Medifast Inc · NYSE:MED
Medifast — Investor Presentation (January 2016)
22 slides from Medifast's investor presentation, Jan 13, 2016
Slide 1: Investor Presentation January 2016
¥Me di fast. Investor Presentation January 2016 INTEGRITYEFFICACYRESPONSIBILITYVISION
Slide 2: Safe Harbor Statement
YMedifast. Safe Harbor Statement Certain information included in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1938, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Slide 3: Medifast Today
Medifast. Medifast Today » Weight Management & Empowering people with the Healthy Living Products Company right opportunities to enjoy the » Founded in 1980 healthy life they deserve » Four Business Units to Reach Customers » Vertically Integrated Manufacturing » In-house Innovation and Food Science
Slide 4: Delivered on Strategic Plan
YMedifast. DELIVERED ON STRATEGIC PLAN Initiated Channel differentiation and exclusivity to enable independent strategies Strengthened Coachnetwork Enhanced Direct Response capabilities ‘Supported Weight Control Center Franchisees through ‘transition away from Company ‘owned locations Areas of Execu
Slide 5: Well Positioned for Future Growth
YMedisast. Well Positioned for Future Growth Large, addressable and growing market Differentiated sci ific approach to weight loss Highly efficacious product portfolio validated by customer referrals Diversified sales channels meeting +t customer needs Low cost vertically integrated business model w
Slide 6: Market Size
Medifast. Market Size Total Market Market Served Market » Diet Foods/Meals $1880 + Weight Loss Centers Low Calories Programs 1.5% » Medical Plans & Surgery + Books & Videos Medifast share of Served market Unserved Market: $476n see Drinks sewcar US ces fta oetete 5 Wore Manatee } Health Club Revenue
Slide 7: America Striving to Be Healthy
Medifast. America Striving to Be Healthy OBESITY as BMI 2014 Diagnosed Diabetes Rate 6.2% 2.9% (Bit sucecen apesioecomstcn Sogesnana) pebaoeessovenmnsjee=agesounes om) INTEGRITYEFFICACYRESPONSIBILITYVISION 7
Slide 8: Proven Products and Programs
YMedifast. Proven Products and Programs Since 1980 Over 1,000,000 Customers Over 20,000 Doctors have recommended Medifast products & programs INTEGRITYEFFICACYRESPONSIBILITYVISION a
Slide 9: Four Business Models to Reach Clients
Medifast. Four Business Models to Reach Clients Take Shape 12,000 Independent & " For Life. Health Coaches 1 v7 Y Medifast. Direct Response and oimecr, E-commerce “¥ Medifast 62 Franchise Locations WEIGHT CONTROL CENTERS. Y¥Medifast. Medical Provider & Wholesale Channel MEDICAL PROVIDERS Revenue by
Slide 10: Strategic Evolution
YMedifast. Strategic Evolution 2016 Beyond » Focus on MWCC Growth » MWCC Center Transition » Business Unit Focus = Corporate: + 50 Centers = Corporate: -87 Centers = Added channel expertise — Franchise: + 14 Centers + Sold: 41 Centers — Redefined brand, product + Closed: 4¢ Centers & price distincti
Slide 11: Unique Direct Selling Model
Unique Direct Selling Model » 12,000 independent health coaches » 76% of total revenue » Healthy lifestyle focus » Supporting regional and national events » 94% of orders go directly to clients, and 6% for coach’s own use » Coaches do not hold inventory » All commissions based on product sales » Att
Slide 12: Re-energized Coach Network Regional Events
Medifast Re-energized Coach Network 360 Regional events in 43 states with 8,000 attendees January 9, 2016! Con INTEGRITYEFFICACYRESPONSIBILITYVISION 2
Slide 13: Take Shape For Life — Strengthening Network For Growth
YMedifast Take Shape For Life — Strengthening Network For Growth » 2015 Initiatives Net Sales YY% ~ Focus on New Coach Sponsorship-Each One Reach One = Unified Simplified Training and Tools ~ Leadership Development—Alacrity Team 20% 20% ~ Price andProgram differentiation » Leading indicators show st
Slide 14: Medifast Direct
YMedifast. ACHIEVE INTEGRITYEFFICACYRESPONSIBILITYVISION Medifast Direct » Direct Response Business Model » 17% of Revenue » E-commerce Platform » Self-Directed Program » Driven by Advertising/Promotion » Transitioning to New Achieve Program » Continuity Options for the Customer and Incentives to St
Slide 15: Medifast Weight Control Center Franchises
YMedifast. Medifast Weight Control Center Franchises ry » Local Centers for 1-to-1 Counseling _ » Supervised Medifast Programs » Onsite Product Purchasing » 62 Franchise Centers in the U.S. » 6% of Total Revenue INTEGRITYEFFICACYRESPONSIBILITYVISION 18
Slide 16: 2016 Strategy
oO ee “YMedifast. DIRECT Continue to build direct response capabilities through new ecommerce technology platform and smart merchandi » Build on 2015 Momentum » Continue to enhance Coach experience through training and new systems » Introduce exclusive products that focus on key consumer health and
Slide 17: Financial Overview
FINANCIAL OVERVIEW INTEGRITYEFFICACYRESPONSIBILITYVIS/ON Medifast Confidential 7
Slide 18: 2010-2015 Revenue
Medifast. 2010-2015 Revenue $313 $324 $273 S285 $27210$275 $238, 2010 2011 2012 2013, 2018 FY 2015 Guidance INTEGRITYEFFICACYRESPONSIBILITYVISION 8
Slide 19: 2010-2015 EPS
YMedisast. 2010-2015 EPS 31.36 seas 3175 $1.7200$1.76 1.60 eee $1.23 2010 2011 2012 2013 2014 FY 2015 Guidance INTEGRITYEFFICACYRESPONSIBILITYVISION 9
Slide 20: Strong Cash & Balance Sheet
YMedifast. Strong Cash & Balance Sheet > $66.5M Cash & Investments > No Long-Term Debt > Low Working Capital Levels > Minimal CAPEX Requirements > Strong Free Cash Flows > Existing Stock Repurchase Program > Initiated First-Ever Quarterly Cash Dividend in Q4 2015 of $0.25 per share sce ao ee vest el
Slide 21: Well Positioned for Future Growth
YMedisast. Well Positioned for Future Growth Large, addressable and growing market Differentiated scientific approach to weight loss Highly efficacious product portfolio validated by customer referrals Diversified sales channels meeting distinct customer needs Low cost vertically integrated business
Slide 22: Thank You
YMedifast Thank You Y¥ Medifast = @ & | O aay RY ON YMedifast. /EFFICACYRE