Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Investor Presentation (December 2012)
60 slides from Monster Beverage's investor presentation, Dec 11, 2012
Slide 1: [LOGO]
[LOGO]
Slide 2: Safe Harbor Statement
Safe Harbor Statement Investor Presentation Safe Harbor Statement Rider Certain oral and written statements in this presentation and in response to questions may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995,
Slide 3: Monster Energy Products Are Safe
Monster Energy Products Are Safe Tens of billions of energy drinks have been sold and safely consumed worldwide for approximately 25 years including more than 8 billion cans of Monster Energy that have been sold and safely consumed in the U.S. and around the world since 2002. The FDA has stated that
Slide 4: After a Tiring Journey
AFTER A TIRING JOURNEY Zhe SATISFACTORY BEVERAGE It satisfies the thirst; pleases the palate. Relieves fatigue quickly and naturally. Puts vim and go into tired brain and bodies. Delicious — cooling —refreshing. Sold everywhere 5 cents
Slide 5: Makes a Guy Snappy, Hoppy, and Keen
Makes a Guy Snappy, Hoppy, and Keen Lots of folks live from rical co meal with never a ice between, but without a del - Pepper is mighty fine for strength and endurance. . . and ‘mighty healthful t0 boot. » AT 10-284 O'CLOCK
Slide 6: [LOGO]
[LOGO]
Slide 7: Got the wearies?
(iot the wearies? Brighten up with this quiek. fresh lift!
Slide 8: Any powerful drug, such as caffeine... (1912 Good Housekeeping cartoon)
Any powerful drug, such as caffeine is acknowledged to be, should not be offered indiscriminately to the public in other than its natural condition, and certainly not without the knowledge of the consumer In this 1912 Good Housekeeping cartoon, Harvey Wiley warns a gullible public against the gremli
Slide 9: Solid Financial Results
Solid Financial Results 20 consecutive years of increased sales since acquisition of the Hansen beverage business in 1992. Achieved $1.95 billion in gross sales in 2011. Net sales for the third quarter of 2012 increased to $541.9 million, up 14.2% from the same quarter last year. Net income for the
Slide 10: Convenience Store RTD Beverage Category Performance
Source: Nielsen Convenience Retailer YTD Month Ending 09/29/12 Convenience Store RTD Beverage Category Performance 2012 Total Beverage Market in Convenience
Slide 11: Convenience Store RTD Beverage Category Performance 2012
Convenience Store RTD Beverage Category Performance 2012 Energy is outpacing the beverage category in both percentage increase and total incremental dollars, YTD 9/2/12 Source: Nielsen Convenience Retailer YTD Month Ending 09/29/12 Total Beverage Market $ % Chg 9.2% $ Vol Chg (Millions) $1,567.1
Slide 12: Energy Drink Category Overview
Energy Drink Category Overview The Energy Category continues to grow in all channels over the last 13 wks: All Outlets Combined including Walmart: Value change: +12.5%; Unit change: 13.5%1 Convenience and Gas Channel: Value change: +12.9%; Unit change: 12.5%1 Premium brands continue to dominate the
Slide 13: Energy Drink Category
Energy Drink Category Monster is leading growth in the Energy Category, up +19.1% vs Total NA Energy +12.5%. Monster has gained 1.7 share points, leading the growth of all key competitors. AOC Conv Food Drug Mass incl WM $ Vol $ Vol Year Ago $ % ? vs Year Ago $ ? vs Year Ago $ Share $ Share ? vs Yea
Slide 14: 2012 Channel Trends
2012 Channel Trends Source: 1AC Nielsen Total US Convenience – 13 Weeks Ending 11/17/12 Monster continues to outpace Energy Category growth across all channels. Per Nielsen, Monster sales are up +19.6% for the 13 weeks ending November 17, 2012, versus Category growth of +12.9%, in the Convenience an
Slide 15: Energy Drink Category Share Trends
Source: AC Nielsen Total US Convenience – 4 Weeks Ending 11/17/12 Energy Drink Category Share Trends The Monster Energy brand continues to widen the share gap with Red Bull, expanding the gap 5.5 share points in the latest 4 week Nielsen period.
Slide 16: Energy Drink Category Share Trends
Energy Drink Category Share Trends Source: AC Nielsen Total US Convenience – 4 Weeks Ending 11/17/12
Slide 17: Monster Drives Energy Category Growth
Monster Drives Energy Category Growth Sources: 1AC Nielsen Total US Convenience – YTD Ending 11/17/12 Monster continues to drive Energy Category growth in the Convenience and Gas channel. The Monster brand contributed over $366 million to the growth in the Energy Category year to date.1 While total
Slide 18: 2012 Key Accomplishments
2012 Key Accomplishments Monster Energy’s latest 13 week performance is outpacing the Energy Category growth in units by a wide margin. Category Monster All Outlets Combined including Walmart1 +13.5% +20.4% Convenience and Gas Channel1 +12.5% +19.3% Source: 1AC Nielsen Total US– 13 Weeks Ending 11/1
Slide 19: Monster 2012 Champions
Monster 2012 Champions Heath Frisby First Snow Mobile Front Flip Taka Higashino X Games Free Style MX Gold Ryan Villopoto 2011 & ‘12 Supercross World Champion Josh Hayes 2010, 2011 & 2012 Pro Superbike Champion Stephane Peterhansel Dakar Rally Champion Nyjah Huston Street League of Skate Board Champ
Slide 20: New Initiatives
New Initiatives Kyle & Kurt Bush Nationwide NASCAR Team Kyle Bush Sprint Cup NASCAR Damon Bradshaw Monster Jam Robson Palmero PBR World Finals Champion
Slide 21: New Products
New Products Q1 2012 Q3 2012 Q3 2012 1H 2013 1H 2013
Slide 22: New Products Q1 2013
New Products Q1 2013 Monster Mini’s 8oz.
Slide 23: New Products 1H 2013
New Products Tee Fen + pRoTEIN + PSE fr PROTEIN + PRE 15.5 oz. 1H 2013
Slide 24: Global Expansion
Yo re Global Expansion
Slide 25: 2012: EMEA Value Share Gain
2012: EMEA Value Share Gain Source: Aggregated Nielsen value sales for Great Britain, Ireland, Belgium, France, Netherlands, Norway, Sweden, Denmark, Germany, Poland, Italy, Switzerland, Austria, Greece, Hungary, Czech Republic, Bulgaria, Slovakia, Baltics, South Africa to end September 2012 Monster
Slide 26: 2012: Outpacing the competition
Monster now accounts for 25% of Red Bull value sales in our markets, with an average age in market at less than 3 years 2012: Outpacing the competition Monster widens its lead as the #1 challenger brand to Red Bull in Europe + South Africa Source: Aggregated Nielsen value sales for Great Britain, Ir
Slide 27: 2012: Driving Category Growth
Monster represents €62m of the 12% YTD growth of the Energy Category in our markets 2012: Driving Category Growth Monster represents 27% of the Energy Drink Market Growth in our European + South African markets Source: Aggregated Nielsen value sales for Great Britain, Ireland, Belgium, France, Nethe
Slide 28: Selected Market: Great Britain
Great Britain's energy category: +9% YTD. Monster’s value growth: +46% YTD. Monster’s market share is 10.6% in the latest 4 weeks*. Effective Monster TDM program. Selected Market Great Britain Source: Nielsen scantrack data to 6th October 2012* Tesco Nielsen reads grocery and convenience (excluding
Slide 29: Selected Market: France
Selected Market France France’s energy category: +11% YTD. Monster’s value growth: +18% YTD. Monster is the #2 energy brand in France, with 16.2% market share in the latest 4 weeks*. Source: Nielsen value sales to 7th October 2012* Nielsen reads grocery in France Independent Store, Paris
Slide 30: Selected Market: Spain
Selected Market Spain Spain’s energy category: +11% YTD. Monster’s value growth: +105% YTD. Monster’s market share is 12.9% in the latest 4 weeks*. Red Bull declined 3% year on year and lost 5.3% market share, despite launching their three “Red Bull Editions” The Monster TDM program in Spain is deli
Slide 31: Selected Market: Germany
Selected Market Germany Germany’s energy category: +22% YTD. Monster’s value growth: +114% YTD. Monster’s market share is 8.4% in the latest 4 weeks*. Monster Energy launched 5 new SKUs in Germany: every new SKU has generated incremental volume. Monster is the #2 Energy Drink brand in Germany, overt
Slide 32: Selected Market: Greece
Selected Market Greece Greece’s energy category: +7% YTD. Monster’s market share is 28.1% in the latest 4 weeks*. In just two years, Monster has achieved the position of the #2 Energy drink in Greece at 55% the size of Red Bull. Source: Nielsen value sales to end Sept. 2012* Carrefour Carrefour Niel
Slide 33: Selected Market: South Africa
Selected Market South Africa South Africa’s energy category: +34% YTD. Monster’s value growth: +124% YTD. Monster’s market share is 17.1% in the latest 4 weeks*. Monster is taking share in South Africa, Red Bull lost 4% market share and Play (Coca-Cola) lost 1% market share. Source: Nielsen value sa
Slide 34: European Motor Sports
European Motor Sports Nico Rosberg & Micheal Schumacher Formula 1 Title Sponsor MotoGP Le Mans Valentino Rossi Moto GP Legend Liam Doran British Rally Cross Buttsy Butler Drift Team X Raid Dakar Rally Champions MX1 Motocross Chris Holder Speedway Champion Ken Block Gymkahana Grid
Slide 35: European Action Sports
European Action Sports Marc Lacomare Surf Harry Main BMX Brendan Fairclough Down Hill Mountain Bike Kjersti Buaas Snowboard Sam Beckett Vert Skate Nassim Guammaz Street Skate Nick Davies Wake Board Sam Pilgrim Free Style Mountain Bike Kevin Rolland Ski
Slide 36: Sampling Teams – Western Europe
Sampling Teams – Western Europe Madrid Barcelona Stuttgart Belgium London Paris Athens Netherlands Portugal
Slide 37: Sampling Teams – Eastern Europe
Sampling Teams – Eastern Europe Czech Republic Hungary Slovakia
Slide 38: Mexico
Mexico Mexico’s Energy drink category is up +14.9% YTD. 2 Monster Energy is outpacing the category with +25.2% YTD growth. 2 The Monster Energy Brand is #1 in value share, reaching 37.7%1 in the most recent month September 2012 In the Modern Trade Channel, which includes Convenience stores, Monster’
Slide 39: Mexico Sponsorships
Mexico Sponsorships Hugo Oliveras NASCAR Monster Army Skate Jam World Rally Motocross
Slide 40: Mexico Sponsorships
Mexico Sponsorships Music X Pilots Freestyle Show DJ Endorsements
Slide 41: Sampling Teams – Latin America
Sampling Teams – Latin America Puerto Rico Los Cabos Colombia Guadalajara Monterey Brazil
Slide 42: Japan
Japan Monster Energy launched in Japan in May 2012. Strong retail execution from Asahi achieved 90% distribution on Monster Green and Khaos in the Convenience Channel. Obtained retail authorization for the four largest convenience chains; 7-Eleven, Lawson, Family Mart and Circle K. Monster is the #2
Slide 43: Japan Sponsorships
Japan Sponsorships Akira Narita #1 Motocross Rider Night Life – DJ Endorsements Kazahiro Kukubu Japanese Olympic Team Member Noriyuki Haga Moto GP Taka Higashino X Games Free Style Champion Ozzy Skate
Slide 44: Japan Sponsorships
Japan Sponsorships Air Jam Action Sports and Music Festival Sampling 50,000 Fans Athlete Signings Monster Energy Skate Park
Slide 45: Sampling Teams - Japan
Sampling Teams - Japan Tokyo
Slide 46: Social Media
Social Media 20 million Facebook fans Monster’s Facebook fans over-index in brand interaction versus other beverage brands. Monster has 9.45% of Facebook beverage fans, but 12.75% of the chatter. Monster Energy’s Facebook effort was grown organically. Company % Engagement % Social Market Share % Sha
Slide 47: Monster's International Footprint
Monster’s International Footprint
Slide 48: Peace Tea Single Serve Line Up
Peace Tea Single Serve Line Up: *New SKU’s Snoberry, Peach, Tamarind Tea, expected to launch early 2013 The RTD Tea Category is +18.5% vs year ago in Total US Convenience. Peace Tea is #8 RTD Tea Brand in Total US Convenience, up 31.2% vs year ago. Peace Tea’s value share is 2.8%, +0.3% points vs ye
Slide 49: New Peace Tea Products
New Peace Tea Products Multi-Serve Line Up: 12pk/ 8oz Fridge Pack 64oz Growler Q1 2013 Fridge Pack will be available in the four most popular flavors
Slide 50: Warehouse Division Highlights
Warehouse Division Highlights New Sales Management Team Hubert’s became fastest growing lemonade brand in the Grocery & C-Store Channels and has potential to achieve meaningful success in addressing DSD opportunity1 Hubert’s Lemonade program with Hubert’s 4 packs at Wal-Mart in 2012 is expected to l
Slide 51: Warehouse Division Product Line Expansion 2012
Warehouse Division Product Line Expansion 2012 Hansen’s 7.5oz “Smart Size” Soda package Hansen’s Natural Coconut Waters aseptic boxes Continued expansion of Hubert’s brand Hubert’s Cherry Limeade & Blackberry Lemonade Hubert’s 16oz Glass Half&Half Lemonade Teas Hubert’s 4-Packs 12oz CSD
Slide 52: Warehouse Division 2013 New Products
Warehouse Division 2013 New Products Hansen’s Natural Orange & Grape Soda Flavors Traditional flavors requested by major customers Hansen’s Natural Sparkling Fruits Sparkling Water Refreshment with Great Fruit Taste 10 Calories Sweetened With Real Fruit Juice, Stevia & Monk Fruit Extracts 12oz Sleek
Slide 53: Monster Beverage Corporation Net Sales
Monster Beverage Corporation Net Sales ($ in millions) 40.8% CAGR to December 2011 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 9/30/12 9Months 2012 $110.4 $180.3 $348.9 $605.8 $904.5 $1,033.8 $1,143.3 $1,303.9 $1,703.2 $1,589.2
Slide 54: Reported Operating Income
Monster Beverage Corporation Reported Operating Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 9/30/12 9Months 2012 $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $436.7
Slide 55: Adjusted Operating Income
Monster Beverage Corporation Adjusted Operating Income (“OI”) ($ in millions) 66.4% CAGR to December 2010 61.7% CAGR to December 2011 9Months 2012 Reported OI $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $436.7 *Adjustments - 16.5 25.0 117.9 - 2.8 - 1.8 1.1 .6 Adjusted OI $9.8 $33.9 $
Slide 56: Reported Net Income
Monster Beverage Corporation Reported Net Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 9/30/12 9Months 2012 $5.9 $20.4 $62.8 $97.9 $149.4 $108.0 $208.70 $212.0 $286.2 $272.0
Slide 57: Reported Diluted Earnings Per Share
Monster Beverage Corporation Reported Diluted Earnings Per Share As adjusted for February 16, 2012 2:1 Stock Split 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 9/30/12 9Months 2012 $0.04 $0.11 $0.33 $0.50 $0.76 $0.56 $1.10 $1.14 $1.53 $1.47
Slide 58: Balance Sheet Highlights
Monster Beverage Corporation Balance Sheet Highlights ($ in thousands) September 30, 2012 December 31, 2011 Percentage Change Cash and cash equivalents $ 283,054 $ 359,331 -21% Investments: Short-term investments $ 307,654 $ 411,282 -25% Long-term investments $ 19,882 $ 23,194 -14% Total Investments
Slide 59: 3rd Quarter Results
Monster Beverage Corporation 3rd Quarter Results (in millions except per share data) 3Q11 3Q12 $82.4 $86.1 Net Income 4.6% 3Q11 3Q12 $474.7 $541.9 Net Sales 14.2% 3Q11 3Q12 $132.1 $140.7 Operating Income 6.5%
Slide 60: 2012 Share Repurchases
Shares Purchased Avg. Price (excluding broker's commission) Gross Amount (excluding broker's commission) Activity to 06/30/12 - - - Activity to 09/30/12 6,854,543 $57.99 $397,494,594.44 Activity since 09/30/2012 6,071,535 $50.77 $308,221,727.81 12,926,078 $54.60 $705,716,322.25 2012 Share Repurchase
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