Constellation Brands, Inc. (NYSE:STZ) Q1 2024 Earnings Conference Call June 30, 2023 10:30 AM ET Company Participants Joe Suarez - VP, IR Bill Newlands - CEO Garth Hankinson - CFO Conference Call Participants Dara Mohsenian - Morgan Stanley Lauren Lieberman - Barclays Peter Grom - UBS Bryan Spillane - Bank of America Bonnie Herzog - Goldman Sachs Nadine Sarwat - Bernstein Andrea Teixeira - JPMorgan Chris Carey - Wells Fargo Securities Filippo Falorni - Citi Andrew Strelzik - BMO Capital Markets Operator Hel ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-08495 CONSTELLATION BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 16-0716709 (St ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission file number 001-08495 CONSTELLATION BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 16-0716709 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO ...

Financial Data and Key Metrics - Net sales increased by 7% to $9.5 billion, and comparable operating income rose by 3% to $3 billion in fiscal 2023 [8] - Beer business net sales grew by 11% to $713 million, exceeding the upper end of the guidance range [38] - Wine and Spirits business net sales declined by 2% on an organic basis, primarily due to lower demand for mainstream brands [49] - Free cash flow for fiscal 2023 was $1.7 billion, above the upper end of the guidance range [52] Business Segment Performance - Beer business achieved 13th consecutive year of shipment volume growth, with a 12% increase in dollar sales [10] - Modelo Especial increased depletions by 9%, Corona Extra by nearly 4%, and Pacifico by over 30% [11] - Wine and Spirits business saw a 2.1% volume decline, outperforming the broader market's 2.6% decline [16] - Aspira portfolio, including Fine Wine and Craft Spirits, delivered double-digit shipment growth [17] Market Performance - Beer business extended its lead as the number one high-end beer supplier in the U.S. [10] - Direct-to-consumer and international markets for Wine and Spirits grew net sales by 29% and 4%, respectively [25] - On-premise depletions for beer grew by 15% year-over-year, nearing pre-pandemic levels [46] Strategic Direction and Industry Competition - The company focuses on building powerful brands, consumer-led innovations, and disciplined capital deployment [9] - Investments in beer business capacity expansion and hospitality in Wine and Spirits are prioritized [29] - The company divested mainstream brands and acquired higher-end wine and ready-to-drink cocktail brands to reshape the Wine and Spirits portfolio [23] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the growth drivers for core beer brands and expects strong volume growth momentum in fiscal 2024 [55] - The company plans to continue investing in premium wine, fine wine, and craft spirits brands to support growth in direct-to-consumer and international markets [26] - Inflationary pressures and macroeconomic conditions are being closely monitored, with pricing actions planned within the 1% to 2% range [58] Other Important Information - The company returned $2.3 billion to shareholders through share repurchases and dividends in fiscal 2023 [28] - ESG goals include reducing Scope 1 and 2 greenhouse gas emissions by 15% by fiscal 2025 and restoring over 1 billion gallons of water [30] - The company has already surpassed its fiscal 2025 water restoration goal [31] Q&A Session Summary Question: Confidence in 7% to 9% sales growth outlook and pricing dynamics [76] - Strong start in markets like Texas and Florida, with double-digit increases, supports the sales growth outlook [77] - Pricing will remain within the 1% to 2% range, with flexibility to adjust based on macroeconomic conditions [80] Question: March depletion trends and Oro launch expectations [82] - March depletions were in line with expectations, with strong performance in Texas and Florida [83] - Oro launch showed over 60% incrementality in test markets, with significant media support planned for the summer [84][90] Question: On-premise trends and trade-down impacts [92] - On-premise growth continues to accelerate, with draft panels in California up 9% in Q4 [94] - Minimal trade-down observed, with most impacts at lower price points than the company's brands [87] Question: Productivity measures and hedging programs [95] - Productivity initiatives and hedging programs are in place to offset inflationary pressures, with 10% to 15% of COGS hedged [96][97] Question: Resets and pricing philosophy [99] - The company is performing well in reset situations, with strong shelf presence for its brands [102] - No plans to roll back pricing, with a focus on maintaining consumer engagement [104] Question: Free cash flow guidance and capital allocation [106] - Free cash flow guidance of $1.2 billion to $1.3 billion reflects higher interest expenses and CapEx investments [107] - The company has nearly $1 billion left under its share repurchase authorization and will remain opportunistic [109] Question: Pricing cadence and margin targets [112] - The company plans to maintain its 1% to 2% pricing algorithm, supported by strong brand performance [113] - Beer margins are expected to be flat, with inflationary pressures impacting gross margins [119] Question: Wine and Spirits margin outlook [117] - Wine and Spirits margins are expected to increase by at least 40 basis points, driven by premiumization and cost management [118] Question: Beer margin expectations and medium-term targets [121] - Beer operating margins are expected to be approximately 38% in fiscal 2024, with no guidance provided for future years [123] Question: Impact of Woodbridge and SVEDKA on Wine and Spirits margins [126] - Woodbridge and SVEDKA have a drag on margins due to their lower price points, but revitalization plans are in place to stabilize these brands [127]

Constellation Brands, Inc. (NYSE:STZ) 2023 CAGNY Conference Call February 23, 2023 3:00 PM ET Company Participants Bill Newlands - CEO Conference Call Participants Dara Mohsenian - Morgan Stanley Jaime Katz - Morningstar Inc. Unidentified Analyst It's a great pleasure to welcome Constellation Brands CEO, Bill Newlands, back to CAGNY this year. Constellation has been a top tier -- has that top-tier track record of growth over the last 10 years and also driving shareholder returns, driven largely by its beer ...

Constellation Brands, Inc. (NYSE:STZ) Q3 2022 Earnings Conference Call January 5, 2023 10:30 AM ET Company Participants Joseph Suarez - VP, IR Bill Newlands - CEO Garth Hankinson - CFO Conference Call Participants Lauren Lieberman - Barclays Nik Modi - RBC Capital Markets Nadine Sarwat - Bernstein Kaumil Gajrawala - Credit Suisse Bonnie Herzog - Goldman Sachs Dara Mohsenian - Morgan Stanley Kevin Grundy - Jefferies Andrew Strelzik - BMO Chris Carey - Wells Fargo Bryan Spillane - Bank of America Vivien Azer ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-08495 (Address of principal executive offices) (Zip code) (585) 678-7100 (Registrant's telephone number, incl ...

Constellation Brands WORTH REACHING FOR 2022 MORGAN STANLEY GLOBAL CONSUMER & RETAIL CONFERENCE DECEMBER 6, 2022 FORWARD-LOOKING STATEMENTS | 2 This presentation contains forward-looking statements that are based on certain assumptions, estimates, expectations, plans, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future developments, as well as other factors management believes are appropriate in the circumstances ...

Constellation Brands, Inc. (NYSE:STZ) 2022 Morgan Stanley Global Consumer and Retail Conference December 6, 2022 10:15 AM ET Company Participants Garth Hankinson - Chief Financial Officer Conference Call Participants Dara Mohsenian - Morgan Stanley Dara Mohsenian All right. Good morning, everyone. I’m Dara Mohsenian, Morgan Stanley’s Household Products and Beverage analyst. Before we begin, just a quick disclosure. Please see the Morgan Stanley research website at www.morganstanley.com for important researc ...

Constellation Brands, Inc. (NYSE:STZ) Q2 2023 Earnings Conference Call October 6, 2022 10:30 AM ET Company Participants Joseph Suarez - Vice President, Investor Relations Bill Newlands - Chief Executive Officer Garth Hankinson - Chief Financial Officer Conference Call Participants Dara Mohsenian - Morgan Stanley Kevin Grundy - Jefferies Lauren Lieberman - Barclays Bonnie Herzog - Goldman Sachs Andrea Teixeira - JPMorgan Rob Ottenstein - Evercore Bryan Spillane - Bank of America Kaumil Gajrawala - Credit Sui ...