Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Hansen Natural — Investor Presentation (August 2005)
40 slides from Monster Beverage's investor presentation, Aug 2, 2005
Slide 1: August 2005
August 2005
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 and list
Slide 3: Introduction
Introduction ‘agust 2008 Page?
Slide 4: Introduction, cont'd.
Introduction, cont'd. + 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, includin
Slide 5: Introduction, cont'd. Gross Annual Sales
Introduction, cont'd. Gross Annual Sales (millions) se00 x00 so Since 1998, Hansen’s has enjoyed an smo T-- annual growth rate of 25.4% through 10.0 2004. sai soot, mo sos 1am 20m 20m moe ame 20 In 2005, Hansen’s has continued its upward growth trend. A comparison of Quarter 1 2005 to Quarter 1 2004
Slide 6: Financial Performance
Financial Performance + Hansen's continues to enjoy excellent operating performance, with continuing growth + The Company's operating results are summarized below’ ame) 2003) aoa) [a1 2004 ot ams Gress Sales (Milne) $1185 § 1986 § 270 8 7 § 737 Net Sales oe 1a a8 Ha 600 Cost of Sales sey ee wa 207 G
Slide 7: Product Line Overview
Product Line Overview A Brief Snapshot of the Major Product Portfolios Nat Warehouse + Exclusive contracts for apple and blended juice 64 oz. for CA WIC Program (started July 04). Additional blended juice launched in 2005. ‘agust 2008 Page?
Slide 8: Product Line Overview
Product Line Overview A Brief Snapshot of the Major Product Portfolios 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 va natural ‘agust 2008 Page ®
Slide 9: Hansen's Natural Soda
Hansen’s Natural Soda ‘agust 2008 Fayed
Slide 10: Blue Sky Brand
Blue Sky Brand ROOT BEER ‘agust 2008 age 10
Slide 11: Hansen's Natural Soda Portfolio Hanger
Hansen’s Natural Soda Portfolio Hanger Natifal 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 ‘agust 2008 Page Tt
Slide 12: Hansen's Natural Soda Portfolio Hanger
Hansen’s Natural Soda Portfolio Hanger Natifal >» 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,
Slide 13: Hansen's 100% Juice & Juice Blends
Hansen's 100% Juice & Juice Blends ‘agust 2008 Page 18
Slide 14: Hansen's Smoothies
Hansen's Smoothies ‘agust 2008 Page 14
Slide 15: Hansen's Tetra Pack Juice Drinks
Hansen’s Tetra Pack Juice Drinks tangent Nai ‘agust 2008 Page 16
Slide 16: Rumba Energy Juice
Rumba Energy Juice Nat AURINE ‘agust 2008 Page 16
Slide 17: Hansen's Juice Portfolio Hanger
Hansen's Juice Portfolio Hanger Natifal Juice Product Attributes » Great tasting/premium positioning > Enhanced with vitamins and/or calcium > First shelf-stable smoothies in the U.S. ‘agust 2008 Page
Slide 18: Hansen's Juice Portfolio Hanger
Hansen's Juice Portfolio Hanger Natifal >» 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 contrac
Slide 19: Energy Drinks
Energy Drinks ‘Nat Haye | /
Slide 20: Monster Energy Drinks
Monster Energy Drinks ‘agust 2008 age 20
Slide 21: Energy Drinks
Energy Drinks ‘agust 2008 Paget
Slide 22: Hansen's Energade
Hansen’s Energade Nat Fopesiou
Slide 23: Controlled Label Energy Drinks
Controlled Label Energy Drinks Haniens) Tag 208 ae
Slide 24: Hansen's Energy Portfolio Hanger
Hansen’s Energy Portfolio Hanger Natital 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 ‘agust 2008 Page 24
Slide 25: Hansen's Energy Portfolio Hanger
Hansen’s Energy Portfolio Hanger Natital > Energy market is the fastest growing segment of U.S. beverage industry > $1 billion at wholesale in 2004. Projected 2005 growth between 30%-35%. 1 2005, 2 sales-convenience suggest growth 60%+ (per Nielsen) 2 > Monster is one of the fastest growing major en
Slide 26: 16oz Category Leaders-Convenience
160z Category Leaders-Convenience Monster 22% Full Throttle 13% Source: AC Midsen 12 Ws Ending 6/1805 Teal US. Convenience Trade Majer Markel ‘agust 2008 Fage26
Slide 27: Energy drink market share
Source: AC Midsen 12 Ws Ending 6/1808 Teal US. Convenience Trade Majer Market Red Bull Monster 14.1% 5.7 Rockstar 8.9% 0.0 No Fear 7.4% 1.2 Full Throttle 5.5% 5.5 Adrenaline Rush 5.3% 15) Amp 4.6% | (1.7) ... Lost 1.1% 03 KMX 05% | (09) Other 9.0% | (2.5) Total ‘August 2008 Page?
Slide 28: Focus on Monster Energy Hanger
Focus on Monster Energy Hanger tial Fastest Growing Energy Brand in the U.S. + 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
Slide 29: Pro Circuit/Kawasaki Racing
PRO CIRCUIT/KAWASAKI RACING + MXISX is the pinnacle of Action Sports. + Pro Circuit Racing is a well respected “perennial winner” with 14 championships in 16 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 ‘agust 2008 Page so
Slide 31: Billabong XXL Big Wave Awards
BILLABONG XXL BIG WAVE AWARDS Se 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 Award + Monster Tu
Slide 32: Vans Warped Tour
MUN STER' Van’s Warped Tour an 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. iy ‘agust 2008 Page 2
Slide 33: Las Vegas Monster-Rail
LAS VEGAS MONSTER-RAIL Hanes + Las Vegas is the "most visited city" in the world, approximately 40-million people visit Las Vegas évery year + The monorail connects the "Las Vegas Strip" to the Las Vegas Convention Center and will connect to the Fremont Street Expétience and McCarran International A
Slide 34: Channel Mix Summary
Channel Mix Summary + Hansen's beverages can be found in all major channel types: 2004 Channel Mix Channel Mix Three Months Ended March 31, 2005 Export} Mise | Eoport Mise J Food Service etal j Specialty / Pe Wholesale 2% Food Service Retail Specialty / Wholesale 2% Health Food Health food in % Full
Slide 35: Product Mix Summary
Product Mix Summary Hanger Natital + Hansen's has continued to diversify its product lines: 2004 Product Mix Product Mix Three Months Ended March 31, 2005 Warehouse 2% Warehouse a6 ‘agust 2008 Page 36
Slide 36: Warehouse Geographic Mix Summary
Warehouse Geographic Mix Summary Hanger Natital 2004 Geographic Mix Geographic Mix Three Months Ended March 31, 2005 ‘West on Southeast Central 1% o% Northeast % Calfomia in Calitomia 75% ‘agust 2008 Pages
Slide 37: DSD Geographic Mix Summary
DSD Geographic Mix Summary Hanger Natifal 2004 Geographic Mix Geographic Mix Three Months Ended March 31, 2005 west southeast southeast 11% Northeaa’ oh California 25% Caliternia 28 ‘agust 2008 Page?
Slide 38: Distribution Strategy and Logistics
Distribution Strategy and Logistics Hansen's Products Reach Customers Nationwide aNeny Customers + The table to the right demanstrates the diversity of Hansen's custamer base. Value Chain / Logistics + Hansen's contracts with a number of co-packers far manufacture. Channel Selected Customers Grocery
Slide 39: Growth Strategy Hanger
Growth Strategy Hanger tial Four-Pronged Approach + Grow existing brands + Develop and launch new products / brands including Rumba Energy Juice Joker Mad Energy Monster 23.5 0z and 802. cans Monster new product = 2005 Lost - 2 new products = 2005 Others + Expand distribution + Increase quality and
Slide 40: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ GRA PHIC] August 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. Ac