Management Presentation FEBRUARY 2017

Transcription

1 Management Presentation FEBRUARY 2017

2 Safe Harbor Statement This presentation contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management's current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ materially from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences are detailed in documents we file from time to time with the United States Securities and Exchange Commission. Forward-looking statements in this presentation are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of These statements include descriptions regarding the Company s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. These statements can be recognized by the use of words such as may, might, will, should, expects, plans, anticipates, believes, estimates, predicts, potential or continue, the negative of these terms and other comparable terminology. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, including those described under Risk Factors in the Company s Form 20-F, that may cause the Company s actual results, performance or achievements to differ materially from those set forth in the forwardlooking statements as a result of various. factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of SodaStream or of those other companies. 2

3 SodaStream Brand Reposition Your home soda factory Water made excited 3

4 Tectonic Shift in Consumer Preference USA Soda Consumption in US Sparkling Water Consumption in US % decline in 8 years +100% surge in 8 years SOURCE: Euromonitor International 4

5 The Opportunity Carbonated Soda $225 billion Opportunity Water $200 billion 5

6 SodaStream Mission SodaStream will revolutionize the global beverage industry by making sparkling water easily accessible, relevant and exciting to consumers around the world 6

7 Consumer Benefits: Water Convenience: No more lugging heavy bottles; saves space; no empties Health & Wellness: Proven to help drink more water and less sugar or sweeteners Environment: Dramatically reduce carbon footprint from plastic production and waste Cost Effective: Saves up to 70% for sparkling water 7

8 Consumer Benefits: Water Convenience: No more lugging heavy bottles; saves space; no empties Health & Wellness: Proven to help drink more water and less sugar or sweeteners Environment: Dramatically reduce carbon footprint from plastic production and waste Cost Effective: Saves up to 70% for sparkling water 8

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10 Consumer Benefits: Water Convenience: No more lugging heavy bottles; saves space; no empties Health & Wellness: Proven to help drink more water and less sugar or sweeteners Environment: Dramatically reduce carbon footprint from plastic production and waste Cost Effective: Saves up to 70% for sparkling water 10

11 Drink More Water 3 more glasses per person per day that s 43% more water! 11

12 Consumer Benefits: Water Convenience: No more lugging heavy bottles; saves space; no empties Health & Wellness: Proven to help drink more water and less sugar or sweeteners Environment: Dramatically reduce carbon footprint from plastic bottles Cost Effective: Saves up to 70% for sparkling water 12

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14 Consumer Benefits: Water Convenience: No more lugging heavy bottles; saves space; no empties Health & Wellness: Proven to help drink more water and less sugar or sweeteners Environment: Dramatically reduce carbon footprint from plastic production and waste Cost Effective: Saves up to 70% for sparkling water 14

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16 Company Highlights #1 sparkling water brand by volume Address growing consumer mega-trends World leader in home carbonation 24 million active users across 45 countries High margin recurring revenue stream Significant global market opportunity Enhanced operating platform fuels growth and cash flow 3 consecutive quarters of double-digit topline and triple-digit bottom line growth 16

17 Revenue Growth % $M % +17% +13% +17% Q1 Q2 Q3 Q4 17

18 Operating Income Growth % $M % +102% +243% +206% Q1 Q2 Q3 Q4 18

19 Operating Income $M +116% +102% +243% +206% $18.6 $18.8 $3.7 $4.5 $5.4 $6.2 $7.9 $9.2 Q Q Q Q Q Q Q Q Note: 2015 excluding restructuring 19

20 Products & Innovation Home Carbonation System Sparkling Water Makers CO 2 carbonator s Carbonating Bottles Flavours Variety of designs, features and price points Durable, easy to use 60 or 130 liters Consumers exchange empty for full carbonators 1 or 0.5 liter bottle Highly advanced materials technology Can replace 10,000 regular plastic bottles Full range of regular, diet, all-natural, mixers, energy No high-fructose corn syrup 20

21 Product & Innovation SPIRIT MIX ULTIMATE Entry level High-end design with low production cost Snap & Lock mechanism quiet operation High-end system to carbonate any liquid including alcohol and juice Touch screen interface IOT ready High-end single-serve drinks maker Provides hot, cold, still & carbonated drink with water treatment 21

22 Global Presence SodaStream products sold in 45 countries January-September 2016 revenue by region (% growth vs. Ly) +28% Asia Pacific 10% +23% CEMEA 5% +9% Americas 23% 62% +12% Western Europe 22

23 SodaStream World Retail Tour

24 SodaStream world retail tour 45 countries 80,000 + Retail Doors 24

25 Sweden 25

26 Denmark 26

27 Finland 27

28 Czech Rep. 28

29 Belgium 29

30 Italy 30

31 France 31

32 Australia 32

33 New Zealand 33

34 Japan 34

35 USA 35

36 USA 36

37 Canada 37

38 Demand Creation - Effective Brand Building Guerilla marketing PR Digital & Social media Activations Celebrity endorsements In-store demos 38

39 Digital Activations How do we make convenience SEXY?... Heavy Bubbles April 1, 2016 How do we make convenience S EXY?... Heavy Bubbles April 1,

40 Brand Ambassadors Andrea Verešová Thor Bjornsson Dr. Sarah McKay Charlotte Kate Fox Dr. Ellie Cannon Dr. Jean-Michel Cohen 40

41 Demos 41

42 German Case Study Effective Demand Creation: Market research to identify most compelling consumer benefit Develop marketing message around single consumer benefit Launch No Schlepping campaign across multiple advertising mediums Test and refine message Simplify Operations: 2 SKUs only Distribution: Strong emphasis on Retail Execution and POS 42

43 Germany Retail Germany 43

44 Germany Revenue Growth Jan-Sep Revenue ( M) % CAGR 81 Results Nearly triple household 41 penetration to 6% 31 Machine sales +298% Gas sales +86% Revenue includes Germany and Austria 44

45 Operations Lehavim - Progress in State of the Art Plant New Lehavim State-of-the-art Factory Live in 2015: Capacity: New factory provides more than double capacity Production consolidated from 7 to 2 factories Production shift from contract manufacturing to in-house Cost reduction through re-engineering Logistics consolidated from 12 to 1 warehouse in Israel Inventory down 16% (YOY Sep) GM improvement: +300 basis points 45

46 Gross Margin bp in Q vs % 52.4% 50.7% 50.7% 48.4% 48.0% Q Q Q Q Q Q

47 Lehavim Plant 47

48 Financial Highlights

49 Revenue ($m) $436 $563 $512 $ % $476 $

50 Operating Income ($m) +176% $54 $46 $49 $34 $29 $ excluding restructuring

51 Revenue & Operating Income in Constant Currency* ($M s) Revenue Operating Income Operating Margin 17.5% * In FY average exchange rates

52 Revenue by Region Western Europe ($m) +14% Americas ($m) +12% Asia-Pacific CEMEA ($m) +22% ($m) +16%

53 Operating Expenses Selling Expenses A&P Expenses ($m) -5% ($m) +18% As % of As % of Revenue 18.4% 18.0% 17.7% 19.7% 20.1% 16.8% Revenue 15.9% 17.0% 15.4% 15.0% 13.2% 13.6% G&A Expenses 2016 Forecast A&P Region ($m) % 44 CEMEA 4% Asia Pacific 9% Corporate 3% As % of Revenue % 8.7% 9.0% 9.7% 11.5% 9.1% 2015 excluding restructuring Americas 30% Total: $ 64.9M Western Europe 53%

54 Operating & Investments Cash Flow Operating Investments Free Cash Flow 82 ($m)

55 Thank You 55