Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q1 2020 Earnings Presentation
16 slides from Molson Coors Beverage's earnings presentation, Apr 30, 2020
Slide 1: Q1 2020 Results & Outlook
Molson Coors Beverage Company Q1 2020 Results & Outlook April 30, 2020
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 “believe,” "aims," “expect,” “intend,” “anticipate,” “project,” “will,” “outlook,” and similar expressions identify forward-looking statemen
Slide 3: Chief Executive Officer Gavin Hattersley
Chief Executive Officer Gavin Hattersley
Slide 4: Progress on Revitalization Plan in Q1
Progress on Revitalization Plan in Q1 Pre-coronavirus Progress on org restructure Generating savings Momentum with iconic Innovation in the above core brands premium segment 4
Slide 5: Q1 Performance Main Drivers
Q1 Performance Main Drivers Coronavirus Milwaukee Incident 5
Slide 6: Coronavirus Impact
Coronavirus Impact • Material impact on the business On vs. Off Premise On vs. Off Premise Europe North America (2019 NSR) (2019 NSR) • Withdrew financial outlook for 2020 and beyond • Protect cash and liquidity 17% 50-55% On Premise On Premise position • Significant hit, particularly in Off Premise
Slide 7: Protecting our employees
Steps We’re Taking 1. Additional health and safety measures in breweries and distribution centers Protecting our 2. Cleaning, sanitization, hygiene, social distancing, temperature screenings, employees cloth facemasks, and hand sanitizer 3. Paid leave policy and program 4. Thank you pay incentive fo
Slide 8: Supporting Our Communities Across North America and Europe
Supporting Our Communities Across North America and Europe 8
Slide 9: Shifting How We Market
Shifting How We Market 1. Shifting media & creative to today’s consumer reality 2. Strong presence behind our big, most trusted brands to stay top of mind 3. Re-think playbooks for new product launches 4. Build on strength in economy 5. Accelerating e-commerce 9
Slide 10: Mitigating Short-Term Risk, Position for Long-Term
Managing the Business Moving Forward Financial actions we’ve taken… Reducing 2020 capital expenditures by approximately Mitigating Short-Term Risk $200M vs initial expectations Substantially reducing discretionary spending Scrutinizing G&A including limiting new hiring and furloughs & Examin
Slide 11: Chief Financial Officer Tracey Joubert
Chief Financial Officer Tracey Joubert
Slide 12: Consolidated Q1 2020
Consolidated Q1 2020 KEY TAKEAWAYS • Challenged global financial volumes and NSR NSR/HL - Brand Volume Basis UNDERLYING EBITDA (c ons tan t c u rrenc y) (c ons tan t c u rrenc y) (c ons tan t c u rrenc y) coronavirus related sales returns • Decreased NSR/HL driven by sales returns, as well as negati
Slide 13: North America Q1 2020
North America Q1 2020 KEY TAKEAWAYS • Decreased NSR/HL driven by keg sales NSR NSR/HL - Brand Volume Basis UNDERLYING EBITDA (c ons tan t c u rrenc y) (c ons tan t c u rrenc y) (c ons tan t c u rrenc y) returns and negative mix, offset by pricing • Decline in financial volumes driven by under-shipme
Slide 14: Europe Q1 2020
Europe Q1 2020 KEY TAKEAWAYS • Lower NSR/HL caused by unfavorable NSR NSR/HL - Brand Volume Basis UNDERLYING EBITDA (c ons tan t c u rrenc y) (c ons tan t c u rrenc y) (c ons tan t c u rrenc y) geographic mix, partially offset by net positive pricing • Decline in financial and brand volumes -13.4% -
Slide 15: Outlook
Outlook Desire to maintain our investment grade Near-term volume headwinds rating Financial actions we’ve taken… We expect Europe to be materially Reducing 2020 capital expenditures by approximately impacted due to high On-Premise business $200M We expect negative impacts to North America, but to
Slide 16: Questions & Answers
Questions & Answers MOLSON
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