Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Coors Adolph — Merger or Acquisition (July 2004)
36 slides from Molson Coors Beverage's merger presentation, Jul 26, 2004
Slide 1: Link to searchable text of slide shown above
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Slide 2: Forward Looking Statements
Forward Looking Statements ‘This preentafonindudes omar octng statement wihin fe meaning of he US federal cecutie lave, Fonvardiocking statements ae canmeely IdandSedby such teims and phases as "would, may’, wil, "expec of “expected to” and othe tems wilh saat meaning indicat posible tute vents ot a
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Slide 4: Molson and Coors: The Right Combination
Molson and Coors: The Right Combination mm + North America’s oldest brewer + Established in 1873 by Adolph Coors + 13 largest brewer in the world + 8th largest brewer in the world + Leading position in Canada: + Leading brands in US and UK beer growth opportunity in Brazil markets Rich Brewing Herit
Slide 5: To Create Substantial Value for Shareholders
To Create Substantial Value for Shareholders + Achieves operational and financial scale to compete more successfully + Foundation of strong, established brands in the world’s leading developed markets * Builds platform for participating in the continuing brewing industry consolidation + Maintains th
Slide 6: Leo Kiely
Leo Kiely MOLSON @)
Slide 7: A Compelling and Transformative Transaction
A Compelling and Transformative Transaction Merger of equals unlocks three phases of value creation: + Phase 1 — Estimated US$175M in potential synergies leading to near- term value creation for shareholders: — Cost savings primarily through procurement and network optimization — Expected to be accr
Slide 8: That Makes Perfect Sense
That Makes Perfect Sense + Creates top-5 brewer with the operational scale to succeed in the global brewing industry — Strong market positions in some of the world's largest beer markets — Broader geographic base provides diversified sources of revenue, profit and cash + Experienced management team
Slide 9: Propels Molson Coors into 'Top 5'
Propels Molson Coors into ‘Top 5’ Volume (i Ai 215 Soutce Company Reports ~ ists foal year CD Represent total pro rata wohime as tated in Caeberg2008 AnnualReport
Slide 10: With Broad Scope & Scale...
With Broad Scope & Scale... + Pro forma LTM net sales and EBITDA” of approximately US$6.0 billion and US$1.0 billion, respectively + Combined 2003 volume of 60M hi/51M US bbls + Combined product portfolio of more than forty brands a KEYSTONE TCE oo ws Bets Oo mno0O8 + Distribution and/or licensing a
Slide 11: Enhanced Platform in Developed Markets, Balanced Emerging Market Exposure
Enhanced Platform in Developed Markets, Balanced Emerging Market Exposure + Strong positions in world’s highest margin beer markets + Growth opportunities through underdeveloped regions/brands in mature markets and Brazil 2003 Volume 60M hi LTM Net Sales US$6B LTM EBITDA US$1B 3.3 (Us Mi canaca []UK
Slide 12: Tapping the Largest Profit Pools...
Tapping the Largest Profit Pools... us Japan Mexico uK Brazil Germany Russia Canada Philippines Australia USSM $0 $1,000 $2,000 $3,000 $4,000 $5,000 + Defned as brewing industry EBITDA in USS Molson Coors is positione: in the world
Slide 13: With Leading Positions in Key Markets..
With Leading Positions in Key Markets.. All Brands Top Brand ro Canada ue #1 43% a United Kingdom fost #1 21% #2 United States ct if #8 1% Es} Brazil #8 11% #8
Slide 14: Enhanced Financial Strength...
Enhanced Financial Strength... Pro Forma LTM Molson Coors sem) Net sales $5,963 ‘ Operating income 673 : Margin 11.3% : EBITDA 994 Margin 16.7% Free cash flow* 707 *Defined as EBITDA~CAPEX CADMUSD exchange rate of 1.36 Excludes potential synergies CTW (ast twelve montns) ended March 31, 2004 Financi
Slide 15: .. And Balanced Board & Management Team
.. And Balanced Board & Management Team Molson Independent Molson Independent Coors Independent Coors Family Coors Family
Slide 16: Link
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Slide 17: Management Team With Proven Track Record
Management Team With Proven Track Record Office of Synergy and Integration iC MOLSON LEO KELY DANIEL J. ONEILL Chairman Chief peat Executive Officer esac * 126 years of consumer industry experience * History of realizing operational efficiencies and controlling cost while maintaining sales growth ~
Slide 18: Synergies
Synergies Expected Savings % of Pro Forma (uss) Cost Bas Brewery Network Optimization $60 1.1% Procurement Savings 43 08 SGBA 40 08 Best In Class Savings 12 0.2 Organizational Design 10 02 Other 10 02 Total $175 3.3% lolson Coors has identified a clear path to substantial synergies
Slide 19: Profit Impact and Estimated Timing
Profit Impact and Estimated Timing Impact on EBITDA of 100% Synergies Expected Timing of Synergies Us$1 500m. 100% $1,200 $900 $600 $300 so pots Pro Forma Synergies Molson yew Yew? Years Coors % of synergy capture to occur in the first 18 months
Slide 20: Significant Opportunity for Margin Expansion
Significant Opportunity for Margin Expansion EBITDA to Net Sales Molson Coors Without With 100% cys9 CYOO CYO1 = CYO2_ COS Ines Synergies Molson~ 183% 189% 203% 165% —> 195% Coors 12.1% 122% 12.2% 14.1% 13.6% AmBev 21.1% 28.7% 805% wa AB 259% 64% 278 708% | iterbrew «283.3% 12% = «210% 20 Heneken «1
Slide 21: Stronger Overall Financial Profile Provides for Long-Term Success
Stronger Overall Financial Profile Provides for Long-Term Success Targeted investments in support of key brands — Increased focus and support for Coors Light in Canada — Enhanced marketing and support of Molson Canadian in the US system Renewed investments in product innovations - Aspen Edge, Marca
Slide 22: Revenue Growth Opportunities
Revenue Growth Opportunities Canada + Unleash Coors Light; redirect dollars from Canadian Light to Canadian + Support value entry to regain share and drive volume savings + Utilize the ARC technology from UK to drive on-premise listings USA * Continue to support Coors Light in developmental regions,
Slide 23: Synergies Are a Major Value Driver
Synergies Are a Major Value Driver Expected Savings % of Pro Forma (ussm) Cost Base Brewery Network Optimization $60 1.1% Procurement Savings 43 08 SGBA 40 08 Best In Class Savings 12 02 Organizational Design 10 0.2 Other 10 0.2 3.3%
Slide 24: Tim Wolf
Tim Wolf MOLSON @)
Slide 25: Financially Compelling Combination
Financially Compelling Combination Combined enterprise value of approximately US$8.4B US$6.0B in pro forma last twelve months net revenue and US$1.0B in pro forma last twelve months EBITDA pre-synergies Pro forma free cash flow* in excess of US$700M Strengthened financial position with meaningful de
Slide 26: Transaction Summary
Transaction Summary Company Name * Molson Coors Brewing Company Transaction Overview | * Combination of Molson and Coors through a merger-of-equals transaction Consideration * Stock-for-stock exchange (tax-free to holders of Molson in Canada and to holders of Coors in US) Exchange Ratio * 360 Coors
Slide 27: Current Structures
Current Structures Molson Stock Class A Non-Voting Total Economic Wlsn rate son a as ase nae 22.4M shares 106.9M shares 129.3M shares Coors Stock Class A-Voting B — Non-Voting Total Economic nox ee io oe Sy eh ce po é She 37.6M shares 38.8M shares 1.3M shares
Slide 28: Transaction Parameters
Transaction Parameters 1 Voting Share of Coors 4. Non-Voting Share of Coors US-Based Canada-Based 1 Voting Share of Molson vial 1 Non-Voting are of Molson OF
Slide 29: Pro Forma Share Exchange
Pro Forma Share Exchange Molson Shareholders Exchange Ratio Molson Coors Shares 360x Coors Shareholders Voting (Class A) Non-Voting (Class B)
Slide 30: Pro Forma Molson Coors Ownership Profile
Pro Forma Molson Coors Ownership Profile Other 38% Voting Trust 5% Noted Other Trust 62% Eo] 4.1M shares 81.3M shares
Slide 31: Voting Rights and Governance
Voting Rights and Governance Molson and Coors control groups to have comparable voting rights Voting Trust to be established with equal representation between Coors family and Eric Molson’s holding company Current Molson public Class B voting shareholders hold balance of voting rights Balanced Board
Slide 32: Last Twelve Months Pro Forma Income Statement
Last Twelve Months Pro Forma Income Statement Combined (USSM) Molson Coors _Pre-synergies Net 1,867 4,096 EBIT 362 321 673 848 Margin 18.8% 7.8% 11.3% 14.2% EBITDA 425 569 904 1,169 Margin 22.8% 13.9% 16.7% 19.6% Net income" 175 179 364 468" Free cash flow” 360 347 707 882 AnD omhange reo 125 ++ Get
Slide 33: Pro Forma Balance Sheet
Pro Forma Balance Sheet (ussm) Molson Coors Combined Cash $16.2 $27 $43.7 Total current assets $328.6 $1,010.3 $1,338.9 PP&E 780.9 1,513.2 2,294.1 Total assets $3,002.2 $4,4915 $7,493.7 Total current liabilities $783.2 $1,126.2 $1,909.4 Total debt 867.2 1,253.9 2121.1 Minority interests 105.5. 277 1
Slide 34: Leo Kiely
Leo Kiely MOLSON @)
Slide 35: Molson Coors — A Key Strategic Step
Molson Coors — A Key Strategic Step Value Creation Critical Mass + Transaction unlocks = - shareholder value through US$175M of merger synergies + Experienced management team can deliver upon key objectives Creates top-5 brewer with global scale and diversity Strong cash flow and balance sheet for f
Slide 36: Searchable text section of graphics
Searchable text section of graphics shown above M olson Coors Brewing Company Reshaping the Competitive Brewing Landscape July 22, 2004 Leo Kiely Daniel J. O’Neill Tim Wolf President and President and Chief Financial Officer Chief Executive Officer Chief Executive Officer Coors Brewing Company Coors