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Molson Coors Provides Historical Pro Forma Financial Results For Its Recently Acquired Central Europe Business

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(1) Unless otherwise indicated, all $ amounts are in U.S. Dollars. The pro forma statements of operations include adjustments directly attributable to the acquisition of StarBev. Pro forma amounts include the results of operations for Central Europe for the periods indicated on each statement. These amounts also include pro forma adjustments as if MCCE had been acquired on December 26, 2010, the first day of our 2011 fiscal year, including the effects of on-going acquisition accounting impacts and eliminating operating costs and expenses directly related to the transaction, but do not include adjustments for costs related to integration activities following the completion of the Aquisition, cost savings or synergies that have been or may be achieved by the combined businesses. Pro forma amounts are not necessarily indicative of what the results would have been had we operated the businesses since December 26, 2010, and do not purport to be indicative of future operating results.

(2) Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special and other non-core items. The Company calculates non-GAAP underlying pro forma EBITDA and pretax income by excluding special and other non-core items from the nearest U.S. GAAP earnings measure, which is income before income taxes.

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, Central Europe, the United Kingdom, and Molson Coors International (MCI). The Company has a diverse portfolio of owned and partner brands, including signature brands Coors Light, Molson Canadian, Staropramen and Carling. Molson Coors is listed on the 2011 Dow Jones Sustainability Index (DJSI), the most recognized global benchmark of sustainability among global corporations. For more information on Molson Coors Brewing Company, visit the company’s web site,

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, our ability to successfully integrate StarBev, retain key employees and achieve planned cost synergies; 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, 2011, 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.

Molson Coors Central Europe Pro Forma Results of Operations, Underlying EBITDA and Reconciliations to the Nearest GAAP Measure

Molson Coors Central Europe Pro Forma Results of Operations and Underlying EBITDA
(In Millions)
1st Quarter 2nd Quarter
For the Three Months Ended For the Three Months Ended
March 31, 2012 March 31, 2011 June 30, 2012 June 30, 2011
Volume in hectoliters   2.235     2.193     4.137     4.079  
Net sales $ 139.4 $ 147.5 $ 258.4 $ 297.9
Cost of goods sold   (96.7 )   (95.7 )   (143.0 )   (151.0 )
Gross profit 42.7 51.8 115.4 146.9
Marketing, general and administrative expenses (52.2 ) (45.7 ) (68.8 ) (75.6 )
Special items, net   -     (1.1 )   -     (0.4 )
Operating income (loss) (9.5 ) 5.0 46.6 70.9
Interest income (expense), net (0.1 ) 1.4 (0.6 ) 0.7
Other (expense) income, net   (0.2 )   -     0.2     0.9  
U.S. GAAP: Income (loss) before income taxes (9.8 ) 6.4 46.2 72.5
Add special and other non-core items(1)   -     1.1     -     0.4  
Non-GAAP: Underlying pretax income (loss)   (9.8 )   7.5     46.2     72.9  
Depreciation and amortization 26.4 28.2 29.1 32.1

Interest (income) expense, net

0.1 (1.4 ) 0.6 (0.7 )
Non-GAAP: EBITDA(2) $ 16.7   $ 34.3   $ 75.9   $ 104.3  
3rd Quarter 4th Quarter Full Year

For the Twelve Months Ended

For the Three Months Ended
September 30, 2011 December 31, 2011 December 31, 2011
Volume in hectoliters   4.321     2.683     13.276  
Net sales $ 314.8 $ 179.8 $ 940.0
Cost of goods sold   (163.7 )   (113.7 )   (524.1 )
Gross profit 151.1 66.1 415.9
Marketing, general and administrative expenses (64.1 ) (49.4 ) (234.8 )
Special items, net   (1.0 )   (4.5 )   (7.0 )
Operating income (loss) 86.0 12.2 174.1
Interest income (expense), net 0.9 0.5 3.5
Other (expense) income, net   (2.7 )   (1.1 )   (2.9 )
U.S. GAAP: Income (loss) before income taxes 84.2 11.6 ` 174.7
Add special and other non-core items(1)   1.0     4.5     7.0  
Non-GAAP: Underlying pretax income (loss)   85.2     16.1     181.7  
Depreciation and amortization 36.6 42.2 139.1

Interest (income) expense, net

(0.9 ) (0.5 ) (3.5 )
Non-GAAP: EBITDA(2) $ 120.9   $ 57.8   $ 317.3  

Notes:(1) The following special and other non-core items have been excluded from underlying pretax earnings. For 2011, special and other non-core items included restructuring and severance costs totaling $7.0 million. During the 2nd quarter of 2012, special and other non-core items included an $8.6 million charge related to a non-cash fair value adjustment to acquisition-date inventory, $2.5 million of acquisition-related expenses, and a $3.8 million unrealized foreign exchange gain, which were added back as pro forma adjustments and not underlying adjustments as they relate directly to the Acquisition.

(2) Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), excluding special and other non-core items. The Company calculates non-GAAP underlying pro forma EBITDA and pretax income by excluding special and other non-core items from the nearest U.S. GAAP earnings measure, which is income before income taxes.

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