Molson Coors Brewing Company London Analyst/Investor Meeting December - PowerPoint PPT Presentation

Molson Coors Brewing Company London Analyst/Investor Meeting December 1, 2010

P Peter Swinburn S i b Chief Executive Officer M l Molson Coors Brewing Company C B i C 2

Forward ‐ Looking Statements/US GAAP Reconciliations Forward ‐ Looking Statements: This presentation may include 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 b d bl i i h h i ill b I f h 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”). These factors include, among others, pension plan costs; availability or increase in the cost of packaging materials; our ability to maintain manufacturer/distribution agreements; impact of competitive pricing and product pressures; our ability to implement our strategic initiatives, including executing and realizing cost savings; changes in legal and regulatory requirements, including the regulation of distribution systems; increase in the cost of commodities used in the business; our ability to maintain brand image, reputation and product quality; our ability to maintain good labor relations; changes in our supply chain system; additional impairment charges; the impact of climate change and the availability and quality of water; the ability of MillerCoors to integrate operations and technologies; lack of full ‐ control over the operations of MillerCoors; the ability of MillerCoors to maintain good relationships with its distributors; and other risks discussed in our filings with the SEC, including our Annual Report on Form 10 ‐ K for the year ‐ ended December 26, 2009, which are available from the SEC. All forward ‐ looking statements in this press release 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. Reconciliations to Nearest U.S. GAAP Measures: The following presentation includes certain "non ‐ GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the Company's website at MolsonCooors.com (in the “Investor Relations" section) which reconciles our results as reported under Generally Accepted Accounting Principles and the non ‐ GAAP financial measures included in the following presentation. 3

Today’s Agenda • Peter Swinburn, CEO, Molson Coors • Stewart Glendinning, CFO, Molson Coors • Mark Hunter, CEO, Molson Coors UK • Steve Ellis, Strategy Director, Molson Coors UK • Chris McDonough, Marketing Director, Molson Coors UK Chris McDonough, Marketing Director, Molson Coors UK • David Heede, Finance Director, Molson Coors UK • Closing Remarks • Q&A 4

Molson Coors Brewing Company Overview • Brewing Heritage: 350 years of brewing heritage with Molson and Coors families retaining significant ownership • Extraordinary Brands: A long ‐ standing commitment to building strong brands that excite and inspire beer drinkers • Leading Innovations: A passion for delivering value ‐ enhancing innovation for drinkers worldwide innovation for drinkers worldwide • Global Partnerships: A successful track record of forming bre er partnerships that generate al e for both parties brewer partnerships that generate value for both parties • Drive: Molson Coors is focused on becoming a top global brewer in profit 5

Performance Profile by Market ‐ 2009 * US volumes represent MillerCoors at 42%. ** Represents the % of pretax underlying profit from our 3 Represents the % of pretax underlying profit from our 3 * US * US net sales represent MillerCoors at 42%. t l t Mill C t 42% major markets and excludes our Corp / MCI segment results. 6

Expanding Global Footprint MCBC Markets by Size, CAGR & Profit Pool China Russia • 442 M/HL • 442 M/HL • 103 M/HL • 7.5% CAGR (‘09-’12) • 5.5% CAGR (‘09-’12) • $1.0B Profit Pool (EBIT) • $1.8B Profit Pool (EBIT) UK Canada • 50 M/HL • 23 M/HL • -0.5% CAGR (‘09-’12) • 0.5% CAGR (‘09-’12) • $0.5B Profit Pool (EBIT) • $1.3B Profit Pool (EBIT) ( ) Japan • 60 M/HL • -0.5% CAGR (‘’09-’12) United States • $1.6B Profit Pool (EBIT) • 246 M/HL • 1.0% CAGR (‘09-’12) Spain • $6.5B Profit Pool (EBIT) • 35 M/HL Philippines Philippines • 1% CAGR (‘09-’12) • 18 M/HL • $0.8B Profit Pool (EBIT) • 3% CAGR (‘’09-’12) Central America & Caribbean • $0.35B Profit Pool (EBIT) • ~ 7.5 M/HL • ~1% CAGR (‘09-’12) Mexico • ~$150M Profit Pool (EBIT) • 64 M/HL • 64 M/HL Vietnam • 3% CAGR (‘09-’12) • 24 M/HL • $1.5B Profit Pool (EBIT) • 7% CAGR (‘09-’12) • $0.1B Profit Pool (EBIT) Source: 1) HL, CAGR, profit pool and market share data; JP Morgan, Merill Lynch, ) , , p p ; g , y , Europe Equity Resource, 18 June 2010; 2) Revenue data; Euromonitor, Country Sector Briefing (for each country), February 2010 7

Strategic Direction Drive sustainable, long ‐ term shareholder value: • Investing in a portfolio of extraordinary brands • Investing in a portfolio of extraordinary brands • Driving innovation at a packaging and brand level • Ensuring rigorous cost management discipline • Applying a strong, disciplined process to all our cash ‐ use decisions with strict return criteria 8

Investing in a Portfolio of Extraordinary Brands • Drive value and volume in US premium lights  Coors Light taking share and outperforming market  Miller Lite – new “Man Up” ad campaign and Miller Lite new Man Up ad campaign and vortex innovation improving the trend  MGD 64 maintaining share in its category, leveraging first mover advantage g g g • Build compelling above premium portfolio  Creation of Tenth & Blake  Invest in craft/specialty occasion portfolio Invest in craft/specialty occasion portfolio • Extend Coors Light Internationally  Expansion into high growth markets – China, Russia p g g and Vietnam  Achieve strength in the mass premium segment  Exploit existing MCBC innovation and develop new market specific innovations 9

Investing in a Portfolio of Extraordinary Brands • Expand & Innovate UK Portfolio  Continue Cobra expansion  Introducing Blue Moon g  Leverage new Modelo partnership  Expanding category: BitterSweet Partnership  Adding excitement through new packaging and brand innovations • Improve Molson Trademark Brand • Improve Molson Trademark Brand Performance in Canada  New Canadian launch: “Made from Canada”  Adding excitement to category with 67 M Adding excitement to category with 67, M and Export  Improving market share performance 10 10

Driving Value Enhancing Innovation Molson Coors is focused on innovation: • Innovation = Consumer Value Innovation Consumer Value • Innovation = Differentiation • Increases drinker loyalty and adds excitement • Provides competitive advantage • Grows brands and margins • Drives top ‐ line growth • Two main categories of innovation: 1. Packaging Innovations 2. New Brands Innovation 11 11

Rigorous Cost Management Discipline • Cost savings critical for brand momentum and L ‐ T growth • Increased Canada and U.K. brand investments I d C d d U K b d i • U.S. brands: initial signs of improvement • Near term focus: deliver existing commitments • Near term focus: deliver existing commitments • RFG2 • MillerCoors cost reductions • Commitment: attack all cost ‐ reduction opportunities to free ‐ up resources to grow top and bottom lines Cost reductions are a way of life 12 12

Well Positioned to Grow & Shareholder Focused STRATEGY OBJECTIVES • Maintain or grow market share Brands & Innovation = • Increase revenue per barrel Consumer Value Growth Consumer Value, Growth • Deliver innovation that drives D li i ti th t d i Opportunities brand growth • Extend global footprint SHAREHODLER VALUE VALUE • Stronger competitor, balance Smart Cost sheet Management • Resources to grow top line and b tt bottom line li 13 13

Stewart Glendinning Stewart Glendinning Chief Financial Officer Molson Coors Brewing Company Molson Coors Brewing Company 14 14

Value ‐ Driving Financial Strategies • Molson Coors financial performance update • Financial strategies to drive sustainable, long ‐ term value for shareholders:  Cost savings update  Strategies to generate substantial cash and strengthen S i b i l h d h our balance sheet,  High ‐ return cash ‐ use priorities, disciplined process 15 15