Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Coors Adolph — Merger or Acquisition (November 2004)
26 slides from Molson Coors Beverage's merger presentation, Nov 2, 2004
Slide 1: Molson Coors Brewing Company: Outlook for MergeCo
Molson Coors Brewing Company Outlook for MergeCo Leo Kiely Tim Welt President & Chief Executive Officer Chief Financial Officer Adolph Coors Company Adolph Coors Company MOLSON @) November 2004
Slide 2: Forward Looking Statements
Forward Looking Statements ‘This presentatenindudes “oraard ooking statement wihin fe messing of he US. federal sacuiies lave, Fonvardloshing statement are commeely dented by such teims and phases as "woul may’, wd, "expect of “expected to” and othe teens wih suat meaning indicat posible tute vents
Slide 3: A Good Deal for Molson & Coors Shareholders
A Good Deal for Molson & Coors Shareholders Strong and Stable Platform for Development Creates Significant Identified Synergies Secures Coors Light Brand - Most significant growing brand in Molson’s portfolio Significant Revenue Growth Opportunities for MergeCo Coors Management Team's Strong Track R
Slide 4: Enhanced Platform in Developed Markets, Balanced Emerging Market Exposure
Enhanced Platform in Developed Markets, Balanced Emerging Market Exposure * Strong positions in world’s highest margin beer markets + Growth opportunities through underdeveloped regions/brands in mature markets and Brazil 2003 Volume 60M hi LTM Net Sales US$6B LTM EBITDA US$1B Bus) Mi canaca Ou (1)
Slide 5: With Leading Positions in Key Markets
With Leading Positions in Key Market: S Top Brand Canada United States Brazil ‘Source Datamontor and Brenets of Canada @e02) Strong brands in some of the world’s lar¢ MOLSON @ All Brands eer markets
Slide 6: Ability to Focus Investments on Highest-Margin Sectors: Canada and UK
Ability to Focus Investments on Highest- Margin Sectors: Canada and UK Coors Canada impact $50 $40 Investments $30 | | Balance ad $20 t $0 Canada UK us WEBITDA/hI MI Mktg/hl n of incremental marketing spend behind growth in hii marg arkets and channels
Slide 7: Coors Americas Leverage: 1997-2001 vs. 2003/04
Coors Americas Leverage: 1997-2001 vs. 2003/04 2004 YTD Volume: 2.5% (1.4%) (2.2%) Pricing: 1.9% 1.8% 2.2% COGS per barrel: 0.9% 0.9% 2.0% MG&A per barrel: 3.9% 3.8% 6.8% Pre-tax income: 21.4% 1.0% 3.2% (1) Excluding the effect of FN46 accounting rule, Reported pretax +8.4%. 2004 YTD STRs: (0.7%).
Slide 8: Solid Canada and UK Base with Major US Growth Sector and Brazil Option
Solid Canada and UK Base with Major US Growth Sector and Brazil Option United aaa TSM IN SY NER International Activities Scale benefits TBD Close part of cost gap - TBD ADDI ONAUSYNERGIES NIN COUNTRY PRODUCHIUIN>REVENUEIIET: Coors Light, Ondrade Regional TeD Development Riese distribution developmen
Slide 9: Cost Synergies Drop to Bottom Line
Cost Synergies Drop to Bottom Line % of Pro Forma Cost Bas Brewery Network Optimization 1.1% Procurement Savings 43 08 SGA 40 08 Best In Class Savings 12 0.2 Organizational Design 10 0.2 Other 10 0.2 Total $175 3.3% Molson Coors has ident
Slide 10: Revenue Growth Opportunities
Revenue Growth Opportunities + Incremental market investment in Canada; unleash Coors Light + Support value entry to regain share and drive volume savings + Continue to enhance Coors Light focus/positioning + Leverage Molson brands in full US system + Expand testing of Marca Bavaria + Incremental ma
Slide 11: Canada Strategy — Focus on Light Beer Dominance
Canada Strategy — Focus on Light Beer Dominance U.S. Market Share Canadian Market Share® — 21.4MM HL cage cage 12% ese raf 3% Ley 4% aay a8 eo Saisie wr] + Replicate U.S. experience — market grew from 30.6% in 1990 to 46.8% of the market in 13 years. + Based on this experience, we believe the Light
Slide 12: Canada Strategy — Focus on Light Beer Dominance
Canada Strategy — Focus on Light Beer Dominance: + Based on current percentage of Light market (68%), we expect Coors Light could grow from 8.5% (1.82MM HL) of the Canadian market today to 14.5% (3.10MM HL) long-term + Strategy would be to market heavily both Canadian and Coors Light to stabilize Ca
Slide 13: U.S. Strategy — Cost & Revenue Enhancement
U.S. Strategy — Cost & Revenue Enhancement Cost Savings Plant Efficiencies 7 Distribution fa 100MM ITDA over five yea Packaging and Materials _) Revenue Strategy + Improved Sales focus and resources (chains and on-premise) + Refined Marketing strategy + Distribution improvements; consolidation and b
Slide 14: Potential Financial Upside
Potential Financial Upside $600 (USS in MM) g $477MM in EBITDA Canada Light Beer Strategy US. Cost Savings US. Volume Synergies Growth estment and shareholder return
Slide 15: Shareholder Return Focused
Shareholder Return Focused U.K. Experience + Purchased Carling in 2002 for US$1.7BN (8.0x 2002 EBITDA) Improved market share from 18.8% in 2001 to 20.6% LTM Proven track record of improved market volume and share in a declining U.K. market EBITDA has improved from US$207MM in 2001 to US$232MM in 200
Slide 16: Shareholder Return Focused
Shareholder Return Focused Total Shareholder Return — 10 Yearst’) seggeyeses li EPS Growth (10 Year CAGR)@) {TaN ERD maw ORD Bah INSEDRTH TRNAS OH Coors Americas Gross Margins
Slide 17: Cash and Debt Discipline Drives Returns
Cash and Debt Discipline Drives Returns Cash Flow Growth (10 Year CAGR}\") Cash Flow Growth (5 Year CAGR}\ Debt Repayments Since 2002 CBL Acquisition + Sources: = Operating cash flow $1,214MM — Asset monetization $104MM = Other (settlement) $25MM + Uses: — Capital spending (896MM) Dividends, option
Slide 18: Attractive Proposal: Economic ownership favours Molson shareholders
Attractive Proposal Economic ownership favours Molson shareholders LTM Contribution Analysis (Pre-Synergies) Property, Plant & Equioment ‘Owmerstip in Mergeco 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Molson MCoors Molson ownership based on 0:35 exchange rat
Slide 19: Attractive Proposal: Molson investors receiving a premium
Attractive Proposal Molson investors are receiving a premium LTM EV/ EBITDA LTM Price / Earnings ae Prema ‘Note: (1) Based on exchange ratio of 0.96 Coors share per Motson share (2) Closing share price as of November $, 2004
Slide 20: A Good Deal for Molson & Coors Shareholders
A Good Deal for Molson & Coors Shareholders Strong and Stable Platform for Development Creates Significant Identified Synergies Secures Coors Light Brand - Most significant growing brand in Molson’s portfolio Significant Revenue Growth Opportunities for MergeCo Coors Management Team's Strong Track R
Slide 21: Supplemental Information
Supplemental Information MOLSON @) Coots
Slide 22: Last Twelve Months Pro Forma Income Statement
Last Twelve Months Pro Forma Income Statement Combined (USsM) Molson Coors mergies _ $175M Syner: Net sales 1,890 4146 6036 BIT 365 331 696 871 Margin 19.3% 8.0% 11.5% 14.8% EBITDA 413 585 998 4,173 Margin 21.8% 14.1% 16.5% 19.4% Net income 187 174 361 4750 Free cash flow" 348 3mT 725 900 Sabo entan
Slide 23: Pro Forma Balance Sheet
Pro Forma Balance Sheet (ussm) Molson Coors Combined Cash $108 $36.2 $47.41 Total current assets $367.6 $1,1285 $1,496.1 PP&E 7423 14110 2,153.3 Total assets $9312 $4,532.0 $7,463. Total current liabilities $760.9 $1,175.9 $1,936.8 Total debt 840.6 1,142.4 1,982.7 Minority interests 93.5 298 123.2 S
Slide 24: Pro Forma Credit Statistics
Pro Forma Credit Statistics Debt to EBITDA Interest Coverage 22 " 700 20 0 j 18 2 826 8 16 xy 14 Pani 12 st 10 4 Molson Coors Molson Including Molson Coors. Molson Including Coors Synergies Coors Synergies LIM of Jue 90, 200 CALYUSD exchange rate 1.94 tee purhace aeouning aduamrts: tre overage * EBI
Slide 25: In the UK, Consistent Strong Growth
In the UK, Consistent Strong Growth in Both the On-Trade... Owned Brand Market Share - On Trade 22% 21.7% 21% 20.2% 20% 19.7% 19.3% 19% 18% + 2000 2001 2002 2003 On-Trade of CBL volume) MOLSON @) Cook
Slide 26: Searchable text section of graphics shown above
Searchable text section of graphics shown above Mol son Coors Brewing Company Outlook for MergeCo Leo Kiely Tim Wolf President & Chief Executive Officer Chief Financial Officer November 2004 Adolph Coors Company Adolph Coors Company [LOGO] [LOGO] For ward Looking Statements This presentation include