Baird ... Driving profitable online sales Building successful product innovation platform Pursuing international

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  • Baird Conference Sharon Leite, Chief Executive Officer

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    Safe Harbor Statement

    This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements in this presentation that do not constitute historical facts, including, without limitation, statements regarding introduction of new product offerings, expense savings, store growth, revenue and other statements that are predictive in nature or depend upon or refer to events or conditions or that include words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “believes,” “estimates”, “targets” or “could”, are “forward-looking” statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are subject to various risks and uncertainties, many of which are outside our control, including, among others, including the strength of the economy, changes in the overall level of consumer spending, the performance of the Company's products within the prevailing retail environment, implementation of our strategy, trade restrictions, availability of suitable store locations at appropriate terms, the availability of raw materials, compliance with regulations, certifications and best practices with respect to the development, manufacture, sales and marketing of the company’s products and other specific factors discussed here and in other releases and public filings made by the company (including Vitamin Shoppe’s reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission). Vitamin Shoppe believes that all forward-looking statements are based on reasonable assumptions when made; however, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, one should not place undue reliance on these statements. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update these statements in light of subsequent events or developments. Actual results may differ materially from anticipated results or outcomes discussed in any forward-looking statement. Please refer to the Company’s annual reports filed on Form 10-K and other filings with the Securities and Exchange Commission as well as recent press releases. These filings can be accessed over the Internet at www.vitaminshoppe.com in the Investor Relations section.

    http://www.vitaminshoppe.com/

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    Since opening its doors in 1977, The Vitamin Shoppe® has been dedicated to helping our customers

    achieve their wellness goals.

    We’re so much more than a place to buy vitamins. Moving forward, we will become the authority for a wide-range of quality and trustworthy products

    and services. Everything we do will be created with genuine care and heart for our customers

    and community.

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    We are at a critical inflection point in our evolution…

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    2018

    Reinvention

    2009- 2010

    Post-IPO Phase

    2011 - 2013

    High Growth Phase

    2014 - 2017

    Transition Phase

     Fastest growing retailer in the

    VMS industry

     15 consecutive years of positive

    comparable store sales growth

     Never closed a store due to

    performance

     Specialty supplement and sports

    nutrition businesses outpaced

    industry trends

     #1 vitamin store based on

    customer satisfaction

     Growing U.S. store base by

    ~10% per year including the

    addition of small-market

    prototypes

     Driving profitable online sales

     Building successful product

    innovation platform

     Pursuing international activities

     Continued store expansion focus

     Improvement needed in key

    categories such as sports nutrition

    and weight management

     Acquired Nutri-Force in 2014; mixed

    results have impacted earnings

     CEO announced retirement in

    September 2014; new CEO joined in

    April 2015 and exited in 2018

     Industry pivoting to focus on health

    and wellness needs

    In the face of increased online / mass competition and the acceleration of sports-oriented category decline, The Vitamin Shoppe has:

    ▪ Hired Sharon Leite as CEO in the Fall of 2018

     Transforming the merchandising, marketing, digital and ecommerce organizations

     Created a successful auto delivery business

     Piloting a revamped Loyalty program

     Reduced debt by ~60%

     Reduced inventory 15%

     Sold the NutriForce manufacturing business

     Closed and is closing unproductive stores

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    Deliver

    operational

    efficiency

    Reduce

    enterprise

    cost Drive

    & build

    the business

    Strategic enterprise themes will generate long-term shareholder value

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    We create engaging ways to connect to our customers

    We constantly develop new and proprietary products that are aligned to trends and

    advancements in knowledge

    We pursue opportunities outside of our stores to bring our product to market

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    Our brand pillars The Vitamin Shoppe’s mission is to help our customers be

    their best selves, however they define it. We fulfill this promise and differentiate ourselves through:

    We are authentic and trustworthy. We challenge

    ourselves to exceed industry standards for quality. Our seal lets our customer know that they can be confident in the products they buy from us,

    every time.

    Quality

    We are constantly developing new and

    proprietary products that are aligned to current trends,

    needs, and advancements.

    Innovation

    We offer encouragement and inspiring solutions with

    unsurpassed knowledge and expertise.

    Expertise

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    Super Premium

    Best

    Muscle Building

    Weight Management

    Vitamins & Minerals

    Specialty Supplements

    Plant-Based NutritionPerformance Digestive

    Sports & Fitness Holistic Health & Wellness

    Better (National Brand

    Equivalent)

    (Coming Soon!)

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    New label and package designs

    BEFORE

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    NEW – BEST Tier Brand

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    NEW – BEST Tier Brand

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    An omni-channel approach putting the customer

    at the center of all we do

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    We offer encouragement and inspiring solutions with

    unsurpassed knowledge and expertise.

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    We’ll be dispensing the ultimate in personalization

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    Revitalization for our store strategy…

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    Our real estate and store portfolio strategy is to balance our growth goals with short-term and long-term profitability obligations.

    The desired outcome is a national portfolio with high strategic value and predictable profitability.

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    New Real Estate Strategy and Store Design

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    We are pursuing opportunities outside

    of traditional retail channels…

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    Wholesale

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    International

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    Deliver

    operational

    efficiency

    Reduce

    enterprise

    cost Drive

    & build

    the business

    Strategic enterprise themes will generate long-term shareholder value

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    An experienced executive leadership team assembled to drive growth

    The Vitamin Shoppe has assembled a talented and experienced team to transform the Company through its Long-Range Plan

    Name Years at VSI Prior ExperiencePosition

    David Kastin SVP, General Counsel & Corporate Secretary

    4 20+ years of counsel experience

    Teresa Orth SVP, Human Resources 6 25+ years in human resources for retail companies

    EVP, Chief Technology Officer 1 25+ years in digital, technology and supply chain Andy Laudato

    Neal Panza SVP, Retail Sales and

    Operations 1

    25+ years in sales, operations and leading large teams

    Stacey Renfro EVP, Chief Digital & Customer

    Experience Officer 1 20+years in digital, e-commerce, marketing and merchandising

    Alex Smith Chairman 3

    40+ years in retail strategy, mercha