McCormick mpany Incorporated : Q4 2022 McCormick & Company, Inc. Earnings Conference Call

4th QUARTER

2022 Financial Results and Outlook

McCORMICK & COMPANY, INC.

JANUARY 26, 2023

The following slides accompany a January 26, 2023, earnings release conference call. This information should be read in conjunction with the press release issued on that date.

FORWARD-LOOKING INFORMATION

Certain information contained in this release, including statements concerning expected performance, such as those relating to net sales, gross margin, earnings, cost savings, transaction and integration expenses, special charges, acquisitions, brand marketing support, volume and product mix, income tax expense and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe" and "plan" and similar expressions. These statements may relate to: the impact of the COVID-19 pandemic on our business, suppliers, consumers, customers, and employees; disruptions or inefficiencies in the supply chain, including any impact of COVID-19; the expected results of operations of businesses acquired by the Company; the expected impact of the inflationary cost environment, including commodity, packaging materials and transportation costs on our business; the expected impact of pricing actions on the Company's results of operations and gross margins; the impact of price elasticity on our sales volume and mix; the expected impact of factors affecting our supply chain, including transportation capacity, labor shortages, and absenteeism; the expected impact of productivity improvements, including those associated with our Comprehensive Continuous Improvement program, streamlining actions, including our Global Operating Effectiveness Program (GOEP), and global enablement initiative; the impact of the ongoing conflict between Russia and Ukraine, including the potential for broader economic disruption; expected working capital improvements; expectations regarding growth potential in various geographies and markets, including the impact from customer, channel, category, and e-commerce expansion; expected trends in net sales and earnings performance and other financial measures; the expected timing and costs of implementing our business transformation initiative, which includes the implementation of a global enterprise resource planning system; the expected impact of accounting pronouncements; the expectations of pension and postretirement plan contributions and anticipated charges associated with those plans; the holding period and market risks associated with financial instruments; the impact of foreign exchange fluctuations; the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing; the anticipated sufficiency of future cash flows to enable the payments of interest and repayment of short- and long-term debt, working capital needs, planned capital expenditures, as well as quarterly dividends and the ability to obtain additional short- and long-term financing or issue additional debt securities; and expectations regarding purchasing shares of McCormick's common stock under the existing repurchase authorization.

These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: the company's ability to drive revenue growth; the company's ability to increase pricing to offset, or partially offset, inflationary pressures on the cost of our products; damage to the company's reputation or brand name; loss of brand relevance; increased private label use; the company's ability to drive productivity improvements, including those related to our CCI program and streamlining actions, including our GOEP; product quality, labeling, or safety concerns; negative publicity about our products; actions by, and the financial condition of, competitors and customers; the longevity of mutually beneficial relationships with our large customers; the ability to identify, interpret and react to changes in consumer preference and demand; business interruptions due to natural disasters, unexpected events or public health crises, including COVID-19; issues affecting the company's supply chain and procurement of raw materials, including fluctuations in the cost and availability of raw and packaging materials; labor shortage, turnover and labor cost increases; the impact of the ongoing conflict between Russia and Ukraine, including the potential for broader economic disruption; government regulation, and changes in legal and regulatory requirements and enforcement practices; the lack of successful acquisition and integration of new businesses; global economic and financial conditions generally, availability of financing, interest and inflation rates, and the imposition of tariffs, quotas, trade barriers and other similar restrictions; foreign currency fluctuations; the effects of increased level of debt service following the Cholula and FONA acquisitions as well as the effects that such increased debt service may have on the company's ability to borrow or the cost of any such additional borrowing, our credit rating, and our ability to react to certain economic and industry conditions; risks associated with the phase-out of LIBOR; impairments of indefinite-lived intangible assets; assumptions we have made regarding the investment return on retirement plan assets, and the costs associated with pension obligations; the stability of credit and capital markets; risks associated with the company's information technology systems, including the threat of data breaches and cyber-attacks; the company's inability to successfully implement our business transformation initiative; fundamental changes in tax laws; including interpretations and assumptions we have made, and guidance that may be issued, and volatility in our effective tax rate; climate change; Environmental, Social and Governance (ESG) matters; infringement of intellectual property rights, and those of customers; litigation, legal and administrative proceedings; the company's inability to achieve expected and/or needed cost savings or margin improvements; negative employee relations; and other risks described in the company's filings with the Securities and Exchange Commission.

Actual results could differ materially from those projected in the forward-looking statements. The company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events2 or otherwise, except as may be required by law.

Lawrence Kurzius

Chairman and

Chief Executive Officer

3

DYNAMIC GLOBAL ENVIRONMENT CHALLENGED 2022 PERFORMANCE

ENDING A VOLATILE 2022 WITH CONFIDENCE IN OUTLOOK FOR STRONG 2023 AND BEYOND

2022 CHALLENGING

CONDITIONS

• Persistently higher cost inflation
• Broad-basedsupply chain challenges
• COVID-relatedChina disruptions
• Conflict in Ukraine

WELL-POSITIONED ENTERING 2023

DRIVING SUCCESSFUL STRATEGY EXECUTION AND

STRONGER RESULTS

• Positive consumer consumption momentum
• Positive momentum in Flavor Solutions demand
• Stabilized service levels and supply
• Meaningful progress in reshaping cost structure

4

FOURTH QUARTER 2022 SALES GROWTH

SALES GROWTH WITHIN GUIDANCE

BUT BELOW EXPECTATIONS

2%1 Actual sales growth reflects:

• Growth from pricing actions of 9% partially offset by 4% underlying volume decline
• Decline of 2% from Kitchen Basics divestiture and exit of business in India and Russia
• Decline of 1% related to China disruption

Expected sales growth tempered by:

• COVID-relatedChina disruptions
• 4Q restocking comparisons in Americas Consumer

POSITIONED TO ACCELERATE SALES GROWTH FOLLOWING STRONG 4Q UNDERLYING GROWTH

• Strengthening consumer consumption trends
• Outstanding Flavor Solutions growth and momentum across all regions
• Increasing demand for flavor reflected in recent proprietary consumer insights research
• Positioning for long-term differentiated growth underscored by:
• • Alignment with long-term consumer trends
  • Our broad and advantaged portfolio
  • Fundamental strength of our categories

5	1) In constant currency
The non-GAAP measures included herein, which we refer to as "adjusted", exclude the impact of items affecting comparability between periods. See reconciliation of GAAP to non-GAAP financial measures on slides 30 to 33, including
	the impact of constant currency