M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G - - PowerPoint PPT Presentation

S E P T E M B E R 7 , 2 0 1 6

M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G L O B AL C O N S U M E R S TAP L E S C O N F E R E N C E

S E P T E M B E R 7 , 2 0 1 6

M AR K H U N T E R P R E S I D E N T & C E O M O L S O N C O O R S B R E W I N G C O M PAN Y

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FO RWA R D LO O K IN G STATEMEN T

This presentation includes estimates or projections that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” "expect,” "intend,” "anticipate,” “project,” “will,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in "Risk Factors" in our Annual Report on Form 10-K for the year-ended December 31, 2015. These factors include, among others, our ability to successfully close, finance and integrate the acquisition; our ability to achieve expected tax benefits, accretion and cost synergies; our ability to obtain necessary regulatory approvals for the acquisition; impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and our brands in our markets; economic conditions in our markets; additional impairment charges; our ability to maintain manufacturer/distribution agreements; changes in our supply chain system; availability or increase in the cost of packaging materials; success of our joint ventures; risks relating to operations in developing and emerging markets; changes in legal and regulatory requirements, including the regulation of distribution systems; fluctuations in foreign currency exchange rates; increase in the cost of commodities used in the business; the impact

• f climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; our ability to

implement our strategic initiatives, including executing and realizing cost savings; our ability to successfully integrate newly acquired businesses; pension plan costs; failure to comply with debt covenants or deterioration in our credit rating; our ability to maintain good labor relations; our ability to maintain brand image, reputation and product quality; lack of full-control over the

• perations of MillerCoors and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-K for

the year-ended December 31, 2015. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

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TO D AY’S A G EN D A

MARK HUNTER, CEO, MOLSON COORS

• Introductions, corporate overview, strategic focus

and growth opportunities MAURICIO RESTREPO, CFO, MOLSON COORS

• Strategies to grow profit, cash, total shareholder

return Q&A

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MO LSO N C O O R S TO D AY

$ 6 . 8 B I L L I O N I N R E V E N U E A N D $ 1 . 3 B I L L I O N I N E B I T D A

(1) Excludes Corporate and Eliminations from the total. (2) Does not include underlying operating losses for Corporate and MCI. Non GAAP underlying income is calculated by excluding

special and other non-core items from the nearest U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures on

• ur website.

EUROPE CANADA UNITED STATES (42%) INTERNATIONAL MARKETS

45% 48% 53% 13% 22% 28% 37% 28% 19% 2%

WORLDWIDE BEER VOLUME NET SALES (1) UNDERLYING PRETAX(2)

5%

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LEA D IN G MA R K ET & B R A N D PO SITIO N S

# 1 O R # 2 I N M O S T O F O U R M A R K E T S

We have our brands in over 50 countries through our license and export business.

* Company/Industry Estimates, based on full year 2015 results.

MARKET MARKET POSTIONS* BRAND POSITION*

BRAND

USA

#2 #2 & #4

Canada

#2 #2 & #4

UK

#2 #1

Bulgaria

#1 #1

Croatia

#1 #1

Serbia

#1 #1

Czech Republic

#2 #4

Hungary

#3 #2

Romania

#3 #5

Bosnia

#1 #1

Slovakia

#3 #5

Montenegro

#1 #1

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A FO C U S O N D ELIVER IN G G R O W TH & LO N G TER M SH A R EH O LD ER VA LU E

• Investing behind core brands
• Driving share in above premium
• Delivering value-added innovation
• Commercial excellence
• Cost reductions
• Capital expenditure

driving efficiencies

• Working Capital improvements
• Sale of non-core assets
• Disciplined cash use
• Return-driven criteria
• Balanced priorities

PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)

BRAND-LED PROFIT GROWTH CASH AND CAPITAL ALLOCATION CASH GENERATION

PA C C R E M A I N S K E Y D E C I S I O N D R I V E R

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• Brand-led revenue and

profit growth

• Cash generation
• Cash and capital allocation,

underpinned by PACC

TOTAL SHAREHOLDER RETURN TAP SHARES

5 YEAR 170% 3 YEAR 126% 1 YEAR 58% A STR O N G R EC O R D O F SH A R EH O LD ER R ETU R N S

O U T P E R F O R M E D T H E S & P 5 0 0 O V E R 1 , 3 A N D 5 Y E A R H O R I Z O N S

Total Shareholder Return (TSR) = TAP stock price, plus dividends (intraday September 2, 2016).

TAP

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O U R STR ATEG IC FR A MEW O R K – MC B C B R EW H O U SE

D R I V I N G O U R F I R S T C H O I C E A M B I T I O N

10 ECONOMY IMPORT SPECIALTY CRAFT PREMIUM

A C Q U IR IN G MILLER C O O R S & MILLER IN TER N ATIO N A L

A U N I Q U E A N D G A M E - C H A N G I N G O P P O R T U N I T Y F O R M O L S O N C O O R S

Consistent with Molson Coors’ strategic vision Seamless integration based

• n existing ownership

Iconic American beer brands support global growth Drives substantial financial benefits to shareholders Continues strategic evolution

• f Molson Coors

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MO LSO N C O O R S: TO D AY VS. TO MO R R O W

D O U B L E S T H E S I Z E O F T H E C O M PA N Y Plus: $200 million of annualized cost synergies by Year 4 Plus: More than $250 million of annual cash tax benefit

TODAY

42% OF MILLERCOORS

TOMORROW

PRO FORMA – 100% OF MILLERCOORS 2015 Net sales 2015 Underlying EBITDA income

$6.8

BILLION

$1.3

BILLION

$11.2

BILLION

$2.3

BILLION

2015 Underlying

• perating income

2015 Volume

$936

MILLION

$1.6

BILLION

58

MILLION HLs

94

MILLION HLs

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EN H A N C ED C O MMER C IA L C A PA B ILITIES W ILL D R IVE TO P A N D B O TTO M LIN E G R O W TH DIGITAL CUSTOM ER RELATIO NSHIPS

CUSTOMER

RELATIONSHI PS

Focusing on Five Accelerators:

INSIGHTS

CONSUMER EXCELLENCE

Building extraordinary brands

CUSTOMER EXCELLENCE

Delighting customers

COMMERCIAL EXCELLENCE FRAMEWORK

A C Q U I S I T I O N A C C E L E R AT E S C O M M E R C I A L A G E N D A

GLOBAL BRANDS INSIGHTS

INNOVATION

DIGITAL FSM ________ NPS

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A C C ELER ATIN G G LO B A L B R A N D S

B U I L D I N G A N E X T R A O R D I N A R Y B R A N D P O R T F O L I O

• Sharpened Portfolio Strategy
• Distinctive Brand Propositions
• Global Brands + Emerging

Categories Centre of Expertise

• Consumer Excellence Capability
• Commercial Excellence Academy

GLOBAL TRADEMARK BRANDS

GLOBAL BRANDS

NATIONAL CHAMPIONS HIGH-GROWTH CRAFT & AP PORTFOLIO

GLOBAL BRANDS

Insert Coors Banquet Commercials

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A C C ELER ATIN G G LO B A L B R A N D S

B U I L D I N G A N E X T R A O R D I N A R Y B R A N D P O R T F O L I O

• Sharpened Portfolio Strategy
• Distinctive Brand Propositions
• Global Brands + Emerging

Categories Centre of Expertise

• Consumer Excellence Capability
• Commercial Excellence Academy

GLOBAL TRADEMARK BRANDS NATIONAL CHAMPIONS HIGH-GROWTH CRAFT & AP PORTFOLIO

GLOBAL BRANDS

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# 1 C R A F T B R A N D I N M O S T O F O U R C O R E M A R K E T S

LEA D IN G G LO B A L C R A FT PO R TFO LIO

#1 US Craft Brand

US

EUROPE CANADA

#1 UK Craft Brand #1 Irish Craft Brewery #1 US Shandy Brand

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A C C ELER ATIN G O U R FO C U S O N IN SIG H TS & D IG ITA L

• Embed global segmentation model
• Sharpened portfolio strategy
• Distinctive brand propositions
• New Global Digital Centre of Expertise

Team

• Digital Experts now placed in all key

markets

• Partnerships with Leading Digital

companies

• Digital Incubator & Venturing

B U I L D I N G S T R O N G E R C O N S U M E R C O N N E C T I O N S

INSIGHTS DIGITAL

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A C C ELER ATIN G O U R IN N O VATIO N A G EN D A

• New Global Innovation Centre of

Expertise Team

• White spaces for Innovation
• Enterprise projects, in flight
• Leverage MillerCoors approach
• Best of Both Processes & Tools

B U I L D I N G S T R O N G E R C O N S U M E R C O N N E C T I O N S INNOVATION

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FIR ST C H O IC E FO R C U STO MER S

S U P E R I O R C U S T O M E R E X P E R I E N C E A N D F R O N T - L I N E R E L AT I O N S H I P S

• Relentless focus on customer experience
• Net Promotor Score (NPS) as primary metric
• Voted #1 supplier by Tamarron Survey in the US
• Best rated supplier by UK’s largest grocer Tesco
• Voted #1 in UK’s Advantage Survey (Major Chain Grocers)
• Ranked #1 supplier by Boston Pizza in Canada
• Deployed Field Sales Management (FSM) and NPS

across Canada & Europe

• Compensation link to execution
• Best of both process & tools

FSM ________ NPS

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B U ILD IN G A B IG G ER A N D B ETTER B U SIN ESS CUSTOM ER RELATIO NSHIPS

CUSTOMER

RELATIONSHI PS INSIGHTS

CONSUMER EXCELLENCE

Building extraordinary brands

CUSTOMER EXCELLENCE

Delighting customers

COMMERCIAL EXCELLENCE FRAMEWORK

A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H

A stronger, more effective competitor with enhanced commercial capabilities to drive top-line growth and win in the marketplace.

GLOBAL BRANDS INSIGHTS

INNOVATION

DIGITAL FSM ________ NPS

S E P T E M B E R 7 , 2 0 1 6

M AU R I C I O R E S T R E P O G L O B AL C F O M O L S O N C O O R S B R E W I N G C O M PAN Y

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D R IVIN G G R O W TH TH R O U G H FO C U S O N STR ATEG IES A N D PA C C MO D EL

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TH E PA C C MO D EL

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• Investing behind core brands
• Driving share in above premium
• Delivering value-added innovation
• Commercial excellence
• Cost reductions
• Capital expenditure

driving efficiencies

• Working Capital improvements
• Sale of non-core assets
• Disciplined cash use
• Return-driven criteria
• Balanced priorities

PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)

BRAND-LED PROFIT GROWTH CASH AND CAPITAL ALLOCATION CASH GENERATION

D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL

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EARN MORE INVEST WISELY USE LESS D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL

PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)

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Up 2% in first half 2016.

(1) Non-GAAP underlying pretax income is calculated by excluding special and other non-core items from the nearest U.S.

GAAP earnings. See reconciliation to nearest U.S. GAAP measures in our 10-K.

$821 $865 $865 $904 $832 $430 $439

$0 $200 $400 $600 $800 $1000

2011 2012 2013 2014 2015 1H 2015 1H 2016

($ millions)

C O N SISTEN T FIN A N C IA L PER FO R MA N C E EVEN IN TO U G H TIMES… UNDERLYING PRETAX INCOME(1)

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Over $1.4 billion of cumulative annualized cost savings delivered.

(1) Includes 42% of MillerCoors cost savings.

$81 $185 $331 $442 $657 $851 $958 $1,078 $1,195 $1,333 $1,434

$0 $200 $400 $600 $800 $1000 $1200 $1400

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

($ millions)

C O ST R ED U C TIO N S H ELP TO D R IVE TO P LIN E A N D B O TTO M LIN E CUMULATIVE ANNUALIZED COST SAVINGS(1)

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Substantial % of savings reinvested for profitable growth.

LONG-TERM SUSTAINABILITY

• Captured almost $65 million of savings in 2015 (1)
• Expect cost savings of $50-$70 million/year for at least the next 2 years(1)

DRIVEN THROUGH EFFICIENCY AND EFFECTIVENESS

• Canada Supply Chain and China Restructuring
• U.S.: Eden brewery closure announced
• Europe: Alton and Plovdiv Closures, Burton South agreement
• Canada: Vancouver sale, Montreal under review

(1) Excludes MillerCoors cost savings.

O N G O IN G C O ST EFFIC IEN C IES W ILL FU EL G R O W TH IN VESTMEN TS

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Commitment to maintaining investment-grade debt ratings.

(1) Pro forma net debt/underlying EBITDA. Non-GAAP underlying EBITDA (Earnings before interest, taxes, depreciation and amortization) is calculated excluding special and other non-core items from U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures in our 2015 10-K, as well as pro forma financial results in our 8-K filed on May12, 2016. Does not include transaction-related cash tax benefits. Note: Years 2011 through 2015 include 42% of MillerCoors underlying EBITDA.

FO C U S O N PAYIN G D O W N D EB T

0.7 2.8 2.3 1.7x 1.9x 5.3x

0x 1x 2x 3x 4x 5x 6x

2011 2012 PF 2013 2014 2015 2015 PF (1)

NET DEBT / EBITDA

Net debt reduced by +1.5 billion

X X X

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Will revisit dividend policy once deleveraging is well underway.

$0.64 $0.64 $0.76 $0.92 $1.08 $1.24 $1.28 $1.28 $1.48 $1.64

$0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

C O MMITTED TO C A SH R ETU R N S VIA D IVID EN D S DIVIDENDS PAID (ANNUAL PER SHARE)

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Consistent return-driven criteria, anchored by PACC.

D ISC IPLIN ED C A SH U SE STRENGTHEN Balance sheet RETURN CASH to shareholders CASH USE PRIORITIES Brand-led GROWTH OPPORTUNITIES

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More than $250 million of cash tax benefits in each of first 15 years.

E N H A N C I N G V I S I B I L I T Y

TR A N SA C TIO N - R ELATED R EPO R TIN G : EPS

Underlying After-Tax Income(2) $A Plus: Annual after-tax transaction-related book amortization (non-cash) $B(3) Plus: Annual transaction-related cash tax benefits $1.15 Equals: Underlying transaction-adjusted EPS $A + $B + $1.15 Example: 2015 pro forma transaction- adjusted EPS $4.33 + $0.24 + $1.15 = $5.72/share P&L Item Per Share(1)

(1) Based on May 12, 2016, pro forma financial information, including 216.3 diluted shares outstanding, as well as estimated cash tax benefits of $250 million/year, but excludes Miller Global brands business. See our website (www.molsoncoors.com) for a reconciliation to nearest U.S. GAAP measure. (2) Net income from continuing operations attributable to MCBC from Exhibit 99.3 of 8-K filed on May 12, 2016, has been adjusted to take into account transaction- related permanent financing completed in July 2016 (which drove a decrease of $199.8 million to PF interest expense), as well as the related tax impact (an increase of $75.8 million to PF income tax expense). (3) Assumed 38% tax rate.

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Increased visibility to gross cost savings.

FUTURE STATE CURRENT STATE

Molson Coors annual cost savings

• $50-$70 million/year for at least

2 years Transaction-related cost synergies

• $200 million by year 4

(annualized) MillerCoors cost savings

• No forward targets
• Quarterly historical reporting

All-in multi-year savings target _______________________________ Annual cost savings reporting

I N C R E A S I N G A L I G N M E N T, V I S I B I L I T Y & A C C O U N TA B I L I T Y

TR A N SA C TIO N - R ELATED R EPO R TIN G : C O ST SAVIN G S

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D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL EARN MORE INVEST WISELY USE LESS

PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)

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B U ILD IN G A B IG G ER A N D B ETTER B U SIN ESS DIGITAL CUSTOM ER RELATIO NSHIPS

CUSTOMER

RELATIONSHI PS INSIGHTS

CONSUMER EXCELLENCE

Building extraordinary brands

CUSTOMER EXCELLENCE

Delighting customers

COMMERCIAL EXCELLENCE FRAMEWORK

A stronger, more effective competitor with enhanced commercial capabilities to drive top-line growth and win in the marketplace.

A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H

GLOBAL BRANDS INSIGHTS

INNOVATION

DIGITAL FSM ________ NPS

S E P T E M B E R 7 , 2 0 1 6

M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G L O B AL C O N S U M E R S TAP L E S C O N F E R E N C E