USANA 2nd Quarter 2013 Highlights

7/27/2019 USANA 2nd Quarter 2013 Highlights

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CAUTION!

Management will make forward-lookingstatements during this presentation.

Actual results could differ from thoseprojected in such forward-looking

statements, which involve a number of

risks and uncertainties and should beconsidered in conjunction with thecautionary statements contained in our

most recent filings with the SEC.


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USANA Headquarters - Salt Lake City, Utah

PERSONALIZES!is a direct selling company that


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BUSINESS!HEALTH!

Entrepreneurialopportunities forfinancial freedom.

Best-in-classproducts thatpromote long-term

benefits.


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INDUSTRY!

Cash flow!

Enduringproducts!

Community!

Convenience!

Pay forperformance!

Pricing!


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Operations!Personalization!Financial Stability!

Direct Selling!Global Reach!Products

!


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Differentiatedproduct strategy

Effectivenessthats backed by

science!

Top-ratedsupplements

World-class athletesponsorships

Highestquality!

PRODUCTS!


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!

80%!Supplements!!

12%!Weight Management!!

6%!Skin Care!of sales

of sales

of sales

DIFFERENTIATED strategy


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%o

fClinicalLevels

Effectiveness backed by SCIENCE!Clinical Levels of Nutrients

RDA Diet Typical Vitamin USANA


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75% of products produced in-houseFacility registeredwith numerous

government agencies - including the FDAVoluntarily in compliance!

with more-demanding drug-model GMPs

QUALITY manufacturing standards!


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USANA is theofficial healthsupplement

supplier of theWTA, US Ski & Snowboard, "

US Speed Skating, "US Womens Ski Jumping, USA Luge, "

Speed Skating Canada, "Cross Country Canada, "

Biathlon Canada, "and Pachucade Futbol

ATHLETE sponsorships!


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Greater China36%North Asia4%

Southeast Asia22%

The Americas "& Europe38%

ESTABLISHED presence!

20th largestdirect selling

company in the world!


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United StatesJapanChina

BrazilKoreaMexicoGermany

RussiaItalyFrance

1.2.3.

4.5.6.7.

8.9.10.

11.12.13.

14.15.16.17.

18.19.20.

CanadaMalaysiaTaiwan

ThailandUnited KingdomColumbiaAustralia

ArgentinaVenezuelaSouth Africa

Top 20 Direct Selling Markets!

Current! New!

Continued EXPANSION!


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*Source: Nutrition Business Journal

License products

Leverage current sales force

Utilize BabyCares infrastructureand government relations

Experienced management team

Benefit from an average 13 years of direct selling experience

Significant CHINA opportunity!


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of sales to Active Associates!90%!28%! of sales are on Automatic Shipment!10%! of sales to Preferred Customers!

SALES are driven by Associates


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Receive weeklyvs.monthly payout

Creates legacybusiness!Includes bonuses,

incentives, andcommissions !

COMPENSATION plans!

BESTCOMPANY

in Network Marketingfor the 16th consecutive yearby MLM Insider Online

voted


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Efficiency created through

In-house!Manufacturing! CentralizedI.T.! ScientificExpertise!

OPERATIONAL!


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Managed cost structure!Better control of inventory levels

Scheduling control ensureseffective resource turnaround

Able to retain stronggross margin profile!

EFFICIENCY & CONTROLS!


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BUSINESSHEALTHTrusted nutritional

supplementsPersonally-designed systems

Diverse productsthat meet a greatnumber of needs

Flexible with timeand need

Wide range of tools

and technology tobuild and sustainIncentives driveperformance atmultiple levels

Its about YOU!

Drives FUTURE growth!


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Products andsystems designed

and produced -

just for you.! ItsaboutYOU!Nutritional Supplements

Weight Management

Skin Care

A future of customized SOLUTIONS!


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Short, interactiveevaluation of healthneeds!Interactive and

user-friendlyProvides personalizedrecommendations:

Top health risksLifestyle planNutrition program

TOOLS for marketing the business!


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Helps manage,maintain, and monitordaily health progress

Social media enabled

Providesrecommendations:

Meal plansHealthy recipesDaily reminders

Product complianceExercises

TOOLS for marketing the business!


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STATEMENT OF EARNINGS FY 2010 FY 2011 FY 2012

Net Sales $517,644! $581,939! $648,726!COGS 95,482! 101,692! 115,804!

Gross Profit 422,162! 480,247! 532,922!Gross Margin % 81.6%! 82.5%! 82.1%!

Associate Incentives 233,187! 265,928! 280,506!As a % of Net Sales 45.0%! 45.7%! 43.2%!

SG&A 120,759! 137,063! 154,237!As a % of Net Sales 23.3%! 23.6%! 23.8%!

Earnings from Operations 68,216! 77,256! 98,179!As a % of Net Sales 13.3%! 13.2%! 15.1%!

Average Shares - Diluted 15,942! 15,574! 14,923!EPS - Diluted $2.86! $3.26! $4.45!

Strong FINANCIALS!


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20 years of GROWTH!

$0

$175,000

$350,000

$525,000

$700,000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012


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In millions

2010200920082007 *2013E201220112006200520042003

$525

$350

$700

$175

$0

10 Year CAGR 14.2%

NET sales!


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ACTIVE Associates

2010200920082007 20122011200620052004

225

150

300

75

0

In thousands


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Q2 2013!Highest "

Quarterly Revenue "in Company History $189.1M

Highest "Quarterly Earnings

per Share "in Company History $1.72


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STRONG & STABLE balance sheet!FY 2011 FY 2012 Q2 2013

Cash! $50.4M ! $70.8M ! $96.1M !Total Debt! $0.0M ! $0.0M ! $0.0M !

Cap Ex! $10.6M ! $8.4M ! $3.4M !Free Cash Flow! $59.5M ! $84.5M ! $42.1M !

Cash per Diluted Share! $3.37! $4.94! $6.81!Share Repurchases! 1.1M ! 1.6M ! None !

Potential

uses ofcash

Invest in business for future returns Targeted acquisitionNew markets Cash reservesVertical integration Share repurchasesSupply chain management Dividends


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Outlook 2013!Low High

2013 Net Sales $700 $7202013 EPS $5.30 $5.45

Guidance (in millions, except per share)


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Large and growing "global industryDiverse product"strategyEfficient operationsNew and mature marketsStrong cash flowsWere personal

SUMMARY of a positive future!

Documents

USANA 2nd Quarter 2013 Highlights