Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Barclays Back-to-School Consumer Conference 2011
25 slides from Molson Coors Beverage's conference presentation, Sep 7, 2011
Slide 1: Molson Coors Brewing Company
Molson Coors Brewing Company Barclays Back‐to‐School Consumer Conference September 7, 2011
Slide 2: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer Molson Coors Brewing Company 2
Slide 3: 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 simi
Slide 4: Today's Agenda
Today’s Agenda • Peter Swinburn, CEO, Molson Coors Introductions and strategic overview • Stewart Glendinning, CFO, Molson Coors Driving improved financial strength, performance, shareholder value • Closing Remarks • Q&A 4
Slide 5: A Focus on Total Shareholder Return
A Focus on Total Shareholder Return Returning Cash TOTAL M&A SHAREHOLDER Top‐line RETURN U Growth Emerging Markets Push Bottom‐line Growth Growth in Current Markets Building long‐term, sustainable shareholder returns through disciplined growth and capital allocation strategy 5
Slide 6: Growing Through Strategic Focus & Discipline
Growing Through Strategic Focus & Discipline M&A TOTAL SHAREHOLDER Top‐line RETURN Growth Emerging Markets Push Growth in Current Bottom‐line Growth Markets A strong commitment to grow the business 6
Slide 7: Investing in Brand & Portfolio Building
Investing in Brand & Portfolio Building • Strengthening premium portfolio • Expanding above‐premium portfolio US Canada UK 7
Slide 8: Innovation Driving Share & Price Gains
Innovation Driving Share & Price Gains CANADA U.S. UK U.K. 8
Slide 9: Cost Management = Profit & Cash Flow
Cost Management = Profit & Cash Flow Cost Savings 2005‐Q2 2011 MCBC & Mill C MillerCoors (42%) costt $897 million illi off annualized li d savings i reductions delivered Underlying U d l i After‐Tax Aft T Profit P fit 1H 2011 Molson Coors $313.2 million (+3%) U d l i Free Underlying F C Cash h Flow
Slide 10: Accelerate Push into Emerging Markets
Accelerate Push into Emerging Markets Target Attractive, High Growth Beer Markets Russia China Ukraine Japan Dominican Republic Mexico Spain India Vietnam 10
Slide 11: Explore Partner and M&A Opportunities
Explore Partner and M&A Opportunities • Three components to our M&A strategy 1. Small “fill‐in” acquisitions in current markets 2. Investing internationally (i.e. China and India JVs) 3. Larger M&A • Apply pp y a rigorous, g , disciplined p process p to all our cash‐use decisions • Requires a clear
Slide 12: Stewart Glendinning, Chief Financial Officer
Stewart Glendinning Chief Financial Officer Molson Coors Brewing Company 12
Slide 13: 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 Aug 30 Molson Coors S&P 500 The above graph compares Molson Coors cumulative total stockholder return with the Standard and Poor’s 500 Index. The graph assumes $10
Slide 14: Driving Profit in Challenging Times
Driving Profit in Challenging Times MCBC Underlying Pretax Income ($mm) +11% $800 +12% +20% ‐1% $600 +18% $400 $200 $0 2006 2007 2008 2009 2010 1st Half 2011 underlying pretax income: $378.3 $378 3 million, million +2% Non‐GAAP underlying income is calculated by excluding special and other non‐core
Slide 15: Strong Increase in Free Cash Flow
Strong Increase in Free Cash Flow MCBC Underlying Free Cash Flow ($mm) $1,000 $924 $800 $729 $750+ $600 $532 $557 $421 $400 $200 $ 00 $0 2006 2007 2008 2009 2010 2011 F Underlying free cash flow is defined as operating cash flow, plus asset sale proceeds, less capital spending and one‐time cash uses
Slide 16: Substantial Cost Reductions Provide Resources
Substantial Cost Reductions Provide Resources ($mm) $897 million of cost savings delivered since 2005 16
Slide 17: Strengthening Balance Sheet
Strengthening Balance Sheet 4.0x Net Debt/EBITDA 3.6x 30 3.0x 3.0x 3 0x 3.0x 2.8x 2.8x 2.0x 1.8x 1.6x 1.4x 09 0.9x 1.0x 0.6x 0.0x 2006 2007 2008 2009 2010 (1) S&P Reported Debt / EBITDA Net debt to EBITDA (1) Total debt less cash, divided by the sum of underlying pretax income, plus interest and dep
Slide 18: Returning Cash to Shareholders – Dividends
Returning Cash to Shareholders – Dividends Dividends Paid +14% Annual divvidends Paaid ($/share) (% increase in quarterly rate) 1.20 +16.7% 1.00 +20% 0 80 0.80 +25% 0% 0% 0.60 $0.64 $0.64 $0.76 $0.92 $1.08 $1.24 0 40 0.40 0.20 0 00 0.00 A 2006 2007 2008 2009 2010 2011 Est. Doubled in four yyears 18
Slide 19: More Cash Allocation to Shareholders – Buybacks
More Cash Allocation to Shareholders – Buybacks • New stock repurchase program • Up to $1.2 billion • Expected implementation: three‐years • Approach: Opportunistic, drive L‐T shareholder value • Increase cash returns, retain financial flexibility • Explore growth opportunities • Further strengthen
Slide 20: High-Return Growth Opportunities
High‐Return Growth Opportunities Track record of recent growth opportunities: • Cobra (UK), Granville Island (Canada), and Sharp’s (UK) All providing strong returns • Cobra India and China JV: Too early to call India: Completes global platform for high‐potential Cobra brand Si’hai China JV: pr
Slide 21: Driving Total Shareholder Return
Driving Total Shareholder Return • Goal: To drive total shareholder return through business performance, cash generation and efficient cash use Invest in brands b and innovation Aggressively reduce costs Use cash efficiently • Strengthen balance sheet • Yields: Stronger base for business growt
Slide 22: Peter Swinburn, Chief Executive Officer, Molson Coors
Peter Swinburn Chief Executive Officer, Molson Coors 22
Slide 23: A Focus on Total Shareholder Return
A Focus on Total Shareholder Return Returning Cash TOTAL M&A SHAREHOLDER Top‐line RETURN U Growth Emerging Markets Push Bottom‐line Growth Growth in Current Markets Building long‐term, sustainable shareholder returns through disciplined growth and capital allocation strategy 23
Slide 24: Q&A
Q&A 24
Slide 25: Molson Coors Brewing Company
Molson Coors Brewing Company Barclays Back‐to‐School Consumer Conference September 7, 2011
Molson Coors Brewing Company — Barclays Back-to-School Consumer Conference 2011 on 6ix