Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors — Merger or Acquisition (April 2012)
15 slides from Molson Coors Beverage's merger presentation, Apr 3, 2012
Slide 1: Molson Coors to Acquire StarBev
MOLSON COORS TO ACQUIRE STARBEV Attractive Value Creation, Growth and Scale Opportunity April 3, 2012
Slide 2: 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 similar expressions identify
Slide 3: Focus on Total Shareholder Return
Focus on Total Shareholder Return Returning Cash M&A TOTAL SHAREHOLDER Top-line Emerging RETURN Growth Markets Growth Bottom-line Growth Growth in Current Markets Building long-term, sustainable shareholder returns through disciplined growth and capital allocation strategy 3
Slide 4: A Unique and Compelling Opportunity
A Unique and Compelling Opportunity Strategically sound, financially attractive and immediately transforms Molson Coors’ growth profile • Increases exposure to higher-growth markets with strong historical consumption trends • StarBev is a market leader with top-three positions in nine countries and
Slide 5: Transaction Details
Transaction Details • Definitive agreement The Offer • Unanimously approved by Molson Coors Board of Directors • €2.65 billion ($3.54 billion1) in cash and debt Total Purchase Price • Approximately 11x EBITDA • Expect to use combination of available cash, debt and convertible debt issued to seller •
Slide 6: StarBev Overview
StarBev Overview Business Description Sales Breakdown by Country (2011) 1 • A leading Central and Eastern 4% Czech Republic 10% European brewer 24% Romania 9% Serbia • Brews and distributes market-leading Croatia local brands out of nine regional 18% 14% breweries Hungary Bulgaria • Operational head
Slide 7: A Leader in Central & Eastern Europe
A Leader in Central & Eastern Europe Czech Republic Slovakia1 #2 StarBev #3 StarBev 16% market share 5% market share Market vol: 15.4 MhL Market vol: 3.9 MhL Romania Hungary #3 StarBev #3 StarBev Czech Republic 14% market share 23% market share Slovakia1 Market vol: 16.6 MhL Market vol: 6.2 MhL Hung
Slide 8: Macroeconomic Outlook for StarBev's Markets
Macroeconomic Outlook for StarBev’s Markets • The economies in CEE have stabilized and are on a growth trajectory Seven consecutive quarters of GDP growth • Long-term economic outlook for StarBev markets is compelling Long-term growth drivers: per capita income growth leading to expansion of mid
Slide 9: StarBev's Markets Have Attractive Growth Prospects
StarBev’s Markets Have Attractive Growth Prospects • StarBev markets grew faster than developed markets before the 2008 financial crisis • Strong relative beer volume growth is expected in StarBev markets over the next five years • Beer consumption per capita is growing overall in StarBev markets St
Slide 10: StarBev's Market Leading Brands
StarBev’s Market Leading Brands Country Flagship Brand Position Market Share Other StarBev Brands Czech Republic #5 7% Serbia #1 37% Croatia #1 33% Romania #4 7% Hungary #1 16% Bulgaria #1 15% (Burgasko) Montenegro #1 NA Source Euromonitor, Roland Berger, StarBev materials 10
Slide 11: Expected, Combined Molson Coors Summary
Expected, Combined Molson Coors Summary 1 2 1 Combined Geographic Canada 2% Czech Canada 2% UK Presence Republic 12% 4% US UK 9% Romania 27% (2011 24% MCI Revenue) 31% US 10% Serbia CEE MCI Croatia 48% 18% 14% Hungary 20% Bulgaria 42% 17% 21% Montenegro Volume (MhL) 48.43 13.33 61.7 MhL Net Revenue
Slide 12: Financially Attractive Transaction
Financially Attractive Transaction Earnings • Accretive to earnings in first full-year of operations • Superior returns – compelling use of capital Return on Capital • Comfortably meets return on capital criteria • Molson Coors maintains strong balance sheet with good liquidity Balance Sheet Impact
Slide 13: Integration and Operational Strategy
Integration and Operational Strategy • Plan to operate StarBev as its own separate business unit within Molson Coors • No change expected in ABI brands licensing in StarBev markets • Extract synergies through production efficiencies, procurement, systems and related areas • Significant upside and ru
Slide 14: A Unique and Compelling Opportunity
A Unique and Compelling Opportunity Strategically sound, financially attractive and immediately transforms Molson Coors’ growth profile • Increases exposure to higher-growth markets with strong historical consumption trends • StarBev is a market leader with top-three positions in nine countries and
Slide 15: Molson Coors
MOLSON