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Brown-Forman Reports Full Year 2012 Results – Anticipates Another Strong Year Of High Single-Digit Underlying Operating Income Growth In Fiscal 2013

Hopland-based wine business sale – Refers to the Company’s April 2011 sale of its Hopland, California-based wine business to Viña Concha y Toro S.A. Included in this sale were the Fetzer winery, bottling facility, and vineyards, as well as the Fetzer brand and other Hopland, California-based wines, including Bonterra, Little Black Dress, Jekel, Five Rivers, Bel Arbor, Coldwater Creek, and Sanctuary. Also included in the sale was a facility in Paso Robles, California. We believe that excluding the gain on the sale and operating results from fiscal 2012 versus the same period in fiscal 2011 provides helpful information in forecasting and planning the growth expectations of the Company.

Foreign currencies – Refers to net gains and losses incurred by the Company relating to sales and purchases in currencies other than the U.S. Dollar. Brown-Forman uses the measure to understand the growth of the business on a constant dollar basis as fluctuations in exchange rates can distort the underlying growth of the business (both positively and negatively). To neutralize the effect of foreign exchange fluctuations, the Company has translated current year results at prior year rates. While Brown-Forman recognizes that foreign exchange volatility is a reality for a global company, it routinely reviews its performance on a constant dollar basis. The Company believes this allows both management and investors to understand better Brown-Forman’s growth trends.

Dispute settlement – Refers to the favorable resolution of a dispute in an international market relating to the importation of our products. Management believes that excluding this benefit provides helpful information in forecasting and planning the growth expectations of the Company.

The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.

             

Schedule B

 
Brown-Forman Corporation
Supplemental Information (Unaudited)
Twelve Months Ended April 30, 2012
 
% Change vs. FY2011
Depletions (000’s)       Depletions       Net Sales
      Equivalent       Equivalent             Constant

Brand

   

9-Liter

     

Conversion 1

     

9-Liter

     

Conversion

     

Reported

     

Currency

Jack Daniel’s Family     18,015      

12,435

      12%       12%       13%       12%

Jack Daniel’s Family of Whiskey Brands 2

    11,745       11,745       12%       12%       12%       12%

Jack Daniel’s RTD/RTP 3

    6,265       625       13%       13%       17%       11%
el Jimador Family     6,610       1,765       8%       4%       0%       3%
el Jimador     1,225       1,225       1%       1%       (3%)       (2%)

New Mix RTD 4

    5,375       535       10%       10%       5%       9%
Finlandia Family     3,280       3,145       11%       7%       9%       10%
Finlandia     3,130       3,130       7%       7%       8%       9%
Finlandia RTD     150       15       428%       428%       407%       427%
Southern Comfort Family     2,475       2,100       (2%)       (3%)       (7%)       (7%)

Southern Comfort 5

    2,055       2,055       (3%)       (3%)       (7%)       (7%)
Southern Comfort RTD/RTP     420       40       1%       1%       0%       (4%)
Canadian Mist     1,650       1,650       (4%)       (4%)       (6%)       (6%)
Korbel Champagne     1,285       1,285       (3%)       (3%)       (3%)       (3%)

Super-Premium Other 6

    1,115       1,115       9%       9%       7%       8%

Rest of Brand Portfolio(excl. Discontinued Brands)

    2,005       2,005       15%       15%       10%       11%
Total Active Brands     36,435       25,430       9%       8%       8%       8%
 

Note: Totals may differ due to rounding

 

1 Equivalent conversion depletions represent the conversion of ready-to-drink (RTD) brands to a similar drinks equivalent as the parent brand for various trademark families.  RTD volume is divided by 10.

2 Jack Daniel’s brand family excluding RTD/RTP line extensions

3 Refers to all RTD and ready-to-pour (RTP) line extensions of Jack Daniel’s

4 RTD brand produced with el Jimador tequila

5 Includes Southern Comfort, Southern Comfort Reserve, and Southern Comfort flavors

6 Includes Chambord liqueur and flavored vodka, Herradura, Sonoma-Cutrer, Tuaca, and Woodford Reserve





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