Celsius Holdings, Inc. · NASDAQ:CELH
Celsius — Investor Presentation (May 2018)
43 slides from Celsius's investor presentation, May 18, 2018
Slide 1: Celsius Holdings, Inc. May 2018 Investor Presentation
CELSIUS HOLDINGS, INC. May 2018 Investor Presentation NASDAQ:CELH
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 2018 INVESTOR PRESENTATION This presentation may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius +ROGL
Slide 3: Our Mission
OUR MISSION Celsius Holdings, Inc. (Nasdaq: CELH), founded in April, 2004, is a global company, with a proprietary, clinically proven formula for flagship brand CELSIUS ® . Our mission - to become the global leader of a branded portfolio which is proprietary, clinically proven or innovative in its c
Slide 4: Brand Basics
Yo w\» CELSIUS. LIVE FIT BRAND BASICS
Slide 5: Brand attributes: thermogenic, MetaPlus blend, no sugar
THERMOGENIC ACCELERATES METABOLISM BURNS BODY FAT BURNS CALORIES PROVIDES HEALTHY ENERGY PROPRIETARY MetaPlus ® BLEND NO SUGAR NO HIGH FRUCTOSE CORN SYRUP NO ASPARTAME UNIQUE BRAND NO PRESERVATIVES NO ARTIFICIAL COLORS ATTRIBUTES NO ARTIFICIAL FLAVORS VERY LOW SODIUM VITAMIN-INFUSED T R E N D F O RW
Slide 6: How Does It Work?
HOW DOES IT WORK? &(/6,86¶_SURSULHWDU\_0HWD3OXV ® formula, including green tea with EGCG, ginger and guarana seed, turns on thermogenesis, a process that boosts \RXU_ERG\¶V_PHWDEROLF_UDWH_ Drinking CELSIUS ® prior to fitness activities is proven to energize, accelerate metabolism, burn body fat and
Slide 7: Clinical Studies: Proven
CLINICAL STUDIES: PROVEN Studies reviewed and approved by the National Advertising Division (NAD) of the Advertising Self-Regulatory Council PEER REVIEWED CLINICAL STUDIES VALIDATING CLAIMS Study 1. Ohio Research : Publishe d In Journal of Internationa l Society of Sports Nutrit io n Stu d y 5. Un i
Slide 8: Best Functional Drink Award
BEST FUNCTIONAL DRINK CELSIUS HEAT WINS 3%(67_3$&.$*,1*_'(6,*1´_ 2018 InnoBev Global Soft Drinks Awards by Zenith! INNOBEV, GLOBAL INNOVATION OF AWARD WINNER, THE YEAR 2017 APRIL 2017 BEVERAGE INDUSTRY 23TIME AWARD WINNER 3%HVW_)XQFWLRQDO_'ULQN´ BEST IN ENERGY CATEGORY 8
Slide 9: Products, Position, Placement, Promotion
PRODUCTS POSITION PLACEMENT PROMOTION
Slide 10: Pioneering Position: Fitness Drink
PIONEERING POSITION: FITNESS DRINK CELSIUS pioneers new ground Consumers are ready for ENERGY 2.0 (natural & healthy) CLINICALLY PROVEN FUNCTION + Masses are leaving artificial or sugary CSDs and other categories in droves HEALTHY ENERGY 6XJDU\_(QHUJ\_([LW_LV_12:≪ CELSIUS is a proven Fitness Drink C
Slide 11: Celsius Heat Position
CELSIUS HEAT POSITION: 75$,1(5¶6_*5$'( CELSIUS HEAT is a Carbonated, Proven To Perform, Thermogenic with METAPLUS. HEAT provides 100mg more caffeine than the original line, + 2,000mg L-Citruline. Multi-Platinum recording artist FLO RIDA is the a brand ambassador kicking off the QHZ_3529(1_FDPSDLJQ__
Slide 12: Business Strategy
BUSINESS STRATEGY EXPAND AT RETAIL LAUNCH NEW ITEMS REPEAT INTRO & & (INNOVATE NEW PRODUCT LAUNCHES CONSUMER SEED PIPELINES ITEMS) MARKETING PUSH ORIGINALS CELSIUS HEAT NATURALS ON-THE-GO Powders BCAA* - Post Workout / Nordic Region Only * First Decaffeinated Skus 12
Slide 13: Top Seller on Amazon
TOP SELLER ON AMAZON # 1 3$0$=21¶6_&+2,&(´_ZKHQ_VHDUFKLQJ_ Healthy Energy (Organic) 1,500+ lifetime reviews, 4.3 Star Rating +54 YOY Revenue Growth, Q1 +47 YOY Case Growth CELSIUS was ahead of the curve with its relationship with Amazon. Our brand is on PRIME + Subscribe & Save. 13
Slide 14: Celsius Brand Performance vs. Category
CELSIUS BRAND PERFORMANCE VS. CATEGORY CONVENIENCE CHANNEL CELSIUS SIGNIFICANTLY OUTPACING CATEGORY GROWTH RATE BRAND CELSIUS +40.3% with 11.7% ACV points * OUTPACING CATEORY GROWTH BY 33.8X TOTAL CATEGORY CATEGORY GROWTH 0.01+% $11.2 BILLION OVER 200+ BRANDS RANKED 30 TH TOP BRAND CATEGORY: SHELF S
Slide 15: Distribution Channels
DISTRIBUTION CHANNELS SAMPLING OF KEY CUSTOMERS IN EACH CHANNEL NATURAL CONVENTIONAL CONVENIENCE CHANNEL GROCERY 2017 VITAMIN SPECIALTY FITNESS MILITARY E-COMMERCE & DRUG 15
Slide 16: Route to Market
ROUTE TO MARKET SAMPLING OF KEY DISTRIBUTORS AND W HOLESALERS SUPPLY CHAIN, DISTRIUBITON / WHOLESALER NETWORK FOUNDATION 16
Slide 17: Placement: Energy, Functional
PLACEMENT: ENERGY, FUNCTIONAL EACH CHANNEL HAS A DEFINED PLACEMENT STRATEGY. CELSIUS IS SOLD AMBIENT AND COLD ACROSS CHANNELS, IN GROCERY OR PHARMACY IN MULTIPACKS. IN FITNESS / EMERGING CHANNELS, COLD. 17
Slide 18: Promotion: The Making of an Icon
PROMOTION THE MAKING OF AN ICON
Slide 19: Increasing Brand Awareness
INCREASING BRAND AWARENESS PARTCIPATED AS A PRESENTING SPONSOR 29(5_________3728*+_08''(5_/(*,21((56´_3$57,&,3$7,1*___63(&7$7256 100 EVENTS IN 33 US CITIES MULTIPLE CITIES ACROSS THE US SAMPLING TO THE CORE CONSUMERS DURING A CRITICAL USAGE OPPORTUNITY 19
Slide 20: Consumer Ads - Fitness Targets
CONSUMER ADS ± FITNESS TARGETS ON TREND FOR FITNESS HONING IN ON TARGET DEMO LIFESTYLERS WITH KEY BRAND MESSAGING 20
Slide 21: Global Expansion
GLOBAL EXPANSION NORDIC CHINA HONG KONG
Slide 22: Europe Distribution Partners
EUROPE DISTRIBUTION PARTNERS PARTNERS WITH DEFINED TERRITORIES WHICH CURRENTLY PROVIDE MARKETING AND SALES SUPPORT WITHIN THEIR TERRITORY. Established: Sweden - Top selling FITNESS drink in Sweden Finland expansion launched in Q2 2016 adds incremental growth Norway launch announced February of 2018
Slide 23: Asia Distribution Partners
ASIA DISTRIBUTION PARTNERS PARTNERS WITH DEFINED TERRITORIES WHICH CURRENTLY PROVIDE MARKETING AND SALES SUPPORT WITHIN THEIR TERRITORY. Established: Hong Kong launched through AS Watson Water distributors in Q3 2017 China market launched with nationwide distribution through partnership with Qifeng
Slide 24: Geographical Access
GEOGRAPHICAL ACCESS 18 Provinces 80+Cities Celsius ® already available in 35 cities 24
Slide 25: Go To Market & Channel Access
GO TO MARKET & CHANNEL ACCESS Qifeng manages e-commerce directly. Its network of over 500 sub-distributors offers access to over 40,000 points of sales. NATIONAL REGIONAL LOCAL CELSIUS ® AVAIALBLE IN OVER 13,000 POINTS OF DISTRIBUITON THROUGH 68 SUB-DISTRIBUORS 25
Slide 26: Connecting With Consumers (China)
CONNECTING WITH CONSUMERS (CHINA) :RUNRXW_DQG_<RJD_$33V_WRJHWKHU_ZLWK_.2/¶V_KDYH_ connected with Chinese consumers nationally. 26
Slide 27: Connecting With Consumers (China)
CONNECTING WITH CONSUMERS (CHINA) Local retailers offer distribution across 35 cities while e-commerce addresses availability gap 27
Slide 28: Strategy Objectives and Growth Roadmap
Strategy Objectives and Growth Roadmap Focused Disciplined Result Orientated Team Purpose Driven Value Supply chain Build Brand Equity Increase Portfolio Breath Channel Expansion ACV Gains Improve Margins Data Analytics Operational Focus Transform for Scale 28
Slide 29: Celsius Financials
Cc CELSIUS. LIVE FIT CELSIUS FINANCIALS
Slide 30: Key Take Aways
KEY TAKE AWAYS R E S O U N D I N G C O N S U M E R D E M A N D - T R E N D F O R WA R D R AP I D LY G R O W I N G R E V E N U E S AN D G R O S S P R O F I TS E x p a n d e d p r o d u c t o f f e r i n g I n t e r n a t i o n a l e x p a n s i o n c o n t i n u e s t o e x p a n d m a r k e t o p p
Slide 31: Income Statement Summary
INCOME STATEMENT SUMMARY ( $ i n m i l l i o n s ) R e v e n u e G r o s s P r o f i t US Int. Total 14 $4.8 $4.6 $4.7 12 $3.8 10 8 $2.8 $2.9 $2.6 $2.4 6 $1.8 $2.0 $1.5 $1.7 $1.5 4 2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 '15 '15 '15 '15 '16 '16 '16 '16 '17 '
Slide 32: Strong Financial Results
STRONG FINANCIAL RESULTS Net Sales Q1 - 2018 Net Sales FY17 By Channel (% Change vs PY) (% Change vs PY) 40,000,000 14,000,000 +59% +101% 35,000,000 12,000,000 30,000,000 10,000,000 25,000,000 +72% +69% 8,000,000 20,000,000 6,000,000 15,000,000 +37% 4,000,000 +118% 10,000,000 +100% 5,000,000 2,000,0
Slide 33: Strong Financial Results
STRONG FINANCIAL RESULTS &XUUHQW_$VVHWV_4__μ__ /LDELOLWLHV_4__μ__ Total $29M Current $10.4m LT $3.5m 35,000,000 12,000,000 30,000,000 10,000,000 25,000,000 8,000,000 20,000,000 6,000,000 15,000,000 4,000,000 10,000,000 2,000,000 5,000,000 0 0 Accounts Accrued Long Term Payable & Prefereed Debt Accru
Slide 34: Focus on Driving Growth
FOCUS ON DRIVING GROWTH Realize Margin Portfolio Trade Productivity Innovation Mix Optimization
Slide 35: Key Investors
KEY INVESTORS L I K A - S H I N G C A R L D e S A N T I S K I M O R A L E E S I M M O N S Horizon Ventures: Celebrity & business mogul (several Former Founder and Chairman investment arm of Mr. Li companies), powerful brand builder & of ReXall Sundown Inc. which Ka-6KLQJ__$VLD¶V_ influencer KH_EXLOW
Slide 36: Celsius Management
CELSIUS MANAGEMENT P E O P L E = D I F F E R E N C E M A K E R S JOHN FIELDLY - CEO & INTERIM CFO John Fieldly was named President and Chief Financial Officer of Celsius Holdings, Inc. in 2018 and is presently the FRPSDQ\¶V interim and CFO. He brings nearly 20 \HDUV¶ experience in business managemen
Slide 37: Management Bench Strength
MANAGEMENT BENCH STRENGTH FOCUSED DISIPLINED RESULTS ORIENTED PURPOSE DRIVEN 37
Slide 38: Board of Directors
BOARD OF DIRECTORS A BREADTH OF INDUSTRY, FINANCIAL, & EXECUTIVE MANAGEMENT EXPERTISE William H. Milmoe Kevin Harrington John Fieldly CO-CHAIRMAN DIRECTOR DIRECTOR Finance and accounting New product development Corporate Finance President CDS International Celsius CFO, Interim CEO 79_VKRZ_36KDUN_7DQ
Slide 39: Key Take Aways
KEY TAKE AWAYS RESOUNDING CONSUMER DEMAND STRONG PURPOSE TO BE THE LEADING FITNESS BRAND INCREASING DISTRIBUTION INCREASING GLOBAL EXPANSION INNOVATIVE PORTFOLIO CAPITALIZING ON HEALTH & WELLNESS TRENDS TRANSFORMING OPERATIONS FOR SCALE DISIPLINED DATA DRIVEN TEAM 39
Slide 40: Celsius Holdings, Inc. Company Contact
CELSIUS HOLDINGS, INC. C O M PA N Y C O N TA C T John Fieldly, CEO & Interim CFO Celsius Holdings, Inc. 561.276.2239 jfieldly@celsius.com I N V E S T O R R E L AT I O N S Cam eron Donahue, Partner Hayden IR 651.653.1854 cam eron@haydenir.com VISIT OUR NEW INVESTOR W EBSITE: CELSIUSHoldingsINC.COM 40
Slide 41: Income Statement
INCOME STATEMENT Celsius Holdings, Inc. and Subsidiaries Consolidated Statements of Operations For the three months ended March 31, 2018 2017 Revenue $ 12,059,976 $ 6,000,429 Cost of revenue 7,296,295 3,617,623 Gross profit 4,763,681 2,382,806 Selling and marketing expenses 5,599,271 2,153,087 Gener
Slide 42: Balance Sheet
BALANCE SHEET Celsius Holdings, Inc. and Subsidiaries Consolidated Balance Sheets March 31, 2018 December 31, (Unaudited) 2017 (1) ASSETS Current assets: Cash $ 9,987,713 $ 14,186,624 Accounts receivable, net 9,073,880 6,375,658 Inventories, net 6,668,742 5,305,505 Prepaid expenses and other current
Slide 43: Reconciliation of Non-GAAP Adjusted EBITDA
RECONCILIATION OF NON-GAAP ADJUSTED EBITDA 43