celsius holdings, inc....3 our mission celsius holdings, inc. (nasdaq: celh), founded in april,...
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CELSIUS HOLDINGS, INC.SEPTEMBER 2017 INVESTOR
PRESENTATION
CELH
NASDAQ:CELH
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This presentat ion may contain statements that are not histor ical facts and are
considered forward- looking wi thin the meaning of the Private Secur i t ies Li t igat ion
Reform Act of 1995. These forward- looking statements contain project ions of
Celsius Holdings’ future resul ts of operat ions and/or f inancial posi t ion, or state
other forward- looking information. In some cases you can ident i fy these
statements by forward- looking words such as “ant icipate,” “bel ieve,” “could,”
“est imate,” “expect,” “ intend,” “may,” “should,” “wi l l , ” “would,” or simi lar words.You should not rely on forward- looking statements since Celsius Holdings’ actual
resul ts may di f fer mater ial ly from those indicated by forward- looking statements as
a resul t of a number of important factors. These factors include, but are not
l imi ted to: general economic and business condi t ions; our business strategy for
expanding our presence in our industry; ant icipated trends in our f inancial
condi t ion and resul ts of operat ion; the impact of competi t ion and technology
change; exist ing and future regulat ions affect ing our business; and other r isks and
uncertaint ies discussed in the reports Celsius Holdings has f i led previously wi th
the Secur i t ies and Exchange Commission. Celsius Holdings does not intend to and
undertakes no duty to update the information contained in this presentat ion.
SAFE HARBOR STATEMENT2017 INVESTOR PRESENTATION
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OUR MISSIONCelsius 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 abranded portfolio which is proprietary, clinically
proven or innovative in its category, and offerssignificant health benefits.
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UNIQUE BRAND ATTRIBUTES
• 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
BURNS BODY FAT
BURNS 100+ CALORIES
PROVIDES HEALTHY ENERGY
PROPRIETARY MetaPlus® BLEND
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CLINICAL STUDIES TO PROVE IT
PEER REVIEWED CLINICAL STUDIES VALIDATING CLAIMS
S tudy 1 . Oh io Research : Pub l i s hed In Journa l o f I n te rnat i ona l Soc i e t y o f Spor t s Nut r i t i on
S tudy 2 . Un i ve rs i t y o f Ok l ahoma: Pub l i s hed In Journa l o f I n te rnat i ona l Soc i e t y o f Spor t s Nut r i t i on
S tudy 3 . Un i ve rs i t y o f Ok l ahoma: Pub l i s hed In Jou rna l o f I n te rnat i ona l Soc i e t y o f Spor t s Nut r i t i on
S tudy 4 . Un i ve rs i t y o f Ok l ahoma: Pub l i s hed In Journa l o f I n te rnat i ona l Soc i e t y o f Spor t s Nut r i t i on
S tudy 5 . Un i ve rs i t y o f Ok l ahoma: Pub l i s hed In Jou rna l o f The Amer i can Co l l ege o f Nut r i t i on
S tudy 6 . Un i ve rs i t y o f Ok l ahoma: Pub l i s hed In The Journa l o f S t rength and Cond i t i on ing As soc ia t i on
S tudy 7 . M iami Research As soc i a tes
Studies reviewed and approved by the National Advertising Division (NAD) of the Advertising Self-Regulatory Council
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HOW DOES IT WORK?
CELSIUS’ proprietary MetaPlus® formula,including green tea with EGCG,ginger and guarana seed, turns onthermogenesis, a process that boostsyour body’s metabolic rate.†*
Drinking CELSIUS® prior to fitnessactivities is proven to energize, acceleratemetabolism, burn body fat and calories. †*
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CELSIUS FAMILY OF PRODUCTS
ORIGINALSRELAUNCHED JAN 2017
NATURALSLAUNCHED MARCH 2017
HEATLAUNCHED APR 2017
ALL CELSIUS PRODUCTS ARE PROVEN TO ACCELERATE METABOLISM & BURN BODY FAT
Current Originals Lineup:• 5 Sparkling SKUs• 2 Non-Carb SKUs
Current Packaging:• 12oz can• 12ct case• 4pks (6/cs)• Powders (14ct)
Current Naturals Lineup:• 3 Sparkling SKUs• 3 Non-Carb SKUs
Current Packaging:• 12oz can• 24ct case
Current HEAT Lineup:• 5 Sparkling SKUs
Current Packaging:• 16oz can• 12ct case
NEW NEW
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PIONEERING POSITION: FITNESS DRINK
Conventional Energy FunctionalHealthy Energy
CELSIUS pioneers new ground
Clinically proven function:
* which provides healthy energy
* Benefits enhanced with active lifestyles
CELSIUS is a proven Fitness Drink
Consumers are ready for ENERGY 2.0 (natural, healthy)
No Crash, No Jitters, Natural Ingredients + FUNCTIONAL Innovation
Masses are leaving artificial or sugary CSDs and other categories in droves
Sugary Energy Exit is next…CELSIUS is here
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CARBONATED PRE-WORKOUT: HEAT
16oz Conventional EnergyNo Functional Benefits
SupplementsNutritional Panels, Unproven
CELSIUS HEAT is a Carbonated Pre-Workout and a Proven Thermogenic.
Proven benefits added caffeineL-Citrulline
16oz of a Pre-Workout for the seriously dedicated.
Trainer’s Grade formula –Supplement Formula
Targeted, Focused & Proven
CELSIUS BRAND = Fastest growing brand in Fitness Channel NationallyNew CELSIUS HEAT, borrows equity from CELSIUS brand, as 16oz Trainer’s Grade version
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MARKETINGTO BUILD THE BRAND
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TIME AWARD WINNER18
INNOBEV, GLOBAL AWARD WINNER, APRIL 2017
BEST FUNCTIONAL DRINK
“Trailblazer Award”GROCERY HQ BEVERAGE
CATEGORY TRAILBLAZER –
CELSIUS INNOVATION IN THE
BEVERAGE CATEGORY
Innovation in Beverage
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2017 MARKETING OVERVIEW
“LIFER”FITNESS BAs
BLAKE KOCHNASCAR
FLO RIDAMARIO LOPEZ
DIGITAL / ADS
EVENTS AMBASSADORS
HOWIE MANDELAmerica’s Got Talent
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2017 BUSINESS STRATEGY
INTRO PRODUCT
LAUNCHES OR REBRAND
LAUNCH NEW ITEMS&
SEED PIPELINES
EXPAND AT RETAIL &
CONSUMERMARKETING PUSH
REPEAT (PD NEW ITEMS)
ORIGINALS & NEW NATURALS REBRANDEDON-THE-GO
Powders
NEWCELSIUS HEAT™
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CURRENT DOMESTIC RETAIL DISTRIBUTION
NATI ONAL
NO RT HE AS T
MI DWEST SOUTHEASTWESTERN SOUTHWEST
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DISTRIBUTION CHANNELSSAMPLING OF KEY CUSTOMERS IN EACH CHANNEL
NATURALCHANNEL-2017 CONVENIENCE CONVENTIONALGROCERY
FITNESS VITAMINSPECIALTY MILITARY E-COMMERCE
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Best seller “Healthy Energy”
Healthy Energy Search (Organic)
1,500+ reviews, 4.4 Star Rating
100% increase in Sales YOY
+76% powder sales YOY
Consumers’ orders show demand for
more retail placement and sales
TOP SELLER ON AMAZON
# 1
# 1
CELSIUS is in the top 3% of products viewed &
subsequently purchased
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(40.0)%
(30.0)%
(20.0)%
(10.0)%
0.0%
10.0%
20.0%
30.0%
40.0%
DOLLAR % GROWTH RANK CONVENTIONAL
CELSIUS +38% OUTPACING TOTAL FUNCTIONAL CATEGORY: +2%
Latest 24 Weeks Ending 5.21.17, SHELF STABLE FUNCTIONAL BEVERAGES; TPL; SPINSscan Conventional Markets: TOTAL US - MULO
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GLOBAL EXPANSION
NORDIC HONG KONGCHINA
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PARTNERS WITH DEFINED TERRITORIES WHICH CURRENTLY PROVIDE MARKETING AND SALES SUPPORT WITHIN THEIR TERRITORY.
Established:• Sweden- #2 selling energy drink in Sweden• Finland expansion launched in Q2 2016 adds incremental growth• Hong Kong launching through AS Watson Water distributors in Q3 2017• Entering China market with nationwide distribution through partnership
with Qifeng Food Technology (Beijing) Co. Ltd., a national wholesale distributor of foods and beverages launching in late 2017
Additional European and Asian international opportunities with identified distribution partners
GLOBAL DISTRIBUTION PARTNERS
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Strategy Objectives and Growth Roadmap
Phase 1: Retool Product(s)• Relaunched can
design• + Naturals• + Heat• New Powder pkgs• Asia-Staffed-
Product launches
Phase 2: Sales• ACV Gains• Channel
expansion• Build C
equity• Grow China• Develop new
products/rev items for ‘19
Phase 3: Expansion• Mass
geographic expansion
• Best practices deployment
• Continue to build brand equity
• Channel expansion
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CELSIUS FINANCIALS
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R E S O U N D I N G C O N S U M E R D E M A N D A F T E R 1 0 + Y R S I N B U S I N E S S
E x p a n d e d p r o d u c t o f f e r i n g w i t h N a t u r a l L i n e a n d H E A T l a u n c h e s
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
INVESTOR HIGHLIGHTS
I n t e r n a t i o n a l e x p a n s i o n c o n t i n u e s t o e x p a n d m a r k e t o p p o r t u n i t y
S T RAT E G I C I NV E S TO RS : L I KA- S HI NG , RUS S E L L S I M M O NS , K I M O RA L E E S I M M O NS , CARL DE S ANT I S
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02468
1012
Q4 '13
Q1 '14
Q2 '14
Q3 '14
Q4 '14
Q1 '15
Q2 '15
Q3 '15
Q4 '15
Q1 '16
Q2 '16
Q3 '16
Q4 '16
Q1 '17
Q2 '17
US Int. Total
$1.1 $1.4
$1.1 $1.3
$1.8 $1.8 $2.0
$1.5 $1.7 $1.5
$2.8 $2.9 $2.6
$2.4
$4.6
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
( $ i n m i l l i o n s )
R e v e n u e G r o s s P r o f i t
Q2 ‘17 Revenue of $10.2 million, up 66% compared to $6.2 million in the year ago quarter
• Domestic revenue increased 68% to a record $6.6 million, up from $4.0 million in the year ago quarter
• International revenue increased 62% to $3.6 million, up from $2.2 million in the year ago quarter
Q2 ‘17 Gross profit of $4.6 million
• Up 65% from the year ago period of $2.8 million
INCOME STATEMENT SUMMARY
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CelsiusHoldings,Inc.andSubsidiariesConsolidatedStatementsofOperations
Forthethreemonths
endedJune30, ForthesixmonthsendedJune30,
2017 2016 2017 2016 Revenue $10,236,898$ 6,171,791$16,237,327$ 9,850,397Costofrevenue 5,670,277 3,407,612 9,287,900 5,566,354Grossprofit 4,566,621 2,764,179 6,949,427 4,284,046 Sellingandmarketingexpenses 2,417,812 3,185,048 4,570,899 4,973,316Generalandadministrativeexpenses 1,639,558 979,722 3,702,521 1,855,000Totaloperatingexpenses 4,057,370 4,164,770 8,273,420 6,828,316 Income(Loss)fromoperations 509,251 (1,400,591) (1,323,993) (2,544,273) OtherIncome(Expense): Interestexpense (38,478) (56,875) (86,534) (113,750)TotalOtherIncome(Expense) (38,478) (56,875) (86,534) (113,750) NetIncome(Loss) 470,773 (1,457,466) (1,410,527) (2,658,023)Preferredstockdividend (91,248) (86,654) (181,493) (173,306)NetIncome(Loss)availabletocommonstockholders $ 379,525
$(1,544,120)$(1,592,020)$(2,831,329)
Income(Loss)pershare: Basic $ 0.01
$ (0.04)$ (0.04)$ (0.07)
Diluted $ 0.01$ (0.04)$ (0.04)$ (0.07)
Weightedaveragesharesoutstanding: Basic 44,650,052 38,542,256 43,234,159 38,461,318Diluted 56,877,616 38,542,256 43,234,159 38,461,318
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CelsiusHoldings,Inc.andSubsidiariesConsolidatedBalanceSheets
June30,2017(Unaudited)
December31,2016(1)
ASSETS Currentassets: Cash $ 19,997,743$ 11,747,138Accountsreceivable,net 4,853,958 2,787,732Inventories,net 3,257,461 2,211,370Prepaidexpensesandothercurrentassets 1,963,635 937,349Totalcurrentassets 30,072,797 17,683,589
Propertyandequipment,net 37,205 33,533
TotalAssets $ 30,110,002$ 17,717,122LIABILITIESANDSTOCKHOLDERS’EQUITY
Currentliabilities: Accountspayableandaccruedexpenses $ 3,228,939$ 1,754,207Accruedpreferreddividends 585,715 353,666Deferredrevenueandothercurrentliabilities 131,321 214,612Totalcurrentliabilities 3,945,975 2,322,485
Long-termliabilities: Lineofcreditnotepayable-relatedparty 3,500,000 4,500,000TotalLiabilities 7,445,975 6,822,485
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Business icon (industries & multiple companies), brand builder, extensive influence (celebrity network)
KEY INVESTORS
L I K A - S H I N G C A R L D e S A N T I S
Former Founder and Chairman of ReXall Sundown Inc. which he built into the world’s leading nutritional supplement supplier, sold for $1.8 billion in 2000
R U S S E L L S I M M O N S
K I M O R A L E E S I M M O N SCelebrity & business mogul (several companies), powerful brand builder & influencer
Horizon Ventures: invest arm of Mr. Li Ka-Shing. Asia’s wealthiest individual. Assets include over 15,000 health & beauty retail locations
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CELSIUS MANAGEMENTC E L H T E A M
JOHN FIELDLY - CFO & INTERIM CEO John Fieldly was named Chief Financial Officer of Celsius Holdings, Inc. in 2012 and is presently the company’s interimPresident and CEO. He brings nearly 20 years’ experience in business management and corporate financial leadershipto his role where he oversees the company’s finances, public reporting requirements and operations. His expertisestems from a strong background in financial leadership, public reporting requirements, operational process andprocurement improvement strategies to maximize resources to drive revenue and operational efficiencies. Prior tojoining Celsius Holdings he was Corporate Controller of Oragenics, Inc. a publicly traded nutraceutical company were hewas responsibly for all financial functions and implemented procurement strategies to maximize operations. Prior to thatMr. Fieldly held leadership positions at Lebhar-Friedman-the B2B leading media and marketing company serving theretail industry, foodservice, and healthcare over the last 90 years and prior to that he served various leadership roles atEckerd Corporation. Mr. Fieldly is a Certified Public Accountant in Florida.
VANESSA WALKER - EXECUTIVE VP OF SALES AND MARKETINGMs. Walker has served as EVP Sales & Marketing since January 2016. With over 23 years in beverage and retail, shewas former EVP Sales & Marketing, LaCroix Sparkling Water, National Beverage, (‘08-’16). She revitalized the MWregional brand, building the marketing and sales infrastructure, strategy and plans. LaCroix became the fastest growingsparkling in the US ($35m in ‘08 to +$195m ’15, Nielsen), outpacing Nestle owned Perrier & San Pellegrino in allchannels 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 upManhattan Beverage Co., NY, NY. Ms. Walker also at start up IN ZONE Brands Inc., VP National Accounts, as thenBellyWashers & TummyTicker brands, grew from $1m to over $90m (’01-’04). She began her career after college withTarget Stores, serving as Regional Buyer (‘97-01) foods/beverages, and store executive (’94-’97).
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InsuranceBankingPublicofficial
A BREADTH OF INDUSTRY, FINANCIAL, & EXECUTIVE MANAGEMENT EXPERTISE
ChristopherLaiCO-CHAIRMAN
NickCastaldoDIRECTOR
ThomasE.LynchDIRECTOR
Financeandaccounting
PresidentCDSInternationalHoldings
Financialcareerincludesroleswith:PriceWaterhouse,GeneralCinemaCorp,Pepsi,independentbottler
Newproductdevelopment
TVshow“SharkTank”alumniLaunchedover500products“AsseenonTV”infomercialpioneer
HorizonsVenturesAsianmarketexpertIBprofessional,M&A
WilliamH.MilmoeCO-CHAIRMAN
KevinHarringtonDIRECTOR
Consumerservicesbusiness
Chainrestaurant,bankingandretailingFormerDenny’sVPMarketing
HalKravitzDIRECTOR
CEOofAQUAhydrateFormerOfficerofCoca-Cola
BOARD OF DIRECTORS
JohnFieldlyDIRECTOR
CorporateFinance
CelsiusCFO,InterimCEO
Careerincludesroleswith:OragenicsleaderinnovelantibioticsandproprietaryOTCprobiotics,Lebhar-FriedmanleaderinB2Bpublishing,EckerdCorporation
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I N V E S T O R R E L AT I O N S
Cameron Donahue, Par tner
Hayden IR
651.653.1854
cameron@hayden i r . com
VISIT OUR NEW INVESTORE WEBSITE:
WWW.CELSIUSHOLDINGSINC.COM
C O M PA N Y C O N TA C T
John F ie ld l y , CFO & In te r im CEO
Cels ius Ho ld ings , Inc .
561.276.2239
j f i e ld l y@cels ius .com
CELSIUS HOLDINGS, INC.