Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Hansen Natural — Investor Presentation (December 2011)
43 slides from Monster Beverage's investor presentation, Dec 15, 2011
Slide 1: Hansen Natural Corporation
HANSEN NATURAL CORPORATION December 15, 2011 re
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain oral and written statements in this presentation and in response to questions are forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including statements in connection with or related to any dis
Slide 3: Solid Financial Results
Solid Financial Results 19 consecutive years of increased sales since acquisition of the Hansen beverage business in 1992. Achieved $1.5 billion in gross sales in 2010. Net sales for the third quarter of 2011 increased to $474.7 million, up 24.4% from the same time period last year. Net income for t
Slide 4: Historical (1)
Historical (1)
Slide 5: Historical (2)
Historical (2) Yee AFTER A TIRING JOURNEY The SATISFACTORY BEVERAGE It satisfies the thirst; pleases the palate. Relieves fatigue I}| auickly and naturally. Puts vim and go into tired brain and bodies. Delicious— cooling —refreshing. ees Neher Scat Sold everywhere 5 cents rx Mt will be appreciated.
Slide 6: Historical (3)
Historical (3) No after-lunch Drows NESS Pr
Slide 7: Historical (4)
Any powerful drug, such as caffeine is acknowledged to be, should not be offered indiscriminately to the public in other than its natural condition, and certainly not without the knowledge of the consumer In this 1912 Good Housekeeping cartoon, Harvey Wiley warns a gullible public against the gremli
Slide 8: The Convenience Store Beverage Category 2010
Vol Share% Share +/- $ Share% $Share +/- CSDs 53.6 -3.2 40.9 -2.3 Water 15.0 +0.7 11.4 -0.2 Sports drinks 9.2 +0.5 8.8 +0.2 Energy 7.9 +0.5 23.2 +1.8 Juices/juice drinks 7.6 +0.2 8.9 +0.1 RTD tea 5.9 +1.1 4.9 +0.4 RTD Coffee 0.5 flat 1.7 flat Dairy single-serve 0.2 flat 0.3 flat TOTAL 100% n/a 100%
Slide 9: Strong Energy Category Growth Continues
Sources: 1 AC Nielsen Total US AOC (Conv, Food, Drug, Mass – excl WalMart) – 13 weeks ending 11/19/11 2 AC Nielsen Total US Convenience – 13 weeks ending 11/19/11 3 Mintel Energy Drink & Energy Shot report- US August 2011 Strong Energy Category Growth Continues: - All outlets combined excluding Walm
Slide 10: Energy Drink Category in Value
Energy Drink Category in Value $ Vol $ Vol Year Ago $ % vs Year Ago $ vs Year Ago $ Share $ Share vs Year Ago TNA TOTAL NON-ALCOHOL ENERGY 1,771,812,300 1,541,881,095 14.9% 229,931,205 100.0% 0.0 1 TOTAL RED BULL 579,877,685 501,711,648 15.6% 78,166,037 32.7% 0.2 2 TOTAL MONSTER 511,243,556 418,583,
Slide 11: 2011 Key Accomplishments - Value
2011 Key Accomplishments- Value Sources: 1 AC Nielsen Total US Convenience – 13 weeks ending 11/19/11 Monster not only extended its unit share lead over Red Bull, but also closed the value share gap with Red Bull. Monster value sales are up 22.3% versus category growth of 15.4% in the convenience &
Slide 12: Energy Drink Category - Units
Energy Drink Category- Units Source: AC Nielsen Total US Scantrack Convenience – 4 Weeks Ending 11/19/11 MONSTER RED BULL ROCKSTAR 5 HR AMP NOS FULL THROTTLE
Slide 13: 2011 Key Accomplishments - Units
2011 Key Accomplishments- Units Sources: 1 AC Nielsen Total US All outlets– 13 weeks ending 11/19/11 2 AC Nielsen Total US Convenience – 12 weeks ending 11/19/11 3 AC Nielsen RTD Tea Total US convenience Q3- 2011 ending 10/11/11 Monster Energy’s Latest 13 week performance is outpacing the energy cat
Slide 14: Monster Marketing 2011 Champions
Monster Marketing 2011 Champions BJ Baldwin 2011 Best in the Desert Champion Tucker Hibbert Sixth X Games Gold Medal Ryan Villopoto 2011 Supercross World Champion Ryan Villopoto 2011 AMA Motocross Champion Troy Bronson 2011 Junior Down Hill Mountain Bike World Champion Pro Circuit 2011 AMA Motocross
Slide 15: 2011 Key Athletes & Teams
2011 Key Athletes & Teams Valentino Rossi Moto GP Pro Circuit SX/MX Team Kawasaki Factory Team 2011 SX/MX Champion BMW Desert Race Team Michael Schumacher U.S Athletes World Wide Athletes Ken Block
Slide 16: Music
Slash Korn Tommy Lee Guns N’ Roses Music
Slide 17: Warped Tour '11
WARPED TOUR '11
Slide 18: 2011 Key Sponsorships
2011 Key Sponsorships Yee - BNBROEY SUPERCROSS ® SIREET
Slide 19: Digital Landscape
Digital Landscape Monster Energy’s Facebook page is the #8 most “Liked” page of all brands in the world with 12.77 million “Likes”1 Monster’s approach to social media centers on providing relevant content to target consumers. Monster utilizes facebook as a broadcast tool to interact with its fans on
Slide 20: Digital Landscape
Digital Landscape Twitter and YouTube are also used to broadcast relevant content to Monster Fans Twitter with 120K followers Monster’s YouTube Channel with 16 million views
Slide 21: TV Integration
TV Integration Rob Dyrdek’s Fantasy Factory - MTV DUB Magazine Project - MTV 2 Inside WestCoast Customs Discovery Channel HD Theater Rob Dyrdek’s Ridiculousness - MTV
Slide 22: Console Game Integration
Console Game Integration X Box & PlayStation Games Professional PC Gaming PC Based Gaming Tournaments Premier Video Gaming Team compete in U.S., Asia and Europe. Top Players in: - Street Fighter IV - StarCraft - World of Warcraft II - Counter Strike Video Gaming
Slide 23: Motor Sports - New Initiatives
Motor Sports- New Initiatives
Slide 24: Activating at Retail 2012
Activating at Retail 2012 T1 Rehab Las Vegas Pool Party Java Monster- Ultimate Costa Rican Adventure TBD T3 T2 Free Monster Gear Loyalty Program T2
Slide 25: Rehab
Rehab April 2011: Q4 2011: Q1 2012
Slide 26: Current Energy Drink Consumers
Current Energy Drink Consumers
Slide 27: Monster Rehab Consumers
Monster Rehab Consumers “I don’t normally like energy drinks but this tastes good, it’s different than I expected.” “My kid drinks green all the time, but I don’t like the taste. This is definitely one I would drink.”
Slide 28: Monster Rehab Consumers
“A non carbonated Monster finally, this is perfect for the summer heat” “Tea + Lemonade is like an Arnold Palmer, awesome!” “Wow, this doesn’t even taste like a Monster.” “This will go perfect with my sweet tea vodka!” We did note one negative comment from a soldier whose photograph appears on the n
Slide 29: Monster Consumers
Monster Consumers
Slide 30: Monster M-3
Monster M-3 M-3 Super Concentrate – 5.0 oz
Slide 31: New Products Q1 2012 Launch
New Products Q1 2012 Launch Ubermonster, Energy Brew – 16.9oz
Slide 32: Peace Tea
Peace Tea Existing Line Up: * To be replaced with New Sku’s Early 2012 Single Serve Peace Tea with its #9 brand ranking in the convenience and gas channel has solidified itself as a credible category player.1 Consumer acceptance of Peace Tea single serve cans has facilated the introduction of multi-
Slide 33: Warehouse Division Highlights
Warehouse Division Highlights Increased profitability due in part to decreased promotion and other allowances Juice price increases to be implemented in 2012 Rationalized non-strategic lines and SKUs Updated Hansen’s Juice graphics and expanded offerings Expanded existing product lines: Hubert’s Str
Slide 34: Hansen's Natural Juices
Hansen’s Natural 64oz Juices Updated Hansen’s Natural Juices Hansen’s Natural 100% Juice Boxes
Slide 35: Emerging Category Innovation
Emerging Category Innovation Hubert’s Half&Half Lemonade Tea PRE Probiotic Beverages Angeleno Aguas Frescas
Slide 36: Net Sales
Net Sales ($ in millions) 42.3% CAGR to December 2010 2003 2004 2005 2006 2007 2008 2009 2010 YTD 9/30/11 9 Months $110.4 $180.3 $348.9 $605.8 $904.5 $1,033.8 $1,143.3 $1,303.9 $1,293.3
Slide 37: Reported Operating Income
Reported Operating Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 YTD 9/30/11 9 Months $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $353.0
Slide 38: Adjusted Operating Income
Adjusted Operating Income (“OI”) ($ in millions) * Adjusted operating income is a non-GAAP financial measure that includes adjustments for termination costs to prior distributors and for professional service fees, net of insurance reimbursements, associated with the review of stock option grants and
Slide 39: Reported Net Income
Reported Net Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 YTD 9/30/11 9 Months $5.9 $20.4 $62.8 $97.9 $149.4 $108.0 $208.70 $212.0 $221.7
Slide 40: Reported Diluted Earnings Per Share
Reported Diluted Earnings Per Share 2003 2004 2005 2006 2007 2008 2009 2010 YTD 9/30/11 9Months $0.07 $0.22 $0.65 $0.99 $1.51 $1.11 $2.21 $2.28 $2.37
Slide 41: Balance Sheet Highlights
Balance Sheet Highlights ($ in thousands) September 30, 2011 December 31, 2010 Percentage Change Cash and cash equivalents $ 287,157 $ 354,842 -19% Investments: Short-term investments $ 412,255 $ 244,649 69% Long-term investments $ 26,689 $ 44,189 -40% Total Investments $ 438,944 $ 288,838 52% Total
Slide 42: 3rd Quarter Results
3rd Quarter Results (in millions except per share data) 3Q10 3Q11 $0.72 $0.88 Diluted EPS +23.3% 3Q10 3Q11 $ 66.5 $82.4 Net Income +23.9% 3Q10 3Q11 $381.5 $474.7 Net Sales +24.4% 3Q10 3Q11 $107.6 $132.1 3Q10 3Q11 Operating Income +22.8%
Slide 43: Proposed Name Change
Proposed name change From: Hansen Natural Corporation To: Monster Beverage Corporation New NASDAQ Symbol: MNST Proposed Name Change
Hansen Natural — Investor Presentation (December 2011) on 6ix