CELSIUS HOLDINGS, INC - CELH NASDAQ:CELH
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CELSIUS HOLDINGS, INC.
2018 Investor Presentation
CELH
NASDAQ:CELH
1
SAFE HARBOR STATEMENT
2018 INVESTOR PRESENTATION
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 financial position, or state
other forward-looking information. In some cases you can identify these
statements by forward-looking words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “may,” “should,” “will,” “would,” or similar words.
You should not rely on forward-looking statements since Celsius Holdings’ actual
results may differ materially from those indicated by forward-looking statements as
a result of a number of important factors. These factors include, but are not
limited to: general economic and business conditions; our business strategy for
expanding our presence in our industry; anticipated trends in our financial
condition and results of operation; the impact of competition and technology
change; existing and future regulations affecting our business; and other risks and
uncertainties discussed in the reports Celsius Holdings has filed previously with
the Securities and Exchange Commission. Celsius Holdings does not intend to and
undertakes no duty to update the information contained in this presentation.
2
OUR 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 offers
significant health benefits.
3
BRAND BASICS
4
THERMOGENIC
ACCELERATES METABOLISM
BURNS BODY FAT
BURNS CALORIES
PROVIDES HEALTHY ENERGY
PROPRIETARY MetaPlus® BLEND
DISRUPTIVE
CLINICALLY PROVEN
W H AT I S I T ?
NEGATIVE CALORIE
U N I Q U E AT T R I B U T E S
5
NO SUGAR
NO HIGH FRUCTOSE CORN SYRUP
NO ASPARTAME
NO PRESERVATIVES
NO ARTIFICIAL COLORS
NO ARTIFICIAL FLAVORS
VERY LOW SODIUM
VITAMIN-INFUSED
GLUTEN-FREE
VEGAN
NON-GMO
KOSHER
T R E N D F O RWA R D
POSITIONING
6
HOW DOES IT WORK?
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. †*
7
CLINICAL STUDIES: PROVEN
Studies reviewed and approved by the National Advertising Division (NAD)
of the Advertising Self-Regulatory Council
PEER REVIEWED CLINICAL STUDIES VALIDATING CLAIMS
Study 1. Ohio Research: Published In Journal of
International Society of Sports Nutrition
Study 5. University of Oklahoma: Published In Journal
of The American College of Nutrition
Study 2. University of Oklahoma: Published In
Journal of International Society of Sports
Nutrition Study 6. University of Oklahoma: Published In
Study 3. University of Oklahoma: Published The Journal of Strength and Conditioning
In Journal of International Society of Sports Association
Nutrition
Study 7. Miami Research Associates
Study 4. University of Oklahoma: Published In
Journal of International Society of Sports
Nutrition
8
BEST FUNCTIONAL DRINK
WINNER OF
THE YEAR
2017
BEVERAGE
INDUSTRY
INNOVATION
OF THE YEAR
AWARD!
INNOBEV,
GLOBAL AWARD
WINNER, APRIL
2017
21TIME AWARD WINNER 9
RESULTS
10CELSIUS IS THE LEADER IN THE HEALTHY ENERGY & FUNCTIONAL SPACE CELSIUS IS THE #1 FITNESS DRINK BRAND IN AMERICA, PIONEERING THIS NEW, TREND FORWARD SUB-SEGMENT Latest 52 Weeks Ending 12.31.2017; SHELF STABLE FUNCTIONAL BEVERAGES; SPINSscan Conventional Markets; TOTAL US - MULO 11
TOTAL US, CELSIUS COMPETITIVE SET
MULO CHANNEL (DEFINED AS: SS ENERGY & FUNCTIONAL)
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
(10.0)%
(20.0)%
(30.0)%
PETEY’S RCKSTR
NEURO HI BALL XYENCE CELSIUS RUNA ASPIRE VISO SAMBZN
BING ORGNC
CONTRIBUTION
(11.5)% 0.8% 6.9% (0.7%) 4.0% (1.4%) 1.2% (0.7)% (0.3)% (1.0)%
TO GROWTH
ACV 60.6 17.5 16.2 13.3 12.0 14.6 5.5 2.7 1.1 2.9
CELSIUS GROWTH RATE: 46.7%
AVERAGE GROWTH RATE: 7.0%
Latest 52 Weeks Ending 12.31.2017; SS ENERGY & OTHER FUNCTIONAL BEVERAGES; TPL; SPINSscan Conventional Markets; Total US - MULO 12TOP SELLER ON
AMAZON
#1 “AMAZON’S CHOICE” when searcing
Healthy Energy (Organic)
1,826+ lifetime reviews, 4.3 Star Rating
+56% increase in case sales YOY
+63% powder sales YOY
CELSIUS was ahead of
the curve with its
relationship with Amazon.
Our brand is on PRIME +
Subscribe & Save.
13PRODUCTS
POSITION
PLACEMENT
PROMOTION
14BUSINESS STRATEGY
EXPAND AT RETAIL
LAUNCH NEW ITEMS REPEAT
INTRO &
& (INNOVATE NEW
PRODUCT LAUNCHES CONSUMER
SEED PIPELINES ITEMS)
MARKETING PUSH
ORIGINALS CELSIUS HEAT™
NATURALS ON-THE-GO Powders
15PIONEERING POSITION: FITNESS DRINK
CELSIUS pioneers new ground Consumers are ready for ENERGY 2.0
(natural & healthy)
CLINICALLY PROVEN FUNCTION
+ Masses are leaving artificial or sugary
CSDs and other categories in droves
HEALTHY ENERGY
Sugary Energy Exit is NOW…
CELSIUS is a proven Fitness Drink
CELSIUS is here
Conventional Energy Healthier Energy Functional
16CELSIUS HEAT POSITION: TRAINER’S GRADE
CELSIUS HEAT is a Carbonated Pre-Workout and a Proven Thermogenic with METAPLUS.
HEAT has: 100mg more caffeine than the original line, + 2,000mg L-citruline,
Multi-Platinum recording artist FLO RIDA is the a brand ambassador kicking off the
new PROVEN campaign, a nod to both his work & CELSIUS HEAT’s clinical status.
17PLACEMENT BY CHANNEL OF TRADE
S AM P L I N G O F K E Y C U S TO M E R S I N E AC H C H AN N E L
NATURAL CHANNEL - CONVENTIONAL
CONVENIENCE
2017 GROCERY
VITAMIN
FITNESS MILITARY E-COMMERCE
SPECIALTY
18PLACEMENT: 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.
19PROMOTION
THE
MAKING OF
AN ICON
20INCREASING BRAND AWARENESS
PARTCIPATED AS AN OFFICIAL SPONSOR
OVER 250,000 “TOUGH MUDDER LEGIONEERS” PARTICIPATING + SPECTATORS
10 EVENTS
MULTIPLE CITIES ACROSS THE US
SAMPLING TO THE CORE CONSUMERS DURING A CRITICAL USAGE OPPORTUNITY
21CONSUMER ADS – FITNESS TARGETS
ON TREND FOR HONING IN ON TARGET
FITNESS DEMO WITH KEY
LIFESTYLERS BRAND MESSAGING
22GLOBAL
EXPANSION
NORDIC CHINA HONG KONGGLOBAL DISTRIBUTION PARTNERS
PARTNERS WITH DEFINED TERRITORIES WHICH CURRENTLY PROVIDE
MARKETING AND SALES SUPPORT WITHIN THEIR TERRITORY.
Established:
Sweden- #1 selling FITNESS drink in Sweden, #2 ENERGY
• Finland expansion launched in Q2 2016 adds incremental growth
• Norway launch announced February of 2018
• NEW 2nd product line: CELSIUS BCAAs, debuts MARCH 2018
Hong Kong launched through AS Watson Water distributors in Q3 2017
China market launched with nationwide distribution through partnership
with Qifeng Food Technology (Beijing) Co. Ltd., a national wholesale
distributor of foods and beverages.
• Full quarterly sales commenced Q4 ‘17
• China production facility opened to support Asian market
• Asian staff of CELH (4) employees office out of Hong Kong
24GEOGRAPHICAL ACCESS
18 Provinces
80+ Cities
Celsius® already
available in 35 cities
25CONNECTING WITH CONSUMERS
Mix of new and traditional media along with grass root events are used
to connect consumers to the brand. Distributions across mainstream
retailers, ecommerce and special channels to ensure product availability
26CELSIUS FINANCIALS
27INVESTOR HIGHLIGHTS
RESOUNDING CONSUMER DEMAND AFTER 10+ YRS IN
BUSINESS
R A P I D LY G R O W I N G R E V E N U E S A N D G R O S S P R O F I T S
Expanded product offering
International expansion continues
to expand market opportunity
28INCOME STATEMENT SUMMARY
( $ i n m i l l i o n s )
Revenue Gross Profit
$12.00 $4.6 $4.7
$10.00
$8.00
$2.9
$2.8
$2.6
US $2.4
$6.00
Int. $2.0
$1.8 $1.8
$4.00 $1.7
Total $1.4 $1.5 $1.5
$1.3
$1.1 $1.1
$2.00
$0.00
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17
Q3 ‘17 Revenue of $10.8 million, up 62% compared to Q3 ‘17 Gross profit of $4.7 million
$6.7 million in the year ago quarter
• Up 62% from the year ago period of $2.9
• Domestic revenue increased 54% to $5.9 million, up million
from $3.8 million in the year ago quarter
• International revenue increased 73% to a record $4.9
million, up from $2.8 million in the year ago quarterCelsius Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
For the three months For the nine months
ended September 30, ended September 30,
2017 2016 2017 2016
Revenue $ 10,785,796 $ 6,657,700 $ 27,023,123 $ 16,508,097
Cost of revenue 6,110,898 3,772,948 15,398,798 9,339,302
Gross profit 4,674,898 2,884,752 11,624,325 7,168,795
Selling and marketing expenses 4,702,308 1,736,029 9,273,207 6,709,345
General and administrative expenses 1,559,173 1,081,273 5,261,694 2,936,273
Total operating expenses 6,261,481 2,817,302 14,534,901 9,645,618
Income (Loss) from operations (1,586,583 ) 67,450 (2,910,576 ) (2,476,823 )
Other Income (Expense):
Interest expense (35,661 ) (57,500 ) (122,195 ) (171,250 )
Total Other Income (Expense) (35,661 ) (57,500 ) (122,195 ) (171,250 )
Net Income (Loss) (1,622,244 ) 9,950 (3,032,771 ) (2,648,073 )
Preferred stock dividend (92,250 ) (102,958 ) (273,743 ) (276,264 )
Net income (Loss) available to common stockholders $ (1,714,494 ) $ (93,008 ) $ (3,306,514 ) $ (2,924,337 )
Income (Loss) per share:
Basic $ (0.04 ) $ (0.00 ) $ (0.08 ) $ (0.08 )
Diluted $ (0.04 ) $ (0.00 ) $ (0.08 ) $ (0.08 )
Weighted average shares outstanding:
Basic 45,487,908 38,666,451 43,990,367 38,530,195
Diluted 45,487,908 38,666,451 43,990,367 38,530,195
30KEY INVESTORS
LI KA-SHING CARL DeSANTIS KIMORA LEE SIMMONS
Horizon Ventures: Celebrity & business mogul (several
Former Founder and Chairman
investment arm of Mr. Li companies), powerful brand builder &
of ReXall Sundown Inc. which
Ka-Shing. Asia’s influencer
he built into the world’s leading
wealthiest individual.
nutritional supplement supplier,
Assets include over
sold for $1.8 billion in 2000
15,000 health & beauty
retail locations
31CELSIUS MANAGEMENT
PEOPLE = DIFFERENCE MAKERS
JOHN FIELDLY - CFO & INTERIM CEO
John Fieldly was named Chief Financial Officer of Celsius Holdings, Inc. in 2012 and is presently the company’s interim
President and CEO. He brings nearly 20 years’ experience in business management and corporate financial leadership
to his role where he oversees the company’s finances, public reporting requirements and operations. His expertise
stems from a strong background in financial leadership, public reporting requirements, operational process and
procurement improvement strategies to maximize resources to drive revenue and operational efficiencies. Prior to
joining Celsius Holdings he was Corporate Controller of Oragenics, Inc. a publicly traded nutraceutical company were he
was responsibly for all financial functions and implemented procurement strategies to maximize operations. Prior to that
Mr. Fieldly held leadership positions at Lebhar-Friedman-the B2B leading media and marketing company serving the
retail industry, foodservice, and healthcare over the last 90 years and prior to that he served various leadership roles at
Eckerd Corporation. Mr. Fieldly is a Certified Public Accountant in Florida.
VANESSA WALKER - EXECUTIVE VP OF MARKETING & INNOVATION
Ms. Walker has served as EVP Sales & Marketing since January 2016. With over 24 years in beverage and retail, she
was former EVP Sales & Marketing, LaCroix Sparkling Water, National Beverage, (‘08-’16). She revitalized the MW
regional brand, building the marketing and sales infrastructure, strategy and plans. LaCroix became the fastest growing
sparkling in the US ($35m in ‘08 to +$195m ’15, Nielsen), outpacing Nestle owned Perrier & San Pellegrino in all
channels of trade. Previous to 2008, Ms. Walker served as Director of Marketing for Big Red of Texas, (2006-2007),
before their sale, relaunching Red JAK energy through DPSU. Prior, she was SVP Sales / Marketing, at start up
Manhattan Beverage Co., NY, NY. Ms. Walker was also a part of start up IN ZONE Brands Inc., VP National Accounts,
as then BellyWashers & TummyTicker brands, grew from $1m to over $90m (’01-’04). She began her career after
college with Target Stores, serving as Regional Buyer (‘97-01) foods/beverages, and store executive (’94-’97).
Jon McKillop – Senior Vice President of Sales – North America
Jon McKillop has been recently promoted to Senior Vice President of Sales for North America, joining the CELH Executive
team. Previously McKillop served as Vice President of Sales for the company’s non-traditional channels of trade, to include
Fitness, Military, Vend, Travel and Food Service. McKillop’s career has spanned over 15 years in beverage and consumer
packaged goods in both traditional and non-traditional channels of trade. Prior to his arrival at Celsius on May 3, 2016, McKillop
served in a variety of management roles at Glanbia Performance Nutrition, a leading company in the branded sports nutrition
space, most recently as National Director of Sales for the organizations American Body Building brand. Before that, McKillop
held management posts at large corporations Pepsi Americas, Core-Mark International and Keurig. He holds an undergraduate
degree in Marketing from Southern Oregon University.
32MANAGEMENT BENCH STRENGTH
33BOARD OF DIRECTORS
A BREADTH OF INDUSTRY, FINANCIAL, & EXECUTIVE MANAGEMENT EXPERTISE
William H. Milmoe Kevin Harrington John Fieldly
CO-CHAIRMAN DIRECTOR DIRECTOR
Finance and accounting New product development Corporate Finance
President CDS International Celsius CFO, Interim CEO
TV show “Shark Tank” alumni
Holdings
Launched over 500 products Career includes roles with:
Financial career includes roles “As seen on TV” infomercial Oragenics leader in novel
with: Price Waterhouse, pioneer antibiotics and proprietary OTC
General Cinema Corp, Pepsi, probiotics, Lebhar-Friedman
independent bottler leader in B2B publishing,
Eckerd Corporation
Christopher Lai Nick Castaldo Thomas E. Lynch Hal Kravitz
CO-CHAIRMAN DIRECTOR DIRECTOR DIRECTOR
Horizons Ventures Consumer services business Insurance CEO of AQUA hydrate
Asian market expert Chain restaurant, banking Banking Former Officer of Coca-Cola
IB professional, M&A and retailing Public official
Former Denny’s VP
Marketing
34CELSIUS HOLDINGS, INC.
C O M PA N Y C O N TA C T
John Fieldly, CFO & Interim CEO
Celsius Holdings, Inc.
561.276.2239
jfieldly@celsius.com
I N V E S T O R R E L AT I O N S
Cameron Donahue, Partner
H a yd e n I R
651.653.1854
c a m e r o n @ h a yd e n i r . c o m
VISIT OUR NEW INVESTOR W EBSITE:
CELSIUSHoldingsINC.COM
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