Youngevity International — Investor Presentation (September 2018)
53 slides from Youngevity International's investor presentation, Sep 21, 2018
Slide 1: Investor Presentation September 2018
= VGY| Ronee meereterat ee Preis Investor Presentation September 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This Presentatior includes fowarctlooking statementsithin the megring ofthe Prvate Secuities Litigation Reform Act of1995, amended.n YYoungenys current expectations and projections about future evens In some cases, forwardlocking statements can be identiied by temtinclogy
Slide 3: Annual revenue growth; two high-growth industries
‘Annual revenue grow Operates in two sigh ‘Selling and the Coffee |
Slide 4: We are Youngevity. We are different.
We are Youngevity. We are different. And we are proud of it. Estabhsthed over 20 years ago, Younger phMlozophves are bated on the prntipis eo oe! Wallach, wha has dechcated ta 40-year caver to anewetng one eruéal question: How can we Ive younger longer? ‘Toshy, we continue to answer Dr. Wallach’ alf
Slide 5: Slide 5
Slide 6: YGYI Key Metrics
YGYI Key Metrics NASDAQ ; Shares Outstanding? 256M Market Caprtaization®* $770 Average Dilly Volume! 20625 Debt* $1503M ‘sot onso/z08 YI ‘Share Piice! Float Enterphise Val 52 Week Range? Fiscal 2017 Revenue $357 690M $9203M $397 $6.75 165.7
Slide 7: YGYI Q2 YTD Highlights
YGYI Q2 YTD Highlights 8.7% 9.6% Q2 YTD 2018 Revenue increased to Gross profit ncreased to $87.2M for Q2 YTD 2018 $50.4 mafion for Q2 YTD 2018 Over 31.5% $3.72M Q2 YTD 2017 Coffee segment revenue Adjusted EBITDA for Q2 increased to $151M for YTD 2018" vs. 49M) Q2 Q2 YTD 2018 YTD 2017"
Slide 8: NASDAQ
Slide 9: FTSE Russell
FTSE Russell FTSE Russell Added June 2018 Membersp the Russel Mirecap index. which ‘emis lace for one years expected tolead to utomalicineuborin growth andvalve syle indents FISE Russel leading global index prover, dot membership fos Ruse US Indexes pnt by objective, marke-captalzaten raiengs and si
Slide 10: Direct Selling Segment
4 ¥ YOUNGEVITY. Direct Selling Segment
Slide 11: Youngevity is Ahead of The Trend
Youngevity is Ahead of The Trend Strong presencé in large, scalable market segments. ANTI-AGING SKIN CARE BRAIN HEALTH WEIGHT Loss trvtonshumin, chcogehi, Aateagog serum timate serony ‘utrmene: Osu conta ogee Pe sesh Say Veto Paks 2015: $1403 bn 2015: $121 bn 2015: $23 bn 2015: $158 bn Sources: Satt
Slide 12: Youngevity Enters the $7.7B Cannabis Market with Hemp FX
Youngevity Enters the $7.7B Cannabis Market with Hemp FX™ Product Line we HEMP Pe YY, ne.(YGYI: introduced ther new Hemp FX product ine at th August 2018 Conv San Diego, CA r Relne™ features the same hemp-derwved cannataneid found in Soothe”, combined withthe {relating botarvalschamosne lavender, va
Slide 13: Direct Selling US Population
Direct Selling US Population 18.6 million* direct selling representatives 2017 Business Activity of the nation's 18.6 People Involved by Age: million* direct selling representatives, ect seling prov 4M 130M = 34% sstiate vith direct sting co s
Slide 14: Worldwide Direct Selling - Top Verticals
Worldwide Direct Selling - Top Verticals Western Europe: $29.5 Billion North America: Billion
Slide 15: Global Direct Selling Locations & Growth Strategy
Global Direct Sefling Locations & Growth Strategy oni ome Fhe 3 HEADQUARTERS, ® Cupoaagana _covomein’ INDONESIA sincarone_—} @ 2 _ © © a
Slide 16: International
¥ YOUNGEVITY. INTERNATIONAL International expansion now well underway with corporate infrastructure, product approvals, and newly acquired distiibutors and customers now diving revenue. More than 2,000 SKUs H NuthtionalSupplements — & Gourmet Coffee 1 Business Lending @ weight Management M1 Packaged
Slide 17: Low Cost of Entry for Distributors
Low Cost of Entry for Distributors Business Business. Business. ‘Startup Kit Essentials kit Builder Kit Distributors Receive $25 $199.95 $499.99 ‘A.Wilcome Starter Pack yf Areplcated website Upto 30% of etal pricing on you favorite ems Great products to try WA WA An experienced Business Coach Vv. v
Slide 18: Best In Class Tech Stack & Data Warehouse
Best In Class Tech Stack & Data Warehouse* E-Commerce Powered by Magento, an Adobe Company, Magentis, the most popular global e-commerce platform today vith more than $155 billion in gross merchandise sales annvally, Open source and supported by more than 150,000 Developers world-wide, Magento provi
Slide 19: Technology Stack
Technology Stack WO, A APacHE so vannisn GB ic = redis umd c —— ae «=> =
Slide 20: YoungevityGO2
WA NZ YOUNGEVITYGO2 Distributor app making sales easy for direct sellers.* =a | ones | ccampansthatcme | | CHsromer retention | | our procuct pea re te se bunoutor HT | crestwe & Engaging inion orselt DIGITAL DIGITAL
Slide 21: Internal App Powered by Tableau
Internal App Powered by ah tableau Internal app features complete Tableau reporting integration, giving YGYI management instant access and reporting on sales worldwide. Everything connected with the best in class technology stack and data warehouse.
Slide 22: Multiple Product Verticals
Multiple Product Verticals Memory Keeping Anti-Aging li \@ | Spa & Beauty
Slide 23: Key Revenue Drivers
Key Revenue Diivers - 90 for Life -
Slide 24: Proprietary Web-based Acquisitions Portal
Proptietary Web-based Acquisitions Portal Youngemry has. dstinet woy/ acquires companies and {thew ntellectual property though a web-based portal Acqition Strategy allows for simote antording of products 6 ets. Ceneally structured se trgeting intel Property Inventory & Databases af consume Sstnoutor
Slide 25: Acquisition Portfolio
Acquisition Portfolio heritage makers my nature? Yayhenle direct © Legacy — ayo Mll © Beviavita Bsozo QF RESTART _s01/GNo_ Your ife << beyondorganic $3 for Tels Only UC@LIFE © beauticontrol
Slide 26: CLR Roasters Coffee Segment
CLR Roasters Coffee Segment
Slide 27: A Large and Growing Coffee Market
A Large and Growing Coffee Market The retail value of the US. coffee market is estimated to be $48 Billion dollars. Specialty coffee compiises approximately 55% of US Market. 35% of 18-24 year olds said they diink specialty coffee daily. Millenritals consume 44% of the coffee in US, 59% of coffee cu
Slide 28: Creating Coffee Revenue Through...
Creating Coffee Revenue Through... Green Coffee Private-Label Sales of Owned Brands Distiibution Roasting Cote ta Re ene 0 Hout, et & Industiies Served
Slide 29: Coffee plantation and dry-processing facility in Matagalpa, Nicaragua
Coffee plantation and state-of-the-art dry-processing facility in Matagalpa, Nicaragua Sustainable farming methods used to increase elds and achieve cost saving: Vertically Integrated Field to Cup % Historically known for high quality coffee production % 1,000 acr coffee beans * Gourmet coffees almo
Slide 30: Manufacturing
Manufacturing [ef-)-r) iit Roasting 4.8K 10M Ibs/shitt Ibs/shitt spaery per 8h
Slide 31: Our Certifications
Our Certifications ‘Our process has earned us the following certifications that demonstrate our commitment and dedication to the craft of providing the highest quality coffee products using the highest standards available. =YGY!
Slide 32: Shifting Demand Demographics
Shifting Demand Demographics
Slide 33: CaS Gar
CaS Gar cat ie Peeave CATE GAL rs a AE ify atk AU ni) celta Ta fail
Slide 34: Official Cafecito of the Miami Marlins
Official Cafecito of the Miami Marlins Café La Rica coffee cart in the main je of the ballpar \ding national hrough Wisiting fans. COFFEE == & Bi 2017 attendance Whing, showcase 90-second promotional spots on the in-park television network tional dignage, son packaging
Slide 35: CLR Roasters Lands an Estimated $250 Million Deal
CLR Roasters Lands an Estimated $250 Million Deal 9 age YG hp $
Slide 36: Near Term Objectives
Slide 37: Near-Term Objectives: Vertically integrate the Hemp Based Non-THC CBD Business
Near-Term Objectives: Vertically integrate the Hemp Based Non-THC CBD BuSiness GY
Slide 38: Near-Term Objectives: Secure non-dilutive asset based financing
Near-Term Objectives: Secure non-dilutive asset based financing for expanding capacity of coffee businesses Leveraging Inventory Assets to ereate non dilutive finanéing Finanéing for working capital and expansion of processing capabilities to prepare for future expansion. Funds will be inplace to he
Slide 39: Near-Term Objectives: Complete registration for Mainland China
Registration Commenced Mainland China Near-Term Objectives: Complete registration for core product line to launch tn Mainland China Youngevity has begun the registration process of its core nutrition line so that it Will bé in position to launch, these products in Mainland China in 2019. The larger
Slide 40: Corporate Leadership
Corporate Leadership Best in class management team with a track record of success In private and public companies. Steve Wallach exo 40
Slide 41: Brand Evangelists
Brand Evangelists Our products are endorsed and used by professional athletes and “influencers with a global reach Maiilu Henner Mike Glenn Gene Nelson Delisha Jones
Slide 42: Dedicated to Social Responsibility
Dedicated to Soéial Responsibility ‘uty sosthmable uti enable grin patorm 2 out ron ta change the Work. One ay you can tars by smplypurchang dedated Be the Change products Ou parent company (oungeety ieratonasnncans sr carats ofan tay ways Fk oungety han ea WO prc ots rae te bunt ‘Youngeiniyt Be The
Slide 43: Income Statement Highlights
Income Statement Highlights $/o00's 2.2018 QI 2018 FY 2017 FY 2016 Gross Revenue ross Revenue 165696 162667 Gross Proht 25382 2502 95565 98137 Operating Expenses 2472924988 01447 95622 Operating income co 24 (B82) 2515 Interest Expense isso mz Ses 4a7H Net income (Loss) (a4) (@308) (67) 88) Adjusted
Slide 44: Balance Sheet Highlights
Balance Sheet Highlights ‘$/000's ‘Cash and Equivalents Net Receivables Other Assets Total Current Assets Goodall and Intangible Assets Other Assets Total Assets AP & Accrual Short/Current Long Terr Debt Other Current Labties Total Current Liabilities Long Term Debt Total Stockholder Equity 22018 Q1
Slide 45: Key Takeaway
Key Takeaway: @ iosdoa sted 06/2017 @ Aeied to Russell Merocap index (06/2018) © sons the Top 00 Global Direct Seting Compares © cverates in ugh arowrh ndusties- Direct Sefing and Cotfee © comristued vo sggressve expanison through orgatie growth, mergers and acqusstvons @ incernsvona sales grovieng
Slide 46: Appendix
Slide 47: Appendix (Page 6)
Appendix (Page 6) Market Capitalization » closing stock pice * common shares outstanding (21561217), To illustrate, closing peice on 8/3118 was ‘$357, 20 matket cap was $77.0m, Debt = short term Borravinngs ($293m) + Current Portion of Long Term Debt ($306m) + Current Portion of Capital Lease Obliga
Slide 48: Appendix (Page 7)
Appendix (Page 7)
Slide 49: Youngevity.com Shopping Experience
Youngevity.com Shopping Experience SEER ware EXTERNAL INTEGRATIONS, ‘Azure 108
Slide 50: Income Statement Highlights
Income Statement Highlights $/000's Q22018 Q12018 FY 2017 FY20I6 FY2015 FY2014 FY2013 FY2012 FY 2011 ross Revenue 46255 42996 165696 162657 156597 154045 8562775004 40.670 Gross Profit 25382 2501295565 9S? 92869 76525 SISO 45825 26,708 Operating Expenses 249 2698810) ose 8756372956 44106 176250 Oper
Slide 51: Reconciliation of Non-GAAP Measure
ReconGiliation of Non-GAAP Measure Adjusted EBITDA to Net (Loss) Income {in thousands) ‘s/o00's Net floss} income 2308 Interest. net Ta Income tne (bene) co cso Depreciation ca) 2 Amortization 6s 827 EBITDA 2380 os serene asa CChangéin the fair value of dorwatives 2: ss Impairment of goodvll ° ° Ext
Slide 52: Balance Sheet Highlights
Balance Sheet Highlights S/o00's Cash and Equivalents Net Receivables Inventory Other Assets ‘Total Current Assets: Goodall and intangible Assets Other Assets Total Assets Short/Current Long Terr Debt Other Current Labiities ‘Total Current Gabiivies Long Term Debt Total Stockholder Equity Q22018 Q12
Slide 53: Youngevity International, Inc. investors contact
Youngewty international, inc. NASDAQ: YGYI (8d “investors@ygy.com
Youngevity International — Investor Presentation (September 2018) on 6ix