Medifast Inc · NYSE:MED
Medifast — Investor Presentation (May 2021)
26 slides from Medifast's investor presentation, May 21, 2021
Slide 1: Investor Presentations May-July 2021
INVESTOR PRESENTATIONS May-July 2021 1
Slide 2: Safe Harbor Statement
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 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Refor
Slide 3: Agenda
AGENDA 1 Medifast At A Glance OPTAVIA Transition And 2 Performance Highlights 3 Summary Howards’ Video 3
Slide 4: Medifast At A Glance
MEDIFAST AT A GLANCE “¥ MEDIFAST. 3)& OPTAVIA.
Slide 5: Medifast at a glance: key facts
Leaders Company behind one of the fastest- in offering personal growing wellness communities1 Coaching service to people for whom diets 100% Products shipped have failed directly to clients Differentiated 52.5K direct-to-consumer sales model Coaches Nearly 90% of Coaches started as Clients Nearly 40
Slide 6: Our Competitive Advantage vs. Direct Selling Model
OUR COMPETITIVE ADVANTAGE VS. DIRECT SELLING MODEL OPTAVIA COACH MODEL DIRECT SELLING MODEL Client-centric Distributor-centric one price direct-to-consumer model; tiered price wholesale/retail model; about 90% of revenue from clients revenue mix leans to distributor entities Coaches Coach Distributo
Slide 7: Our Competitive Advantage vs. Diet Industry
OUR COMPETITIVE ADVANTAGE VS. DIET INDUSTRY OPTAVIA COACH MODEL DIET COMPANIES MODEL Holistic Wellness Weight Loss Heathy Weight Is A Catalyst To Greater Change Short-term Unsustainable Results Personalized Coach Support Limited Support Empathetic Coaching - The Coached Becomes The Coach Books, Bots
Slide 8: Large Addressable Market
Large Addressable Market Key audiences Total US addressable client pool 70% US pop. overweight or People looking to lose weight and willing to ~175M obese, growing 2% p.a. consider dieting People looking to lose ~155M 75% the most weight US adults who want to lose weight, open to People looking to l
Slide 9: Health & Wellness Is In Sharp Focus
Health & Wellness Is In Sharp Focus 63 % 96 % 74 % Of all U.S. adults have Of people making positive Of Americans who adopted new, positive health changes during the report that they health habits since the start pandemic report they plan need support to of the COVID-19 to continue embracing maintai
Slide 10: Key Investment Highlights
Key Investment Highlights One of the fastest growing health and wellness companies in the United States, with differentiated, clinically-proven programs and scientifically-developed products Large and growing market opportunity addressing a global need Scalable coach-based approach that drives both
Slide 11: Key Financial Metrics
Key Financial Metrics $1,097M $163M 46% 50% Q1 2021 TTM Q1 2021 TTM 2017–2020 2017–2020 Revenue Income from Revenue CAGR Income from Operations Operations CAGR 11
Slide 12: Attractive Financial Model
Attractive Financial Model ~75 ~0.9 % % $ 183 M $ 65 M Q1 2021 TTM Q1 2021 TTM CapEx Q1 2021 TTM Q1 2021 TTM SG&A is Variable as % of Operating Cash Flow Return to Revenue Shareholders1 1Represents sum of share repurchased and dividend paid over the last twelve months 12
Slide 13: Strong Free Cash Flow Facilitates Attractive Return of Capital to Shareholders
Strong Free Cash Flow Facilitates Attractive Return of Capital to Shareholders ($ M) CASH & INVESTMENT 2016 – Q1 2021 $212M $1 DEBT-FREE QUARTERLY DIVIDEND $146 $152 Dividends $1.42 Stock Repurchases Other Financing Activities • Financial capacity to handle any CapEx Cash & Investment Retained requi
Slide 14: Effective and Diverse Management Team
Effective and Diverse Management Team DAN CHARD JAMES MALONEY NICHOLAS JOHNSON TONY TYREE Chairman and Chief Executive Officer Chief Financial Officer President, Coach & Client Experience Chief Marketing Officer • 25+ years of marketing and • 25+ years of diverse management • 10+ years of sales, mar
Slide 15: OPTAVIA Transition and Performance Highlights
OPTAVIA TRANSITION AND PERFORMANCE HIGHLIGHTS 15
Slide 16: The OPTAVIA Model
The OPTAVIA Model Virtuous Circle for Growth People are More Successful in their Transformation Journey when they... Active Earning Coach BECOMES ACTIVATES 1• Have a Support System (Coach and Community) PROVEN Minimal NUTRITION marketing costs OPTAVIA COACHES TM gets you where you want to go.Enables
Slide 17: Key Strategic Focuses For Sustainable Long-Term Growth
Key Strategic Focuses For Sustainable Long-Term Growth Drive Product & Program Enhance Coach & Client Optimize Operational Innovation Experience Effectiveness Expand lifetime value through Develop culture that drives Drive scale through enhanced new and compelling products attraction, engagement and
Slide 18: Strong and Sustainable Customer Loyalty
Strong and Sustainable Customer Loyalty ~30x % % Client spend on Customer Repurchase OPTAVIA customers OPTAVIA Rates** who have bought products vs CPG products four or benchmarks* more times** *Nielsen panel data analysis benchmarking OPTAVIA against leading H&W brands 18 ** Nielsen analysis of Clie
Slide 19: Growing Active Earning Coach Community
Growing Active Earning Coach Community Active Earning Coaches Q4 2016 Q1 2021 Alaska Hawaii Alaska Hawaii Hong Kong Singapore 19
Slide 20: A Resilient Business Model
• Efficient direct-to-consumer business • Consistent patterns create strong forward visibility • High percentage of clients on continuity shipments (~90% of revenue) • High lifetime value A Resilient • Variable cost model Business Model 20
Slide 21: OPTAVIA Driving Long-Term Sustainable Growth
OPTAVIA Driving Long-Term Sustainable Growth ($ Millions, Except Per Share Data) +31% New Business Model $935 15% Revenue Growth +43% $714 +66% $501 +10% +92% $341 Revenue $302 +47% $275 +48% +73% +32% $178 +121% 15% Operating $27 $40 $69 $91 $134 $24 $53 Operating Margin Income Long-term 2016 2017
Slide 22: Active Earning Coaches and Productivity Will Support Sustained Growth
Active Earning Coaches and Productivity Will Support Sustained Growth New Business Model +250% 52,500 2017-Q1 2021 44,200 31,800 24,100 Number of Coaches 15,000 12,500 6,454 5,756 5,932 Revenue 5,229 4,158 4,562 Per Coach 2016 2017 2018 2019 2020 Q1 2021 22
Slide 23: Attractive Financial Model
Attractive Financial Model Variable Cost 1 2016 FISCAL 1 2017 FISCAL FISCAL 2018 FISCAL 2019 FISCAL 2020 2 % of Revenue Variable Operating 58.8% 60.1% 64.0% 66.1% 67.6% Expenses Fixed Operating 31.4% 26.8% 22.2% 21.2% 18.0% Expenses $1.2M $3.0M $26.9M $134.2M Revenue Per Fixed Headcount 2016 (1) Rev
Slide 24: Summary
SUMMARY sy “MEDIFAST. 5,.€ OPTAVIA.
Slide 25: Key Investment Highlights
Key Investment Highlights One of the fastest growing health and wellness companies in the United States, with differentiated, clinically-proven programs and scientifically-developed products Large and growing market opportunity addressing a global need Scalable coach-based approach that drives both
Slide 26: Thank You
Thank You “MEDIFAST. Me OPTAVIA.