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8-K - 8-K - JRjr33, Inc. | a9-22x16vegas8k.htm |
Investor Presentation
2016
Exhibit 99.1
2
This presentation includes statements that are, or may be deemed, “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. In some cases, these forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,”
“might,” “will,” “should,” “approximately” or, in each case, their negative or other variations thereon or comparable terminology, although
not all forward-looking statements contain these words. They appear in a number of places throughout this presentation and include
statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things, our
industry, trends that may affect our industry or us, our business strategy, goals and expectations concerning our market position, future
operations, profitability, forecasted revenue and EBITDA, capital expenditures, liquidity and capital resources and other financial and
operating information.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics, and,
regulatory and industry developments and depend on the economic circumstances that may or may not occur in the future or may occur on
longer or shorter timelines than anticipated. Although we believe that we have a reasonable basis for each forward-looking statement
contained in this presentation, we caution you that forward-looking statements are not guarantees of future performance and that our actual
results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from
the forward-looking statements contained in this presentation as a result of, among other factors, the factors referenced in the “Risk Factors”
section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 28, 2016, subsequent quarterly
reports on Form 10-Qs and any other filings we make with the SEC. In addition, even if our results of operations, our financial condition
and liquidity, and the development of the industry in which we operate are all consistent with the forward-looking statements contained in
this presentation, they may not be predictive of results or developments in future periods. Any forward-looking statements that we make in
this presentation speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or
circumstances after the date of this presentation, except as required by law.
We ask that you carefully read the factors described in the “Risk Factors” section of our SEC filings to better understand the risks and
uncertainties inherent in our business, our strategy, goals and expectations regarding future operations and profitability and an investment in
our securities generally.
Safe Harbor Statement and Disclaimer
3
Branding Update
On January 28, 2016, CVSL Inc. announced that it would change its name and stock symbol.
The company began doing business as JRJR Networks on March 7, 2016. Its common stock began trading under
the symbol JRJR as of February 16, 2016.
This fresh, new brand identity perfectly fits the identity of the company: A growing, innovative “network of
networks” within the direct-to-consumer industry, led by a family with extraordinary experience and unmatched
expertise in this sector.
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Investment Thesis
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Accomplishments by Year
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About JRJR Networks
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Acquisition History to Date
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Acquisition History to Date (continued)
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What JRJR Brings to Acquired Companies
Proprietary Techniques
JRJR has proprietary, patented methods of analyzing
consumer behavior, finding companies’ strengths and
weaknesses and driving top line growth
Cost Control
Identify SG&A excesses, reduce
operating costs, find synergies and
efficiencies that drive profitability and
free cash flow
“Brand Respect”
Each acquired company’s brand, identity,
sales force, compensation plan and distinct
culture is kept intact
Technology Platform
JRJR leverages its technology leadership
through e-commerce support for the sales
forces
Executive Team and Board
JRJR’s management team has decades of industry success,
tenure and loyalty. Strong board includes a distinguished
litigator, international business experts and a product
development scientist
A Disciplined and Diversified
Acquisition Strategy
There are vast opportunities in the $166 billion+
direct to consumer sector. We target companies
with strong brands, subscription-based,
complementary products and services and
interesting geographic expansion opportunities
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Prototypical Direct Selling Indicators
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Our Disciplined Acquisition Process
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Our Acquisition Opportunity Pipeline is Robust
Category
# of companies
under
consideration
average
revenue
($M)
total
revenue
($M)
Health and
Wellness 20 $205 $4,102
Home 14 462 6,462
Beauty 8 307 2,459
Service 8 303 2,424
Accessories 5 185 927
B2B 2 5 9
Food 2 41 83
Total 59 $279 $16,464
Pipeline by Category
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A Proven Leadership Team in the
Direct-to-Consumer Sector
JRJR Networks’ management and board leadership has 180+ years of combined success and experience in finance,
operations, marketing, consumer behavior, e-commerce and direct selling compensation plans. Examples of expertise:
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Global Footprint:
Sales & Operations in Over 40 Countries
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Case Study: Betterware
Acquired October, 2015
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Case Study: Kleeneze
Acquired March, 2015
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Kleeneze/Betterware shows how JRJR Networks uses synergies to increase profitability
Case Study: Kleeneze and Betterware
Operational Efficiencies
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Case Study: Longaberger
Acquired March, 2013
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Case Study: Agel
Acquired October, 2013
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Case Study: Your Inspiration at Home
Acquired August, 2013
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The Massive Global Direct-to-Consumer Industry
The global direct-to-consumer industry has compound annual growth rate of 5.7% per
year since 2010 and is contra-cyclical to the global economy
(source: World Federation of Direct Selling Associations)
Billion
s
$
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The Direct-to-Consumer Industry is Highly Fragmented
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A Convergence of Four Powerful Motivating Forces
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Branding Update
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Valuation
Sensitivity Analysis
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Valuation
Net Recruitment
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Valuation
Valuation