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Boston 2016 slides master slides - draft sept2 v2

This document summarizes Mark Hunter's presentation at the Barclays Global Consumer Staples Conference on September 7, 2016 as CEO of Molson Coors Brewing Company. The presentation outlines Molson Coors' strategic focus on brand-led growth, cash generation, and capital allocation. It also details how acquiring MillerCoors will double Molson Coors' size, deliver $200M in annual synergies, and over $250M in annual cash tax benefits. The acquisition enhances Molson Coors' commercial capabilities to drive top-line growth through improved insights, innovation, digital capabilities, and customer excellence.

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S E P T E M B E R 7 , 2 0 1 6 M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G L O B AL C O N S U M E R S TAP L E S C O N F E R E N C E
S E P T E M B E R 7 , 2 0 1 6 M AR K H U N T E R P R E S I D E N T & C E O M O L S O N C O O R S B R E W I N G C O M PAN Y
3 FO RWA R D LO O K IN G STATEMEN T 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 forward-looking statements, which generally are not historic in nature. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in "Risk Factors" in our Annual Report on Form 10-K for the year-ended December 31, 2015. These factors include, among others, our ability to successfully close, finance and integrate the acquisition; our ability to achieve expected tax benefits, accretion and cost synergies; our ability to obtain necessary regulatory approvals for the acquisition; impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and our brands in our markets; economic conditions in our markets; additional impairment charges; our ability to maintain manufacturer/distribution agreements; changes in our supply chain system; availability or increase in the cost of packaging materials; success of our joint ventures; risks relating to operations in developing and emerging markets; changes in legal and regulatory requirements, including the regulation of distribution systems; fluctuations in foreign currency exchange rates; increase in the cost of commodities used in the business; the impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; our ability to implement our strategic initiatives, including executing and realizing cost savings; our ability to successfully integrate newly acquired businesses; pension plan costs; failure to comply with debt covenants or deterioration in our credit rating; our ability to maintain good labor relations; our ability to maintain brand image, reputation and product quality; lack of full-control over the operations of MillerCoors and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-K for the year-ended December 31, 2015. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
4 TO D AY’S A G EN D A MARK HUNTER, CEO, MOLSON COORS • Introductions, corporate overview, strategic focus and growth opportunities MAURICIO RESTREPO, CFO, MOLSON COORS • Strategies to grow profit, cash, total shareholder return Q&A
5 MO LSO N C O O R S TO D AY $ 6 . 8 B I L L I O N I N R E V E N U E A N D $ 1 . 3 B I L L I O N I N E B I T D A (1) Excludes Corporate and Eliminations from the total. (2) Does not include underlying operating losses for Corporate and MCI. Non GAAP underlying income is calculated by excluding special and other non-core items from the nearest U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures on our website. EUROPE CANADA UNITED STATES (42%) INTERNATIONAL MARKETS 45% 48% 53% 13% 22% 28% 37% 28% 19% 2% WORLDWIDE BEER VOLUME NET SALES (1) UNDERLYING PRETAX(2) 5%
6 LEA D IN G MA R K ET & B R A N D PO SITIO N S # 1 O R # 2 I N M O S T O F O U R M A R K E T S We have our brands in over 50 countries through our license and export business. * Company/Industry Estimates, based on full year 2015 results. MARKET MARKET POSTIONS* BRAND POSITION* BRAND USA #2 #2 & #4 Canada #2 #2 & #4 UK #2 #1 Bulgaria #1 #1 Croatia #1 #1 Serbia #1 #1 Czech Republic #2 #4 Hungary #3 #2 Romania #3 #5 Bosnia #1 #1 Slovakia #3 #5 Montenegro #1 #1
7 A FO C U S O N D ELIVER IN G G R O W TH & LO N G TER M SH A R EH O LD ER VA LU E • Investing behind core brands • Driving share in above premium • Delivering value-added innovation • Commercial excellence • Cost reductions • Capital expenditure driving efficiencies • Working Capital improvements • Sale of non-core assets • Disciplined cash use • Return-driven criteria • Balanced priorities PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR) BRAND-LED PROFIT GROWTH CASH AND CAPITAL ALLOCATION CASH GENERATION PA C C R E M A I N S K E Y D E C I S I O N D R I V E R
8 • Brand-led revenue and profit growth • Cash generation • Cash and capital allocation, underpinned by PACC TOTAL SHAREHOLDER RETURN TAP SHARES 5 YEAR 170% 3 YEAR 126% 1 YEAR 58% A STR O N G R EC O R D O F SH A R EH O LD ER R ETU R N S O U T P E R F O R M E D T H E S & P 5 0 0 O V E R 1 , 3 A N D 5 Y E A R H O R I Z O N S Total Shareholder Return (TSR) = TAP stock price, plus dividends (intraday September 2, 2016). TAP
9 O U R STR ATEG IC FR A MEW O R K – MC B C B R EW H O U SE D R I V I N G O U R F I R S T C H O I C E A M B I T I O N
10 ECONOMY IMPORT SPECIALTY CRAFT PREMIUM A C Q U IR IN G MILLER C O O R S & MILLER IN TER N ATIO N A L A U N I Q U E A N D G A M E - C H A N G I N G O P P O R T U N I T Y F O R M O L S O N C O O R S Consistent with Molson Coors’ strategic vision Seamless integration based on existing ownership Iconic American beer brands support global growth Drives substantial financial benefits to shareholders Continues strategic evolution of Molson Coors
11 MO LSO N C O O R S: TO D AY VS. TO MO R R O W D O U B L E S T H E S I Z E O F T H E C O M PA N Y Plus: $200 million of annualized cost synergies by Year 4 Plus: More than $250 million of annual cash tax benefit TODAY 42% OF MILLERCOORS TOMORROW PRO FORMA – 100% OF MILLERCOORS 2015 Net sales 2015 Underlying EBITDA income $6.8 BILLION $1.3 BILLION $11.2 BILLION $2.3 BILLION 2015 Underlying operating income 2015 Volume $936 MILLION $1.6 BILLION 58 MILLION HLs 94 MILLION HLs
12 EN H A N C ED C O MMER C IA L C A PA B ILITIES W ILL D R IVE TO P A N D B O TTO M LIN E G R O W TH DIGITAL CUSTOM ER RELATIO NSHIPS CUSTOMER RELATIONSHI PS Focusing on Five Accelerators: INSIGHTS CONSUMER EXCELLENCE Building extraordinary brands CUSTOMER EXCELLENCE Delighting customers COMMERCIAL EXCELLENCE FRAMEWORK A C Q U I S I T I O N A C C E L E R AT E S C O M M E R C I A L A G E N D A GLOBAL BRANDS INSIGHTS INNOVATION DIGITAL FSM________ NPS
13 A C C ELER ATIN G G LO B A L B R A N D S B U I L D I N G A N E X T R A O R D I N A R Y B R A N D P O R T F O L I O • Sharpened Portfolio Strategy • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability • Commercial Excellence Academy GLOBAL TRADEMARK BRANDS GLOBAL BRANDS NATIONAL CHAMPIONS HIGH-GROWTH CRAFT & AP PORTFOLIO GLOBAL BRANDS
Insert Coors Banquet Commercials
15 A C C ELER ATIN G G LO B A L B R A N D S B U I L D I N G A N E X T R A O R D I N A R Y B R A N D P O R T F O L I O • Sharpened Portfolio Strategy • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability • Commercial Excellence Academy GLOBAL TRADEMARK BRANDS NATIONAL CHAMPIONS HIGH-GROWTH CRAFT & AP PORTFOLIO GLOBAL BRANDS
16 # 1 C R A F T B R A N D I N M O S T O F O U R C O R E M A R K E T S LEA D IN G G LO B A L C R A FT PO R TFO LIO #1 US Craft Brand US EUROPE CANADA #1 UK Craft Brand #1 Irish Craft Brewery #1 US Shandy Brand
17 A C C ELER ATIN G O U R FO C U S O N IN SIG H TS & D IG ITA L • Embed global segmentation model • Sharpened portfolio strategy • Distinctive brand propositions • New Global Digital Centre of Expertise Team • Digital Experts now placed in all key markets • Partnerships with Leading Digital companies • Digital Incubator & Venturing B U I L D I N G S T R O N G E R C O N S U M E R C O N N E C T I O N S INSIGHTS DIGITAL
18 A C C ELER ATIN G O U R IN N O VATIO N A G EN D A • New Global Innovation Centre of Expertise Team • White spaces for Innovation • Enterprise projects, in flight • Leverage MillerCoors approach • Best of Both Processes & Tools B U I L D I N G S T R O N G E R C O N S U M E R C O N N E C T I O N S INNOVATION
19 FIR ST C H O IC E FO R C U STO MER S S U P E R I O R C U S T O M E R E X P E R I E N C E A N D F R O N T - L I N E R E L AT I O N S H I P S • Relentless focus on customer experience • Net Promotor Score (NPS) as primary metric • Voted #1 supplier by Tamarron Survey in the US • Best rated supplier by UK’s largest grocer Tesco • Voted #1 in UK’s Advantage Survey (Major Chain Grocers) • Ranked #1 supplier by Boston Pizza in Canada • Deployed Field Sales Management (FSM) and NPS across Canada & Europe • Compensation link to execution • Best of both process & tools FSM________ NPS
20 B U ILD IN G A B IG G ER A N D B ETTER B U SIN ESS CUSTOM ER RELATIO NSHIPS CUSTOMER RELATIONSHI PS INSIGHTS CONSUMER EXCELLENCE Building extraordinary brands CUSTOMER EXCELLENCE Delighting customers COMMERCIAL EXCELLENCE FRAMEWORK A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H A stronger, more effective competitor with enhanced commercial capabilities to drive top-line growth and win in the marketplace. GLOBAL BRANDS INSIGHTS INNOVATION DIGITAL FSM________ NPS
S E P T E M B E R 7 , 2 0 1 6 M AU R I C I O R E S T R E P O G L O B AL C F O M O L S O N C O O R S B R E W I N G C O M PAN Y
22 D R IVIN G G R O W TH TH R O U G H FO C U S O N STR ATEG IES A N D PA C C MO D EL
23 TH E PA C C MO D EL
24 • Investing behind core brands • Driving share in above premium • Delivering value-added innovation • Commercial excellence • Cost reductions • Capital expenditure driving efficiencies • Working Capital improvements • Sale of non-core assets • Disciplined cash use • Return-driven criteria • Balanced priorities PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR) BRAND-LED PROFIT GROWTH CASH AND CAPITAL ALLOCATION CASH GENERATION D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL
25 EARN MORE INVEST WISELY USE LESS D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)
26 Up 2% in first half 2016. (1) Non-GAAP underlying pretax income is calculated by excluding special and other non-core items from the nearest U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures in our 10-K. $821 $865 $865 $904 $832 $430 $439 $0 $200 $400 $600 $800 $1000 2011 2012 2013 2014 2015 1H 2015 1H 2016 ($ millions) C O N SISTEN T FIN A N C IA L PER FO R MA N C E EVEN IN TO U G H TIMES… UNDERLYING PRETAX INCOME(1)
27 Over $1.4 billion of cumulative annualized cost savings delivered. (1) Includes 42% of MillerCoors cost savings. $81 $185 $331 $442 $657 $851 $958 $1,078 $1,195 $1,333 $1,434 $0 $200 $400 $600 $800 $1000 $1200 $1400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ millions) C O ST R ED U C TIO N S H ELP TO D R IVE TO P LIN E A N D B O TTO M LIN E CUMULATIVE ANNUALIZED COST SAVINGS(1)
28 Substantial % of savings reinvested for profitable growth. LONG-TERM SUSTAINABILITY • Captured almost $65 million of savings in 2015 (1) • Expect cost savings of $50-$70 million/year for at least the next 2 years(1) DRIVEN THROUGH EFFICIENCY AND EFFECTIVENESS • Canada Supply Chain and China Restructuring • U.S.: Eden brewery closure announced • Europe: Alton and Plovdiv Closures, Burton South agreement • Canada: Vancouver sale, Montreal under review (1) Excludes MillerCoors cost savings. O N G O IN G C O ST EFFIC IEN C IES W ILL FU EL G R O W TH IN VESTMEN TS
29 Commitment to maintaining investment-grade debt ratings. (1) Pro forma net debt/underlying EBITDA. Non-GAAP underlying EBITDA (Earnings before interest, taxes, depreciation and amortization) is calculated excluding special and other non-core items from U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures in our 2015 10-K, as well as pro forma financial results in our 8-K filed on May12, 2016. Does not include transaction-related cash tax benefits. Note: Years 2011 through 2015 include 42% of MillerCoors underlying EBITDA. FO C U S O N PAYIN G D O W N D EB T 0.7 2.8 2.3 1.7x 1.9x 5.3x 0x 1x 2x 3x 4x 5x 6x 2011 2012 PF 2013 2014 2015 2015 PF (1) NET DEBT / EBITDA Net debt reduced by +1.5 billion X X X
30 Will revisit dividend policy once deleveraging is well underway. $0.64 $0.64 $0.76 $0.92 $1.08 $1.24 $1.28 $1.28 $1.48 $1.64 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 C O MMITTED TO C A SH R ETU R N S VIA D IVID EN D S DIVIDENDS PAID (ANNUAL PER SHARE)
31 Consistent return-driven criteria, anchored by PACC. D ISC IPLIN ED C A SH U SE STRENGTHEN Balance sheet RETURN CASH to shareholders CASH USE PRIORITIES Brand-led GROWTH OPPORTUNITIES
32 More than $250 million of cash tax benefits in each of first 15 years. E N H A N C I N G V I S I B I L I T Y TR A N SA C TIO N - R ELATED R EPO R TIN G : EPS Underlying After-Tax Income(2) $A Plus: Annual after-tax transaction-related book amortization (non-cash) $B(3) Plus: Annual transaction-related cash tax benefits $1.15 Equals: Underlying transaction-adjusted EPS $A + $B + $1.15 Example: 2015 pro forma transaction- adjusted EPS $4.33 + $0.24 + $1.15 = $5.72/share P&L Item Per Share(1) (1) Based on May 12, 2016, pro forma financial information, including 216.3 diluted shares outstanding, as well as estimated cash tax benefits of $250 million/year, but excludes Miller Global brands business. See our website (www.molsoncoors.com) for a reconciliation to nearest U.S. GAAP measure. (2) Net income from continuing operations attributable to MCBC from Exhibit 99.3 of 8-K filed on May 12, 2016, has been adjusted to take into account transaction- related permanent financing completed in July 2016 (which drove a decrease of $199.8 million to PF interest expense), as well as the related tax impact (an increase of $75.8 million to PF income tax expense). (3) Assumed 38% tax rate.
33 Increased visibility to gross cost savings. FUTURE STATECURRENT STATE Molson Coors annual cost savings • $50-$70 million/year for at least 2 years Transaction-related cost synergies • $200 million by year 4 (annualized) MillerCoors cost savings • No forward targets • Quarterly historical reporting All-in multi-year savings target _______________________________ Annual cost savings reporting I N C R E A S I N G A L I G N M E N T, V I S I B I L I T Y & A C C O U N TA B I L I T Y TR A N SA C TIO N - R ELATED R EPO R TIN G : C O ST SAVIN G S
34 D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL EARN MORE INVEST WISELY USE LESS PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)
35 B U ILD IN G A B IG G ER A N D B ETTER B U SIN ESS DIGITAL CUSTOM ER RELATIO NSHIPS CUSTOMER RELATIONSHI PS INSIGHTS CONSUMER EXCELLENCE Building extraordinary brands CUSTOMER EXCELLENCE Delighting customers COMMERCIAL EXCELLENCE FRAMEWORK A stronger, more effective competitor with enhanced commercial capabilities to drive top-line growth and win in the marketplace. A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H GLOBAL BRANDS INSIGHTS INNOVATION DIGITAL FSM________ NPS
S E P T E M B E R 7 , 2 0 1 6 M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G L O B AL C O N S U M E R S TAP L E S C O N F E R E N C E

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Boston 2016 slides master slides - draft sept2 v2

  • 1.
    S E PT E M B E R 7 , 2 0 1 6 M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G L O B AL C O N S U M E R S TAP L E S C O N F E R E N C E
  • 2.
    S E PT E M B E R 7 , 2 0 1 6 M AR K H U N T E R P R E S I D E N T & C E O M O L S O N C O O R S B R E W I N G C O M PAN Y
  • 3.
    3 FO RWA RD LO O K IN G STATEMEN T 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 forward-looking statements, which generally are not historic in nature. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in "Risk Factors" in our Annual Report on Form 10-K for the year-ended December 31, 2015. These factors include, among others, our ability to successfully close, finance and integrate the acquisition; our ability to achieve expected tax benefits, accretion and cost synergies; our ability to obtain necessary regulatory approvals for the acquisition; impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and our brands in our markets; economic conditions in our markets; additional impairment charges; our ability to maintain manufacturer/distribution agreements; changes in our supply chain system; availability or increase in the cost of packaging materials; success of our joint ventures; risks relating to operations in developing and emerging markets; changes in legal and regulatory requirements, including the regulation of distribution systems; fluctuations in foreign currency exchange rates; increase in the cost of commodities used in the business; the impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; our ability to implement our strategic initiatives, including executing and realizing cost savings; our ability to successfully integrate newly acquired businesses; pension plan costs; failure to comply with debt covenants or deterioration in our credit rating; our ability to maintain good labor relations; our ability to maintain brand image, reputation and product quality; lack of full-control over the operations of MillerCoors and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-K for the year-ended December 31, 2015. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
  • 4.
    4 TO D AY’SA G EN D A MARK HUNTER, CEO, MOLSON COORS • Introductions, corporate overview, strategic focus and growth opportunities MAURICIO RESTREPO, CFO, MOLSON COORS • Strategies to grow profit, cash, total shareholder return Q&A
  • 5.
    5 MO LSO NC O O R S TO D AY $ 6 . 8 B I L L I O N I N R E V E N U E A N D $ 1 . 3 B I L L I O N I N E B I T D A (1) Excludes Corporate and Eliminations from the total. (2) Does not include underlying operating losses for Corporate and MCI. Non GAAP underlying income is calculated by excluding special and other non-core items from the nearest U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures on our website. EUROPE CANADA UNITED STATES (42%) INTERNATIONAL MARKETS 45% 48% 53% 13% 22% 28% 37% 28% 19% 2% WORLDWIDE BEER VOLUME NET SALES (1) UNDERLYING PRETAX(2) 5%
  • 6.
    6 LEA D ING MA R K ET & B R A N D PO SITIO N S # 1 O R # 2 I N M O S T O F O U R M A R K E T S We have our brands in over 50 countries through our license and export business. * Company/Industry Estimates, based on full year 2015 results. MARKET MARKET POSTIONS* BRAND POSITION* BRAND USA #2 #2 & #4 Canada #2 #2 & #4 UK #2 #1 Bulgaria #1 #1 Croatia #1 #1 Serbia #1 #1 Czech Republic #2 #4 Hungary #3 #2 Romania #3 #5 Bosnia #1 #1 Slovakia #3 #5 Montenegro #1 #1
  • 7.
    7 A FO CU S O N D ELIVER IN G G R O W TH & LO N G TER M SH A R EH O LD ER VA LU E • Investing behind core brands • Driving share in above premium • Delivering value-added innovation • Commercial excellence • Cost reductions • Capital expenditure driving efficiencies • Working Capital improvements • Sale of non-core assets • Disciplined cash use • Return-driven criteria • Balanced priorities PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR) BRAND-LED PROFIT GROWTH CASH AND CAPITAL ALLOCATION CASH GENERATION PA C C R E M A I N S K E Y D E C I S I O N D R I V E R
  • 8.
    8 • Brand-led revenueand profit growth • Cash generation • Cash and capital allocation, underpinned by PACC TOTAL SHAREHOLDER RETURN TAP SHARES 5 YEAR 170% 3 YEAR 126% 1 YEAR 58% A STR O N G R EC O R D O F SH A R EH O LD ER R ETU R N S O U T P E R F O R M E D T H E S & P 5 0 0 O V E R 1 , 3 A N D 5 Y E A R H O R I Z O N S Total Shareholder Return (TSR) = TAP stock price, plus dividends (intraday September 2, 2016). TAP
  • 9.
    9 O U RSTR ATEG IC FR A MEW O R K – MC B C B R EW H O U SE D R I V I N G O U R F I R S T C H O I C E A M B I T I O N
  • 10.
    10 ECONOMY IMPORT SPECIALTYCRAFT PREMIUM A C Q U IR IN G MILLER C O O R S & MILLER IN TER N ATIO N A L A U N I Q U E A N D G A M E - C H A N G I N G O P P O R T U N I T Y F O R M O L S O N C O O R S Consistent with Molson Coors’ strategic vision Seamless integration based on existing ownership Iconic American beer brands support global growth Drives substantial financial benefits to shareholders Continues strategic evolution of Molson Coors
  • 11.
    11 MO LSO NC O O R S: TO D AY VS. TO MO R R O W D O U B L E S T H E S I Z E O F T H E C O M PA N Y Plus: $200 million of annualized cost synergies by Year 4 Plus: More than $250 million of annual cash tax benefit TODAY 42% OF MILLERCOORS TOMORROW PRO FORMA – 100% OF MILLERCOORS 2015 Net sales 2015 Underlying EBITDA income $6.8 BILLION $1.3 BILLION $11.2 BILLION $2.3 BILLION 2015 Underlying operating income 2015 Volume $936 MILLION $1.6 BILLION 58 MILLION HLs 94 MILLION HLs
  • 12.
    12 EN H AN C ED C O MMER C IA L C A PA B ILITIES W ILL D R IVE TO P A N D B O TTO M LIN E G R O W TH DIGITAL CUSTOM ER RELATIO NSHIPS CUSTOMER RELATIONSHI PS Focusing on Five Accelerators: INSIGHTS CONSUMER EXCELLENCE Building extraordinary brands CUSTOMER EXCELLENCE Delighting customers COMMERCIAL EXCELLENCE FRAMEWORK A C Q U I S I T I O N A C C E L E R AT E S C O M M E R C I A L A G E N D A GLOBAL BRANDS INSIGHTS INNOVATION DIGITAL FSM________ NPS
  • 13.
    13 A C CELER ATIN G G LO B A L B R A N D S B U I L D I N G A N E X T R A O R D I N A R Y B R A N D P O R T F O L I O • Sharpened Portfolio Strategy • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability • Commercial Excellence Academy GLOBAL TRADEMARK BRANDS GLOBAL BRANDS NATIONAL CHAMPIONS HIGH-GROWTH CRAFT & AP PORTFOLIO GLOBAL BRANDS
  • 14.
  • 15.
    15 A C CELER ATIN G G LO B A L B R A N D S B U I L D I N G A N E X T R A O R D I N A R Y B R A N D P O R T F O L I O • Sharpened Portfolio Strategy • Distinctive Brand Propositions • Global Brands + Emerging Categories Centre of Expertise • Consumer Excellence Capability • Commercial Excellence Academy GLOBAL TRADEMARK BRANDS NATIONAL CHAMPIONS HIGH-GROWTH CRAFT & AP PORTFOLIO GLOBAL BRANDS
  • 16.
    16 # 1 CR A F T B R A N D I N M O S T O F O U R C O R E M A R K E T S LEA D IN G G LO B A L C R A FT PO R TFO LIO #1 US Craft Brand US EUROPE CANADA #1 UK Craft Brand #1 Irish Craft Brewery #1 US Shandy Brand
  • 17.
    17 A C CELER ATIN G O U R FO C U S O N IN SIG H TS & D IG ITA L • Embed global segmentation model • Sharpened portfolio strategy • Distinctive brand propositions • New Global Digital Centre of Expertise Team • Digital Experts now placed in all key markets • Partnerships with Leading Digital companies • Digital Incubator & Venturing B U I L D I N G S T R O N G E R C O N S U M E R C O N N E C T I O N S INSIGHTS DIGITAL
  • 18.
    18 A C CELER ATIN G O U R IN N O VATIO N A G EN D A • New Global Innovation Centre of Expertise Team • White spaces for Innovation • Enterprise projects, in flight • Leverage MillerCoors approach • Best of Both Processes & Tools B U I L D I N G S T R O N G E R C O N S U M E R C O N N E C T I O N S INNOVATION
  • 19.
    19 FIR ST CH O IC E FO R C U STO MER S S U P E R I O R C U S T O M E R E X P E R I E N C E A N D F R O N T - L I N E R E L AT I O N S H I P S • Relentless focus on customer experience • Net Promotor Score (NPS) as primary metric • Voted #1 supplier by Tamarron Survey in the US • Best rated supplier by UK’s largest grocer Tesco • Voted #1 in UK’s Advantage Survey (Major Chain Grocers) • Ranked #1 supplier by Boston Pizza in Canada • Deployed Field Sales Management (FSM) and NPS across Canada & Europe • Compensation link to execution • Best of both process & tools FSM________ NPS
  • 20.
    20 B U ILDIN G A B IG G ER A N D B ETTER B U SIN ESS CUSTOM ER RELATIO NSHIPS CUSTOMER RELATIONSHI PS INSIGHTS CONSUMER EXCELLENCE Building extraordinary brands CUSTOMER EXCELLENCE Delighting customers COMMERCIAL EXCELLENCE FRAMEWORK A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H A stronger, more effective competitor with enhanced commercial capabilities to drive top-line growth and win in the marketplace. GLOBAL BRANDS INSIGHTS INNOVATION DIGITAL FSM________ NPS
  • 21.
    S E PT E M B E R 7 , 2 0 1 6 M AU R I C I O R E S T R E P O G L O B AL C F O M O L S O N C O O R S B R E W I N G C O M PAN Y
  • 22.
    22 D R IVING G R O W TH TH R O U G H FO C U S O N STR ATEG IES A N D PA C C MO D EL
  • 23.
    23 TH E PAC C MO D EL
  • 24.
    24 • Investing behindcore brands • Driving share in above premium • Delivering value-added innovation • Commercial excellence • Cost reductions • Capital expenditure driving efficiencies • Working Capital improvements • Sale of non-core assets • Disciplined cash use • Return-driven criteria • Balanced priorities PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR) BRAND-LED PROFIT GROWTH CASH AND CAPITAL ALLOCATION CASH GENERATION D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL
  • 25.
    25 EARN MORE INVEST WISELY USELESS D R IVIN G TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)
  • 26.
    26 Up 2% infirst half 2016. (1) Non-GAAP underlying pretax income is calculated by excluding special and other non-core items from the nearest U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures in our 10-K. $821 $865 $865 $904 $832 $430 $439 $0 $200 $400 $600 $800 $1000 2011 2012 2013 2014 2015 1H 2015 1H 2016 ($ millions) C O N SISTEN T FIN A N C IA L PER FO R MA N C E EVEN IN TO U G H TIMES… UNDERLYING PRETAX INCOME(1)
  • 27.
    27 Over $1.4 billionof cumulative annualized cost savings delivered. (1) Includes 42% of MillerCoors cost savings. $81 $185 $331 $442 $657 $851 $958 $1,078 $1,195 $1,333 $1,434 $0 $200 $400 $600 $800 $1000 $1200 $1400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ millions) C O ST R ED U C TIO N S H ELP TO D R IVE TO P LIN E A N D B O TTO M LIN E CUMULATIVE ANNUALIZED COST SAVINGS(1)
  • 28.
    28 Substantial % ofsavings reinvested for profitable growth. LONG-TERM SUSTAINABILITY • Captured almost $65 million of savings in 2015 (1) • Expect cost savings of $50-$70 million/year for at least the next 2 years(1) DRIVEN THROUGH EFFICIENCY AND EFFECTIVENESS • Canada Supply Chain and China Restructuring • U.S.: Eden brewery closure announced • Europe: Alton and Plovdiv Closures, Burton South agreement • Canada: Vancouver sale, Montreal under review (1) Excludes MillerCoors cost savings. O N G O IN G C O ST EFFIC IEN C IES W ILL FU EL G R O W TH IN VESTMEN TS
  • 29.
    29 Commitment to maintaininginvestment-grade debt ratings. (1) Pro forma net debt/underlying EBITDA. Non-GAAP underlying EBITDA (Earnings before interest, taxes, depreciation and amortization) is calculated excluding special and other non-core items from U.S. GAAP earnings. See reconciliation to nearest U.S. GAAP measures in our 2015 10-K, as well as pro forma financial results in our 8-K filed on May12, 2016. Does not include transaction-related cash tax benefits. Note: Years 2011 through 2015 include 42% of MillerCoors underlying EBITDA. FO C U S O N PAYIN G D O W N D EB T 0.7 2.8 2.3 1.7x 1.9x 5.3x 0x 1x 2x 3x 4x 5x 6x 2011 2012 PF 2013 2014 2015 2015 PF (1) NET DEBT / EBITDA Net debt reduced by +1.5 billion X X X
  • 30.
    30 Will revisit dividendpolicy once deleveraging is well underway. $0.64 $0.64 $0.76 $0.92 $1.08 $1.24 $1.28 $1.28 $1.48 $1.64 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 C O MMITTED TO C A SH R ETU R N S VIA D IVID EN D S DIVIDENDS PAID (ANNUAL PER SHARE)
  • 31.
    31 Consistent return-driven criteria,anchored by PACC. D ISC IPLIN ED C A SH U SE STRENGTHEN Balance sheet RETURN CASH to shareholders CASH USE PRIORITIES Brand-led GROWTH OPPORTUNITIES
  • 32.
    32 More than $250million of cash tax benefits in each of first 15 years. E N H A N C I N G V I S I B I L I T Y TR A N SA C TIO N - R ELATED R EPO R TIN G : EPS Underlying After-Tax Income(2) $A Plus: Annual after-tax transaction-related book amortization (non-cash) $B(3) Plus: Annual transaction-related cash tax benefits $1.15 Equals: Underlying transaction-adjusted EPS $A + $B + $1.15 Example: 2015 pro forma transaction- adjusted EPS $4.33 + $0.24 + $1.15 = $5.72/share P&L Item Per Share(1) (1) Based on May 12, 2016, pro forma financial information, including 216.3 diluted shares outstanding, as well as estimated cash tax benefits of $250 million/year, but excludes Miller Global brands business. See our website (www.molsoncoors.com) for a reconciliation to nearest U.S. GAAP measure. (2) Net income from continuing operations attributable to MCBC from Exhibit 99.3 of 8-K filed on May 12, 2016, has been adjusted to take into account transaction- related permanent financing completed in July 2016 (which drove a decrease of $199.8 million to PF interest expense), as well as the related tax impact (an increase of $75.8 million to PF income tax expense). (3) Assumed 38% tax rate.
  • 33.
    33 Increased visibility togross cost savings. FUTURE STATECURRENT STATE Molson Coors annual cost savings • $50-$70 million/year for at least 2 years Transaction-related cost synergies • $200 million by year 4 (annualized) MillerCoors cost savings • No forward targets • Quarterly historical reporting All-in multi-year savings target _______________________________ Annual cost savings reporting I N C R E A S I N G A L I G N M E N T, V I S I B I L I T Y & A C C O U N TA B I L I T Y TR A N SA C TIO N - R ELATED R EPO R TIN G : C O ST SAVIN G S
  • 34.
    34 D R IVING TO TA L SH A R EH O LD ER R ETU R N W ITH PA C C MO D EL EARN MORE INVEST WISELY USE LESS PROFIT AFTER CAPITAL CHARGE TOTAL SHAREHOLDER RETURN (TSR)
  • 35.
    35 B U ILDIN G A B IG G ER A N D B ETTER B U SIN ESS DIGITAL CUSTOM ER RELATIO NSHIPS CUSTOMER RELATIONSHI PS INSIGHTS CONSUMER EXCELLENCE Building extraordinary brands CUSTOMER EXCELLENCE Delighting customers COMMERCIAL EXCELLENCE FRAMEWORK A stronger, more effective competitor with enhanced commercial capabilities to drive top-line growth and win in the marketplace. A C C E L E R AT I N G O U R C O M M E R C I A L A G E N D A T O D R I V E G R O W T H GLOBAL BRANDS INSIGHTS INNOVATION DIGITAL FSM________ NPS
  • 36.
    S E PT E M B E R 7 , 2 0 1 6 M O L S O N C O O R S B R E W I N G C O M PAN Y B AR C L AY S G L O B AL C O N S U M E R S TAP L E S C O N F E R E N C E