Monster Beverage Corporation · NASDAQ:MNST

Monster Beverage — Investor Presentation (January 2016)

62 slides from Monster Beverage's investor presentation, Jan 12, 2016

  1. 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 Monster Beverage Corporation's (the "Company's") future operating results and other fu

  2. Slide 2: Beverage Landscape U.S.

    Beverage Landscape U.S. *Source: NIELSEN AMC YTD M/E 10/03/15 Energy Drink Category at 8.6% YTD Growth is outpacing total Beverage category growth of 4.2%

  3. Slide 3: Brand Performance - Total U.S. All Channels/Dollars

    Brand Performance - Total U.S. All Channels/Dollars *Source: NIELSEN AMC 13 W/E 12/26/15 vs. Year Ago ALL MEASURED CHANNELS SNAPSHOT AMC All Measured Channels $ Vol $ Vol LY $ Vol Chg $ Vol % Chg $ Shr $ Shr Chg TNA ENERGY $2,813,212,124 $2,556,749,985 $256,462,139 10.0% 100.0 0.0 TOTAL MEC $1,110,5

  4. Slide 4: Brand Performance - Total US All Channels/Units

    Brand Performance – Total US All Channels/ Units *Source: NIELSEN AMC 13 W/E 12/26/15 vs. Year Ago 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 1,041,569,383 978,219,878 63,349,505 6.5% 100.0 0.0 TOTAL MEC 437,235,866 420,42

  5. Slide 5: Energy Category: Dollar Share - All Measured Channels

    Energy Category: Dollar Share – All Measured Channels *Source: NIELSEN AMC 24 M/E 12/26/15

  6. Slide 6: Energy Category: Unit Share - All Measured Channels

    Energy Category: Unit Share – All Measured Channels *Source: NIELSEN AMC 24 M/E 12/26/15

  7. Slide 7: Brand Performance - Convenience/Dollars

    Brand Performance- Convenience/ Dollars *SOURCE: NIELSEN TOTAL US CONVENIENCE13 W/E 12/26/15 VS. YEAR Ago CONVENIENCE SNAPSHOT TOTAL US - CONVENIENCE $ Vol $ Vol LY $ Vol Chg $ Vol % Chg $ Shr $ Shr Chg TNA ENERGY $2,098,519,548 $1,917,961,302 $180,558,246 9.4% 100.0 0.0 TOTAL MEC $842,077,136 $793,

  8. Slide 8: Brand Performance - Convenience/Units

    Brand Performance – Convenience/ Units *SOURCE: NIELSEN TOTAL US CONVENIENCE 13 W/E 12/26/15 VS. YEAR AGO CONVENIENCE SNAPSHOT TOTAL US - CONVENIENCE U Vol U Vol LY U Vol Chg U Vol % Chg U Shr U Shr Chg TNA ENERGY 806,320,293 768,311,571 38,008,722 4.9% 100.0 0.0 TOTAL MEC 348,297,970 342,873,733 5,

  9. Slide 9: Energy Category: Dollar Share - Convenience

    Energy Category: Dollar Share - Convenience *SOURCE: NIELSEN TOTAL US CONVENIENCE 24 M/E 12/26/15

  10. Slide 10: North America Distributor Map

    North America Distributor Map As of January 11, 2016

  11. Slide 11: Distribution of at least one MEC brand following KO Transaction

    Distribution of at least one MEC brand following KO Transaction As of January 11, 2016

  12. Slide 12: Distribution of Monster Energy Drinks

    Distribution of Monster Energy Drinks As of January 11, 2016

  13. Slide 13: Energy Portfolio

    Energy Portfolio As of January 11, 2016

  14. Slide 14: Energy Portfolio

    Energy Portfolio As of January 11, 2016

  15. Slide 15: Energy Portfolio

    Energy Portfolio As of January 11, 2016

  16. Slide 16: Energy Portfolio

    Energy Portfolio As of January 11, 2016

  17. Slide 17: FSOP Coverage Expanded

    FSOP FSOP Coverage Expanded FSOP Coverage following transaction FSOP Channel Sectors Vending Retail On-Premise At Work Eating & Drinking Amuse/Leisure/Rec Universities Lodging/Transport

  18. Slide 18: 2015 EMEA Transition to KO Bottlers

    2015 EMEA Transition to KO Bottlers As of January 11, 2016 21 Existing CCE and CCH Territories 12 Signed and Transitioned/ New Launch Territories 15 Signed and Expecting to Transition/New Launch i

  19. Slide 19: Selected Market: Great Britain

    Selected Market: Great Britain Last Last 13 Weeks 2015 4 Weeks 2015 Energy Category Value Growth + 0.7% - 0.4% Monster Value Growth + 6.5% + 5.5% Monster Value Share 13.1% 14.3% Relentless Value Growth -13.8% -10.3% Relentless Value Share 5.6% 5.3% Monster Energy Portfolio Value Share 18.7% 19.6% Ni

  20. Slide 20: Selected Market: Germany

    Selected Market: Germany Last Last 13 Weeks 2015 4 Weeks 2015 Energy Category Value Growth + 10.2% + 18.4% Monster Value Growth + 32.9% + 25.7% Monster Value Share 12.6% 12.4% Relentless Value Growth - 19.0% - 8.9% Relentless Value Share 2.9% 3.0% Monster Energy Portfolio Value Share 15.5% 15.4% Ede

  21. Slide 21: Selected Market: Spain

    Selected Market: Spain SOURCE: NIELSEN VALUE SALES TO END NOVEMBER 2015, TOTAL ALL MEASURED CHANNELS Last Last 13 Weeks 2015 4 Weeks 2015 Energy Category Value Growth + 2.7% + 7.0% Monster Value Growth + 7.5% + 24.1% Monster Value Share 23.3% 24.6% Burn Value Growth + 3.6% + 2.0% Burn Value Share 11

  22. Slide 22: Selected Market: France

    Selected Market: France SOURCE: NIELSEN VALUE SALES TO END NOVEMBER 2015, TOTAL ALL MEASURED CHANNELS Last Last 13 Weeks 2015 4 Weeks 2015 Energy Category Value Growth + 2.4% + 6.1% Monster Value Growth + 16.1% + 27.7% Monster Value Share 19.9% 21.8% Burn Value Growth - 16.7% - 14.3% Burn Value Shar

  23. Slide 23: Selected Market: South Africa

    Selected Market: South Africa SOURCE: NIELSEN VALUE SALES TO END NOVEMBER 2015, TOTAL ALL MEASURED CHANNELS Last Last 13 Weeks 2015 4 Weeks 2015 Energy Category Value Growth + 28.1% + 32.4% Monster Value Growth + 3.5% + 7.6% Monster Value Share 14.9% 14.8% Play Value Growth + 28.1% + 29.1% Play Valu

  24. Slide 24: Selected Market: Greece

    Selected Market: Greece Energy Category Value Growth Monster Value Growth Monster Value Share SOURCE: IRI VALUE SALES TO END NOVEMBER 2015, TOTAL ALL MEASURED CHANNELS Last 13 Weeks 2015 +1.2% +4.1% 30.5% Last 4 Weeks 2015 +1.7% +4.5% 30.2% Independent Convenience Store, Greece

  25. Slide 25: Selected Market: Belgium

    Selected Market: Belgium Last Last 13 Weeks 2015 4 Weeks 2015 Energy Category Value Growth + 4.9% + 6.2% Monster Value Growth + 14.9% + 14.7% Monster Value Share 8.8% 8.9% Nalu Value Growth +30.9% +32.8% Nalu Value Share 11.2% 11.2% Monster Energy Portfolio Value Share 20.1% 20.2% Carrefour, Superma

  26. Slide 26: Selected Market: Mexico

    Selected Market: Mexico Last 3 Months Ending Last Month October 2015 October 2015 Energy Category Growth + 34.0% + 38.2% Monster Value Growth + 19.4% + 19.7% Monster Value Share 28.7% 26.7% Burn Value Growth + 1.7% + 3.7% Burn Value Share 5.5% 6.1% Monster Energy Portfolio Value Share 34.2% 32.8% 7

  27. Slide 27: Selected Market: Japan

    Selected Market: Japan Supermarket Convenience store Supermarket Supermarket SOURCE: INTAGE VALUE SALES TO END NOVEMBER 2015, TOTAL ALL MEASURED CHANNELS Last 3 Months Ending Last Month November 2015 November 2015 Energy Category Growth + 3.2% + 2.9% Monster Value Growth + 26.8% + 27.6% Monster Valu

  28. Slide 28: Selected Market: Chile

    Selected Market: Chile Last 3 Months Ending Last Month November 2015 November 2015 Energy Category Growth + 15.0% + 14.2% Monster Value Growth + 74.9% + 70.1% Monster Value Share 18.5% 19.3% Burn Value Growth + 7.8% + 6.2% Burn Value Share 2.2% 2.2% Monster Energy Portfolio Value Share 20.7% 21.5% K

  29. Slide 29: Selected Market: Brazil

    Selected Market: Brazil Last 3 Months Ending Last Month November 2015 November 2015 Energy Category Growth - 5.9% - 9.2% Monster Value Growth - 37.7% - 41.3% Monster Value Share 3.8% 3.7% Burn Value Growth - 14.5% - 16.1% Burn Value Share 9.4% 9.3% Monster Energy Portfolio Value Share 13.1% 13.0% Po

  30. Slide 30: Selected Market: Australia

    Selected Market: Australia Last 3 Months Ending Last Month November 2015 November 2015 Energy Category Growth + 2.7% + 2.9% Monster Value Growth - 16.2% - 20.3% Monster Value Share 3.8% 3.6% Mother Value Growth + 2.6% + 0.6% Mother Value Share 17.7% 18.0% Monster Energy Portfolio Value Share 21.5% 2

  31. Slide 31: Selected Market: Australia

    Selected Market: Australi a Ye Last 3 Months Ending Last Month November 2015 November 2015 + Energy Category Growth + 2.7% + 2.9% + Monster Value Growth - 16.2% - 20.3% + Monster Value Share 3.8% 3.6% + Mother Value Growth + 2.6% +0.6% + Mother Value Share 17.7% 18.0% + Monster Energy Portfolio Valu

  32. Slide 32: Monster Racing

    MONSTER RACING bi wr ROMAIN FEBVRE BS apie ee re 7. WORLD SUPERBIKE CHAMPION “WORLD RALLY X CHAMPION MIXGP WORLD CHAMPION

  33. Slide 33: Scarborough Research fan data

    Source: Scarborough Research 2013, Based on Adults 18+, “Fan”=Any Interest

  34. Slide 34: New Sports 2015

    NEW SPORTS 2015 Wi Ure DRAG RAGING #7 INPOINT STANDING — ESPN ANNUAL COVERAGE HST GROWING SPORT AMONG 18-34 YEAR OLDS

  35. Slide 35: Monster Energy Music

    MONSTER ENERGY MUSIC {J} "Some MINGH "ROCK ee oo" PypmMe ALLEGIANCE = pri Yocezzen camcuma FURTRUCK — AmiEerer REBELLION Le aerial Were Meee.

  36. Slide 36: eSports

    eSPORTS % tag ee © WP ee THE INTERNATIONAL ~ 82 MILLION VIEWERS © TOP. TEAMS: ==

  37. Slide 37: Source: iMedia Connection, July 2, 2015

    Source: iMedia Connection, July 2, 2015

  38. Slide 38: Adweek: Monster Energy

    ADWEEK: MONSTER ENERGY ANE NE TAD TEN CONT? CONTENT CRLATARS ADWEEK FEATURED ARTICLE “Brands are focusing a lot Monster Energy: 28,237,230 more on partnering with this new mix of sports influencer networks and publishers that have massive audiences,” said Kevin Shively, senior content marketing mana

  39. Slide 39: Monster Video of the Year

    MONSTER VIDEO OF THE YEAR —{{] om © eine Wau [HOONIGAN] KEN BLOCK'S GYMKHANA SEVEN: WILD IN THE STREETS OF LOS ANGELES oo 30,879,764

  40. Slide 40: NOS: Marketing Platform

    NOS: MARKETING: PLATFORM i AUTO RACING b CAR CULTURE = KYLE BUSCH a 2015 NASCAR CHAMPION

  41. Slide 41: Full Throttle

    f (isi FULL- THROTTLE ii} FIGHTER BRAND POSITIONED TO TAKE ON LOW-PRICED COMPETITORS fhron! a ry ; & ke + HARD-WORKING. EASY-DRINKING. —|

  42. Slide 42: Original

    * ORIGINAL ——_——

  43. Slide 43: Burn

    N Burn Gowen OLD | burn L iy | bury i burn @

  44. Slide 44: Burn Marketing Platforms

    ENERGY ORINK () buch’ — MARKETING PLATFORMS —{)]

  45. Slide 45: Burn Major Topics

    {y burn MAJOR TOPICS i ENERGY ORINK MUSIC MARKETING of | r* £ [BURN DS 4 ~ AMBASSADORS. * / 1S) gS conn? ) are. oY orc H je om PE SIEETS) | EYRBRN rASHION. Fy ; =" & LIFE E IREAK DANCE, be bi pe

  46. Slide 46: [LOGO]

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  47. Slide 47: [LOGO]

    [LOGO]

  48. Slide 48: Relentless: Marketing Pillars

    <AeffutlSé-- RELENTLESS: MARKETING PILLARS

  49. Slide 49: [LOGO]

    [LOGO]

  50. Slide 50: Marketing Platforms

    aellcogg MARKETING PLATFORMS

  51. Slide 51: Low Calorie

    LOW CALORIE

  52. Slide 52: New Products Q1 2016

    Q1 2016 Q2 2016 New Products Q1 2016

  53. Slide 53: Solid Financial Results

    Solid Financial Results 23 consecutive years of increased sales since the acquisition of the Hansen beverage business in 1992. Achieved $2.5 billion in net sales in 2014, up 9.7% over net sales of $2.2 billion in 2013. For the nine months ended September 30, 2015, achieved $2.1 billion in net sales,

  54. Slide 54: Monster Beverage Corporation Net Sales

    Monster Beverage Corporation Net Sales ($ in millions) 32.6% CAGR to December 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 9/30 2014 YTD 9/30 2015 $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 $1,859.3 $2,077.1

  55. Slide 55: Reported Operating Income

    Monster Beverage Corporation Reported Operating Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 9/30 2014 YTD 9/30 2015 $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $550.6 $572.9 $747.5 $554.6 $665.2

  56. Slide 56: Adjusted Operating Income

    Monster Beverage Corporation Adjusted Operating Income (“OI”) ($ in millions) 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 $554.6 $665.2 *Adjustments 6.5 25.0 117.9 - 2.8 - 1.8 1.1 3.5 28.7 20.4 17.5 177.8 Adjusted OI $9.8 $33.9 $103.4 $175.1 $256.0 $2

  57. Slide 57: Reported Net Income

    Monster Beverage Corporation Reported Net Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 9/30 2014 YTD 9/30 2015 $5.9 $20.4 $62.8 $97.9 $149.4 $108.0 $208.7 $212.0 $286.2 $340.0 $338.7 $483.2 $357.9 $408.0

  58. Slide 58: 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 YTD 9/30 2014 YTD 9/30 2015 $0.04 $0.11 $0.33 $0.50 $0.76 $0.55 $1.10 $1.14 $1.53 $1.86 $1.95 $2.77 $2.06 $2.17

  59. Slide 59: Balance Sheet Highlights

    Monster Beverage Corporation Balance Sheet Highlights ($ in thousands) September 30, 2015 December 31, 2014 Percentage Change Cash and cash equivalents $1,240,717 $ 370,323 235% Investments: Short-term investments $1,544,710 $ 781,134 98% Long-term investments $ 34,355 $ 42,940 -20% Total Investment

  60. Slide 60: 3rd Quarter Results

    Monster Beverage Corporation 3rd Quarter Results (in millions except per share data) 3Q14 3Q15 $636.0 $756.6 Reported Net Sales 19.0% 3Q14 3Q15 $121.6 $174.6 Reported Net Income 43.6% 3Q14 3Q15 $189.9 $291.4 Reported Operating Income 53.5% 3Q14 3Q15 $0.70 $0.84 Reported Diluted EPS 20.2%

  61. Slide 61: 3rd Quarter Results

    Monster Beverage Corporation 3 Quarter Results (in millions except per share data) Te 3Q14 3Q15 $291.4 $756.6 $189.9 $636.0 Reported @Reported | Operating Sales 19.0% Income 53.5% 3Q14 3Q15 3Q14 3Q15 $174.6 $0.84 $0.70 $121.6 Reported Net Reported Income 43.6% Diluted EPS 20.2% 3Q14 3Q15

  62. Slide 62: Monster Beverage Corporation, January 12, 2016

    { BEVERAGE CORPORATION JANUARY 12, 2016. et HERWEIGHT PION

Monster Beverage — Investor Presentation (January 2016) on 6ix