BROWN-FORMAN REPORTS SECOND QUARTER RESULTS;

REAFFIRMS FULL YEAR EARNINGS PER SHARE OUTLOOK

Louisville, KY, December 7, 2016 - Brown-Forman Corporation (NYSE:BFA, BFB) reported financial results for its second quarter and the first half of fiscal 2017 ended October 31, 2016. For the second quarter, the company’s reported net sales ¹ declined 3% to $ 830 million ( +3% on an underlying basis ² ). Reported operating income declined 4% in the quarter to $ 291 million ( +8% on an underlying basis). Diluted earnings per share of $0.50 increased 3% compared to the prior-year period.

For the first six months of the fiscal year, reported net sales decreased 4% ( +2% on an underlying basis). Reported net sales growth was adversely impacted by three percentage points due to the divestiture of Southern Comfort and Tuaca in the prior fiscal year, and two percentage points due to foreign exchange. Reported operating income declined 5% ( +7% on an underlying basis), and diluted earnings per share increased 1% to $0.87 .

Paul Varga, the company's Chief Executive Officer said, "As anticipated, our reported earnings were impacted noticeably in the first half by the absence of the brands we sold in late fiscal year 2016, as well as by adverse foreign exchange.  Underlying growth in net sales and operating income was solid considering the strength of last year's first half.”

Varga added, "We anticipate additional improvement in underlying net sales growth in the second half of fiscal 2017 against more favorable comparisons, as well as continued investments to position the company for sustained long-term growth.  We reaffirm our fiscal year 2017 EPS range of $1.71-$1.81."

Year-to-date Fiscal 2017 Highlights

Year-to-date Fiscal 2017 Performance By Market

Year-to-date underlying net sales grew 5% ( -1% reported) in the United States as the second quarter’s underlying net sales accelerated in the second quarter to over 6% (0% reported). Sales growth was driven by continued gains for the Jack Daniel’s family of brands, including Tennessee Whiskey, Tennessee Honey and Gentleman Jack. The company’s bourbon brands delivered continued growth including double-digit gains from Woodford Reserve. Herradura and el Jimador tequila grew underlying net sales double-digits in the United States, and Sonoma-Cutrer grew high single-digits.

The company’s developed markets outside of the United States grew year-to-date underlying net sales by 2% ( -5% reported). Second quarter growth rates were negatively impacted by the delayed timing of holiday season promotions in the United Kingdom and key customer buying patterns in Germany. Underlying net sales in Western Europe grew mid single-digits and Australia’s results were up slightly given the combined effects of a weak economy and high excise tax environment.

The company’s emerging markets experienced a 1% decline in year-to-date underlying net sales (-13% reported). The emerging markets rebounded from the prior quarter’s declines and grew underlying net sales by 3% in the second quarter (-9% reported). Mexico and Poland delivered robust double-digit underlying net sales growth while results in Turkey, Russia, Brazil and China declined. The company believes that weaker economic conditions and devalued currencies are contributing to reduced purchasing power in the emerging markets.

Global Travel Retail’s global business has stabilized at lower levels, with underlying net sales growth of 4% (- 3% reported). Relative to fiscal 2016, the business has experienced more normal trading patterns and has benefited from distribution gains.

Year-to-date Fiscal 2017 Performance By Brand

The company’s underlying net sales growth was led by the Jack Daniel’s family, up 2% ( -1% reported). Jack Daniel’s Tennessee Honey’s underlying net sales grew 2% ( 0% reported), with modest growth in the United States offset by flat results outside of the United States. Jack Daniel’s Tennessee Fire’s underlying net sales grew double-digits, as the brand’s launch outside of the United States and solid growth in the on-premise in the United States more than offset the off-premise declines associated with last year’s national launch in the United States. Gentleman Jack grew underlying net sales by mid single digits, and Jack Daniel’s RTD/RTP business delivered solid results, with underlying net sales growth of 5% ( 0% reported).

Brown-Forman’s portfolio of super and ultra-premium whiskey brands, including Woodford Reserve and Woodford Reserve Double Oaked, Jack Daniel’s Single Barrel, and Gentleman Jack, continue to deliver strong rates of growth. Additionally, the company has increased pricing on many of these brands

to reinforce their premium positioning in the market. Woodford Reserve grew underlying net sales 19% (+ 12% reported).

Finlandia vodka experienced a 4% decline in underlying net sales (- 17% reported). Trends in Poland improved while results in Russia remained under significant pressure given the challenging economic backdrop and ruble depreciation, particularly for premium vodka.

El Jimador grew underlying net sales by 9% (+ 3% reported) as the brand is growing quickly and gaining share as a high quality, 100% agave tequila in both the on-trade and off-trade in the United States. Net sales for El Jimador continue to grow nicely as we reposition the brand through multi-year price increases. New Mix’s underlying net sales increased 18% (+ 3% reported). Herradura grew underlying net sales by 16% (+ 12% reported), driven by double-digit gains in both the United States and Mexico.

Other P&L Items

Company-wide price/mix improvements contributed approximately one percentage point of underlying sales growth. Year-to-date underlying A&P spend increased 1% (- 10% reported) as the company continues to invest in its brand portfolio, including Jack Daniel’s 150th anniversary campaign. Underlying SG&A decreased 3% (- 4% reported), helped by the company’s focus on leveraging prior investments in SG&A, as well as the absence of one-time expenses from the prior year. Disciplined SG&A spend helped drive 7% underlying operating income growth in the first half (- 5% reported).

Financial Stewardship

On November 17, 2016, Brown-Forman declared a regular quarterly cash dividend of $0.1825 per share on the Class A and Class B common stock, a 7.4% increase over the prior dividend on a split-adjusted basis, resulting in an annualized cash dividend of $0.73 per share. The cash dividend is payable on January 3, 2017 to stockholders of record on December 2, 2016. Brown-Forman has paid regular quarterly cash dividends for 71 consecutive years and has increased the dividend for 33 consecutive years.

During the first six months of fiscal 2017, the company repurchased a total of 9.3 million Class A and Class B shares for $442 million, at an average price of $48 per share. As of October 31, 2016, the remaining share repurchase authorization under our existing program totaled $448 million.

As of October 31, 2016, total debt was $2,254 million, up from $1,501 million as of April 30, 2016. The increase is primarily related to the issuance of two bonds in June of 2016, including €300M 1.2% 10-year notes and £300M 2.6% 12-year notes.

Fiscal Year 2017 Outlook

The company believes that fiscal 2017 will be another year of continued growth in underlying net sales and operating income, despite the significant uncertainty that currently exists around the global economic and geopolitical environment, not to mention foreign exchange volatility. Assuming no further deterioration in the global economy, the company anticipates:

1. Underlying net sales growth of 4% to 5%

2. Underlying operating income growth of 6% to 8%

Conference Call Details

Brown-Forman will host a conference call to discuss the results at 10:00 a.m. (EST) today.  All interested parties in the United States are invited to join the conference call by dialing 888-624-9285 and asking for the Brown-Forman call.  International callers should dial +1-706-679-3410.  The company suggests that participants dial in ten minutes in advance of the 10:00 a.m. (EST) start of the conference call. A live audio broadcast of the conference call, and the accompanying presentation slides, will also be available via Brown-Forman’s Internet website, http://www.brown-forman.com/ , through a link to “Investors/Events & Presentations.” For those unable to participate in the live call, information regarding the digital audio recording of the conference call and the presentation slides will also be available on the website.

For more than 145 years, Brown-Forman Corporation has enriched the experience of life by responsibly building fine quality beverage alcohol brands, including Jack Daniel’s Tennessee Whiskey, Jack Daniel’s & Cola, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Gentleman Jack, Jack Daniel’s Single Barrel, Finlandia, Korbel, el Jimador, Woodford Reserve, Old Forester, Canadian Mist, Herradura, New Mix, Sonoma-Cutrer, Early Times, Chambord, BenRiach and GlenDronach. Brown-Forman’s brands are supported by over 4,600 employees and sold in approximately 160 countries worldwide. For more information about the company, please visit http://www.brown-forman.com/ .

Footnotes:

¹ Percentage growth rates are compared to prior-year periods, unless otherwise noted. Beginning in the first quarter of 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” in our financial statements 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.

² We present changes in certain income statement line-items that are adjusted to an “underlying” basis, which we believe assists in understanding both our performance from period to period on a consistent basis and the trends of our business. Non-GAAP “underlying” measures include changes in (a) underlying net sales, (b) underlying gross profit, (c) underlying advertising expenses, (d) underlying selling, general and administrative expenses and (e) underlying operating income. A reconciliation of these non-GAAP measures for the three- and six-month periods ended October 31, 2016, to the most closely comparable GAAP measure, and the reasons why management believes these adjustments to be useful, are included in Schedule A and B in this press release.

³ Super/Ultra-premium North American whiskey brands include the Woodford Reserve, Jack Daniel’s Single Barrel, Gentleman Jack, Sinatra Select, No. 27 Gold, and Collingwood.

This press release contains statements, estimates, and 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 uncertainties include, but are not limited to:

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.

Use of Non-GAAP Financial Information: This press release includes measures not derived in accordance with U.S. generally accepted accounting principles (“GAAP”), including underlying net sales, underlying gross profit, underlying advertising expense, underlying SG&A, and underlying operating income. These measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP, and also may be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the most closely comparable GAAP measures, and reasons for the company’s use of these measures, are presented on Schedules A and B attached hereto.

Notes:

We present changes in certain income statement line-items that are adjusted to an “underlying” basis, which are non-GAAP measures that we believe assists in understanding both our performance from period to period on a consistent basis, and the trends of our business.

To calculate each of the measures reflected above, we adjust, as applicable, for (a) foreign currency exchange and (b) estimated net changes in trade inventories, and (c) the impact of acquisition and divestiture activity. These adjustments are defined below.

Management uses “underlying” measures of performance to assist it in comparing and measuring our performance from period to period on a consistent basis, and in comparing our performance to that of our competitors. We also use underlying measures as metrics of management incentive compensation calculations. Management also uses underlying measures in its planning and forecasting and in communications with the board of directors, stockholders, analysts and investors concerning our financial performance. We have provided reconciliations of the non-GAAP measures adjusted to an “underlying” basis to their most closely comparable GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure.

Note: Totals may differ due to rounding.

¹ Depletions are shipments direct to retail or from distributors to wholesale and retail customers, and are commonly regarded in the industry as an approximate measure of consumer demand.

² Net sales is a shipment based metric; shipments and depletions can be different due to timing. Please see the Notes to Schedule A in this press release for additional information on the impact of foreign currencies and estimated net change in distributor inventories and the reasons why we believe that the presentation of these non-GAAP financial measures provides useful information to investors.

³ Equivalent conversion depletions represent the conversion of ready-to-drink (RTD) and ready-to-pour (RTP) brands to a similar drinks equivalent as the parent brand for various trademark families. RTD volumes are divided by 10, while RTP volumes are divided by 5.

⁴ Includes Gentleman Jack, Jack Daniel's Single Barrel, Sinatra Select, No. 27 Gold, Jack Daniel's Tennessee Fire, Jack Daniel's Master's Collection, Jack Daniel's Rye, Jack Daniel's 1907, and Jack Daniel's Single Barrel Barrel Proof whiskey.

⁵ Refers to RTD and RTP line extensions of Jack Daniel’s.

⁶ Includes el Jimador, el Jimador Flavors, el Jimador RTDs.

⁷ New Mix RTD brand produced with el Jimador tequila.

⁸ Includes Herradura, Herradura Ultra, Herradura Coleccion De La Casa, and Herradura Seleccion Suprema.

⁹ Reported net sales for Brown-Forman Corporation were negatively impacted by 3% due to the acquisition of the BenRiach Distillery and the divestiture of Southern Comfort and Tuaca. These effects should be considered when calculating net sales. Please see the Notes to Schedule A in this press release for additional information on the impact of acquisitions and divestitures and the reasons why we believe that the presentation of these non-GAAP financial measures provides useful information to investors.