Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Investor Presentation (January 2018)
81 slides from Monster Beverage's investor presentation, Jan 18, 2018
Slide 1: Forward-looking statements
Certain statements made in this presentation may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws, as amended, regarding the expectations of management with respect to our future operating results and other future events including revenues and profitabil
Slide 2: Beverage Landscape U.S.
Beverage Landscape U.S. *Source: Nielsen AMC 13 W/E 12/30/17 Energy Drink Category Growing +3.6% Latest 13 Weeks is Outpacing Total Beverage Category Growth of +0.8% 3 Total Beverage Column Dollar Percent Change 0.8% Dollar Volume Change (MM) 148.2 $
Slide 3: Brand Performance - Total U.S. All Channels/Dollars
Brand Performance - Total U.S. All Channels/Dollars *Source: Nielsen AMC 13 W/E 12/23/17 vs. Year Ago 4 AMC All Measured Channels $ Vol $ Vol LY $ Vol Chg $ Vol % Chg $ Shr $ Shr Chg TNA ENERGY $2,979,507,433 $2,876,410,691 $103,096,742 3.6% 100.0 0.0 TOTAL MEC $1,254,668,691 $1,152,779,656 $101,889
Slide 4: Brand Performance - Total U.S. All Channels/Units
Brand Performance - Total U.S. All Channels/Units *Source: Nielsen AMC 13 W/E 12/23/17 vs. Year Ago 5 AMC ALL MEASURED CHANNELS SNAPSHOT AMC All Measured Channels U Vol U Vol LY U Vol Chg U Vol % Chg U Shr U Shr Chg TNA ENERGY 1,101,048,555 1,065,066,242 35,982,313 3.4% 100.0 0.0 TOTAL MEC 494,029,5
Slide 5: Energy Category - Total U.S. Dollar Share
Energy Category - Total U.S. Dollar Share - All Measured Channels *Source: Nielsen AMC 24 M/E 12/23/17 6
Slide 6: Energy Category - Total U.S. Unit Share
Energy Category - Total U.S. Unit Share - All Measured Channels *Source: Nielsen AMC 24 M/E 12/23/17 7
Slide 7: Brand Performance - Total U.S. Convenience/Dollars
Brand Performance - Total U.S. Convenience/Dollars *Source: Nielsen Total U.S. Convenience 13 W/E 12/23/17 vs. Year Ago 8 TOTAL U.S. - CONVENIENCE SNAPSHOT Total U.S. - Convenience $ Vol $ Vol LY $ Vol Chg $ Vol % Chg $ Shr $ Shr Chg TNA ENERGY $2,188,088,527 $2,116,188,238 $71,900,289 3.4% 100.0 0.
Slide 8: Brand Performance - Total U.S. Convenience/Units
Brand Performance - Total U.S. Convenience/Units *Source: Nielsen Total U.S. Convenience 13 W/E 12/23/17 vs. Year Ago 9 TOTAL U.S. - CONVENIENCE SNAPSHOT Total U.S. - Convenience U Vol U Vol LY U Vol Chg U Vol % Chg U Shr U Shr Chg TNA ENERGY 839,217,141 811,389,530 27,827,611 3.4% 100.0 0.0 TOTAL M
Slide 9: Brand Performance - Convenience/Dollars 5 Weeks
Brand Performance - Total U.S. Convenience/Dollars *Source: Nielsen Total U.S. Convenience 5 W/E 12/23/17 vs. Year Ago 10 TOTAL U.S. - CONVENIENCE SNAPSHOT Total U.S. - Convenience $ Vol $ Vol LY $ Vol Chg $ Vol % Chg $ Shr $ Shr Chg TNA ENERGY $810,094,516 $766,062,680 $44,031,836 5.7% 100.0 0.0 TO
Slide 10: Brand Performance - Convenience/Units 5 Weeks
Brand Performance - Total U.S. Convenience/Units *Source: Nielsen Total U.S. Convenience 5 W/E 12/23/17 vs. Year Ago 11 TOTAL U.S. - CONVENIENCE SNAPSHOT Total U.S. - Convenience U Vol U Vol LY U Vol Chg U Vol % Chg U Shr U Shr Chg TNA ENERGY 311,132,508 292,665,455 18,467,053 6.3% 100.0 0.0 TOTAL M
Slide 11: Energy Category - Dollar Share - Convenience
Energy Category - Dollar Share - Convenience *Source: Nielsen Total U.S. Convenience 24 M/E 12/23/17 12
Slide 12: Energy Category - Unit Share - Convenience
Energy Category - Unit Share - Convenience *Source: Nielsen Total U.S. Convenience 24 M/E 12/23/17 13
Slide 13: Energy Coffee Category - Dollar Share - Convenience
Energy Coffee Category - Dollar Share - Convenience *Source: Nielsen Total U.S. Convenience 24 M/E 12/23/17 14
Slide 14: North America Distributor Map
North America Distributor Map 15 As of January 2018
Slide 15: Distribution of at least one Company brand following KO Transaction
Distribution of at least one Company brand following KO Transaction 16 As of January 2018
Slide 16: Distribution of Monster Energy Drinks
Distribution of Monster Energy Drinks 17 As of January 2018
Slide 17: Energy Portfolio
Energy Portfolio 18 As of January 2018
Slide 18: Energy Portfolio
Energy Portfolio 19 As of January 2018
Slide 19: Energy Portfolio
Energy Portfolio 20 As of January 2018
Slide 20: Energy Portfolio
Energy Portfolio 21 As of January 2018
Slide 21: Energy Portfolio
Energy Portfolio 22 As of January 2018
Slide 22: Selected Market: Brazil
Selected Market: Brazil Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +14.0% +15.4% Monster Value Growth +550.1% +525.5% Monster Value Share 14.0% 14.3% Burn Value Growth -37.8% -38.7% Burn Value Share 4.3% 4.1% Monster Energy Portfolio Value Share 18.4% 18.4% Source: Nielsen Value
Slide 23: Selected Market: Chile
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth -0.8% +2.6% Monster Value Growth +30.6% +27.3% Monster Value Share 31.1% 31.3% Source: Nielsen Value Sales to 11/17, All Measured Channels Santa Isabel, Supermarket, Chile Unimarc, Supermarket, Chile 24 Selected Market: Chile 21.7% 29.5
Slide 24: Selected Market: France
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +8.2% +5.3% Monster Value Growth +20.1% +16.1% Monster Value Share 25.5% 26.2% Burn Value Growth +18.6% +5.9% Burn Value Share 1.5% 1.6% Monster Energy Portfolio Value Share 27.1% 27.8% Carrefour, Hypermarket, France Source: Nielsen Val
Slide 25: Selected Market: Germany
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +4.2% +6.9% Monster Value Growth +14.9% +16.5% Monster Value Share 16.1% 15.7% Relentless Value Growth -48.7% -47.7% Relentless Value Share 0.9% 0.9% Monster Energy Portfolio Value Share 17.0% 16.6% Kaufland & Real, Hypermarket, Germany
Slide 26: Selected Market: Great Britain
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth -3.5% -1.7% Monster Value Growth +21.4% +17.0% Monster Value Share 19.1% 19.3% Relentless Value Growth -3.7% +5.0% Relentless Value Share 4.8% 4.6% Monster Energy Portfolio Value Share 23.9% 23.9% ASDA, Hypermarket, Great Britain Source
Slide 27: United Kingdom - Top Fastest-Growing Grocery Products of 2017
Source: The Daily Telegraph, UK 2017 United Kingdom- Top 10 Fastest-Growing Grocery Products of 2017 28
Slide 28: Selected Market: Japan
Last Last 13 Weeks ‘17 4 Weeks ‘17 Energy Category Value Growth +5.1% +10.4% Monster Value Growth +13.5% +15.5% Monster Value Share 44.4% 44.2% Source: Intage Value Sales to 11/17, CVS Only Hypermarket, Japan Convenience, Japan Vending, Japan 29 Selected Market: Japan 39.7% 44.3% 44.4% 44.2% 0% 5% 1
Slide 29: Selected Market: Mexico
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +6.1% +7.7% Monster Value Growth +33.8% +31.7% Monster Value Share 29.4% 29.8% Burn Value Growth -40.3% -37.8% Burn Value Share 2.5% 2.3% Monster Energy Portfolio Value Share 31.9% 32.1% Source: Nielsen Value Sales to 11/17, All Measure
Slide 30: Selected Market: Poland
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +11.9% +17.3% Monster Value Growth +57.2% +78.6% Monster Value Share 7.9% 8.8% Burn Value Growth -5.5% +1.9% Burn Value Share 3.3% 3.0% Monster Energy Portfolio Value Share 11.2% 11.8% E.Leclerc, Supermarket, Poland Source: Nielsen Valu
Slide 31: Selected Market: South Africa
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +21.5% +25.2% Monster Value Growth +18.4% +8.4% Monster Value Share 15.0% 14.1% Strategic Brands Value Growth +29.4% +39.1% Play Value Share 23.2% 23.0% Monster Energy Portfolio Value Share 38.2% 37.1% Pick N Pay, Hypermarket, South Afr
Slide 32: Selected Market: Spain
Last Last 13 Weeks '17 4 Weeks '17 Energy Category Value Growth +8.7% +10.5% Monster Value Growth +12.3% +13.8% Monster Value Share 28.0% 28.5% Burn Value Growth -0.6% -3.1% Burn Value Share 9.4% 9.7% Monster Energy Portfolio Value Share 37.4% 38.3% Alcampo, Hypermarket, Spain Source: Nielsen Value
Slide 33: Value Share Growth in Global Markets
Value Share Growth in Global Markets Monster Value Share - Last 4 Weeks ’17 Portfolio Value Share - Last 4 Weeks ‘17 Australia 7.5% 21.0% Belgium 11.2% 22.7% Brazil 14.3% 18.4% Chile 31.3% 31.3% China 4.1% 4.1% Czech Republic 8.7% 9.2% Denmark 20.9% 24.7% France 26.2% 27.8% Germany 15.7% 16.6% Great
Slide 34: EMEA Transition to KO Bottlers
i EMEA Transition to KO Bottlers 21 Existing CCE & CCH Markets Austria, Belgium, Bulgaria, Cyprus, Czech, Estonia, France, GB, Greece, Hungary, Latvia, Lithuania, Luxembourg, Netherlands, N Ireland, Norway, Poland, Republic of Ireland, Slovakia, Sweden, and Switzerland. 39 Markets Launched / Transit
Slide 35: 2016/2017 APAC Transition to KO Bottlers
Japan Distributed by Asahi beginning May 2012 10 Markets Launched / Transitioned with KO Bottlers in 2016 & 2017 Australia, China, Hong Kong, Macau, Malaysia, New Zealand, Singapore, South Korea, Taiwan, and Vietnam. 7 Markets Planned to Launch / Transition with KO Bottlers in 2018 India, Indonesia,
Slide 36: 2017 LATAM/OCEANIA/CACAR Transition to KO Bottlers
2 Existing KO Markets Bermuda and Puerto Rico. 22 Markets Launched / Transitioned with KO Bottlers in 2016 & 2017 Antigua & Barbuda, Aruba, Bahamas, Brazil, Chile, Colombia, Costa Rica, Curacao, French Guiana, Grenada, Guatemala, Guyana, Haiti, Martinique, Mexico, Nicaragua, Panama, Peru, St. Kitts,
Slide 37: 2017 LATAM/OCEANIA/CACAR Transition to KO Bottlers
2017 LATAM/OCEANIA/CACAR Transition to KO Bottlers Bermuda and Puerto Rico. ‘Antigua & Barbuda, Aruba, Bahamas, Brazil, Chile, Colombia, Costa Rica, Curacao, French Guiana, Grenada, Guatemala, Guyana, Haiti, Martinique, Mexico, Nicaragua, Panama, Peru, St Kitts, St. Maarten, and St. Vincent. 12 Mark
Slide 38: Champions 2017
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Slide 39: Formula 1 2017
FORMULA 1 2017 "i Mercedes Domination Four Straight World Championships LEWIS HAMILTON LEWIS HAMILTON NICO ROSBERG LEWIS HAMILTON 2014 CHAMPION 2015 CHAMPION 2016 CHAMPION 2017 CHAMPION
Slide 40: Winter X Games Champions 2017
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Slide 41: Summer X Games Champions 2017
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Slide 42: 2018 Olympians
2018 UML OLYMPIANS
Slide 43: McGregor vs. Mayweather
MICEREGOR VS. MAYWEATHER si} + 3rd Most Popular Sporting Event of 2017" + Highest Grossing Boxing Match of All Time** © 2nd sh Pay Per View of All Te*** " “y* woe Paste ome “Se cn ia 207 SPR Ost 1 20
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Slide 45: Selected Market: China
Market size 328 million unit cases (192 oz cases)* Monster Value Share in 5 cities is equal to 4.1%** National distribution since June 2017 with focus on 40 cities targeting select customers *Source: Canadean Q3, 2017, **Nielsen retail audit , 5 cities = Beijing, Shanghai, Changsha, Guangzhou, Shenz
Slide 46: Selected Market: China
Selected Market: China + Market size 328 million unit cases (192 oz cases)* + Monster Value Share in 5 cities is equal to 4.1%** National distribution since June 2017 with focus on 40 cities targeting select customers Lianhua, Supermarket, Shanghai FamilyMart, Convenience, Beijing & Min ui : , ria U
Slide 47: China Marketing
CHINA MARKETING = ‘ F » Ng
Slide 48: English Premier League Soccer
ai ENGLISH PREMIER LEAGUE SOCCER {ie NEW FOR 2018 __+ Broadcast in over 180 countries 3 billion cumulative viewers
Slide 49: Music 2017
MUSIC 2017— TOP ARTISTS TOP FESTIVALS W 4: id
Slide 50: E-Sports 2017
E-Sports 2017 | TOP TOURNAMENTS
Slide 51: Social 2017
SOCIAL 2017 si} Monster Energy is a Highly Engaged Brand on Facebook 26.2 Million Fans S Instagram 4.3 Million Fans’ 5.7 Million Views 11 Million Views 3.34 Million Fans 1.43 Million Subscribers
Slide 52: Millennial Stats
Millennial Stats Ten Best Perceived Brands by Millennials "Which of the following brands have you talked about with friends and family in the past ‘two weeks (whether in person, online, or through social media)?" Asked of consumers ‘aged 18-34 who've heard something positive about the brand in the l
Slide 53: US National Promotions 2017
US NATIONAL PROMOTIONS 2017 J} Leveraging Relevant Partnerships BSNS Zz ORIGINS 4 WIN Bia ccmmnes Al (4S a Sie = T1- Kurt Busch/NASCAR T2 - Team Gear TS - Assassin's Creed ERAT woe _
Slide 54: NOS High Performance
NOS HIGH PERFORMANCE VISES TESTE ‘HIGH | ‘PERFORMANCE HIGH PERFORMANCE HIGH PERFORMANCE ATHLETES EVENTS Chris Forsberg
Slide 55: Hard-Working, Easy-Drinking
Hard-Working, Easy-Drinking Habitat For Heroes Bike Culture Hard-Working 58
Slide 56: Hard-Working, Easy-Drinking
Hard-Working, Easy-Drinking at AP SS “ tf op
Slide 57: Street Culture Electronic Music Fire
STREET CULTURE ELECTRONIC MUSIC FIRE 60
Slide 58: Marketing Platforms
MARKETING PLATFORMS d
Slide 59: Street Culture Hip-Hop & Electronic Music
STREET CULTURE HIP-HOP & ELECTRONIC MUSIC 62
Slide 60: Marketing Platforms
MARKETING PLATFORMS see "HIP-HOP & >< ELECTRONIC ~~ MUSIC
Slide 61: Fueling Experiences
Fueling Experiences Festival Partnerships Music Lifestyle 64
Slide 62: Marketing Platforms
MARKETING PLATFORMS 64
Slide 63: Local Urban Music, Street Culture
LOCAL URBAN MUSIC HIP-HOP & HOUSE STREET CULTURE ART, FASHION & DANCE 66
Slide 64: Marketing Platforms
MARKETING PLATFORMS
Slide 65: Build Active Lifestyle, Drive Innovation, Drive Awareness
BUILD ACTIVE LIFESTYLE DRIVE INNOVATION LAUNCH DRIVE AWARENESS 68
Slide 66: Marketing Platforms
MARKETING PLATFORMS B NIEUWE SMAAK NALU PASSION Der aa INNOVATION |
Slide 67: Innovation US 2017
INNOVATION US 2017 "i
Slide 68: Innovation International 2017
INNOVATION INTERNATIONAL 2017 «2 ae
Slide 69: Innovation US 2018
INNOVATION US 2018 si} ADDITIONAL INNOVATION IS POSSIBLE
Slide 70: Affordable Energy
AFFORDABLE ENEREY Wi + Testing affordable energy brands in markets where low-priced energy brands maintain a significant presence. + Strategy is designed to facilitate participation in the affordable energy category without eroding the company's premium energy brands.
Slide 71: Solid Financial Results
Solid Financial Results 25 consecutive years of increased sales since the acquisition of the Hansen beverage business in 1992. Achieved $3.0 billion in net sales in 2016, up 12% over net sales of $2.7 billion in 2015. For the nine months ended September 30, 2017, achieved $2.6 billion in net sales,
Slide 72: Net Sales
Monster Beverage Corporation Net Sales ($ in millions) 29.1% CAGR to December 2016 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 9/30 2016 YTD 9/30 2017 $110.4 $180.3 $348.9 $605.8 $904.5 $1,033.8 $1,143.3 $1,303.9 $1,703.2 $2,060.7 $2,246.4 $2,464.9 $2,722.6 $3,049.4 $2,
Slide 73: Reported Operating Income
Monster Beverage Corporation Reported Operating Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 9/30 2016 YTD 9/30 2017 $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $550.6 $572.9 $747.5 $893.7 $1,085.3 $833.6 $931.7
Slide 74: Adjusted Operating Income
Monster Beverage Corporation Adjusted Operating Income (“OI”) ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9/30/2016 9/30/2017 Reported OI $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $550.6 $572.9 $747.5 $893.7 $1,085.3 $833.6 $931.7 *Adjustme
Slide 75: Reported Net Income
Monster Beverage Corporation Reported Net Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 9/30 2016 YTD 9/30 2017 $5.9 $20.4 $62.8 $97.9 $149.4 $108.0 $208.7 $212.0 $286.2 $340.0 $338.7 $483.2 $546.7 $712.7 $539.7 $619.4
Slide 76: Reported Diluted Earnings Per Share
Monster Beverage Corporation Reported Diluted Earnings Per Share As adjusted for Stock Splits 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 9/30 2016 YTD 9/30 2017 $0.01 $0.04 $0.11 $0.17 $0.25 $0.18 $0.37 $0.38 $0.51 $0.62 $0.65 $0.92 $0.95 $1.19 $0.89 $1.07
Slide 77: Balance Sheet Highlights
Monster Beverage Corporation Balance Sheet Highlights ($ in thousands) September 30, 2017 December 31, 2016 Percentage Change Cash and cash equivalents $465,559 $ 377,582 23% Investments: Short-term investments $ 630,348 $ 220,554 186% Long-term investments $ 7,003 $ 2,394 193% Total Investments $ 6
Slide 78: 2016 Results
Monster Beverage Corporation 2016 Results (in millions except per share data) 2015 2016 $2,722.6 $3,049.4 Reported Net Sales + 12% 2015 2016 $893.7 $1,085.3 Operating Income +21.4% 2015 2016 $546.7 $712.7 Reported Net Income + 30.4% 2015 2016 $0.95 $1.19 Reported Diluted EPS Post Stock Split +25.6%
Slide 79: Q3 2017 Results
Monster Beverage Corporation Q3 2017 Results (in millions except per share data) 3Q16 3Q17 $788.0 $909.5 Reported Net Sales + 15.4% 3Q16 3Q17 $290.4 $317.4 Operating Income +9.3% 3Q16 3Q17 $191.6 $218.7 Reported Net Income + 14.1% 3Q16 3Q17 $0.33 $0.38 Reported Diluted EPS Post Stock Split +15.1%
Slide 80: Q3 2017 Results
Monster Beverage Corporation Q3 2017 Results sagnagman (in millions except per share data) maew $73 $909.5 so004 8317.4 Operating Income +9.3% © Reported Net Sales + 15.4% 3Q16 3Q17 3Q16 3Q17 $191.6 $218.7 $0.33 $0.38 © Reported Diluted Reported Net EPS Post Stock Income + 14.1% Split +16.1% 3Q16 3Q
Slide 81: Monster Beverage Corporation
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