Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing — Merger or Acquisition (November 2015)
16 slides from Molson Coors Beverage's merger presentation, Nov 12, 2015
Slide 1: Molson Coors to Acquire Full Ownership of MillerCoors and the Miller Brand Family Globally
M O L S O N C O O R S T O A C Q U I R E F U L L O W N E R S H I P O F M I L L E R C O O R S A N D T H E M I L L E R B R A N D FA M I LY G L O B A L LY N O V E M B E R 1 1 , 2 0 1 5 1
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 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
Slide 3: A Unique and Game-Changing Opportunity for Molson Coors
Unique opportunity to control 100% of strategic and attractive U.S. business, while accelerating new growth opportunities in emerging and developed beer markets globally through Miller brand ownership Acquisition improves operating efficiency and go-to-market strategy Financially compelling transact
Slide 4: Transaction Overview
TRANSACTION OVERVIEW 4 Transaction Summary Financial Impact Valuation Sources of Financing • Total purchase price of $12.0 billion for the remaining 58% of the MillerCoors joint venture, ownership of the Miller Brand Family globally, an estimated $2.4 billion present value of cash tax benefits, and
Slide 5: A Compelling Transaction
A COMPELLING TRANSACTION 5 Consistent With Molson Coors’ Strategic Vision Seamless Integration Based on Existing Ownership Iconic American Beer Brands Support Global Growth Drives Substantial Financial Benefits to Shareholders • Creates leading North American brewer with a unique portfolio of iconic
Slide 6: Fortifying Position in Attractive U.S. Market
#2 Brewer in the U.S. with 27% market share Includes the #2 and #4 beer brands #1 Craft brewer in the U.S. with Tenth and Blake #1 Craft brand in the U.S. with Blue Moon #1 Shandy in the U.S. with Leinenkugel’s #2 Cider with Smith & Forge A leader in FMBs with Redd’s and Steel Reserve
Slide 7: Miller Brands — Global Growth Opportunity
MILLER BRANDS — GLOBAL GROWTH OPPORTUNITY 7 Global Miller Brand Volume Breakdown Panama 18% Canada 9% Mexico 9% Paraguay 6% Argentina 6% UK 6% Australia 4% Colombia 4% South Africa 3% Other 35% ~3.2MM HL The Miller Brand Portfolio • The Miller brands globally are a profitable business built on a pow
Slide 8: The Miller Trademark Is a Tremendous Addition to the Global Molson Coors Portfolio
THE MILLER TRADEMARK IS A TREMENDOUS ADDITION TO THE GLOBAL MOLSON COORS PORTFOLIO 8 “Quality, Uncompromising and Unchanging” Frederick J Miller
Slide 9: Miller Advances Our Global Brand Portfolio
9 MILLER ADVANCES OUR GLOBAL BRAND PORTFOLIO Allows Molson Coors to devote resources to brands with the greatest growth potential globally Global Priority Brands National Champions High-Growth Craft Portfolio
Slide 10: Greater Exposure to the Highly Attractive U.S. Beer Market
Pro Forma (100% MillerCoors, Miller Global) U.S. 48% Canada 31% Europe 21% U.S. 67% Canada 18% Europe 12% Miller Global 3% 2014 Revenue $7.44 billion $12.18 billion (2) GREATER EXPOSURE TO THE HIGHLY ATTRACTIVE U.S. BEER MARKET 10 Op e ra ting In c om e Bre a k do w n Net S a le s Bre a k do w n Tod
Slide 11: Proven Track Record of Achieving Significant Cost Reductions
PROVEN TRACK RECORD OF ACHIEVING SIGNIFICANT COST REDUCTIONS 11 Over $1.3 billion of cost savings delivered since the formation of Molson Coors $81 $185 $331 $442 $657 $851 $958 $1,078 $1,195 $1,333 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Cumulative Annualized Cost Savings Since 2005 ($mil
Slide 12: Financially Attractive Transaction
12 FINANCIALLY ATTRACTIVE TRANSACTION • Maintain strong balance sheet, excellent liquidity; increased free cash flow potential • Disciplined cash management and capital allocation, including using PACC model • Fast debt pay-down, consistent with strong track record of exceeding deleverage goals Earn
Slide 13: Integration and Operational Strategy
INTEGRATION AND OPERATIONAL STRATEGY 13 • Leverage significant synergy potential across entire North American supply chain, shared services activities and global procurement • No change to existing portfolio of MillerCoors joint venture, but greater resources to invest in brands • All current brands
Slide 14: Transaction Delivers Growth & Total Shareholder Value
14 TRANSACTION DELIVERS GROWTH & TOTAL SHAREHOLDER VALUE • Investing behind core brands • Driving share in above premium in the U.S. and select global markets • Cross-border exchange of value- added innovation, commercial excellence Drives: • Tax benefits • Cost reductions • Working capital improvem
Slide 15: A Unique and Game-Changing Opportunity for Molson Coors
Unique opportunity to control 100% of strategic and attractive U.S. business, while accelerating new growth opportunities in emerging and developed beer markets globally through Miller brand ownership Acquisition improves operating efficiency and go-to-market strategy Financially compelling transact
Slide 16: Molson Coors to Acquire Full Ownership of MillerCoors and the Miller Brand Family Globally
M O L S O N C O O R S T O A C Q U I R E F U L L O W N E R S H I P O F M I L L E R C O O R S A N D T H E M I L L E R B R A N D FA M I LY G L O B A L LY N O V E M B E R 1 1 , 2 0 1 5 16
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