Management Presentation SEP 2017
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 1995. 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
Company Highlights World leader in home carbonation Leading new category in giant carbonated beverage industry Address growing consumer mega-trends 11.5 million active households across 45 countries High margin recurring revenue stream Significant global market opportunity 6 consecutive quarters of double-digit topline growth while tripling operating profit margin 3
SodaStream Mission SodaStream will revolutionize the global beverage industry by making sparkling water easily accessible, relevant and exciting to consumers around the world 4
Products & Innovation Home Carbonation System Sparkling Water Makers CO 2 carbonator s Carbonating Bottles Flavors 5
Category Definition 2006 2007 Home Carbonation System Sparkling Beverage
2014-2015 Decline SodaStream Revenue 2007 2015 $ Million 562.7 511.0 436.3 416.0 289.0 208.4 101.0 118.0 136.2 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tectonic Shift in Consumer Preference USA Soda Consumption in US 2006-2019 Sparkling Water Consumption in US 2006-2019 -20% decline in 8 years +100% surge in 8 years SOURCE: Euromonitor International 8
The Opportunity Carbonated Soda $225 billion Opportunity Water $200 billion 9
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Organization Marketing Product & Innovation Distribution Operations Growth Plan, October 2014 1 2 3 4 5
Heavy Bubbles 12
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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 Cost Effective: Saves up to 70% for sparkling water Environment: Dramatically reduce carbon footprint from plastic production and waste 17
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Product & Innovation SPIRIT MIX ULTIMATE 19
NEW ELECTRIC SPARKLING WATER MAKER
ICY BLUE RRP: $79.99 Availability: August
Product & Innovation NATURAL FLAVORED ESSENCE
Product & Innovation HERB AND FRUIT INFUSIONS
SodaStream World Tour
Global Presence SodaStream products sold in 45 countries 2016 revenue by region (% growth vs. Ly) +28% Asia Pacific 10% +23% CEMEA 5% +9% Americas 23% 62% +12% Western Europe 27
SodaStream world retail tour 45 countries 80,000 + Retail Doors 28
Sweden 29
Finland 30
Czech Rep. 31
Belgium 32
Italy 33
Germany 34
Germany Retail Germany 35
Germany 36
Germany Retail Germany 37
France 38
Australia 39
Singapore 40
New Zealand 41
Japan 42
USA 43
USA 44
Canada 45
Financial Highlights
Revenue 2015 2017 YoY ($m) +10% +17% +13% +17% +14% +10% 131.8 130.6 110.0 112.9 119.2 124.2 115.3 101.7 100.9 91.3 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Operating Income 2015 2017 20.0 18.0 16.0 14.0 YoY Profit Margin: ($m) +116% +102% +243% +206% +100% +84% 4-5% 7-8% 13-15% 18.6 18.8 16.8 15.9 12.0 10.0 8.0 6.0 4.0 2.0 3.7 4.5 5.4 6.2 7.9 9.2 - Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 2015 excluding restructuring
SODA 2016 Share Price
Gross Margin 2015 2017 +510 bp 52.3% 51.8% 52.4% 52.7% 53.1% 50.3% 50.7% 50.7% 48.4% 48.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 2015 excluding restructuring
Sparkling Water Makers (units M's) 1,542 1,196 1,111 1,018 935 940 941 776 770 764 785 859 818 788 769 683 604 575 518 637 491 639 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017
Gas Refills (units M's) 8.3 5.8 6.0 6.8 7.6 5.5 6.5 7.5 7.7 6.9 7.0 6.4 6.3 5.8 5.4 6.7 7.4 4.8 4.2 4.3 4.3 3.7 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017
Germany Revenue Growth 2012 2016 Revenue ( M) 1 137 26% CAGR 109 Results 2012-2016 More than tripled 55 60 80 machine sales More than doubled gas sales and household penetration to 7% 2012 2013 2014 2015 2016 1 Including Germany and Austria 53
Customer Acquisition Cost* 29.0 27.4 28.5 1200 1100 24.0 19.0 24.4 859 1000 900 800 700 14.0 637 600 9.0 491 500 400 4.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Customer Acquisition Cost Sparkling Water Maker * Consumer Acquisition Cost is A&P / no. of sparkling water makers sold in the quarter: measures the effectiveness of the advertising spend 300
Selling Expenses / Revenue 21.8% 21.3% 18.4% 19.3% 19.0% 16.7% 15.9% 15.9% 16.0% 15.2% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
G&A Expenses / Revenue 12.7% 11.3% 10.7% 11.5% 10.5% 11.2% 8.7% 8.5% 8.7% 9.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Operating & Investments Cash Flow 2011-2017 ($M) ($m) 22.8 30.0 26.1 31.5 29.3 11.6 14.0 14.8 14.4 13.2 11.5 10.1 13.0 8.5 9.1 13.7 16.1 11.6 12.5 10.8 3.9 4.6 4.6 2.2 1.7 0.1 1.2 1.5-0.8 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017-11.5 Operating Investments Free Cash Flow
Business Growth Drivers SodaStream s Four Revenue Pillars Soda Makers Gas Refills Flavors (Syrup) Carbonating Bottles A&P Annual Expense User Acquisition Cost Household penetration Soda Maker Sales (New Users) Attrition Prior Year User Installed Base Attrition Current Active User Installed Base Key Drivers Gas Refill Per Year Per User Current Active User Install Base Total Gas Refill Units 1 Flavor / Gas Refill Consumption Ratio (%) 2 Total Flavor Unit Sales Bottles / Flavors Consumption Ratio Total Bottles Unit Sales Key Driver Key Driver Key Driver Note: Other revenue items including SodaStream Professional (out of home business) are less material and assumed as low growth in the model. ¹ Includes new users. Assume 6 months lag in sale of Refills to new user. Does not include spare cylinder purchases. ² Flavor bottle produce 10 litres of soda; Gas Refill produce 50 litres of carbonated water.
Consumables Generate Sustainable, LT Value Sparkling Water Makers Consumables $56 $392 Value (10 years) + + = $448 Exchangeable CO 2 cylinders Carbonation bottles Flavors Attractive business model driven by recurring purchases of high-margin consumables Note: Based on estimated 10-year value from loyal consumer;
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