shiff nutrition september 2009

8/14/2019 Shiff Nutrition September 2009

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CanaccordAdamsHealthyLivingConferenceCanaccordAdamsHealthyLivingConference

September23,2009September23,2009


September

23,

2009September

23,

2009


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SafeHarborStatementSafeHarborStatement

Thispresentation

contains

forward

looking

statements

within

the

meaning

of

Section

27A

oftheSecuritiesActof1933andSection21EoftheSecuritiesExchangeActof1934that

arebasedonmanagementsbeliefsandassumptions,currentexpectations,estimates,

andprojections.Thesestatementsaresubjecttoknownandunknownrisksand

uncertainties,certain

of

which

are

beyond

the

companys

ability

to

control

or

predict,

and,therefore,actualresultsmaydiffermaterially.Anyforwardlookingstatementsare

madepursuanttothePrivateSecuritiesLitigationReformActof 1995and,assuch,speak

onlyasofthedatehereof.SchiffNutritiondisclaimsanyobligationtoupdateany

forward

looking

statements

whether

as

a

result

of

new

information,

future

events

or

otherwise.Youarecautionednottoplaceunduerelianceontheseforwardlooking

statements.

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CompanyBackgroundCompanyBackground


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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference


SchiffNutritionInternationalMissionSchiffNutritionInternationalMission

Develop and provide high qualitybranded supplements and other

alternatives that promote

health and wellness

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Schiffrankedintop10U.S.supplementcompanies*Schiffrankedintop10U.S.supplementcompanies*

Products:

Products:

400+SKUPortfolio

HighQuality,NaturalIngredientformulas

Tablets,Capsules,Softgels,NutritionBars

Locations:Locations:

SaltLakeCityHeadquartersfacility(Openedin'97)

Bentonville,ARsalesofficeservicingWalMart/Sam's

BeijingSourcing/QAoffice

Employees:Employees:

Schiffemploys486people 257management,sales,purchasing,

logisticsand

administration

229manufacturing

*Source: Nutriti on Business Journal (excludes MLM)

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CompanyHistoryCompanyHistory

2007:

Net cash balance of$80M; $1.50/share

special dividenddeclared1989:

Weider Health & Fitnessestablishes three

principal businessdivisions (Sporting

Goods, Nutrition andPublications)

Schiff Brand acquired

1998:

Debt peaks at$133M

1940:

Joe Weiderpublishes his firstbodybuildingmagazine,starting hiscareer in sportsnutrition

1997:

Company taken public

Pain Free brandlaunched

2000:

Pain Free

namechangedto MoveFree

2005:

Divestiture program

completed,company namechanged to SNI

2006:Move FreeAdvancedintroduced

2009:Net cash balance of$57M; $0.50/sharespecial dividenddeclared

2008:Net cashbalanceof $49M(post $43millionspecial

dividend)

2009:

MegaRedintroduced

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Wellestablished

customer

relationships

CustomerAnalysisCustomerAnalysis

Schiffspremier

productofferings

havesolidifiedlong

standing

relationshipswith

industryleading

customers

Warehouse

Clubs

Mass

Merchandisers

Supermarkets

Drug

Stores

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MarketBackgroundMarketBackground


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MarketDynamicsMarketDynamics

*Source:Nutrition

Business

Journal

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U.S.DietarySupplementsMarketChannelsU.S.DietarySupplementsMarketChannels

Source:Nutrition

Business

Journal

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LongLong--term

Shareholder

Value

Strategyterm

Shareholder

Value

Strategy


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LongLong--termProfitableGrowthtermProfitableGrowth

Strengthenbrandedposition Enhanceproductsandproductlines

Supportselectedbrandswithappropriatemarketinginvestment

Introducenewproducts

Growexportbusiness

Expandprivatelabelbusiness Complementarytocorebrandedstrategy

Achievesuperior

quality

and

operational

efficiencies

Meetcompliancestandardsthroughcomprehensivequalitycontrol

Improvecostperformancewithstateoftheartmanufacturingfacility,procurementcapabilities

Support

growth

platform

with

exceptional

customer

service M&Aactivity:selectiveinterestasopportunitiessurface

Strongbalancesheet;$53millionincashequivalents atAugust31,2009

Unused$80millioncreditfacility

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LeveragingStrongBrandsLeveragingStrongBrands

Joint

Care

CategoryJoint

Care

Category Schiff MoveFree Innovationdrivesmarketleadingposition

Improvedconsumerexperience:

AdvancedFormula

(FY06)

SmallerTablet(FY08)

Extendedproductlinetoaddvalueandefficacy BlueBox withMSMandVitaminD(FY08)

SchiffGlucosamine

the

brand

leader

in

value

priced

segment

CardiovascularHealth:FishOilCategoryCardiovascularHealth:FishOilCategory SchiffMegaRed launchedinFY08

Providescardiovascular

benefits

Smallersize;nofishyodororaftertaste

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FinancialStabilityandFoundationFinancialStabilityandFoundation

AsReported

Financial

Results

(unaudited)

FY10

vs.

FY09

Strong,LiquidBalanceSheetatAugust31,2009

CashandSTSecuritiesof$53.2million(post$14.4millionspecialdividend)

Currentratio approximately5x

Nodebt

15

3MonthsEndedAugust31,

2008 2009

Net

Sales

$ 47.8M $ 48.6MGrossProfitMargin 37.4% 39.5%

IncomefromOperations $ 5.0M $ 7.0M

OperatingMargin 10.5% 14.5%

EarningsPer

Share

diluted $ 0.11 $ 0.15


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HistoricalConsolidatedFinancialResultsHistoricalConsolidatedFinancialResults

($inmillions,exceptpersharedata)($inmillions,exceptpersharedata) ASREPORTED

FY08 FY09

NetSales $ 176.9 $ 190.7

GrossProfitMargin 42.1% 35.1%

IncomefromOperations $ 16.4 $ 15.2

Operating

Margin 9.2% 8.0%EarningsPerShare diluted $ 0.40 $ 0.36

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ExperiencedmanagementwithproventrackrecordExperiencedmanagementwithproventrackrecord

Eric WeiderChairman of the Boardof Directors

11+ years CEO & President of WeiderHealth & Fitness, Schif fs majorityshareholder

Bruce Wood CEO, President &Director

10+ years Schiff , 24 years prior experiencein food business (Nabisco, Inc.)

Joe BatyCFO & Executive VicePresident

12+ years Schiff , 13 years prior experienceas CPA & partner (KPMG LLP)

Tom ElitharpOperations & SupportServices, Executive

Vice President

11+ years Schiff , 18 years prior experiencein food business (Welch Foods Inc.)

OtherVPs 15FunctionalExperts 8yearsaverageSchiffexperience

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shiff nutrition september 2009

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