SodaStream International Reports Record Fourth Quarter and Full Year Revenue

Fourth Quarter Revenues Increased 59% to Euro 50.0 Million

Fiscal 2010 Revenues Increase 53% to Euro 160.7 Million

Fourth Quarter Diluted Earnings Per Share was Euro 0.21

Mar 01, 2011, 07:30 ET from SodaStream International, Ltd.

AIRPORT CITY, Israel, March 1, 2011 /PRNewswire/ -- SodaStream International Ltd. (Nasdaq: SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and twelve month periods ended December 31, 2010.

(http://photos.prnewswire.com/prnh/20100903/NY58941LOGO-b )

Fourth Quarter Financial Highlights

  • Revenues increased 59% to euro 50.0 million
  • Americas revenues increased 238% to euro 14.5 million
  • Western Europe revenues increased 24% to euro 25.4 million
  • Diluted earnings per share was euro 0.21 or $0.28
  • Soda maker unit sales increased 85% to 712,000

Fiscal 2010 Financial Highlights

  • Revenues increased 53% to euro 160.7 million
  • Americas revenues increased 189% to euro 31.6 million
  • Western Europe revenues increased 34% to euro 99.7 million
  • Adjusted net income increased 69% to euro 13.0 million
  • Soda maker unit sales increased 82% to 1.9 million

Commenting on the results, Daniel Birnbaum, Chief Executive Officer of SodaStream International said, "We delivered a strong fourth quarter performance to conclude an exciting and successful year for our Company. These results underscore the progress we have achieved in expanding our global business, particularly in the United States. Through increased marketing & advertising and initiating distribution with several key retailers, we significantly broadened awareness of our brand and products and generated strong consumer demand in the U.S. We also experienced solid sales growth in our other regions driven by our growing installed base and product launches. Importantly, our strong top-line performance helped us achieve record earnings in 2010.

"We began 2011 with positive momentum across our business and significant growth opportunities ahead of us.  In the near-term, our priorities are to further penetrate the U.S. with additional distribution and ongoing marketing efforts aimed at creating new customers and repeat purchases of our consumables portfolio. Over time, this business model has proven to be highly profitable in developed markets and we are optimistic that we can replicate our success in the U.S. and other new markets throughout Western Europe, CEMEA and Asia Pacific. We have a great deal of confidence in the future of SodaStream and believe we have the capability to grow this business for many years to come."

Results for the Three Months Ended December 31, 2010:

Total revenues for the fourth quarter of 2010 were euro 50.0 million, $66.3 million as per a convenience translation*, an increase of 58.5% compared to euro 31.5 million reported in the fourth quarter of 2009.  Revenues increased in each geographical region, with revenues for Western Europe and the Americas increasing 24.2% and 238.0%, respectively, compared to the fourth quarter of 2009. (See table with geographic breakdown below)

During the fourth quarter of 2010, the Company sold 712,000 soda makers as compared to 385,000 during the fourth quarter of 2009, an 85.1% increase, and sold 2.5 million CO2 refills during the fourth quarter of 2010 compared to 2.1 million CO2 refills in the fourth quarter of 2009.

Gross margin for the fourth quarter of 2010 slightly decreased to 54.3%, compared to 54.9% in the comparable period in 2009. This decrease was mainly due to the growing portion of soda maker starter kit sales in the revenue mix, as part of management's strategy to increase market penetration. Gross margin was up from 53.7% for the first nine months of 2010.

Sales and marketing expenses for the fourth quarter of 2010 totaled euro 18.9 million, or 37.9% of revenues, compared to euro 9.3 million, or 29.4% of revenues, for the comparable period last year. The increase is primarily due to investments in the Company's sales & distribution platform and an increase in marketing spend to capitalize on new distribution opportunities, mainly in the United States.

General and administrative expenses for the fourth quarter of 2010 were euro 4.6 million, compared to euro 3.1 million in the comparable period of last year. General and administrative expenses for the three months ended December 31, 2010 include euro 684,000 of non-cash share-based compensation expense (the "Share-Based Compensation") and euro 88,000 related to a discontinued management fee expense paid to Fortissimo Capital (the "Fortissimo Payments"). This compares to Shared-Based Compensation of euro 67,000 and euro 145,000 of the Fortissimo Payments for the three months ended December 31, 2009. Adjusted general and administrative expenses exclude the Shared-Based Compensation as well as the Fortissimo Payments, the latter was cancelled effective as of November 2010. Such adjusted general and administrative expenses were euro 3.9 million or 7.8% of revenues for the fourth quarter 2010, and euro 2.9 million or 9.2% of revenues for the comparable period of 2009.

Net income for the three months ended December 31, 2010 was euro 3.5 million, or 21 euro cents, $0.28 per the convenience translation, per fully diluted share based on 17.1 million weighted average shares, compared to net income of euro 4.2 million, or 32 euro cents per fully diluted share based on 13.3 million weighted average shares, in the comparable period in 2009.  Excluding the Shared-Based Compensation and the Fortissimo Payments, adjusted net income (as defined below) for the fourth quarter of 2010 was euro 4.3 million, or 25 euro cents, $0.33 per the convenience translation per fully diluted share, compared to adjusted net income of euro 4.4 million, or 34 euro cents per fully diluted share in the fourth quarter of 2009.

Adjusted EBITDA for the fourth quarter of 2010 totaled euro 6.2 million, compared to euro 5.9 million for the comparable period in 2009.  Adjusted EBITDA margin was 12.3% for the fourth quarter of 2010 as compared to 18.7% for the comparable period in 2009.

Cash flow used in operating activities during the fourth quarter of 2010 was euro 1.9 million, compared to euro 8.3 million generated from operating activities during the comparable quarter of 2009.  The decrease in operating cash flow was mainly due to an increase in working capital, particularly with respect to inventory in the Americas and Western Europe, to support the Company's growth.

*As of December 31, 2010, the Euro to U.S. Dollar exchange rate was: euro 1 equaled $1.3269.

Results for the twelve months ended December 31, 2010:

Total revenues for the twelve months ended December 31, 2010 increased 53.0% to euro 160.7 million or $213.2 million per the convenience translation, compared to euro 105.0 million for the comparable period in 2009.  Sales increased in each geographical region year-over-year, with revenues for Western Europe and the Americas increasing 34.0% and 188.9%, respectively, compared to the same period in 2009.

For the full year, the Company sold 1,922,000 soda makers compared to 1,057,000 in 2009, an 81.9% increase, and sold 9.8 million CO2 refills during 2010 compared to 8.2 million CO2 refills in 2009.

Gross margin for 2010 decreased to 53.9% compared to 55.6% for the corresponding period last year. This decrease was mainly due to the growing portion of soda maker starter kits in the revenue mix, which have lower gross margins than consumable products.

Sales and marketing expenses for the year ended December 31, 2010 totaled euro 57.1 million, or 35.5% of revenues, compared to euro 34.7 million, or 33.0% for the comparable period last year.  

General and administrative expenses for year ended December 31, 2010 totaled euro 18.5 million compared to euro 13.1 million for the comparable period in 2009.  Included in general and administrative expenses for 2010 was Shared-Based Compensation of euro 1.0 million and euro 2.3 million of the Fortissimo Payments. This compares to Shared-Based Compensation of euro 163,000 and euro 461,000 of the Fortissimo Payments for the comparable period last year. Adjusted general and administrative expenses for 2010, excluding the Shared-Based Compensation and the Fortissimo Payments, were euro 15.2 million, or 9.5% of revenues, compared to euro 12.5 million, or 11.9% of revenue for 2009.

Net income for the year ended December 31, 2010 was euro 9.7 million, or 69 euro cents, $0.92 per the convenience translation, per fully diluted share based on 14.7 million weighted average shares, compared to net income of euro 7.1 million, or 57 euro cents per fully diluted share based on 13.2 million weighted average shares, for the comparable period in 2009. As of December 31, 2010, the Company had 20.2 million shares outstanding on a fully diluted basis. Adjusted net income for the year ended December 31, 2010 increased 69.4% to euro 13.0 million, or 92 euro cents, $1.22 per the convenience translation, per fully diluted share, compared to euro 7.7 million or 62 euro cents per fully diluted share for the year ended December 31, 2009.  

Adjusted EBITDA for the year ended December 31, 2010 totaled euro 18.8 million, compared to euro 13.2 million for the prior year period. Adjusted EBITDA margin for the year ended December 31, 2010 was 11.7% compared to 12.6% for the comparable period last year.

Cash flow used in operating activities during the year ended December 31, 2010 was euro 8.2 million, compared to euro 11.5 million generated during the year ended December 31, 2009.  As with the fourth quarter, the decrease in operating cash flow was mainly due to an increase in working capital, particularly with respect to inventory in the Americas and Western Europe to support the Company's growth, as well as tax payments made with respect to previous years.

Guidance

The Company expects 2011 revenue to increase approximately 25% over 2010 revenue of euro 160.7 million.  The Company also expects net income to increase approximately 40% over the net income of euro 9.7 million reported in 2010. This guidance includes a share-based payment expense of approximately euro 3.7 million in 2011. On an adjusted basis, excluding the share-based payment expense, fiscal 2011 net income is expected to be approximately euro 17 million.

Balance Sheet

As of December 31, 2010, cash and cash equivalents increased to euro 52.9 million from cash and cash equivalents of euro 4.2 million as of December 31, 2009. The increase is primarily attributable to the euro 69.9 million in net proceeds the Company received from its initial public offering that was completed on November 8, 2010. As of December 31, 2010, loans and borrowings (no outstanding shareholders' loans) totaled euro 6.8 million, compared to euro 24.5 million (including shareholders' loans) as of December 31, 2009. Working capital as of December 31, 2010 was euro 27.2 million, an increase of approximately 434%, compared to euro 5.1 million as of December 31, 2009, primarily due to an increase in inventory and accounts receivable reflecting demand and revenues' growth.

Conference Call

The Company has scheduled a conference call for 8:30 AM Eastern Standard Time (United States) on Tuesday, March 1, 2011, to review the Company's financial results, market trends, and future outlook.  The conference call will be broadcast over the Internet as a "live" listen only Webcast.

To listen, please go to: http://sodastream.investorroom.com.  Listeners are urged to login approximately 20 minutes before the conference call is scheduled to begin in order to register, as well as download and install any necessary audio software. An archive of the webcast will be available for 30 days after the call.

About SodaStream International

SodaStream manufactures home beverage carbonation systems, which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 40,000 retail stores in 41 countries around the world.  For more information on SodaStream, please visit the Company's website: www.sodastream.com.

Non-IFRS Financial Measures

This press release contains certain non-IFRS measures, including Adjusted net income ("Adjusted net income"), and Adjusted Earnings Before Interest, Income Tax, Depreciation and Amortization ("Adjusted EBITDA").  

Adjusted net income represents net income calculated in accordance with IFRS as adjusted for the impact of the Share-Based Compensation and for the impact of the Fortissimo Payments. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of the Share-Based Compensation and of the Fortissimo Payments.

The Company believes that the adjusted net income and adjusted EBITDA, which excludes the Share-Based Compensation and the Fortissimo Payments, should be considered in evaluating the Company's operations since they provide a clearer indication of the Company's operating results going forward.

These measures should be considered in addition to results prepared in accordance with IFRS, but should not be considered a substitute for the IFRS results. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.

Forward Looking Statement

This release 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 significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to expand into our target markets, including the United States; our ability to continue to develop or maintain our presence in retail networks; our ability to develop and implement production and operating infrastructure to effectively support our growth; the success of our marketing campaigns and media spending in terms of increased sales or increased product and brand name awareness; our ability to maintain our customer base in markets where we have an established presence; the risks associated with our reliance on exclusive arrangements for the distribution of our home beverage carbonation systems and consumables in each of the markets in which we use third-party distributors; our ability to compete effectively with other companies which currently offer, or may offer in the future, competing products; potential product liability claims if any component of our home beverage carbonation systems is misused; our ability to protect our intellectual property rights; our being found to have a dominant position in certain markets which may place limits on our ability operate; risks associated with our being subject to fluctuations in currency exchange rates; our potential exposure to greater than anticipated tax liabilities; our products being subject to extensive governmental regulation in the markets in which we operate; adverse conditions in the global economy which could negatively impact our customers' demand for our products; and other factors detailed in documents we file from time to time with the United States Securities and Exchange Commission.  Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Company Contact:

Yonah Lloyd

Executive Director - Corporate Development and Communication

SodaStream International Ltd.

Phone: +972-3-976-2462

yonahl@sodastream.com

Investor Contacts (US):

Brendon Frey / Joe Teklits

ICR

Phone: + 1 203-682-8200

brendon.frey@icrinc.com / joseph.teklits@icrinc.com

Consolidated Balance Sheets as of December 31

In thousands

Convenience

translation into

U.S. Dollar

2009

2010

2010

(Audited)

(Unaudited)

(Unaudited)

Assets

Cash and cash equivalents

euro  4,185 

euro  52,900

$   70,193

Inventories

20,326

38,523

51,116

Trade and other receivables

19,273

38,809

51,495

Derivative financial instruments

486

836

1,109

Assets classified as available-for-sale

500

629

835

Total current assets

44,770

131,697

174,748

Property, plant and equipment

18,760

21,548

28,592

Intangible assets

12,538

13,405

17,787

Deferred tax assets

1,450

1,248

1,656

Other receivables

177

167

222

Total non-current assets

32,925

36,368

48,257

Total assets

77,695

168,065

223,005

Liabilities

Loans and borrowings

7,645

6,753

8,960

Shareholders' loans

6,380

-

-

Derivative financial instruments

364

406

539

Trade payables

17,625

30,425

40,371

Income tax payable

7,615

6,376

8,461

Provisions

1,219

515

683

Other current liabilities

8,676

13,911

18,458

Total current liabilities

49,524

58,386

77,472

Loans and borrowings

5,109

-

-

Shareholders' loans

5,413

-

-

Employee benefits

82

768

1,018

Provisions

306

379

503

Deferred tax liabilities

605

410

545

Total non-current liabilities

11,515

1,557

2,066

Total liabilities

61,039

59,943

79,538

Shareholders' equity

Share capital

722

2,286

3,034

Share premium

11,552

91,870

121,902

Translation reserve

(69)

(53)

(70)

Retained earnings

4,451

14,019

18,601

Total shareholders' equity

16,656

108,122

143,467

Total liabilities and shareholders' equity

euro  77,695 

euro  168,065

$   223,005

Consolidated Statements of Operations

In thousands (net income per share amounts in units)

Convenience

Convenience

Translation

Translation

into

into

U.S. Dollar

U.S. Dollars

For the

For the

For the

For the three

For the three

For the three

year ended

year ended

year ended

months ended

months ended

months ended

December 31

December 31

December 31

December 31

December 31

December 31

2009

2010

2010

2009

2010

2010

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

euro 105,023 

euro 160,652

$  213,169

euro 31,538

euro 50,002

$  66,347

Cost of revenues

46,593

74,059

98,268

14,215

22,832

30,295

Gross profit

58,430

86,593

114,901

17,323

27,170

36,052

Operating expenses

Sales and marketing

34,692

57,057

75,708

9,277

18,938

25,128

General and administrative

13,134

18,536

24,595

3,122

4,648

6,168

Other expense

(income), net

(95)

(198)

(263)

29

(106)

(141)

Total operating expenses

47,731

75,395

100,040

12,428

23,480

31,155

Operating income

10,699

11,198

14,861

4,895

3,690

4,897

Interest expense, net

2,022

1,467

1,947

574

399

529

Other financial

income, net

(248)

(1,766)

(2,343)

(372)

(932)

(1,237)

Total financial expenses

(income), net

1,774

(299)

(396)

202

(533)

(708)

Income before

income tax

8,925

11,497

15,257

4,693

4,223

5,605

Income tax

1,793

1,769

2,347

485

740

982

Net income for the period

euro 7,132 

 euro 9,728

$  12,910

euro 4,208

euro 3,483

$  4,623

Net income per share

Basic

euro  1.14 

euro  1.21

$  1.61

euro  0.67

euro  0.26

$  0.35

Diluted

euro  0.57 

euro  0.69

$  0.92

euro  0.32

euro  0.21

$  0.28

Weighted average     number of shares

Basic

6,259

8,026

8,026

6,259

13,417

13,417

Diluted

13,206

14,680

14,680

13,319

17,128

17,128

Consolidated Statements of Cash Flows

In thousands

Convenience

Convenience

Translation

Translation

into

into

U.S. Dollar

U.S. Dollars

For the

For the

For the

For the three

For the three

For the three

year ended

year ended

year ended

months ended

months ended

months ended

December 31

December 31

December 31

December 31

December 31

December 31

2009

2010

2010

2009

2010

2010

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from operating

activities

Net income for the period

euro  7,132 

  euro  9,728

$  12,910

  euro  4,208

euro  3,483

$  4,623

Adjustments:

Amortization of intangible assets

115

117

155

7

57

76

Change in fair value of

derivative financial instruments

449

(144)

(191)

336

334

443

Depreciation of property, plant

and equipment

1,526

2,421

3,212

407

701

930

Loss (gain) on sales of property,

plant and equipment

38

(72)

(96)

25

(63)

(84)

Share based payment

163

1,004

1,332

67

684

908

Interest expense, net

2,022

1,467

1,947

574

399

529

Income tax expense

1,793

1,769

2,347

485

740

982

13,238

16,290

21,616

6,109

6,335

8,407

Decrease (increase) in

inventories

(3,631)

(18,313)

(24,300)

94

(4,363)

(5,789)

Increase in trade and other

receivables

(1,657)

(18,979)

(25,183)

(1,019)

(4,445)

(5,898)

Increase in trade payables

3,477

12,404

16,459

4,242

2,975

3,948

Increase in employee benefits

179

687

912

309

434

576

Increase (decrease) in provisions

and other current liabilities

1,395

4,594

6,096

(1,240)

(1,817)

(2,411)

13,001

(3,317)

(4,400)

8,495

(881)

(1,167)

Interest paid

(1,048)

(1,118)

(1,483)

(304)

(393)

(521)

Income tax received (paid)

(412)

(3,764)

(4,994)

91

(592)

(786)

Net cash from (used in)

operating activities

11,541

(8,199)

(10,877)

8,282

(1,866)

(2,474)

Cash flows from investing

activities

Interest received

47

146

194

9

109

145

Proceeds from sale of property,

plant and equipment

103

108

143

94

63

84

Payments for derivative financial

Instruments, net

(507)

(164)

(218)

(473)

(705)

(935)

Acquisition of property, plant

and equipment

(4,526)

(4,709)

(6,248)

(2,179)

(175)

(232)

Acquisition of intangible assets

(1,002)

(856)

(1,136)

(582)

(517)

(686)

Net cash used in investing

activities

(5,885)

(5,475)

(7,265)

(3,131)

(1,225)

(1,624)

Cash flows from financing

activities

Proceeds from issuance of

convertible shareholders' loan

10

-

-

-

-

-

Share issuance

-

69,864

92,703

-

69,864

92,703

Proceeds from exercise of

employee share options

-

129

171

-

114

151

Receipts of long-term loans

and borrowings

4,784

3,994

5,300

2,114

688

913

Receipts of shareholders' loans

-

-

-

57

-

-

Repayments of long-term loans

and borrowings

(2,561)

(8,347)

(11,076)

(763)

(6,195)

(8,220)

Repayment of shareholders' loans

(347)

(1,603)

(2,127)

-

(1,153)

(1,530)

Change in short-term debt

(7,768)

(1,926)

(2,556)

(7,275)

(11,768)

(15,615)

Net cash from (used in)

financing activities

(5,882)

62,111

82,415

(5,867)

51,550

68,402

Net increase (decrease) in cash

and cash equivalents

(226)

48,437

64,273

(716)

48,459

64,304

Cash and cash equivalents at the

beginning of the period

4,349

4,185

5,553

4,861

4,327

5,741

Effect of exchange rates

fluctuations on cash and

cash equivalents

62

278

367

40

114

148

Cash and cash equivalents

at the end of the period

euro  4,185 

euro  52,900

$  70,193

euro  4,185 

euro  52,900

$  70,193

Information about revenue in reportable segments

In thousands

Central and

Eastern Europe,

Middle East and

Western Europe

Africa

The Americas

Asia-Pacific

Total

Year ended

December 31, 2010 (Unaudited)

euro  99,722

19,466

31,562

9,902

160,652

December 31, 2009 (Audited)

euro  74,433

13,728

10,924

5,938

105,023

Three months ended

December 31, 2010 (Unaudited)

euro  25,410

5,826

14,480

4,286

50,002

December 31, 2009 (Unaudited)

euro  20,464

3,919

4,284

2,871

31,538

Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations

In thousands (net income per share amounts in units)

Year ended December 31

Convenience

Translation

into

U.S. Dollars

2009

2010

2010

Reported

Management

Share based

Reported

Management

Share based

(Unadjusted)

fee(*)

payment

Adjusted

(Unadjusted)

fee(*)

payment

Adjusted

Adjusted

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

euro 105,023 

euro

euro

euro 105,023 

euro 160,652

euro

euro

euro 160,652

$ 213,169

Cost of revenues

46,593

46,593

74,059

74,059

98,268

Gross profit

58,430

58,430

86,593

86,593

114,901

Operating expenses

Sales and marketing

34,692

34,692

57,057

57,057

75,708

General and

administrative

13,134

(461)

(163)

12,510

18,536

(2,290)

(1,004)

15,242

20,224

Other income, net

(95)

(95)

(198)

(198)

(263)

Total operating

expenses

47,731

(461)

(163)

47,107

75,395

(2,290)

(1,004)

72,101

95,669

Operating income

10,699

461

163

11,323

11,198

2,290

1,004

14,492

19,232

Interest expense, net

2,022

2,022

1,467

1,467

1,947

Other financial

income, net

(248)

(248)

(1,766)

(1,766)

(2,343)

Total financial

expenses (income), net

1,774

1,774

(299)

(299)

(396)

Income before

income tax

8,925

461

163

9,549

11,497

2,290

1,004

14,791

19,628

Income tax

1,793

68

1,861

1,769

1,769

2,347

Net income for the

period

euro 7,132 

euro  393

euro  163

euro 7,688

euro 9,728

euro 2,290

euro 1,004

euro 13,022

$ 17,281

Net income per

share

Basic

euro  1.14 

euro  1.23

euro  1.21

euro  1.62

$    2.15

Diluted

euro    0.57 

euro    0.62

euro    0.69

euro    0.92

$    1.22

Weighted average

number of shares

Basic

6,259

6,259

8,026

8,026

8,026

Diluted

13,206

13,206

14,680

14,680

14,680

(*) Fortissimo Capital was entitled to receive management fee from the Company. The aforementioned entitlement was terminated as of the closing of the IPO (November 8, 2010).

Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations

In thousands (net income per share amounts in units)

Three months ended December 31

Convenience

Translation

into

U.S. Dollars

2009

2010

2010

Reported

Management

Share based

Reported

Management

Share based

(Unadjusted)

fee(*)

payment

Adjusted

(Unadjusted)

fee(*)

payment

Adjusted

Adjusted

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

euro 31,538

euro

euro

euro 31,538

euro 50,002

euro

euro

euro 50,002

$   66,347

Cost of revenues

14,215

14,215

22,832

22,832

30,295

Gross profit

17,323

17,323

27,170

27,170

36,052

Operating expenses

Sales and marketing

9,277

9,277

18,938

18,938

25,128

General and

administrative

3,122

(145)

(67)

2,910

4,648

(88)

(684)

3,876

5,143

Other expense

(income), net

29

29

(106)

(106)

(141)

Total operating

expenses

12,428

(145)

(67)

12,216

23,480

(88)

(684)

22,708

30,130

Operating income

4,895

145

67

5,107

3,690

88

684

4,462

5,922

Interest expense, net

574

574

399

399

529

Other financial

income, net

(372)

(372)

(932)

(932)

(1,237)

Total financial

expenses (income), net

202

202

(533)

(533)

(708)

Income before

income tax

4,693

145

67

4,905

4,223

88

684

4,995

6,630

Income tax

485

21

506

740

740

982

Net income for the

period

euro   4,208

euro 124

euro 67

euro 4,399

euro 3,483

euro 88

euro 684

euro 4,255

$  5,648

Net income per

share

Basic

euro  0.67

euro  0.70

euro  0.26

euro  0.32

$    0.42

Diluted

euro  0.32

euro  0.34

euro  0.21

euro  0.25

$    0.33

Weighted average

number of shares

Basic

6,259

6,259

13,417

13,417

13,417

Diluted

13,319

13,319

17,128

17,128

17,128

(*) Fortissimo Capital was entitled to receive management fee from the Company. The aforementioned entitlement was terminated as of the closing of the IPO (November 8, 2010).

EBITDA and EBITDA as Adjusted

In thousands

Year ended December 31

Three months ended December 31

2009

2010

2010

2009

2010

2010

Convenience

translation into

Convenience

translation into

U.S. Dollars

U.S. Dollars

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Reconciliation of Net

Income to EBITDA

Net income

euro  7,132

euro 9,728

$  12,910

euro 4,208

euro 3,483

$  4,623

Interest expense, net

2,022

1,467

1,947

574

399

529

Income tax

1,793

1,769

2,347

485

740

982

Depreciation and

amortization

1,641

2,538

3,367

414

758

1,006

EBITDA

euro 12,588

euro 15,502

$  20,571

euro  5,681

euro  5,380

$  7,140

Management fee

461

2,290

3,039

145

88

117

Share based payment

163

1,004

1,332

67

684

908

EBITDA as Adjusted

euro 13,212

euro 18,796

$  24,942

euro  5,893

euro  6,152

$  8,165

The following tables present the Company's revenues, by product type for the periods presented, as well as such revenues by product type as a percentage of total revenues:

Year ended

December 31

Three months ended

December 31

2009

2010

2009

2010

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

(in thousands)

Soda maker starter kits

euro  39,091

euro   74,223

euro 15,599

euro  27,272

Consumables

59,329

80,351

15,668

21,585

Other

6,603

6,078

271

1,145

Total

euro 105,023

euro 160,652

euro 31,538

euro 50,002

Year ended

Three months ended

December 31

December 31

2009

2010

2009

2010

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

As a percentage of revenues

Soda maker starter kits

37.2%

46.2%

49.4%

54.5%

Consumables

56.5%

50.0%

49.7%

43.2%

Other

6.3%

3.8%

0.9%

2.3%

Total

100%

100%

100%

100%

SOURCE SodaStream International, Ltd.