2017 scorecard - brown-forman

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2017 SCORECARD COMPANY HIGHLIGHTS Page 2 ALCOHOL RESPONSIBILITY Page 5 ENVIRONMENTAL SUSTAINABILITY Page 6 EMPLOYEE RELATIONS AND DIVERSITY Page 8 COMMUNITY INVOLVEMENT Page 12

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Page 1: 2017 SCORECARD - Brown-Forman

2017 SCORECARDCOMPANY HIGHLIGHTS

Page 2

ALCOHOL RESPONSIBILITY

Page 5

ENVIRONMENTAL SUSTAINABILITYPage 6

EMPLOYEE RELATIONS AND DIVERSITY Page 8

COMMUNITY INVOLVEMENTPage 12

Page 2: 2017 SCORECARD - Brown-Forman

COMPANY HIGHLIGHTS*

NUMBER OF EMPLOYEES

4,711 FISCAL YEAR NET SALES

$3.0B DEPLETIONS WORLDWIDE

39.8M 9-liter cases

TOP 5 EMPLOYEE LOCATIONS

UNITED STATES MEXICO AUSTRALIA GERMANY UNITED KINGDOM

* In Fiscal 2017, we changed our presentation of excise taxes from the gross method (included in sales and costs) to the net method (excluded from sales). As a result, the amounts presented as “net sales” now exclude excise taxes. We believe the change in presentation to the net method is preferable because it is more representative of the internal financial information reviewed by management in assessing our performance and more consistent with the presentation used by our major competitors in their external financial statements.

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Page 3: 2017 SCORECARD - Brown-Forman

* Earnings per share have been adjusted for the 2-for-1 stock split in August 2016 and exclude the impact from Acquisitions & Divestitures.** We create economic value for stakeholders, including shareholders and employees around the world. We also donate funds and time to the communities where we live, work, and do business, and generate revenue for

our lenders and for governments through taxes. This chart illustrates the estimated percent of total cash distributed by stakeholder group in fiscal 2017. Numbers may not add to 100% due to rounding.

REPORTED EARNINGS PER SHARE, DILUTED* CASH DISTRIBUTED TO STAKEHOLDERS**

Company Highlights Scorecard

FY17FY16FY15FY14FY13FY12

Investors 34%

Government 46%

Employees 17%

Lenders 2%

Communities 1%

FY17

$1.63$1.61$1.53

$1.38$1.19

$1.71

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Page 4: 2017 SCORECARD - Brown-Forman

* $100 invested on 4/30/12 in stock or index, including reinvestment of dividends

TOTAL SHAREHOLDER RETURN VS. INDEX* TOTAL REVENUE BY REGION

Company Highlights Scorecard

FY17FY16FY15FY14FY13FY12

Brown-Forman

$100$100

$132

$117

$171

$141

$174

$159

$188

$161

$187

$190

S&P 500

United States 48%

United Kingdom 7%

Australia 5%

Mexico 5%

Germany 4%

Poland 2%

France 4%

Japan 1%

Russia 1%

Canada 1%

FY17

Read more about our company highlights here >

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Page 5: 2017 SCORECARD - Brown-Forman

ALCOHOL RESPONSIBILITYMEDIA IMPRESSIONS LDA AND ABOVE, U.S.* GLOBAL ADVERTISING COMPLAINTS

COMPLAINTS UPHELD

2016 - 2017

*The agency tracking media impressions changed in July 2014. Impression data from July 2014 forward will be reported in annual increments, rather than biannual.**Belgium: Complaints filed through City of Antwerp. The complaint was regarding the placement of advertising material on a public lamp post. Although outdoor advertising is permitted in Belgium,

it is not permitted to place them on structures owned by the local authority. Our local media agency took responsibility for the error.

JAN–JUN 2016JUL–DEC 2015JUL 2014–JUN 2015

89 8795 94

MagazineTV Radio Newspaper Digital

90 88 8592 95 9288 91 94 95

89

B-F STANDARD 80%

Complaints Result

Belgium**

2016 1 Corrected

Read more about our commitment to alcohol responsibility here >

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Page 6: 2017 SCORECARD - Brown-Forman

ENVIRONMENTAL SUSTAINABILITYGREENHOUSE GAS EMISSIONS*

Metric tons CO2e by Scope 1, Scope 2, and Scope 3

ENERGY**

Total usage, MMBTUs

* More details of Brown-Forman’s verified greenhouse gas inventories, from 2005- 2015, are available at The Climate Registry’s public reports website at https://www.cris4.org and are verified Climate Registered by the organization. At the time of publishing this report, the calendar year 2016 greenhouse gas (GHG) emissions are undergoing verification. Direct emissions include use of fuel for stationary and mobile uses, including coal, natural gas, and gasoline. Indirect emissions include use of electricity. Optional emissions are emissions associated with business travel. Percent change shown is from CY15 to CY16. While facilities continued to implement emissions reduction projects, GHG emissions increased due to significant production increases as new distillery and warehouse operations started. Additionally, one facility completed a fuel switch that resulted in cost and other environmental benefits, but increased GHG emissions. We are committed to continue pursuing options to reduce our footprint and meet our absolute reduction target.

** Energy usage is determined from either direct metering or utility invoices. Numbers may differ slightly from previous reports due to refining of data management systems. Other includes propane, gasoline and kerosene. While facilities continued to implement energy efficiency projects and process improvements, significant production increases across facilities resulted in increased energy use. Percent change is from CY2015 to CY2016.

CY16CY15CY14CY13

Optional (Scope 3)Direct (Scope 1) Indirect (Scope 2)

179,881172,797 172,595 175,803

2.3%

CY16CY15CY14CY13

Other

Specialty Fuel

Biogas

Diesel

Electricity

Fuel Oil

Natural Gas

Wood

Coal

1.6%

2,755,7262,728,2332,595,911

2,800,420

Read more about our environmental sustainability here >

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Page 7: 2017 SCORECARD - Brown-Forman

* Water use includes production use in the US, Canada, and International owned production operations. Data excludes field offices and vineyard irrigation use. In CY2016 our absolute water use increased due to an increase in overall production, despite water efficiency projects and the use of recycled water. Percent change is from CY2015 to CY2016.

Environmental Sustainability Scorecard

CY16CY15CY14CY13

840884 815 811 3.5%

TOTAL WATER USE*

Gallons used, millions

Read more about our water use here >

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Page 8: 2017 SCORECARD - Brown-Forman

EMPLOYEE RELATIONS AND DIVERSITYGLOBAL VOLUNTARY TURNOVER* SUPPLIER DIVERSITY, U.S.**

$ (millions) spent with minority- and women-owned businesses (% of total procurement spend)

* Numbers may not add to 100% due to rounding. ** Our goal is to source 16% of all our procurement from minority- and women-owned businesses by 2020.

FY17FY16FY15

7.4%8.2% 6.1%

FY17FY16FY15

69.2(10.5%)61.8

(9.0%)

70.6(10.3%)

Read more about employee engagement here > Read more about supplier diversity here >

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Page 9: 2017 SCORECARD - Brown-Forman

* Indicates any work-related accident involving global production and Louisville Corporate Personnel. Data indicates any work-related fatalities globally. ** Numbers may not add to 100% due to rounding.

SAFETY*

Total incident rate per 100 full-time employees

GLOBAL WORKFORCE**

CY16CY15CY14CY13CY12

4.75

0 0 0 0 0

3.73.14

5.37 5.31

Total Recordable Injury Rate Fatalities Female 36% Male 63%

Gender

Over 50 23%Under 30 16% 30-50 61%

Age

International 28%U.S. 57% Mexico 16%

Location

Temp/Seasonal 4%Full-time 95% Part-time 2%

Job Type

Read more about health and safety here > Read more about diversity and inclusion here >

Employee Relations and Diversity Scorecard

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Page 10: 2017 SCORECARD - Brown-Forman

* Diversity data is as of April 30, 2017. Numbers may not add to 100% due to rounding.

MALE FEMALE WHITE BLACK HISPANIC ASIAN OTHER

Board 77 23 92.3 7.7 — — —

Executive Officers 62 38 87.5 — 12.5 — —

Senior Managers/Directors 73 27 90 6.2 2.3 1.5 —

Managers/Directors 61 39 84.2 6.4 6.9 2.2 0.2

Lead/Sr. Professionals 48 52 82 4.9 6.1 4.9 2.0

Professionals 46 54 84.8 7.9 4.3 1.4 1.4

Entry-Level/Sr. Administrative 23 77 81.2 11.7 5.2 1.3 0.6

Administrative (Non-exempt) 7 93 80.0 10.0 6.7 — 3.3

Non-exempt 12 88 75.0 18.8 6.3 — —

Hourly Production 83 17 81.7 11.7 6.0 0.1 0.6

Temporary/Seasonal 33 67 79.5 10.2 7.8 — 2.4

GENDER AND RACIAL DIVERSITY BY LEVEL, U.S.*

Percentage of total employees

Employee Relations and Diversity Scorecard

Read more about diversity and inclusion here >

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Page 11: 2017 SCORECARD - Brown-Forman

* Numbers may not add to 100% due to rounding. Unless otherwise noted, all data are for our fiscal year 2017, which ended April 30, 2017.

MALE FEMALE WHITE BLACK HISPANIC ASIAN OTHER

Corporate, Sales & Marketing 50 50 82.7 7.7 5.1 2.9 1.6

Production/Hourly 76 24 82.3 10.5 6.1 0.3 0.9

Temporary/Seasonal 32 66 78.1 10.1 7.7 — 4.1

Total Company 64 36 82.2 9.5 5.8 1.2 1.3

DIVERSITY BY JOB CATEGORY*

Percentage of total employees

Read more about diversity and inclusion here >

Employee Relations and Diversity Scorecard

11

Page 12: 2017 SCORECARD - Brown-Forman

COMMUNITY INVOLVEMENTTOTAL CASH CONTRIBUTIONS*

Millions ($)

CHARITABLE CONTRIBUTIONS BY TYPE**

*F17 total charitable contributions includes company led employee campaigns.**Numbers may not add to 100% due to rounding.

Read more about community involvement here >

10.4 10.6 10.8

FY17FY16FY15

FY17

Healthy and Sustainable Living 27%

Basic Living Standards 36%

Intellectual and Cultural Living 37%

10.810.810.6

10.4 10.6 10.8

FY17FY16FY15

FY17

Healthy and Sustainable Living 27%

Basic Living Standards 36%

Intellectual and Cultural Living 37%

10.810.810.6

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Page 13: 2017 SCORECARD - Brown-Forman

This report contains statements, estimates, or projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “anticipate,” “aspire,” “believe,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” and similar words identify forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. These risks and other factors include, but are not limited to:

• Unfavorable global or regional economic conditions, and related low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations.

• Risks associated with being a U.S.-based company with global operations, including commercial, political, and financial risks; local labor policies and conditions; protectionist trade policies or economic or trade sanctions; compliance with local trade practices and other regulations, including anti-corruption laws; terrorism; and health pandemics.

• Fluctuations in foreign currency exchange rates, particularly a stronger U.S. dollar.

• Changes in laws, regulations, or policies – especially those that affect the production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products.

• Tax rate changes (including excise, sales, VAT, tariffs, duties, corporate, individual income, dividends, capital gains) or changes in related reserves, changes in tax rules (for example, LIFO, foreign income deferral, U.S. manufacturing and other deductions) or accounting standards, and the unpredictability and suddenness with which they can occur.

• Dependence upon the continued growth of the Jack Daniel’s family of brands.

• Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of smaller distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; bar, restaurant, travel, or other on-premise declines; shifts in demographic trends; unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation.

• Decline in the social acceptability of beverage alcohol products in significant markets.

• Production facility, aging warehouse, or supply chain disruption.

• Imprecision in supply/demand forecasting.

• Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, labor, or finished goods.

• Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher implementation-related or fixed costs.

• Inventory fluctuations in our products by distributors, wholesalers, or retailers.

• Competitors’ consolidation or other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks.

• Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, or termination difficulties or costs, or impairment in recorded value.

• Inadequate protection of our intellectual property rights.

• Product recalls or other product liability claims; product counterfeiting, tampering, contamination, or product quality issues.

• Significant legal disputes and proceedings; government investigations (particularly of industry or company business, trade or marketing practices).

• Failure or breach of key information technology systems.

• Negative publicity related to our company, brands, marketing, personnel, operations, business performance, or prospects.

• Failure to attract or retain key executive or employee talent.

• Our status as a family “controlled company” under New York Stock Exchange rules.

For further information on these and other risks, please refer to the “Risk Factors” section of our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC.