Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors — Merger or Acquisition (November 2015)
16 slides from Molson Coors Beverage's merger presentation, Nov 11, 2015
Slide 1: Molson Coors to Acquire Full Ownership of MillerCoors and the Miller Brand Family Globally
MOLSON COORS TO ACQUIRE FULL OWNERSHIP OF M I L L E R C O O R S A N D T H E M I L L E R B R A N D F A M I LY G L O B A L LY NOVEMBER 11, 2015 1
Slide 2: 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 3: A Unique and Game-Changing Opportunity for Molson Coors
A UNIQUE AND GAME-CHANGING OPPORTUNITY FOR MOLSON COORS Unique opportunity to control 100% of strategic and attractive U.S. business, while accelerating new growth opportunities in emerging and developed beer markets globally through Miller brand ownership Acquisition improves operating efficiency a
Slide 4: Transaction Overview
TRANSACTION OVERVIEW • Total purchase price of $12.0 billion for the remaining 58% of the MillerCoors joint venture, ownership of the Miller Brand Family globally, an estimated $2.4 billion present value of cash tax benefits, and perpetual, Transaction royalty-free U.S. rights to all imported and li
Slide 5: A Compelling Transaction
A COMPELLING TRANSACTION • Creates leading North American brewer with a unique portfolio of iconic brands Consistent With Molson • Strengthens presence in attractive U.S. beer market Coors’ Strategic Vision • Unlocks substantial potential of U.S. business, enhancing efficiency and go-to-market strat
Slide 6: Fortifying Position in Attractive U.S. Market
FORTIFYING POSITION IN ATTRACTIVE U.S. MARKET Portfolio Highlights Select Brands Premium #2 Brewer in the U.S. with 27% market share Includes the #2 and #4 beer brands #1 Craft brewer in the U.S. with Tenth and Blake #1 Craft brand in the U.S. with Blue Moon Craft #1 Shandy in the U.S. with Leinenku
Slide 7: Miller Brands — Global Growth Opportunity
MILLER BRANDS — GLOBAL GROWTH OPPORTUNITY Opportunity for Global Expansion Global Miller Brand Volume Breakdown Panama • The Miller brands globally are a 18% profitable business built on a powerful Other 35% brand family that we can leverage Canada worldwide, including emerging markets, ~3.2MM 9% HL
Slide 8: The Miller Trademark Is a Tremendous Addition to the Global Molson Coors Portfolio
THE MILLER TRADEMARK IS A TREMENDOUS ADDITION TO THE GLOBAL MOLSON COORS PORTFOLIO Frederick J Miller “Quality, Uncompromising and Unchanging” 8
Slide 9: Miller Advances Our Global Brand Portfolio
MILLER ADVANCES OUR GLOBAL BRAND PORTFOLIO Allows Molson Coors to devote resources to brands with the greatest growth potential globally Global Priority Brands National Champions High-Growth Craft Portfolio 9
Slide 10: Greater Exposure to the Highly Attractive U.S. Beer Market
GREATER EXPOSURE TO THE HIGHLY ATTRACTIVE U.S. BEER MARKET Today (42% MillerCoors) Pro Forma (100% MillerCoors, Miller Global) MCI Miller Global MCI 2% 2% 1% Net Sales Breakdown Europe Europe 18% 30% U.S. 44% U.S. Canada 64% 15% Canada 24% 2014 Revenue $7.44 billion $12.18 billion (2) Miller Global
Slide 11: Proven Track Record of Achieving Significant Cost Reductions
PROVEN TRACK RECORD OF ACHIEVING SIGNIFICANT COST REDUCTIONS Synergy Potential Cumulative Annualized Cost Savings Since 2005 ($millions) (1) • Opportunity for Molson Coors to $1,333 continue driving cost savings in line $1,195 with long track record of achieving $1,078 significant cost reductions $9
Slide 12: Financially Attractive Transaction
FINANCIALLY ATTRACTIVE TRANSACTION Earnings • Forecasted to be 25%+ accretive to cash earnings in first full-year of operations Return on • Superior returns – compelling use of capital Capital • Expected to meet our PACC hurdle rates in Year 1 • Maintain strong balance sheet, excellent liquidity; in
Slide 13: Integration and Operational Strategy
INTEGRATION AND OPERATIONAL STRATEGY • Leverage significant synergy potential across entire North American supply chain, shared services activities and global procurement • No change to existing portfolio of MillerCoors joint venture, but greater resources to invest in brands • All current brands wi
Slide 14: Transaction Delivers Growth & Total Shareholder Value
TRANSACTION DELIVERS GROWTH & TOTAL SHAREHOLDER VALUE • Investing behind core brands • Driving share in above premium in BRAND-LED the U.S. and select global markets PROFIT • Cross-border exchange of value- GROWTH added innovation, commercial excellence PROFIT AFTER Drives: CAPITAL CHARGE • Tax bene
Slide 15: A Unique and Game-Changing Opportunity for Molson Coors
A UNIQUE AND GAME-CHANGING OPPORTUNITY FOR MOLSON COORS Unique opportunity to control 100% of strategic and attractive U.S. business, while accelerating new growth opportunities in emerging and developed beer markets globally through Miller brand ownership Acquisition improves operating efficiency a
Slide 16: Molson Coors to Acquire Full Ownership of MillerCoors and the Miller Brand Family Globally
MOLSON COORS TO ACQUIRE FULL OWNERSHIP OF M I L L E R C O O R S A N D T H E M I L L E R B R A N D F A M I LY G L O B A L LY NOVEMBER 11, 2015 16