Ackman Herbalife webcast can be found here , our live coverage of the presentation can be found here. Below are the slides from the presentation.

Herbalife in China – Speakers

From Pershing Square Capital Management

Bill Ackman, CEO

David Klafter, Senior Counsel

Ben Hakim, Partner

 

From OTG Research Group

Aaron Smith-Levin, Principal

 

Herbalife in China – Outline of Presentation

I. Background and Legal Overview

II. Research Findings in China

III. Applying the Law to the Facts

IV. Analysis of Herbalife’s SEC ilings and Herbalife internal inancial documents relating to China

V. Conclusions

 

VI. Q&A – To submit questions at any time during the presentation, email:

[email protected]

“China is 1.3 billion people, you can recruit for a long time there before we had what was called the classic ‘pop-and-drop’ in that marketplace.”

– Michael O. Johnson Herbalife Chairman and CEO

HLF Q2 2008 Earnings Call, Aug. 6, 2008.

China’s importance to Herbalife’s business has grown dramatically in recent years. In 2013 . . .

Ø China net sales were approximately 10% of worldwide sales Ø? China net sales grew 69.3%

Ø China contributed over 25.6% of total net sales growth

Pres. Des Walsh:

“China is probably the most regulated market in which we operate. It is a different model there from the rest of the world.” 3Q13 Conf. Call.

CFO (today, COO) Rich Goudis:

“For competitive reasons, I don’t want to disclose our compensation program other than to say that we are abiding by all local regulations. We have a very competitive marketing plan for our distributors . . .

“Obviously, there’s a limit in the payout. Again, we’re compliant with all local regulations. And other than that, we’d rather stay somewhat quiet on our compensation plan as it is a competitive advantage for us.” 1Q07 Conf. Call

PDF: HerbalifeInChina

Herbalife in China

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