Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Investor Day (June 2016)
97 slides from Molson Coors Beverage's investor day presentation, Jun 8, 2016
Slide 1: Molson Coors Brewing Company Annual New York Investor/Analyst Meeting
M O L S O N C O O R S B R E W I N G C O M PA N Y A N N U A L N E W Y O R K I N V E S T O R / A N A LY S T M E E T I N G JUNE 8, 2016
Slide 2: Mark Hunter, President & CEO
MARK HUNTER PRESIDENT & CEO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 3: Forward Looking Statement
F O R WA R D L O O K I N G S TAT E M E N T 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 express
Slide 4: Today's Agenda
T O D AY ’ S A G E N D A MARK HUNTER, CEO, MOLSON COORS • Introductions, corporate overview, strategic focus and growth opportunities BUSINESS UNIT PRESENTATIONS • Gavin Hattersley, CEO, MillerCoors • Stewart Glendinning, CEO, Molson Coors Canada • Simon Cox, CEO, Molson Coors Europe • Kandy Anand,
Slide 5: Molson Coors Heritage
M O L S O N C O O R S H E R I TA G E B U I LT O N C E N T U R I E S O F FA M I LY B R E W I N G C R A F T S M A N S H I P FREDERICK MILLER ADOLPH COORS 1824-1888 1847-1929 5
Slide 6: Molson Coors Today
M O L S O N C O O R S T O D AY $6.8 BILLION IN REVENUE AND $1.3 BILLION IN EBITDA WORLDWIDE NET UNDERLYING BEER VOLUME SALES (1) PRETAX(2) 5% 2% 19% 28% 37% 28% 22% 13% 48% 53% UNITED STATES (42%) EUROPE 45% CANADA INTERNATIONAL MARKETS (1) Excludes Corporate and Eliminations from the total. (2) Doe
Slide 7: Leading Market & Brand Positions
LEADING MARKET & BRAND POSITIONS #1 OR #2 IN MOST OF OUR MARKETS MARKET MARKET POSTIONS* BRAND POSITION* BRAND USA #2 #2 & #4 Canada #2 #2 & #4 UK #2 #1 Bulgaria #1 #1 Croatia #1 #1 Serbia #1 #1 Czech Republic #2 #4 Hungary #3 #2 Romania #3 #5 Bosnia #1 #1 Slovakia #3 #5 Montenegro #1 #1 We have our
Slide 8: A Focus on Delivering Growth & Long Term Shareholder Value
A FOCUS ON DELIVERING GROWTH & LONG TERM S H A R E H O L D E R VA L U E PA C C R E M A I N S K E Y D E C I S I O N D R I V E R • Investing behind core brands BRAND-LED • Driving share in above premium PROFIT GROWTH • Delivering value-added innovation • Commercial excellence PROFIT AFTER • Cost reduc
Slide 9: A Strong Record of Shareholder Returns
A STRONG RECORD OF SHAREHOLDER RETURNS OUTPERFORMED THE S&P500 OVER 1, 3 AND 5 YEAR HORIZONS TSR TAP SHARES 5 YEAR 163% 3 YEAR 120% 1 YEAR 40% • Brand-led revenue and 100 TAP profit growth 90 80 • Cash generation 70 60 • Cash and capital allocation, 50 underpinned by PACC 40 30 Jul Oct Jan Apr Jul O
Slide 10: Our Strategic Framework – MCBC Brewhouse
O U R S T R AT E G I C F R A M E W O R K – M C B C B R E W H O U S E DRIVING OUR FIRST CHOICE AMBITION 10
Slide 11: 2015 Highlights
2015 HIGHLIGHTS GAINING MOMENTUM AND BUILDING SCALE TRANSFORM & BUILD SCALE • MillerCoors definitive agreement • Successful equity launch in 2016 FUEL GROWTH DEVELOP GREAT PEOPLE • Underlying free cash flow • Enterprise engagement of $704 million rose 8 points • Delivered almost $65 million of savin
Slide 12: Acquiring MillerCoors & Miller International
A C Q U I R I N G M I L L E R C O O R S & M I L L E R I N T E R N AT I O N A L A UNIQUE AND GAME-CHANGING OPPORTUNITY FOR MOLSON COORS Consistent with Molson Coors’ ECONOMY IMPORT SPECIALTY CRAFT PREMIUM strategic vision Iconic American beer brands support global growth Drives substantial financial
Slide 13: Today vs. Tomorrow
M O L S O N C O O R S : T O D AY V S . T O M O R R O W D O U B L E S T H E S I Z E O F T H E C O M PA N Y TODAY TOMORROW PRO FORMA – 100% 42% OF MILLERCOORS OF MILLERCOORS 2015 Net sales $6.8 $11.2 BILLION BILLION 2015 Underlying EBITDA income $1.3 $2.3 BILLION BILLION 2015 Underlying operating inco
Slide 14: Enhanced Commercial Capabilities Will Drive Growth
E N H A N C E D C O M M E R C I A L C A PA B I L I T I E S W I L L D R I V E TOP AND BOTTOM LINE GROWTH A C Q U I S I T I O N A C C E L E R AT E S C O M M E R C I A L A G E N D A COMMERCIAL EXCELLENCE FRAMEWORK CONSUMER EXCELLENCE CUSTOMER EXCELLENCE Building extraordinary brands Delighting customer
Slide 15: Accelerating Global Brands
A C C E L E R AT I N G G L O B A L B R A N D S BUILDING AN EXTRAORDINARY BRAND PORTFOLIO GLOBAL GLOBAL BRANDS TRADEMARK BRANDS • Sharpened Portfolio Strategy NATIONAL CHAMPIONS • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability
Slide 16: Leading Global Craft Portfolio
LEADING GLOBAL CRAFT PORTFOLIO #1 CRAFT BRAND IN MOST OF OUR CORE MARKETS • #1 CRAFT BREWER in the US with Tenth and Blake • #1 CRAFT BRAND in the US with Blue Moon • #1 SHANDY in the US with Leinenkugel’s • #1 CASK ALE in the UK with Doom Bar • #1 CRAFT BRAND in Ireland with Franciscan Well • LEADI
Slide 17: Accelerating Insights, Innovation & Digital
A C C E L E R AT I N G I N S I G H T S , I N N O VAT I O N & D I G I TA L BUILDING STRONGER CONSUMER CONNECTIONS INSIGHTS INNOVATION DIGITAL • Embed global • New Global Innovation • New Global Digital Centre segmentation model Centre of Expertise Team of Expertise Team • Sharpened portfolio strategy
Slide 18: First Choice For Customers
FIRST CHOICE FOR CUSTOMERS S U P E R I O R C U S T O M E R E X P E R I E N C E A N D F R O N T L I N E R E L AT I O N S H I P S FSM ________ NPS • Relentless focus on Customer Experience across all functions • Standardize NPS as primary metric • Fully deploy Field Sales Management (FSM) and Net Prom
Slide 19: Building A Bigger And Better Business
BUILDING A BIGGER AND BETTER BUSINESS A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H COMMERCIAL EXCELLENCE FRAMEWORK CONSUMER EXCELLENCE CUSTOMER EXCELLENCE Building extraordinary brands Delighting customers GLOBAL FSM ________ INNOVATION BRANDS NPS CUSTOM INS
Slide 20: Gavin Hattersley, CEO, MillerCoors
G AV I N H AT T E R S L E Y CEO, MILLERCOORS JUNE 8, 2016 20
Slide 21: MillerCoors Growth Imperative
M I L L E R C O O R S G R O W T H I M P E R AT I V E Flat by 2018 Total volume growth by 2019 New mindset: Disciplined, Decisive, Accountable. 21
Slide 22: Consumer Excellence – Accelerate Portfolio Transformation
CONSUMER EXCELLENCE – A C C E L E R AT E P O R T F O L I O T R A N S F O R M AT I O N 2008 2015 • Grow Above Premium Above 6.5 Premium 10.4 • Take share in American Light Lagers Premium • Mitigate decline 55.9 Light in Economy 56.7 Premium Regular 5.8 4.4 Economy 31.8 28.5 Percent of Total STR Volum
Slide 23: Consumer Excellence – Grow Above Premium
CONSUMER EXCELLENCE – GROW ABOVE PREMIUM E X PA N D C R A F T P R E S E N C E W I T H C O R E B R A N D S A N D M & A 20+ years of Growing double digits M&A continuous growth 23
Slide 24: Consumer Excellence – Grow Above Premium
CONSUMER EXCELLENCE – GROW ABOVE PREMIUM F U E L F M B M O M E N T U M T H R O U G H A D D I T I O N A L I N N O VAT I O N MillerCoors has the #1 share of FMBs in the country. 24
Slide 25: Redd's Franchise
CONSUMER EXCELLENCE – GROW ABOVE PREMIUM F U E L F M B M O M E N T U M T H R O U G H A D D I T I O N A L I N N O VAT I O N +45.8% 2013 2014 2015 Redd’s Franchise -8.8% +3.4% 2013 2014 2015 2013 2014 2015 Mike’s Hard Franchise Ritas Franchise Redd’s outgrew Mike’s Hard and Ritas franchises two years
Slide 26: Henry's
CONSUMER EXCELLENCE – GROW ABOVE PREMIUM F U E L F M B M O M E N T U M T H R O U G H A D D I T I O N A L I N N O VAT I O N Henry’s – #1 in the Hard Soda category. Source: Nielsen, w/e 5/21. 26
Slide 27: Roll Henry's TBD
• Roll Henry’s “TBD”
Slide 28: Take Share In American Light Lagers
CONSUMER EXCELLENCE – TA K E S H A R E I N A M E R I C A N L I G H T L A G E R S Miller Lite/Coors Light Best STR Trends volume 0.5 since 0 Q4 2012 -0.5 -1 -1.5 -2 -2.5 Growth -3 for 3 of Q1 Q2 Q3 Q4 Q1 last 6 2015 2015 2015 2015 2016 quarters Coors Light and Miller Lite can grow at the same time. 2
Slide 29: Take Share In American Light Lagers
CONSUMER EXCELLENCE – TA K E S H A R E I N A M E R I C A N L I G H T L A G E R S Miller Lite brand rejuvenation Coors Light distinctive identity 29
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Slide 31: Consumer Excellence – Economy
CONSUMER EXCELLENCE – ECONOMY S TA B I L I Z E L O S S E S B Y F I N D I N G N E W WAY S T O D E L I V E R VA L U E • Build preference with loyal economy consumers and others • Find new ways to deliver value – liquid & equity • Right packs, right place MHL positioning is connecting with millennials
Slide 32: Customer Excellence
CUSTOMER EXCELLENCE CHANGING THE GAME – BETTER TOOLS, SOLUTIONS, C A PA B I L I T I E S • Expanding • Doubled focus and • Stepping up commercial Building with Beer investment in chain, capabilities, improving to off-premise increasing captainships execution Advantage BRANDS DISTRIBUT OR INNOVATION S
Slide 33: Positioned To Achieve Growth
POSITIONED TO ACHIEVE GROWTH B U I L D I N G M O M E N T U M , D E L I V E R I N G R E S U LT S MillerCoors Non-GAAP Underlying Net Income MillerCoors STR Volume ($ millions)(1) 1400 +1.9 pts since Q2 2015 -1 -1.5 1200 -2 1000 -2.5 800 -3 -3.5 600 Q1 Q2 Q3 Q4 Q1 2008 2015 2015 2015 2015 2015 2016 St
Slide 34: Stewart Glendinning, CEO, Molson Coors Canada
S T E WA R T G L E N D I N N I N G CEO, MOLSON COORS CANADA JUNE 8, 2016
Slide 35: Canada Business Is Driving Transformation
C A N A D A B U S I N E S S I S D R I V I N G T R A N S F O R M AT I O N W H I L E S TA B I L I Z I N G E A R N I N G S TRANSFORMING THE CANADA UNDERLYING PRETAX (excl. Miller and Modelo) (CAD$ millions)(1) BUSINESS TO MEET SHIFTING CONSUMER NEEDS 467 459 421 • Transformation agenda underway for 393
Slide 36: Expand Footprint
E X PA N D I N G F O O T P R I N T A C T I V E LY M O V I N G W I T H C O N S U M E R T R E N D S SEGMENT 2010 What’s new since 2014 Craft (National Expansion) Above-Premium Import Above Premium Domestic FMBs Cider Excludes discontinued Modelo and Miller Brands. 36
Slide 37: Growing Above Premium & Craft
GROWING ABOVE PREMIUM & CRAFT RESHAPING PORTFOLIO TO PURSUE AREAS OF GROWTH1 CRAFT VOLUME AP IMPORT VOLUME CIDER VOLUME +5.9% +19.0% +16.7% 2013 2014 2015 2013 2014 2015 2013 2014 2015 MCC growth in support of above premium & craft strategy. 1. Mad Jack was introduced in 2015. 37
Slide 38: Energizing Core Brands: Coors Light
ENERGIZING CORE BRANDS COORS LIGHT DIFFERENCE MAKERS DRIVING IMPROVED PURCHASE INTENT • Strengthening Communications • Improving Quality & Taste Perceptions • Recruiting Next Generation (LDA-24) • Points of Connection Pressure Leading Premium Category across the majority of metrics. 38
Slide 39: Energizing Core Brands: Coors Light
ENERGIZING CORE BRANDS COORS LIGHT • Best scoring ads in 5 years • Brand health and purchase intent showing improvement • LDA-24 adoption rates increasing • Field sales team incented on execution Brand Health & Purchase Intent showing improvements in Q1. Signs of younger consumer adoption. 39
Slide 40: Coors Light: Let's Go Raptors!
C O O R S L I G H T: L E T ’ S G O R A P T O R S ! D R I V I N G PA S S I O N & R E L E VA N C E 40
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Slide 42: Molson Canadian
ENERGIZING CORE BRANDS MOLSON CANADIAN DIFFERENCE MAKERS DRIVING IMPROVED PURCHASE INTENT • Accelerate Growth in Key Markets • Improving Quality & Taste Perceptions • Dominate Hockey in Every Channel • Relevance with New Drinker Group PI, Relevance and Quality Metrics ahead of key competitors. Leadi
Slide 43: Canadian: Anything For Hockey
CANADIAN: ANYTHING FOR HOCKEY ACHIEVED ALMOST 200 MILLION EARNED IMPRESSIONS 43
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Slide 45: Delivering Exceptional Quality
DELIVERING EXCEPTIONAL QUALITY FIELD SALES MANAGEMENT & NET PROMOTER SCORE FIELD SALES MANAGEMENT QUICK WINS THROUGH OPERATIONAL 1:1 RECOVERY • One year into implementation with over 250 front line users • Unlocks capacity to drive growth without incremental headcount NET PROMOTER SCORE (NPS) • Reve
Slide 46: Building Strong Partnerships
B U I L D I N G S T R O N G PA R T N E R S H I P S C A P TA I N C Y W I T H K E Y R E TA I L E R C U S T O M E R S 64% of category customer partnerships available with key retailers – highlights: • Winning LSG captaincy (AB,BC) LEADERSHIP IN CATEGORY (ON) • Launched consultation program: Education a
Slide 47: Using Less
USING LESS S AV I N G S F U E L I N G O U R B R A N D S A N D B O T T O M L I N E • Since 2013, we have CANADA G&A EXPENSE (CAD$MILLION) RIGHT SIZED, REDUCING HEADCOUNT by approximately 20% • G&A COSTS consistently driven LOWER • Lower G&A has allowed for INCREASED BRAND INVESTMENT, as well as provi
Slide 48: Investing Wisely
I N V E S T I N G W I S E LY A S S E T R E N E WA L , P R O D U C T I V I T Y G A I N , C O S T R E D U C T I O N • Vancouver brewery property sold • New BC and QC breweries under review • Expected significant cost improvements by 2020 EXISTING BREWERY BREWERY UNDER REVIEW NEW GREENFIELD BREWERY … a
Slide 49: Summary
SUMMARY • Right steps to set up the business for long-term success and growth • Considerable progress made in a short time • Keenly focused on improving core brand performance • Miller acquisition will improve portfolio breadth and unlock savings 49
Slide 50: Simon Cox, CEO, Molson Coors Europe
SIMON COX CEO, MOLSON COORS EUROPE JUNE 8, 2016
Slide 51: Strong Foundations With #1 Or #2 Positions
S T R O N G F O U N D AT I O N S W I T H # 1 O R #2 POSITION FOR MARKET & BRANDS IN MOST OF OUR MARKETS MARKET MARKET POSITIONS* BRAND POSITION/BRAND* UK #2 #1/ Czech Republic #2 #4/ Croatia #1 #1/ Serbia #1 #1/ Bulgaria #1 #1/ Hungary #3 #2/ Romania #3 #5/ Bosnia #1 #1/ Slovakia #3 #5/ Montenegro #
Slide 52: Since 2012, Europe Has Grown Earnings 24%
SINCE 2012, EUROPE HAS GROWN EARNINGS 24% I N A F L AT M A R K E T EUROPE UNDERLYING EARNINGS* STRATEGIES: +24% • Energizing core brands • Premiumising the portfolio 184.4 • Investing wisely into increased marketing 148.9 • First Choice for Customers focus * @ constant currency 2012 2015 *Non-GAAP u
Slide 53: Carling Segment Growth Will Accelerate
CARLING SEGMENT GROWTH WILL A C C E L E R AT E W I T H P R E M I E R L E A G U E CARLING UNVEILS OFFICIAL PARTNERSHIP WITH THE PREMIER LEAGUE Carling revealed as official beer partner of the Premier League until the end of the 2018/19 season 34.0% Market Share % - Mainstream Beer 33.0% 32.0% 31.0% 3
Slide 54: Ožujsko Continues Share Gains
O Z U J S K O ( C R O AT I A ) C O N T I N U E S S H A R E G A I N S A N D I N N O VAT I O N S D R I V E I N C R E M E N TA L T O P - L I N E G R O W T H LINE EXTENSIONS Core brands innovation OŽUJSKO SHARE IN CORE 45 43 41 39 37 35 2008 2009 2010 2011 2012 2013 2014 2015 54
Slide 55: Premiumisation Of Portfolio Continues At Pace
P R E M I U M I S AT I O N O F P O R T F O L I O C O N T I N U E S AT PA C E PREMIUM STAROPRAMEN BEER SALES VOLUME OUTSIDE CAGR 15% OF CZ CAGR 13% 2012 2013 2014 2015 2012 2013 2014 2015 55
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Slide 57: Creative Staropramen And Pravha Branding
C R E AT I V E S TA R O P R A M E N A N D P R AV H A BRANDING 57
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Slide 59: Craft Portfolio: UK's #1 Cask Brand And Ireland's #1 Craft Brewer
CRAFT PORTFOLIO: UK’S #1 CASK BRAND AND IRELAND’S #1 CRAFT BREWER NURTURE FRANCISCAN BUILD OUR DOOM BAR GROWTH WELL & INNOVATE ‘SIGNPOST’ BRANDS CAGR 23% SINCE 2011 ACROSS THE PORFOLIO DOOM BAR VOLUME GROWTH CAGR 23% 59
Slide 60: UK Cider Opportunity
U K C I D E R O P P O R T U N I T Y: C A R L I N G BRITISH CIDER & REKORDERLIG MCE CIDER MCE CIDER VOLUME NSR CAGR 132% CAGR 159% 2013 2014 2015 2013 2014 2015 60
Slide 61: Digital Agenda And Social Media
D I G I TA L A G E N D A A N D S O C I A L M E D I A DRIVE CONSUMER ENGAGEMENT 61
Slide 62: First Choice For Customers Taken To New Stage Of Maturity In UK
F I R S T C H O I C E F O R C U S T O M E R S TA K E N T O N E W S TA G E O F M AT U R I T Y I N U K NET PROMOTER SCORE IN No. 1 IN INDEPENDENT ON PREMISE Detractors Passives Promoters NPS 100% 100 80% 80 64 69 60% 61 60 37 40% 40 20% 20 0% 0 Q4 2012 Q4 2013 Q4 2014 Q4 2015 2012 2013 2014 2015 On Tr
Slide 63: Transferring UK Disciplines To Central Europe
TRANSFERRING UK DISCIPLINES TO C E N T R A L E U R O P E R E S U LT E D I N # 1 A C R O S S REGION NET PROMOTER SCORE MC CEE 54 CZE 57 WITH DETRACTORS SVK 65 DOWN 2%, HUN 52 AND PROMOTERS CRO 52 ROM 60 UP 3% VS. 2014 IN MCE BIH 49 SER 48 BUL 54 MNT 57 63
Slide 64: Summary
SUMMARY • Strong #1 or #2 positions in most markets • First Choice for Consumers • Core Brand strategy and focus • Premiumisation of portfolio – Staropramen, Coors Light, Cobra, Doom Bar, Craft, Cider and line extensions • First Choice for Customer competitive advantage in UK and accelerating in Cen
Slide 65: Kandy Anand, CEO, Molson Coors International
KANDY ANAND C E O , M O L S O N C O O R S I N T E R N AT I O N A L JUNE 8, 2016
Slide 66: 2016 Priorities
2016 PRIORITIES BUILD EXTRAORDINARY BRANDS OUR INTERNATIONAL BUSINESS IS FOCUSED ON TWO PRIORITIES IN 2016 1. Growing our core brands globally 2. Integrating the Miller International brands Driving international growth through above premium. 66
Slide 67: MCI Underlying Pretax Income
S T R O N G T R A C K R E C O R D O F P R E TA X I M P R O V E M E N T FUEL GROWTH MCI UNDERLYING PRETAX INCOME ($MILLIONS) (1) 2015 pretax impacted by China restructure and FX $0 -$5 -$10 -$15 -$20 -$25 -$30 -$35 2011 2012 2013 2014 2015 On track to reach 2016 profitability, net of FX and Bihar pro
Slide 68: Focus On Growth In Latin America
F O C U S O N G R O W T H I N L AT I N A M E R I C A G R O W I N G A B O V E P R E M I U M W I T H C O O R S TM LATIN AMERICA VOLUME +37% 2011 2012 2013 2014 2015 68
Slide 69: Strong Traction In Panama
G R O W I N G A B O V E P R E M I U M W I T H C O O R S TM S T R O N G T R A C T I O N I N PA N A M A Coors Light tripled top-of-mind score…Now leading position 69
Slide 70: Continued Momentum In Mexico
G R O W I N G A B O V E P R E M I U M W I T H C O O R S TM CONTINUED MOMENTUM IN MEXICO DRIVING COORS LIGHT EXPOSURE OVER 20 MILLION NBA fans and 10 MILLION baseball fans in Mexico 70
Slide 71: Successful Colombia Launch
GROWING ABOVE PREMIUM WITH COORS SUCCESSFUL COLOMBIA LAUNCH COORS LIGHT DISTRIBUTION INCREASED TO 16,000 OUTLETS 71
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Slide 73: Staropramen Ukraine Market Share
D R I V I N G S TA R O P R A M E N G R O W T H NEW VISUAL BRAND IDENTITY Staropramen Ukraine Market Share Record high market share Driving digital via YouTube in Russia/Ukraine – 4 million views. 73
Slide 74: Leveraging Commercial Excellence With Partners
LEVERAGING COMMERICAL EXCELLENCE WITH PA R T N E R S PANAMA DAILY SALES MEETING PERFORMANCE TRACKING 2015 Net Promoter Score improvement versus prior year. 74
Slide 75: Integrating Miller International Brands
I N T E G R AT I N G M I L L E R I N T E R N AT I O N A L B R A N D S BUILD SCALE AND ENTER NEW MARKETS COMBINED VOLUME FOR MILLER AND MCI IN TOP 13 PRIORITY MARKETS MCI Miller Int’l Adding the Miller brands will more than double our scale in Latin America. 75
Slide 76: Integrating The Miller International Brands
I N T E G R AT I N G T H E M I L L E R I N T E R N AT I O N A L B R A N D S BUILD SCALE AND ENTER NEW MARKETS MILLER INTERNATIONAL MOLSON COORS INTERNATIONAL OVERLAPPING MARKETS Exciting new markets in Latin American and Africa. 76
Slide 77: Drive First Choice And Profitability
D R I V E F I R S T C H O I C E A N D P R O F I TA B I L I T Y STRONG FOCUS ON BRANDS AND CUSTOMERS BUILD EXTRAORDINARY BRANDS • Invest behind Coors Light in Latin America • Drive Staropramen growth in Europe • Integrate Miller International brands DELIGHT CUSTOMERS AND PARTNERS • Continue to develo
Slide 78: Mauricio Restrepo, Global CFO
MAURICIO RESTREPO GLOBAL CFO, MOLSON COORS BREWING C O M PA N Y JUNE 8, 2016
Slide 79: Driving Growth Through Focus On Strategies And PACC Model
D R I V I N G G R O W T H T H R O U G H F O C U S O N S T R AT E G I E S A N D PA C C M O D E L 79
Slide 80: The PACC Model
THE PACC MODEL CHOICE FOR CONSUMERS 80
Slide 81: Driving Total Shareholder Return With PACC Model
D R I V I N G T O TA L S H A R E H O L D E R R E T U R N W I T H PA C C M O D E L • Investing behind core brands BRAND-LED • Driving share in above premium PROFIT GROWTH • Delivering value-added innovation • Commercial excellence PROFIT AFTER • Cost reductions CAPITAL CHARGE • Capital expenditure CA
Slide 82: Driving Total Shareholder Return With PACC Model
D R I V I N G T O TA L S H A R E H O L D E R R E T U R N W I T H PA C C M O D E L EARN MORE PROFIT AFTER CAPITAL CHARGE TOTAL USE LESS SHAREHOLDER RETURN (TSR) INVEST WISELY 82
Slide 83: Consistent Financial Performance Even In Tough Times
CONSISTENT FINANCIAL PERFORMANCE EVEN IN TOUGH TIMES… UNDERLYING PRETAX INCOME(1) ($ millions) $1000 $936 $904 $865 $865 $821 $832 $800 $600 $400 $200 $0 2011 2012 2013 2014 2015 2015 Adj.(2) Up 36% in 1st Quarter 2016. (1) Non-GAAP underlying pretax income is calculated by excluding special and oth
Slide 84: Steady, Strong EBITDA Despite FX And Contract Headwinds
S T E A D Y, S T R O N G E B I T D A D E S P I T E 2 0 1 5 FX AND CONTRACT HEADWINDS ($ millions) UNDERLYING EBITDA(1) $1600 $1,469 $1,471 $1,398 $1,331 $1400 $1,267 $1200 $1000 $800 $600 $400 $200 $0 2011 2012 2013 2014 2015 Pro-forma 2015: >$2.3 billion of Underlying EBITDA and >$1.6 billion of Un
Slide 85: Cost Reductions Help To Drive Top Line And Bottom Line
COST REDUCTIONS HELP TO DRIVE TOP LINE AND BOTTOM LINE CUMULATIVE ANNUALIZED COST SAVINGS(1) ($ millions) $1,434 $1,333 $1400 $1,195 $1200 $1,078 $958 $1000 $851 $800 $657 $600 $442 $331 $400 $185 $200 $81 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Over $1.4 billion of cumulative annu
Slide 86: Ongoing Cost Efficiencies Will Fuel Growth Investments
ONGOING COST EFFICIENCIES WILL FUEL GROWTH INVESTMENTS LONG-TERM SUSTAINABILITY • Captured almost $65 million of savings in 2015 (1) • Expect cost savings of $50-$70 million/year for at least the next 2 years(1) DRIVEN THROUGH EFFICIENCY AND EFFECTIVENESS • Canada Supply Chain and China Restructurin
Slide 87: Focus On Paying Down Debt
F O C U S O N PAY I N G D O W N D E B T NET DEBT / EBITDA 6x 5.3x 4.8x 5x Net debt reduced by +1.5 billion 4x 2.8 X 3x 2.3 X 1.7x 1.9x 2x 0.7 X 1x 0x 2011 2012 PF 2013 2014 2015 2015 PF (1) 2015 PF Adj (2) Commitment to maintaining investment grade debt ratings. (1) Total debt/underlying EBITDA. Non
Slide 88: Committed To Cash Returns Via Dividends
COMMITTED TO CASH RETURNS VIA DIVIDENDS DIVIDENDS PAID (ANNUAL PER SHARE) $2.0 $1.8 $1.64 $1.6 $1.48 $1.28 $1.4 $1.24 $1.28 $1.08 $1.2 $1.0 $0.92 $0.76 $0.8 $0.64 $0.64 $0.6 $0.4 $0.2 $0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Committed to cash returns via dividends. 88
Slide 89: Disciplined Cash Use
DISCIPLINED CASH USE CASH USE PRIORITIES Brand-led STRENGTHEN RETURN CASH to GROWTH Balance sheet shareholders OPPORTUNITIES Consistent return-driven criteria, anchored by PACC. 89
Slide 90: Strong Base, Driving TSR In 2015
STRONG BASE, DRIVING TSR IN 2015 2015 RESULTS • Remain focused on Portfolio transformation while strengthening our core brand positions PROFIT AFTER • Exceeded our cost savings targets CAPITAL CHARGE • Expanded underlying gross and pretax TOTAL margins globally SHAREHOLDER • Committed to annual divi
Slide 91: Transaction Related Report: EPS
T R A N S A C T I O N R E L AT E D R E P O R T I N G : E P S ENHANCING VISIBILITY P&L Item Per Share(1) Underlying After-Tax Income(2) $A Plus: Annual after-tax transaction-related $B(3) book amortization Plus: Annual transaction-related cash tax $1.15 benefits Equals: Underlying transaction-adjuste
Slide 92: Transaction Related Report: Cost Savings
T R A N S A C T I O N - R E L AT E D R E P O R T I N G : C O S T S AV I N G S I N C R E A S I N G V I S I B I L I T Y & A C C O U N TA B I L I T Y CURRENT STATE FUTURE STATE Molson Coors Annual cost savings All-in multi-year savings target • $50-$70 million/year for at least ________________________
Slide 93: Driving Total Shareholder Return With PACC Model
D R I V I N G T O TA L S H A R E H O L D E R R E T U R N W I T H PA C C M O D E L EARN MORE PROFIT AFTER CAPITAL CHARGE TOTAL USE LESS SHAREHOLDER RETURN (TSR) INVEST WISELY 93
Slide 94: Mark Hunter, President & CEO
MARK HUNTER PRESIDENT & CEO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 95: Building A Bigger And Better Business
BUILDING A BIGGER AND BETTER BUSINESS A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H COMMERCIAL EXCELLENCE FRAMEWORK CONSUMER EXCELLENCE CUSTOMER EXCELLENCE Building extraordinary brands Delighting customers GLOBAL FSM ________ INNOVATION BRANDS NPS CUSTOM INS
Slide 96: Our Strategic Framework – Build A Bigger, Better Business
O U R S T R AT E G I C F R A M E W O R K – B U I L D I N G A BIGGER, BETTER BUSINESS 96
Slide 97: Molson Coors Brewing Company Annual New York Investor/Analyst Meeting
M O L S O N C O O R S B R E W I N G C O M PA N Y A N N U A L N E W Y O R K I N V E S T O R / A N A LY S T M E E T I N G JUNE 8, 2016
Molson Coors Brewing Company — Investor Day (June 2016) on 6ix