2016 Results, 2017 Strategy The University of Texas System

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1 N AT U R A L LY S L I M 2016 Results, 2017 Strategy The University of Texas System 1 / 1 8 /

2 Agenda 2016 Outcomes & Six Month Data 2017 Enhancements & Strategy Q&A Feedback Session

3 2016 Rollout Outcomes

4 Participation Overview 10,198 1,662 8,536 Accepted Number of individuals that applied and were accepted. Never Started Number of individuals that were accepted but never started. Started Number of individuals that were accepted and started Week 1 of program.

5 Active Participant Demographic Highlights % Women 16% Men Average Age The average age of the U.S. Workforce is 41 Average BMI Normal BMI for adults over 20 is between Participants On average, male participants lose more weight than female participants, 6% and 5% of body weight loss, respectively

6 Participation Report A v e r a g e t o t a l o f c l a s s e s p a r t i c i p a t e d b y w e e k Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 *Provider agreement with BCBS claims are only billed for actively engaged participants per class

7 Participation Report: Female vs. Male 56% Participated in 8 or More Weeks 58% Participated in 8 or More Weeks 48% Participated in all 10 Weeks 50% Participated in all 10 Weeks

8 6-month projection Weight (in lbs.) Weight Loss by Week F o r a c t i v e p a r t i c i p a n t s Total Weight Loss > lbs Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

9 Weight (in lbs.) 6-month projection Female Weight Loss by Week F o r a c t i v e p a r t i c i p a n t s Total Weight Loss > lbs Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

10 6-month projection Weight (in lbs.) Male Weight Loss by Week F o r a c t i v e p a r t i c i p a n t s Total Weight Loss > 9800 lbs Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10

11 Weight Loss Categories by Pounds Lost 20 or more (286) 3% Lost 10 to less than 20 (1749) 20% Lost 5 to less than 10 (2190) 26% Lost 0 to less than 5 (3926) 46% Gained (385) 5%

12 2035 individuals have already lost 10 or more pounds.

13 Participation by Week by System Location Weeks 1-5 Location Total Accepted Started Never Started Week 1 Week 2 Week 3 Week 4 Week 5 UT MD Anderson Cancer Center % 64% 56% 51% 49% UT Austin % 74% 69% 66% 63% UT Medical Branch at Galveston % 67% 61% 56% 53% UTHealth at Houston % 68% 61% 56% 53% UT Southwestern Medical Center % 73% 67% 62% 59% UT Dallas % 67% 61% 57% 55% UT Health Science Center San Antonio % 78% 69% 66% 63% UT San Antonio % 69% 64% 59% 54% UT Rio Grande Valley % 67% 61% 55% 53% UT Arlington % 79% 72% 68% 64% UT El Paso % 64% 57% 54% 52% University of Texas System Administration % 70% 66% 60% 57% UT Health Northeast at Tyler % 77% 69% 63% 62% UT Tyler % 68% 64% 60% 58% UT Permian Basin % 71% 66% 58% 60%

14 Participation by Week by System Location Weeks 6-10 Location Total Accepted Started Never Started Week 6 Week 7 Week 8 Week 9 Week 10 UT MD Anderson Cancer Center % 43% 41% 39% 36% UT Austin % 57% 54% 52% 48% UT Medical Branch at Galveston % 48% 44% 42% 38% UTHealth at Houston % 48% 45% 42% 38% UT Southwestern Medical Center % 54% 52% 49% 45% UT Dallas % 50% 47% 45% 43% UT Health Science Center San Antonio % 59% 57% 53% 52% UT San Antonio % 49% 47% 44% 43% UT Rio Grande Valley % 48% 47% 45% 41% UT Arlington % 60% 58% 55% 51% UT El Paso % 47% 45% 43% 40% University of Texas System Administration % 51% 47% 47% 44% UT Health Northeast at Tyler % 56% 56% 52% 49% UT Tyler % 54% 50% 45% 44% UT Permian Basin % 53% 53% 52% 47%

Average Classes Participated by System Location UT Permian Basin (89) UT Health Northeast at Tyler (186) UT Health Science Center San Antonio (645) UT Arlington (373) UT Austin (1230) UT Southwestern

15 Average Classes Participated by System Location UT Permian Basin (89) UT Health Northeast at Tyler (186) UT Health Science Center San Antonio (645) UT Arlington (373) UT Austin (1230) UT Southwestern Medical Center (851) University of Texas System Administration (210) UT Tyler (151) UT Dallas (781) UT San Antonio (515) UT Medical Branch at Galveston (1037) UT El Paso (238) UTHealth at Houston (1022) UT Rio Grande Valley (467) UT MD Anderson Cancer Center (2403) Classes Participated

Total Weight Loss by System Location UT MD Anderson Cancer Center (2403) UT Austin (1230) UTHealth at Houston (1022) UT Medical Branch at Galveston (1037) UT Southwestern Medical Center (851) UT

16 Total Weight Loss by System Location UT MD Anderson Cancer Center (2403) UT Austin (1230) UTHealth at Houston (1022) UT Medical Branch at Galveston (1037) UT Southwestern Medical Center (851) UT Dallas (781) UT Health Science Center San Antonio (645) UT San Antonio (515) UT Rio Grande Valley (467) UT Arlington (373) University of Texas System Administration (210) UT Health Northeast at Tyler (186) UT El Paso (238) UT Tyler (151) UT Permian Basin (89) 5,051 4,611 4,456 3,912 3,743 2,410 2,359 2,210 1,011 1, ,765 Pounds Lost through 10 weeks 10,104

17 47% of individuals lowered their diabetes risk due to their weight loss. The Federal Weight Loss Treatment Guidelines State: sustained weight loss of as little as 3% to 5% is likely to result in clinically meaningful reductions in levels of triglycerides, blood glucose, and glycated hemoglobin and in the risk of developing type 2 diabetes. As such we define clinically significant weight loss as 3% or more.

18 UT System Member Feedback: Net Promoter Score On a scale of 0 to 10, with 10 being extremely likely, how likely are you to recommend our company to a friend or colleague? 66% Top NPS Brands by Industry USAA - Insurance = 80% USAA - Banking = 78% Costco = 78% Apple - laptop = 76% Dillard s = 75% Nordstrom = 75% Apple - iphone = 70% Amazon = 69% Naturally Slim = 66% Southwest Airlines = 66% Apple - ipad = 65%

19 6 Month Data

20 Net Promoter Score C o m p a r i s o n o f N e t P r o m o t e r S c o r e NPS = 59.0 NPS = Promoters Detractors UT System (Pilot) N=660 UT System (Pilot Follow-up) UT System (Roll-out) N=1572

21 Net Promoter Score C o m p a r i s o n o f N e t P r o m o t e r S c o r e NPS = 59.0 NPS = 64.7 NPS = Promoters Detractors UT System (Pilot) N=660 UT System (Pilot Follow-up) UT System (Roll-out) N=232 N=1572

Weight Change Since Completion 6 m o n t h s a f t e r p a r t i c i p a

22 Weight Change Since Completion 6 m o n t h s a f t e r p a r t i c i p a t i o n i n t h e p r o g r a m Almost 75% have maintained or lost more. 6.5% I have lost more weight 19.5% 39.4% I have maintained my weight loss I have regained some of my initial weight loss 34.6% I have regained all my initial weight loss or gained additional weight Question: How has your weight changed since you completed the initial 10 weeks of the program? N=231

23 Continued to Follow NS Principles? 6 m o n t h s a f t e r p a r t i c i p a t i o n i n t h e p r o g r a m Almost 70% follow the principles most the time. 1.3% 7.3% 13.3% 21.5% Yes, always Most of the time Some of the time Not usually Never 56.7% Question: Have you continued to follow the Naturally Slim principles? N=233

Blood Pressure P a r t i c i p a n t s w

24 Blood Pressure P a r t i c i p a n t s w i t h h i g h b l o o d p r e s s u r e 55% report blood pressure has improved. 12.2% 8.1% 0.0% - Worsened 36.5% I'm not sure No change Improved Very much improved 43.2% Question: How has your high blood pressure changed compared to before starting the Naturally Slim program? N=74

Blood Sugar P a r t i c i p a n t s w i t h h i g h

25 Blood Sugar P a r t i c i p a n t s w i t h h i g h b l o o d s u g a r 76% report high blood sugar has improved. 24.1% 6.9% 0.0% - Worsened 17.2% I'm not sure No change Improved Very much improved 51.7% Question: How has your high blood sugar changed compared to before starting the Naturally Slim program? N=29

26 Indigestion P a r t i c i p a n t s w i t h i n d i g e s t i o n. Almost 82% have noticed improvement. 1.6% 34.4% 16.4% Worsened No change Improved Very much improved 47.5% Question: How has your indigestion changed compared to before starting the Naturally Slim program? N=61

3% Worsened No change Improved Very much improved 48.

27 Feeling Weight Out of Control 6 m o n t h s a f t e r p a r t i c i p a t i o n i n t h e p r o g r a m Over 90% now feel more control of their weight. 1.3% 7.3% 0.0% - I m not sure 43.3% Worsened No change Improved Very much improved 48.0% Question: How has your feeling that your weight is out of control changed compared to before starting the Naturally Slim program? N=150

6% I'm not sure Worsened No change Improved Very much improved 52.

28 Energy Level 6 m o n t h s a f t e r p a r t i c i p a t i o n i n t h e p r o g r a m Almost 65% now feel like they have more energy. 12.3% 0.9% 3.1% 31.6% I'm not sure Worsened No change Improved Very much improved 52.2% Question: How has your energy level changed compared to before starting the Naturally Slim program? N=228

Physical Activity 6 m o n t h s a f t e r p

a m 70% are getting more physical activity.

3% Slightly less No change Slightly more

2% Question: How has your level of physical

29 Physical Activity 6 m o n t h s a f t e r p a r t i c i p a t i o n i n t h e p r o g r a m 70% are getting more physical activity. 2.6% 0.0% - Quite a bit less 18.9% 26.3% Slightly less No change Slightly more Quite a bit more 52.2% Question: How has your level of physical activity changed compared to before starting the Naturally Slim program? N=228

30 Sugar Consumption 6 m o n t h s a f t e r p a r t i c i p a t i o n i n t h e p r o g r a m Over 80% report they are eating less sugar. 0.4% 1.7% 38.7% 17.4% Quite a bit more Slightly more No change Slightly less Quite a bit less 41.7% N=230

31 Satisfaction of Offering S a t i s f a c t i o n o f b e n e f i t o f e m p l o y m e n t w i t h t h e U T S y s t e m 93% are satisfied or very satisfied with being offered this as a benefit. 70.0% 23.0% 1.3% 3.0% 2.6% Very Dissatisfied Dissatisfied Neutral Satisfied Very Satisifed Question: Please rate your overall satisfaction with being offered the Naturally Slim program as a benefit of your employment with the University of Texas System. N=230

32 A simple "Thank You" to UT System for offering this program free to employees. My colleagues and I have greatly benefited and I hope that it lessens financial burdens to our healthcare systems where the money can go to those that truly need it. - UT System Participant

33 I am thankful every day that UT System offered the chance to participate in Naturally Slim. I have lost more than 70 pounds since my very first week of my initial participation in Foundations, and my life has transformed. I have more energy, I am able to handle stress better, and I generally feel better physically and emotionally. I feel confident in my ability to handle challenges (food or otherwise), which is a huge shift from before I went through it. - UT System Participant

34 I am very fortunate that my organization cares so much for their employees that they would offer us this program for free. This is one of the reasons that I love my job. - UT System Participant

35 I am very grateful for the opportunity of going through this program. It has helped me get where I needed to be. It has also been beneficial for my family as I have been sharing what I learned with them. - UT System Participant

36 I am very grateful for this program. I lost 60 pounds and am a different person. I was in the first group at UTMB so people ask me for advice all the time. I am a champion at UTMB for this program because IT WORKS!. - UT System Participant

37 I never would have participated in any weight loss program at my own expense. The fact that the program was available at zero cost was a deciding factor in my participation. In retrospect, it has clearly been very beneficial to both me personally and to the UT System insurance pool due to improvements in my general health. Smart move, UT. - UT System Participant

38 2017: -Enhancements -Strategy

39 Evaluation of a Voluntary Work Site Weight Loss Program on Hypertension Conrad P. Earnest, PhD Timothy S. Church, MPH, MD, PhD December Issue

40 Mobile App 2.0 Naturally Slim behavior change ecosystem now fully available on ios and Android devices (v2) NS available anywhere, anytime via ios ios and Android Full program, simple and convenient Goal tracking, social sharing, nudges, notifications, and behavioral tools

41 What about Health Coaches? Step Therapy Process to: 1) Maximize Adherence 2) Maximize Weight Loss stepped care weight loss interventions resulted in clinically meaningful weight loss that cost less to implement 1 elearning Monitoring Mobile App Social + Support Nudge (Text +Call) Coach 1 Jakicic JM, Tate DF, Lang W, Davis KK, Polzien K, Rickman AD, Erickson K, Neiberg RH, Finkelstein EA. Effect of a Stepped-Care Intervention Approach on Weight Loss in AdultsA Randomized Clinical Trial. JAMA.2012;307(24): doi: /jama

42 What s next in enhancements? Personalization & Tailoring (Q1 2017) Virtual Reality (discovery phase) Physical Activity for Maintenance (testing phase)

43 1. More Intuitive Experience More intuitive progress bar Persistent alert about missed classes Auto-extensions for missed classes More intuitive mobile experience Old Progress Bar New Progress Bar

44 2. New Features Personalized Videos (each week beginning at Week 2) Age Gender Risk Factors Yes-Mostly-No Responses Weight Loss More

45 2. New Features Video Library (Q1) Refer-a-friend (Q1)

46 3. Better Promotion of Unique NS Features Promotion of NS4You/Life Promotion of our Apps Promotion of NSTown

47 What s next for 2017? 3-5 year engagement strategy Year 3 Highlight additional benefits Segmentation Emphasize enhancements Pilot and Year 1 Good news Limited Time Only Year 2 Leverage Momentum Testimonial Success Incent Champions % engagement of at risk adult population

48 Q&A Feedback

49 GLOSSARY & CLARIFICATIONS

50 Analysis by Gender: Due to differences in muscle mass, starting weight and metabolism, on average men and women have small differences in weight loss When possible we provide the weight loss data separated by gender

51 What s about the dropouts? Drop-out does not necessarily equal failure Individuals drop out of weight loss programs for a variety of reasons We have observed that individuals who drop-out of Naturally Slim have similar weight loss at the last recorded weight to those that complete Naturally Slim

52 Pounds Lost The Dropouts Last Week Logging in Book of Business Week 4 Week 5 Week 6

53 6-Month Weight Loss Projection The projected 6 month weight loss is a calculated with a conservative estimate of average weight loss at 6 months based on our book of business.

54 Weight Loss at 6 Months Female Weight Loss Male Weight Loss 15.3 lbs lbs 14.1 Weeks Foundations Skill Building Weeks 1-10 NS4You Skill Reinforcement Weeks 11-24

55 Federal Treatment Guidelines: How much weight loss is significant weight loss? weight loss of as little as 3% to 5% is likely to result in clinically meaningful reductions in levels of triglycerides, blood glucose, and glycated hemoglobin and in the risk of developing type 2 diabetes Percentage of Body Weight Loss Metabolic Syndrome Reversal Rate (N=1613) 3-5% 41.2% 5-7% 49.8% 7-9% 59.2% 9% 70.0% Ernest, C.P., et al. Journal of Metabolic Syndrome & Related Disorders. September JAMA January 1, 2014 Volume 311, Number 1

56 Federal Treatment Guidelines: How much weight loss is clinically significant? The 2013 Federal Weight Loss Treatment Guidelines State: sustained weight loss of as little as 3% to 5% is likely to results in clinically meaningful reductions in levels of triglycerides, blood glucose, and glycated hemoglobin and in the risk of developing type 2 diabetes As such we define clinically significant weight loss as 3% or more

FREQUENTLY ASKED QUESTIONS

This document contains some of the most frequently asked questions about Nutrition Clubs. For more details, please refer to the Nutrition Club Rules in your Herbalife Member Pack (HMP) or on MyHerbalife.com.