Nature's Sunshine Products Inc. Canaccord Genuity's 46th Annual Growth Conference

Thank you, Susan. I was told I need to show a safe harbor statement. You have all seen those before, so I do not think I have to read this. I was also told that people do not like video, but I do. So, this one-minute video will explain Nature's Sunshine better than I can myself.

We will figure it out. Nature's Sunshine was founded in 1972 by Gene and Kristine Hughes of Provo, Utah. Gene suffered from gut health problems, and he ingested Capsicum for its natural healing properties. Capsicum is cayenne pepper. You imagine it was quite a difficult process for Gene. His wife one day said, "Why don't we figure out how to encapsulate the pepper to make it a little bit easier for you to ingest?" At their kitchen table, they actually invented the process of encapsulating herbs. Gene and Kristine's vision was to elevate people's lives through the power of nature, and they were going to elevate people's lives through the power of nature in two ways.

One, improve their health through the natural healing properties that nature offers, with hundreds of ingredients from around the world that have been used for thousands of years, and with a line of nutritional supplements. The other way they were going to improve their lives is to give them economic opportunity for people to run their own business selling natural supplements. It really started in the U.S. with herbal practitioners, little shops, herbalists, apothecaries, things of that nature, where people would go for more natural remedies, and they would prescribe Nature's Sunshine Products. Certainly, they earn a commission off the selling of those products. More importantly, they felt that they were healers. They began in little shops like this all around the country. Today, Nature's Sunshine markets through an army of independent consultants.

This is a picture of me with our top leader in Asia, Mr. Wong, and 4,000 of our top leaders in Asia. These are just the top leaders that earn incentives to go to a big Asian summit every year. This happened to be in southern Japan. We have tens of thousands of these independent consultants selling our products each and every day around the world. They sell two powerful brands. One is Nature's Sunshine, the other one is Synergy. Synergy joined Nature's Sunshine as a result of an acquisition 25 years ago. We sell those brands in over 40 countries around the world. We sell Nature's Sunshine in the Americas, Central and Eastern Europe, Russia, Ukraine, Baltic States, and in China. Synergy, we sell in the rest of Asia, Western Europe, and we sell a bit in the U.S.

It's very small, but it's actually a place where we think there's tremendous growth opportunity for our second brand here in the U.S. We manufacture over 90% of our products in our own manufacturing facility under the strictest of quality standards. We achieve all the most important certifications around the world, including the toughest in the world, the TGA, out of Australia. In 2025, we did $480 million in sales, and we did 10% in EBITDA margin. Over the past four years, we significantly have outperformed our peers in the direct selling industry with top line annual growth rate of 4% and EBITDA annual growth rate of 16%, versus declines in the peer group. We have a rock-solid balance sheet with nearly $100 million in cash, and we have no debt.

We've delivered total shareholder return more than two times the Russell 2000 index versus just since 2023. Who am I and why am I here? The business is doing pretty well. My name is Ken Romanzi, and I'm a 44-year veteran of the consumer packaged goods, food, and beverage industry. I started my career in marketing at Frito-Lay. I ran sales and distribution for the large Nabisco selling and distribution system. I was the Chief Operating Officer for Ocean Spray for 11 years through a dramatic period of growth, and I was the CEO of B&G Foods, a public food company based in New Jersey, from 2017 through COVID in 2020.

I was recruited to Nature's Sunshine by an old colleague of mine, Heidi Wissmiller, the recently appointed chair of Nature's Sunshine, and she was the former chief growth officer of Rodan + Fields, a great success story in skincare. I was charged by the board to do one thing. One of our board members, Rob D. Straus, is sitting in the back of the room, as well as our Chief Accounting Officer, Jonathan D. Lanoy. The one thing they said is, "Hey, listen. We've been growing okay, but we think there's room for acceleration of growth. Can you get this thing growing faster?" Our leadership team is now made up of both industry veterans and company veterans, as well as newcomers, and we've got our leadership pretty much set. Let me introduce you. Bryant Yates and Dan C. Norman on the bottom left and center.

They are 25-plus year veterans of this company and experts in the industry. Bryant Yates runs a massive amount of geography. Central, Eastern, Western Europe, Russia, Ukraine, Baltic States. He also runs Latin America. He's fluent not only in English, of course, but Russian, Ukrainian. He gets by in Poland pretty well as well, and speaks a little bit of broken Spanish. Totally invaluable in our business there. Dan C. Norman was the past president of Synergy WorldWide and now runs our Asia-Pacific business, which is 40% of our sales. When I got there, I immediately recorded, front and center on the top, Erich Fritz, who's a longtime colleague of mine and a best-in-class operations supply chain executive with me at Nabisco, Ocean Spray, and B&G Foods. Most recently, we brought in Janine Weber, lower right, to run our North American business.

Janine's a 25-year veteran of the direct selling industry, worked with Heidi Wissmiller at Rodan + Fields, helping make that a billion-dollar brand and the number one skincare company at the time in the U.S. Lastly, last week we just announced Ruth Perkins will join us September 1st as our Chief Financial Officer. Ruth brings a tremendous amount of excellent financial leadership experience in global consumer product companies like Ford, most recently Estée Lauder, and nearly 20 years at PepsiCo, which is really an academic company that just pumps out CFO candidates. Our team has an aggressive vision for growth. We want to double sales to $1 billion and want to improve our EBITDA margin to 15% through scale and leverage.

We believe we'll do that by staying true to the mission of Gene Hughes and Kristine Hughes, continuing to elevate lives through the power of Nature's Sunshine, helping people improve their health through natural remedies, as well as improve their economic stature by giving them a business to run independently with our support. By executing four strategic growth drivers. The first is geographic penetration, more business in the countries we're in, plus new countries. Digital channel expansion, superior marketing, and then lastly, M&A. We have a lot of opportunity to look at strategic M&A that's complementary to our business. We have excess manufacturing capacity, and we can fold in incremental business pretty simply with little to no incremental fixed costs. This is kind of a roadmap to our $1 billion. We believe that we can get more business out of our existing business.

We think there's opportunity to, again, double our digital growth, our digital business. New geographies will add business, new channels will add business, and then to put us over the top, M&A. We believe there's room in this very large growing market. This is our vision of how we're going to increase our EBITDA margins. We'll get leverage through gross margin expansion as we put more volume through our manufacturing facilities. We'll get leverage on our G&A. Lastly, our modeling shows that with a bolt-on acquisition, we can add a point or 2 of EBITDA margin to the bottom line. As I said, we believe there's a lot of opportunity in this market. It's $1 trillion. We've been keeping pace with the market, roughly growing about 4%, but all the industry experts believe that the growth rate's going to increase to higher single digits, and we intend to accelerate right along with it.

We'll accelerate, as I mentioned, through those 4 strategic growth drivers. Let me just comment on a few of them in my closing. The first is geographic penetration. This is a great example. This is Japan, where yes, we're in Japan, but we're a Tokyo-centric business. Recently, we've opened up a new office in Southern Japan, in the city of Fukuoka, and that has driven momentum in the business. Next year, we'll open another city. In a few years, another city. So there's opportunities to establish more footprint in a country where we're already doing about $45 million worth of annual business, but we're really Tokyo centric.