Celsius Holdings, Inc. · NASDAQ:CELH
Celsius — Investor Presentation (November 2018)
44 slides from Celsius's investor presentation, Nov 30, 2018
Slide 1: Celsius Holdings, Inc.
NasoAO.cELH PROVEN PROPRIETARY DISRUPTIVE CELSIUS HOLDINGS, INC. (op id CELSIUS.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Yaad ad CELSIUS
Slide 3: Celsius Holdings overview and 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 category, and of
Slide 4: Celsius Basic
on cast” BASIC LT at CELSIUS. |
Slide 5: Proven functional energy brand
SUGAR - HIGH FRUCTOSE CORN SYR ARTIFICIAL COLORS / FLAVORS: ASPARTAME PRESERVATIVES. PROVEN FUNCTIONAL ENERGY BRAND ADDING CATEGORY VALUE ATTRACTING MILLENNIAL AND HEALTH CONSCIOUS CONSUMERS THERMOGENIC ACCELERATES METABOLISM BURNS BODY FAT BURNS CALORIES PROVIDES HEALTHY ENERGY PROPRIETARY METAPLUS
Slide 6: How does CELSIUS work
OW DOES US’ proprietary MetaPlus” formula, including green tea with EGCG, ginger "and guarana seed, turns on "thermogenesis, a process that boosts your body's metabolic rate." Drinking CELSIUS" prior to fitness activities is proven to energize, accelerate metabolism, burn body fat and calories.
Slide 7: Clinical studies
CLINICAL STUDIES: PROVEN ‘STUDIES REVIEWED AND APPROVED [BY THE NATIONAL ADVERTISING DIVISION (WAD] OF THE ADVERTISING ‘SELF-REGULATORY COUNCIL CELSIUS. STUDY 1 - ob1I0 RESEARCH: STUDY 2- UNIVERSITY OF OKLAHOMA: ‘STUDY 3 - UNIVERSITY OF OKLAHOMA: ‘STUDY 4 - UNIVERSITY OF OKLAHOMA: ‘STUDY 4 - UNIVERS
Slide 8: Best Time Award Winner
BEST 23 TIME AWARD WINNER FUNCTIONAL DRINK
Slide 9: Products, position, placement, promotion
PRODUCTS \. sae POSITION ELSIU “EIT PLACEMENT @ Qg80e PROMOTION
Slide 10: Pioneering fitness drink position
PIONEERING POSITION: FITNESS DRINK CELSIUS. \» NEW GROUND CELSIUS CLINICALLY + HEALTHY ENERGY = enisus a 220 ‘CONVENTIONAL ENERGY if Proven Fess drink CELSIUS PIONEERS l af CELSIUS PROVEN FUNCTION A HEALTHIER ENERGY Consumers are ready for ENERGY 2.0 (natural & healthy] Masses are leaving artifical
Slide 11: CELSIUS HEAT
CELSIUS HEAT POSITION: CELSIUS HEAT is @ Carbonated, Proven To Perform, Thermogenie with METAPLUS, HEAT provides 100mg more caffeine than t originat line, + 2,000mg LsCitruline. CELSIUS CELSIUS CELSIUS. HEAT HEAT HEAT MultPlatinum recording artist FLO RIDA drinks CELSIUS ‘everyday and raves about HE
Slide 12: Product strategy and expansion
YT ad EXPAND TR LAUNCH. ~~ aes PRODUCT Sages A CONcUMER | {INNOVATE CELSIUS. STRATEGY | wuncies | eetives MARKETING Sia) CELSIUS ORIGINALS __ CELSIUSNATURALS INTERNATIONAL TCTOC CC CE a BCAA’. aie cp ae cas cae ca cm ce cn | cat | ety | nt | cate POSTWORKOUT/ ow 1 ME <i @ |\2|\s 4 NORDIC REGION 4 ON
Slide 13: Top seller on Amazon
ee ay, F TOPSELLER CG. ONAMAZON “AMAZON'S CHOICE” WHEN SEARCHING HEALTHY ENERGY (ORGANIC) amazon CELSIUS was ahead of 1,787
Slide 14: Celsius brand performance vs. category
CELSIUS BRAND PERFORMANCE Oger GES SoMRCANTLY VS. CATEGORY | Raila CONVENIENCE CHANNEL CELSIUS. "=" QUTPACING CATEGORY GROWTH 7.2 TOTAL SUB-CATEGORY $8.5 BILLION Ceasy, RANKED TH 1 TOP LATEST 52 WEEKS ENDING 10.7.2018; SHELF STABLE BRAND FUNCTIONAL BEVERAGES; TPL; SPINS SCAN CONVENTIONAL WITH ONLY 9
Slide 15: Distribution channels
DISTRIBUTION CHANNELS — a Publix. meijer in: 1 ecatzis Teeter, Teeter @ pl Qrimess_ Pw mie LajFITNESS Asis cD ae sean BaRRY'S evel meS$ BOOTCAMP _—. warns | | coerce VITAMIN SPECIALTY "AND DRUG amazon — Walmart.com ° »> CELSIUS
Slide 16: Route to market
ROUTE TO MARKET iiicieccietverwomcrounbarion ‘SAMPLING OF KEY DISTRIBUTORS AND WHOLESALERS. @prnick’s <= EAGLE Eby-Broun
Slide 17: Placement
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. 9 Y af CELSI im WORE!
Slide 18: Promotion
PROMOTION THE MAKING OF AN ICON is ‘€ fae
Slide 19: Increasing brand awareness
INCREASING BRAND AWARENESS OVER 250000 "TOUGH MUDDER LEGIONEERS” PARTICIPATING «SPECTATORS TWD EVENTSIN 23US ces MULTILE cies ACROSS THE US CELSIUS ‘SAMPLING TO THE CORE CONSUMERS DURING A CRITICAL USAGE OPPORTUNITY al PARTCIPATEDAS PRESENTING SPONSOR
Slide 20: Fitness partner and consumer ads
r PROVEN TO PEREOR MEET YOUR NEW TRAINING ===> PARTNER T . > cetsius — CELSIUS. CONSUMER ADS -— FITNESS TARGETS ON TREND FOR HONING IN ON TARGET DEMO FITNESS LIFESTYLERS WITH KEY BRAND MESSAGING
Slide 21: Global expansion
GLOBAL EXPANSION rm~ Ww» CELSIUS. CELSIUS” mt CELSIUS. 6°
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'2 2016 ADDS INCREMENTAL GROWTH NORWAY LAUNCH ANNOUNCED FEBRUARY OF 2018 A
Slide 23: Asia distribution partners
DISTRIBUTION PARTNERS PARTNERS WITH DEFINED TERRITORIES WHICH CURRENTLY PROVIDE MARKETING AND SALES SUPPORT WITHIN THEIR TERRITORY. ESTABLISHED: HONG KONG LAUNCHED THROUGH. WATSON WATER DISTRIBUTORS IN 032017 CHINA MARKET LAUNCHED WITH NATIONWIDE DISTRIBUTION THROUGH PARTNERSHIP WITH GIFENG FOOD TEC
Slide 24: China geographical access
18 PROVINCES 8O+ciTES © CELSIUS® ALREADY AVAILABLE IN 45 CITIES GEOGRAPHICAL ace £ ACCESS S a! \»> = 8 OW Big CELSIUS @ Rest of OF network
Slide 25: Qifeng sub-distributor network
QIFENG MANAGES E-COMMERCE DIRECTLY. ITS NETWORK OF SUB-DISTRIBUTORS OFFERS ACCESS TO POINTS OF SALES. CELSIUS® AVAILABLE IN POINTS OF DISTRIBUTION THROUGH 147 SUB-DISTRIBUORS NATIONAL REGIONAL LOCAL
Slide 26: Connecting with Chinese consumers via apps
« WORKOUT AND YOGA APPS TOGETHER WITH KEY ACCOUNTS HAVE | CELSIUS. CONNECTED WITH CHINESE CONSUMERS NATIONALLY.
Slide 27: Connecting with consumers (China)
CONNECTING WITH CONSUMERS (CHINA) LOCAL RETAILERS OFFER DISTRIBUTION ACROSS 45 CITIES WHILE E-COMMERCE ADDRESSES AVAILABILITY GAP
Slide 28: Strategy: objectives and growth roadmap
STRATEGY OBJECTIVES AND GROWTH ROADMAP . en j « ar ieee pero waren OPERATIONAL FOCUS BRAND A ‘TRANSFORM FOR SCALE BUILDING BUILD BRAND EQUITY a FOCUSED DISCIPLINED RESULT ORIENTATED PURPOSE DRIVEN (/_INenease porrroLio sReaTH CHANNEL EXPANSION. ACV GAINS.
Slide 29: Key takeaways
KEY TAKE AWAYS m= RESOUNDING CONSUMER DEMAND - TREND FORWARD | RAPIDLY GROWING REVENUES ‘AND GROSS PROFITS, m= EXPANDED PRODUCT OFFERING jm INNOVATIVE PORTFOLIO CAPITALIZING ON HEALTH & WELLNESS TRENDS | TRANSFORMING OPERATIONS FOR SCALE |= DISCIPLINED DATA DRIVEN TEAM
Slide 30: Financials
CELSIUSE <i: © FINANCIALS§ 3 as a ELSIUS. Ccetsius
Slide 31: Growth trends in revenue
GROWTH TRE! IN REVENUE FULL COMPANY BY YEAR Net Revenue by Year 2015-2018-A/E-@Sep ~$50m* 36am $38m-770 Total Company 2015 2016 2017 m2018YTDSept m2018Est "AGR for 3 Years Total Company = >43.2% — -*Analysts Consensus for FY 2018
Slide 32: Growth trends in revenue by region
GROWTH TRENDS IN REVENUE BY REGION CELSIUS. Net Revenue by Year 2016-2018 0 eT onl Pa ea 0 2015 2016 2017 2018-A/E Full Company -International CARG @ 13% = > Domestic CARG @ 63% -Good Acceptance in “Mass Market” = >Transcending our Core Fitness Orig
Slide 33: Revenue balance by region
REVENUE BALANCE BY REGI CELSIUS. Net Revenue Year 2017 Net Revenue Year 2018 YTD-Sept Domestic eOte TD 67% op Domestic 78% Intl_= Domestic Intl = Domestic the US = > Capitalizing on Health & Wellness trends ing penetration in all major market segments
Slide 34: Growth trends in revenue by quarter
GROWTH TRENDS IN REVENUE BY QUARTER FULL COMPANY CELSIUS. Net Revenue by Quarter 2016- 2018 Despite some seasonality & Intl orders, business reflects an overall continued growth.
Slide 35: Gross profit normalization by year
GROSS PROFIT “NORMALIZATION” BY YEAR CELSIUS. 51.8% 52.2% 50.0 43.0% 412% Large competitors such as Monster exclude Out-Bound Freight as part of Cost of S When “Normalized” on a comparable bi Celsius Margins are north of 50
Slide 36: Balance sheet dashboard
BALANCE SHEET DASHBOARI sv gy’ DSO = > 39 Days w/o International DOH = > 63.6 Days.
Slide 37: Adjusted EBITDA computation
ADJUSTED EBITDA COMPUTATION for the Nine Months Ended Sept 30th Ucetsius Ths Sot, ESR, 20 m0 mow on avncme ow arable common cde “Sinsas5) “G.raass) (10524979) 90306510) Socata maine sages sos 3460 uae fo mee expense on east thon zis Prefered sok edn bow ozs toes a Now-GAAP Adjsted EBITDA Tama Som «=
Slide 38: Focus on driving growth
FOCUS ON DRIVING GROWTH CELSIUS. REALIZE MARGIN PORTFOLIO PRODUCTIVITY INNOVATION MIX OPTIMIZATION
Slide 39: Key investors
KEY INVESTORS Yad > CELSIUS.
Slide 40: Celsius management
“Ccisus MANAGEMENT
Slide 41: Board of directors and executive management
A.BREADTH OF INDUSTRY, FINANC| qcetsius BOARD OF DIREC & EXECUTIVE MANAGE! EXPE! wan noe John Fly Tony Lau
Slide 42: Company contacts and investor relations
aa CELSIUS HOLDINGS, INC. COMPANY CONTACTS INVESTOR RELATIONS 6.2239 CELSIUS. LIVE FIT our vesTor O@OQO®
Slide 43: Income statement
INCOME STATEMENT CELSIUS. Ld Celsius Holdings, Inc. and Subsidiaries Consolidated Statements of Operations on of eee rcs pt Sling sod marketing execs ex tap ‘oad ot apes) ‘etl wallet cemon cole \Wepied average shar ustig ssa arose nega as.70) (a98) “ae FaeCNIZEE} som) sem) 19495 ‘epon308 1386589) os
Slide 44: Balance sheet
Celsius Holdings — Investor Presentation (November 2018) on 6ix