Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Coors Adolph — Merger or Acquisition (September 2004)
26 slides from Molson Coors Beverage's merger presentation, Sep 9, 2004
Slide 1: Reshaping the Competitive Brewing Landscape
Molson Coors Brewing Company Reshaping the Competitive Brewing Landscape September 8, 2004 Tim We Chief Coors
Slide 2: Forward Looking Statements
Forward Looking Statements ‘This presentatenindudes “oraard ooking statemert wihin fe messing of he US. federal sacuiies lave, Fonvardloshing statement are commeely dented by such teims and phases as "woul may’, wd, "expect of “expected to” and othe teens wih suat meaning indicat posible tute vents
Slide 3: Molson and Coors: The Right Combination
Molson and Coors: The Right Combination + North America’s oldest brewer + Established in 1873 by Adolph Coors + 13 largest brewer in the world + 8” largest brewer in the world + Leading position in Canada; + Leading brands in US and UK beer growth opportunity in Brazil markets nced Man ing Brands
Slide 4: 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 beer markets + Builds platform for participating in the continuing brewing industry consolidation + Maintains the uni
Slide 5: 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 6: 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 7: Propels Molson Coors into 'Top 5'
Propels Molson Coors into ‘Top 5’ Volume (i Fy 215 Carlsberg!” Scottish & Newcastle Grupo Modelo Coors ‘Asati Tsingtao FEMSA Kirin ‘Molson Foster's Soutce: Company Reports — tea fal year 1) Represent total pro tata ohume ae tated in Caeberg2008 AnnualReport
Slide 8: 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 eS IKEYSTONETCE sd GiNADINN Med ay fe Bets Oo nO + Distribution and/o
Slide 9: 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 Bus) Micanaaa Ou (1) i
Slide 10: 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 + Detead a brewing industry EBITOAIN USM Source Company estimates Molson Coors is positione: the world
Slide 11: With Leading Positions in Key Markets
With Leading Positions in Key Markets All Brands Top Brand Canada ; ait “ 43% United Kingdom ost a 21% United States $ i *® 11% Brazil aise) #8 11% ‘Source Datamonitor and Brenets of Canada @eD2)
Slide 12: Enhanced Financial Strength...
Enhanced Financial Strength... Pro Forma LTM Molson Coors (USSM) Net sales $6,036 = Operating income 694 : Margin 19.5% : EBITDA 996 Margin 16.5% Free cash flow" 723 *Defined as EBITDA CAPEX CADIUSD exchange rate of 1.34 Excludes potential synergies LT (ast twelve months) ended June 20, 2004 nancial
Slide 13: .. And Balanced Board & Management Team
.. And Balanced Board & Management Team ec Independent eel Independent Molson Coors Independent Office of Synergies & Integration | Geo Molson Vice Chairman CEO Coors Independent Neill L Kiely Independent Molson Coors Family Family Coors Family
Slide 14: Management Team With Proven Track Record
Management Team With Proven Track Record Office of Synergy and Integration DANIEL J. OWEILL Vice Chairmar Synergies and integration ERIC MOLSON 0 KIELY Chairman hier Executive Officer * 126 years of consumer industry experience * History of realizing operational efficiencies and controlling cost whi
Slide 15: Synergies
Synergies % of Pro Forma (USsM) Cost Base Brewery Network Optimization $60 1.1% Procurement Savings 43 08 SGRA 40 08 Best in Class Savings 12 0.2 Organizational Design 10 0.2 Other 10 0.2 Total $175 3.3% Molson Coors has identified a clear path to substantial synergies MOLSON @) Cooks
Slide 16: Profit Impact and Estimated Timing
Profit Impact and Estimated Timing Impact on EBITDA of 100% Synergies Expected Timing of Synergies usst 500m os ~ — #5 sum eo 8 $900 4% $600 seo $200 $0 inion aay Re rme Syades later ews vert vers Coors 50% of synergy capture to occur in the first 18 months MOLSON @) Cooks
Slide 17: Significant Opportunity for Margin Expansion
Significant Opportunity for Margin Expansion EBITDA to Net Sales Molson Coors Without With 100% Cys9 CYOO CYO1 CYO2_ CYS ineSies Synergies 183% 189% 209% 229% 228% 165% —> 195% Coors 121% 12.2% 122% 141% 19.6% AmBev 211% 28.7% 30.6% 36.9% + [35.4% AB 259% 264% 276% © 262% [286%] Inerorew «28.3% 21.2
Slide 18: 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 19: 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 20: Financially Compelling Combination
Financially Compelling Combination Synergies drive profits and value creation 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 Enhance
Slide 21: Transaction Summary
Transaction Summary Company Name * Molson Coors Brewing Company Transaction Overview = Combination of Molson and Coors through 4 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 vo
Slide 22: 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 23: Last Twelve Months Pro Forma Income Statement
Last Twelve Months Pro Forma Income Statement (USsM) Molson Coors Net sales 1,890 4146 BIT 365 331 696 871 Margin 19.3% 8.0% 11.5% 14.8% EBITDA 413 585 998 4,173 Margin 21.8% 14.1% 16.5% 19.4% Net income 187 174 361 4750 Free cash flow" 348 3mT 725 900 Sabo emtane et 194 (Suerte 25% Eiches purchase
Slide 24: Pro Forma Balance Sheet
Pro Forma Balance Sheet (ussm) Molson Coors Combined Cash $108 $36.2 $47.41 Total current assets $367.6 $1,1285 $1,496.1 PP&E 7423 14110 2,153.3 Total assets 929312 $4532.0 $7,463.1 Total current liabilities $760.9 $1,175.9 $1,936.8 Total debt 840.6 1,142.4 1,982.7 Minority interests 93.5 298 123.2
Slide 25: 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 Enhanced position in consolidating global brewing industry MOLSON @) Creates top-5 brewer with gl
Slide 26: Searchable text section of graphics shown above
Searchable text section of graphics shown above Mol son Coors Brewing Company Reshaping the Competitive Brewing Landscape September 8 , 2004 Tim Wolf Chief Financial Officer Coors Brewing Company [LOGO] [LOGO] For ward Looking Statements This presentation includes “forward-looking statements” within
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