Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Investor Day (March 2012)
53 slides from Molson Coors Beverage's investor day presentation, Mar 6, 2012
Slide 1: Molson Coors Annual New York Analyst/Investor Meeting
Molson Coors Brewing Company Annual New York Analyst/Investor Meeting March 6, 2012
Slide 2: GLC Sizzle Reel
GLC Sizzle Reel
Slide 3: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer Molson Coors Brewing Company
Slide 4: Forward-Looking Statement
Forward-Looking Statement Forward-Looking Statements: This presentation may include 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 s
Slide 5: Agenda
Agenda • Peter Swinburn, CEO, Molson Coors Introductions, strategic overview and growth opportunities • Stewart Glendinning, CFO, Molson Coors Strategies to build financial strength, performance, total shareholder return • Closing Remarks • Q&A with Leadership Team Peter Swinburn, CEO, Molson
Slide 6: Molson Coors Growth Strategy
Molson Coors Growth Strategy M&A Emerging Markets PRIORITIES Growth 1. Invest Behind Our Power Brands 2. Deliver Value Added Innovation 3. Leverage Above-Premium Growth 4. Build Momentum in New Markets Growth in Current Markets 6
Slide 7: 1. Investing Behind Our Power Brands
1. Investing Behind Our Power Brands
Slide 8: Owning Ice Cold Refreshment - Coors Light
Owning Ice Cold Refreshment - Coors Light Super Cold Activation Multicultural Engagement Packaging Innovations 8 8
Slide 9: A Commitment to Great Taste & Innovation - Miller Lite
A Commitment to Great Taste & Innovation - Miller Lite Evolve Brand Messaging New Advertising Campaign Packaging Innovations Multicultural Engagement 9
Slide 10: Coors Light & Miller Lite Outperform
Coors Light & Miller Lite Outperform 10
Slide 11: Made from Canada - Molson Canadian
“Made from Canada” - Molson Canadian 11
Slide 12: Strengthening Molson Canadian Proposition
Strengthening Molson Canadian Proposition 12
Slide 13: Red Leaf & NHL Ads
Red Leaf & NHL Ads Zes MOLSON Coots SSS 13
Slide 14: Molson Canadian Success in 2011
Molson Canadian Success in 2011 THE HEAD THE HEART THE WALLET +8pts +3pts +19pts +11pts +15pts +6pts +4pts +17pts 50 46 45 40 35 35 32 31 30 27 24 25 24 25 23 20 21 19 20 17 17 15 13 10 7 5 0 Has a clean, Tastes better Celebrates A brand I Instantly Fits my A brand I Future crisp, fresh than other t
Slide 15: Molson Canadian Share Trend
Molson Canadian Share Trend 12.0 10.0 9.6 9.2 8.7 8.2 7.8 7.9 8.0 7.7 6.0 4.0 2.0 0.0 2005 2006 2007 2008 2009 2010 2011 Market Share (Percent) 15
Slide 16: Coors Light Canada Share Trend
Coors Light Canada Share Trend #1 #1 13.7 #1 Brand in Canada in 13.5 13.5 12.9 2010 and 2011 11.5 10.6 9.5 8.3 8.5 7.9 7.2 6.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 16
Slide 17: Energizing the UK's Number 1 Beer Brand
Energizing the UK’s Number 1 Beer Brand 1. BRILLIANT BASICS 2. OWN REFRESHMENT 3. DRIVE INNOVATION 4. ENGAGING COMMUNCATIONS 17
Slide 18: Building Carling's Aspirational Positioning
Building Carling’s Aspirational Positioning From Everyday… To A s p i r a t i o n a l 18
Slide 19: New Carling TV Ad
New Carling TV Ad Zes MOLSON Coots SSS 19
Slide 20: Carling Re-ignite Driving Performance
Carling Re-ignite Driving Performance CGA Strategy Market Data Nielsen Market Data 20
Slide 21: 2. Delivering Value Added Innovation
2. Delivering Value Added Innovation
Slide 22: Packaging Innovation Drives Excitement
Packaging Innovation Drives Excitement 22
Slide 23: Redefining Refreshment - Coors Light Iced T
Redefining Refreshment - Coors Light Iced T • Leverages #1 beer in Canada • Builds on Cold Refreshment equity • Brings news & innovation to core brand • Exciting new packaging formats • Price premium vs. Coors Light • Canada-wide launch in April Targeted to Reach New Beer Drinkers and Increase the O
Slide 24: Coors Light Iced T Ad
Coors Light Iced T Ad Zes MOLSON Coots SSS 24
Slide 25: Bringing Added Flavor & Sophistication to Carling
Bringing Added Flavor & Sophistication to Carling 25
Slide 26: The Beer That Got Beer Banned - Batch 19
The Beer That Got Beer Banned - Batch 19 26
Slide 27: 3. Leveraging Growth in Above Premium
3. Leveraging Growth in Above Premium
Slide 28: Biggest Craft Brewer in the US - Tenth & Blake
Biggest Craft Brewer in the US - Tenth & Blake 28
Slide 29: Canada Expands Above Premium Portfolio
Canada Expands Above Premium Portfolio BC AL SASK MAN PQ ATL ONT 29
Slide 30: Revitalizing UK Ales Portfolio
Revitalizing UK Ales Portfolio The Sharp’s Cask Portfolio Worthington’s Family Of Ales ‘Exceptional beers from our home ‘Ales Of Character From Grain To Glass’ in Rock, Cornwall brewed with passion, Heritage Hero Product delivered with style and enjoyed by all’ Lead National Brand Cask Lead Keg Lead
Slide 31: 4. Accelerating Growth in Emerging Markets
4. Accelerating Growth in Emerging Markets
Slide 32: Target High Growth Markets With Regional Synergy
Target High Growth Markets With Regional Synergy E.Europe Russia/Ukraine Carling & Coors Light China Europe Coors Light Focus Spain and JV / Sales force Export Japan Zima and Corona Latin America & Caribbean Coors Light India Cobra and Iceberg JV / Sales force 32
Slide 33: Meaningful Progress Over The Past Years
Meaningful Progress Over The Past 2 Years Total MCI Volume 1,400,000 • Volumes doubled to 1.2m HL 1,200,000 1,000,000 • Investment per HL has declined by over 20% Hectoliters 800,000 600,000 • Beginning to make significant contribution 400,000 to MCBC’s top-line growth 200,000 - • Two new JVs establ
Slide 34: Leveraging Coors Light Global Positioning in China
Leveraging Coors Light Global Positioning in China • World’s biggest beer market by volume, with profitability expected to increase over the next 5-10 years* • Growth rate in premium & mass premium segments expected to outperform broader beer category* • Coors Light has grown at a 20% CAGR the past
Slide 35: Tapping World's Fastest Growing Beer Market
Tapping World’s Fastest Growing Beer Market Indian Beer Market • Fastest growing beer market in the world • Per capita beer consumption expected to grow double digits over medium term Our Operations • 175,000-hectoliter brewery & 70 employees • Doubling capacity in 2012 • Initial key markets: Bihar,
Slide 36: Bringing UK's No. 1 Beer Brand to Ukraine
Bringing UK’s No. 1 Beer Brand to Ukraine • 2nd largest beer market in Eastern Europe • 8.5% CAGR for the past 5 years • Premium segment is performing extremely well • Partner has strong market position and owns biggest production plant in Europe • Carling volumes reached 62k HL, surpassing Carlsber
Slide 37: Carling Ukraine TV Ad
Carling Ukraine TV Ad Zes MOLSON Coots SSS
Slide 38: Key Priorities for Growth
Key Priorities for Growth Investing Delivering Leveraging Build Behind Value Growth in Momentum Power Added Above in New Brands Innovation Premium Markets 38
Slide 39: Stewart Glendinning, Chief Financial Officer
Stewart Glendinning Chief Financial Officer Molson Coors Brewing Company
Slide 40: Total Shareholder Return Ahead of the Market
Total Shareholder Return Ahead of the Market Index Total Shareholder Return 180 160 140 120 100 80 60 2005 2006 2007 2008 2009 2010 2011 Molson Coors S&P 500 The above graph compares Molson Coors cumulative total stockholder return with the Standard & Poor’s 500 Index. Assumes $100 was invested on D
Slide 41: Driving Profit in Challenging Times
Driving Profit in Challenging Times ($mm) MCBC Underlying Pretax Income +11% +3% $800 +12% +20% -1% $600 +18% $400 $200 $0 2006 2007 2008 2009 2010 2011 2011 income growth spread across base businesses Non-GAAP underlying income is calculated by excluding special and other non-core items from the ne
Slide 42: Cost Reductions Drive Investment and Profit
Cost Reductions Drive Investment and Profit ($mm) Cumulative Annualized Cost Savings $1,000 $958 $851 $800 $657 $600 $442 $400 $331 $185 $200 $81 $0 2005 2006 2007 2008 2009 2010 2011 $958 million of cost savings delivered since 2005 42
Slide 43: Future Performance: More Top-Line Driven
Future Performance: More Top-Line Driven • Aggressive innovation and initiative agenda in 2012 requires increased investment • Marketing spend as a percentage of top-line is broadly consistent with brand-led consumer products companies • Incentive compensation: profit and top-line growth • Profit co
Slide 44: Free Cash Flow Improved Over Time
Free Cash Flow Improved Over Time ($mm) MCBC Underlying Free Cash Flow $1,000 $924 $800 $729 $635 $600 $532 $557 $421 $400 $200 $0 2006 2007 2008 2009 2010 2011 Underlying free cash flow is defined as operating cash flow, plus asset sale proceeds, less capital spending and one-time cash uses, plus o
Slide 45: 2011 Underlying Free Cash Flow Drivers
2011 Underlying Free Cash Flow Drivers ($mm) 2011 Underlying Free Cash Flow: $635 Million, down 31% $1,000 (100) 15 7 29 $950 924 $900 (90) $850 $800 (58) $750 (41) $700 (40) $650 (11) 635 $600 $550 2010 Operating Depreciation Other One time Working CapEx Cash Paid Other Assets Underlying 2011 Under
Slide 46: 2012 Underlying Free Cash Flow Goal
2012 Underlying Free Cash Flow Goal 2012 Underlying Free Cash Flow Goal: $675 million, +/- 10% • Target 6% higher than 2011 • Driven by: Working capital timing • ~$40-50 million expected to benefit 2012 ~$35 million lower MCBC capital spending • Excluding 42% of MillerCoors ~$50-70 million hig
Slide 47: Strengthening Balance Sheet
Strengthening Balance Sheet 4.0x Net Debt/EBITDA 3.6x 3.0x 3.0x 3.0x 2.8x 2.8x 2.8x 2 2.0x 1.8x 1.6x 1.4x 1.0x 0.8x 0.6x 0.7x 0.0x 2006 2007 2008 2009 2010 2011 S&P Reported Debt / EBITDA Net debt to EBITDA1 (1) Total debt less cash, divided by the sum of underlying pretax income, plus interest and
Slide 48: More Cash Allocation to Shareholders
More Cash Allocation to Shareholders ($mm) FCF and Cash Returned to Shareholders $1,000 $924 $800 $729 $635 $600 $532 $557 $421 $400 $321 $228 $201 $200 $170 $139 $111 $115 $- 2006 2007 2008 2009 2010 2011 MCBC Underlying Free Cash Flow Cash Paid for Dividends Cash Used for Stock Buyback Key: Discip
Slide 49: Driving Total Shareholder Return
Driving Total Shareholder Return • Goal: Drive total shareholder return through business performance and optimal capital efficiency/structure • Invest in brands and innovation • Aggressively reduce costs • Drive top- and bottom-line performance • Future: Performance driven more by top-line • Optimiz
Slide 50: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer Molson Coors Brewing Company
Slide 51: Focus on Total Shareholder Return
Focus on Total Shareholder Return Returning Cash TOTAL M&A SHAREHOLDER Top-line RETURN Growth Emerging Markets Growth Bottom-line Growth Growth in Current Markets Building long-term, sustainable shareholder returns through disciplined growth and capital allocation strategy 51
Slide 52: Q&A
Q&A Molson Coors Brewing Company Annual New York Analyst/Investor Meeting March 6, 2012
Slide 53: Molson Coors Annual New York Analyst/Investor Meeting
Molson Coors Brewing Company Annual New York Analyst/Investor Meeting March 6, 2012
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