Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Q2 2017 Earnings Presentation
18 slides from Molson Coors Beverage's earnings presentation, Aug 2, 2017
Slide 1: 2nd Quarter 2017 Earnings Results
M O L S O N C O O R S B R E W I N G C O M PA N Y 2 n d Q U A R T E R 2 0 1 7 E A R N I N G S R E S U LT S AUGUST 2, 2017
Slide 2: Forward Looking Statements
F O R WA R D L O O K I N G S TAT E M E N T Forward Looking Statements 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,”
Slide 3: Molson Coors Overview
MOLSON COORS OVERVIEW FIRST CHOICE FOR CONSUMERS AND CUSTOMERS AGENDA Deliver top- and bottom-line performance • Solid growth in net sales, brand volume, underlying EBITDA and EPS • Exceeded goals for cash generation • Reduced debt >$522 million • On track to deliver: 2017 plans, cost savings target
Slide 4: First Choice Agenda - Consolidated
F I R S T C H O I C E A G E N D A - C O N S O L I D AT E D DRIVING TOP- AND BOTTOM-LINE PERFORMANCE NSR/HL WW BRAND VOLUME Underlying EBITDA (USD, constant currency) (millions HL) (USD millions, constant currency) +2.3% 26.4 $805.3 +5.7% +1.7% $111.10 $109.27 25.8 $761.8 Q2'16 Q2'17 Q2'16 Q2'17 Q2'1
Slide 5: First Choice Agenda - United States
F I R S T C H O I C E A G E N D A - U N I T E D S TAT E S F L AT V O L U M E I N 2 0 1 8 , V O L U M E G R O W T H I N 2 0 1 9 Underlying EBITDA STR VOLUME Domestic NSR/HL ($ millions) +1.0% +7.9% $619.4 -1.9% $574.0 Q2'16 Q2'17 Q2'16 Q2'17 Q2'16 Q2'17 STW Volume -0.4% Includes -40 bps of FET adjust
Slide 6: Continue to Grow Share in Premium
CONTINUE TO GROW SHARE IN PREMIUM R E J U V E N AT E & R E S T O R E R E S P E C T F O R O U R A M E R I C A N L A G E R S • Gained segment • Gained segment • On its way to an 11th share for 9 share for 11 consecutive year of consecutive consecutive growth quarters quarters + Above Premium Portfolio
Slide 7: First Choice Agenda - Canada
FIRST CHOICE AGENDA- CANADA REIGNITING GROWTH Underlying EBITDA BRAND VOLUME NSR/HL (millions, constant currency) (Local Currency) $111.2 -7.2% -1.3% +2.3% $103.2 Q2'16 Q2'17 Q2'16 Q2'17 Q2'16 Q2'17 -9.7% reported Financial Volume -2.6% KEY TAKEAWAYS 1 Lower underlying EBITDA 2 Gained market share,
Slide 8: First Choice Agenda - Europe
FIRST CHOICE AGENDA- EUROPE P O R T F O L I O P R E M I U M I Z AT I O N & B U I L D I N G A S T R O N G B A S E Underlying EBITDA BRAND VOLUME NSR/HL (millions, constant currency) (Local Currency) $126.2 +21.3% +11.5% $104.0 +3.7% Q2'16 Q2'17 Q2'16 Q2'17 Q2'16 Q2'17 +13.8% reported Financial Volume
Slide 9: First Choice Agenda - International
F I R S T C H O I C E A G E N D A - I N T E R N AT I O N A L ABOVE-PREMIUM PORTFOLIO FOCUS IN HIGH GROWTH MARKETS Underlying EBITDA BRAND VOLUME NSR/HL (millions) ($) +43.2% +0.8M -5.5% Q2'16 Q2'17 -$0.9 -$1.7 Q2'16 Q2'17 Q2'16 Q2'17 Financial Volume +75.7% KEY TAKEAWAYS 1 Increased brand volume 2 C
Slide 10: Guidance Adjustments
GUIDANCE ADJUSTMENTS • 2017 International COGS/HL: mid-single-digit decrease • Underlying tax rate: top half of 24%-28% range • Cash pension contributions: $300-$320 million • $200 million additional, discretionary contribution to U.S. plan • Included in 2017 underlying free cash flow target • Part
Slide 11: Areas of Financial Focus
AREAS OF FINANCIAL FOCUS CASH GENERATION DELEVERAGE Underlying EBTIDA Underlying FCF NET DEBT (millions, constant currency) ($ millions) ($ billions) $805.3 +232% $586.7 $11.9 -$522M +5.7% $11.4 $761.8 $176.9 YTD Q2'16 YTD Q2'17 Q1'17 Q2'17 Q2'16 Q2'17 +4.2% reported 11 Note: 2016 earnings results a
Slide 12: Global Strategic Priorities
2 0 1 7 G L O B A L S T R AT E G I C P R I O R I T I E S DRIVE TOTAL SHAREHOLDER RETURNS • First Choice Culture - Embed Our Brew & Our Brewhouse • Execute Integration & Cost Savings Plan • Drive Global Commercial Excellence Capability– Top Line Growth • Accelerate International Performance • Product
Slide 13: U.S. Growth Priorities
U.S. GROWTH PRIORITIES Flat volume by 2018 Total volume growth by 2019 13
Slide 14: Canada Business Priorities
CANADA BUSINESS PRIORITIES TOP-LINE GROWTH COUPLED WITH COST EFFICIENCIES REIGNITING GROWTH REDUCING COST BASE SUPPLY CHAIN TRANSFORMATION 14
Slide 15: Europe Top- and Bottom-Line Growth Priorities
EUROPE TOP- AND BOTTOM-LINE GROWTH PRIORITIES GROWING ABOVE PREMIUM ENERGIZING CORE BRANDS AND CRAFT FIRST CHOICE FOR CUSTOMERS 2012 2016 On Premise 6th 2nd Off Premise – Multiple 15th 1st Grocers Off Premise – Impulse 12th` 1st 15
Slide 16: International Priorities
I N T E R N AT I O N A L P R I O R I T I E S F O C U S E D O N D R I V I N G G R O W T H O F F A S T R O N G P L AT F O R M 16
Slide 17: Molson Coors Overview
MOLSON COORS OVERVIEW FIRST CHOICE FOR CONSUMERS AND CUSTOMERS Deliver top- and bottom-line performance • Solid growth in net sales*, brand volume, underlying EBITDA and EPS • Exceeded goals for cash generation • Reduced debt >$522 million as we a focus on deleverage • Remain resolute on: • PACC • C
Slide 18: Molson Coors
MOLSON COC AUGUST 2, 2017
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