Medifast Inc · NYSE:MED
Medifast — Investor Presentation (March 2022)
26 slides from Medifast's investor presentation, Mar 4, 2022
Slide 1: Investor Presentations Q1 2022
INVESTOR PRESENTATIONS Q1 2022 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 "YMEDIFAST. 36 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 59.8K direct-to-consumer sales model Active Earning Coaches About 90% of Coaches started as Cli
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 % To combat previous failures, Of all U.S. adults have Of people making positive adopted new, positive health habits since the start of the COVID-19 health changes during the pandemic report they plan to continue embracing 66 % pandemic healthy habits. of U
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 $1,526M $216M 50% 53% 2021 2021 2017–2021 2017–2021 Revenue Income from Revenue CAGR Income from Operations Operations CAGR 11
Slide 12: Attractive Financial Model
Attractive Financial Model ~77 ~2.2 % % $ 94 M $ 120 M 2021 2021 2021 2021 SG&A is Variable CapEx as % of Operating Cash Flow Return to Revenue Stockholders 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 Stockholders
Strong Free Cash Flow Facilitates Attractive Return of Capital to Stockholders ($ M) CASH & INVESTMENT 2016 – 2021 $110M DEBT-FREE QUARTERLY DIVIDEND $1.42 • Financial capacity to handle any CapEx requirements • Strong free cash flow generation Stock Repurchases + Dividends • Consistent & active sto
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 • 15+ 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 ~36x ~77 % ~49 % Client spend on Customer Repurchase OPTAVIA customers OPTAVIA Rates** have bought products products vs CPG four or more times** benchmarks* *Nielsen panel data analysis benchmarking OPTAVIA against leading H&W brands 18 ** Nielsen analysis of
Slide 19: Growing Active Earning Coach Community
Active Earning Coaches Growing Active Earning Coach Community Fiscal Q4 2016 Fiscal Q4 2021 Alaska Hawaii Alaska Hawaii Hong Kong Singapore
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) New Business Model +63% 15% $1,526 Revenue Growth +31% $935 +43% +66% $714 Revenue +10% $501 $275 +48% $302 +73% +32% +47% +61% 15% Operating $27 $40 $134 $216 Operating Margin $69 $91 Income Long-term 2016 2017 2018 20
Slide 22: Active Earning Coaches and Productivity Will Support Sustained Growth
Active Earning Coaches and Productivity Will Support Sustained Growth New Business Model ~300% 2017-Q4 2021 59,800 44,200 31,800 24,100 Number of Coaches 15,000 12,500 5,756 5,932 6,321 Revenue 5,229 4,158 4,562 Per Coach 2016 2017 2018 2019 2020 Q4 2021 22
Slide 23: Attractive Financial Model
Attractive Financial Model Volume Driven Cost 1 1 FISCAL 2016 FISCAL 2017 FISCAL 2018 FISCAL 2019 FISCAL 20202 FISCAL 2021 % of Revenue Volume Driven 63.7% 64.9% 70.0% 71.5% 72.2% 75.1% Operating Expenses Non-Volume Driven 26.6% 22.1% 16.3% 15.8% 13.4% 10.7% Operating Expenses $1.2M $4.2M $26.9M / 9
Slide 24: Summary
SUMMARY Ҥ MEDIFAST. 3) OPTAVIA. Zaye
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 -F MEDIFAST 3+ opTA