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 S E P T E M B E R 7 , 2 0 1 6
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 of 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 operations 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. 3
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 4
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 WORLDWIDE NET UNDERLYING SALES (1) PRETAX (2) BEER VOLUME 5% 2% 19% 28% 37% 28% 22% 13% 53% 48% 45% UNITED STATES (42%) EUROPE CANADA INTERNATIONAL MARKETS (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 5 our website.
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 MARKET MARKET POSTIONS* BRAND POSITION* BRAND #2 #2 & #4 USA 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 We have our brands in over 50 countries through our license and export business. 6 * Company/Industry Estimates, based on full year 2015 results.
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 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 • Investing behind core brands BRAND-LED • Driving share in above premium PROFIT • Delivering value-added innovation GROWTH • Commercial excellence PROFIT AFTER CAPITAL CHARGE • Cost reductions • Capital expenditure CASH TOTAL driving efficiencies GENERATION SHAREHOLDER • Working Capital improvements RETURN • Sale of non-core assets (TSR) • Disciplined cash use CASH AND • Return-driven criteria CAPITAL ALLOCATION • Balanced priorities 7
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 TAP SHARES 5 YEAR 170% 3 YEAR 126% 1 YEAR 58% • Brand-led revenue and TAP profit growth • Cash generation • Cash and capital allocation, underpinned by PACC 8 Total Shareholder Return (TSR) = TAP stock price, plus dividends (intraday September 2, 2016).
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 9
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’ ECONOMY IMPORT SPECIALTY CRAFT PREMIUM strategic vision Iconic American beer brands support global growth Drives substantial financial benefits to shareholders Seamless integration based on existing ownership Continues strategic evolution of Molson Coors 10
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 TOMORROW TODAY PRO FORMA – 100% 42% OF MILLERCOORS OF MILLERCOORS $6.8 $11.2 2015 Net sales BILLION BILLION $1.3 $2.3 2015 Underlying EBITDA income BILLION BILLION $936 $1.6 2015 Underlying operating income MILLION BILLION 58 94 2015 Volume MILLION HLs MILLION HLs Plus: $200 million of annualized cost synergies by Year 4 Plus: More than $250 million of annual cash tax benefit 11
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 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 COMMERCIAL EXCELLENCE FRAMEWORK CONSUMER EXCELLENCE CUSTOMER EXCELLENCE Building extraordinary brands Delighting customers Focusing on Five Accelerators: FSM CUSTOM ________ GLOBAL INNOVATION BRANDS NPS ER DIGITAL RELATIO CUSTOMER NSHIPS INSIGHTS RELATIONSHI DIGITAL INSIGHTS PS 12
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 GLOBAL GLOBAL GLOBAL TRADEMARK BRANDS BRANDS BRANDS • Sharpened Portfolio Strategy NATIONAL CHAMPIONS • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability HIGH-GROWTH • Commercial Excellence Academy CRAFT & AP PORTFOLIO 13
Insert Coors Banquet Commercials
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 GLOBAL GLOBAL TRADEMARK BRANDS BRANDS • Sharpened Portfolio Strategy NATIONAL CHAMPIONS • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability HIGH-GROWTH • Commercial Excellence Academy CRAFT & AP PORTFOLIO 15
LEA D IN G G LO B A L C R A FT PO R TFO LIO # 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 US #1 US Shandy Brand #1 US Craft Brand EUROPE #1 Irish Craft Brewery #1 UK Craft Brand CANADA 16
A C C ELER ATIN G O U R FO C U S O N IN SIG H TS & D IG ITA L 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 • New Global Digital Centre of Expertise • Embed global segmentation model Team • Sharpened portfolio strategy • Digital Experts now placed in all key • Distinctive brand propositions markets • Partnerships with Leading Digital companies • Digital Incubator & Venturing 17
A C C ELER ATIN G O U R IN N O VATIO N A G EN D A 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 • New Global Innovation Centre of Expertise Team • White spaces for Innovation • Enterprise projects, in flight • Leverage MillerCoors approach • Best of Both Processes & Tools 18
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