Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Barclays Back-to-School Consumer Conference 2009
25 slides from Molson Coors Beverage's conference presentation, Sep 9, 2009
Slide 1: Molson Coors Brewing Company
Molson Coors Brewing Company Barclays Back-to-School Consumer Conference September 9, 2009
Slide 2: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer, Molson Coors 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the federal securities laws, and language indicating trends, such as “trend improvements,” “progress,” “anticipated,” “expected,” “improving sales trends” and “on track.” Although the Company bel
Slide 4: Today's Agenda
Today’s Agenda • Peter Swinburn, CEO, Molson Coors − Welcome & Introductions − Molson Coors Overview − Performance Highlights (First Half 2009) − Strategic Focus • Stewart Glendinning, CFO, Molson Coors − Recent Financial Results − Financial Strategies to Drive Long-Term Shareholder Value • Closing
Slide 5: Molson Coors Brewing Company Overview
Molson Coors Brewing Company Overview • More than 350 years of pioneering spirit & • Strong presence and brand momentum in family brewing heritage with Molson and Coors three of the world’s largest beer markets families retaining significant ownership in the • Unified leadership team with focus on b
Slide 6: Performance Highlights – First Half 2009
Performance Highlights – First Half 2009 • Delivering growth and profitability through a brand-led strategy − Underlying earnings growth of 34% in first half − Building brands that support revenue per HL increases (local currency) − Coors Light grew 3.4% globally, despite industry volumes down − MCB
Slide 7: Strategic Overview
Strategic Overview • Drive sustainable, long-term shareholder value − Build and invest in portfolio of extraordinary brands • Grow Coors Light internationally − Drive innovation at all levels and in all markets − Maximize the value of the business • Cost management • Cash generation • Aim to continu
Slide 8: Build & Invest in Portfolio of Extraordinary Brands
Build & Invest in Portfolio of Extraordinary Brands • Extend Coors Light internationally • Expand UK portfolio • Premium Light category is #1 US focus • Improve Molson trademark brand performance in Canada • Own key properties that support propositions − NFL − NASCAR − Carling Cup − Vancouver Olympi
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Slide 10: Drive Relentless Innovation for Consumers
Drive Relentless Innovation for Consumers • International alignment for Coors Light − Refreshment − Rocky Mountains − Cold activation − Frost-brewed liner • Application across Molson Coors • Selective portfolio additions in local markets 10
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Slide 12: Stewart Glendinning, Chief Financial Officer
Stewart Glendinning Chief Financial Officer, Molson Coors 12
Slide 13: Financial Strategies Drive Long-Term Value
Financial Strategies Drive Long-Term Value • 1st half financial performance of Molson Coors Brewing Company • Cost reduction program updates: RFG and RFG2 • MillerCoors synergy program and 1st year performance highlights • Strategies strengthen balance sheet, generate cash and drive value • Update r
Slide 14: Financial Performance Highlights - First Half 2009
Financial Performance Highlights - First Half 2009 • Total-company underlying income(1) growth of 34.1% after-tax in the 1st half − Canada grew underlying pretax income more than 5% in local currency − The U.K. more than doubled 1st half underlying income − The U.S. segment underlying income increas
Slide 15: Cost Reduction Programs
Cost Reduction Programs Annual Cost Savings 2005 2006 2007 2008 2009 Total (US$ millions) 1H Resources for Growth (‘07-’09) -- -- 91 87 50 229 Merger synergies (‘05-’07) 59 66 55 -- -- 180 Pre-existing programs (‘05-’06) 22 38 -- -- -- 60 Total 81 104 146 87 50 469 On target to capture at least $21
Slide 16: Cost Reduction Programs – RFG2
Cost Reduction Programs – RFG2 • We are well-along in developing our next-generation cost savings program: RFG2 • At least $100 million of new savings over the next 3 years • Significant reductions in logistics, waste, utilities and maintenance • Systems improvements and procurement savings • Canada
Slide 17: MillerCoors Synergies
MillerCoors Synergies Annual Cost Savings 2H 1H 2H 2010- Total (US$ millions) 2008 2009 2009 2011 MillerCoors Synergies - Delivered 28 110 -- -- 138 MillerCoors Synergies - Anticipated -- -- 122 240 362 Total 28 110 122 240 500 • On target to deliver $260 million of cumulative synergies by year end,
Slide 18: MillerCoors 12-Month Performance Highlights
MillerCoors 12-Month Performance Highlights MillerCoors Year One P&L Highlights(1) % Change Sales to Retail (STRs)(2) (0.5%) Net Sales per Hectoliter +4.9% Cost of Goods Sold per Hectoliter +5.3% Marketing, General & Administrative (6.1%) Underlying Net Income(3) +25.4% All cost savings dropped to t
Slide 19: Building Cash Flow and Balance Sheet Strength
Building Cash Flow and Balance Sheet Strength 2009 Underlying Free Cash Flow Goal: $575 million, +/- 10% • Driven by: − Operating earnings growth − Changes in working capital − Lower pension contributions • MillerCoors cash generation ramping up in 2nd half 2009 • Excludes: − One-time capital and ch
Slide 20: Cash Use Priorities Drive Long-Term Value
Cash Use Priorities Drive Long-Term Value • Growth opportunities − Recent examples: MillerCoors, Cobra brand acquisition in U.K. − Selectively considered and brand-led, all shapes and sizes, investments in high-return innovation and capital improvements − Value-enhancing in-market and select strateg
Slide 21: Strong Financial Performance, Strategies
Strong Financial Performance, Strategies • Strong 1st half financial performance • Exceeded cost reduction targets – MCBC and MillerCoors • MillerCoors exceeded financial targets in 1st year • Ramping up cash generation Cash use priorities drive long-term, sustainable value 21
Slide 22: Peter Swinburn, Chief Executive Officer
Peter Swinburn Chief Executive Officer, Molson Coors 22
Slide 23: Molson Coors Brewing Company
Molson Coors Brewing Company We are committed to delivering sustainable, long-term shareholder value and to becoming a top global brewer in profitability Investing in our brands and creating a portfolio that excites Driving relentless innovation in the marketplace Maximize the value of our business
Slide 24: Q&A
Q&A 24
Slide 25: Molson Coors Brewing Company
Molson Coors Brewing Company Barclays Back-to-School Consumer Conference September 9, 2009
Molson Coors Brewing Company — Barclays Back-to-School Consumer Conference 2009 on 6ix