A GLOBAL LEADER IN PERSONALIZED NUTRITION
Forward Looking Statements Management will make forward-looking statements during this presentation. Actual results could differ from those projected in such forward-looking statements, which involve a number of risks and uncertainties and should be considered in conjunction with the cautionary statements contained in our most recent filings with the SEC.
PERSONALIZES is a direct selling company that Creating the Healthiest Family on Earth 2017 25 th ANNIVERSARY STRONG and STABLE Balance Sheet Personalized PRODUCT STRATEGY 597K+ ACTIVE CUSTOMERS and 24 COUNTRIES
WORLDWIDE TRENDS INDICATE GREATER CONSUMER NEED INCREASING HEALTH AWARENESS INCREASING FITNESS & HEALTH FOCUS AGING POPULATION RISING HEALTHCARE COSTS GROWING OBESITY
ADVANTAGES HEALTH BEST-IN-CLASS PRODUCTS PROMOTE LONG-TERM BENEFITS BUSINESS ENTREPRENEURIAL OPPORTUNITIES FOR FINANCIAL FREEDOM
ADVANTAGES DIFFERENTIATED PRODUCT STRATEGY WORLD-CLASS ATHLETE SPONSORSHIPS HIGHEST QUALITY MARKETING PARTNERSHIPS EFFECTIVENESS BACKED BY SCIENCE TOP-RATED PRODUCTS AND COMPANY
DIFFERENTIATED PRODUCT STRATEGY NUTRITIONALS FOODS SKIN CARE % % % YTD Percent of Net Sales for FY18
EFFECTIVENESS BACKED BY SCIENCE Over 60 SCIENTISTS On Staff ON-SITE R&D Laboratories and Facilities PRODUCTS & INGREDIENTS Ongoing Internal and External Studies
EFFECTIVENESS BACKED BY SCIENCE 100% Clinical Levels of Nutrients 75% RDA Diet Typical Vitamin USANA 50% 25% 0% VITAMIN E VITAMIN D FOLIC ACID
Concentration Blood Vitamin C CONCENTRATION Health Benefit Enzyme / Function / Mechanism Cardiovascular Health Antioxidant Activity enos/bh 4 Lack of Energy Fatigue Carnitine and Catecholamine Synthesis Malnutrition RDA Collagen Synthesis Dose (mg/day) Ames, B. The Triage Theory
OF HUMAN NUTRITION 1. Essential vitamins & minerals 2. Antioxidant protection 3. Additional nutritional 4. Incelligence technology
Types of Inputs Toxins Stress Inputs Protein A CELLULAR SURVEILLANCE Nutrients Protein B TURN ON genes Nucleus Protein C Protein C ANTI-STRESS PROTEINS Anti-stress genes 11
The Difference MATERIALS FORMULAS MANUFACTURING INNOVATION MONITORING
HIGHEST QUALITY TWO-THIRDS OF ALL PRODUCTS manufactured In-house REGISTERED with numerous government agencies including the FDA VOLUNTARILY in compliance with more demanding drug-model GMPs
OFFICIAL HEALTH SUPPLEMENT SUPPLIER Over 1,000+ World-Class athletes TRUST THEIR PERFORMANCE TO
PARTNERSHIPS is the TRUSTED PARTNER and SPONSOR of The Dr. Oz Show
ESTABLISHED MARKET PRESENCE 20TH LARGEST DIRECT SELLING COMPANY IN THE WORLD OPERATIONS IN 24 COUNTRIES
GLOBAL PRESENCE GREATER CHINA AMERICAS & EUROPE NORTH ASIA SOUTHEAST ASIA TTM Q3-2018
REGIONAL SALES HISTORY ($000 s USD) $600,000 $500,000 Americas and Europe $400,000 Southeast Asia/Pacific Greater China North Asia $300,000 $200,000 $100,000 $0 FY12 FY17
CONTINUED MARKET EXPANSION Top 20 Direct Selling Markets 1. United States 6. Brazil 11. Taiwan 16. Canada 7. Mexico 12. Italy 17. Argentina 2. China 8. Malaysia 13. Thailand 18. Peru 3. Korea 9. France 14. Colombia 19. Philippines 4. Germany 5. Japan 10. United Kingdom 15. Russia 20. Australia Existing Markets Potential Markets Opened Q2 2018 Source: Direct Selling Association
DISTRIBUTION NETWORK Sold via independent 15% Full-Time Associates Majority work Part-Time 85% Pay based on Performance Part-Time DIRECT SELLING *Source: Direct Selling Association
A LONG-STANDING PROGRAM PREFERRED CUSTOMERS 313,000 as of Q3 2018 58% of total active customers in the United States are PREFFERED CUSTOMERS Q3 2018
COMPENSATION PLAN RETAIL SALES WEEKLY COMMISSIONS LIFETIME MATCHING BONUS ELITE BONUS INCENTIVE PROGRAMS LEADERSHIP BONUS
PERSONALIZATION DRIVES FUTURE GROWTH It s about YOU HEALTH Trusted nutritional supplements Personally-designed systems Diverse products that meet a great number of needs BUSINESS Flexible with time and need Wide range of tools and technology to build and sustain Incentives drive performance at multiple levels
PERSONALIZATION A FUTURE OF CUSTOMIZED SOLUTIONS Proprietary blend of 8 NUTRIENTS that activate your cells natural ability to protect and renew themselves cell signaling THREE PROVISIONAL PATENTS on file with the U.S. PTO
OPERATIONAL EFFICIENCY IN-HOUSE MANUFACTURING CENTRALIZED I.T. SCIENTIFIC EXPERTISE
OPERATIONAL EFFICIENCY & CONTROLS MANAGE cost structure Better CONTROL of inventory levels SCHEDULING control ensures effective resource turnaround LEVERAGE opportunities from investment in production facilities CENTRALIZED IT and common systems
STRATEGIC INITIATIVES CELAVIVE USANA s all-new skincare line staggered launches throughout FY18 RESEARCH & DEVELOPMENT Continued product and technology growth IT INVESTMENTS Continued investment in information technology, infrastructure and operations SOCIAL SHARING NEW EUROPEAN MARKETS Germany, Italy, Romania, Spain
COMPANY PERFORMANCE SALES & CUSTOMER GROWTH 600,000 $1,100 550,000 $1,000 500,000 $900 450,000 Total Customers Net Sales $ millions $800 400,000 $700 350,000 300,000 250,000 10-Year CAGR Net Sales Customers 9.5% 8.3% $600 $500 $400 200,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $300
STRONG OUTLOOK 2018 (In millions, except for per share data) FY2016 FY2017 TTM2018 Net Sales $1,006 $1,047 $1,163 Operating Margin 13.8% 12.7% 15.1% EPS - Diluted $3.99 $2.53 $3.55 Average Shares - Diluted 25.0 24.7 24.5 EBITDA $152 $149 $193
2018 Q3 FINANCIALS (In millions, except for per share data) Q3 2017 Q3 2018 Net Sales $262M $297M Operating Margin 12.0% 15.3% EPS - Diluted $0.97 $1.24 Average Shares - Diluted 24.6 25.0 EBITDA $36 $50
STRONG AND STABLE BALANCE SHEET FY2016 FY2017 As of Q3 2018/ TTM* Cash $176M $247M $240M Total Debt $0M $0M $0M Cap Ex* $33M $13M $13M Free Cash Flow* $104M $111M $154M Cash per Diluted Share $7.02 $10.00 $9.59 Share Repurchases* $65M $50M $26M Current and Potential Uses of Cash Vertical Integration Share Repurchase Investments in Technology New Product Development Investments in China Targeted Acquisitions International Expansion
OUTLOOK 2018 ANOTHER RECORD REVENUE YEAR LOW $1.185B HIGH $1.20B NET SALES $5.00 $5.15 EPS
The PERSONALIZED nutrition company