Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Barclays Back-to-School Consumer Conference 2010
28 slides from Molson Coors Beverage's conference presentation, Sep 8, 2010
Slide 1: Molson Coors Brewing Company
Molson Coors Brewing Company Barclays Back‐to‐School Consumer Conference September 8, 2010
Slide 2: Peter Swinburn, Chief Executive Officer
Peter SSwinburn P i b Chief Executive Officer M l Molson Coors C Brewing B i CCompany 2
Slide 3: Forward-Looking Statements
Forward‐Looking Statements 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 sim
Slide 4: Today's Agenda
Today’s Agenda • Peter Swinburn, CEO, Molson Coors Strategic Focus Focus on Brand Building Driving D i i Innovation I i • Stewart Glendinning, CFO, Molson Coors Recent Financial Results Financial Strategies to Drive Long‐Term Shareholder Value • Closing Remarks • Q&A 4
Slide 5: Strategic Overview
Strategic Overview Drive sustainable, long‐term shareholder value: • Build and invest in portfolio of extraordinary brands • Drive innovation at a p packaging g g and brand level • Maximize the value of the business • Apply a rigorous, disciplined process to all our cash‐use decisions 5
Slide 6: Build & Invest in Portfolio of Extraordinary Brands
Build & Invest in Portfolio of Extraordinary Brands • Extend Coors Light Internationally Fast growing global brand Expansion into high h h growthh markets k – China, h Russia and Vietnam Leveraging global trend toward premium light segment Available in nearly 30 countries • Premium Premi m L
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Slide 8: Build & Invest in Portfolio of Extraordinary Brands
Build & Invest in Portfolio of Extraordinary Brands • Expand UK Portfolio Carling remains #1 beer in UK Rapidd success with h Cobra b Coors Light gaining momentum Introducing Blue Moon Adding excitement: packaging innovation • Improve Molson Trademark Brand Performance f in Canada d Leve
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Slide 10: Driving Innovation
Driving Innovation Molson Coors is focused on innovation: • Innovation = Consumer Value • Innovation = Differentiation • Increases drinker loyalty and adds excitement to the category • Provides competitive advantage • Grows brands and margins • Drives top line growth • Two main categories of innovat
Slide 11: Driving Innovation – Evolution of the Can
Driving Innovation – Evolution of the Can Consumer Insight Response Innovation • Drinkers said that beer in a • Design a can that protects can tasted metallic the beer from the metal • Drinkers said the can • Design larger opening for opening made for foamy smoother pours and less air beer when drin
Slide 12: Driving Innovation – Evolution of the Can
Driving Innovation – Evolution of the Can Coors Light Frost Brew Liner/VWM - All Cans - 52wk Rolling Frost Brew Liner - All Cans - 52wk rolling Since Launch there has been 17.8% Growth and 1.5 Million Barrels Incremental Volume 10,500,000. FBL 2006 FBL + Wide Mouth 2007 FBL + VWM 2008 FBL + VWM + CA
Slide 13: Driving Innovation – Molson M
Driving Innovation – Molson M Consumer Insight Response Innovation • Drinker desire for easier • Craft a full‐flavor, 4.9% drinking, mainstream beer ABV, lower carbonation within the portfolio beer • Little marketplace innovation • Develop new patent in beer (appeals to drinkers pending micro‐carbon
Slide 14: Driving Innovation – Molson M
Driving Innovation – Molson M Over 1 Million Cases of Molson M Shipped Since Launch Molson M Volume (HL) 60000 50000 40000 30000 20000 10000 Volume 0 2008 2009 YTD July 2010 14
Slide 15: Stewart Glendinning, Chief Financial Officer
Stewart Glendinning Chief Financial Officer Molson Coors Brewing Company 15
Slide 16: Financial Strategies Drive Long-Term Value
Financial Strategies Drive Long‐Term Value • Molson Coors business performance update • Financial strategies to drive sustainable, long‐term value for shareholders: Cost reduction programs Strategies S i to strengthen h our b balance l sheet, h generate substantial cash High‐return cash‐use pr
Slide 17: Performance Highlights – Past 12 Months
Performance Highlights – Past 12 Months • Soft U.S. industry volume, higher Canada brand investments • 2nd Q: Progress against our strategic priorities Global underlying 2nd Q after‐tax income(1) (2) +14.2% U.S. U S segment(3) underlying pretax income +14 +14.2% 2% Canada +6.7%, (‐3% in local
Slide 18: Molson Coors Cost Reduction Programs
Molson Coors Cost Reduction Programs Annual Cost Savings 2005 2006 2007 2008 2009 2010 Total (US$ millions) 1H RFG2 (‘10‐’12) ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ 31 31 Resources for Growth (‘07‐’09) ‐‐ ‐‐ 91 87 92 ‐‐ 270 Merger synergies (‘05‐’07) 59 66 55 ‐‐ ‐‐ ‐‐ 180 Pre‐existing programs (‘05‐’06) 22 38 ‐‐ ‐‐ ‐‐ ‐‐ 6
Slide 19: RFG2 – Three-Year Goal: $150 million
RFG2 – Three‐Year Goal: $150 million RFG2 Annual Cost Savings 2010 2011 2012 Total ((US$ millions)) Annual Delivery Targets 45 48 57 150 • RFG2 program: $150 million of new savings, savings 2010 2010‐2012 2012 • $31 million delivered in 1st H 2010 • Significant reductions in logistics, waste, utilit
Slide 20: MillerCoors Cost Reductions on Target
MillerCoors Cost Reductions on Target Annual Cost Savings 2H 1H 2009 2010 Total (US$ millions) 2008 2011 MillerCoors Synergies ‐ Delivered 28 245 116 ‐‐ 389 MillerCoors Synergies – Anticipated ‐‐ ‐‐ 61 50 111 Total 28 245 177 50 500 • On target to deliver $450 million of cumulative synergies by year
Slide 21: Future Cost Initiatives
Future Cost Initiatives • Cost savings critical for brand momentum and L‐T growth • Increased Canada and U U.K. K brand investments • U.S. brands: initial signs of improvement • Near term focus: deliver existing commitments • Example: NAB contract brew arrangement • Up to 1.5 million HL/year • Lever
Slide 22: Free Cash Flow Update
Free Cash Flow Update 2010 Underlying Free Cash Flow Goal: $760 million, +/‐ 10% Underlying Free Cash Flow (in US$ millions) 26 Weeks Ended June 26, 2010 U.S. U S GAAP: Net Cash Provided by Operating Activities $ 395.6 395 6 Less: Additions to properties (51.4) (1) Less: Investment in MillerCoors (6
Slide 23: Cash Use Priorities Drive Long-Term Value
Cash Use Priorities Drive Long‐Term Value • First Half 2010: Used free cash for seasonal working capital, to settle high‐risk Brazil indemnities, establish escrow for China JV, increase dividend • Potential high‐return cash uses Growth o oppo opportunities u es • Selectively considered and brand
Slide 24: Financial Performance, Strategies
Financial Performance, Strategies • Past 12‐months financial performance: Soft U.S. industry, higher Canada brand investments • Significantly improved financial performance Q2 Progress against our strategic priorities • Meet or exceed cost reduction goals – MCBC and MillerCoors Strong, disciplin
Slide 25: Peter Swinburn, Chief Executive Officer
Peter SSwinburn P i b Chief Executive Officer M l Molson Coors C Brewing B i CCompany 25
Slide 26: Molson Coors Brewing Company
Molson Coors Brewing Company We are committed to delivering sustainable, long‐term shareholder value and to becoming a top global brewer in profitability Diverse and extraordinary portfolio of brands, supported by marketplace innovation, and a growing international presence Exceptional team, foc
Slide 27: Q&A
Q&A 27
Slide 28: Molson Coors Brewing Company
Molson Coors Brewing Company Barclays Back‐to‐School Consumer Conference September 8, 2010
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