Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Hansen Natural — Investor Presentation (September 2005)
40 slides from Monster Beverage's investor presentation, Sep 22, 2005
Slide 1: September 2005
September 2005
Slide 2: Safe Harbor Statement
Safe Harbor Statement atural This material contains certain “forward-looking” statements. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein a
Slide 3: Introduction
Introduction Septeribor 2005, Pages
Slide 4: Introduction, cont'd.
Introduction, cont'd. ati + Hansen's is a 70 year old trusted brand that stands for high quality, “better for you” natural beverages. + Hansen's formulates and markets unique premium beverages at the forefront of consumer trends. + Hansen's enjoys leadership positions across several categories, incl
Slide 5: Introduction, cont'd. Gross Annual Sales
Introduction, cont'd. angen Gross Annual Sales (millions) Since 1998, Hansen's has enjoyed an annual growth rate of 25.4% through 2004. 1998 1999 2000 amt 2m 203 2004 In 2005, Hansen's has continued its upward growth trend. Acomparison of Quarter 2 2005 to Quarter 2 2004 shows: >The business grew 80
Slide 6: Financial Performance
Financial Performance angen + Hansen's continues to enjoy excellent operating performance, with continuing growth. + The Company's operating results are summarized below: Gross Sales (Millions) _$ 1155 $ 1385 $ B70 § S80 $ 1049 Net Sales soa 1803 «1 54 Cost of Sales 7 655 959 23405 Gross Proft Ba 23
Slide 7: Product Line Overview
Product Line Overview angen vate A Brief Snapshot of the Major Product Portfolios Warehouse + Exclusive contracts for apple and blended juice 64 oz. for CA WIC Program (started July ‘04). Additional blended juice launched in 2005. ([[iesteroor as Fase
Slide 8: Product Line Overview
Product Line Overview A Brief Snapshot of the Major Product Portfolios ‘atitral DsD + 59% of 2004 gross sales * Includes Monster, Lost, Hansen’s Energy and Energade + Packaged in 8 oz., 16 oz., and 23.5 oz. size cans Seto 705 L_ Pave
Slide 9: Hansen's Natural Soda
Hansen's Natural Soda ([[ieotener 205 Foes]
Slide 10: Blue Sky Brand
Blue Sky Brand [[ievtenner 205 | Lf]
Slide 11: Hansen's Natural Soda Portfolio
Hansen's Natural Soda Portfolio atural Soda Product Attributes > All natural, no preservatives, caffeine free, and in the case of Hansen’s, sodium free > Great tasting » No artificial colors or flavors Soebo 205 |
Slide 12: Hansen's Natural Soda Portfolio
Hansen's Natural Soda Portfolio Hanger) Natafal > Hansen’s is the leading natural soda in the U.S. » Blue Sky is the leading natural soda in the health food category > Substantial growth in Hansen's diet sodas sweetened with Splenda » Predominantly Western distribution at mainstream grocery, club, h
Slide 13: Hansen's 100% Juice & Juice Blends
Hansen's 100% Juice & Juice Blends Hangers a aa AY Od SY > ([[ieotener 205 Fata]
Slide 14: Hansen's Smoothies
Hansen's Smoothies (eestor 205 Fate]
Slide 15: Hansen's Tetra Pack Juice Drinks
Hansen's Tetra Pack Juice Drinks Haren fat ([[ieotener 205 Panes]
Slide 16: Rumba Energy Juice
Rumba Energy Juice Fanner vate ([[ieotener 205 Faneve
Slide 17: Hansen's Juice Portfolio
Hansen's Juice Portfolio Juice Product Attributes >» Great tasting/premium positioning » Enhanced with vitamins and/or calcium » First shelf-stable smoothies in the U.S. pone Septeribor 2005, Paget?
Slide 18: Hansen's Juice Portfolio
Hansen's Juice Portfolio atural > Hansen's apple juice is the #1 shelf-stable bottled juice in Southern and Northern California.* Hansen's apple grape juice is the #4 and #8 shelf-stable bottled juice in Southern and Northern California, respectively.* > Apple and blended juice WIC contracts provide
Slide 19: Energy Drinks
Energy Drinks Hanger) Natutal Septeribor 2005, Page ta
Slide 20: Monster Energy Drinks
Monster Energy Drinks
Slide 21: Energy Drinks
Energy Drinks Seno 205 Poet]
Slide 22: Hansen's Energade
Hansen's Energade [[ievtener 205
Slide 23: Controlled Label Energy Drinks
Controlled Label Energy Drinks Hansen Septeribor 2005, Page 2s
Slide 24: Hansen's Energy Portfolio
Hansen's Energy Portfolio atieal Energy Product Attributes > Great tasting > 16 oz. value size > Efficacious formulations, taste profiles, and image are important contributors to success > Products cover broad energy demographics Septeribor 2005, Ltrs
Slide 25: Hansen's Energy Portfolio
Hansen's Energy Portfolio atural > Energy market is the fastest growing segment of U.S. beverage industry. > $1 billion at wholesale in 2004. Projected 2005 growth between 30%-35%, * 2005, 2Q sales-convenience suggest growth 60%+ (per Nielsen).? > Monster is one of the fastest growing major energy d
Slide 26: Category Leaders - Convenience
jory Leaders-Convenience y Monster 22% / Full Throttle / 13% Source: AC Nielsen 12 Wks Ending 618/05 Total US Convenience Trade Major Market Septeribor 2005, Page 26
Slide 27: Energy drink brand market share
Red Bull Monster Rockstar No Fear Full Throttle Adrenaline Rush Amp ..Lost KMX Other Total Source: AC Nielson 12 Wks Ending 618/08 Total US- Convenience Trade Major Market mus 2005 | [rae
Slide 28: Focus on Monster Energy
Focus on Monster Energy Fastest Growing Energy Brand in the U.S. Nat + Proven products with potential for even greater sales velocity and distribution through effective distribution system. Significant convenience chain distribution gains. + Monster Assault recently launched. + Separate brand facili
Slide 29: Pro Circuit/Kawasaki Racing
PRO CIRCUIT/KAWASAKI RACING + MX/SX is the pinnacle of Action Sports. + Pro Circuit Racing is a well respected “perennial winner” with 14 championships in 45 years. + Nearly one million spectators will attend the 2005 MX/SX racing season. + TV coverage will reach approximately 5 million plus viewers
Slide 30: Monster Energy Pro 2005
MONSTER ENERGY PRO 2005 + Monster Energy Pro Presented by Billabong + North Shore, Oahu, Hawaii February 15th - 25th + World Famous Bonsai Pipeline + ASP 4-star event, $60,000 prize purse + 30-minute Fox Sports Net TV Program (Summer *05) * Billabong Hosted Web Cast, Seto 705 I
Slide 31: Billabong XXL Big Wave Awards
nr BILLABONG XXL BIG WAVE AWARDS Elan MONDTER The Billabong XXL Award will be won by the surfer who, by any means available, catches and successfully rides the single biggest wave of the year based on analysis of the available images. + Billabong Biggest Wave Award + Monster Biggest Paddle Wave Awar
Slide 32: Monster Vans Warped Tour
MON STER' Van's Warped Tour Faery ENERGY * Most popular, longest running Action Sports/Music Festival in the United States. * MONSTER has been a sponsor for 3 years. = 49 concert dates throughout U.S. and Canada. = MONSTER is the “Official Energy Drink” of the Vans Warped Tour 2005. [[ievtener 205 L
Slide 33: Las Vegas Monster-Rail
LAS VEGAS MONSTER-RAIL cloner + Las Vegas is the “most visited city” in the world, approximately 40-million people visit Las Vegas every year. + The monorail connects the “Las Vegas Strip” to the Las Vegas Convention Center and will connect to the Fremont Street Experience and McCarran International
Slide 34: Channel Mix Summary
Channel Mix Summary fatiita + Hansen's beverages can be found in all major channel types: 2004 Channel Mix Channel Mix Three Months Ended June 30, 2005 Expat / Mise / Food Service Export / Mie / Reta / Speci fetal speciatly/_“taodsendce Wholrale = here Ed 0% Health Food * Health Food « oll Service D
Slide 35: Product Mix Summary
Product Mix Summary Hanger) vate + Hansen's has continued to diversify its product lines: 2004 Product Mix Product Mix Three Months Ended June 30, 2005 warehouse 29% Warehouse 1% ([[iesteroor as Fane
Slide 36: Warehouse Geographic Mix Summary
Warehouse Geographic Mix Summary angen Natal 2004 Geographic Mix Geographic Mix Three Months Ended June 30, 2005 central 1% West Contral Southeast "93 ot 2 Northeast T% California 70% California Seto 705 [Paes
Slide 37: DSD Geographic Mix Summary
DSD Geographic Mix Summary angen Natifal 2004 Geographic Mix Geographic Mix Three Months Ended June 30, 2005 west Southeast Southeast 10% Northeast’ 7% California California ate 288 Septeribor 2005, Page 37
Slide 38: Distribution Strategy and Logistics
Distribution Strategy and Logistics Hansen's Products Reach Customers Nationwide Customers + The table to the right demonstrates the diversity of Hansen's customer base. Value Chain / Logistics + Hansen's contracts with a number of co-packers for manufacture. pone Channel Selected Customers Grocery
Slide 39: Growth Strategy
Growth Strategy Four-Pronged Approach Grow existing brands Develop and launch new products / brands including Rumba Energy Juice Joker Mad Energy Monster 23.5 oz and 8 oz. cans Monster Khaos Jost Five-O Jost Perfect 10 Fizzit Others Expand distribution Increase quality and penetration of existing di
Slide 40: Searchable text section of graphics shown above
Searchable text section of graphics shown above [G RAPHIC] September 2005 Saf e Harbor Statement [LOGO] This material contains certain “forward-looking” statements. These statements are based on management’s current expectations and are naturally subject to uncertainty and changes in circumstances.
Hansen Natural — Investor Presentation (September 2005) on 6ix