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Molson Coors Brewing Company

September 2006

Leo KielyChief Executive Officer


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Forward Looking Statements

This presentation includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as “looking ahead,” “anticipates,”“estimates” and other terms with similar meaning. It also includes financial information, of which, as of the date of this presentation, the Company’s independent auditors have not completed their audit. Subsequent events may occur or additional information may arise that could have an effect on the final year-end financial information. Although the Company believes that the assumptions upon which the financial information and 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 projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission. These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; unanticipated expenses, margin impact and other factors resulting from the implementation of our new supply chain process; and increases in cost generally. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. We do not undertake to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

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Agenda

• Global beer industry “snapshot”

• Molson Coors position in global beer

• MCBC long-term strategy: Strengthening Our Base– Brand building

– Strengthening Financial Foundation

– Building global capabilities

– Establishing a winning culture

• Q&A

We believe the best days of Molson Coors are yet to comeWe believe the best days of Molson Coors are yet to come..

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Global Beer Today – An Industry Snapshot

The Global “Top Four” Brewers…

• Currently about 100 million hls larger than the balance of the top 10 global brewers

• Significantly larger earnings, cash flow and market cap

• Players in many more global markets

• Greater exposure to attractive emerging market growth

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Molson Coors -- Position Among Global Peers

• Mid-sized brewer (2005 consolidated volume = 48 million hls)

• Mature market profile

• Three key geographies: Canada, U.S., U.K.

• Coors Light is leading global brand: successful “local” brand with strong international potential

• Strong regional brands round out strategic brand portfolio in each of our key geographies

We must secure core markets, achieve global readiness,We must secure core markets, achieve global readiness,and invest wisely in both!and invest wisely in both!

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Strengthening Our Base for the Future

• Be great brand builders

• Strengthen our financial foundation

• Build global capabilities

• Establish a winning and inspired culture

Doing these things well will allow us to become aTop-Performing Global Brewer

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Strengthening Our Base – Growing a Global Brand

Growing Coors Light into a truly global brand

• Global move toward lighter, colder, more refreshing beers plays to Coors Light strengths

• Success in establishing Coors Light as strong brand in Canada, Caribbean, strong start in U.K. and Ireland

• Applying similar model in Mexico, China, other opportunity markets

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Strengthening Our Base – Leveraging Local Brands

Leveraging the success of strategic, local brands

• U.S. – Coors Light growth accompanied by strong trends for Keystone Light and Blue Moon --momentum driven by “cold” positioning, solid sales execution

• Canada – Unleashing Coors Light -- improving Molson Canadian -- strategic brand performance above industry

• U.K. – Market-leading Carling is the brand to beat --category innovator and leader in “extra cold” lager segment

Tim WolfGlobal CFO


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Financial Headlines

• Strengthening financial foundation in a challenging cost, competitive environment

• Ahead of schedule: cost structure reductions, synergies

• Solid progress developing next phase of cost saves

• Driving value through profit, cash generation

• Building global capabilities in operations, go-to-market, business support

Focus on Strengthening Our BaseFocus on Strengthening Our Base

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Accelerated Delivery of Merger Synergies

........ 50%

5040

5950

6656

85

59 60+

2005 2006 (Est.) 2007 (Est.)Initial Estimates (3/05) Revised Est. (3/06) Current Est. (9/06)

Total Annualized Synergies in Year Three: $175 million

$ in millions

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Goal: Reduce Total Costs, Improve Cost Mix

Result: greater flexibility, business strengthResult: greater flexibility, business strength

Tota

l Cos

ts

Time

Fixed Costs

Variable Costs

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Initiatives Reduce Fixed-Cost Structure

U.K. restructurings: supply chain, back office– Annualized fixed cost savings: ~$32 million

– 9% reduction in U.K. fixed-cost structure

• U.S. closed/sold Memphis brewery, constructing Shenandoah, Va., brewing capacity

– Memphis: $30 million P&L savings, 80% fixed

– Shenandoah savings: $30+ million cash, $13 million P&L

Permanent reductions deliver longPermanent reductions deliver long--term benefitsterm benefits

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Post-Synergy Cost Opportunities at least $75 million

• Beyond $175 million merger synergies

• Largest area: North American brewing, logistics– Structural differences

– Micro analysis

– Benchmarking

More resources to invest or drop to bottom lineMore resources to invest or drop to bottom line

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• Largest area: North American brewing, logistics– Global Manufacturing Strategy

Best-in-class performance

U.K. breweries: utilities

Canada can packaging lines

Shenandoah brewing

Largest opportunity: packaging productivity


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• Largest area: North American brewing, logistics– Materials

Alternative designs: primary, secondary packaging

Agricultural commodity yields

New supply arrangements


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• Largest area: North American brewing, logistics– Logistics

Controlled temperature shipping

Carrier changes

Staff reductions

Centralization of warehouse services

Tighter keg asset management

Full review planned for March 2007 analyst/investor meetingsFull review planned for March 2007 analyst/investor meetings

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Goal: Grow Profit, Available Cash…

• 1st Half 2006: grew earnings despite cost inflation

• Generated ~$270 million available cash by end of August

• Driven by cash disciplines, focus across the company

– Leader compensation tied to cash generation

• Expected 2007 corporate interest: $15 million lower

…… to further strengthen Molson Coors and deliver valueto further strengthen Molson Coors and deliver value

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Cash Use Priorities Shift by Next Summer

Current priority

• Pay debt down to ~$2 billion, net of cash

Then (next summer)

• Short-term option: opportunistic stock repurchases

• Long-term, high-return, selective growth initiatives

– Approach: disciplined process focused on value

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Long-term, high-return, selective growth initiatives

• Molson Coors merger

• Creemore Springs purchase

• Moncton brewery construction

• Shenandoah brewery build-out

• U.K. dispense capabilities

• Partnerships

• JVs

Cash use is key to building shareholder value over timeCash use is key to building shareholder value over time

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Building Global Capabilities to Drive Value

• Operations

– Memphis, Shenandoah, I/T platform, new cost initiatives

• Go-to-market capabilities

– Sales processes/systems, sharing best practices

• Business support

– Centers of excellence, shared services, common processes

– Corporate G&A: invest this year, reduce by $15+ million in 2007

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Stronger Financial Foundation, Global Capabilities

Financial foundation

• Reduce costs

• Drive profit

• Generate cash

• Repay debt

Global capabilities

• Operations

• Go-to-market

• Business support

Strengthening Our Base to Build ValueStrengthening Our Base to Build Value

Leo KielyChief Executive Officer


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Strengthening Our Base – Winning Culture

• Externally -- Connect with consumers with exciting, refreshing and relevant brands

• Internally -- Build a winning culture, attitude that drives high-performance behavior:

– Canada: Improved customer service levels -- strong growth of strategic brands -- delivering cost savings

– U.S.: solid sales execution driving volume – continued progress attacking costs

– U.K: setting standards for innovation -- cutting costs and growing volume in tough business environment


September 2006

molson coors brewing company - iis windows...

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