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NutriSystem, Inc. Nasdaq: NTRI. May 2, 2007. Safe Harbor.
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NutriSystem, Inc.Nasdaq: NTRI May 2, 2007
Safe Harbor We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements.
The NutriSystem Program Internet Ordering & Counseling No Membership Fees / $10 Per Day No Center Visits / Delicious Meals Already Prepared Nourish: Sound Science / Effective Program Success Convenience Simplicity Value Anonymity
New Customer Growth 798 K 347 K ? 52 K 23 K 2004 2007 2003 2005 2006
Revenue & Profit Growth 568 M = Revenue = Operating Income CAGR = 191% 213 M 132 M 38 M 23 M 33 M 2 M -2 M 2004 2003 2005 2006
IncreasingRevenue Per Customer 632 605 521 440 347 2006 2002 2003 2004 2005 Average Sale Price (Autoship orders) $198 $220 $247 $279 $289 Numbers are approximate.
The Diet Industry: Fast Facts • 65% of adults (218mm) in the U.S. classified as overweight or obese • About 62mm Americans on a diet at any one time • 1 out of 3 dieters are men • Largest projected increase over next 10 years will be seniors *Gallup Diet Study 2006
Dieter Concerns & Preferences Why have past attempts been unsuccessful? • Lack of results • Lack of time • Lack of structure or organized meal Top 3 factors when deciding which diet to follow • Easy to follow • Safe • Can be followed on your own without going to meetings 2006 Gallup Study
Dieters’ Motivation Source: The Gallup Organization
Our Core Customer • Female: 87% (‘05), 76% (’06) • 46 years old • 190 lbs. female, 245 lbs. male • Want to lose 50 lbs. • Lose 1.5-2.0 lbs./wk • Stay on 10-11 weeks • Serial dieter • Autoship (90% of revenue) • Referrals drive growth • Surveys indicate satisfaction
How We’re Positioned in the Space Commercial Weight Loss • No Embarrassing Weigh-ins • No Membership Fees • Less Expensive Home-Based Dieter • 8 out of 10 Dieters Are Self-directed • Simpler, More Effective Plan • No Cooking • Men!
Market Opportunity Estimated number of Americans on a weight loss diet at any one time: 62 million Source: The Gallup Organization, May-July 2006
How We Go to Market Direct Response TV Direct Mail Public Relations DIETERS 30-minute Infomercials Print Advertising Internet Multiple creatives, repeat exposure, brand repetitiongenerates “Program Customers”
Explore & Lead Market Segmentation Expand Marketing Channels Product Innovation 2007 Strategy Test & Expand New Distribution Channels Improve Customer Reactivation Efforts Extend Platform Into Wellness
NutriSystem, Inc.Nasdaq: NTRI www.nutrisystem.com 300 Welsh Road, Building One Horsham, PA 19044 tel: (215) 706-5300