Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Barclays Global Consumer Staples Conference 2016
36 slides from Molson Coors Beverage's conference presentation, Sep 7, 2016
Slide 1: Molson Coors Brewing Company Barclays Global Consumer Staples Conference
M O L S O N C O O R S B R E W I N G C O M PA N Y B A R C L AY S G L O B A L C O N S U M E R S TA P L E S C O N F E R E N C E SEPTEMBER 7, 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 SEPTEMBER 7, 2016
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 MAURICIO RESTREPO, CFO, MOLSON COORS • Strategies to grow profit, cash, total shareholder return Q&A 4
Slide 5: 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 6: 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 7: 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 8: A Strong Record of Shareholder Returns
A STRONG RECORD OF SHAREHOLDER RETURNS OUTPERFORMED THE S&P500 OVER 1, 3 AND 5 YEAR HORIZONS T O T AL S H AR E H O L D E R R E T U R N T AP S H AR E S 5 YEAR 170% 3 YEAR 126% 1 YEAR 58% • Brand-led revenue and TAP profit growth • Cash generation • Cash and capital allocation, underpinned by PACC 8 T
Slide 9: Our Strategic Framework – MCBC Brew House
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 9
Slide 10: 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 11: Molson Coors: 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 12: Enhanced Commercial Capabilities Will Drive Top and Bottom Line 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 13: 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 14: Insert Coors Banquet Commercials
Insert Coors Banquet Commercials
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 US #1 US Craft Brand #1 US Shandy Brand EUROPE #1 UK Craft Brand #1 Irish Craft Brewery CANADA 16
Slide 17: Accelerating Our Focus on Insights & Digital
A C C E L E R AT I N G O U R F O C U S O N I N S I G H T S & D I G I TA L BUILDING STRONGER CONSUMER CONNECTIONS INSIGHTS DIGITAL • Embed global segmentation model • New Global Digital Centre of Expertise Team • Sharpened portfolio strategy • Digital Experts now placed in all key • Distinctive brand
Slide 18: Accelerating Our Innovation Agenda
A C C E L E R AT I N G O U R I N N O VAT I O N A G E N D A BUILDING STRONGER CONSUMER CONNECTIONS INNOVATION • New Global Innovation Centre of Expertise Team • White spaces for Innovation • Enterprise projects, in flight • Leverage MillerCoors approach • Best of Both Processes & Tools 18
Slide 19: 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 • Net Promotor Score (NPS) as primary metric • Voted #1 supplier by Tamarron Survey in the US • Best rated supp
Slide 20: 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 21: Mauricio Restrepo, Global CFO
MAURICIO RESTREPO GLOBAL CFO M O L S O N C O O R S B R E W I N G C O M PA N Y SEPTEMBER 7, 2016
Slide 22: 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 22
Slide 23: The PACC Model
T H E PA C C M O D E L 23
Slide 24: 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 25: 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 25
Slide 26: Consistent Financial Performance Even in Tough Times
CONSISTENT FINANCIAL PERFORMANCE EVEN IN TOUGH TIMES… UNDERLYING PRETAX INCOME(1) ($ millions) $1000 $904 $865 $865 $821 $832 $800 $600 $430 $439 $400 $200 $0 2011 2012 2013 2014 2015 1H 2015 1H 2016 Up 2% in first half 2016. (1) Non-GAAP underlying pretax income is calculated by excluding special a
Slide 27: Cost Reductions Help to Drive Top Line and Bottom Line
COST REDUCTIONS HELP TO DRIVE TOP LINE AND BOTTOM LINE CUMULATIVE ANNUALIZED COST SAVINGS(1) ($ 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 28: 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 29: Focus on Paydown 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 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) Commitment to maintaining investment-grade debt ratings. (1) Pro forma net debt/underlying EBITDA. Non-GAAP underly
Slide 30: 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 Will revisit dividend policy once deleveraging is well underw
Slide 31: 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. 31
Slide 32: 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 (non-cash) Plus: Annual transaction-related cash tax $1.15 benefits Equals: Underlying transa
Slide 33: 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 A L I G N M E N T, V I S I B I L I T Y & A C C O U N T A 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 34: 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 34
Slide 35: 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 36: Molson Coors Brewing Company Barclays Global Consumer Staples Conference
M O L S O N C O O R S B R E W I N G C O M PA N Y B A R C L AY S G L O B A L C O N S U M E R S TA P L E S C O N F E R E N C E SEPTEMBER 7, 2016
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