Performance

Financial Highlights

Our financial results were strongly influenced by a negotiated improvement in the commission rate earned on the Pernod Ricard portfolio; decreased marketing expenses as we adjusted our strategy for selling Canadian whisky into export markets; and some softness among Corby-owned brands competing in weak economy segments of the domestic market.

REVENUE

(in millions of Canadian dollars)

Revenue growth driven primarily by increased commission revenue on sales of Pernod Ricard brands.

Net Earnings

(in millions of Canadian dollars)

Net earnings benefited from the increased commission revenue on sales of Pernod Ricard brands and reduced advertising and promotional investment in the US market.

Cash flow from operating activities

(in millions of Canadian dollars)

Operating cash inflows were consistent with the overall increase in net earnings.

2016 Summary

As at and for the years ended June 30, 2016 and 2015
(in thousands of Canadian dollars, except per share amounts)

2016 2015
As at and for the years ended June 30, 2016 and 2015
(in thousands of Canadian dollars, except per share amounts)
2016 2015
Results
Revenue $ 140,002 $ 132,066
Earnings from operations 34,623 27,239
Earnings before income taxes 34,764 27,738
Net earnings 25,435 20,415
Cash flow from operating activities 33,264 27,072
Financial Position
Working capital $136,647 $145,664
Total assets 228,503 233,712
Shareholders’ equity 170,785 188,124
Per Common Share
Earnings from operations $1.22 $0.96
Net earnings 0.89 0.72
Dividends declared and paid 1.38 1.37
Shareholders’ equity 6.00 6.61
Financial Ratios
Working capital $5.1 $6.7
Return on average shareholders’ equity 14.2 10.3
Pre-tax return on average capital employed 19.5 14.1
Revenue from Corby-Owned Brands*

(in millions of Canadian dollars)

* Revenue from Corby-owned brands represents Case Goods sales of Corby products in Canada and international markets.

Revenue was essentially unchanged, as performance improved in the second half of the year following a difficult first six months for brands competing in weak economy segments.

Margin Quality*

* Gross margin from Case Goods and other services (excludes commissions).

Margin quality was consistent with last year despite one-off costs related to the UK distribution transition. Premiumization and cost management were key performance levers.

Earnings per Share

(in millions of Canadian dollars)

Growth was reflective of increased commission revenue and reduced advertising and promotional costs in the US market.

Cash Conversion*

* Cash from operating activities divided by net earnings.

Strong cash generation and sound management of working capital.

3.9%

Maintained a high regular dividend yield on Corby’s Voting Class A Common Shares
(as at June 30, 2016)

$0.62

Paid a special dividend of 62 cents per share on January 8, 2016, resulting in a cash distribution to shareholders of approximately $17.7 million

Top Brands

Bottle of J.P. Wiser's Deluxe Bottle of J.P. Wiser's Double Still Rye Bottle of J.P. Wiser's Hopped

J.P. WISER’S (volume shipped in thousands of 9L cases) 810

While Canadian shipments were up by 1% over last year, shipment volume as a whole, including exports, was relatively unchanged

sHIPMENT vOLUME CHANGE (compared to 2015) +1%

Bottle of Polar Ice 90 North Bottle of Polar Ice

POLAR ICE (volume shipped in thousands of 9L cases) 375

2% decrease in a highly competitive category, although Polar Ice 90° North continued to make gains

sHIPMENT vOLUME CHANGE (compared to 2015) –2%

Bottle of Gooderham & Worts Bottle of Pike Creek Bottle of Lot No. 40

CANADIAN CRAFT WHISKIES (volume shipped in thousands of 9L cases) 19

130% increase in shipments of our Canadian craft whiskies, bolstered by critical industry acclaim

sHIPMENT vOLUME CHANGE (compared to 2015) +130%

Bottle of Lamb's Palm Breeze Bottle of Lamb's Spiced Bottle of Lamb's Classic Bottle of Lamb's Navy

LAMB’S (volume shipped in thousands of 9L cases) 450

10% decrease, largely due to shipment patterns of Lamb’s in the UK, which were disrupted by the transition to a new distributor

sHIPMENT vOLUME CHANGE (compared to 2015) –10%

Bottle of Absolut Bottle of Absolut Mix Bottle of Absolut Raspberri

ABSOLUT (volume shipped in thousands of 9L cases) 573

Continued momentum for Absolut, with a 4% increase over last year

sHIPMENT vOLUME CHANGE (compared to 2015) +4%

Bottle of Jameson Bottle of Jameson Caskmates

JAMESON (volume shipped in thousands of 9L cases) 163

19% growth, as Jameson continued to dominate the Irish whiskey category in Canada

sHIPMENT vOLUME CHANGE (compared to 2015) +19%

Bottle of The Glenlivet Founder's Reserve Bottle of The Glenlivet 12 Bottle of The Glenlivet 18

THE GLENLIVET (volume shipped in thousands of 9L cases) 61

5% decline due to availability challenges with the highly aged products – good uptake of Founder’s Reserve helped close the gap

sHIPMENT vOLUME CHANGE (compared to 2015) –5%

Bottle of Jacob's Creek Shiraz Cabernet Bottle of Jacob's Creek Moscato Bottle of Stoneleigh Bottle of Campo Viejo

WINES (volume shipped in thousands of 9L cases) 909

Growth led by Jacob’s Creek wines 23%

sHIPMENT vOLUME CHANGE (compared to 2015) +8%