Slide 1: Investor Presentation
*Y Medifast. Proven, Healthy Weight Loss... Investor Presentation Mike MacDonald, Chairman & Chief Executive Officer Meg Sheetz, President & Chief Operating Officer August, 2013
Slide 2: Safe Harbor Statement
Medifast. got Harbor Statement Certain information included in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigatio
Slide 3: Products and Programs Recommended by Over 20,000 Doctors Since 1980
“Y Medifast. Medifast Products and Programs Have Been Recommended by over 20,000 Doctors Since 1980 and Used by Over a Million Customers Since 1980 ©060986 FAST. SAFE SIMPLE LONG TERM PORTABLE Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980. 2
Slide 4: Mission: Create Health, Hope, and Happiness
YMedifast. To create health, hope, and happiness through clinically proven weight-management products, programs, and support To combat the obesity epidemic and improve health in two ways: + Through clinically proven weight-management products & programs + Through multiple, innovative support channel
Slide 5: “‘Y Medifast.
“‘Y Medifast. + Rapidly growing addressable market and significant market penetration opportunities * Vertically integrated model producing industry leading gross margins * Strong historical track record of growth in sales, profits and cash flows * Consistent profitability and return on invested cap
Slide 6: Medifast 5&1 Plan, Transition, & Maintenance
“‘Y Medifast. Medifast 5&1 Plan, Transition, & Maintenance Weight Loss Phase Transition Phase Maintenance Phase Our & 1 Plan features Medifast’s When you are near or at your goal weight, When youve completed the transition phase, rutritionally balanced, fortified meal well help you increase your dai
Slide 7: Clinically Proven and Scientifically Based
“Y Medifast. Clinically Proven and Scientifically Based \ We're different. Here's why. l\ Ih You can choose from among hundreds of weight-loss >94 plans, diets, programs, pills, and gadgets—all claiming to be different, though many are remarkably similar. I's the science and support that sets Medifa
Slide 8: Take Shape For Life / Medical Providers
YY Medif: ‘ast. Take Shape For Life. MEDICAL PROVIDERS ruseo sy Y Medifast. i -QNE J ‘YMedifast J YMedifast. Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980. 2
Slide 9: Manufacturing and Distribution
“‘Y Medifast. MANUFACTURING AND DISTRIBUTION + Company-owned state-of-the-art manufacturing and distribution facilities + Help support industry leading gross margins * Capacity in place to drive aggressive growth Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 198
Slide 10: Strong, Consistent Financial Performance: Revenue
YMedifast. Strong, Consistent Financial Performance $257.6 ] $356.7 | $208.2 | Or 7 | siaeo S153 7] 1 $85.0 | ao 2007 009 2010 2011 2012 FirstHalf First Half 2012 2013 Revenue Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980. A
Slide 11: Strong, Consistent Financial Performance: EPS
YMedifast. Strong, Consistent Financial Performance $1.57 5131 $1.16 $0.93 eo $0.76 $0.30 $0.19 ae = 2010 2011 2012 : 2012" my First Half First Half . 20122013 ‘am2 £98 excuing 0 oFye tomer sodedh EPS the second quater and slestax ecoual nine fouth uarer Proven, healthy weight loss from the brand re
Slide 12: Total Market $65B, Served Market $18B
“Y Medifast. Total Market — $65B Served Market — $18B / Unserved Weight Loss _~ 4 Served f $47B Weight Loss _—-$18B -Diet Soft Drinks a Artificial Sweeteners me -Health Club Revenues \ ‘Source: US. Census Data, CDC Data, IIS World, MarketData Enterprises 2 Proven, healthy weight loss from the brand
Slide 13: The Obesity Market
“Y Medifast. U.S. Population 314M 15 or Older 251M Overweight! Obese 173M Dieting 93M Source: US. Census Data, CDC Data, IIS. ‘World, MaketD ata Enterprises The Obesity Market TO) Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980. cy
Slide 14: Current Medifast National Market Coverage
YMedifast. Current Medifast National Market Coverage Significant Growth Opportunity to Cover “White Space” Mecifast Sales Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980. 4
Slide 15: International Coverage Opportunity
“YMedifast. International Coverage Opportunity 1.6B Overweight Globally and Expected to Grow 40% in Next 10 Years Latin America Through Medi ealthy weight loss from the brand recommended by over 20,000 doctors since 1980. 16
Slide 16: Take Shape For Life
“Y¥ Medifast. QO Take Shape rusicosy VMedifast.
Slide 17: Direct Selling Overview
“¥Medifast. Take Shape ructeoey Y Medifast. Direct Selling Overview *US direct selling accounts for $30B — 24% or $7B comes from weight-loss products *15.6M people engaged in direct sales in the US °U.S. is the #1 direct selling market in the world 7 Ithy weight oss from the brand recommended by ove
Slide 18: Free Personal Health Coach & Mentor to Guide Clients
“Y Medifast. Take Shape ruceo sy Y Medifast. Free Personal Health Coach & Mentor to Guide Clients Through Their Weight Loss and Weight Management Journey + Health Coaches are required to take competency exam. « Health Coaches do not need to purchase product themselves to receive commission. « Health
Slide 19: Direct Sales Revenues
“‘Y Medifast. Take Shape For liter ruceoey Y Medifast. Direct Sales Revenues {in $ millions) $70 ssoq Sole $60 $95.7 $55.6 953.0 $81.8 $49.3 $50 $06.8 $46.4 342.0 “37 gars 433 $40 $30 $20 $10 $0 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1013 2013 Proven, healthy weight loss from the bra
Slide 20: Coverage Expansion
“YMedifast. O Take Shape ruceoey ¥ Medifast. Coverage Expansion + Expand coverage to new markets to cover “white space” + Leverage Success from Home magazine & Dr A’s book tour SUCCESSkome HABITS DISCOVER OPTIMAL HEALTH ¢ of HEALTH healthy weight loss from the bra
Slide 21: Improve Field Effectiveness
“Y Medifast. Take Shape ruceo sy Y Medifast. Improve Field Effectiveness * Create development plan with simplified standards & processes * Enhance field communications & coach tools
Slide 22: Medifast Direct
“Y Medifast. ‘Y Medifast. DIRECT “¥Medifast.
Slide 23: Direct: Sales Volume by Designated Market Area
"Wien Mestre DIRECT i See $20 2010 3030 sao 1011 2011 2041 4011 1012 2012 3032 4012 1033 2032 * Only 10% of 210 DMAs* over $1M in annual sales + 66% of total volume is done by just 10% of DMA’s + 50% of 210 DMA’s under $100k in annual volume *September 2011 - August 2012 volume DMA =Designated Marke
Slide 24: Optimize Marketing & Promotional Spends to Improve Profit
Medifast. “*Y Medifast. DIRECT Optimize Marketing & Promotional Spends to Improve Profit ¢ Drive multi-media customer acquisition strategy (website/call center) * Continue to evaluate discounts & promotional offers + Ensure effective execution of capital & high resource projects FREE Shipping | FREE
Slide 25: Website Performance
“Y Medifast. DIRECT re _| aide > a Website Performance Critical Success Factors + Mobile friendly + Site load speed improved + Simplified design + Improved navigation + SEO benefits + Optimized content + Multiple versions for new & returning visitors Proven, healthy weight loss from the brand recomm
Slide 26: Weight Control Centers
“YMedifast. “¥ Med i fast WEIGHT CONTROL CENTERS Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980.
Slide 27: Weight Loss Management Partnership with a Team of Professionals
“¥Medifast. “¥ Med ifast Weight Loss Management Partnership with a Team of Professionals Dedicated to Member Success + Brick-and-mortar centers offering supervised & structured programs * Currently operating 86 company-owned & 36 franchise-owned centers “YMedifast ‘WEIGHT CONTROL CENTERSs supported
Slide 28: Weight Control Centers: Clinic Revenues
“‘YMedifast. “¥ Med i fi ast WEIGHT CONTROL CENTERS S16 15.4 jinic Revenues 442 ay 22 sia {in $ millions) 134 B3 $12 10.6 10.7 97 $10 8.2 $8 57 67 68 $6 $4 $2 $0 2Q10 3Q10 4Q10 1011 2Q11 3Q11 4Q11 1Q12 2Q12 3012 4Q12 1013 2013 Proven, healthy weight loss from the brand recommended by over 20,000 doc
Slide 29: Strengthening Corporate Center Operations and Member Practices
“Y Medifast. ‘YY Medifast WEIGHT CONTROL CENTERSe Focus on Strengthening Overall Corporate Center Operational, Member Acquisition, and Member Counseling Practices * Q1 loss led to significant employee restructure in April, 2012 + Removed many program & food discounts « Heightened focus on operationa
Slide 30: Expand Franchise Footprint
YMedifast. “¥ Medi fast WEIGHT CONTROL CENTERSe Expand Franchise Footprint * Focus on current franchisee expansion « International presence through Medix strategic partnership * Medifast to provide focused resources and support
Slide 31: Medical Providers
“Y Medifast. “‘Y Medifast. MEDICAL PROVIDERS
Slide 32: Customer Medical Providers
Vtetiaat. a ¥ Medifast. CUSTOMER MEDICAL PROVIDERS Clinics & Medi Spas Individual Practices Proven, healthy weight loss from the brand recommended by over 20,000 doctors since 1980. 2
Slide 33: Execution of Strategic Plans Will Drive Aggressive Growth
Viedifast. + Execution of strategic planks and driving forces for change will drive aggressive growth Q + Infrastructure & process discipline lead to margin expansion opportunities - New talent and employee development = increased earnings and cash flow generation Prove wmended by over 20,000 doctor