sodastream oasis presentation

7/28/2019 SodaStream Oasis Presentation

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Its a Beverage Company!


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DRAFT PRIVATE & CONFIDENTIAL

DisclaimerThis presentation is for educational purposes only. Nothing in this document or any information herein should be

construed as an offer, invitation, marketing of services or products, advertisement, inducement, or representation of

any kind, nor as investment advice or a recommendation to buy or sell any investment products or to make anytype of investment, or as an opinion on the merits or otherwise of any particular investment or investment strategy.

Any examples of strategies or trade ideas are intended for illustrative purposes only and are not indicative of the

historical or future strategy or performance or the chances of success of any particular strategy. This presentation

and any statements made in connection with the presentation are the presenters opinions, which have been based

upon publicly available facts, information, and analysis, and are not statements of fact.


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Outline At heart SODA is a beverage company

USD 1Bn revenue target is easily achievable Major beverage company tie up is highly likely and could propel the

stock by more than 300%

Management should be focused on getting a major tie up via SodaCaps

ASAP


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Everything You Need to Control Your Soda Experience

Soda Makers

The CO2 The Flavors


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Youre buying a soda, just deconstructed

+ =


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Investor Update on May 13: Two big takeaways Revenues to hit 1Bn USD in 2016! (2012= 436mm)

US adoption increasing Canister volumes accelerating

In 4Q12, grew 89%

In 1Q13 grew 101%! What does this mean? More users with greater frequency and higher

canister turnover, higher gross margins

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Despite the move, its STILL UNDERVALUED!

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What does 1Bn in sales really mean? US household penetration on only 5%

25% Revenue CAGR (this is slower than they have averaged) At LEAST 170mm USD in Net Income


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The $100 Price Target We think this is fully achievable

Puts the company on roughly 10x 2016 P/E, not expensive Short interest at 38% of the float


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How do they get there?!

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How to get to 1Bn?Greater penetration of canister distribution points

400 Kroger stores in2Q, potentially

nationwide by year end

CVS by 2014

Makes senseto buy your

soda whereyou buy your

soda!


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How to get to $1BnGreater brand recognition

Super Bowl Ad Went Viral

4.9mmviews!


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How to get to $1Bn

Entering refrigerator marketRestaurant edition


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Restaurant AdoptionChef-led innovation


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Riding Two Global Themes Customization

Environmentally friendly consumption


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CustomizationAt first I was just putting in half apple juice and half water, said Sara

Williams, a mother of three in Boulder, Colo., who owns two SodaStream

machines: one for water and one for everything else. Then I started

throwing in cherry juice, and grape, and we went a little nuts.

-NY Times


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Plastic Bottles Target of Consumer Awareness and Green Initiatives


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Enviro-Friendly Around the World

Germany

Israel

Yankee Stadium

US University Campuses


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The Plastic Bottle as a Political Issue


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The Game Changer Syrup direct to consumer

Preserves brand equity Allows major beverage companies to access the platform

Higher margins for all


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Soda CapsWhat is a Soda Cap?

Allows portion control

Cap is added to the bottle and mixingproportions are controlledConsistent taste every time

Control over taste is EXTREMELY important tothe beverage companies. Coca Cola controls thesyrup to water ratio at every soda fountain. Even

at McDonalds.


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Soda Brands Care About Brand Perceptionas our industry faces new opportunities and social challenges, we

continued to strengthen our strategies, plans and commitments to a

sustainable environment and promoting active healthy lifestyles within each

of the local communities in which we operate.

-Coca Cola Annual Report


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Coca-Coal Responds


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We Expect Social Pressure to Push Coca Cola on to the SodaStream Platform


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Why It Makes Sense For Coke Currently Coca-Cola Bottlers make a 40 %

Gross Margin

Why is Coke Leaving so much money on the

table?


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Distribution Costs!BOTTLERS SPEND MOST OF THEIR

GROSS PROFIT MOVING SODA FROM

POINT A TO POINT B!

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When this: Makes this:

You need less of these:And less of this:

Its Really This Simple


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Economics of a Major Tie Up Tie-Ups to drive SodaMaker sales

Increased consumption of branded drinks to drive accelerated canister

consumption

As sales mix tilts towards canisters, significant margin expansion

Could increase KO EBITDA margin by 3-4% - a Win-Win!


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Match Made in HeavenWe believe the question is not if but when will you see a machine like

this available


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Tie up example: SBUX and GMCRStarbucks tied up with the Keurig in March 2011

Since then, SBUX has sold 850mm K-Cups

GMCR revenue increased more than 250% over the following 24 months

Rev in $MMs


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Revenue ForecastsAt 5% of the US home soda market, and flat penetration in Europe,

revenues could reach $2Bn in 2016, which is double company forecasts


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Margin ImprovementA shift to greater canister usage can drive net margins in excess of 20%

Net Income potential in 2016 with a major beverage company tie up?

20% * $2Bn = $400mm


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Valuation What do you call a company that sells you everything you need to make

a beverage?

A beverage company!

Where are 2016 P/Es for beverage companies?


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Tie Up Valuation 2016 P/EsBev Companies

Coca-Cola 15x

Pepsi 15x

Dr Pepper 11x

Monster 16x

Average 14.25x


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2016 Potential Price Target2016 Net Income: 400mm

2016 P/E: 14.25x

2016 Market Cap: $5.7Bn

2016 Share price: $283

Upside: 340%


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The Message to Management


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sodastream oasis presentation

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