Usana Health Sciences, Inc. · NYSE:USNA
Usana Health Sciences — Merger or Acquisition (December 2024)
18 slides from Usana Health Sciences's merger presentation, Dec 23, 2024
Slide 1: Hiya Health | Acquisition Overview
Hiya Health | Acquisition Overview NYSE: USNA December 2024
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including but not limited to statements that: Hiya is fast growing; the Hiya acquisition will be accret
Slide 3: USANA Management Team
DOUG HEKKING Chief Executive Officer JIM BROWN USANA Management Team WALTER NOOT BRENT NEIDIGJOSH FOUKAS Chief Financial Officer Chief Operating Officer Chief Commercial Officer Chief Legal Officer 3
Slide 4: Hiya Is a Compelling Strategic Fit
Expands USANA’s Business in the United States Accelerates USANA's Vision of Creating the Healthiest Family on Earth Increases Sales and Profitability Hiya's Direct-to-Consumer Model Adds a Diversified Layer of Growth Strengthens USANA's Financial Profile 1 2 3 4 5 Hiya Is a Compelling Strategic Fit
Slide 5: Hiya Accelerates USANA's Vision
Increases Active Customer Base Health-Focused Customer Base Immediate Impact In The Children’s Nutrition Market Children’s Wellness Category Creating the Healthiest Family on Earth Aligned Company Visions High-Quality, Premium Products Commitment to Innovative, Premium Nutrition and Wellness Product
Slide 6: The Hiya Management Team
ADAM GILLMAN CEO, Co-Founder DARREN LITT The Hiya Management Team Experienced, driven, disciplined, creative CORINNE CROCKETT JOE BARGER BONNIE HICK President, COO, Co-Founder Chief Marketing Officer Chief Revenue Officer Chief Financial Officer Successful entrepreneur Previously founded MarketerHir
Slide 7: Hiya is Reimagining Children's Health and Wellness
Hiya’s “Kidsperience” removes the traditional barriers to better nutrition by making healthy habits fun and interactive for kids. Made Specifically For Kids No Gummy Addittives 0g Added Sugar Great Taste Clean Ingredients FOUNDED in 2020 with the vision of bringing “better-for- you” to children’s he
Slide 8: Leading The Way in Children's Health and Wellness
of consumers that say it’s important to them to purchase clean-label products(1) 81% of consumers looking to reduce sugar intake or avoid it entirely(1) 72% of consumers that purchase better-for-you products(1) 65% Incumbent Brands Better-for-You Brands Food & Beverage Hygiene & Personal Care Childr
Slide 9: Diversified Marketing
Diversified Marketing Influencers Collaborations Podcasts Instagram Google Facebook Tik Tok Meta Advertorial Branded Ads Direct Mail Display Ads 9
Slide 10: The Hiya Subscription Model
REVENUE P R E D I C T A B L E Subscriptions provide a steady, predictable income stream, making it easier to manage cash flow and plan for growth RELATIONSHIPS S T R O N G C U S T O M E R The ongoing nature of subscriptions fosters stronger relationships with customers by making it easier for them t
Slide 11: Rapid Growth With Strong Financials
2022 2023 LTM 9/30/2024 Rapid Growth With Strong Financials Hiya’s Subscription Model Features Attractive Margins and Cash Flow Generations Customers Over 200K Net Income / Adjusted EBITDA 200k (1) (2) And Counting $103mm $68mm $22mm Net Sales (1) As of LTM 9/30/2024 (2) As of 9/30/2024 Million $22
Slide 12: Future Hiya Growth Initiatives
EXPAND GEOGRAPHY Provide the ultimate “Kidsperience” through new products and new brand collaborations. EXPAND DISTRIBUTION EXPAND PRODUCT PORTFOLIO Increase availability through other online marketplaces and select retail partners. Leverage USANA’s expertise to expand into new geographic markets. F
Slide 13: Long-Term Tailwinds In Children's Health & Wellness
(1) Global Pediatric Supplements Market 2029 Annual Sales, Euromonitor International as of November 2024 (2) Global Pediatric Supplements Market 2023-2029 Sales CAGR, Euromonitor International as of November 2024 Large Category Healthy Long-Term Trends Growing Faster than other VMS Distribution Chan
Slide 14: Estimated Pro Forma Revenue by Sales Channel
(1) LTM E nding 9/30/2024 Direct Sales USANA's core Direct Sales business 89% of Revenue (1) Direct-to-Consumer Hiya’s Direct-to-Consumer business 11% of Revenue (1) Online / Retail / Wholesale Prospective Opportunity Strengthens Revenue and Expands Customer Base Estimated Pro Forma Revenue by Sales
Slide 15: Transaction Overview
Transaction Overview Transaction enterprise value of $260mm1 Of the $260mm enterprise value, USANA paid the sellers $205mm cash at closing for a 78.8% ownership interest with the sellers rolling $55mm of equity representing a 21.2% ownership interest Put/Call features in the transaction struct
Slide 16: Strengthens USANA's Financial Profile
Strong Cash Generation Enables Continued Reinvestment in Organic Growth Initiatives Attractive Margins Strengthens USANA’s Financial Profile DTC Subscription Model Large and Growing Subscriber Base Reduced Effective Tax Rate Opportunity to Reduce USANA’s Effective Tax Rate with Improved Domestic Pro
Slide 17: Slide 17
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Unaudited) Last Twelve Months ($000's) 30-Sep-24 Net income S 19,416 Definitional Adjustments: Interest expense 143 Depreciation and amortization 38 Income tax expense 80 EBITDA before Adjustments 19,677 Adjustments to EBITDA: Transaction expenses and other non-recurring ite
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