Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Investor Day (October 2023)
21 slides from Molson Coors Beverage's investor day presentation, Oct 3, 2023
Slide 1: Strategy Day
L M O S ON • C 2023 OO RS • S Y • 2023 A TR A T E GY D Strategy Day
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects", "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefi
Slide 3: Tracey Joubert, Chief Financial Officer
L M O S ON • C 2023 OORS • S Y • A TR A T E GY D Chief Financial Officer TRACEY JOUBERT 3
Slide 4: Focused on Delivering Sustainable Growth
Focused on Delivering Sustainable Growth Long-term growth algorithm Revenue growth, combined designed to deliver net revenue Investment with multiple margin levers growth fueled by reinvestment expected to drive attractive across the business Considerations earnings growth Strong free cash flow gene
Slide 5: Built a Strong Foundation for Growth
Built a Strong Foundation for Growth Consolidated 2017 – 2019 FY23 2022 [CAGR] Guidance* Low-Single Digit High-Single High-Single Net Sales Revenue (constant currency basis) Decline Digit Growth Digit Growth Underlying Income before Income Taxes Low-Single Digit High-Single +23-26% (constant currenc
Slide 6: Introducing Our Long-Term Growth Objectives
Introducing Our Long-Term Growth Objectives L-T Annual Growth Algo Net Sales Revenue (constant currency basis) +LSD% Underlying Income Before Income Taxes (constant currency basis)* +MSD% Underlying Earnings per Share* +HSD% * See the Appendix to find disclosure regarding reconciliations of these no
Slide 7: Margin Expansion Levers
Pricing Opportunities MARGIN Premiumization / Positive Mix Shifts EXPANSION LEVERS Productivity and Cost Savings Note: Margin reflects Underlying Income before Income Tax margin and supports long-term growth algorithm assumption of bottom-line growth exceeding top-line growth. 7
Slide 8: Premiumizing Our Portfolio
Premiumizing Our Portfolio Above Premium as a Percentage of Global Net Sales Revenue* ~+5% 35% +5% 30% 25% 20% 15% ~33% 10% 23% 28% Target 5% 0% 2019 2022 Medium Term * Represents percentage of total consolidated net sales rev enue on a brand v olume basis; excludes contract brewing, factored brands
Slide 9: Realizing Productivity and Cost Savings
Realizing Productivity and Cost Savings INVESTMENTS IN CAPABILITIES: • Added capacity and capabilities around Successfully flavor production and co-packing implemented cost • Employing World Class Supply Chain savings plans from methodologies 2017-2022 • Expanded supplier base • Replaced breweries i
Slide 10: Managing Our Cost Structure
Managing Our Cost Structure COMMODITIES HEDGING PROGRAM: • Typically hedge commodities over 1-3 years, depending on the commodity • Opportunistic approach utilizing guardrails • Insulates from large swings in commodities pricing 10
Slide 11: Increasing Marketing Effectiveness & Efficiency
Increasing Marketing Effectiveness & Efficiency +30% 60.0% 50.0% 40.0% 30.0% 57% 20.0% 10.0% 27% 2019 2022 0.0% 2018 2022 Working Dollars Non-Working Dollars Not e: Digit al as a % of t ot al U .S. media spend Evolving strategy with increased digital Reduced percentage of spend on non-working market
Slide 12: Improved Optionality in Capital Allocation
IMPROVED OPTIONALITY IN CAPITAL ALLOCATION Investing in Reducing Returning Cash the Business Net Debt to Shareholders 12
Slide 13: Investing in Our Business
Investing in Our Business Golden Colorado Brewery Image (Molson Coors to provide) Golden, Colorado Brewery Modernization New State-of-the-Art Canada Brewery String of Pearls M&A Strategy 13
Slide 14: Reducing Our Net Debt
Reducing Our Net Debt Achieved net debt to underlying EBITDA ratio* of 2.5x by the end of Q2 2023, with target to be below 2.5x long-term Net Debt to Underlying EBITDA 4.8X 4.4X 3.8X 3.6X 3.5X 3.1X 2.9X 2.5X 2016 2017 2018 2019 2020 2021 2022 1H 2023 * See the Appendix to find disclosure regarding r
Slide 15: Returning Cash to Shareholders
Returning Cash to Shareholders HISTORICAL DIVIDENDS 12% 8% $0.41 $0.38 $0.34 12/15/2021 12/15/2022 9/15/2023 15
Slide 16: Returning Cash to Shareholders
Returning Cash to Shareholders HISTORICAL AUTHORIZED A NEW DIVIDENDS $2 BILLION SHARE REPURCHASE PLAN TO BE EXECUTED OVER NEXT 5 YEARS 12% 8% $0.41 $0.38 $0.34 • Intended for • Balanced and opportunistic cohesive approach implementation to shareholder value creation 12/15/2021 12/15/2022 9/15/2023 1
Slide 17: Driving Value Creation
Success of our Rev italization Plan sets a solid foundation for 1 future growth Recent U.S. momentum is not believ ed to be temporary and 2 reflects our efforts to deliv er sustainable top and bottom-line growth Driving Value 3 New Acceleration Plan is rooted in our ability to grow core power brand
Slide 18: Appendix
MOLSON COORS eanrery Appendix
Slide 19: Underlying Income (loss) Before Income Taxes Reconciliation
Underlying Income (loss) Before Income Taxes Reconciliation In millions 12/31/2022 12/31/2021 * 12/31/2020 * 12/31/2019* 12/31/2018* 12/31/2017* (U.S GAAP) Income (loss) before income taxes (62.5) 1,239.0 (643.9) 479.9 1,359.8 1,383.2 Adjustments to arriv e at underlying: Goodwill impairment 845.0 -
Slide 20: Net Debt to Underlying EBITDA Reconciliation
Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016* Current portion of long-term debt and short-term borrowings 397.1 514.9 1,020.1 928.2 1,594.5 714.8 684.8 Add: Long-term debt
Slide 21: Non-GAAP guidance measures note
Our guidance for Underlying Income Before Income Taxes and Underlying Earnings per Share are also non-GAAP financial measures that exclude or otherwise hav e been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. W hen we prov ide guidance for any of the v arious non-GA
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