Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Q3 2017 Earnings Presentation
26 slides from Molson Coors Beverage's earnings presentation, Nov 1, 2017
Slide 1: Molson Coors Q3 & YTD 2017 Earnings
MOLSON COORS Q3 & YTD 2017 EARNINGS NOVEMBER 1, 2017 1
Slide 2: Forward Looking Statements
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 fo
Slide 3: Mark Hunter, President and CEO; Tracey Joubert, CFO
MARK HUNTER PRESIDENT AND CEO M O L S O N C O O R S B R E W I N G C O M PA N Y TRACEY JOUBERT CFO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 4: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE USE LESS INVEST WISELY • Drive Top Line • Drive Synergies & • Deliver FCF Target Cost Savings • Energize Core, AP & • Pay Down Debt/Pay Craft • Increase Productivity- Dividends S
Slide 5: Portfolio Premiumization Across the Globe
PORTFOLIO PREMIUMIZATION ACROSS THE GLOBE STRONG 2017 PERFORMANCE Above Premium Brand Volume Above Premium Brand Volume +20% +19% Q3'16 Q3'17 YTD'16 YTD'17 KEY TAKEAWAYS 1. Above premium represents 18% of total brand volume in Q3 2017, up from 15% in 2016 2. Strong above premium performance in Europ
Slide 6: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE USE LESS INVEST WISELY • Drive Top Line • Drive Synergies & • Deliver FCF Target Cost Savings • Energize Core, AP & • Pay Down Debt/Pay Craft • Increase Productivity- Dividends S
Slide 7: Tracey Joubert, CFO
TRACEY JOUBERT CFO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 8: Building Momentum on Top- and Bottom-Line Results: Q3 2017
BUILDING MOMENTUM ON TOP- AND BOTTOM-LINE RESULTS Q3 2017 CONSOLIDATED PERFORMANCE NSR/HL WW BRAND VOLUME UNDERLYING EBITDA (USD, constant currency) (millions HL) (USD millions, constant currency) -1.2% $682 +1.9% $674 +0.6% $108.59 25.5 25.4 $106.58 Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 +2.9% REPORTE
Slide 9: Building Momentum on Top- and Bottom-Line Results: YTD 2017
BUILDING MOMENTUM ON TOP- AND BOTTOM-LINE RESULTS YTD 2017 CONSOLIDATED PERFORMANCE NSR/HL WW BRAND VOLUME UNDERLYING EBITDA (USD, constant currency) (millions HL) (USD millions, constant currency) +1.8% +2.4% +1.6% $2,013 $110.95 71.6 70.5 $1,978 $108.34 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 +1
Slide 10: United States Q3 2017 Performance
UNITED STATES Q3 2017 PERFORMANCE UNDERLYING EBITDA STR VOLUME* DOMESTIC NSR/HL ($ millions) (millions HL) +0.8% $475.6 -2.9% $471.6 +1.2% Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 STW Volume –7.2% KEY TAKEAWAYS 1. Higher underlying EBITDA 2. NSR/HL growth driven by net pricing 3. STWs down 7.2% driven by
Slide 11: United States YTD 2017 Performance
UNITED STATES YTD 2017 PERFORMANCE UNDERLYING EBITDA STR VOLUME* DOMESTIC NSR/HL ($ millions) (millions HL) +2.2% -2.3% +0.8% $1,536.9 $1,504.3 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 STW Volume –3.8% Note: 2016 volume and underlying EBITDA results are pro forma. STR and STW volumes based on domes
Slide 12: Canada Q3 2017 Performance
CANADA Q3 2017 PERFORMANCE UNDERLYING EBITDA BRAND VOLUME NSR/HL (millions, constant currency) (local currency) $112.7 -5.7% -1.7% +2.0% $106.3 Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 –0.5% Reported Financial Volume –4.7% +6.0% Reported KEY TAKEAWAYS 1. Lower underlying EBITDA 2. Gained market share, so
Slide 13: Canada YTD 2017 Performance
CANADA YTD 2017 PERFORMANCE UNDERLYING EBITDA BRAND VOLUME NSR/HL (millions, constant currency) (local currency) -10.7% -0.9% +2.6% $281.1 $251.0 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 –9.1% Reported Financial Volume –2.4% +3.3 Reported 13
Slide 14: Europe Q3 2017 Performance
EUROPE Q3 2017 PERFORMANCE UNDERLYING EBITDA BRAND VOLUME NSR/HL (millions, constant currency) (local currency) +10.4% +4.1% $136.4 +9.6% $123.5 Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 +13.6% Reported Financial Volume +2.7% +6.7% Reported KEY TAKEAWAYS 1. Continued strong EBITDA performance 2. Strong br
Slide 15: Europe YTD 2017 Performance
EUROPE YTD 2017 PERFORMANCE UNDERLYING EBITDA BRAND VOLUME NSR/HL (millions constant currency) (local currency) +29.8% +10.3% +7.1% $349.2 $269.0 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 +23.6% Reported Financial Volume +3.2% +2.0% Reported 15
Slide 16: International Q3 2017 Performance
INTERNATIONAL Q3 2017 PERFORMANCE UNDERLYING EBITDA BRAND VOLUME NSR/HL (millions) (millions HL) (based on financial volume) Q3'16 Q3'17 +64.7% -11.6% -$1.0 -$1.8 Q3'16 Q3'17 Q3'16 Q3'17 Financial Volume +122.5% +19.4% (based on total brand volume) KEY TAKEAWAYS 1. Increased brand volume, despite im
Slide 17: International YTD 2017 Performance
INTERNATIONAL YTD 2017 PERFORMANCE UNDERLYING EBITDA BRAND VOLUME NSR/HL (millions) (millions HL) (based on financial volume) -1.3% $3.1 +56.3% -$4.9 YTD'16 YTD'17 YTD'16 YTD'17 YTD'16 YTD'17 Financial Volume +88.3% +19.0% (based on total brand volume) 17
Slide 18: 2017 Guidance Updates
2017 GUIDANCE UPDATES Capital spending: approximately $650 million, +/- 5 percent. - (formerly $750 million, +/- 10 percent) Underlying Corporate net interest expense: approximately $360 million, +/- 5 percent. - (formerly consolidated net interest of $370 million, +/- 10 percent) Underlying effecti
Slide 19: Mark Hunter, President and CEO
MARK HUNTER PRESIDENT AND CEO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 20: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE EARN MORE USE LESS INVEST WISELY USE LESS DRIVE TOTAL SHAREHOLDER RETURNS 20
Slide 21: United States Growth Imperative
UNITED STATES GROWTH IMPERATIVE FLAT BY 2018, GROWTH BY 2019 CONSUMER EXCELLENCE • Continue growing share in Premium • Accelerate growth in Above Premium • Stabilize Economy to expand the beer category CUSTOMER EXCELLENCE • Expand Building with Beer • Continue improving field sales execution • Ranke
Slide 22: Canada Growth Imperative
CANADA GROWTH IMPERATIVE TOP-LINE GROWTH COUPLED WITH COST EFFICIENCIES CONSUMER EXCELLENCE • Reenergize Coors Light and Molson Canadian • Accelerate share gains in Above Premium, Craft & FMBs • Expand Miller brands CUSTOMER EXCELLENCE • Accelerate field sales management impact • Embrace Building wi
Slide 23: Europe Growth Imperative
EUROPE GROWTH IMPERATIVE DRIVING UPSIDE POTENTIAL FROM A SOLID BASE CONSUMER EXCELLENCE • Energize core brands • Accelerate Above Premium and craft growth • Push harder into cider CUSTOMER EXCELLENCE 2012 2016 No. 1 in • Maintain and develop First Choice for On Premise 6th 2nd Customer reputation Of
Slide 24: International Growth Imperative
INTERNATIONAL GROWTH IMPERATIVE DRIVING GROWTH FROM A STRONG PLATFORM CONSUMER EXCELLENCE • Leverage global brand portfolio • Rapidly expand Blue Moon • Expand portfolio footprint CUSTOMER EXCELLENCE • Utilize global segmentation approach • Deliver world class in-outlet tools • Strengthen distributo
Slide 25: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE USE LESS INVEST WISELY • Drive Top Line • Drive Synergies & • Deliver FCF Target Cost Savings • Energize Core, AP & • Pay Down Debt/Pay Craft • Increase Productivity- Dividends S
Slide 26: Molson Coors Q3 & YTD 2017 Earnings
MOLSON COORS Q3 & YTD 2017 EARNINGS NOVEMBER 1, 2017 26
Molson Coors Brewing Company — Q3 2017 Earnings Presentation on 6ix