TAP-A

Gavin Hattersley shared his closing remarks on his time at Molson Coors, highlighting the strong foundation built. Rahul Goyal discussed strategic priorities including focusing on portfolio to build strong and scalable brands in beer and beyond beer, with actions like new campaigns for Miller Lite and Coors Light, capitalizing on Banquet's success, selectively increasing focus on economy brands, leaning in on above premium including Peroni and addressing Blue Moon's challenges. He also mentioned commercial execution improvements and a corporate restructuring plan in Americas to create a leaner organization. Tracey Joubert reviewed the quarter's financial performance and reaffirmed 2025 guidance.

Reaffirming 2025 guidance, now expecting to come in at the low end of the prior range. Net sales revenue to decline 3% to 4% on a constant currency basis. Underlying pretax income to decline 12% to 15% on a constant currency basis, underlying earnings per share to decline 7% to 10% and underlying free cash flow of $1.3 billion, plus or minus 10%. Expect lower year-end U.S. distributor inventory levels, lapping softer comps from contract brewing in the U.S. for Q4, and Midwest Premium pricing exceeding prior year ranges with most increase in the second half of the year.

Consolidated net sales revenue was down 3.3%. Underlying pretax income was down 11.9% and underlying earnings per share was down 7.2%. The U.S. beer industry was down minus 4.7% based on internal estimates. Contract brewing was a 450,000 hectoliter or 3 percentage point headwind to the Americas financial volume. EMEA and APAC volume continue to be pressured across all regions by ongoing soft market demand and a heightened competitive landscape. COGS was negatively impacted by volume deleverage, including lower expectations for year-end U.S. distributor inventory. MG&A was down slightly for the year due to lower incentive compensation, offset by higher non-alc infrastructure costs and Fever-Tree onetime transition and integration fees.

Macro-related factors pressuring consumption behavior, industry softness in EMEA and APAC, lower U.S. volume share, volatility in category performance, high Midwest Premium pricing impacting COGS, and challenges in accurately hedging against commodity price fluctuations.

Q: Peter Grom asked about Rahul's perspective on biggest opportunities and challenges ahead and Tracey on 4Q top line improvement A: Rahul mentioned focusing on listening to people and customers, seeing opportunities in co-brands, above premium, and beyond beer with urgency. Tracey said better top line in EMEA, APAC, Canada and lapping softer comps from contract brewing in U.S.

Q: Christopher Carey asked about inventory and investing A: Rahul said distributor inventories are healthy, days of inventory in good place, and balance sheet committed to returning cash and deploying capital to fill portfolio gaps Q: Bonnie Herzog asked about beer category pressures, cyclical vs structural, and recovery A: Rahul said category has been in minus 3-ish range, this year minus 4%-6% due to macro issues, believes cyclical and will return to pre-2025 levels Q: Drew Levine asked about organic sales growth and M&A A: Rahul said pathway for growth exists, will deploy balance sheet and cash flow to fill portfolio gaps, focus on beer and beyond beer, disciplined in M&A Q: Peter Galbo asked about bond maturity and impairment charge A: Tracey said will review debt maturity closer to due date, Rahul said impairment charge was due to this year's performance, outlook, discount rates, etc.

Q: William Kirk asked about portfolio gaps and focus A: Rahul said gaps are in regions, categories, brands, will focus on beer, partnerships, and execution close to market Q: Filippo Falorni asked about partnerships vs acquisitions and restructuring savings A: Rahul said focused on beer, will deploy capital to fill portfolio gaps, Tracey said restructuring charges $35-50M in Q4, savings to be redeployed to invest in brands, etc.

Q: Steve Powers asked about restructuring enabling speed and balance of beer vs beyond beer investment A: Rahul said restructuring to bring leaders closer to market for faster execution, focus on beer brands with marketing pressure, and beyond beer with balance sheet deployment Q: Michael Lavery asked about High Life, Keystone, and goodwill A: Rahul said economy portfolio needs regional focus, goodwill impacted by this year's performance, outlook, discount rates Q: Rob Ottenstein asked about Board mandate and freedom to make changes A: Rahul said Board focused on maximizing shareholder value, no sacred cows, will drive plan to maximize value Q: Eric Serotta asked about investment in capabilities A: Rahul said focusing on supply chain, commercial capabilities, technology, with ROI focus Q: Kevin Grundy asked about brewery cost structure and investment impact A: Rahul said looking at brewery infrastructure efficiency, transportation, seasonality, and investment in productivity as enabler Q: Kaumil Gajrawala asked about bigger restructuring to come A: Rahul said more to come as part of total plan, focusing on setting up Americas for 2026 Q: Lauren Lieberman asked about commercial changes and prior vs new approach A: Rahul said need to react faster to market dynamics, deploy resources closer to markets for better accountability Q: Nadine Sarwat asked about consumer sentiment and cyclical pressures A: Rahul said macro issues impacted category this year, believes cyclical and will return to baseline Q: Robert Moskow asked about regional vs national marketing of brands A: Rahul said opportunities for brands, working on campaigns for Coors Light, Miller Lite, with live sports in coming months Q: Gerald Pascarelli asked about M&A in beyond beer and Midwest premium impact A: Rahul said likely more M&A in beyond beer, Tracey said Midwest Premium hedging in place but continues to be a headwind