Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — CAGNY 2024
36 slides from Molson Coors Beverage's conference presentation, Feb 21, 2024
Slide 1: CAGNY 2024
CAGNY 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation release 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," "futur
Slide 3: Gavin Hattersley, Chief Executive Officer
Chief Executive Officer GAVIN HATTERSLEY 3
Slide 4: Molson Coors
MOLSON cS) COOR
Slide 5: You May Have Seen Headlines Like This…
You May Have Seen Headlines Like This… Sober October? Sales spike shows non-alcoholic beer, wine are on the drink menu year-round USA TODAY (October 2023) Title on dark blue It wasn’t just you: Beer brands have had a challenging 2023 as well, from consumer boycotts and sobering volumes to ‘stolen’ b
Slide 6: Beer Is Strong and Resilient
Beer Is Strong and Resilient U.S. beer volumes improved during 2023 , particularly in the fourth quarter Beer is growing share of total alcohol while wine and bottled spirits decline Note: Fourth quarter U.S. beer volumes based on internal estimates. Share statistic is sourced from Circana, FY2023.
Slide 7: And Light Beer Is Strong, Big and Stable
And Light Beer Is Strong, Big and Stable Light beer is ~50% of the $115 billion US beer industry 6X bigger than flavored-alcohol beverages, 7X bigger than hard seltzers & over 20X bigger than ready-to-drink spirits Title on dark blue Moderation is a competitive edge for beer vs. total alcohol Attrac
Slide 8: Our Global Footprint
Our Global Footprint 20% Global Net Sales Revenue 80% Americas EMEA & APAC 4th 19 Top Brands include: Carling, Staropramen and Madri. 26% largest beer major breweries Total company in the world across 10 countries Global Brand Top Brands include: ~100 +83M Volume Coors Light, Miller Lite and Blue Mo
Slide 9: Diversified Beverage Portfolio
Diversified Beverage Portfolio ADDED Up to 2019 Since 2019 CORE BRANDS ECONOMY ABOVE PREMIUM 9
Slide 10: Bringing Our 2023 Momentum Into 2024
Bringing Our 2023 Momentum Into 2024 Third consecutive year of revenue growth Second consecutive year of Underlying Pre- Tax Income Growth* Title on dark blue Delivered six years of growth above the mid-point of our long-term growth algorithm for underlying pre-tax income in just one year Leading al
Slide 11: Acceleration Plan Designed to Support Continued Growth
STRATEGIC Grow core power brand net revenue Acceleration STRATEGIC Aggressively Plan Designed premiumize our portfolio to Support STRATEGIC Scale and expand in Continued beyond beer Growth ORGANIZATIONAL Invest in our capabilities ORGANIZATIONAL Support our people, communities, and planet 11
Slide 12: Focused Innovation Yields Results
Focused Innovation Yields Results Number of Top Flavor New Products Innovation Reduced for 3 Years by Nearly 50% Running Brand Revenue from Innovation up 50% Note: NSR and number of products statistics based on internal data sources (FY2021 – FY2023). Top innovation brands sourced from Circana (FY20
Slide 13: Integrated Commercial Capabilities
Integrated Commercial Capabilities ALL Americas Geographies ALL Capabilities Precision Data Commercial & Analytics Insights Category Media & Consumer Management Engagement USA CANADA LATAM One Clear Set of Priorities Driving Effectiveness and Efficiency 13
Slide 14: Our Core Power Brands are Stronger than Ever
Our Core Power Brands are Stronger than Ever Growing revenue, volume, market share or all three Note: U.S. share change 2023 versus 2022 per Circana; Canadian share change per Beer Canada; EMEA&APAC share change per CGA Nielsen. 14
Slide 15: We've Built These Brands with Two Key Focus Areas
We’ve Built These Brands with Two Key Focus Areas Growing Share of Mind Expanding Physical Availability 15
Slide 16: Our Biggest Brands Are Growing as a Result
Our Biggest Brands Are Growing as a Result +0.82 U.S. core brand +0.75 absolute share growth of +10% in 2023 vs. 2021 +0.56 +0.54 +0.04 (0.15) (0.10) (0.20) (0.32) (0.27) (0.45) (0.46) 2019 2020 2021 2022 2023 2024 YTD Note: Figures presented represent dollar share change vs prior year. 2024 YTD is
Slide 17: Coors Light Grew More U.S. Volume Share Than Any Other Beer in 2023
Coors Light Grew More U.S. Volume Share Than Any Other Beer in 2023 Coors Light up over one full share point of volume in U.S. YTD Velocities year-to-date are over 14% higher than 2023 YTD Note: U.S. volume sales and velocity sourced from Circana. 17
Slide 18: Marketing Effectiveness
Marketing Effectiveness Ability to Manage +80% +50% Media of Spend in Spend in Digital Near Real- Time +60% in Addressable Channels Note: Statistics are sourced via internal media data. 18
Slide 19: Category Captain for ~50% of U.S. Retail Volume
Gained Category Captain 6-7% More Shelf for ~50% of U.S. Space for Coors Light Retail Volume and Miller Lite in Fall 2023 400+ Independent U.S. Distributors Are a Competitive Advantage Note: MCBC Proprietary Space Reporting Data. 19
Slide 20: Title on dark blue
Title on dark blue Note: MCBC Proprietary Space Reporting Data. 20
Slide 21: Premiumizing Our Global Portfolio
Premiumizing Our Global Portfolio Above Premium as a Percentage of Global Net Sales Revenue* ~+6% 0.35 +4% 0.3 0.25 0.2 ~33% 0.15 27% Target 0.1 23% 0.05 0 2019 2023 Medium Term * Represents percentage of total consolidated net sales revenue on a brand volume basis; excludes contract brewing, factor
Slide 22: Fastest-growing major beer brand in the UK by value and volume
Fastest-growing major beer brand in the UK by value and volume Only three years old and already a >1 million hectoliter brand Expanding thoughtfully, launching in Canada and selected markets in Europe in 2024 Source: Nielsen CGA 22
Slide 23: Simply Spiked more than doubled its volume in 2023
Simply Spiked more than doubled its volume in 2023 The top-performing innovation in the category for back-to-back years Intent on growing shelf space with a focused lineup of flavors Source: Volume and shelf space statistics are sourced via internal data. 23 Innovation statistics sourced from Circan
Slide 24: Our Growth Path is Clear
Our Growth Path is Clear Core brand momentum & 1 expected US space gains in 2024 Focused approach to premiumization 2 with fewer, better innovations Capabilities transformation underpins 3 our growth ambition 24
Slide 25: Tracey Joubert, Chief Financial Officer
Chief Financial Officer TRACEY JOUBERT 25
Slide 26: Our Long-Term Growth Objectives
Our Long-Term Growth Objectives FY24 L-T Annual Guidance Growth Algo Net Sales Revenue (constant currency basis) +LSD% +LSD% Underlying Income Before Income Taxes c (constant currency basis)* +MSD% +MSD% Underlying Earnings per Share* +MSD% +HSD% * * Represents non-GAAP financial measures. Constant
Slide 27: Margin Expansion Levers
Margin Expansion Levers Managing Our Cost Structure Pricing Opportunities Commodities Hedging Program: Typically hedge Opportunistic Insulates from Premiumization/ commodities approach large swings in Positive Mix Shifts over 1-3 years, utilizing commodities depending on the guardrails pricing commo
Slide 28: Balanced and Cohesive Approach to Capital Allocation
Balanced and Cohesive Approach to Capital Allocation Investing in Reducing Returning Cash the Business Net Debt to Shareholders Highly Cash Generative Business 28
Slide 29: 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 29
Slide 30: Reducing our Net Debt
Reducing our Net Debt Achieved long-term net debt to underlying EBITDA ratio* target of below 2.5x long-term Net Debt to Underlying EBITDA 4.8X 4.4X 3.8X 3.6X 3.5X 3.1X 2.9X 2.2X 2016 2017 2018 2019 2020 2021 2022 2023 * See the Appendix to find disclosure regarding reconciliations of these non-GAAP
Slide 31: Returning Cash to Shareholders
Returning Cash to Shareholders Dividends 7% 8% 12% $2 Billion $0.41 $0.44 Share Buyback Plan $0.38 Announced in $0.34 October 2023 With an Authorized Term of 5 Years* 12/15/2021 12/15/2022 12/15/2023 3/15/2024 * The repurchase authorization does not obligate the company to acquire any particular amo
Slide 32: Questions & Answers
o O Questions @ Answers © MOLSON coo
Slide 33: Molson Coors
MOLSON COORS cama 33
Slide 34: Net Debt to Underlying EBITDA Reconciliation
Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 12/31/2023 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 911.8 397.1 514.9 1,020.1 928.2 1,594.5 714.8 684.8 Add
Slide 35: Underlying Income (loss) Before Income Taxes Reconciliation
Underlying Income (loss) Before Income Taxes Reconciliation In millions 12/31/2023 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 1,252.5 (62.5) 1,239.0 (643.9) 479.9 1,359.8 1,383.2 Adjustments to arrive at underlying: Goodwill
Slide 36: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. ("U.S. GAAP"), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segme