Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Barclays Global Consumer Staples Conference 2017
27 slides from Molson Coors Beverage's conference presentation, Sep 6, 2017
Slide 1: Barclays Global Consumer Staples Conference
BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE SEPTEMBER 6, 2017 1
Slide 2: Mark Hunter, President and CEO
MARK HUNTER PRESIDENT AND CEO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 3: Forward Looking Statements
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,” “will,” and similar expressions identify fo
Slide 4: Today's Agenda
TODAY’S AGENDA MARK HUNTER, CEO Introductions, company overview, strategic focus and growth priorities TRACEY JOUBERT, CFO Strategies to grow profit, cash, total shareholder return Q&A 4
Slide 5: Molson Coors Brewing Company: Attractive Profile to Drive Long-Term Value
MOLSON COORS BREWING COMPANY ATTRACTIVE PROFILE TO DRIVE LONG-TERM VALUE Leading global brewer with deep presence in highly profitable markets Extraordinary brand portfolio Iconic global and national brands Leading craft brands Clear First Choice agenda focused on top-line and bottom line-growth Lev
Slide 6: Molson Coors Today
MOLSON COORS TODAY INCREASED SCALE POST-MILLERCOORS ACQUISITION WORLDWIDE BRAND VOLUME Pro Forma 100% of Millercoors 4% (FY 2016) 23% Net Sales $11.0B WW Brand Volume 95M HLs 8% 65% Underlying EBITDA $2.4B United States Canada Europe International Markets 6
Slide 7: An Extraordinary Brand Portfolio
AN EXTRAORDINARY BRAND PORTFOLIO WITH A FOCUS ON PREMIUMIZATION GLOBAL PRIORITY BRANDS NATIONAL CHAMPIONS CRAFT & AP PORTFOLIO #1 CRAFT BREWER IN US #1 CASK ALE IN UK – Doom Bar #1 CRAFT BRAND IN US – Blue Moon #1 CRAFT BRAND IN IRELAND – Franciscan Well #1 SHANDY in US – Leinenkugel’s #1 CRAFT BRAN
Slide 8: Our Strategic Framework – MCBC Brewhouse
OUR STRATEGIC FRAMEWORK – MCBC BREWHOUSE DRIVING OUR FIRST CHOICE AMBITION AND CULTURE 8
Slide 9: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE USE LESS INVEST WISELY • Drive Top Line • Drive Synergies & • Deliver FCF Target Cost Savings • Energize Core, AP & • Pay Down Debt/Pay Craft • Increase Productivity- Dividends S
Slide 10: Driving Top-Line Growth
DRIVING TOP-LINE GROWTH THE ENTERPRISE GROWTH TEAM CONSUMER EXCELLENCE • Step change insight capability • Grow extraordinary global Brands • Launch breakthrough innovation • Establish digital leadership – B2B, B2C, E-Commerce • Invest in ventures • Scale ROMI model (Return on Marketing Investment) C
Slide 11: Driving Bottom-Line Growth
DRIVING BOTTOM-LINE GROWTH LEVERAGING OUR NEW GLOBAL SCALE SHARED SERVICES • Global center in Romania & North American center in Milwaukee • Lower costs & greater efficiency • More time and resources for commercial focus GLOBAL PROCUREMENT • Increased scale: $2 billion to $7.5 billion procurement bu
Slide 12: Building Momentum on Top- and Bottom-Line Results
BUILDING MOMENTUM ON TOP- AND BOTTOM-LINE RESULTS STRONG PERFORMANCE IN 2Q 2017 NSR/HL WW BRAND VOLUME UNDERLYING EBITDA (USD, constant currency) (millions HL) (USD millions, constant currency) 26.4 $805.3 $111.10 +1.7% +2.3% +5.7% $109.27 25.8 $761.8 Q2'16 Q2'17 Q2'16 Q2'17 Q2'16 Q2'17 -0.2% REPORT
Slide 13: US Growth Imperative
US GROWTH IMPERATIVE FLAT BY 2018, GROWTH BY 2019 CONSUMER EXCELLENCE • Continue growing share in Premium • Accelerate growth in Above Premium • Stabilize Economy to expand the beer category CUSTOMER EXCELLENCE • Expand Building with Beer • Continue improving field sales execution • Ranked #1 Suppli
Slide 14: Canada Growth Imperative
CANADA GROWTH IMPERATIVE TOP-LINE GROWTH COUPLED WITH COST EFFICIENCIES CONSUMER EXCELLENCE • Reenergize Coors Light and Molson Canadian • Accelerate share gains in Above Premium, Craft & FMBs • Expand Miller brands CUSTOMER EXCELLENCE • Accelerate field sales management impact • Embrace Building wi
Slide 15: Europe Growth Imperative
EUROPE GROWTH IMPERATIVE DRIVING UPSIDE POTENTIAL FROM A SOLID BASE CONSUMER EXCELLENCE • Energize core brands • Accelerate Above Premium and craft growth • Push harder into cider CUSTOMER EXCELLENCE 2012 2016 No. 1 in • Maintain and develop First Choice for On Premise 6th 2nd Customer reputation Of
Slide 16: International Growth Imperative
INTERNATIONAL GROWTH IMPERATIVE DRIVING GROWTH FROM A STRONG PLATFORM CONSUMER EXCELLENCE • Leverage global brand portfolio • Rapidly expand Blue Moon • Expand portfolio footprint CUSTOMER EXCELLENCE • Utilize global segmentation approach • Deliver world class in-outlet tools • Strengthen distributo
Slide 17: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE EARN MORE USE LESS INVEST WISELY USE LESS DRIVE TOTAL SHAREHOLDER RETURNS 17
Slide 18: Tracey Joubert, CFO
TRACEY JOUBERT CFO M O L S O N C O O R S B R E W I N G C O M PA N Y
Slide 19: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE USE LESS INVEST WISELY • Drive Top Line • Drive Synergies & • Deliver FCF Target Cost Savings • Energize Core, AP & • Pay Down Debt/Pay Craft • Increase Productivity- Dividends S
Slide 20: Positive Financial Performance
POSITIVE FINANCIAL PERFORMANCE STEP CHANGE IN SCALE, STRATEGIES TO GROW ($ millions) UNDERLYING EBITDA (1) $3,000 $2,500 $2,322 $2,383 $2,000 21.7% $1,469 $1,471 $1,500 $1,398 20.7% $1,267 19.8% 19.6% 19.5% $1,000 18.9% $500 $- 2011 2012 2013 2014 2015 PF 2016 PF 2011 2012 2013 2014 2015 PF 2016 PF
Slide 21: Cost Savings to Drive Growth and Margins
COST SAVINGS TO DRIVE GROWTH AND MARGINS $550 million Shared Services/ 20% $165 million IT/G&A 40% Supply Chain $210 million 40% Procurement $175 million 2017 2018 2019 Estimated Total Savings ~$350 MILLION ESTIMATED ONE-TIME COSTS TO DELIVER SAVINGS: • ~50% - ‘Non-Core’ Expense; excluded from under
Slide 22: $1.2 Billion +/- 10% for FY 2017
DELIVERING CASH TO DELEVERAGE, GROW RETURNS UNDERLYING FREE CASH FLOW TARGET: $1.2 BILLION +/- 10% FOR FY 2017 • Includes 2017 pension contributions of $300-$320 million • Expected cash tax benefits of more than $400 million in 2017 • NPV of cash tax benefits ~$2.6 billion Represents substantial ste
Slide 23: Committed to Paying Down Debt
COMMITTED TO PAYING DOWN DEBT S&P, MOODY’S DEBT / EBITDA 6x 5.3x 5.1x Net debt reduced by 5x 4.4x +1.5 billion 4.3x 4x 3.0x 3x 2.8x S&P 2.6x 2.4x 2.1x 2.2x Moody's 2x 1x 0x 2012 2013 2014 2015 2016 PF Net debt down ~$522 million in 2nd Q 2017 ~4x leverage by end of 2018 Note: 2016 PF leverage ratio
Slide 24: Strong Cash Generation Supports Dividends
STRONG CASH GENERATION SUPPORTS DIVIDENDS DIVIDENDS PAID (ANNUAL PER SHARE) $1.64 $1.64 $1.48 $1.24 $1.28 $1.28 $1.08 $0.92 $0.76 $0.64 DOUBLED IN 5 YEARS 2014: +16%; 2015: +11% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revisit dividend policy once deleveraging is well underway 24
Slide 25: Cash-Use Priorities Based on Return Criteria
CASH-USE PRIORITIES BASED ON RETURN CRITERIA CASH-USE PRIORITIES STRENGTHEN BRAND-LED RETURN CASH Balance sheet Growth opportunities to shareholders Maintain dividend now, Select investments Current focus of FCF revisit when deleverage ahead of the curve well underway Underpinned by PACC model 25
Slide 26: Focus: Delivering Growth & Long-Term Shareholder Value
FOCUS: DELIVERING GROWTH & LONG-TERM SHAREHOLDER VALUE MAINTAIN FLEXIBILITY TO INVEST – AND PROTECT BOTTOM LINE EARN MORE EARN MORE USE LESS INVEST WISELY USE LESS DRIVE TOTAL SHAREHOLDER RETURNS 26
Slide 27: Barclays Global Consumer Staples Conference
BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE SEPTEMBER 6, 2017 27
Molson Coors Brewing Company — Barclays Global Consumer Staples Conference 2017 on 6ix