MOLSON COORS BREWING CO [TAP:US] IMPORTANT DISCLOSURE/S & DISCLAIMER/S DISCLAIMER This presentation has been prepared by Elevation Capital Management Limited (“Elevation To the maximum extent permitted by law, neither Elevation Capital nor any of Elevation Capital’s Capital”) for distribution to clients of Elevation Capital in New Zealand and other jurisdictions to directors, employees, shareholders, subsidiaries, agents, advisers or any other person shall have whom, under relevant law, this presentation lawfully may be distributed. It may not be distributed any liability to any person for any loss (including, without limitation, any liability arising from in any other jurisdiction or to any other persons. any fault or negligence on the part of Elevation Capital or any of Elevation Capital’s directors, employees, shareholders, subsidiaries, agents, advisers or any other person) arising in respect of The information, investment views and recommendations in this presentation are provided or in relation to this presentation or any of the Information. for general information purposes only. To the extent that any such information, views, and recommendations constitute advice, they do not take into account any person’s particular Certain Information used in this presentation has been derived or obtained from filings made with financial situation or goals and, accordingly, do not constitute personalised financial advice under the Securities and Exchange Commission (“SEC”) or other regulatory authorities and from other the Financial Advisers Act 2008, nor do they constitute advice of a legal, tax, accounting or other third party sources. Elevation Capital has not sought or obtained consent from any third party to nature to any person. Elevation Capital recommends that recipients seek advice specific to their use any such Information. The use of any such Information should not be viewed as indicating circumstances from their adviser before making any investment decision or taking any action. the support of such third party for the views expressed in this presentation by Elevation Capital or Elevation Capital’s endorsement of such third party Information. No warranty is made that any Information, whether derived or obtained from filings made with the SEC, any other regulatory NON-RELIANCE, NO WARRANTIES, NO LIABILITY agency, from any third party or otherwise, is accurate. No audit or review has been undertaken by an independent third party of this presentation or the Information. This presentation does not, and does not attempt to, contain all material or relevant information about all companies/stocks referred to in this Presentation or other matters referred to in this presentation. The presentation is published in good faith and is based on publicly available information. Information and opinions contained in this presentation reflect a judgment at the FORWARD-LOOKING STATEMENTS date of publication by Elevation Capital and are subject to change without notice. Elevation This presentation contains forward-looking statements. All statements contained in this Capital is under no obligation to update or keep current any of the information in this publication. presentation that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words “anticipate,” “believe,” “expect,” “possible,” “potential,” No representation or warranty, express or implied, is made as to the fairness, accuracy, “opportunity,” “estimate,” “plan,” and similar expressions are generally intended to identify completeness, or correctness of the information, assumptions, views, opinions, statements, data forward-looking statements. Forward-looking statements are subject to various risks and or conclusions contained, referred to, or reflected in, or supplied or communicated orally or in uncertainties. Nothing in this presentation is a promise or representation as to the future. writing to any person in connection with, this presentation (together, the “Information”), or as to Statements or assumptions in this presentation as to future matters may prove to be incorrect. the reasonableness of such Information. Nothing in this presentation should be construed as a Neither Elevation Capital nor any of Elevation Capital’s directors, employees, shareholders, solicitation to buy or sell any security or other product, or to engage in or refrain from doing so subsidiaries, agents, advisers or any other person makes any representation or warranty as to or engaging in any other transaction. the accuracy of such statements or assumptions. Circumstances may change and the contents of 2 IMPORTANT DISCLOSURE/S & DISCLAIMER/S this presentation may become outdated as a result. No audit or review has been undertaken by Elevation Capital is the manager of the Elevation Capital Value Fund (“Fund”). Copies of the an independent third party of the assumptions, data, results, calculations and forecasts contained Product Disclosure Statement (“PDS”) & Statement of Investment Policy (“SIPO”) in respect of the in or referred to in this presentation. Fund are available on request from: Mail: PO Box 28053, Remuera, Auckland 1541, New Zealand; CONCERNING INTELLECTUAL PROPERTY Email: [email protected] Phone: +64 9 379 6493 All registered or unregistered service marks, trade marks and trade names referred to in this presentation are the property of their respective owners, and Elevation Capital’s use in this or via the Disclose Register: presentation does not imply an affiliation with, or endorsement by, the owners of these service https://disclose-register.companiesoffice.govt.nz marks, trade marks and trade names. At the date of this presentation (21 December 2018), Elevation Capital, Elevation Capital Value Fund and accounts managed by Elevation Capital and other persons associated with Elevation CONCERNING ELEVATION CAPITAL Capital may own (legally, beneficially or both) and/or have an interest (economic or otherwise) in Elevation Capital is registered as a financial service provider in New Zealand under the Financial securities of the Issuer referenced. Elevation Capital is under no obligation to update readers of Service Providers (Registration and Disputes Resolution) Act 2008 (FSP# 9601). Christopher its holdings in the Issuer referenced. Swasbrook is also registered under that Act (FSP# 110649); however, he is not an authorised financial adviser for the purposes of the Financial Advisers Act 2008. Despite such registration, Past performance is not an indication of future results. neither Elevation Capital nor Mr Swasbrook is providing any personalised financial advice to any person as a result of this presentation. 3 “I AM A FIRM BELIEVER IN THE PEOPLE. IF GIVEN THE TRUTH, THEY CAN BE DEPENDED UPON TO MEET ANY NATIONAL CRISIS. THE GREAT POINT IS TO BRING THEM THE REAL FACTS, AND BEER.” - ABRAHAM LINCOLN 4 MOLSON COORS BREWING CO [TAP:US] INTRODUCTION 5 OVERVIEW ■■ Molson Coors Brewing Company (TAP:US, Market Capitalisation = USD 14.0B*) is the 6th largest brewer in the world by volume**. MARKET CAPITALISATION (USD BLN) AND BEER SALES (M HL) $140B 700 Market Capitalisation 2017 Beer Sales 2 600 $100B 500 $80B 400 $60B 3 $40B 2 Market Capitalisation (USD B) Capitalisation Market 2017 Volume (M Hectolitres) Volume 2017 2 100 $0B 0 nbev Heineken Ambev eer Carlsberg M oors T Beiji anjing Kirin Asahi Holdings Brewry o Brewery o * As at 23 November 2018 ** Based on 2017 figures 6 THE CREATION OF TODAY’S MOLSON COORS 2008 – Molson Coors and SABMiller combined their US operations to create 1786 – Molson Brewery 1945 – Became MillerCoors – The 2nd largest brewer in the founded in Montreal – a Public Traded US (Molson Coors owns 42% economical The oldest brewery in Company interest, and 50% voting power) North America 2005 – Molson merged with 2016 – Molson Coors acquires Coors to form Molson Coors remaining 58% of the MillerCoors Brewing Company - creating JV from SABMiller when SABMiller the world's fifth largest brewer was acquired by AB Inbev 1873 – Adolph Coors 1975 – Became opens the Golden a Publicly Traded Brewery in Golden, Company Colorado 7 HOLDING COMPANY STRUCTURE & OWNERSHIP Class A Common Stock and Class A Exchangeable Shares Class A Common Stock Hold the majority of voting rights (TAP/A.US) Class A shareholders elect 12 of the 15 members of the Board of Directors 2,562,668 shares Entities controlled by the Molson family and the Coors family together control more than 90% of the Class A common stock and Class A exchangeable shares Class A Exchangeable Shares (TPX/A:CN) 2,757,201 shares Class B Common Stock and Class B Exchangeable Shares Hold less voting rights Class B shareholders elect 3 of the 14 members of the Board of Directors Class B Common Stock Class B shares are held by institutions and the general public (TAP.US) 195,644,139 shares Class B Exchangeable Shares (TPX/B:CN) 14,807,312 shares Long-Term Debt Consolidated Market Cap Molson Coors Brewing Company US$ 10.6B** ~US$ 14.0B* (Listed on NYSE) Molson Coors Canada Molson Coors Europe MillerCoors Molson Coors International Operating in Canada Operating in Bosnia- Operating in the US Operating in Asia, Continental Europe Herzegovina, Bulgaria, Croatia, (excluding Central Europe), Latin America Czech Republic, Hungary, (including South America), the Caribbean Montenegro, Republic of Ireland, (excluding Puerto Rico) and Australia Romania, Serbia, Slovakia and UK * As at 23 November 2018 8 ** As at 30 September 2018 HISTORY - CENTURIES-OLD HERITAGE (1) ■■ Molson