Lifevantage Corporation · NASDAQ:LFVN
Lifevantage — Shareholder Meeting (November 2007)
33 slides from Lifevantage's shareholder meeting presentation, Nov 30, 2007
Slide 1: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS November 30, 2007 Helping people reach their health and wellness goals through science-based solutions
Slide 2: Forward-looking statements
Statements in this presentation which are not statements of historical fact are "forward-looking statements" within the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information available to, and the expectations and assu
Slide 3: LifeVantage Annual Meeting of Shareholders
LirEVANTAGE tandim tandim November 30, 2007 LifeVantage Corporation 3 ‘Annual Meeting of Shareholders
Slide 4: FY 2007 - A Turn Around Year
Cash burn reduced significantly Personnel cut to bare minimum Most marketing programs were scaled back Direct sales to customers declined Share price declined Re-price of 2005 warrants Launched Fall 2007 funding Expenses under control by year end FY 2007 - A Turn Around Year
Slide 5: Comparison of Net Sales to Operating Expenditures
LirEVANTAGE oo Comparison of Net Sales to Operating Expenditures $3,000.0 $2,500.0 $2,000.0 $1,500.0 (in thousands) $1,000.0 $500.0 $0.0 November 30, 2007 FY07 Qt FYO7Q2 F073 Net Sales @ Operating Expenses LifeVantage Corporation ‘Annual Meeting of Shareholders FYO7Q4—— FY08Q1
Slide 6: First Quarter - FY 2008
Funding is complete Positive cash flow from operations Management changes A switch to "direct response marketing" Declining revenue trend is flattening Patent received by LifeVantage First Quarter - FY 2008
Slide 7: Breakthrough Technology - Patent granted
Breakthrough Technology - Patent granted First Patent Granted: July 10, 2007
Slide 8: Research Technology - Patent Received!
Research Technology - Patent Received! Fold Induction ag HO-1 mRNA/ng/rRNA Alcohol extract from 30 ug protandim or components per ml medium 0 2 4 6 8 10 12 14 16 18 20 Ashwagantha Bacopa Green Tea Silymarin Curcumin Protandim Control Antioxidant gene induction by Protandim and its components in huma
Slide 9: Independent studies using Protandim
The Protandim(r) breakthrough study has spawned many additional independent studies using Protandim(r) . Universities and institutions conducting research include: University of Colorado Denver Health Medical Center Children's Hospital, Denver University of Florida University of Kentucky University
Slide 10: Sales & Marketing Overview
Direct response approach Measurable, offer oriented, drive new users Strategic focus on Customer Acquisition and Retention Our View of the Customer Online: Strategy, Acquisition and Retention Interview Style TV Retail Distribution Advertising and Public Relations Sales & Marketing Overview
Slide 11: Our View of the Customer: Loyal Auto-Shippers
Why it matters Shape the message, choose the medium Establish lifetime value of a customer Base marketing decisions on cost of acquisition Loyal Auto-Shippers Core business Our View of the Customer
Slide 12: Loyal Non-Auto-Shippers
Loyal Non-Auto-Shippers Resist auto-ship We meet them on their terms Our View of the Customer
Slide 13: Free Trial Customers
Free Trial Customers Sample, then educate Our View of the Customer
Slide 14: Inactive and Former Customers
Inactive and Former Customers Large list that's receptive to promotions Our View of the Customer
Slide 15: Prospects
Prospects Our View of the Customer
Slide 16: Fetchback Interactive
November 30, 2007 LifeVantage Corporation ‘Annual Meeting of Shareholders LirEVANTAGE hFetchback ( @ INTERACTIVE |
Slide 17: Acquisition Strategy - Online
Text here Acquisition Strategy - Online Website Management Clear call to action (e.g. Free Trial) Multiple ways to enter the sales funnel (e.g. buy, brochure, newsletter) Simplified navigation Design elements that uphold the brand promise Email Marketing Rent prospect email addresses targeted by geo
Slide 18: Retention Strategy
Standard Customer Cadence Proactively convert brochure requestors and newsletter subscribers Promotional and educational opportunities at specific points in the customer lifecycle Standard process across contact methods HOAP - "Head 'em Off At the Pass" Overcome 7 key auto-ship objections Near 50% s
Slide 19: Interview Style Direct Response TV
Local TV markets on network affiliates Cost effectively drive new customer acquisition Deliver Protandim message in an interview format with direct response offer Additional benefits of branding, awareness, and message development Longer term direct response TV strategy Develop commercials and infom
Slide 20: Retail Distribution
Objective: Grow new customers and retain existing through co-marketing programs Direct mail program drives new Protandim users into retailer Catalog/coupon programs convert known retail customers to Protandim and helps maintain existing Protandim users Use of broker/sales reps and distributors to fu
Slide 21: Advertising and Public Relations 2007
Direct response focus, objective of acquisition & lead generation Eliminated most traditional ads Better Nutrition sample program Psychology Today direct response ads Chiropractor Patient Information Station program AAFP Family Doctor 2007 Advertising and Public Relations
Slide 22: Advertising and Public Relations
Drive Protandim use in the sports market via celebrity and league endorsements NBC Today Show July & November 2006 Sympatico/MSN Health & Fitness Protandim profile Whole Foods Magazine profile Protandim and Science endorsements: Advertising and Public Relations
Slide 23: Product Line Expansion
New package sizes for value pricing Protandim 60 and 90 ct. bottles "LifeVantage" line of complementary dietary supplements Cross-sell and up-sell with 4-5 additional products Increase order sizes with existing customers "ProtandimPlus" line that combines the Protandim science with complementary for
Slide 24: Oral presentation and forward-looking statements
These slides accompany an oral presentation by Lifevantage Corporation, which contains forward-looking statements. The Company's actual results may differ materially from those suggested here. Additional information concerning factors that could cause such a difference is contained in the Company's
Slide 25: Financial and Regulatory Achievements
Financial and Regulatory Achievements Cost containment programs implemented and significant savings realized Eliminated staff and contractors 6 full time positions consolidated into 2 in finance and operations alone Reviewed vendor contracts and retainers and renegotiated or terminated SEC SB-2 Regi
Slide 26: Operating Results - Fiscal Years 2007 and 2006
Operating Results CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For the fiscal years ended June 30, 2007 and 2006 For the fiscal years ended June 30, 2007 and 2006 For the fiscal years ended June 30, 2007 and 2006 For the fiscal years ended June 30, 2007 and 2006
Slide 27: Balance Sheets June 2007 and 2006
Balance Sheets CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2007 and 2006
Slide 28: Operating Results - Three Months Ended September 30
Operating Results CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For the three months ended September 30, 2007 and 2006
Slide 29: Convergence of Sales and Expenses
CONVERGENCE OF SALES AND EXPENSES
Slide 30: Balance Sheets September 30, 2007
Balance Sheets CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2007 and June 30, 2007
Slide 31: Cash Flow
Cash Flow CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months ended September 30 (Unaudited)
Slide 32: FY 2008 Goals
Enhance shareholder value Increase revenue Expand product offering Implement "direct response marketing" programs Focus on new customer acquisition Support co-op marketing programs with GNC Support co-op ventures with professional groups Continue and expand patent activity Launch new direct response
Slide 33: Thank You - Questions & Discussion
Thank You Questions & Discussion