Celsius Holdings, Inc. · NASDAQ:CELH
Celsius — Investor Presentation (March 2019)
41 slides from Celsius's investor presentation, Mar 15, 2019
Slide 1: Celsius Holdings, Inc. March 2019 Investor Presentation
CELSIUS HOLDINGS, INC. MARCH 2019 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
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 Holdings’ future results of operations and/or financia
Slide 3: Company 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
Slide 4: CELSIUS product lineup
Yt ceLsius s ~ cess ™ BASIC
Slide 5: Proven functional energy
PROVEN FUNCTIONAL ENERGY ‘THERMOGENIC ‘ACCELERATES METABOLISM BURNS BODY FAT BURNS CALORIES PROVIDES HEALTHY ENERGY ° Sodkh | PROPRIETARY METAPLUS® BLEND HIGH FRUCTOSE CORI m™ VR ARTIFICIAL COLORS / FI WY LOW ee ASPARTAME , KOSHER S000 PRESERVATIVES
Slide 6: Proprietary MetaPlus formula and thermogenesis
CELSIUS’ ® 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 published in journals
CELSIUS. Live FIT CLINICAL STUDIES: PROVEN ‘PUBLISHED IN JOURNAL OF INTERNATIONAL, ‘PUBLISHED IN JOURNAL OF INTERNATIONAL ‘SOCIETY OF SPORTS NUTRITION ‘PUBLISHED IN JOURNAL OF INTERNATIONAL, ‘SOCIETY OF SPORTS NUTRITION ‘PUBLISHED IN JOURNAL OF INTERNATIONAL SSOCIETY OF SPORTS NUTRITION PUBLISHEDIN
Slide 8: Award winner
BEST 23 TIME AWARD WINNER FUNCTIONAL DRINK CELSIUS HEAT WINS INNOBEV, GLOBAL INNOVATION OF THE YEAR AWARD WINNER
Slide 9: Products
PRODUCTS POSITION = a PLACEMENT gEa0©@ PROMOTION
Slide 10: Pioneering fitness drink
PIONEERING POSITION: FITNESS DRINK —_ — CELSIUS* PIONEERS € NEW GROUND & CELSIUS CLINICALLY CELSIUS. PROVEN FUNCTION + HEALTHY ENERGY CELSIUS" is a proven Fitness Drink = CONVENTIONAL ENERGY THIER ENERGY Consumers are ready for ENERGY 2.0 (natural & heatthy) Masses are leaving artificial or ‘sugary
Slide 11: CELSIUS HEAT carbonated thermogenic
CELSIUS HEAT TM is a Carbonated, Proven To Perform, Thermogenic with METAPLUS ® . HEAT provides 100mg more caffeine than the original line, + 2,000mg L-Citruline.
Slide 12: CELSIUS product range
CELSIUS’ { f ( { ( f f f CELSIUS CELSIUS CELSIUS CELSIUS CELSIUS CELSIUS CELSIUS CELSIUS CELSIUS.
Slide 13: Engage consumers and build brands
Engage and inspire consumers to live an active healthy lifestyle and to partner with our brands for all facets of life! Build brands consumers love in emerging on-trend categories to drive growth and shareholder value.
Slide 14: On Amazon
ON AMAZON “AMAZON'S CHOICE” WHEN SEARCHING HEALTHY ENERGY (ORGANIC) amazon CELSIUS" was ahead of tionship with Amazor Our brand is on PR + Subscribe & Save. 1,875+ LIFETIME REVIEWS, 4.3 STAR RATING eo kak
Slide 15: Celsius brand performance versus category
CELSIUS BRAND CELSIUS SIGNIFICANTLY PERFORMANCE C SUTPAGING caTEGORY OUTPACING CATEGORY GROWTH 6.2x TOTAL SUB-CATEGORY $8.6 BILLION ( CRs bp RANKED TH 17 TOP LATEST 52 WEEKS ENDING 12.30.2018; SHELF STABLE BRAND FUNCTIONAL BEVERAGES; TPL; SPINSSCAN CONVENTIONAL WITHONLY 10.2ACVPOINTS MARKETS TOTAL U
Slide 16: Key customers and distribution channels
CELSIUS. 5 VITAMIN SPECIALTY, ‘AND DRUG ‘CONVENTIONAL SAFEWAY Ge) SAMPLING OF KEY CUSTOMERS DISTRIBUTION CHANNELS wrescicianner GROCERY MARIANOS. || BIIN-SHAPE ick sf cesses Xeponr 2 & BaRRY'S BOOTCAMP amazon Walmart. Be
Slide 17: Route to market
ROUTE TO MARKET SAMPLING OF KEY DISTRIBUTORS AND WHOLESALERS DrPepper Eby-Brown John Lenore & Co
Slide 18: Placement strategy by channel
beh ania -|,- PLACEMENT: TEE ENERGY, meer | FUNCTIONAL #BEE AASB EACH CHANNEL HAS A DEFINED PLACEMENT STRATEGY. THM ii °, Ccersius
Slide 19: Promotion
PROMOTION THE MAKING OF AN ICON cause
Slide 20: Promotion: events, influencers, demos, media
Tough Mudder 23 cities, 161,000 attendees. 93% of attendees are sampled +15MM social media impressions Influencer Program: National reach to extend over 55MM followers and over 100MM impressions in 2019! Demos: Estimating to sample 175,000 consumers in 2019 Media: Integrated targeted Digital and Soc
Slide 21: Consumer ads and fitness targets
MEET YOUR NEW TRAINING ===> CELSIUS CONSUMER ADS - FITNESS TARGETS ON TREND FOR HONING IN ON TARGET DEMO. PERFORMANCE ENERGY WITH KEY BRAND MESSAGING.
Slide 22: Global expansion
GLOBAL ' EXPANSION | : sys ea 6° an \» CELSIUS.
Slide 23: International partners: Sweden, Finland, Norway
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 2016 adds incremental growth Norway launch announced February of 2018 Additional international opportu
Slide 24: International partners: Hong Kong and China
PARTNERS WITH DEFINED TERRITORIES WHICH CURRENTLY PROVIDE MARKETING AND SALES SUPPORT WITHIN THEIR TERRITORY. Established: Hong Kong launched through A.S. Watson Water distributors in 2017 China market launched with nationwide distribution through partnership with Qifeng Food Technology (Beijing) Co
Slide 25: Strategy: objectives and growth roadmap
STRATEGY aK OBJECTIVES AND 20 GROWTH ROADMAP DISCIPLINED RESULT ORIENTATED . PURPOSE DRIVEN ie Ge IMPROVE MARGINS: mr h & DATAANALYTICS y OPERATIONAL FOCUS ie \\ Siti BUILDING ac BUILD BRAND EQUITY °. INCREASE PORTFOLIO BREATH CHANNEL EXPANSION ACV GAINS
Slide 26: Key take aways
KEY TAKE AWAYS ™ RESOUNDING CONSUMER DEMAND - TREND FORWARD ™ RAPIDLY GROWING REVENUES AND GROSS PROFITS ™ EXPANDED PRODUCT OFFERING = INNOVATIVE PORTFOLIO CAPITALIZING ON HEALTH & WELLNESS TRENDS ™ TRANSFORMING OPERATIONS FOR SCALE = DISCIPLINED DATA DRIVEN TEAM
Slide 27: Financials
CELSIUSE <8: iG FINANCIALS 8 8
Slide 28: Growth trends in revenue by year
GROWTH TRENDS IN REVENUE FULL COMPANY BY YEAR Net Revenue by Year 2015-2018 $52.6m 60 $36.2m 50 40 $22.7m $17.2m 30 In Millions 20 10 0 Total Company 2015 2016 2017 2018 - CAGR for 3 Years Total Company = >45%
Slide 29: Growth trends in revenue by region
GROWTH TRENDS IN REVENUE BY REGION Net Revenue by Year 2015-2018 60 50 40 In Millions 30 20 10 0 International Domestic 2015 2016 2017 2018 Full Company -Domestic CARG @ 64% -International CARG @ 18%
Slide 30: Revenue balance by region
REVENUE BALANCE BY REGION Net Revenue Year 2017 Net Revenue Year 2018 Intl 25% Domestic Intl 33% Domestic 67% 75% Intl Domestic Intl Domestic - Strong Growth in the US = > Capitalizing on Health & Wellness trends - Driving penetration in all major market segments
Slide 31: Growth trends in revenue by quarter
GROWTH TRENDS IN REVENUE BY QUARTER FULL COMPANY 18 Net Revenue by Quarter 2016-2018 16 16.565 14,680 14 12 12.059 10.785 10.236 10 9.140 9.298 8 6.171 6.657 6.252 6.000 6 3.678 4 2 0 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 - Despite some seaso
Slide 32: Gross profit normalization by year
GROSS PROFIT “NORMALIZATION” BY YEAR 51.8% 50.4% 50.0% 43.0% 40.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2017 2018 As Reported W/O Freight - Large competitors such as Monster exclude Out-Bound Freight as part of Cost of Sales - When “Normalized” on a comparable basis = > Celsius Margins are north of 50%
Slide 33: Balance sheet dashboard: working capital components
BALANCE SHEET DASHBOARD-Working Capital Components DSO = > 39 Days w/o International DOH = > 107 Days DSO (Daily Sales Outstanding) DOH (Days On Hand)Excludes E/O DPO (Days Payable Outstanding) Working Capital Turns ~4 - DSO=>Includes Bill Backs=>To be Netted against Accrual - DPO=>Affected by lower
Slide 34: Adjusted EBITDA computation
ADJUSTED EBITDA COMPUTATION For the twelve Months Ended Dec 31 Twelve months ended Dec 31, 2018 2017 Net income (loss) available to common (11,419,781) (8,606,578) stockholders (GAAP measure) Add back: Depreciation and amortization expense 51,205 20,425 Net interest expense 174,409 160,616 Preferred
Slide 35: Realize productivity, margin, innovation, mix, trade
REALIZE PRODUCTIVITY MARGIN INNOVATION PORTFOLIO MIX TRADE OPTIMIZATION
Slide 36: Horizon Ventures
Horizon Ventures: Former Founder and Celebrity & business investment arm of Chairman of ReXall mogul (several Mr. Li Ka-Shing. Asia’s Sundown Inc. which he companies), powerful wealthiest individual. built into the world’s brand builder & Assets include over leading nutritional influencer 15,000 hea
Slide 37: John Fieldly, President & CEO
JOHN FIELDLY PRESIDENT & CEO John Fieldly joined Celsius in 2012 and brings extensive consumer goods and financial/operational experience with a track record of driving strong financial performance. Results Driven Executive with over 20 years of broad financial and operational experience with extens
Slide 38: Board of directors
William H. Milmoe Kevin Harrington John Fieldly CO-CHAIRMAN DIRECTOR DIRECTOR Finance and accounting New product development Celsius CEO and prior CFO President CDS International Holdings Career includes roles with: Oragenics TV show “Shark Tank” alumni leader in novel antibiotics and proprietary La
Slide 39: Company and investor relations contacts
CELSIUS HOLDINGS, INC. C O M PA N Y C O N TA C T S I N V E S T O R R E L AT I O N S John Fieldly, CEO Cameron Donahue, Partner Celsius Holdings, Inc. Hayden IR 561.276. 223 9 651.653. 185 4 jfieldly@celsiu s. co m cameron @hay d enir. co m VISIT OUR NEW INVESTOR Edwin Negron, CFO WEBSITE: Celsius Ho
Slide 40: Income statement
INCOME STATEMENT- Consolidated Statements of Operations For the year ended December 31, 2018 2017 Revenue $ 52,603,986 $ 36,164,064 Cost of revenue 31,543,608 20,733,387 Gross profit 21,060,378 15,430,677 Selling and marketing expenses 1 21,213,530 16,611,369 General and administrative expenses 10,4
Slide 41: Balance sheet
BALANCE SHEET December 31, December 31, 2018 2017 ASSETS Current assets: Cash $ 7,743,181 $ 14,186,624 Accounts receivable, net 12,980,396 6,375,658 Inventories, net 11,482,701 5,305,505 Prepaid expenses and other current assets 2,299,375 1,180,444 Total current assets 34,505,653 27,048,231 Property
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