Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Barclays Back-to-School Consumer Conference 2012
30 slides from Molson Coors Beverage's conference presentation, Sep 5, 2012
Slide 1: Molson Coors Brewing Company Barclays Back-to-School Consumer Conference
Molson Coors Brewing Company Barclays Back‐to‐School Consumer Conference September 5, 2012
Slide 2: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer Molson Coors Brewing Company 2
Slide 3: Forward-Looking Statement
Forward‐Looking Statement 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
Slide 4: Today's Agenda
Today’s Agenda • Peter Swinburn, CEO, Molson Coors Introductions and strategic overview • Gavin Hattersley, CFO, Molson Coors Driving improved financial strength, performance and total shareholder return • Closing Remarks • Q&A 4
Slide 5: Current Landscape for Beer Industry
Current Landscape for Beer Industry Developed Markets Developing/Emerging Markets • Persistent macroeconomic challenges • Higher GDP growth rates than developed markets High unemployment for key beer drinkers • Growing middle classes Sluggish consumer confidence More disposable income Less d
Slide 6: A Disciplined Strategy for Growth & Scale
A Disciplined Strategy for Growth & Scale M&A Accelerate Growth in Developing Markets Maximize Growth and Profit in Developed Markets 6
Slide 7: Current Strategic Priorities
Current Strategic Priorities M&A STRATEGIC PRIORITIES Accelerate Growth in Build Momentum in Emerging Markets Developing Markets Integrate Molson Coors Central Europe Invest Behind Our Power Brands Maximize Growth and Profit in Developed Markets Deliver Value Added Innovation Leverage Abov
Slide 8: Investing Behind Our Power Brands
Investing Behind Our Power Brands 8
Slide 9: US – Coors Light, Miller Lite Outperform Segment
US – Coors Light, Miller Lite Outperform Segment New MillerLite Ad Campaign 9
Slide 10: Canada – Coors Light #1, Canadian Stabilized
Canada – Coors Light #1, Canadian Stabilized #1 Brand in Canada in 2010 and 2011 16.0 12.0 13.7 13.5 13.7 14.0 12.9 13.5 9.6 10.0 9.2 11.5 8.7 12.0 10.6 8.2 7.8 7.9 7.7 7.7 10.0 9.5 8.0 8.0 6.0 6.0 4.0 4.0 2.0 2.0 0.0 0.0 2005 2006 2007 2008 2009 2010 2011 1H 2012 2005 2006 2007 2008 2009 2010 2011
Slide 11: UK – Carling Facing Headwinds
UK – Carling Facing Headwinds Source: Internal data / BBPA Data to July 2012 11
Slide 12: Delivering Value Added Innovation
Delivering Value Added Innovation Adding News & Excitement Delivering New Options for Behind Core Brands Changing Preferences 12
Slide 13: Leveraging Success in Above Premium
Leveraging Success in Above Premium 13
Slide 14: Accelerating Growth in Developing Markets
Accelerating Growth in Developing Markets Central Europe E.Europe Czech Republic, Bosnia, Slovakia, Russia/Ukraine Hungary, Romania, Bulgaria, Serbia, Carling, Staropramen & Coors Light Croatia, Montenegro Staropramen, Bergenbier, Yellen, Kamenitza, Ozujsko, Niksicko, Borsodi China Coors Light
Slide 15: Pursuing Smart M&A Opportunities
Pursuing Smart M&A Opportunities • Focus on integration of Molson Coors Central Europe Capturing synergies Driving sales and innovation Maintaining margins • Focus on reducing debt No major acquisitions contemplated Pursuing pre‐acquisition leverage ratio • Small “tuck‐in” acquisitions and
Slide 16: Strong Business, Growth Opportunities
Strong Business, Growth Opportunities MOLSON COORS CENTRAL EUROPE Business Description Financial Snapshot 2 • A leading Central European brewer 2011A (US$, in millions) Volume (million HL) 13.3 • Brews and distributes market‐leading local Sales 940 brands out of nine regional breweries Underlying EB
Slide 17: Leading Brand Positions
Leading Brand Positions Country Flagship Brand Position Lead Brand Share Other MCCE Brands Montenegro #1 (1) 62%(1) Croatia #1 34% Serbia #1 32% Hungary #1 18% Bulgaria #1 15% Romania #4 (1) 7% (1) Czech Republic #5 7% Sources: 2011 data from Euromonitor Alcoholic Drinks 2012 and Molson Coors intern
Slide 18: Solid Macroeconomic Outlook for Region
Solid Macroeconomic Outlook for Region • The economies in Central Europe have become more stable and are on a growth trajectory –Seven consecutive quarters of GDP growth • The expected long‐term economic outlook for Central Europe markets is compelling –Long‐term growth drivers: per capita income gr
Slide 19: Strong Beer Market Growth Opportunity
Strong Beer Market Growth Opportunity • Central Europe markets grew faster than developed markets before the 2008 financial crisis • Strong relative beer volume growth expected in these markets over next five years • Beer consumption per capita is growing overall in Central Europe markets 2011‐2016
Slide 20: Gavin Hattersley, Chief Financial Officer
Gavin Hattersley Chief Financial Officer Molson Coors Brewing Company 20
Slide 21: Total Shareholder Return Ahead of the Market
Total Shareholder Return Ahead of the Market Total Shareholder Return 150 140 130 120 110 100 90 80 70 60 2006 2007 2008 2009 2010 2011 Aug 15 2012 Molson Coors S&P 500 The above graph compares Molson Coors cumulative total stockholder return with the Standard & Poor’s 500 Index. Assumes $100 was in
Slide 22: Driving Profit in Challenging Markets
Driving Profit in Challenging Markets ($mm) MCBC Underlying Pretax Income +3% +11% $800 +12% +20% ‐1% $600 +18% $400 +7% $200 $0 2006 2007 2008 2009 2010 2011 2012H1 2012 1st half 11% EPS growth driven by U.S., C. Europe, lower shares Non‐GAAP underlying income is calculated by excluding special and
Slide 23: Central Europe Acquisition Highlights
Central Europe Acquisition Highlights • Completed June 15, purchase price €2.7 billion ($3.4 billion) • Purchase multiple 10.8x 2011 underlying EBITDA • 2011 Central Europe pro forma results (US GAAP): Net sales of $940 million Underlying pretax income of $182 million Underlying EBITDA of $317
Slide 24: Central Europe Enhances Growth/Profit Profile
Central Europe Enhances Growth/Profit Profile 2011 Pro Forma Worldwide Beer Volume 2011 Pro Forma Underlying Operating Income1 2.0% 14.5% 39.5% 38.4% 46.0% 14.8% 7.7% 22.7% 14.5% 2011 Pro Forma Net Sales 1.6% 27.1% 41.6% MillerCoors 17.4% Central Europe UK 12.3% Canada 1 Does not include underlying
Slide 25: Balance Sheet/Cash Use Priority: Deleverage
Balance Sheet/Cash Use Priority: Deleverage 5.0x Debt/EBITDA 4.1x 2 4.0x 3.6x 3.0x 3.0x 2.8x 3.0x 2.8x 2.8x 2.9x 2.0x 1.8x 1.6x 1.4x 0.7x 1.0x 0.8x 0.6x 0.0x 2006 2007 2008 2009 2010 2011 Actual 2011 Pro Forma 1 S&P Reported Debt / EBITDA Net debt to EBITDA 1 Total debt less cash, divided by the sum
Slide 26: Increasing 2012 Underlying FCF Target
Increasing 2012 Underlying FCF Target ($mm) MCBC Underlying Free Cash Flow $1,000 $924 $800 $729 $750 $635 $600 $532 $557 $421 $400 $200 $0 2006 2007 2008 2009 2010 2011 2012F Underlying free cash flow is defined as operating cash flow, plus asset sale proceeds, less capital spending and one‐time ca
Slide 27: Driving Total Shareholder Return
Driving Total Shareholder Return Goal: Drive total shareholder return through business performance, cash generation, and optimal capital efficiency/structure Capital allocation priorities: 1. Brand‐led growth opportunities • Coors Light Iced T, Punch Top Can, Doom Bar, Central Europe acquisition 2.
Slide 28: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer Molson Coors Brewing Company 28
Slide 29: A Focus on Total Shareholder Return
A Focus on Total Shareholder Return Returning Cash TOTAL M&A SHAREHOLDER Top‐line Accelerate RETURN Growth Growth in Developing Markets Bottom‐line Growth Growth and Profit in Developed Markets Building long‐term, sustainable shareholder returns through disciplined growth and capital allocation stra
Slide 30: Q&A
Q&A Molson Coors Brewing Company Barclays Back‐to‐School Consumer Conference September 5, 2012
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