Molson Coors Reports Higher Underlying After-Tax Income and EBITDA for the First Quarter 2014

  Molson Coors Reports Higher Underlying After-Tax Income and EBITDA for the
  First Quarter 2014

First Quarter 2014 Highlights ^ (1)

  *Worldwide beer volume: 11.9 million hectoliters, decreased 0.1%
  *Net sales: $816.0 million, decreased 1.5%, but was up 0.3% on a constant
    currency basis
  *U.S. GAAP net income from continuing operations attributable to MCBC:
    $165.3 million ($0.89 per diluted share), an increase of $135.9 million
  *Underlying after-tax income: $102.2 million, increased 115.2% ($0.55 per
    diluted share)
  *Underlying EBITDA (earnings before interest, taxes, depreciation and
    amortization): $251.2 million, increased 20.4%

Business Wire

DENVER & MONTREAL -- May 7, 2014

Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a 115.2
percent increase in underlying after-tax income for the first quarter 2014,
driven by improved performance in all of its businesses, along with lower
interest expense versus a year ago. U.S. GAAP net income from continuing
operations attributable to MCBC increased $135.9 million due to strong
underlying profit performance and an $81.2 million positive change in special
and other non-core items in the quarter. (See Special and Other Non-Core Items
below for details.) Worldwide beer volume decreased 0.1 percent, and net sales
declined 1.5 percent in the first quarter of 2014.

Molson Coors president and chief executive officer Peter Swinburn said, “In
the 1^st quarter, Molson Coors more than doubled underlying after-tax income,
grew underlying EBITDA more than 20%, and expanded gross, operating and
after-tax margins. Underlying earnings per share also more than doubled. U.S.
GAAP after-tax earnings increased more than $135 million versus a year ago.
The improvement across our company was consistent, with each of our businesses
achieving improved operating margins, pretax earnings and EBITDA performance
in the quarter.”

Swinburn added, “Our strong focus on our core brands, portfolio shift to above
premium and value creating innovation is paying dividends. This strategy is
underpinned by our Profit After Capital Charge, or PACC model, which aligns
our entire team and each of our cash-use decisions with our priorities."

Underlying EBITDA and Free Cash Flow

Underlying EBITDA reached $251.2 million in the first quarter, a 20.4 percent
increase from a year ago.

Underlying free cash flow through the first quarter of 2014 was a cash use of
$64.6 million due to normal seasonality. This represents an increase in cash
used of $15.7 million from the prior year, driven by timing of working capital
changes, partially offset by higher net income.

Foreign Exchange

The Company’s first quarter underlying consolidated pretax income includes a
slight positive impact from foreign currency movements. Foreign currency was
$2.8 million positive in Europe and $2.4 million negative in Canada.

Effective Income Tax Rates

The Company’s first quarter effective income tax rate was 3 percent on a
reported basis and 5 percent on an underlying basis, with the difference
driven by special and other non-core items. On an underlying basis, our
effective tax rate was approximately 6 percentage points lower than prior year
primarily due to the release of valuation allowances in Europe and the
favorable resolution of uncertain tax positions in the quarter.

Debt

Total debt at the end of the first quarter was $3.79 billion, and cash and
cash equivalents totaled $337.6 million, resulting in net debt of $3.46
billion, which is $685 million lower than the prior year.

First Quarter Business Segment Results

The following are the Company’s first quarter 2014 results by business
segment:

United States Business (MillerCoors)^(2)

Molson Coors underlying U.S. segment equity income increased 4.9 percent to
$123.1 million in the quarter.

MillerCoors Operating and Financial Highlights

MillerCoors underlying net income for the quarter increased 7.4 percent to
$291.9 million, driven by positive pricing and sales mix, cost savings, and
lower marketing spending primarily due to timing differences versus last year.

MillerCoors domestic sales to retailers (STRs) declined 3.4 percent for the
quarter. Domestic sales to wholesalers (STWs) decreased 3.0 percent. Domestic
net revenue per hectoliter, which excludes contract brewing and
company-owned-distributor sales, grew 3.3 percent primarily due to favorable
net pricing and positive brand mix. Total company net revenue per hectoliter,
including contract brewing and company-owned distributor sales, increased 3.4
percent. Third-party contract brewing volumes decreased 4.5 percent.

Cost of goods sold (COGS) per hectoliter increased 3.8 percent, driven by
commodity and brewery inflation, lower volume and higher costs associated with
brand innovation. Marketing, general and administrative (MG&A) expense
decreased 6.4 percent, driven primarily by timing of media investments and
lower employee-related expenses.

Depreciation and amortization expenses for MillerCoors in the first quarter
were $79.1 million, and additions to tangible and intangible assets totaled
$107.2 million.

Canada Business

Canada underlying pretax income increased 20.5 percent to $35.3 million in the
quarter and increased 28.7 percent on a constant currency basis. Higher net
pricing and lower MG&A expense drove the increase in Canada, despite lower
volume in the quarter. A decrease in the Canadian dollar versus the U.S.
dollar resulted in a $2.4 million negative foreign exchange impact on
underlying pretax income in the quarter.

STRs decreased 5.7 percent on a reported basis in the first quarter, driven by
weak consumer demand and promotional challenges, as well as our change to a
Gregorian calendar and the loss of the Modelo brands this year. Excluding the
Modelo brands from our results this year and last year^(3), our market share
declined approximately one-half share point. First quarter sales volume for
Molson Coors Canada decreased 5.5 percent on a reported basis. Net sales per
hectoliter increased 1.5 percent in local currency, driven by positive net
pricing.

COGS per hectoliter increased 0.7 percent in local currency, driven by
fixed-cost deleverage and brewing and material inflation, partially offset by
cost savings. MG&A expense decreased 10.2 percent in local currency, driven by
results of cost savings initiatives and overhead cost reductions, along with a
year-over-year difference in the timing of marketing and sales spending.

Europe Business

Europe underlying pretax income increased $21.5 million to $16.2 million in
the quarter, driven by volume growth, cost savings, and a $2.8 million benefit
from favorable foreign currency movements.

Europe sales volume increased 5.6 percent, due to strong execution and
favorable weather this year. In the first quarter, we grew or maintained
volume in all of our markets in the region, with the exception of Serbia.
Europe net sales per hectoliter decreased 2.7 percent in local currency
primarily due to negative channel, customer and brand mix.

COGS per hectoliter decreased 8.0 percent in local currency as a result of
cost savings, fixed-cost leverage from higher volumes, and lower logistics
expenses.

MG&A expenses decreased 7.0 percent in local currency, due to lower overhead
costs and an $11.3 million non-core gain related to the favorable resolution
of an indirect-tax audit (excluded from Europe underlying pretax income),
partially offset by increased marketing and sales investments.

International Business

The International segment posted an underlying pretax loss of $3.0 million in
the first quarter, an improvement of $2.2 million from a year ago, due to
strong volume and profit growth in Mexico and Latin America, improved
performance in China, and lower overhead expenses.

Total International sales volume, including royalty volume, increased 13.7
percent, primarily due to strong Coors Light growth in Mexico and Latin
America and the addition of the Australia market, partially offset by industry
weakness in our Ukraine and Russia license markets. Net sales per hectoliter
increased 6.8 percent, driven by higher net pricing in China, the addition of
Australia, and contract brewing sales in India.

COGS per hectoliter increased 6.5 percent, due to the addition of Australia
and contract brewing volume in India. International MG&A expense decreased 2.0
percent, driven by lower overhead expenses.

Corporate

Underlying Corporate pretax expenses totaled $65.1 million for the first
quarter, a $16.4 million improvement versus the prior year driven by lower
interest expense due to debt repayments and lower G&A costs.

Change in Interim Period Accounting for Advertising Expenses

Effective the first quarter of 2014, we changed our policy for recognizing
advertising expenses during interim periods and have applied this change
retrospectively. The change in interim accounting affects the timing of
advertising expenses over interim periods but has no impact on full year
results. We have provided the impact to fiscal year 2013 quarterly results on
our investor relations website.

Special and Other Non-Core Items

The following special and other non-core items have been excluded from
underlying pretax earnings.

During the quarter, Molson Coors recognized special items resulting in a net
$52.5 million pretax benefit. This benefit was largely driven by $63.2 million
received from Modelo for the early termination of the Modelo Molson joint
venture in Canada. This receipt was partially offset by a charge of $4.9
million related to the accelerated amortization of the remaining carrying
value of the Modelo brand intangible asset in Canada. Additionally, we
recognized charges of $5.8 million during the quarter related to restructuring
programs.

During the quarter, MillerCoors reported $0.7 million in restructuring-related
special charges. Our portion of these charges is $0.3 million at our 42
percent economic ownership share.

Other non-core items resulted in $10.9 million of pretax income, which was
primarily driven by an $11.3 million gain associated with the release of an
indirect-tax reserve in Europe, partially offset by unrealized mark-to-market
losses on commodity hedges.

2014 First Quarter Conference Call

Molson Coors Brewing Company will conduct an earnings conference call with
financial analysts and investors at 11:00 a.m. Eastern Time today to discuss
the Company’s 2014 first quarter results. The Company will provide a live
webcast of the earnings call.

The Company will also host an online, real-time webcast of an Investor
Relations Follow-up Session with financial analysts and institutional
investors at 2:00 p.m. Eastern Time. Both webcasts will be accessible via the
Company’s website, www.molsoncoors.com. Online replays of the webcasts will be
available until 11:59 p.m. Eastern Time on August 6, 2014. The Company will
post this release and related financial statements on its website today.

Upcoming Investor Webcasts

The Company will host online, real-time webcasts in May and June at the
following events:

Gavin Hattersley, Molson Coors CFO, will present at the Goldman Sachs Global
Staples Summit in New York on Tuesday, May 13, 2014, at 10:05 a.m. Eastern
Time.

The Company will host its Annual Meeting of Stockholders on Wednesday, June 4,
2014, at 1:00 p.m. Eastern time. The meeting will take place in Denver at the
Ritz Carlton Hotel.

The Company will host a presentation to financial analysts in New York on
Wednesday, June 25, 2014. The presentation is scheduled for 2:00 p.m. to 3:30
p.m. Eastern time. Company executives participating in the New York
presentation will include Molson Coors CEO Peter Swinburn and CFO Gavin
Hattersley.

Live webcasts of all three investor events will be accessible via the Molson
Coors Brewing Company website, www.molsoncoors.com, on the Investors page. An
online replay of the presentation webcasts will be available within two hours
after the presentations.

Footnotes:

^(1) The Company calculates non-GAAP underlying after-tax income, underlying
EBITDA and underlying free cash flow by excluding special and other non-core
items from the nearest U.S. GAAP performance measure, which is net income from
continuing operations attributable to MCBC for both underlying after-tax
income and underlying EBITDA and net cash provided by operating activities for
underlying free cash flow. For further details regarding these adjustments,
please see the section “Special and Other Non-Core Items,” along with tables
for reconciliations to the nearest U.S. GAAP measures. Unless otherwise
indicated, all $ amounts are in U.S. Dollars and all quarterly comparative
results are for the Company’s fiscal first quarter ended March 31, 2014,
compared to the fiscal first quarter ended March 30, 2013. Additionally, all
per-hectoliter calculations exclude contract brewing and non-owned factored
beverage volume in the denominator but include the financial impact of these
sales in the numerator, unless otherwise indicated.

^(2) MillerCoors, a U.S. joint venture of Molson Coors Brewing Company and
SABMiller plc, was launched on July 1, 2008. Molson Coors has a 42 percent
economic interest in MillerCoors, which is accounted for using the equity
method. Molson Coors’ interest in MillerCoors results, along with certain
adjustments under U.S. GAAP, is reflected in “Equity Income in MillerCoors.”
This release includes reconciliation from MillerCoors Net Income to Molson
Coors Brewing Company Equity Income in MillerCoors and Non-GAAP U.S. Segment
Underlying Pretax Income (see Table 6).

^(3) Excludes the Modelo brands from our Canada STR results in first quarter
2014 and the prior year period. The Company terminated on February 28, 2014,
its joint venture that sold the Modelo brands in Canada, and control of the
brands reverted to Anheuser-Busch InBev.

Overview of Molson Coors

Molson Coors Brewing Company is one of the world’s largest brewers. The
Company’s operating segments include Canada, the United States, Europe, and
Molson Coors International (MCI). The Company has a diverse portfolio of owned
and partner brands, including signature brands Carling, Coors Light, Molson
Canadian and Staropramen. Molson Coors is listed as the beverage industry
sector leader on the 2013/2014 Dow Jones Sustainability World Index
(W1SGITRD), the most recognized global benchmark of sustainability among
global corporations. For more information on Molson Coors Brewing Company,
visit the company’s website, www.molsoncoors.com.

About Molson Coors Canada Inc.

Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Brewing
Company. MCCI ClassA and ClassB exchangeable shares offer substantially the
same economic and voting rights as the respective classes of common shares of
MCBC, as described in MCBC’s annual proxy and 10-K filings with the U.S.
Securities and Exchange Commission. The trustee holder of the special ClassA
voting stock and the special ClassB voting stock has the right to cast a
number of votes equal to the number of then outstanding ClassA exchangeable
shares and ClassB exchangeable shares, respectively.

Forward-Looking Statements

This press release 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”). These factors include, among
others, impact of competitive pricing and product pressures; health of the
beer industry and our brands in our markets; economic conditions in our
markets; pension plan costs; availability or increase in the cost of packaging
materials; our ability to maintain manufacturer/distribution agreements; our
ability to implement our strategic initiatives, including executing and
realizing cost savings; our ability to successfully integrate our Central
Europe business; 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; risks relating to operations outside
North America; success of our joint ventures; 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,
2013, which are available from the SEC. All forward-looking statements in this
press release 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.


Reconciliations to Nearest U.S. GAAP Measure

Molson Coors Brewing Company and Subsidiaries
Table 1: Underlying After-Tax Income
($ In millions, except per share data)
(Unaudited)
                                          
                                           Three Months Ended
                                            March 31, 2014  March 30, 2013(1)
U.S. GAAP: Income from continuing
operations attributable to MCBC, net of     $   165.3        $    29.4
tax
Per diluted share                           $   0.89         $    0.16
Add/(less):
Pretax special items, net                   (52.5       )    1.5
42% of MillerCoors special items, net of    0.3              —
tax^(2)
Acquisition and integration related         —                1.8
costs^(3)
Unrealized mark-to-market (gains) and       0.4              19.8
losses^(4)
Other non-core items^(5)                    (11.3       )    (1.2         )
Tax effects on non-GAAP items               —               (3.8         )
Non-GAAP: Underlying after-tax income       $   102.2       $    47.5    
Per diluted share                          $   0.55       $    0.26    

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
            
    (2)     Included in Equity Income in MillerCoors.
            
    (3)     Included in Marketing, General and Administrative Expenses.
            
            In Q1 2014, $0.5 million gain included in Other Income (Expense),
            net and $0.9 million loss included in Cost of Goods Sold. In Q1
    (4)     2013, $0.4 million gain included in Cost of Goods Sold, $29.7
            million loss included in Interest Expense and $9.5 million net
            gain included in Other Income (Expense), net.
            
            In Q1 2014, $11.3 million gain included in Marketing, General and
    (5)     Administrative Expenses. In Q1 2013, $1.2 million gain included in
            Other Income (Expense), net.
            

                                                                        
Molson Coors Brewing Company and Subsidiaries
Table 2: Underlying Pretax Income (Loss)
($ In millions)
(Unaudited)
                                                                      
                 Business                                                  Total
                 Canada    U.S.       Europe    MCI       Corporate    Consolidated
U.S. GAAP:
2014 1st Q
income (loss)
from             $ 88.3     $ 122.8     $ 27.0     $ (3.0 )   $ (65.5  )   $  169.6
continuing
operations
before income
taxes
Add/(less):
Pretax special   (53.0  )   —           0.5        —          —            (52.5     )
items, net
42% of
MillerCoors      —          0.3         —          —          —            0.3
special items,
net of tax^(1)
Unrealized
mark-to-market   —          —           —          —          0.4          0.4
(gains) and
losses^(2)
Other non-core   —          —           (11.3  )   —          —            (11.3     )
items^(3)
Non-GAAP: 2014
1st Q
underlying      $ 35.3   $ 123.1   $ 16.2   $ (3.0 )  $ (65.1  )  $  106.5  
pretax income
(loss)
Percent change
2014 1st Q vs.
2013 1st Q      20.5%     4.9%       N/M       42.3%     20.1%       94.7%
underlying
pretax income
(loss)
U.S. GAAP:
2013 1st Q
income (loss)
from             $ 28.4     $ 117.4     $ (5.2 )   $ (5.2 )   $ (102.6 )   $  32.8
continuing
operations
before income
taxes^(4)
Add/(less):
Pretax special   2.1        —           (0.9   )   —          0.3          1.5
items, net
Acquisition
and
integration      —          —           0.8        —          1.0          1.8
related
costs^(5)
Unrealized
mark-to-market   —          —           —          —          19.8         19.8
(gains) and
losses^(2)
Other non-core   (1.2   )   —           —          —          —            (1.2      )
items^(3)
Non-GAAP: 2013
1st Q
underlying      $ 29.3   $ 117.4   $ (5.3 )  $ (5.2 )  $ (81.5  )  $  54.7   
pretax income
(loss)
N/M = not meaningful

  (1)   Included in Equity Income in MillerCoors.
                                                                             
            In Q1 2014, $0.5 million gain included in Other Income
            (Expense), net and $0.9 million loss included in Cost of Goods
    (2)     Sold. In Q1 2013, $0.4 million gain included in Cost of Goods
            Sold, $29.7 million loss included in Interest Expense and $9.5
            million net gain included in Other Income (Expense), net.
                                                                             
            In Q1 2014, $11.3 million gain included in Marketing, General
    (3)     and Administrative Expenses. In Q1 2013, $1.2 million gain
            included in Other Income (Expense), net.
                                                                             
    (4)     Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
                                                                             
    (5)     Included in Marketing, General and Administrative Expenses.
                                                                             

                              
Molson Coors Brewing Company and Subsidiaries
Table 3: Underlying EBITDA
($ In millions)
(Unaudited)
                                                                         
                                Three Months Ended
                                March 31, 2014  March 30, 2013(1)  % change
U.S. GAAP: Net income
attributable to MCBC from       $   165.3        $    29.4           462.2  %
continuing operations
Add: Net income (loss)
attributable to                 (0.5        )    1.4                (135.7 )%
noncontrolling interests
U.S. GAAP: Net income (loss)    $   164.8        $    30.8           435.1  %
from continuing operations
Add: Interest expense           35.4             74.9                (52.7  )%
(income), net
Add: Income tax expense         4.8              2.0                 140.0  %
(benefit)
Add: Depreciation and           81.2             80.2                1.2    %
amortization
Adjustments included in         (63.4       )    21.9                N/M
underlying income^(2)
Adjustments to arrive at        (4.9        )    (29.7         )     (83.5  )%
underlying EBITDA^(3)
Adjustments to arrive at
underlying EBITDA related to    33.3            28.5               16.8   %
our investment in
MillerCoors^(4)
Non-GAAP: Underlying EBITDA     $   251.2       $    208.6         20.4   %
                                                                 
N/M= Not meaningful

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
                                                                             
    (2)     Includes adjustments to non-GAAP underlying income within the
            table above related to special and non-core items.
                                                                             
            Represents adjustments to remove amounts related to interest,
            depreciation and amortization included in the adjustments to
    (3)     non-GAAP underlying income above, as these items are added back
            adjustments to net income attributable to MCBC from continuing
            operations.
                                                                             
            Adjustments to our equity income from MillerCoors, which include
            our proportionate share of MillerCoors' interest, income tax,
    (4)     depreciation and amortization, specials, and amortization of the
            difference between the MCBC contributed cost basis and
            proportionate share of the underlying equity in net assets of
            MillerCoors.
                                                                             

                                             
Molson Coors Brewing Company and Subsidiaries
Table 4: Underlying Free Cash Flow
($ In millions)
(Unaudited)
                                             
                                               Three Months Ended
                                               March 31, 2014  March 30, 2013
U.S. GAAP: Net Cash Provided by Operating      $   149.7        $   118.4
Activities
Less: Additions to properties^(1)              (65.3       )    (68.3       )
Less: Investment in MillerCoors^(1)            (354.9      )    (331.8      )
Add: Return of capital from MillerCoors^(1)    259.5            222.4
Add: Cash impact of Special items^(2)          (57.1       )    8.2
Add: Costs related to the Central Europe       —                2.2
Acquisition^(3)
Add: MillerCoors investments in                1.3              —
businesses^(4)
Add: MillerCoors cash impact of Special        2.2             —           
items^(4)
Non-GAAP: Underlying Free Cash Flow            $   (64.6   )    $   (48.9   )
                                                                    

  (1)   Included in net cash used in investing activities.
                                                                             
            Included in net cash provided by operating activities and
    (2)     primarily reflects cash received for the early termination of
            MMI, as well as costs paid for restructuring activities.
                                                                             
    (3)     Included in net cash provided by operating activities and
            reflects acquisition and integration costs paid.
                                                                             
    (4)     Amounts represent our proportionate 42% share of the cash flow
            impacts.
                                                                             

                                             
MillerCoors LLC
Table 5: Underlying Net Income Attributable to MillerCoors
($ In millions)
(Unaudited)
                                             
                                               Three Months Ended
                                               March 31, 2014  March 31, 2013
U.S. GAAP: Net income attributable to          $   291.2        $     271.9
MillerCoors
Add: Special items, net                        0.7              —
Less: Tax effect of adjustments to arrive at   —               —
underlying after-tax income
Non-GAAP: Underlying net income attributable   $   291.9       $     271.9
to MillerCoors
                                                               
                                                                      

                                             
Molson Coors Brewing Company and Subsidiaries
Table 6: Underlying Equity Income in MillerCoors
($ In millions)
(Unaudited)
                                             
                                               Three Months Ended
                                               March 31, 2014  March 30, 2013
U.S. GAAP: Net Income Attributable to          $   291.2        $   271.9
MillerCoors
Multiply: MCBC economic interest (%) in        42          %    42          %
MillerCoors
MCBC proportionate share of MillerCoors net    $   122.3        $   114.2
income
Add: Amortization of the difference between
MCBC contributed cost basis and the            1.1              1.2
underlying equity in net assets of
MillerCoors^(1)
Add: Share-based compensation adjustment^(2)   (0.6        )    2.0         
U.S. GAAP: Equity Income in MillerCoors        $   122.8        $   117.4
Add: Proportionate share of MillerCoors        0.3              —
special items
Less: Tax effect on special items              —               —           
Non-GAAP: Underlying Equity Income in          $   123.1       $   117.4   
MillerCoors
                                                                    

            Our net investment in MillerCoors is based on the carrying
            values of the net assets contributed to the joint venture, which
            is less than our proportionate share of underlying equity (42%)
            of MillerCoors (contributed by both Coors Brewing Company and
  (1)   Miller Brewing Company) by $665.1 million as of March 31, 2014.
            This basis difference, with the exception of certain
            non-amortizing items (goodwill, land, etc.), is being amortized
            as additional equity income over the remaining useful lives of
            the contributed long-lived amortizing assets.
                                                                             
            The net adjustment is to eliminate all share-based compensation
    (2)     impacts related to pre-existing SABMiller plc equity awards held
            by former Miller Brewing Company employees employed by
            MillerCoors.
                                                                             

                 
Molson Coors Brewing Company and Subsidiaries
Table 7: Constant Currency Results: Constant Currency Reporting Net Sales,
U.S. GAAP Pretax
Income and Underlying Pretax Income

U.S. GAAP: Net Sales (In millions)
                 
                   Three Months Ended
                                         Reported %  Foreign    Constant
                                                                    Currency
                                           Increase     Exchange    % Increase
                   March 31,   March 30,   (Decrease)   Impact      (Decrease)
                   2014        2013                     ($)
Canada             $ 347.1     $ 395.6     (12.3  )%    $ (33.2 )   (3.9   )%
Europe             437.6       406.4       7.7    %     19.4        2.9    %
MCI                32.2        27.0        19.3   %     (1.1    )   23.3   %
Corporate          0.3         0.3         —      %     —           —      %
Eliminations^(1)   (1.2    )   (0.8    )   50.0   %     —          50.0   %
Molson Coors
Consolidated       $ 816.0    $ 828.5    (1.5   )%    $ (14.9 )   0.3    %
Total
                                                         

            Reflects intercompany sales from Europe to MCI, and the offset
  (1)   is included within MCI cost of goods sold. These amounts are
            eliminated in the consolidated totals.
                                                                             

                                                                            
U.S. GAAP:Pretax Income (In millions)
                                                                        
               Three Months Ended
                                          Reported %  Foreign   Constant
                                                                    Currency
                                            Increase     Exchange   % Increase
                March 31,      March 30,    (Decrease)   Impact     (Decrease)
                2014           2013(1)                   ($)
MillerCoors     $  122.8       $  117.4     4.6     %    $ —        4.6     %
(42% portion)
Canada          88.3           28.4         210.9   %    (7.9   )   238.7   %
Europe          27.0           (5.2     )   N/M          3.2        N/M
MCI             (3.0      )    (5.2     )   42.3    %    0.1        40.4    %
Corp            (65.5     )    (102.6   )   36.2    %    0.3       35.9    %
Molson Coors
Consolidated    $  169.6      $  32.8     417.1   %    $ (4.3 )   430.2   %
Total
                                                          
N/M= Not meaningful

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
            

              
Non-GAAP:Underlying Pretax Income (In millions)
                                                                        
                Three Months Ended
                                          Reported %  Foreign   Constant
                                                                    Currency
                                            Increase     Exchange   % Increase
                March 31,      March 30,    (Decrease)   Impact     (Decrease)
                2014           2013(1)                   ($)
MillerCoors     $  123.1       $  117.4     4.9    %     $  —       4.9     %
(42% portion)
Canada          35.3           29.3         20.5   %     (2.4   )   28.7    %
Europe          16.2           (5.3     )   N/M          2.8        N/M
MCI             (3.0      )    (5.2     )   42.3   %     0.1        40.4    %
Corp            (65.1     )    (81.5    )   20.1   %     (0.1   )   20.2    %
Molson Coors
Consolidated    $  106.5      $  54.7     94.7   %     $  0.4    94.0    %
Total
                                                          
N/M= Not meaningful

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
                                                                             

Constant currency is a non-GAAP measure utilized by Molson Coors management to
measure performance, excluding the impact of foreign currency movements. As we
operate in various foreign countries where the local currency may strengthen
or weaken significantly versus the U.S. dollar or other currencies used in
operations, we utilize a constant currency measure as an additional metric to
evaluate the underlying performance of each business without consideration of
foreign currency movements. This information is non-GAAP and should be viewed
as a supplement to (not a substitute for) our reported results of operations
under U.S. GAAP. We calculate the impact of foreign exchange on net sales,
pretax income and non-GAAP underlying pretax income using the following steps:

           Multiply our current period local currency operating results
           (that also include the impact of the comparable prior-period
           currency hedging activities) by the weighted average foreign
  1.   exchange rates used to translate the financial statements in the
           comparable prior year period. The result is the current-period
           operating results in U.S. dollars, as if foreign exchange rates
           had not changed from the prior-year period.
                                                                             
           Subtract the result in #1 from the unadjusted current-period
           reported operating result in U.S. dollars (U.S. GAAP measure).
    2.     This difference reflects the impact of foreign currency
           translational gains/losses included in the current-period
           results.
                                                                             
           Determine the amount of actual non-operating foreign currency
    3.     gains/losses realized as a result of hedging activities and
           activities transacted in a currency other than the functional
           currency of each legal entity.
                                                                             
           Add the results of steps 2 and 3 above. This sum equals the total
           impact of foreign currency translational gains/losses and
    4.     realized gains/losses from foreign currency transactions. This is
           the value shown in the “Foreign Exchange $ Impact” column within
           the table above.
                                                                       
                                                                             

In addition to financial measures presented on the basis of accounting
principles generally accepted in the United States of America ("U.S.GAAP"),
we also present pretax and after-tax "underlying income," "underlying income
per diluted share," "underlying effective tax rate," and "underlying free cash
flow," which are non-GAAP measures and should be viewed as supplements to (not
substitutes for) our results of operations presented under U.S.GAAP. We also
present underlying earnings before interest, taxes, depreciation, and
amortization ("underlying EBITDA") as a non-GAAP measure. Our management uses
underlying income, underlying income per diluted share, underlying EBITDA,
underlying effective tax rate and underlying free cash flow as measures of
operating performance to assist in comparing performance from period to period
on a consistent basis; as a measure for planning and forecasting overall
expectations and for evaluating actual results against such expectations; in
communications with the board of directors, stockholders, analysts and
investors concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management incentive
compensation calculations. We believe that underlying income, underlying
income per diluted share, underlying EBITDA, underlying effective tax rate and
underlying free cash flow performance are used by and are useful to investors
and other users of our financial statements in evaluating our operating
performance because they provide an additional tool to evaluate our
performance without regard to special and non-core items, which can vary
substantially from company to company depending upon accounting methods and
book value of assets and capital structure. We have provided reconciliations
of all non-GAAP measures to their nearest U.S. GAAP measures and have
consistently applied the adjustments within our reconciliations in arriving at
each non-GAAP measure. These adjustments consist of special items from our
U.S. GAAP financial statements as well as other non-core items, such as
acquisition and integration related costs, unrealized mark-to-market gains and
losses, and gains and losses on sales of non-operating assets, included in our
U.S. GAAP results that warrant adjustment to arrive at non-GAAP results. We
consider these items to be necessary adjustments for purposes of evaluating
our ongoing business performance and are often considered non-recurring. Such
adjustments are subjective and involve significant management judgment.


Worldwide Beer Volume

Molson Coors Brewing Company and Subsidiaries
Table 8: Worldwide Beer Volume
(In millions of hectoliters)
(Unaudited)
                                                                       
                                   Three Months Ended              
                                    March 31, 2014  March 30, 2013   % Change
Financial Volume                    5.913            5.750            2.8   %
Royalty Volume                      0.300           0.261           14.9  %
Owned Volume                        6.213            6.011            3.4   %
Proportionate Share of Equity       5.705           5.921           (3.6  )%
Investment Sales to Retail^(1)
Total Worldwide Beer Volume         11.918          11.932          (0.1  )%
                                                                   

            Reflects the addition of Molson Coors Brewing Company's
  (1)   proportionate share of equity method investments (MillerCoors
            and Modelo Molson) sales to retail for the periods presented.
                                                                             

                                          
U.S. GAAP Measures

Molson Coors Brewing Company and Subsidiaries
Table 9: Condensed Consolidated Statements of Operations
($ In millions, except per share data)
(Unaudited)
                                          
                                            Three Months Ended
                                            March 31, 2014  March 30, 2013(1)
Volume in hectoliters                       5.913           5.750         
Sales                                       $  1,178.3       $   1,184.8
Excise taxes                                (362.3      )    (356.3        )
Net sales                                   816.0            828.5
Cost of goods sold                          (523.2      )    (547.1        )
Gross profit                                292.8            281.4
Marketing, general and administrative       (263.9      )    (293.9        )
expenses
Special items, net                          52.5             (1.5          )
Equity income in MillerCoors                122.8           117.4         
Operating income (loss)                     204.2            103.4
Interest income (expense), net              (35.4       )    (74.9         )
Other income (expense), net                 0.8             4.3           
Income (loss) from continuing operations    169.6            32.8
before income taxes
Income tax expense                          (4.8        )    (2.0          )
Net Income (loss) from continuing           164.8            30.8
operations
Income (loss) from discontinued             (1.9        )    (0.9          )
operations, net of tax
Net income (loss) including                 162.9            29.9
noncontrolling interests
Less: Net (income) loss attributable to     0.5             (1.4          )
noncontrolling interests
Net income (loss) attributable to MCBC      $  163.4        $   28.5      
                                                                           
Basic net income (loss) attributable to
MCBC per share:
From continuing operations                  $  0.90          $   0.16
From discontinued operations                (0.01       )    —             
Basic net income per share                  $  0.89         $   0.16      
                                                                           
Diluted net income (loss) attributable to
MCBC per share:
From continuing operations                  $  0.89          $   0.16
From discontinued operations                (0.01       )    —             
Diluted net income per share                $  0.88         $   0.16      
                                                                           
Weighted average shares - basic             184.3            181.7
Weighted average shares - diluted           185.5            182.9
                                                                           
Dividends per share                         $  0.37         $   0.32      
                                                                           
Amounts attributable to MCBC
Net income (loss) from continuing           $  165.3         $   29.4
operations, net of tax
Income (loss) from discontinued             (1.9        )    (0.9          )
operations, net of tax
Net income (loss) attributable to MCBC      $  163.4        $   28.5      
                                                                   

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
            


Molson Coors Brewing Company and Subsidiaries
Table 10: Canada Segment Results of Operations
($ In millions)
(Unaudited)
                                          
                                           Three Months Ended
                                            March 31, 2014  March 30, 2013(1)
Volume in hectoliters                       1.563           1.654         
Sales                                       $   455.6        $    522.0
Excise taxes                                (108.5      )    (126.4        )
Net sales                                   347.1            395.6
Cost of goods sold                          (216.7      )    (249.1        )
Gross profit                                130.4            146.5
Marketing, general and administrative       (96.0       )    (117.0        )
expenses
Special items, net                          53.0            (2.1          )
Operating income (loss)                     87.4             27.4
Other income (expense), net                 0.9             1.0           
Income (loss) before income taxes           $   88.3        $    28.4     
                                                                   

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
                                                                             

                                          
Molson Coors Brewing Company and Subsidiaries
Table 11: Europe Results of Operations
($ In millions)
(Unaudited)
                                          
                                            Three Months Ended
                                            March 31, 2014  March 30, 2013(1)
Volume in hectoliters^(2)                   4.085           3.868         
Sales^(2)                                   $   685.8        $    632.4
Excise taxes                                (248.2      )    (226.0        )
Net sales^(2)                               437.6            406.4
Cost of goods sold                          (286.0      )    (281.2        )
Gross profit                                151.6            125.2
Marketing, general and administrative       (126.2      )    (130.2        )
expenses
Special items, net                          (0.5        )    0.9           
Operating income (loss)                     24.9             (4.1          )
Interest income, net                        1.1              1.2
Other income (expense), net                 1.0             (2.3          )
Income (loss) before income taxes           $   27.0        $    (5.2     )
                                                                   

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
                                                                             
            Reflects gross segment sales and for Q1 2014 includes
            intercompany sales to MCI of 0.013 million hectoliters and $1.2
    (2)     million of net sales. Q1 2013 includes intercompany sales to MCI
            of 0.021 million hectoliters and $0.8 million of net sales. The
            offset is included within MCI cost of goods sold. These amounts
            are eliminated in the consolidated totals.
                                                                             

                                          
Molson Coors Brewing Company and Subsidiaries
Table 12: Molson Coors International Results of Operations
($ In millions)
(Unaudited)
                                          
                                            Three Months Ended
                                            March 31, 2014  March 30, 2013(1)
Volume in hectoliters                       0.278           0.249        
Sales                                       $   37.8         $    30.9
Excise taxes                                (5.6       )     (3.9         )
Net sales                                   32.2             27.0
Cost of goods sold^(2)                      (20.8      )     (17.5        )
Gross profit                                11.4             9.5
Marketing, general and administrative       (14.4      )     (14.7        )
expenses
Special items, net                          —               —            
Operating income (loss)                     (3.0       )     (5.2         )
Other income (expense), net                 —               —            
Income (loss) before income taxes           $   (3.0   )     $    (5.2    )
                                                                  

  (1)   Amounts have been adjusted to reflect the change in interim
            accounting for advertising expenses.
                                                                             
            Reflects gross segment amounts and for Q1 2014 and Q1 2013
            includes intercompany cost of goods sold from Europe of $1.2
    (2)     million and $0.8 million, respectively. The offset is included
            within Europe net sales. These amounts are eliminated in the
            consolidated totals.
                                                                             


Molson Coors Brewing Company and Subsidiaries
Table 13: Corporate Results of Operations
($ In millions)
(Unaudited)
                                             
                                              Three Months Ended
                                               March 31, 2014  March 30, 2013
Volume in hectoliters                          —               —           
Sales                                          $   0.3          $   0.3
Excise taxes                                   —               —           
Net sales                                      0.3              0.3
Cost of goods sold                             (0.9        )    (0.1        )
Gross profit                                   (0.6        )    0.2
Marketing, general and administrative          (27.3       )    (32.0       )
expenses
Special items, net                             —               (0.3        )
Operating income (loss)                        (27.9       )    (32.1       )
Interest expense, net                          (36.5       )    (76.1       )
Other income (expense), net                    (1.1        )    5.6         
Income (loss) before income taxes              $   (65.5   )    $   (102.6  )
                                                                    

                                             
MillerCoors LLC ^(1)
Table 14: Results of Operations
($ In millions)
(Unaudited)
                                             
                                               Three Months Ended
                                               March 31, 2014  March 31, 2013
Volume in hectoliters^(2)                      16.488          17.032      
Sales                                          $  2,050.1       $  2,056.7
Excise taxes                                   (259.7      )    (268.4      )
Net sales                                      1,790.4          1,788.3
Cost of goods sold                             (1,094.1    )    (1,088.7    )
Gross profit                                   696.3            699.6
Marketing, general and administrative          (398.1      )    (425.1      )
expenses
Special items, net                             (0.7        )    —           
Operating income                               297.5            274.5
Interest income (expense), net                 (0.3        )    (0.5        )
Other income (expense), net                    0.3             0.8         
Income before income taxes                     297.5            274.8
Income tax expense                             (1.9        )    (0.4        )
Net income                                     295.6            274.4
Less: Net income attributable to               (4.4        )    (2.5        )
noncontrolling interests
Net income attributable to MillerCoors         $  291.2        $  271.9    
                                                                    

            Economic ownership of MillerCoors is 58% held by SABMiller and
            42% held by Molson Coors. See Table 6 for a reconciliation from
  (1)   Net Income Attributable to MillerCoors to Molson Coors Equity
            Income in MillerCoors, and to U.S. Segment Underlying Pretax
            Income (Non-GAAP).
                                                                             
    (2)     Includes contract brewing and company-owned-distributor sales,
            which are excluded from our worldwide beer volume calculation.
                                                                             


Molson Coors Brewing Company and Subsidiaries
Table 15: Condensed Consolidated Balance Sheets
($ In millions, except par value)
(Unaudited)
                                          
                                           As of
                                            March 31, 2014  December 31, 2013
Assets
Current assets:
Cash and cash equivalents                   $  337.6         $   442.3
Accounts receivable, net                    552.1            603.6
Other receivables, net                      161.3            124.4
Inventories:
Finished                                    179.6            133.2
In process                                  24.4             23.3
Raw materials                               42.6             36.9
Packaging materials                         16.6            11.9           
Total inventories                           263.2            205.3
Other current assets, net                   123.7            111.7
Deferred tax assets                         46.4            50.4           
Total current assets                        1,484.3          1,537.7
Properties, net                             1,936.2          1,970.1
Goodwill                                    2,394.7          2,418.7
Other intangibles, net                      6,652.3          6,825.1
Investment in MillerCoors                   2,608.5          2,506.5
Deferred tax assets                         15.7             38.3
Notes receivable, net                       23.0             23.6
Other assets                                251.1           260.1          
Total assets                                $  15,365.8     $   15,580.1   
Liabilities and equity
Current liabilities:
Accounts payable and other current          $  1,267.0       $   1,410.3
liabilities
Deferred tax liabilities                    167.3            138.1
Current portion of long-term debt and       630.4            586.9
short-term borrowings
Discontinued operations                     7.1             6.8            
Total current liabilities                   2,071.8          2,142.1
Long-term debt                              3,162.3          3,213.0
Pension and post-retirement benefits        436.5            462.6
Deferred tax liabilities                    932.5            911.4
Unrecognized tax benefits                   56.5             92.7
Other liabilities                           63.5             77.2
Discontinued operations                     18.0            17.3           
Total liabilities                           6,741.1          6,916.3
Molson Coors Brewing Company
stockholders' equity
Capital stock:
Preferred stock, no par value               —                —
(authorized: 25.0 shares; none issued)
Class A common stock, $0.01 par value per
share (authorized: 500.0 shares; issued     —                —
and outstanding: 2.6 shares and 2.6
shares, respectively)
Class B common stock, $0.01 par value per
share (authorized: 500.0 shares; issued:    1.7              1.7
167.9 shares and 167.2 shares,
respectively)
Class A exchangeable shares, no par value
(issued and outstanding: 2.9 shares and     108.5            108.5
2.9 shares, respectively)
Class B exchangeable shares, no par value
(issued and outstanding: 18.9 shares and    712.4            714.1
19.0 shares, respectively)
Paid-in capital                             3,777.6          3,747.6
Retained earnings                           4,328.4          4,233.2
Accumulated other comprehensive income      (6.6         )   154.9
(loss)
Class B common stock held in treasury at
cost (7.5 shares and 7.5 shares,            (321.1       )   (321.1         )
respectively)
Total Molson Coors Brewing Company          8,600.9          8,638.9
stockholders' equity
Noncontrolling interests                    23.8            24.9           
Total equity                                8,624.7         8,663.8        
Total liabilities and equity                $  15,365.8     $   15,580.1   
                                                                    
                                                                            

                                             
Molson Coors Brewing Company and Subsidiaries
Table 16: Condensed Consolidated Statements of Cash Flows
($ In millions)
(Unaudited)
                                             
                                               Three Months Ended
                                               March 31, 2014  March 30, 2013
Cash flows from operating activities:
Net income (loss) including noncontrolling     $   162.9        $   29.9
interests
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                  81.2             80.2
Amortization of debt issuance costs and        1.6              7.3
discounts
Share-based compensation                       8.3              11.1
Loss (gain) on sale or impairment of           1.2              1.4
properties and other assets, net
Deferred income taxes                          0.5              1.3
Equity income in MillerCoors                   (122.8      )    (117.4      )
Distributions from MillerCoors                 122.8            117.4
Equity in net income of other unconsolidated   (4.2        )    (1.1        )
affiliates
Distributions from other unconsolidated        11.1             11.7
affiliates
Excess tax benefits from share-based           (2.0        )    (1.6        )
compensation
Unrealized (gain) loss on foreign currency     (1.8        )    19.1
fluctuations and derivative instruments, net
Change in current assets and liabilities and   (111.0      )    (41.8       )
other
(Gain) loss from discontinued operations       1.9             0.9         
Net cash provided by operating activities      149.7           118.4       
Cash flows from investing activities:
Additions to properties                        (65.3       )    (68.3       )
Proceeds from sales of properties and other    1.7              3.7
assets
Investment in MillerCoors                      (354.9      )    (331.8      )
Return of capital from MillerCoors             259.5            222.4
Loan repayments                                2.2              2.6
Loan advances                                  (16.7       )    (2.5        )
Net cash used in investing activities          (173.5      )    (173.9      )
Cash flows from financing activities:
Exercise of stock options under equity         20.2             27.2
compensation plans
Excess tax benefits from share-based           2.0              1.6
compensation
Dividends paid                                 (68.2       )    (58.2       )
Payments for purchase of noncontrolling        (0.2        )    (0.2        )
interest
Payments on long-term debt and capital lease   (46.9       )    —
obligations
Proceeds from short-term borrowings            20.9             5.9
Payments on short-term borrowings              (12.5       )    (13.8       )
Payments on settlement of derivative           (65.2       )    —
instruments
Net proceeds from (payments on) revolving      (41.8       )    (1.2        )
credit facilities and commercial paper
Change in overdraft balances and other         111.5           3.5         
Net cash used in financing activities          (80.2       )    (35.2       )
Cash and cash equivalents:
Net increase (decrease) in cash and cash       (104.0      )    (90.7       )
equivalents
Effect of foreign exchange rate changes on     (0.7        )    (21.8       )
cash and cash equivalents
Balance at beginning of year                   442.3           624.0       
Balance at end of period                       $   337.6       $   511.5   
                                                                    

Contact:

Molson Coors Brewing Company
News Media
Colin Wheeler, 303-927-2443
or
Investor Relations
Dave Dunnewald, 303-927-2334
 
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