Safe Harbor Statement
This material contains certain “forward-looking” statements. These
statements are based on management’s current expectations and are
naturally subject to uncertainty and changes in circumstances. Actual
results may vary materially from the expectations contained herein and
listeners are cautioned not to place undue reliance on any forward-
looking comments. For a review of specific risk factors, please refer to
our statements filed at the Securities and Exchange Commission.
Hansen Natural Corporation undertakes no obligation to update or alter
its forward-looking statements, whether as a result of new information,
future events or otherwise.
Introduction
Introduction, cont’d.
Hansen’s is a 70 year old trusted brand that stands for high quality,
“better for you” natural beverages.
Hansen’s formulates and markets unique premium beverages at the
forefront of consumer trends.
Hansen’s enjoys leadership positions across several categories,
including the natural soda and energy categories.
In 2005, Hansen’s has continued its upward growth trend.
The business grew 85.4% from $224.1 million in 2004 to $415.4 million in
2005 in gross sales (net of discounts and returns).
Net income grew 207.9% from $20.4 million in 2004 to $62.8 million in 2005
Introduction, cont’d.
Since 2001, Hansen’s has enjoyed an
annual growth rate of 43.6%
compounded through 2005.
Gross Annual Sales (millions)
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2001
2002
2003
2004
2005
Financial Performance
Hansen’s continues to enjoy excellent operating performance, with continuing growth.
The Company’s operating results are summarized below:
*Gross sales, although used internally by management as an indicator of operating performance, should not be considered as an alternative to net sales, which is
determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales
(Millions, except per share data)
2002
2003
2004
2005
Gross Sales*,
net of
discounts/returns
112.9
$
135.7
$
224.1
$
415.4
$
Net Sales
92.0
110.4
180.3
348.9
Cost of Sales
58.8
66.6
96.9
166.3
Gross Profit
33.2
43.8
83.5
182.5
Operating Income
5.3
$
9.8
$
33.9
$
103.4
$
Net Income after Taxes
3.0
$
5.9
$
20.4
$
62.8
$
Diluted Net Income Per
Common Share, as adjusted for
2:1 stock split in August 2005
0.15
$
0.28
$
0.86
$
2.59
$
Sales Growth (Net)
15.4%
20.0%
63.3%
93.5%
Gross Margin (of Net Sales)
36.1%
39.7%
46.3%
52.3%
Cases
(Millions, 192 oz. equiv.)
17.6
20.4
29.8
48.2
Years Ending December 31,
Product Line Overview
A Brief Snapshot of the Major Product Portfolios
Warehouse
Exclusive contracts for apple
and blended juice 64 oz. for
CA WIC Program (started
July ‘04). Additional blended
juice launched in 2005.
Product Line Overview
A Brief Snapshot of the Major Product Portfolios
DSD
Includes Monster, Lost, Hansen’s
Energy and Energade
Represents 74% of total 2005 gross
sales
Packaged in 8 oz., 16 oz., and 23.5
oz. size cans
Hansen’s Natural Soda
Blue Sky Brand
Hansen’s Natural Soda Portfolio
Hansen’s is the leading natural soda in the U.S.
Blue Sky is the leading natural soda in the health food category
All natural, no preservatives, caffeine free, and in the case of
Hansen’s, sodium free, no artificial colors or flavors
Predominantly Western distribution at mainstream grocery, club,
health food, and specialty. Eastern distribution presently limited to
health food, health food sections of grocery chains, and specialty.
Brand has unlimited potential due to its premium natural positioning
to secure large share of the otherwise flat CSD market through
national expansion.
Hansen’s 100% Juice & Juice Blends
Hansen’s Smoothies
Hansen’s Multi-Vitamin Juices for Children
Hansen’s Juice Portfolio
First shelf-stable smoothies in the U.S.
Enhanced with vitamins and/or calcium
Hansen’s 64 oz. apple juice is the #1 shelf-stable bottled juice in
Southern and Northern California.* Hansen’s 64 oz. apple grape
juice is the #4 and #7 shelf-stable bottled juice in Southern and
Northern California, respectively.* While apple strawberry juice is
now #6 in Southern California and #25 in Northern California.
Apple and blended juice WIC contracts provide expansive
distribution in California and promotional opportunities, particularly to
Hispanic demographics
Substantial opportunities for distribution expansion
*Source: Information Resources Inc., Northern and Southern California, $2 million+ Food [chain grocery] category, 12 week dollar sales period ending October 2, 2005
Energy Drinks
Monster Energy Drinks
Energy Drinks
Hansen’s Energade
Controlled Label Energy Drinks
Rumba Energy Juice
Hansen’s Energy Portfolio
Energy Product Attributes
Great tasting
16 oz. value size
Efficacious formulations, taste profiles, and image are
important contributors to success
Products cover broad energy demographics
Hansen’s Energy Portfolio
Energy drink market is the fastest growing segment of U.S. beverage industry.
$1.6 billion at wholesale in 2005. 1 In 2005, category of growth in excess of 50% over
2004 (per Nielsen).2
Monster is one of the fastest growing major energy drinks in U.S. (per Nielsen).2
Monster has highest sales per point in convenience channel in most major U.S.
markets, excluding Red Bull (per Nielsen).2
We believe that convenience channel represents 50%+ of total energy drink market.
Lost is a key brand appealing to teenage / college consumer.
Energade has broad demographic appeal due to unique energy/ sports drink
combination.
1 Source: Beverage Marketing Corporation
2 Source: AC Nielsen 12 Wks Ending 12/31/05 Total US - Convenience Trade Major Market
41%
19%
16%
13%
Source: AC Nielsen Total US - Convenience Track Major Market 13 Weeks Ending 12/31/05
16oz Category Leaders-Convenience
Hansen’s: #1 Player Overall!
Source: AC Nielsen Total US - Convenience Track Major Market 13 Weeks Ending 12/31/05
$ Share
Share
Change
Red Bull
37.3%
(10.0)
Monster
19.1%
+8.4
Rockstar
9.7%
+0.4
No Fear
6.5%
(0.8)
Full Throttle
5.6%
+5.4
A Rush
4.0%
(2.2)
Amp
4.0%
(1.7)
Lost
1.1%
(0.1)
Von Dutch
0.5%
+0.5
All Other
12.2%
+0.2
Total
100%
Market Share - Energy Drinks
Focus on Monster Energy
Proven products with potential for even greater sales
velocity and distribution through effective distribution
system. Significant convenience chain distribution
gains.
Monster Khaos recently launched.
Separate brand facilitates aggressive, extreme
marketing to youth-culture demographic without
compromising integrity of Hansen’s brand. Examples
include Pro-Circuit sponsorship, Monster team
athletes, and Vans Warped Tour. Visit
www.monsterenergy.com.
Exclusive energy beverage vending rights on Las
Vegas Monorail
Fastest Growing Energy Brand in the U.S.
PRO CIRCUIT/KAWASAKI RACING
MX/SX is the pinnacle of Action Sports.
Pro Circuit Racing is a well respected “perennial winner” with 14
championships in 15 years.
Nearly one million spectators attended the 2005 MX/SX racing season.
TV coverage - approximately 5 million plus viewers.
Monster Energy Pro Presented by Billabong
North Shore, Oahu, Hawaii
World Famous Bonsai Pipeline
ASP 4-star event, $60,000 prize purse
Billabong Hosted Web Cast
MONSTER ENERGY PRO 2006
BILLABONG XXL BIG WAVE AWARDS
The Billabong XXL Award is won by the
surfer who, by any means available,
catches and successfully rides the single
biggest wave of the year based on
analysis of the available images.
Billabong Biggest Wave Award
Monster Biggest Paddle Wave Award
Monster Tube of the Year Award
Most popular, longest running Action Sports/Music Festival in the United States.
MONSTER has been a sponsor for 3 years.
49 concert dates throughout U.S. and Canada.
MONSTER is the “Official Energy Drink” of the Vans Warped Tour 2006.
Van’s Warped Tour
LAS VEGAS MONSTER-RAIL
Las Vegas is the “most visited city” in the world, approximately 40-million people visit Las
Vegas every year.
The monorail connects the “Las Vegas Strip” to the Las Vegas Convention Center and will
connect to the Fremont Street Experience and McCarran International Airport in due course.
The Monster Train is the first corporate-sponsored train of the Las Vegas Monorail.
Monster Energy Drink and Hansen’s Natural Soda exclusive vending rights at all monorail
stations.
Channel Mix Summary
Hansen’s beverages can be found in all major channel types:
Channel Mix Three Months Ended
December 31, 2004
Channel Mix Three Months Ended
December 31, 2005
Percentages of Gross Sales by Market Channel
Product Mix Summary
Hansen’s has continued to diversify its product lines:
Product Mix Three Months Ended
December 31, 2004
Product Mix Three Months Ended
December 31, 2005
Percentages of Gross Sales by Product Category
Geographic Mix Summary - Warehouse
Geographic Mix Three Months Ended
December 31, 2004
Geographic Mix Three Months Ended
December 31, 2005
Percentages of Warehouse Gross Sales by Region
Geographic Mix Summary - DSD
Geographic Mix Three Months Ended
December 31, 2004
Geographic Mix Three Months Ended
December 31, 2005
Percentages of DSD Gross Sales by Region
Distribution Strategy and Logistics
Hansen’s Products Reach Customers Nationwide
Whole Foods
Wild Oats
Trader Joes
Health Food /
Specialty
Wal-Mart
Target
Savon
Walgreen’s
CVS
Mass / Drug
7-11
Chevron
BP / Arco / AM/PM
Circle-K / Mac’s
Speedway
Exxon – Mobil
Hess
Sunoco
Casey’s
United Dairy Farmers
Convenience
B.J.’s
Costco
Sam’s Club
Warehouse
Safeway
Albertson’s
Kroger
Ralph’s
Vons
Grocery
Selected
Customers
Channel
Customers
The table to the right demonstrates the diversity of
Hansen’s customer base.
Value Chain / Logistics
Hansen’s contracts with a number of co-packers for
manufacture.
Growth Strategy
Grow existing brands
Develop and launch new products / brands including:
Monster 23.5 oz and 8 oz. cans
Monster 4 packs and 8 packs
Monster Khaos
…lost Five-O
…lost Perfect 10
Rumba Energy Juice
Joker Mad Energy
Fizzit
Others
Expand distribution
Increase quality and penetration of existing distribution
Four-Pronged Approach
Conclusion
Hansen’s continues to excel in its markets.
The Hansen’s brand is respected and trusted in the marketplace by an
extremely loyal base of consumers.
The premium healthier brand image enjoyed by Hansen’s Natural Sodas
offers unlimited opportunity to capture substantial additional share of the CSD
market, through national distribution.
Monster, Lost, Hansen’s Energy, Energade and Rumba provide an
unparalleled platform to lead the energy category (together with Red Bull). In
fact, as this category continues to grow, we believe that Hansen’s portfolio is
better positioned to address the broader, emerging consumer base than Red
Bull or any of the competition.
