SODASTREAM INTERNATIONAL LTD.

Transcription

1 SODASTREAM INTERNATIONAL LTD. FORM 6-K (Report of Foreign Issuer) Filed 11/07/12 for the Period Ending 11/07/12 Telephone 972 (3) CIK Symbol SODA SIC Code Household Appliances Industry Misc. Capital Goods Sector Capital Goods Fiscal Year 12/31 Copyright 2016, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of November 2012 Commission File Number: SodaStream International Ltd. (Translation of Registrant s Name into English) Gilboa Street, Airport City Ben Gurion Airport 70100, Israel (Address of Principal Executive Office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes No Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes No Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: Yes No If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.

3 EXPLANATORY NOTE On November 7, 2012, SodaStream International Ltd. (the Company ) issued a press release announcing its third quarter results for the period ending September 30, A copy of the press release is attached to this Form 6-K as Exhibit 99.1 and is incorporated herein by reference. In conjunction with the conference call being held on November 7, 2012, the Company also is releasing commentary from its Chief Financial Officer (attached to this Form 6-K as Exhibit 99.2 and incorporated herein by reference) and a PowerPoint presentation with additional information (attached to this Form 6-K as Exhibit 99.3 and incorporated herein by reference). The information in this Form 6-K (including in Exhibits 99.1, 99.2 and 99.3) shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act ) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SODASTREAM INTERNATIONAL LTD. (Registrant) Date: November 7, 2012 By: /s/ Eyal Shohat Eyal Shohat General Counsel and Corporate Secretary

5 EXHIBIT INDEX The following exhibit is filed as part of this Form 6-K: Exhibit Description 99.1 Press release dated November 7, Commentary from the Chief Financial Officer of the Registrant PowerPoint presentation with additional information.

6 Press Release- SodaStream SODASTREAM REPORTS RECORD THIRD QUARTER RESULTS Third Quarter Revenue Increased to $112.5 Million Third Quarter Net Income Increased to $16.8 Million Third Quarter Diluted Earnings Per Share Increased to $0.80 Third Quarter Adjusted Diluted Earnings Per Share Increased to $0.87 AIRPORT CITY, Israel November 7, 2012 SodaStream International Ltd. (NASDAQ: SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and nine month periods ended September 30, For the third quarter ended September 30, 2012: Total revenue increased 48.7% to $112.5 million from $75.7 million in the third quarter Net income increased 65.9% to $16.8 million compared to $10.1 million a year ago, and Adjusted net income was $18.2 million compared to $11.5 million last year. Diluted earnings per share increased 66.7% to $0.80, compared to $0.48 in the third quarter 2011 and Adjusted diluted earnings per share were $0.87 compared to $0.55 a year ago. "We had another very strong quarter highlighted by gains in all geographic regions and product categories with demand well ahead of our expectations" said Daniel Birnbaum, Chief Executive Officer of SodaStream. "Our growth strategies have yielded excellent financial results year-to-date and position the Company for continued expansion in 2013 and beyond. We enter the fourth quarter with strong momentum, especially in the U.S. where we've quickly built a powerful distribution network for our expanding portfolio of soda makers and consumables. Our newest flagship soda maker, the Source, is set to debut at select retailers worldwide. With its modern design and innovative functionality, we believe the Source is a transformational product that will broaden appeal of our entire system and help drive household penetration to a new level. To leverage our enhanced product portfolio and broad distribution, we are launching our first global branding campaign that highlights the revolutionary essence of SodaStream and challenges the traditional beverage industry. The progress we've made leading the growth of our category worldwide has put the Company on track to deliver significant value for our shareholders in the years ahead." Third Quarter 2012 Financial Review Geographical Revenue Breakdown Revenue Three Months Ended September 30, 2012 September 30, 2011 Increase Increase In Millions USD % Western Europe $ 52.6 $ 39.7 $ % The Americas % Central & Eastern Europe, Middle East, Africa % Asia-Pacific % Total $ $ 75.7 $ % 1

7 Press Release - SodaStream Product Segment Revenue Breakdown Revenue Three Months Ended September 30, 2012 September 30, 2011 Increase Increase In millions USD % Soda Maker Starter Kits $ 46.5 $ 33.9 $ % Consumables % Other % Total $ $ 75.7 $ % Product Segment Unit Breakdown Gross margin for the third quarter 2012 was 54.2%, compared to 53.5% for the same period in This increase was primarily due to the increase in direct distribution that accounted for 69% of total revenue in the quarter vs. 56% in the third quarter This increase is mainly due to growing share of U.S. revenue and the shift to self-distribution in the Nordics. Gross margin was also positively impacted from leveraging fixed production costs on higher revenue, partially offset by a higher percentage of subcontracted manufacturing. Sales and marketing expenses for the third quarter 2012 totaled $35.8 million, or 31.8% of revenue compared to $23.1 million, or 30.6% of revenue for the comparable period last year. The increase is primarily due to higher advertising and promotion expense, which was in line with the plan to support the growing retail presence, especially in the U.S. This was partially offset by a decrease in other selling expenses as a percent of revenue, despite the aforementioned increase in self-distribution versus a year ago, driven by improved supply chain efficiency and expense leverage on higher revenue. General and administrative expenses for the third quarter 2012 were $8.7 million, or 7.8% of revenue, compared to $7.6 million, or 10.1% of revenue in the comparable period of last year. This includes the additional expenses associated with the acquisition of CEM Industries in the fourth quarter 2011 and the acquisition of the distribution activity in the Nordics in the first quarter Operating income increased to $16.4 million, or 14.6% of revenue as compared to $9.8 million, or 13.0% of revenue in the third quarter Tax benefit was $850,000 compared to a tax expense of $816,000 in the third quarter This is primarily attributable to an adjustment of tax provision following an agreement with the tax authorities in one of our jurisdictions. Excluding this adjustment the effective tax rate in the third quarter 2012 was approximately 8%, similar to the third quarter Balance Sheet Review Three Months Ended September 30, 2012 September 30, 2011 Increase Increase In thousands % Soda Maker Starter Kits % CO2 Refills 4,337 3, % Flavors 7,747 4,399 3, % On August 31, 2012, the Company acquired the SodaStream related assets from its Canadian distributor and started operating its products' distribution in Canada as a self-distribution unit. This had no material impact on the results of operations. The main asset acquired in the transaction was inventory of $5.9 million. The inventory and cash balance at September 30, 2012 reflect this transaction. Cash and cash equivalents and bank deposits at September 30, 2012 were $50.7 million compared to $74.3 million on December 31, The decrease is primarily attributable to the acquisition of the Nordics and Canadian distribution activities, debt repayment and an increase in working capital. 2

8 Press Release - SodaStream The Company had no outstanding loans and borrowings at September 30, 2012 compared to $4.0 million on December 31, Working capital at September 30, 2012 increased 29.5% to $101.4 million compared to $78.3 million on December 31, Inventories at September 30, 2012 increased 44.6% to $110.8 million compared to $76.6 million on December 31, 2011, primarily reflecting the additional inventory associated with the acquisition of the Nordics and Canadian inventory and the Company's business growth, primarily in the U.S. Change of reporting currency Beginning with the quarter ended March 31, 2012, the Company changed its reporting currency to the U.S. dollar (USD). Previously, the Company presented its annual and quarterly consolidated balance sheets and related consolidated statements of operations and cash flows in Euro (EUR). In accordance with IFRS, the financial statements for comparative periods were translated into the new reporting currency using the EUR to USD exchange rate at January 1, 2012 of EUR 1.00 = USD Guidance Based on third quarter results and current projections for the remainder of the year, the Company is raising its outlook. The Company now expects 2012 revenue to increase approximately 46% over 2011 revenue of $289.0 million, up from its previous guidance of 40%. The Company now expects 2012 net income to increase approximately 59% over 2011 net income of $27.5 million, up from its previous guidance of 55%. This guidance assumes full year gross margin of approximately 54.5% and includes a share-based expense of approximately $5.6 million. Gross margin for the fourth quarter 2012 includes a higher mix of third party manufacturing and additional transportation expenses in order to meet the high demand for several new product launches scheduled for the holiday season. Conference Call and Management Commentary Detailed CFO commentary and a supplemental slide presentation have been filed as part of today s 6-K and will be posted on the Company s website, The Company has scheduled a conference call for 8:30 AM Eastern Standard Time (U.S. time) today (Wednesday, November 7, 2012) to review the Company s financial results. The conference call will be broadcast over the Internet as a live listen only Webcast. To listen, please go to: 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 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 60,000 retail stores in 45 countries around the world. For more information on SodaStream, please visit the Company's website: To download SodaStream's investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit for your iphone/ipad, or for your Android mobile device. 3

9 Press Release - SodaStream Non-IFRS Financial Measures This press release contains certain non-ifrs measures, including Adjusted net income ( Adjusted net income ), Adjusted Earnings Before Interest, Income Tax, Depreciation and Amortization ( Adjusted EBITDA ), and Adjusted diluted earnings per share ( Adjusted diluted EPS ). Adjusted net income represents net income calculated in accordance with IFRS as adjusted for the impact of the Share-Based Compensation Expense. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of the Share-Based Compensation Expense. Adjusted diluted EPS represents earnings per share calculated in accordance with IFRS as adjusted for the impact of the Share- Based Compensation Expense. The Company believes that the Adjusted net income, Adjusted EBITDA and Adjusted diluted EPS, which excludes the Share-Based Compensation Expense, 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 Statements 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 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 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 to operate; risks associated with our being a multinational corporation, including 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 Company Contact: Yonah Lloyd Chief Corporate Development and Communications Officer SodaStream International Ltd. Phone: [email protected] Investor Contacts (US): Brendon Frey ICR Phone: [email protected] 4

10 Press Release - SodaStream Consolidated Statements of Operations In thousands (net income per share amounts in units) For the nine months ended For the three months ended September 30, September 30, (Unaudited) (Unaudited) Revenue $ 203,265 $ 303,369 $ 75,655 $ 112,482 Cost of revenue 94, ,052 35,152 51,531 Gross profit 108, ,317 40,503 60,951 Operating expenses Sales and marketing 62, ,176 23,129 35,825 General and administrative 22,408 27,607 7,605 8,741 Other income, net (121) (134) (40) (54) Total operating expenses 85, ,649 30,694 44,512 Operating income 23,383 37,668 9,809 16,439 Interest expense (income), net (1,200) 40 (506) 35 Other financial expense (income), net (647) 642 (609) 488 Total financial expense (income), net (1,847 ) 682 (1,115 ) 523 Income before income taxes 25,230 36,986 10,924 15,916 Income tax expense (tax benefit) 3, (850 ) Net income for the period $ 22,163 $ 36,327 $ 10,108 $ 16,766 Net income per share Basic $ 1.14 $ 1.79 $ 0.51 $ 0.82 Diluted $ 1.08 $ 1.73 $ 0.48 $ 0.80 Weighted average number of shares Basic 19,376 20,281 20,006 20,410 Diluted 20,452 20,984 21,002 21,027 5

11 Press Release - SodaStream Consolidated Balance Sheets as of December 31, September 30, (Audited) (Unaudited) (In thousands) Assets Cash and cash equivalents $ 34,769 $ 30,676 Bank deposits 39,485 20,056 Inventories 76, ,806 Trade receivables 58,452 80,861 Other receivables 20,064 20,338 Derivative financial instruments Assets classified as available-for-sale Total current assets 230, ,787 Property, plant and equipment 46,434 72,845 Intangible assets 25,358 38,084 Deferred tax assets 1,168 1,774 Other receivables Total non-current assets 73, ,972 Total assets 303, ,759 Liabilities Loans and borrowings 4,006 - Derivative financial instruments Trade payables 47,383 72,236 Income tax payable 9,171 8,908 Provisions 397 1,515 Other current liabilities 21,071 28,592 Total current liabilities 82, ,675 Employee benefits 1,497 1,458 Provisions Deferred tax liabilities 717 1,161 Total non-current liabilities 2,728 3,150 Total liabilities 84, ,825 Shareholders equity Share capital 3,238 3,292 Share premium 168, ,458 Translation reserve 1,471 2,185 Retained earnings 45,672 81,999 Total shareholders equity 218, ,934 Total liabilities and shareholders equity $ 303,738 $ 376,759 6

12 Press Release - SodaStream Consolidated Statements of Cash Flows For the nine months ended For the three months ended September 30, September 30, (Unaudited) (Unaudited) (In thousands) Cash flows from operating activities Net income for the period $ 22,163 $ 36,327 $ 10,108 $ 16,766 Adjustments: Amortization of intangible assets 477 1, Change in fair value of derivative financial instruments (79) - Depreciation of property, plant and equipment 3,128 6, ,211 Share based payment 4,040 4,293 1,348 1,458 Interest expense (income), net (1,200) 40 (506) 35 Income tax expense (tax benefit) 3, (850) 32,141 48,959 12,741 20,040 Increase in inventories (20,081) (23,909) (9,747) (11,368) Increase in trade and other receivables (19,048) (37,984) (10,878) (16,186) Increase in trade payables 6,091 23,588 5,598 11,124 Decrease in employee benefits (14) (28) (6) (15) Increase in provisions and other current liabilities 84 5, ,365 (827) 16,450 (2,060) 4,960 Interest paid (272) (334) (79) (97) Income tax received - 1, Income tax paid (3,010) (3,047) (1,357) (756) Net cash from (used in) operating activities (4,109) 14,802 (3,496) 4,354 Cash flows from investing activities Interest received 1,003 1, Investment in bank deposits (51,892) (20,000) (51,892) (10,000) Proceeds from bank deposits - 38, Proceeds from (payments for) derivative financial instruments, net (44) 7 (25) 561 Acquisition of subsidiary, net of cash acquired - (10,954) - (1,196) Acquisition of property, plant and equipment (14,067) (23,759) (7,770) (9,253) Acquisition of intangible assets (650) (2,125) (398) (1,162) Net cash used in investing activities (65,650) (16,731) (59,864) (20,948) Cash flows from financing activities Share issuance 42, Proceeds from exercise of employee share options 899 1, Change in short-term debt (8,609) (3,873) Net cash from (used in) financing activities 35,219 (2,255) Net decrease in cash and cash equivalents (34,540) (4,184) (63,080) (16,250) Cash and cash equivalents at the beginning of the period 68,627 34,769 96,980 46,593 Effect of exchange rates fluctuations on cash and cash equivalents (154) Cash and cash equivalents at the end of the period $ 33,933 $ 30,676 $ 33,933 $ 30,676 7

13 Press Release - SodaStream Information about revenue in reportable segments Western Europe The Americas Central and Eastern Europe, Middle East, Africa Asia-Pacific Total (In thousands) Nine months ended: September 30, 2012 (Unaudited) $ 152,336 94,943 25,314 30,776 $ 303,369 September 30, 2011 (Unaudited) $ 113,457 51,918 25,724 12,166 $ 203,265 Three months ended: September 30, 2012 (Unaudited) $ 52,611 38,660 10,303 10,908 $ 112,482 September 30, 2011 (Unaudited) $ 39,683 24,007 7,514 4,451 $ 75,655 8

14 Press Release - SodaStream Reported (IFRS) to Adjusted (non-ifrs) Reconciliation of Consolidated Statements of Operations Nine months ended September 30, Reported Share based Reported Share based (Unadjusted) payment Adjusted (Unadjusted) payment Adjusted (Unaudited) In thousands (net income per share amounts in units) Revenue $ 203,265 $ - $ 203,265 $ 303,369 $ - $ 303,369 Cost of revenue 94,858-94, , ,052 Gross profit 108, , , ,317 Operating expenses Sales and marketing 62,737-62, , ,176 General and administrative 22,408 (4,040) 18,368 27,607 (4,293) 23,314 Other income, net (121) - (121) (134) - (134) Total operating expenses 85,024 (4,040) 80, ,649 (4,293) 123,356 Operating income 23,383 4,040 27,423 37,668 4,293 41,961 Interest expense (income), net (1,200) - (1,200) Other financial expense (income), net (647) - (647) Total financial expense (income), net (1,847) - (1,847) Income before income taxes 25,230 4,040 29,270 36,986 4,293 41,279 Income tax expense 3,067-3, Net income for the period $ 22,163 $ 4,040 $ 26,203 $ 36,327 $ 4,293 $ 40,620 Net income per share Basic $ 1.14 $ 1.35 $ 1.79 $ 2.00 Diluted $ 1.08 $ 1.28 $ 1.73 $ 1.94 Weighted average number of shares Basic 19,376 19,376 20,281 20,281 Diluted 20,452 20,452 20,984 20,984 9

15 Press Release - SodaStream Reported (IFRS) to Adjusted (non-ifrs) Reconciliation of Consolidated Statements of Operations Three months ended September 30, Reported Share based Reported Share based (Unadjusted) payment Adjusted (Unadjusted) payment Adjusted (Unaudited) In thousands (net income per share amounts in units) Revenue $ 75,655 $ - $ 75,655 $ 112,482 $ - $ 112,482 Cost of revenue 35,152-35,152 51,531-51,531 Gross profit 40,503-40,503 60,951-60,951 Operating expenses Sales and marketing 23,129-23,129 35,825-35,825 General and administrative 7,605 (1,348) 6,257 8,741 (1,458) 7,283 Other income, net (40) - (40) (54) - (54) Total operating expenses 30,694 (1,348) 29,346 44,512 (1,458) 43,054 Operating income 9,809 1,348 11,157 16,439 1,458 17,897 Interest expense (income), net (506) - (506) Other financial expense (income), net (609) - (609) Total financial expense (income), net (1,115) - (1,115) Income before income taxes 10,924 1,348 12,272 15,916 1,458 17,374 Income tax expense (tax benefit) (850) - (850) Net income for the period $ 10,108 $ 1,348 $ 11,456 $ 16,766 $ 1,458 $ 18,224 Net income per share Basic $ 0.51 $ 0.57 $ 0.82 $ 0.89 Diluted $ 0.48 $ 0.55 $ 0.80 $ 0.87 Weighted average number of shares Basic 20,006 20,006 20,410 20,410 Diluted 21,002 21,002 21,027 21,027 10

16 Press Release - SodaStream EBITDA and Adjusted EBITDA Nine months ended Three months ended September 30, September 30, (Unaudited) (In thousands) Reconciliation of Net Income to EBITDA and Adjusted EBITDA Net income $ 22,163 $ 36,327 $ 10,108 $ 16,766 Interest expense (income), net (1,200) 40 (506) 35 Income tax expense (tax benefit) 3, (850) Depreciation and amortization 3,605 7,136 1,054 2,631 EBITDA 27,635 44,162 11,472 18,582 Share based payment 4,040 4,293 1,348 1,458 Adjusted EBITDA $ 31,675 $ 48,455 $ 12,820 $ 20,040 11

17 Press Release - SodaStream The following tables present the Company s revenue, by product type for the periods presented, as well as such revenue by product type as a percentage of total revenue (*): Nine months ended Three months ended September 30, September 30, (Unaudited) Revenue (in thousands) Soda maker starter kits (including exchange cylinders) $ 84,912 $ 119,800 $ 33,868 $ 46,486 Consumables 114, ,029 40,710 62,979 Other 3,669 6,540 1,077 3,017 Total $ 203,265 $ 303,369 $ 75,655 $ 112,482 Nine months ended Three months ended September 30, September 30, (Unaudited) As a percentage of revenue Soda maker starter kits (including exchange cylinders) 41.8 % 39.5 % 44.8 % 41.3 % Consumables 56.4 % 58.4 % 53.8 % 56.0 % Other 1.8 % 2.1 % 1.4 % 2.7 % Total % % % % (*)The Company reclassified prior periods' data such that revenue from spare cylinders, formerly presented under the "soda maker starter kits" category, are presented under the "consumables" category, as the purchase of a spare cylinder more closely resembles the purchase of other consumables than it does the initial purchase of a soda maker. The effect was an increase in revenue from consumables by $9,905 thousand and $ 3,932 thousand for nine months and three months ended September 30, 2011, respectively (increase in 480 basis points and 520 basis points of total revenue of these periods, respectively), and the same decrease in revenue from soda maker starter kits for the respective periods (and the same decrease in basis points of total revenue of those periods, respectively). 12

18 SodaStream International Ltd. Chief Financial Officer s Commentary Third Quarter 2012 Revenue, Net income and EPS for the comparable periods are also provided in this document, on a non-ifrs basis, in U.S. dollar ("USD") translated from Euro ("EUR") at the average exchange rate of the respective periods. Revenue Third quarter revenue increased 48.7% to $112.5 million from $75.7 million in the third quarter Western Europe revenue increased 32.6% to $52.6 million from $39.7 million; The Americas revenue increased 61.0% to $38.7 million from $24.0 million; Asia-Pacific revenue increased 145.1% to $10.9 million from $4.5 million; and CEMEA revenue increased 37.1% to $10.3 million from $7.5 million. The transfer to self-distribution in the Nordics contributed approximately $4.0 million to the revenue in the quarter. The Americas portion of the revenue increased to 34% from 32% in the third quarter 2011, following the continued exceptional U.S. revenue increase, Asia Pacific increased to 10% of revenue from 6% in the comparable quarter due to Japan, South Korea and Australia s revenue increase, and Western Europe and CEMEA decreased to 56% of total revenue from 62% in the comparable quarter despite the overall revenue increase in both regions. Soda maker unit sales increased 31% to 941,000 from 717,000. CO2 refill unit sales increased 19% to 4.3 million; and flavor unit sales increased 76% to 7.7 million. Both CO2 refill and flavor sales unit increases reflect growth in all regions following the continued expansion of the SodaStream user base.

19 Gross Margin Third quarter gross margin was 54.2% this year compared with 53.5% last year. This increase in gross margin resulted primarily from the increase in direct distribution that accounted for 69% of total revenue in the quarter vs. 56% in the third quarter This increase is mainly due to the growing share of U.S. revenue and the shift to self-distribution in the Nordics. Gross margin was also positively impacted from leveraging fixed production costs on higher revenue, partially offset by a higher percentage of subcontracted manufacturing. Sales & Marketing Sales and marketing expenses in the quarter increased by 54.9% to $35.8 million, or 31.8% of revenue, compared to $23.1 million, or 30.6% of revenue for the same quarter last year. The increase is primarily attributable to higher A&P expense of 14.1% of revenue compared to 11.4% in the third quarter A&P expense was in line with our plan to support our growing retail presence, especially in the U.S. which was allocated approximately 50% of the total A&P budget. Other selling expenses as a percent of revenue decreased to 17.7% compared to 19.2% in the third quarter 2011 despite the aforementioned increase in self-distribution versus a year ago. This was driven by improved supply chain efficiency and expense leverage on higher revenue. General & Administrative General and administrative expenses for the third quarter were $8.7 million, or 7.8% of revenue, compared to $7.6 million, or 10.1% of revenue last year. This includes the additional expenses associated with the Nordics and CEM acquisitions. The third quarter 2012 included approximately $1.5 million of share based compensation expense vs. $1.3 million in the third quarter Operating Income Operating income increased to $16.4 million, or 14.6% as a percentage of revenue as compared to $9.8 million, or 13.0% of revenue in the third quarter Tax Rate The Company had a tax benefit of $850,000 compared to a tax expense of $816,000 in the third quarter The tax benefit resulted mainly from an adjustment of tax provision following an agreement with the tax authorities in one of our jurisdictions. Excluding this adjustment the effective tax rate in the third quarter 2012 was approximately 8%, similar to the third quarter Net Income Third quarter 2012 net income on IFRS basis was $16.8 million, or $0.80 per share based on 21.0 million weighted shares outstanding, compared to net income on IFRS basis of $10.1 million, or $0.48 per share based on 21.0 million weighted shares outstanding in the third quarter Excluding the share based compensation expense, third quarter 2012 adjusted net income was $18.2 million, or $0.87 per diluted share, compared to adjusted net income of $11.5 million, or $0.55 per diluted share a year ago. Foreign Currency Impact Changes in foreign exchange rates ("FX") had a negative impact of approximately $1.5 million on third quarter 2012 revenue vs. third quarter 2011, due to the strengthening of the USD against most revenue business currencies and the constant EUR/USD translation rate of Approximately 59% of revenue was in non-usd currencies, most of which were currencies used also in the third quarter 2011, mainly the EUR. Approximately 70% of the costs and expenses were also in non-usd currencies, mainly the EUR and the Israeli Shekels, offsetting the negative impact FX had on the revenue. The net FX impact on the operating income was not material.

20 Balance Sheet As of September 30, 2012, the Company had cash and cash equivalents and bank deposits of $50.7 million compared to $56.6 million at June 30, 2012 and $74.3 million at December 31, The decrease compared to June 30, 2012 was mainly due to the acquisition of the Canadian distributor's assets (mainly inventory) following the shift to self-distribution in Canada and the purchase of property, plant and equipment to allow production capacity growth. The decrease compared to year-end 2011 was primarily attributable to the acquisition of the Nordics and Canadian distribution activities, debt repayment and working capital increase. As of September 30 and June 30, 2012, the Company had no outstanding loans and borrowings vs. $4.0 million banks' debt as of December 31, September 30, 2012 working capital increased by $16.7 million to $101.4 million from $84.7 million as of June 30, 2012 and by $23.1 million from $78.3 million as of December 31, Inventories increased by $17.9 million to $110.8 million as of September 30, 2012 compared to $92.9 million as of June 30, 2012 mainly due to the acquisition of the Canadian distributor's inventory and the preparation for the holiday season. Compared to December 31, 2011 inventory increased by $34.2 million from $76.6 million mainly due to the additional Nordics and Canadian inventory and the growth of our business, primarily in the U.S. Change of reporting currency Beginning with the quarter ended March 31, 2012, the Company changed its reporting currency to the USD. Previously, the Company presented its annual and quarterly consolidated balance sheets and related consolidated statements of operations and cash flows in EUR. In accordance with IFRS, the financial statements for comparative periods were translated into the new reporting currency using the EUR to USD exchange rate at January 1, 2012 of 1.00 = $ Revenue, Net income and EPS for the comparable periods in USD translated at the average exchange rate of the respective periods (non-ifrs basis) Q3 12 Q3 11 Q3 11 (non-ifrs) 1.00 = $ = $ Revenue ('000) $112,482 $75,655 $82,501 Net income ('000) $16,766 $10,108 $11,023 Net income ('000) (non-ifrs) $18,224 $11,456 $12,493 EPS diluted $0.80 $0.48 $0.52 EPS diluted (non-ifrs) $0.87 $0.55 $0.59 Q Q Q (non-ifrs) 1.00 = $ = $ Revenue ('000) $303,369 $203,265 $220,500 Net income ('000) $36,327 $22,163 $24,042 Net income ('000) (non-ifrs) $40,620 $26,203 $28,425 EPS diluted $1.73 $1.08 $1.18 EPS diluted (non-ifrs) $1.94 $1.28 $1.39

21 Q Performance Supplement to Press Release of November 7, 2012

22 Q Presentation 1 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 forward - looking 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.

23 Q Presentation 2 Non - IFRS Financial Measures This presentation contains certain non - IFRS measures, including Adjusted net income ( Adjusted net income ), Adjusted Earnings Before Interest, Income Tax, Depreciation and Amortization ( Adjusted EBITDA ), and Adjusted diluted earnings per share ( Adjusted diluted EPS ). Adjusted net income represents net income calculated in accordance with IFRS as adjusted for the impact of the Share - Based Compensation Expense. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of the Share - Based Compensation Expense. Adjusted diluted EPS represents earnings per share calculated in accordance with IFRS as adjusted for the impact of the Share - Based Compensation Expense. The Company believes that the Adjusted net income, Adjusted EBITDA and Adjusted diluted EPS, which excludes the Share - Based Compensation Expense, 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 presentation have been reconciled to the IFRS results in the table included at the end of this presentation.

24 Q Presentation 3 Financial Highlights: Q / Q Q % Change Total Revenues $112.5 million +49% Soda Maker Units 941, % Flavor Units 7.7 million +76% CO 2 Refill Units 4.3 million +19% Net Income $16.8 million +66% Adjusted Net Income $18.2 million +59% EPS* $ % Adjusted EPS* $ % *Based on 21.0 million weighted shares outstanding in both Q and Q

25 Q Presentation 4 Quarterly Revenue Growth Quarterly Revenues (in $ Million ) Q1 Q2 Q3 Q

26 Q Presentation 5 Soda Maker Units Quarterly Soda Maker Unit Sales (in thousands) ,000 Q1 Q2 Q3 Q

27 Q Presentation 6 CO 2 Refill Units Quarterly Refill Unit Sales (in millions) Q1 Q2 Q3 Q

28 Q Presentation 7 Flavor Units Quarterly Flavor Unit Sales (in millions) Q1 Q2 Q3 Q

29 Q Presentation 8 Fiscal 2012 Guidance Update Revenue growth of approximately 46 % over 2011 revenue of $ million, up from previous guidance of 40 % Net income growth of approximately 59 % over 2011 net income of $ 27.5 million, up from previous guidance of 55 % Adjusted net income growth of approximately 50 % over 2011 adjusted net income of $ 32.9 million, up from previous guidance of 47 %

30 Q Presentation 9 Reported (IFRS) to Adjusted (non - IFRS) Reconciliation of Consolidated Statements of Operations Q vs. Q Reported Share based Reported Share based (Unadjusted) payment Adjusted (Unadjusted) payment Adjusted (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $75,655 $ $75,655 $112,482 $ $112,482 Cost of revenues 35,152 35, ,531 51,531 Gross profit 40,503 40,503 60,951 60, 951 Operating expenses Sales and marketing 23,129 23,129 35,825 35,825 General and administrative 7,605 (1,348) 6,257 8,741 (1,458) 7,283 Other income, net (40) (40) (54) (54) Total operating expenses 30,694 (1,348) 29,346 44,512 (1,458) 43,054 Operating income 9,809 1,348 11,157 16,439 1,458 17,897 Interest expense (income), net (506) (506) Other financial expense (income), net (609) (609) Total financial expense (income), net (1,115) (1,115) Income before income taxes 10,924 1,348 12,272 15,916 1,458 17,374 Income tax expense (tax benefit) (850) (850) Net income for the period $10,108 $1,348 $11,456 $16,766 $1,458 $18,224 Net income per share Basic $0.51 $0.57 $0.82 $0.89 Diluted $0.48 $0.55 $0.80 $0.87 Weighted average number of shares Basic 20,006 20,006 20,410 20,410 Diluted 21,002 21,002 21,027 21,027