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TAP Molson Coors Sept 2013 Investor Slide Deck Powerpoint PPT PDF

TAP Molson Coors Sept 2013 Investor Slide Deck Powerpoint PPT PDF

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TAP Molson Coors Sept 2013 Investor Slide Deck Powerpoint PPT PDF
TAP Molson Coors Sept 2013 Investor Slide Deck Powerpoint PPT PDF

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Molson Coors Brewing Company Barclays Back-to-School Consumer Conference September 4, 2013

Chief Financial Officer Molson Coors Brewing Company

Gavin Hattersley

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Forward-Looking Statement
Forward-Looking Statements: This presentation may include 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”). These factors include, among others, pension plan costs; availability or increase in the cost of packaging materials; our ability to maintain manufacturer/distribution agreements; impact of competitive pricing and product pressures; our ability to implement our strategic initiatives, including executing and realizing cost savings; changes in legal and regulatory requirements, including the regulation of distribution systems; increase in the cost of commodities used in the business; our ability to maintain brand image, reputation and product quality; our ability to maintain good labor relations; changes in our supply chain system; additional impairment charges; the impact of climate change and the availability and quality of water; the ability of MillerCoors to integrate operations and technologies; lack of full-control over the operations of MillerCoors; the ability of MillerCoors to maintain good relationships with its distributors; and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-K for the year-ended December 31, 2012, which are available from the SEC. 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 forwardlooking 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. Reconciliations to Nearest U.S. GAAP Measures: The following presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the Company's website at MolsonCooors.com (in the “Investor Relations" section) which reconciles our results as reported under Generally Accepted Accounting Principles and the non-GAAP financial measures included in the following presentation.

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Agenda • Molson Coors global overview • Historical performance context − Steady. growing pretax profit. stable EBITDA − Substantial cash generation and cash return to shareholders − Growing total shareholder returns • Growth strategy • Driving total shareholder returns − Brand-led profit growth − Cash generation − Cash and capital allocation 4 . even in difficult times − Strong.

Panama. Costa Rica. Paraguay LATIN AMERICA & CARIBBEAN Coors Light CHINA Coors Light Carling = CORE MARKETS = GLOBAL MARKETS 5 . Caribbean.Molson Coors: Core Market Strengths + Emerging Global Presence CANADA 39% Share Molson Canadian Coors Light WESTERN EUROPE Staropramen EUROPE Carling Coors Light Staropramen Bergenbier Jelen Kamenitza Ozujsko Niksicko Borsodi RUSSIA Carling Staropramen US (MILLERCOORS) 29% Share Coors Light Miller Lite Blue Moon SPAIN Carling UKRAINE Staropramen Carling JAPAN Zima Corona Blue Moon INDIA Cobra Iceberg Mexico.

GAAP earnings.S.4% 4. Totals may not sum due to rounding.8% 10.9% 11.3% 2012 Pro Forma Underlying Operating Income1 4.4% 27.1% 2.6% Does not include underlying operating losses for Corporate and MCI.1% MillerCoors (42%) Central Europe UK Canada MCI 38.Volume.0% 45. GAAP measures on our website. Non-GAAP underlying income is calculated by excluding special and other non-core items from the nearest U.4% 46. (1) 6 .0% 21. Net Sales and Profitability by Geography 2012 Pro Forma Worldwide Beer Volume 14. See reconciliation to nearest U.8% 2012 Pro Forma Net Sales 16.8% 43.S.1% 14.

S. GAAP net income attributable to MCBC .Net Income Variability Masks… ($millions) Net Income Attributable to MCBC $720 $708 $676 $800 $700 $600 $500 $400 $300 $200 $100 $0 2006 2007 2008 $361 $492 $379 $443 $314 $185 2009 2010 2011 2012 1H 12 1H 13 7 U.

S. GAAP earnings.…Underlying Earnings Growth in Tough Times… MCBC Underlying Pretax Income ($millions) $800 $646 $642 $600 $441 $400 $200 $0 $541 $719 $794 $821 $865 $406 $383 2005 2006 2007 2008 2009 2010 2011 2012 1H 12 1H 13 Pretax income growth over the past 7 years totaled 96% Non-GAAP underlying income is calculated by excluding special and other non-core items from the nearest U. See reconciliation to nearest U. 8 .S. GAAP measures on our website.

106 $1.S.200 $1. depreciation and amortization) is calculated excluding special and other non-core items from U.S. to nearly $8/share * Non-GAAP underlying EBITDA (Earnings before interest.091 $1. GAAP earnings. Growing EBITDA $1. 9 .267 $1.398 Underlying EBITDA per share: +13% in 2012. See reconciliation to nearest U.212 $1.100 $1. Includes 42% of MillerCoors. Strong.000 $800 $600 $400 $200 $0 2006 2007 2008 2009 2010 2011 2012 1H 12 1H 13 $630 $690 $1. GAAP measures on our website.400 $1. taxes.600 $1.127 ($millions) Underlying EBITDA* $1.… And Steady.

76 $0.08 $1.64 $1. plus $321 million share repurchases in 2011 10 .Growing Cash Returns Via Dividends ($millions) $250 $200 $150 Dividends Paid (Annual Per Share) $0.28 $100 $50 $0 2006 2007 2008 2009 2010 2011 2012 7 ½ year total: $1.3 billion.92 $0.24 $1.64 $0.

Molson Coors Growth Strategy Maximizing Growth and Profit in Developed Markets Accelerating Growth in Developing Markets M&A Strong Cost Management Discipline 11 .

Value Czech Republic #2 Market Position Czech Republic Slovakia (2) Hungary Slovakia (1) #3 Market Position Hungary #3 Market Position Romania Romania #3 Market Position Croatia #1 Market Position Croatia Bosnia (2) Serbia Bulgaria Bulgaria #1 Market Position Montenegro BosniaHerzegovina (1) #1 Market Position Brewery Montenegro #1 Market Position Serbia #1 Market Position Source: Rank based on market volume data from Nielsen (1) Bosnia-Herzegovina and Slovakia markets served by breweries in adjacent countries 12 .Central Europe Acquisition: Growth.

GAAP earnings.S. 1Non-GAAP underlying 13 .MCI: Growing Volumes & Reducing Investment (000s HL) MCI Total Volume MCI Underlying Pretax Income(Loss)/HL1 $0 ($5) 2.000 1. HL includes financial and royalty volume. GAAP measures on our website. See reconciliation to nearest U.S.000 ($20) ($25) ($30) 500 0 2009 2010 2011 2012 ($35) 2009 2010 2011 2012 2013 2014 2015 2016 pretax income (loss) is calculated by excluding special and other non-core items from the nearest U.500 ($10) ($15) 1.

Driving TSR with PACC Model Brand-Led Profit Growth Cash Generation Cash and Capital Allocation • Core brand investments • Innovation • Cost reductions • Revenue and mix management • Capital expenditure efficiencies • Working Capital improvements • Disciplined cash use • Return-driven criteria • Short-term priority: deleverage Profit After Capital Charge TSR 14 .

Molson Coors Growth Enablers – 2013 and Beyond Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Delivering Value Added Innovation Investing Behind Core Brands Driving Share in Above Premium Drive Cost Savings & Commercial Excellence 15 .

Delivering Value Added Innovation .

$100 Million* of Gross Profit from Innovation Adding News & Excitement Behind Core Brands Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Delivering New Options for Changing Preferences *Past 3 years (2010-2012) 17 .

Investing Behind Our Core Brands .

Owns Rocky Mountain Cold Refreshment Globally Brand-Led Profit Growth US Cash Generation Cash and Capital Allocation Canada UK 19 .Coors Light .

“Made from Canada” – Molson Canadian Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Absolute Volume & Market Share – Molson Canadian (000 HL) 20 .

0% 5.0% 0.0% 10.0% 15.“Brilliantly British Refreshment” .Carling Regaining Momentum Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Absolute Volume & Market Share – Carling UK (000 HL) Carling % Share of Beer 20.0% Total Trade On-Trade 1H 2012 1H 2013 21 Off-Trade .

“The Spirit of Prague” Staropramen Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Absolute Volume & Market Share– Staropramen (000 HL) 22 .

Miller Lite Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Absolute Volume & Market Share – Miller Lite (000 HL) 23 .A Commitment to Great Taste & Innovation .

Driving Share in Above Premium .

America’s Largest Craft Brewer .Tenth and Blake Brand-Led Profit Growth Cash Generation Cash and Capital Allocation ® 25 11 .

Canada Expands Above Premium Portfolio Brand-Led Profit Growth Cash Generation Cash and Capital Allocation 26 .

Building AP Portfolio in Europe -Led by UK Brand-Led Profit Growth Cash Generation Cash and Capital Allocation 27 .

Driving TSR with PACC Model Brand-Led Profit Growth Cash Generation Cash and Capital Allocation • Core brand investments • Innovation • Cost reductions • Revenue and mix management • Capital expenditure efficiencies • Working Capital improvements • Disciplined cash use • Return-driven criteria • Short-term priority: deleverage Profit After Capital Charge TSR 28 .

200 $1.000 $800 $600 $400 $200 $0 2005 Cumulative Annualized Cost Savings 2006 2007 2008 Molson Coors 2009 2010 42% of MillerCoors 2011 2012 Nearly $1.>$1 Billion of Cost Reductions Fuel Top-Line and Profit ($millions) Brand-Led Profit Growth Cash Generation Cash and Capital Allocation $1.1 billion of cost savings delivered in past 8 years 29 .

30 .K. International Reduced overhead expenses.Ongoing Cost Efficiencies Will Fuel Growth Investments • Long-term sustainability Brand-Led Profit Growth Cash Generation Cash and Capital Allocation − Savings of $40-$60 million/year for at least the next 5 years* − Includes Central Europe deal synergies • Driven through: efficiency and effectiveness − − − − Restructuring U. primarily Canada Global procurement Global Standardization.. including I/T Substantial % of savings reinvested for profitable growth * Excludes any additional MillerCoors cost savings.

US and Europe Higher than maintenance capital − Maintain spend levels until at least 2015 • Working capital improvements − Accounts payable − Accounts receivable − Inventories *Including 42% of MillerCoors 31 .Capital Efficiency Drives Cash and Value • Capital Spending − 2013 outlook: $450-$500 million* • • • • Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Business transformation in US Information systems in Europe Innovation in Canada.

Working Capital and Asset Intensity: $300 Million Target Days Sales Outstanding 70 68 66 64 62 60 58 56 2009 2010 2011 2012 70 60 50 40 30 20 10 0 Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Days Payables Outstanding 2009 2010 2011 2012 Days Inventories Outstanding 40 38 36 34 32 30 2009 2010 2011 2012 70 60 50 40 30 20 10 0 2009 Cash Conversion Cycle 2010 2011 2012 32 Note: Cash Conversion Cycle=DSO+DIO-DPO .

000 $800 MCBC Underlying Free Cash Flow $887 $681 $865 $700 $618 $600 $400 $200 $0 2006 2007 $426 $315 $508 2008 2009 2010 2011 2012 2013F 33 Underlying free cash flow is defined as operating cash flow. Capital Efficiency/Structure Drive FCF ($millions) Brand-Led Profit Growth Cash Generation Cash and Capital Allocation $1.Profit.S. plus or minus investing cash from/to MillerCoors and plus or minus the cash impact of special and other non-core items. . GAAP measures on our website. See reconciliation to nearest U. less capital spending.

74 $1.66 $2.85 $1. plus or minus investing cash from/to MillerCoors and plus or minus the cash impact of special and other non-core items.46 2010 2011 2012 1H 12 1H 13 34 Underlying free cash flow is defined as operating cash flow.99 $4. .S.74 $1.76 $5 $4 $3 $2 $1 $0 2006 2007 2008 2009 $3. less capital spending.32 $2. See reconciliation to nearest U.73 $3. GAAP measures on our website.Business Drives Substantial FCF Per Share ($millions) Brand-Led Profit Growth Cash Generation Cash and Capital Allocation MCBC Underlying Free Cash Flow/Share $4.

4x 2 2.0x 3.7x <2x 2006 2007 2008 2009 2010 2011 2012 Pro Forma 1 2015 Goal S&P Adjusted Debt / EBITDA 1 Total debt Net debt to EBITDA less cash.6x 0. 35 .6x 2.Short-Term Cash Use Priority: Deleverage Debt/EBITDA 5x 4x 3x 2x 1x 0x 2.6x 1.9x 2.4x 0.8x Brand-Led Profit Growth Cash Generation Cash and Capital Allocation 4.0x 3.8x 2.9x 1. See reconciliations to nearest US GAAP measures on our website.8x 3. currently not published by S&P. plus interest and depreciation & amortization expense (incl.8x 1. 42% of MillerCoors). 2 2012 pro forma S&P leverage calculation based on internal estimates. divided by the sum of underlying pretax income.8x 0.

Key Value Driver: Disciplined Cash Use • Cash use priorities Brand-Led Profit Growth Cash Generation Cash and Capital Allocation − Strengthened balance sheet by reducing liabilities − Returning cash to shareholders − Brand-led growth opportunities • Short-medium term focus: Balance sheet. especially debt − Returning debt ratios to pre-Central Europe levels − Constant dividend for time being − Share buy-back program not being considered at this time • Consistent return-driven criteria − Short-term earnings accretion − ROIC/WACC within 3-5 years 36 .

Driving Total Shareholder Return Brand-Led Profit Growth Cash Generation Cash and Capital Allocation • Molson Coors global overview • Historical performance context − Steady. even in difficult times − Strong.Strong Base. growing pretax profit. stable EBITDA − Substantial cash generation and cash return to shareholders − Growing total shareholder returns • Growth strategy Brand-Led Profit Growth Cash Generation Cash and Capital Allocation Profit After Capital Charge TSR 37 .

2013 .Q&A Molson Coors Brewing Company Barclays Back-to-School Consumer Conference September 4.

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