Nature's Sunshine Products, Inc. · NASDAQ:NATR
Nature's Sunshine Products — Investor Presentation (September 2020)
32 slides from Nature's Sunshine Products's investor presentation, Sep 10, 2020
Slide 1: Connect With Nature – Investor Presentation September 2020
CONNECT WITH NATURE Investor Presentation | September 2020
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-loo
Slide 3: Nature holds the answers, we bottle them
Nature holds the answers, we bottle them. Our mission is to make the healing power of nature accessible to everyone. NASDAQ: NATR | ©2020 Nature's Sunshine Products, Inc. All rights reserved. 3
Slide 4: Nature's Sunshine
NATURE’S SUNSHINE Nature’s Sunshine changed the world ~50 years ago as the first company to put herbs into easy-to-take capsules We sell 600+ products across seven different categories FEEL THE around the world Sophisticated in-house R&D capabilities via owned POWER… Hughes Center for Research & Inn
Slide 5: We Are Addressing a Consumer That Has Changed
WE ARE ADDRESSING A CONSUMER THAT HAS CHANGED The consumer is in control Higher Engagement Think About Their Health Daily 64% 62% 54% Brands are treated Experience as Boomers Gen X Millennials as celebrities important as product Always Looking For Ways to be Better 68% 59% 48% Digital first Engaging
Slide 6: Our Response to Today's Consumer Defines Our Vision
OUR RESPONSE TO TODAY’S CONSUMER DEFINES OUR VISION How? Offer specialty products, customization Vision and personal service SHARE THE HEALING Create lifestyle branding and storytelling POWER OF NATURE, WITH EVERYONE. Leverage websites, e-commerce and digital marketing to drive customer loyalty Deli
Slide 7: We Are Attacking a Large & Steadily Growing Market
WE ARE ATTACKING A LARGE & STEADILY GROWING MARKET U.S. Supplement Industry Sales¹ U.S. Supplements by Category¹ 6% $ in Millions $62.4 Minerals $59.5 $57.8 30% 12% Vitamins $54.5 Meal Supplements $48.7 $46.1 14% $43.4 Sports $41.2 Nutrition 20% Herbs & Botanicals 18% Specialty/Other Asia & Europe M
Slide 8: Our U.S.-Based Manufacturing Drives Operational Excellence
O U R U . S . - BASED MANUFACTURING DRIVES OPERATIONAL EXCELLENCE Highest quality raw ingredients for bioavailability 600+ tests to ensure each formula does exactly what’s intended Strict compliance with FDA standards CERTIFICATIONS NSP Labs: state-of-the-art, 285,000 sq. ft. manufacturing facility
Slide 9: Diverse Product Portfolio
DIVERSE PRODUCT PORTFOLIO Weight General Health Digestive Cardiovascular Personal Care Immune Management Blood sugar Regulate intestinal Combine a variety Oils and lotions, Support and Healthy meal support, bone and digestive of superior heart aloe vera gel, herbal strengthen the replacements and he
Slide 10: Global Markets Served
GLOBAL MARKETS SERVED Retailers, Practitioners, Business Builders & E-Commerce NATURE’S SUNSHINE SALES BY REGION¹ Australia U.K. Canada Ukraine China United States 6% 17% Colombia Latin Europe Dominican Repub. America Ecuador Russian Markets El Salvador (Armenia, Azerbaijan, Belarus, Kazakhstan, Gua
Slide 11: Our Five Global Growth Strategies
OUR FIVE GLOBAL GROWTH STRATEGIES Brand Power The Right Stuff Field Energy Manufacturing Inc. Digital First NASDAQ: NATR | ©2020 Nature's Sunshine Products, Inc. All rights reserved. 11
Slide 12: #1 — Brand Power
#1 — BRAND POWER Capturing the imagination of distributors & clients with “rockstar” branding How? • Revitalizing our brand with new packaging & advertising • Restructuring our existing product portfolio to drive growth • Revolutionizing our product lineup Early actions • New packaging, company posi
Slide 13: Brand Power in Action: New Packaging – Label
BRAND POWER IN ACTION New Packaging – Label New look, same great quality products Transparency Non-GMO, organic, Vegetarian capsules vegan, other icons where possible where possible Embossed icon Herbal experts since 1972 on cap NASDAQ: NATR | ©2020 Nature's Sunshine Products, Inc. All rights reserv
Slide 14: Brand Power in Action: New Branding
BRAND POWER IN ACTION New Branding – Macro Botanicals & Macro Science Photography NASDAQ: NATR | ©2020 Nature's Sunshine Products, Inc. All rights reserved. 14
Slide 15: Brand Power in Action: qemp – Not Another CBD Product
BRAND POWER IN ACTION qemp – Not Another CBD Product Proprietary whole spectrum CBD oil that delivers targeted bio cannabinoids triggering specific receptors in the body Addresses a ~$4.7B market expected to grow to $12.4B by 2023 (38% CAGR) 1 Uniquely backed by our science and R&D prowess Traceabil
Slide 16: Field Energy
# 2 — FIELD ENERGY Managing the details to create a magical consumer experience How? • Greater focus on the “source of sales” • Developing tools and systems to encourage repeat purchases • Improving omnichannel capabilities Early actions • Field Fundamentals/Analytics • Groundbreaking new business m
Slide 17: Field Energy in Action: Subscribe & Thrive Business Model
FIELD ENERGY IN ACTION “Subscribe & Thrive” Business Model – North America/LATAM Offering new suite of business tools, updated services & new customer- focused rewards Integrates new consumer-facing programs promoting: • Subscriptions • Community • Memberships • Sharing & Referrals • Personalization
Slide 18: Digital First
# 3 — DIGITAL FIRST Move from transactional to personal relationships through an exceptional user experience that drives loyalty & affinity How? • Building next-gen digital capabilities • Developing digital toolkit and community • Leveraging data to customize support Early actions • Distributor bene
Slide 19: Digital First in Action
DIGITAL FIRST IN ACTION Shop for Products by Health Topic Product Category Body Systems NASDAQ: NATR | ©2020 Nature's Sunshine Products, Inc. All rights reserved. 19
Slide 20: Digital First in Action
DIGITAL FIRST IN ACTION NASDAQ: NATR | ©2020 Nature's Sunshine Products, Inc. All rights reserved. 20
Slide 21: Manufacturing, Inc.
# 4 — MANUFACTURING, INC. Unleash the top-tier manufacturing capabilities we already possess How? • Leveraging our strengths to streamline processes • Upgrading our manufacturing facilities for safe and secure production • Using our significant production capacity for further profitable expansion Ea
Slide 22: #5 — The Right Stuff
#5 — THE RIGHT STUFF Create a high-performance team fully aligned and focused on winning How? • Building a high-performance-oriented global organization • Streamlining business processes to improve overall cost and efficiency • Enhancing leadership training and development programs Early actions • L
Slide 23: Management Team
MANAGEMENT TEAM Terrence Moorehead Joseph Baty Dan Norman CEO CFO EVP, President of Asia Pacific 25+ years of experience in the retail Previously EVP and CFO Extensive experience in the network consumer products industry, including at Schiff Nutrition International marketing industry and deep backgr
Slide 24: Management Team (Cont.)
MANAGEMENT TEAM (CONT.) Eddie Silcock Bryant Yates Tracee Comstock EVP, President of North America EVP, President of Europe VP, Human Resources Served as chief sales officer for Perfectly Served in various leadership capacities From Sep 2016 to Nov 2017, Posh with Nature’s Sunshine since 1999 served
Slide 25: Key Stats
K E Y S T A T S 1 Trading data @ (8/28/20) Valuation Measures @ (8/28/20) Financial highlights (TTM Q2-20) Stock Price Enterprise Value Adjusted EBITDA3 $11.13 $176.4M $35.2M $5.50/$11.72 $217.2M $363.4M $6.9M 52 week low/high Market cap Total revenue Total debt2 4 38.11k 0.5x 74.0% $226.9M Avg. dai
Slide 26: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE Revenue Adj. EBITDA1 $ in Millions $ in Millions • Adj. EBITDA margin expansion from 5.3% in ’16 to 9.7% TTM • Adj. EBITDA has doubled in two short years (’18 to TTM) $364.8 $363.4 $35.2 $362.2 $31.2 $18.1 $17.6 $341.2 $342.0 $12.2 2016 2017 2018 2019 TTM Q2-20 2016
Slide 27: Why Nature's Sunshine?
WHY NATURE’S SUNSHINE? Expansive product platform, grounded in science, manufactured and tested in the USA Enormous market opportunity with a product platform addressing global consumer trends in health and wellness Brand repositioning better serves today’s more informed consumer Five meaningful, gl
Slide 28: Contact Us
CONTACT US Investor Relations Contact Cody Slach Senior Managing Director, Gateway Investor Relations (949) 574-3860 NATR@gatewayir.com
Slide 29: Appendix
APPENDIX NATURES &S QZ. SUNSHINE
Slide 30: Board of Directors
BOARD OF DIRECTORS J. Christopher Teets Rob Straus Chairman Independent Director • Partner at Red Mountain Capital Partners • Portfolio manager and analyst at Wynnefield Capital since 2015 • Former vice president at Goldman Sachs (NYSE: GS) • Over 20 years of experience in the investment banking ind
Slide 31: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA 2016 2017 2018 2019 2020 TTM Net Income $ 675 $(13,795) $ (1,202) $ 6,929 $ 11,710 Adjustments: Depreciation an amortization 4,808 8,634 9,806 10,599 10,681 Share-based compensation expense 3,217 2,218 2,170 2,120 2,399 O
Slide 32: Non-GAAP Net Income Reconciliation
NON-GAAP NET INCOME RECONCILIATION NON-GAAP NET INCOME RECONCILIATION TTM Q2 2020 Net Income $ 11,710 Adjustments: Restructuring related expense 421 VAT refund (635) Tax impact of adjustments (128) Total adjustments (342) Non-GAAP net income $ 11,368 Reported income attributable to common shareholde
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