDA $ 872.0 $ 906.2 $ 1,405.5 $ 1,778.1 $ 2,081.5 $ 2,470.0 $ 2,603.5 $ 2,705.4 $ 2,740.1 $ 2,740.1
Debt to LTM Comparable Basis EBITDA 3.6 3.6 5.0 4.1 3.9 3.7 3.5 3.3 3.4 3.4
Net Debt to LTM Comparable Basis EBITDA 3.5 3.3 4.9 4.0 3.8 3.7 3.5 3.3 3.4 3.4
(1)
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.
| 69