Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Q1 2019 Earnings Presentation
22 slides from Molson Coors Beverage's earnings presentation, May 1, 2019
Slide 1: Q1 2019 Earnings
MOLSON Cot Q1 2019 EARNINGS MAY 1, 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “anticipate,” “project,” “will,” “outlook,” and similar expressions identify forward-looking statements, whic
Slide 3: Mark Hunter, President and CEO
MARK HUNTER PRESIDENT AND CEO 3
Slide 4: First Quarter 2019
FIRST QUARTER 2019 NSR COGS/HL UNDERLYING EBITDA KEY TAKEAWAYS (constant currency) (constant currency) (constant currency) • Total constant currency revenue growth +0.6% +5.3% +0.2% • Strong NSR/HL growth constant currency • Solid EBITDA despite higher inflation Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 -
Slide 5: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE EARN MORE USE LESS INVEST WISELY BUILD BRAND LED EXTRAORDINARY DRIVE GROWTH BRANDS SYNERGIES OPPORTUNITIES AND COST STRENGTHEN STRENGTHEN SAVINGS BALANCE CUSTOMER EXCELLENCE SHEET INCREASE DRIVE DISRUPTIVE RETURN CASH TO PRODUCTIVITY SHAREHOLDER
Slide 6: Earn More
EARN MORE • Strong pricing across all business units • Miller Lite strengthening further and Coors Light U.S. premium light volume trend improvement • Global priority brands key driver of consolidated NSR increase • Above Premium 19.1% of Q1 2019 brand volume, versus 18.5% in Q1 2018 • Winning at re
Slide 7: Use Less
USE LESS ESTIMATED COST SAVINGS COST SAVINGS 2017-2019 2020-2022 2017-2019 $700 million COST SAVINGS PROGRAM $205 $450 million MILLION 2018E $240 million SAVINGS FROM • World Class Supply Chain 2.0 • Greenfield breweries • Global Business Services $255 • New IT & Procurement million initiatives • Mo
Slide 8: Invest Wisely
INVEST WISELY DEBT / EBITDA MARKETING SPEND 6x S&P 5.3x Moody's • Scaling investment behind 5.1x 5x 4.7x above premium brands 4.4x 4.4x 4.1x (e.g. Blue Moon, Peroni, 4x Sol, Staropramen) and Board intention remains reinstituting innovation 3x dividend payout- 2.2x 2.4x ratio in the range of • Increa
Slide 9: Tracey Joubert, Chief Financial Officer
T R AC E Y J O U B E RT CHIEF FINANCIAL OFFICER 9
Slide 10: First Quarter 2019
FIRST QUARTER 2019 NSR COGS/HL UNDERLYING EBITDA KEY TAKEAWAYS (constant currency) (constant currency) (constant currency) • Total constant currency revenue growth +0.6% +5.3% +0.2% • Strong NSR/HL growth constant currency • COGS/HL increase driven by commodity inflation, transportation costs, incre
Slide 11: United States
UNITED STATES Q1 2019 PERFORMANCE KEY TAKEAWAYS NSR COGS/HL UNDERLYING EBITDA • Total revenue growth • Strong price discipline +0.7% +5.9% +3.4% • Brand volume trends improved by 130 bps vs. Q4 2018 and 10 bps vs. 2018 • COGS/HL increase driven by commodity inflation, transportation costs, increased
Slide 12: Europe
EUROPE Q1 2019 PERFORMANCE NSR COGS/HL UNDERLYING EBITDA KEY TAKEAWAYS ( cons t a nt cur r e ncy ) ( cons t a nt cur r e ncy ) ( cons t a nt cur r e ncy ) • Strong revenue growth • Price increases and +4.4% +3.7% +2.0% favorable mix • Higher investment behind national champion brands and premiumizat
Slide 13: Canada
CANADA Q1 2019 PERFORMANCE NSR COGS/HL UNDERLYING EBITDA KEY TAKEAWAYS ( cons t a nt cur r e ncy ) ( cons t a nt cur r e ncy ) ( cons t a nt cur r e ncy ) • Brand volume (6.0%) -3.4% +6.3% -22.4% • Soft Canadian industry volume – estimate (5.0%) • NSR/HL +1.9% constant currency • Volume deleverage,
Slide 14: International
INTERNATIONAL Q1 2019 PERFORMANCE NSR COGS/HL UNDERLYING EBITDA KEY TAKEAWAYS ( cons t a nt cur r e ncy ) ( cons t a nt cur r e ncy ) ( U S D mi l l i ons , cons t a nt cur r e ncy ) • Brand volume (6.7%) -14.4% +2.0% • Easter shift • Unfavorable geographic $7.1 mix, shift to Mexico local production
Slide 15: Outlook
OUTLOOK 2019 CONSOLIDATED Mid-single digit percentage increase constant currency UNDERLYING COGS/HL ~$700M 2017-2019 COST SAVINGS $450M 2020-2022 2019 INTERNATIONAL Strong double digit percentage increase constant currency UNDERLYING EBITDA 2019 UNDERLYING FCF $1.4 billion +/- 10% 15
Slide 16: Mark Hunter, President and CEO
MARK HUNTER PRESIDENT AND CEO 16
Slide 17: Earn More: Commercial Excellence Drivers
EARN MORE : COMMERCIAL EXCELLENCE DRIVERS ENHANCED COMMERCIAL CAPABILITIES WILL DRIVE TOP & BOTTOM LINE BUILD EXTRAORDINARY STRENGTHEN CUSTOMER DRIVE DISRUPTIVE BRANDS EXCELLENCE GROWTH ENERGIZE CORE BRANDS EXPAND PORTFOLIO GROW ABOVE PREMIUM & CRAFT DIGITAL & E-COMMERCE BUILD GLOBAL BRANDS ACCELERA
Slide 18: Earn More: Build Extraordinary Brands
EARN MORE : BUILD EXTRAORDINARY BRANDS ENERGIZE CORE BRANDS GROW ABOVE PREMIUM AND CRAFT U.S. Premium Light Segment Share Change Q1 brand volume in the U.S. YoY (trading day adjusted) Q1 brand volume in the U.K. YoY Q316-Q119 (Nielsen) + strong double digits or better + upper single digits Coors Lig
Slide 19: Earn More: Strengthen Customer Excellence
EARN MORE : STRENGTHEN CUSTOMER EXCELLENCE UNITED STATES EUROPE RANKED #1 OVERALL 5 OUT OF 9 COUNTRIES NOW UK RANKED #1 FOR ON-PREMISE RANKED #1 FOR ON-PREMISE HAVE AN NPS SCORE OF 60+ #1 IN 4 OF THE 7 PERFORMANCE AREAS CANADA JOINT BUSINESS TEAMS DRIVING CATEGORY GROWTH 19
Slide 20: Earn More: Drive Disruptive Growth
EARN MORE : DRIVE DISRUPTIVE GROWTH EXPAND PORTFOLIO DIGITAL & E-COMMERCE “built by our customers for our customers” LIVE IN UK & HUNGARY PILOTS IN CROATIA AND ROMANIA IMPORTS ACCELERATE INTERNATIONAL GROWTH CIDER/FMBs TARGETING 180K PLACEMENTS FOR NEW AND YEAR TWO ITEMS NON-ALC DOMESTIC ABOVE PREMI
Slide 21: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE EARN MORE USE LESS INVEST WISELY BUILD BRAND LED EXTRAORDINARY DRIVE GROWTH BRANDS SYNERGIES OPPORTUNITIES AND COST STRENGTHEN STRENGTHEN SAVINGS BALANCE CUSTOMER EXCELLENCE SHEET INCREASE DRIVE DISRUPTIVE RETURN CASH TO PRODUCTIVITY SHAREHOLDER
Slide 22: Q&A
MOLSON Cot Q&A
Molson Coors Brewing Company — Q1 2019 Earnings Presentation on 6ix