康寶萊 (HLF) 2016 Q4 法說會逐字稿

Good afternoon, and thank you for joining the fourth quarter and full year 2016 earnings conference call for Herbalife Limited. On the call today is Michael Johnson, the Company's Chairman and CEO; Richard Goudis, the Company's COO; John DeSimone, the Company's CFO; and Alan Quan, the Company's Vice President, Investor Relations. I would now like to turn the call over to Alan Quan to read the Company's Safe Harbor language.

下午好，感謝您參加康寶萊有限公司 2016 年第四季和全年財報電話會議。今天參加電話會議的是公司董事長兼執行長 Michael Johnson； Richard Goudis，公司營運長；德西蒙 (John DeSimone)，公司財務長；以及公司投資者關係副總裁 Alan Quan。我現在想將電話轉給 Alan Quan，閱讀公司的安全港語言。

Before we begin, as a reminder, during this conference call, comments may be made that include some forward-looking statements. These statements involve risk and uncertainty and as you know, actual results may differ materially from those discussed or anticipated. We encourage you to refer to today's earnings release, and our SEC filings for a complete discussion of risks associated with these forward-looking statements in our business. We do not undertake any obligation to update or release any revisions to any forward-looking statement, or to report any future events or circumstances, or to reflect the occurrence of unanticipated events except as required by law.

在我們開始之前，提醒一下，在本次電話會議期間，可能會發表一些評論，其中包括一些前瞻性陳述。這些陳述涉及風險和不確定性，如您所知，實際結果可能與討論或預期的結果有重大差異。我們鼓勵您參考今天的收益報告和我們向 SEC 提交的文件，以全面討論與我們業務中的這些前瞻性陳述相關的風險。除法律要求外，我們不承擔更新或發布任何前瞻性聲明的任何修訂、報告任何未來事件或情況、或反映意外事件發生的義務。

In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements, prepared in accordance with US generally accepted accounting principles, referred to by the Securities and Exchange Commission as non-GAAP financial measures.

此外，在本次電話會議中，可能會討論某些與我們的財務報表中包含的可比較指標不同的財務績效指標，這些指標是根據美國公認會計原則編制的，被美國證券交易委員會稱為非公認會計準則財務指標。

We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and preparing period-to-period results of operations in a more meaningful and consistent manner as discussed in greater detail in the supplemental schedules to our earnings release. Please refer to the Investor Relations section of our website, herbalife.com to find our press release for this quarter, which contains a reconciliation of these measures.

我們相信，這些非公認會計原則財務指標有助於管理層和投資者以更有意義和一致的方式評估我們的業績並準備各時期的經營業績，正如我們的收益發布補充時間表中更詳細討論的那樣。請參閱我們網站 herbalife.com 的投資者關係部分，以尋找本季的新聞稿，其中包含這些措施的協調表。

Additionally, when management makes reference to volumes during this conference call, they are referring to volume points. I'll now turn the call over to our Chairman and CEO, Michael Johnson.

此外，當管理階層在本次電話會議期間提到交易量時，他們指的是交易量點。現在我將把電話轉給我們的董事長兼執行長邁克爾·約翰遜。

Thank you, Alan, and welcome, everyone. And I'm happy to say that we accomplished a lot in 2016 and I feel we are laying important ground work for the next 10 years at Herbalife Nutrition. That said, there are some key markets where we have work to do and I'll talk about those in just a minute.

謝謝艾倫，歡迎大家。我很高興地說，我們在 2016 年取得了許多成就，我覺得我們正在為康寶萊營養的未來 10 年奠定重要的基礎。也就是說，我們在一些關鍵市場上還有工作要做，我將立即討論這些市場。

But let's start with the financial results. As you saw from our press release today, we delivered net sales that were equal to last year and up 6% in constant currency. It is important to note that foreign exchange headwinds continue to present a significant challenge.

但讓我們從財務表現開始。正如您從今天的新聞稿中看到的，我們的淨銷售額與去年持平，以固定匯率計算增長了 6%。值得注意的是，外匯逆風持續構成重大挑戰。

When we initiated 2016 guidance on our quarter three 2015 earnings call, we projected a $0.50 impact from currency. As the dollar continued to strengthen over the course of 2016, the actual impact was nearly double that original forecast with an impact of $0.95 for the full year including $0.11 for quarter four. We more than offset this impact by operating our business with rigor and control and demanding greater efficiencies every step of the way.

當我們在 2015 年第三季財報電話會議上啟動 2016 年指引時，我們預期匯率的影響為 0.50 美元。隨著美元在 2016 年繼續走強，實際影響幾乎是最初預測的兩倍，全年影響為 0.95 美元，其中第四季為 0.11 美元。我們透過嚴格控制業務運營並要求每一步都提高效率來抵消這種影響。

Full year 2016 reported EPS was $3.02 compared to $3.97 for 2015, while our full year 2016 adjusted EPS was $4.85 compared to $4.95 for 2015. This was at the high end our guidance of $4.65 to $4.85. John will take you through our financial performance later in the call.

2016 年全年每股收益為 3.02 美元，而 2015 年為 3.97 美元，而 2016 年全年調整後每股收益為 4.85 美元，而 2015 年為 4.95 美元。這是我們指導的 4.65 美元至 4.85 美元的高端。約翰將在稍後的電話會議中向您介紹我們的財務表現。

Last week we announced the closing of a $1.45 billion credit facility. Today we are following up on last week's release by announcing that our Board of Directors has authorized a share buyback of up to $1.5 billion over three years.

上週我們宣布關閉 14.5 億美元的信貸安排。今天，我們繼上週發布的消息之後宣布，我們的董事會已授權在三年內回購最多 15 億美元的股票。

This initiative reflects our continued commitment to creating long-term shareholder value and signals the confidence we have for the future of our global nutrition business. We accomplished some important milestones in 2016 that position us well for growth over the next 10 years.

這項舉措反映了我們對創造長期股東價值的持續承諾，並表明我們對全球營養業務的未來充滿信心。2016 年，我們實現了一些重要的里程碑，為我們未來 10 年的成長奠定了良好的基礎。

In the US, we have business builders and consumers of our products. Since October, approximately 300,000 people have converted to, or signed up as preferred members, people who love our products and want to enjoy them at a discount. This figure should leave no doubt in anyone's mind that there is genuine customer demand for our Herbalife Nutrition products. We have developed and ushered in new tools and technology that greatly enhance our customer data analytics.

在美國，我們有我們產品的業務創建者和消費者。自 10 月以來，大約有 30 萬人已轉換為或註冊為優先會員，他們熱愛我們的產品並希望以折扣價享受我們的產品。這個數字應該讓任何人都清楚知道，客戶對我們的康寶萊營養產品有真正的需求。我們開發並引入了新的工具和技術，大大增強了我們的客戶數據分析。

We are in a special position to learn from our customers' spending histories and interactions with our distributors. With this trove of data, we will better understand the nutrition products and services that they might want in the future. What's more is we apply robust consumer intelligence through our distributor network, we will take our personalized customer experience to a whole new level.

我們處於一個特殊的位置，可以從客戶的消費歷史以及與經銷商的互動中了解情況。有了這些數據，我們將更了解他們未來可能想要的營養產品和服務。更重要的是，我們透過我們的經銷商網路應用強大的消費者情報，我們將把我們的個人化客戶體驗提升到一個全新的水平。

On the product front in 2016, we launched over 460 new products and product line extensions across our markets worldwide. Our launches included new flavors of our best selling tea, aloe and Formula 1 shake ranges and new products in more targeted areas of nutrition, including immunity, digestion and heart health.

在產品方面，2016 年，我們在全球市場推出了 460 多種新產品和產品線擴展。我們推出的產品包括最暢銷的茶、蘆薈和一級方程式奶昔系列的新口味，以及更有針對性的營養領域的新產品，包括免疫、消化和心臟健康。

All these launches will enable us to better satisfy the taste, preferences and nutrition needs of our customers worldwide. And as announced today to further advance healthier living through good nutrition, we have reached an agreement in principle to form a joint venture with Tasly Holding Group, a leading health products and services corporation.

所有這些產品的推出將使我們能夠更好地滿足全球客戶的口味、偏好和營養需求。正如今天宣布的那樣，為了透過良好的營養進一步促進更健康的生活，我們已原則上達成協議，與領先的健康產品和服務公司天士力控股集團組成合資企業。

Based in Tianjin, China, Tasly manages a broad spectrum of pharmaceutical and consumer health products, healthcare services and distribution channels in China. The joint venture will develop and commercialize high quality consumer health products based on Tasly's deep portfolio of proprietary formulations, patents and clinical studies by leveraging Herbalife scientific regulatory and commercial development expertise to bring products to a global market through Herbalife's distributor network. The proposed joint venture furthers our business plan to expand our product range globally.

天士力總部位於中國天津，在中國管理廣泛的藥品和消費者保健產品、醫療保健服務和分銷管道。該合資企業將利用康寶萊的科學監管和商業開發專業知識，基於天士力深厚的專有配方、專利和臨床研究組合，開發和商業化高品質的消費者健康產品，透過康寶萊的分銷網絡將產品推向全球市場。擬議的合資企業進一步推進了我們在全球範圍內擴大產品範圍的業務計劃。

Tasly's extensive patent portfolio, clinical research and traceability of key ingredients are an excellent complement to our Seed to Feed strategy. It's a natural partnership, strategic collaboration and we look forward to working with Tasly.

天士力廣泛的專利組合、臨床研究和關鍵成分的可追溯性是對我們的「種子到飼料」策略的絕佳補充。這是一種自然的夥伴關係、策略合作，我們期待與天士力的合作。

In operations, we continue to expand our world-class innovation and manufacturing facilities worldwide. In July, we started operations at our new production facility in Nanjing to support our business in China. We expanded our state-of-the-art manufacturing facility in Winston-Salem, North Carolina, which now produces 400 products, serves more than 50 markets and employs about 1,000 people.

在營運方面，我們繼續在全球範圍內擴展我們世界一流的創新和製造設施。7 月，我們在南京的新生產工廠開始運營，以支持我們在中國的業務。我們擴建了位於北卡羅來納州溫斯頓塞勒姆的最先進的製造工廠，該工廠現在生產 400 種產品，服務於 50 多個市場，擁有約 1,000 名員工。

We will be hosting our Herbalife Nutrition Honors Event in Winston-Salem in March, so that over 3,000 of our top distributors from around the world can experience this incredible facility first hand. We now self-manufacture about 65% of our products and are setting the standard for our industry in quality manufacturing. While most of our markets performed well in 2016, we continue to work through the challenges in Brazil, Korea and China. I want to take a few moments to talk about the unique circumstances of all three markets, and what we're doing to improve them.

我們將於 3 月在溫斯頓塞勒姆舉辦康寶萊營養榮譽活動，以便來自世界各地的 3,000 多名頂級經銷商能夠親身體驗這個令人難以置信的設施。現在，我們約 65% 的產品是自行製造的，並正在為我們的行業制定品質製造標準。雖然我們的大部分市場在 2016 年表現良好，但我們仍繼續努力應對巴西、韓國和中國的挑戰。我想花一些時間談談這三個市場的獨特情況，以及我們正在採取哪些措施來改善它們。

In Brazil, we're ushering in business changes to focus our distributors on daily consumption and other methods that we expect will enable more sustainable customer growth. However, we face a particularly challenging Brazilian economy and a unique challenge in consumer credit that is affecting many companies. And as a result, it is taking us longer to turn the market around than we would like.

在巴西，我們正在迎來業務變革，讓我們的經銷商將重點放在日常消費和其他我們預計將實現更永續的客戶成長的方法上。然而，我們面臨著特別具有挑戰性的巴西經濟以及影響許多公司的消費信貸方面的獨特挑戰。結果，我們扭轉市場的時間比我們希望的要長。

In Korea, we face the number of challenges, but we are encouraged on several fronts. For instance, our distributor leaders are eagerly building back their businesses and incorporating many of the daily consumption methods that we have seen proven successful in other markets like Russia and Mexico. As evidenced, we are pleased to see Korean supervisor activity rates grow by 20% last year.

在韓國，我們面臨許多挑戰，但我們在幾個方面受到鼓舞。例如，我們的經銷商領導者正在急切地重建他們的業務，並融入許多日常消費方法，這些方法在俄羅斯和墨西哥等其他市場已被證明是成功的。事實證明，我們很高興看到去年韓國主管活動率增加了 20%。

We know from our experience in our Russian speaking markets in Europe and more recently in Southeast Asia that, moving toward daily consumption can take time, especially when it's coupled with a challenging market condition. But in all three of these examples, the changes eventually resulted in a stronger and more sustained growth. China faces a different issue and quite frankly, we fell short in the second half of the year. Perhaps nowhere in the world have our nutrition products been embraced more enthusiastically than in China, our third largest market.

根據我們在歐洲俄語市場以及最近在東南亞的經驗，我們知道，轉向日常消費可能需要時間，特別是在市場條件充滿挑戰的情況下。但在所有這三個例子中，這些變化最終帶來了更強勁、更持續的成長。中國面臨不同的問題，坦白說，我們在今年下半年表現不佳。也許世界上沒有任何地方比我們的第三大市場中國更受我們的營養產品歡迎。

Our Chinese customers trust and value our premium quality nutrition brand and we have more active distributors in China than ever before. As a result over the past few years and into early 2016 we saw exceptional growth. However, in the second half of 2016, we saw a decline in our business. To this end, we have clearly identified the issues leading to the downturn and are confident that we have mapped out a plan that will return us to growth as we progress through 2017. Part of this plan relies heavily on going back to the basics, focusing on the importance of one-on-one personal relationships between distributors and their customers.

我們的中國客戶信任並重視我們的優質營養品牌，我們在中國擁有比以往任何時候都更活躍的經銷商。因此，在過去幾年和 2016 年初，我們看到了非凡的成長。然而，2016年下半年，我們的業務出現了下滑。為此，我們已經清楚地確定了導致經濟衰退的問題，並有信心製定出一項計劃，使我們在 2017 年取得進展時恢復成長。該計劃的一部分在很大程度上依賴回歸基礎，重點關注分銷商與其客戶之間一對一個人關係的重要性。

That was a catalyst to our success in China over the past several years. As we described in our last earnings call, while increased use of social media helped introduce Herbalife Nutrition to millions of Chinese consumers, it should've been used to complement not replace the high touch personal interactions with consumers.

這是我們過去幾年在中國取得成功的催化劑。正如我們在上次財報電話會議中所述，雖然社交媒體的使用增加有助於將康寶萊營養品介紹給數百萬中國消費者，但它應該被用來補充而不是取代與消費者的高接觸個人互動。

With all that said, on a global front, we achieved record volume growth and sales leadership retention in 2016. Volume points increased nearly 5% compared to 2015 to a record $5.6 billion. We grew volume in all but one region in 2016.

儘管如此，在全球範圍內，我們在 2016 年實現了創紀錄的銷售成長並保持了銷售領先地位。與 2015 年相比，成交量增加了近 5%，達到創紀錄的 56 億美元。2016 年，除一個地區外，我們在所有地區的銷售量均有所成長。

Sales leader retention rate reached a record 60.9%, compared to 54.2% in 2015. Despite the distractions, our US market grew volume for the year by 8.1%, and our sales leader retention in the US grew to 75.3% last year, further demonstrating our distributors' commitment to the business. At our core, we are about improving nutrition and helping people lead healthy lives. At Herbalife Nutrition, we have understood for 37 years that a personalized approach to nutrition, fitness and overall well-being generates the best results.

銷售主管保留率達到創紀錄的 60.9%，而 2015 年為 54.2%。儘管有這些幹擾，我們的美國市場銷售今年仍成長了 8.1%，去年我們在美國的銷售領導者保留率成長至 75.3%，進一步證明了我們的經銷商對業務的承諾。我們的核心是改善營養並幫助人們過上健康的生活。在康寶萊營養公司，37 年來我們一直明白，個人化的營養、健身和整體健康方法可以產生最佳效果。

At the same time, we continue to see consumer shy away from brick-and-mortar stores, and just this year national retailers announced the closure of more than 1,000 retail locations in the US alone. Price competition explains some of these closures, but so too does the idea that consumes are seeking retail experiences that personalize service to their specific wants and needs.

同時，我們繼續看到消費者迴避實體店，光是今年，全國零售商就宣布僅在美國關閉 1,000 多個零售店。價格競爭解釋了其中一些關閉的原因，但消費者尋求零售體驗以根據他們的特定需求提供個人化服務的想法也是如此。

What will really lead the next 10 years in nutrition retail is combining our great product range with the voice and personal support mentorship of a distributor coach. These incredible men and women walk their customers step-by-step through the process in the journey of making great nutrition choices, as part of an overall plan that balances healthy eating and exercise.

未來 10 年真正引領營養品零售業的是將我們優質的產品系列與經銷商教練的聲音和個人支援指導相結合。這些令人難以置信的男人和女人帶領他們的顧客一步步完成做出優質營養選擇的過程，作為平衡健康飲食和運動的整體計劃的一部分。

This is a powerful person-to-person approach to our customers, and it is an approach that is helping us move nutrition and wellness, and the use of our products from occasional to daily consumption. As I'd like to say, through our distributors and through our data analytics, we have booked a biorhythm and an algorithm. As I said in my opening, 2016 is the beginning of the next decade for our Company.

對於我們的客戶來說，這是一種強大的人對人的方法，它正在幫助我們將營養和健康以及我們產品的使用從偶爾消費轉變為日常消費。正如我想說的，透過我們的經銷商和數據分析，我們已經預訂了生物節律和演算法。正如我在開場白中所說，2016 年是我們公司下一個十年的開始。

In June, our COO and my colleague, Richard Goudis will take over as CEO of Herbalife. As Executive Chairman, I look forward to working closely with Rich as he runs our Company day-to-day to assist him with the strategic decisions we have ahead of us, and also to engaging, motivating and inspiring our distributors globally.

六月，我們的營運長和我的同事理查德·古迪斯 (Richard Goudis) 將接任康寶萊執行長。身為執行主席，我期待與 Rich 密切合作，幫助他日常管理我們的公司，協助他制定我們面臨的策略決策，並吸引、激勵和激勵我們的全球經銷商。

Rich and I both believe, more than ever, that Herbalife Nutrition has the most powerful distribution network anywhere. Through the incredible work of our distributors and the quality of our nutrition products, we have earned the right to enter our customers' daily routine and own the last mile in the journey to many millions of customers. Over the coming years, we have an incredible opportunity to use that channel to make a difference in more people's lives than ever before. Now let me hand it over to Rich, who will talk more in detail about our FTC implementation.

我和里奇都比以往任何時候都更相信康寶萊營養擁有全球最強大的分銷網絡。透過我們經銷商的出色工作和營養產品的質量，我們贏得了進入客戶日常生活的權利，並擁有數百萬客戶旅程的最後一英里。在未來的幾年裡，我們有一個難以置信的機會利用這個管道來改變更多人的生活。現在讓我將其交給 Rich，他將更詳細地討論我們的 FTC 實施情況。

Thank you, Michael. And good afternoon everyone. 2017 will be transformational year for our Company, as we implement retail sales tracking in the US, we are beginning to gather new consumer data and insights to help us to advance our strategic, operational and organizational approach to growth.

謝謝你，麥可。大家下午好。2017 年對我們公司來說將是轉型的一年，隨著我們在美國實施零售銷售跟踪，我們開始收集新的消費者數據和見解，以幫助我們推進策略、營運和組織成長方法。

In an industry that can at times be labeled opaque, we are working hard to modernize the nature of our business. We've embraced this opportunity to complement our successful distribution efforts over the past 37 years with data-driven strategies to engage consumers on a far more personalized level, both through our distributors and directly with their consent.

在一個有時被貼上不透明標籤的行業中，我們正在努力實現業務性質的現代化。我們抓住這個機會，透過數據驅動的策略來補充我們在過去 37 年中成功的分銷工作，透過我們的經銷商或直接在他們同意的情況下，以更個性化的方式吸引消費者。

By mining this smart data, we can evaluate customer behavior patterns and usher in CPG-type loyalty, sales and marketing initiatives that will create a new catalyst for growth for our Company. On our last earnings, we informed you that we had initiated a program in October in the United States that allowed existing distributors affirmatively self select the new status of preferred member. A preferred member at Herbalife Nutrition is an individual who exclusively joins to purchase our products, at a discount, may not resell our products or recruit someone into the business and is not eligible for any form of compensation from Herbalife.

透過挖掘這些智慧數據，我們可以評估客戶行為模式，並推出 CPG 型忠誠度、銷售和行銷舉措，這將為我們公司的成長創造新的催化劑。在我們上次的財報中，我們通知您，我們已於 10 月在美國啟動了一項計劃，允許現有經銷商自行選擇新的首選會員資格。康寶萊營養的首選會員是專門加入以折扣價購買我們產品的個人，不得轉售我們的產品或招募人員進入該業務，並且沒有資格從康寶萊獲得任何形式的補償。

We shared with you early in November that we had approximately 50,000 preferred members at that time. As this self-selection conversion continued throughout the end of 2016, beginning in mid-January, new individual signing-up were able to select the category that best match their expectations. As a result of these conversions, of our existing members, coupled with new people signing up since January 12, the total number of preferred members has increased to approximately 300,000, clearly demonstrating that we have many members who are frequent users and purchasers of our products.

我們在 11 月初與您分享，當時我們大約有 50,000 名優先會員。隨著這種自我選擇的轉變持續到 2016 年底，從 1 月中旬開始，新的個人註冊者能夠選擇最符合他們期望的類別。透過這些轉換，我們的現有會員加上自 1 月 12 日以來註冊的新會員，首選會員總數已增加至約 300,000 名，清楚地表明我們有許多會員是我們產品的頻繁用戶和購買者。

Let me reiterate, by affirmatively choosing to be a preferred member, these individuals acknowledge that they do not seek to sell products nor build a sales organization. With this self selected designation, which is approximately half of the US member base and growing, we have affirmatively identified members who are discount product customers versus distributors and as a result put to rest all doubt about the genuine consumer demand for our nutrition products.

讓我重申，透過積極選擇成為首選會員，這些人承認他們並不尋求銷售產品或建立銷售組織。透過這項自選稱號（約占美國會員基數的一半並且還在不斷增長），我們明確地確定了折扣產品客戶與分銷商的會員，從而消除了消費者對我們營養產品真正需求的所有懷疑。

While the segmentation of preferred members is exceeding our expectations to date in terms of the number of preferred members, more importantly is the documented volume that this group represents is also exceeding our expectations to-date. As of the other day, we have nearly achieved the volume target that we estimated this group would achieve by May of 2017.

雖然首選會員的細分在首選會員數量方面超出了我們迄今為止的預期，但更重要的是，該群體所代表的記錄量也超出了我們迄今為止的預期。截至前幾天，我們已接近實現我們預計該組將在 2017 年 5 月之前實現的銷售目標。

Let me clarify some confusion related to the 80% rule in the FTC order. As many of you are aware, we will continue to reward compensation to our distributors in the US on properly documented retail sales, including reasonable levels of personal consumption.

讓我澄清一些與 FTC 命令中 80% 規則相關的困惑。正如你們許多人所知，我們將繼續向我們在美國的經銷商提供適當記錄的零售銷售獎勵，包括合理的個人消費水準。

Starting in May, the key change is that these rewards in the US will be based on the final sales to end consumers as opposed to the initial sale from the Company to a distributor. If the total of these documented sales meets or exceeds 80% of the total US retail sales, then the Company will be able to payout additional compensation on these documented sales. However, if documented sales are below 80% of the US retail sales, then the payout on documented sales will be capped at 10% above the total documented sales value.

從五月開始，關鍵的變化是，美國的這些獎勵將基於對最終消費者的最終銷售，而不是公司對經銷商的初始銷售。如果這些有記錄的銷售總額達到或超過美國零售總額的 80%，那麼公司將能夠對這些有記錄的銷售支付額外補償。但是，如果記錄銷售額低於美國零售額的 80%，則記錄銷售額的支出將上限為記錄銷售額總額以上的 10%。

We have a few slides included on our last investor presentation that further describes the 80% methodology and you can find this information on our investor website. As of today, we are currently tracking close to 60% towards the 80% threshold. To be clear, and let me hit this point hard, the 80% is not a compliance requirement, but a threshold that if passed would allow the Company to payout higher rewards for existing documented retail sales. With the success of segmentation and documented volume from preferred members, we have now placed all of our energy towards the education and training of our distributors to increase the utilization of the newly developed receipting tools and distributor ordering website.

我們上次的投資者簡報中包含了幾張投影片，進一步描述了 80% 的方法，您可以在我們的投資者網站上找到這些資訊。截至今天，我們正朝著 80% 的門檻前進近 60%。需要明確的是，讓我重點強調這一點，80% 不是合規要求，而是一個門檻，如果通過該門檻，公司將能夠為現有記錄的零售額支付更高的獎勵。隨著首選會員細分和記錄量的成功，我們現在將所有精力投入經銷商的教育和培訓上，以提高新開發的收貨工具和經銷商訂購網站的使用率。

Over the past three months, we have made great strides in the development and rollout of innovative digital tools to meet the specific needs of our distributors and preferred members. We are fortunate to have an amazing technology team of over 400 employees based in our tech centers in Los Angeles, Bangalore, Kuala Lumpur and Guadalajara, who had implemented new online ordering platforms designed for each distinct group.

在過去的三個月裡，我們在開發和推出創新數位工具方面取得了長足進步，以滿足我們的經銷商和首選會員的特定需求。我們很幸運，在洛杉磯、班加羅爾、吉隆坡和瓜達拉哈拉的技術中心擁有一支由 400 多名員工組成的出色技術團隊，他們實施了為每個不同群體設計的新線上訂購平台。

And just as important, we have a core senior distributor leadership group that has been extremely active in assisting in the development and beta testing of these receipt tools and new websites. In fact, as we speak, we have over three dozen distributors at our LA tech center, who are participating in our third series of distributor testing and working on the next evolutionary release of these new tools.

同樣重要的是，我們擁有一個核心高階經銷商領導小組，他們一直非常積極地協助這些收據工具和新網站的開發和 Beta 測試。事實上，正如我們所說，我們的洛杉磯技術中心有超過三打分銷商，他們正在參與我們的第三系列分銷商測試，並致力於這些新工具的下一個進化版本。

We designed the distributor ordering platform for people looking to build the business. The new site features the ability to build and customize the shopping cart for their customers, a place where they can safely maintain their customers' contact details and CRM type functionality to track their business intelligence metrics similar to the functionality you might find from site such as salesforce.com.

我們為希望建立業務的人們設計了經銷商訂購平台。新網站能夠為其客戶建立和客製化購物車，他們可以在其中安全地維護客戶的聯絡資訊和 CRM 類型功能，以追蹤其商業智慧指標，類似於您可能在網站上找到的功能，例如salesforce.com 。

The new preferred member site is more consumer-minded and includes features more common to the shopping experience on sites like Amazon, for example, suggestive selling and pairing of products, information about our nutrition products and ingredients, along with fitness advice and meal plans are all available. To ensure we provide the very best products and services and continually enhance the online experience, we will closely track how distributors and preferred members navigate their respective sites, including recommended products and actual purchases.

新的首選會員網站更以消費者為中心，包括亞馬遜等網站購物體驗中更常見的功能，例如，產品的建議性銷售和搭配、有關我們的營養產品和成分的信息，以及健身建議和膳食計劃。全部可用。為了確保我們提供最好的產品和服務並不斷增強線上體驗，我們將密切追蹤經銷商和首選會員如何瀏覽各自的網站，包括推薦產品和實際購買。

In mid-November, we launched the pilot phase of the Herbalife Point of Sale tool, essentially a beta version. This iOS and Android mobile application has truly enhanced the distributor user experience, allowing them to place customer orders, record customer activity including individual consumption and nutrition clubs, accept various forms of payment and generate receipts directly on their mobile devices. It also provides full visibility into their levels of retail volume and all transaction activity and information is stored securely on our Company's Oracle database.

11 月中旬，我們啟動了康寶萊銷售點工具的試點階段，本質上就是測試版。這款iOS 和Android 行動應用程式真正增強了經銷商的用戶體驗，使他們能夠下客戶訂單、記錄客戶活動（包括個人消費和營養俱樂部）、接受各種形式的付款並直接在行動裝置上產生收據。它還可以全面了解其零售量水平，並且所有交易活動和資訊都安全地儲存在我們公司的 Oracle 資料庫中。

Throughout this whole implementation period, our distributor leaders in the US have been incredible partners and have been highly engaged to ensure proper retail sales tracking. For example, in early January, the company hosted training of our most senior US leaders in San Antonio, and they later engaged with their organizations at 51 kick-off meetings around the country. These training and education events had record attendance exceeding 25,000 people.

在整個實施期間，我們在美國的經銷商領導者一直是令人難以置信的合作夥伴，並且高度參與以確保正確的零售銷售追蹤。例如，1 月初，該公司在聖安東尼奧舉辦了美國最高領導者的培訓，隨後他們在全國各地舉行的 51 場啟動會議上與其組織進行了交流。這些培訓和教育活動的參與人數創歷史新高，超過 25,000 人。

We are beginning to see the results of the training and the utilization of the tools. In January, for example, we processed approximately 196,000 receipts through our tools. This month, in February, we expect to receive over and process over 700,000 receipts, which is a dramatic pick-up and reflects the improving utilization for our US distributors.

我們開始看到培訓和工具使用的結果。例如，一月份，我們透過我們的工具處理了大約 196,000 張收據。本月，即 2 月份，我們預計將收到並處理超過 70 萬張收據，這是一個巨大的成長，反映出我們美國經銷商利用率的提高。

As we approach May, we expect to process an excess of 2 million receipts each month. Imagine that figure, imagine the robust systems in technology backbone we've built to accommodate this activity, and above all, imagine the information we will possess. Information that will provide improved insights into consumers of our products, just amazing and extremely exciting.

隨著 5 月的臨近，我們預計每月處理超過 200 萬張收據。想像一下這個數字，想像一下我們為適應這項活動而建構的強大的技術骨幹系統，最重要的是，想像一下我們將擁有的資訊。這些資訊將讓我們更了解我們產品的消費者，這真是令人驚奇且極其令人興奮。

For distributors who may not be aware of the new digital tools, we're proactively reaching out over the phone and in-person to provide education, training and guidance. And to complement these efforts, we launched a promotion in the US last week that incentivizes distributors to document their volume, utilizing these new technology tools.

對於可能不了解新數位工具的經銷商，我們正在積極透過電話和麵對面的方式提供教育、培訓和指導。為了補充這些努力，我們上週在美國推出了一項促銷活動，鼓勵經銷商利用這些新技術工具記錄其銷售量。

And if all these tools weren't enough to enhance our distributors' business, last week, we introduced a new Loyal Customer Program as an incentive and reward for retail customers to interact directly with our distributors. The loyalty program includes awards, access to a special portal on the GoHerbalife website, and educational materials for customers, all aimed to helping distributors improve the activity, longevity, and retention of their customers.

如果所有這些工具還不足以增強我們經銷商的業務，上週我們推出了新的忠誠客戶計劃，作為零售客戶與我們的經銷商直接互動的激勵和獎勵。忠誠度計劃包括獎勵、訪問 GoHerbalife 網站上的特殊入口網站以及為客戶提供的教育材料，所有這些都旨在幫助經銷商提高客戶的活躍度、壽命和保留率。

We believe complying with the FTC order will create a barrier to entry, here in the US market, for our Company and other companies that change their business practices. The advances we are making in segmentation of our members, which clearly delineates discount product customers versus distributors, the introduction of the new technologies and the creation of smart customer data will provide us with further competitive advantage, enhanced visibility into consumer behavior and preference will be a huge advantage for us.

我們相信，遵守聯邦貿易委員會的命令將為我們公司和其他改變其商業慣例的公司進入美國市場設置障礙。我們在會員細分方面取得的進展，清楚地劃分了折扣產品客戶與分銷商，新技術的引入和智慧客戶資料的創建將為我們提供進一步的競爭優勢，增強對消費者行為和偏好的可見性。對我們來說是一個巨大的優勢。

Our distributors' personal relationship with their customers and the unique permission those consumers give to our distributors to help them achieve their nutrition goals combined with a well known go-to-market strategies with successful CPG companies, places us in an enviable position to leverage the last mile into millions of homes around the world. We're excited with what lies ahead of us. With this, let me turn it over to John for a review of our financials.

我們的經銷商與其客戶的個人關係，以及消費者給予我們經銷商的獨特許可，以幫助他們實現營養目標，再加上成功的CPG 公司眾所周知的進入市場策略，使我們處於令人羨慕的地位，可以利用進入全球數百萬家庭的最後一英里。我們對即將發生的事情感到興奮。有了這個，讓我把它交給約翰來審查我們的財務狀況。

Thank you, Rich. Today, I'll go through the Company's fourth quarter and full year 2016 reported and adjusted results, our new bank deal and recently Board approved share repurchase program. And will conclude with our first quarter and full year of 2017 guidance.

謝謝你，里奇。今天，我將介紹公司 2016 年第四季和全年的報告和調整後業績、我們的新銀行交易以及最近董事會批准的股票回購計畫。最後我們將發布 2017 年第一季和全年指引。

For the fourth quarter, worldwide volume points were 1.3 billion, which was approximately 1% below the fourth quarter in 2015. The lower volume was driven by the decline in China and a difficult comparison for India and Indonesia, during the fourth quarter of last year. Whereas noted last year, we had a price increase in Q4 2015 in both of these countries which had the effect of pulling forward 15 million to 20 million volume points into the prior year fourth quarter.

第四季全球銷量為 13 億個，比 2015 年第四季下降約 1%。銷量下降的原因是去年第四季中國銷量下降以及印度和印尼的艱難比較。正如去年所指出的，我們在 2015 年第四季度在這兩個國家/地區都進行了價格上漲，這使得去年第四季度的銷量點提前了 1500 萬至 2000 萬點。

For the year, worldwide volume points grew approximately 5% to 5.6 billion compared to 2015, which, as Michael previously noted, 2016 was a record year in volume points. Worldwide net sales for the fourth quarter were $1 billion, down 5% on a reported basis and down 1% on a constant currency basis compared to the fourth quarter in 2015. Full year 2016 worldwide net sales of $4.5 billion was flat with the prior year, while full year constant currency net sales increased 6% compared to the prior year period.

與 2015 年相比，今年全球銷量點成長了約 5%，達到 56 億，正如 Michael 先前指出的，2016 年是銷量點創紀錄的一年。第四季全球淨銷售額為 10 億美元，與 2015 年第四季相比，按報告資料計算下降 5%，以固定匯率計算下降 1%。2016 年全年全球淨銷售額為 45 億美元，與上年持平，而以固定匯率計算，全年淨銷售額與去年同期相比成長 6%。

Reported net income in the fourth quarter was $99.4 million or $1.16 per diluted share, compared to the reported net income of $84.5 million or $0.98 per diluted share for the fourth quarter in 2015. Full year 2016 reported net income was $260 million or $3.02 per diluted share, compared to reported net income of $339.1 million or $3.97 per diluted share for the full year 2015.

第四季報告淨利潤為 9,940 萬美元，即稀釋後每股收益 1.16 美元，而 2015 年第四季報告淨利潤為 8,450 萬美元，即稀釋後每股收益 0.98 美元。2016 年全年報告淨利潤為 2.6 億美元，即稀釋後每股 3.02 美元，而 2015 年全年報告淨利潤為 3.391 億美元，即稀釋後每股 3.97 美元。

Our reported EPS continues to include items that we consider to be outside of normal Company operations, or we believe will be useful to investors when analyzing period-over-period comparisons of our results. Please refer to our fourth quarter earnings press release for details of these adjustments.

我們報告的每股盈餘繼續包括我們認為不屬於公司正常營運的項目，或我們認為在分析我們績效的同期比較時對投資者有用的項目。有關這些調整的詳細信息，請參閱我們的第四季度收益新聞稿。

Adjusted diluted EPS for the fourth quarter was $1 per diluted share, which was at the high end of our guidance range of $0.80 to $1 and compared to a $1.17 per diluted share for the fourth quarter in 2015. Full year 2016 adjusted EPS was $4.85 per diluted share, which compared to $4.95 per diluted share for the full year 2015.

第四季調整後稀釋每股收益為每股 1 美元，處於我們指引範圍 0.80 至 1 美元的高端，而 2015 年第四季稀釋每股收益為 1.17 美元。2016 年全年調整後每股攤薄每股收益為 4.85 美元，而 2015 年全年攤薄每股收益為 4.95 美元。

Currency continued to have a significant impact on our results fourth quarter 2016 adjusted net income, and adjusted diluted EPS were negatively impacted by $9.5 million and $0.11 per diluted share respectively due to the impact of currency fluctuations. Both full year 2016 reported and adjusted net income were negatively impacted by $82.2 million or $0.95 per share due to the impact of foreign currency headwinds.

貨幣持續對我們的業績產生重大影響，2016 年第四季調整後淨利潤，由於貨幣波動的影響，調整後攤薄每股收益分別受到 950 萬美元和 0.11 美元的負面影響。由於外匯逆風的影響，2016 年全年報告和調整後淨利潤均受到 8,220 萬美元或每股 0.95 美元的負面影響。

For the fourth quarter, reported gross margins decreased by 16 basis points compared to the same quarter in 2015, primarily due to the unfavorable impact of foreign currency fluctuations partially offset by cost savings through strategic sourcing and self manufacturing. Fourth quarter reported SG&A as a percentage of net sales was 40.4%, approximately 60 basis points below the fourth quarter of 2015. Excluding the impact of non-GAAP items, which are disclosed in today's press release, adjusted SG&A was 39.6% of net sales, a decrease of approximately 70 basis points, compared to the prior year period. Excluding China member payments, adjusted SG&A as a percentage of net sales was 31.1%, approximately 40 basis points higher than the same quarter last year.

與2015年同季度相比，第四季度報告的毛利率下降了16個基點，主要是由於外匯波動的不利影響，但透過戰略採購和自行製造節省的成本部分抵消了影響。第四季的銷售、管理及行政費用 (SG&A) 佔淨銷售額的百分比為 40.4%，比 2015 年第四季低約 60 個基點。排除今天新聞稿中披露的非 GAAP 項目的影響，調整後的 SG&A 佔淨銷售額的 39.6%，與去年同期相比減少了約 70 個基點。不包括中國會員付款，調整後的SG&A佔淨銷售額的百分比為31.1%，比去年同期高出約40個基點。

Our reported fourth quarter effective tax rate was 26.4%, while our adjusted effective tax rate was approximately 29%, which was approximately 280 basis points higher than the adjusted tax rate for the same period in 2015, primarily due to country mix. At the end of the year, we had $844 million in cash of which approximately 62% is held in the United States.

我們報告的第四季度有效稅率為 26.4%，而調整後有效稅率約為 29%，比 2015 年同期調整後稅率高出約 280 個基點，這主要是由於國家組合所致。截至年底，我們擁有 8.44 億美元現金，其中約 62% 存放在美國。

Volume points for the US were up 1% compared to the fourth quarter 2015 as the market continues to progress through the FTC implementation. As we stated previously, these transitions can cause a short-term impact, as it can take time away from a distributor's normal sales and business building activities. However, we are pleased with the market's continued resiliency during this transition.

隨著市場在 FTC 實施過程中不斷取得進展，美國的成交量較 2015 年第四季成長了 1%。正如我們之前所說，這些轉變可能會造成短期影響，因為它可能會佔用經銷商正常銷售和業務建設活動的時間。然而，我們對市場在這轉型過程中的持續彈性感到滿意。

China's volume was lower than expected, down 11% for the quarter. As Michael stated previously, we believe the fundamentals of our business in China remain sound, and we believe we've identified strategies to address the market's performance. Mexico closed out the year with record volume, and the fourth quarter experienced volume growth of 7%. The country continues to face significant FX headwinds, as reported net sales for the fourth quarter declined 8% despite growth of 9% on a constant currency basis.

中國的銷量低於預期，本季下降 11%。正如邁克爾之前所說，我們相信我們在中國業務的基本面仍然良好，我們相信我們已經確定了應對市場表現的策略。墨西哥以創紀錄的成交量結束了這一年，第四季的成交量增加了 7%。該國繼續面臨重大的外匯阻力，據報道，儘管按固定匯率計算，第四季度淨銷售額增長了 9%，但淨銷售額下降了 8%。

In 2016, EMEA eclipsed the 1 billion volume point threshold for the first time. This record result is a great achievement for the region, which culminated with year-over-year fourth quarter growth of 5%. Volume points for the Asia Pacific region in the fourth quarter were up 1%, and up 9% excluding Korea, compared to the prior year period. Strong performances from Vietnam, Indonesia and India were partially offset by South Korea, which was down 31% year-over-year. As mentioned previously, fourth quarter 2015 price increases in India and Indonesia resulted in a pull forward of volume, which had an impact on the year-over-year volume growth comparisons. Lastly, volume points in the South and Central American region for the quarter were down 16% compared to the prior year period, led by the continued softness in Brazil, which was down 27% for the quarter.

2016 年，歐洲、中東和非洲地區首次突破 10 億銷量點門檻。這項創紀錄的業績對該地區來說是一項偉大成就，第四季年增 5%。與去年同期相比，第四季亞太地區的銷量成長了 1%，不包括韓國則成長了 9%。越南、印尼和印度的強勁表現被韓國年減 31% 部分抵消。如前所述，2015 年第四季印度和印尼的價格上漲導致銷售提前，這對年銷售成長產生了影響。最後，本季南美洲和中美洲地區的成交量較去年同期下降 16%，其中巴西持續疲軟，該地區本季下降 27%。

Moving onto retention, as previously highlighted by Michael, 60.9% was a new world-wide record requalification rate for the last 12 month requalification period ending January 2017. This figure also excludes sales leaders in the United States who have converted to preferred members, as those individuals were not eligible for requalification. Had those individuals been included in the calculation, the figure would have been a record 59.3%.

至於保留率，正如 Michael 之前所強調的那樣，60.9% 是截至 2017 年 1 月的過去 12 個月重新資格期間的全球新紀錄重新資格率。這個數字還不包括已轉為優先會員的美國銷售領導者，因為這些人沒有資格重新獲得資格。如果將這些人納入計算中，這一數字將達到創紀錄的 59.3%。

As a reminder, when we implemented the marketing plan changes a couple of years ago, we stated we expected the changes to be visible in the retention rates as of January 2017. This result demonstrates the ongoing progression of our business. We accomplished a lot in 2016; record volume, record sales leader retention rates and progression of the FTC implementation, and we're off to a solid start in 2017. We have successfully closed our new $1.45 billion credit facility and new $1.5 billion Board authorized share repurchase program.

提醒一下，當我們幾年前實施行銷計畫變更時，我們表示預計這些變更將在 2017 年 1 月的保留率中體現出來。這一結果顯示我們業務的持續發展。2016年我們取得了許多成績；創紀錄的銷售量、創紀錄的銷售領先者保留率以及 FTC 實施的進展，我們在 2017 年有了一個良好的開端。我們已成功完成新的 14.5 億美元信貸安排和新的 15 億美元董事會授權股票回購計畫。

On February 15, we announced the close of our $1.45 billion credit facility, which consists of a $115 million revolving credit facility maturiting in 2022 and a $1.3 billion term loan maturing in 2023. With this new facility, we have paid down the $410 million revolver, which would have expired in March of 2017. We believe the remaining funds combined with the strength of our balance sheet will allow us to capitalize on our global market potential. In addition, this financial flexibility will enable us to further create long-term value for our shareholders through investments that include share repurchases.

2 月 15 日，我們宣布結束 14.5 億美元的信貸安排，其中包括 2022 年到期的 1.15 億美元循環信貸安排和 2023 年到期的 13 億美元定期貸款。透過這項新貸款，我們已經還清了 4.1 億美元的左輪手槍，該款項本應於 2017 年 3 月到期。我們相信剩餘資金加上我們資產負債表的實力將使我們能夠充分利用我們的全球市場潛力。此外，這種財務靈活性將使我們能夠透過包括股票回購在內的投資進一步為股東創造長期價值。

Also as announced today, our Board of Directors authorized a new three-year $1.5 billion share repurchase program, replacing the prior authorization that had $233 million remaining. This buyback authorization will focus on creating long-term value for our shareholders. We currently expect the combination of the new debt deal and the impact of the share repurchase program to be accretive to earnings per share in 2018. But it will likely be dilutive in 2017 because of the timing difference between the closing of the debt deal and the likely execution of any share buyback program.

另外，正如今天宣布的那樣，我們的董事會授權了一項為期三年、價值 15 億美元的新股票回購計劃，取代了先前剩餘 2.33 億美元的授權。此次回購授權將專注於為我們的股東創造長期價值。我們目前預計新債務交易和股票回購計畫的影響相結合將增加 2018 年的每股盈餘。但由於債務交易完成和任何股票回購計劃可能執行之間的時間差異，2017 年它可能會被稀釋。

Additionally, because of the timing, price, and the amounts for the share repurchase activity are not predictable at this time, any impact to the share base from repurchasing stock in 2017 has been excluded from our current guidance. However, since the new debt deal is closed and its costs are known, such costs have been included in our new guidance.

此外，由於目前股票回購活動的時間、價格和金額無法預測，2017 年股票回購對股本的任何影響已被排除在我們目前的指引之外。然而，由於新的債務交易已經完成且其成本已知，因此此類成本已包含在我們的新指引中。

To summarize, 2017 adjusted EPS and volume guidance remains unchanged from the guidance provided a few weeks ago in our 8-K filing, other than adding the cost of the new debt deal, but excluding the impact of any share repurchases. With this modification in mind, guidance for volume points for the full year 2017 remain unchanged and are estimated to grow in a range of 2% to 5% with first quarter 2017 volume points expected to be down 5% to 1%.

總而言之，2017 年調整後每股盈餘和銷售指引與幾週前我們在 8-K 文件中提供的指引保持不變，除了增加了新債務交易的成本，但不包括任何股票回購的影響。考慮到這項修改，2017 年全年銷售點指引保持不變，預計將成長 2% 至 5%，而 2017 年第一季銷售點預計將下降 5% 至 1%。

We continue to expect net sales be negatively impacted by currency headwinds. For the full year 2017, we estimate net sales to increase 0.3% to 3.3%; while currency adjusted net sales are expected to increase 3.6% to 6.6%, slightly down from our previous range of 3.9% to 6.9%, primarily due to country mix. For the first quarter, we estimate reported net sales to be down 9% to 5%, or down 7.2% to 3.2% on a constant currency basis.

我們仍預期淨銷售額將受到貨幣逆風的負面影響。對於2017年全年，我們預計淨銷售額將成長0.3%至3.3%；貨幣調整後的淨銷售額預計將成長 3.6% 至 6.6%，略低於我們先前設定的 3.9% 至 6.9%，這主要是由於國家組合的影響。我們預計第一季報告的淨銷售額將下降 9% 至 5%，或以固定匯率計算下降 7.2% 至 3.2%。

From an EPS standpoint, excluding the impact of share repurchase, full year 2017 reported diluted EPS is expected to be in a range of $2.95 to $3.35 with adjusted diluted EPS guidance in a range of $3.65 to $4.05. For the first quarter 2017 reported diluted EPS is estimated to be in the range of $0.50 to $0.70 and adjusted diluted EPS is expected to be in the range of $0.75 to $0.95.

從每股盈餘的角度來看，排除股票回購的影響，預計2017 年全年稀釋後每股盈餘將在2.95 美元至3.35 美元之間，調整後稀釋後每股盈餘指引將在3.65 美元至4.05美元之間。2017 年第一季報告的攤薄每股收益預計在 0.50 美元至 0.70 美元之間，調整後攤薄每股收益預計在 0.75 美元至 0.95 美元之間。

The full year estimates for adjusted EPS only differ from the estimates provided a few weeks ago due to the cost of the new debt deal. Additionally, both full year and first quarter EPS estimates include a projected currency headwind of approximately $0.50 and $0.10 for diluted share respectively compared to 2016.

由於新債務交易的成本，調整後每股收益的全年預測僅與幾週前提供的預測不同。此外，與 2016 年相比，全年和第一季每股收益預期均包括預計稀釋後份額約 0.50 美元和 0.10 美元的貨幣阻力。

Capital expenditures for the first quarter are estimated to be within a range of $15 million to $25 million and for the full year within the range of $125 million to $155 million, a decrease of $5 million from previous guidance. I will now turn the call back to Michael before taking questions. Thank you.

第一季的資本支出預計在 1,500 萬美元至 2,500 萬美元之間，全年資本支出預計在 1.25 億美元至 1.55 億美元之間，比先前的指導減少了 500 萬美元。現在，在回答問題之前，我將把電話轉回給邁克爾。謝謝。

Thank you, John and Rich. The time is coming when the consumers should expect products, services and content to be customized and delivered to meet their personal wants and needs. We believe Herbalife Nutrition remains ahead of the curve, and is well-positioned to activate our independent distributors towards improving people's lives through better nutrition and in fitness every day. As we continue to support all of our regions on this journey, and as we understand even more about our customers' nutrition habits through data, we see a very bright future for our business and our nutrition purpose.

謝謝約翰和里奇。消費者期望產品、服務和內容能夠客製化和交付以滿足他們的個人需求的時代即將到來。我們相信康寶萊營養品仍然處於領先地位，並且處於有利地位，可以激勵我們的獨立經銷商透過每天更好的營養和健身來改善人們的生活。隨著我們在這趟旅程中繼續支持我們所有的地區，並且透過數據更多地了解客戶的營養習慣，我們看到了我們的業務和我們的營養目標的一個非常光明的未來。

I would like to take this opportunity to thank our incredible employees, our distributors, customers, and our shareholders for everything they do to help us serve our nutrition purpose in the world. Okay. Let's open it up to questions.

我想藉此機會感謝我們出色的員工、分銷商、客戶和股東為幫助我們實現全球營養目標所做的一切。好的。讓我們開放提問。

Our first question is from the line of April Scee from RenMac.

我們的第一個問題來自 RenMac 的 April Scee。

Hi, April. I'm not sure if April is there. Next question please, operator.

嗨，四月。我不確定四月是否還在。接線員，請下一個問題。

Certainly. Our next question is from the line of Tim Ramey from Pivotal Research Group.

當然。我們的下一個問題來自 Pivotal Research Group 的 Tim Ramey。

Thanks so much.

非常感謝。

Hey, Tim.

嘿，提姆。

If we were thinking about the May 15 implementation, where would you say you are in terms of percentage completion of your task, essentially there, 95% there, there's still a little bit more work to do? How would you characterize that?

如果我們考慮 5 月 15 日的實施，您會說您的任務完成百分比是多少，基本上是 95%，還有一些工作要做？您如何形容這一點？

Yes. Tim, this is Rich. I think in terms of tasks, I think all but really going live and turning on the new compensation system; everything else is either completed or just about complete. So, we feel very confident from the amount of tasks and we shared with you a lot of insights and data and numbers on how we're progressing on some very key metrics.

是的。提姆，這是里奇。我認為就任務而言，我認為幾乎所有的工作都在真正上線並開啟新的薪酬系統；其他一切要么已完成，要么即將完成。因此，我們對大量的任務感到非常有信心，我們與您分享了許多關於我們在一些非常關鍵指標上取得進展的見解、數據和數字。

And more importantly, listen, half of the US population today for our member base are preferred customers, discount customers who can't resell the product or who don't want to sign up with somebody else. So, we put to rest all of the hog wash out there about not having real customers.

更重要的是，聽著，今天我們的會員群中有一半是優先客戶、折扣客戶，他們無法轉售產品或不想與其他人簽約。因此，我們消除了所有關於沒有真正客戶的爭論。

And John, I am to kind of back into the number that you think the impact of the debt deal alone, about $0.55 per share in 2017?

約翰，我想回顧一下您認為僅債務交易的影響的數字，2017 年約為每股 0.55 美元？

That's correct, yes.

這是正確的，是的。

Okay. It's a little bit higher than I thought it was going to be. In terms of choosing the structure for this share repurchase, obviously such auction or some kind of more accelerated structure would have greater accretion benefits, why did you choose the structure that has less accretion?

好的。它比我想像的要高一點。在本次股份回購的結構選擇上，顯然這樣的拍賣或某種更加速的結構會有更大的增值收益，為什麼選擇增值收益較小的結構呢？

Well, I'm not sure that we're -- I agree with the analysis. So, I think, certainly, we have more accretion in 2017 if we did something immediate as opposed to doing it more on an efficient basis. I think, 2018, timing doesn't matter, only price and how efficient we execute the deal, matters for 2018 and 2019 and 2020 and beyond. So, for long-term accretion, proper execution of a buyback from an economic standpoint is the most important thing. And by that way that may or may not be a tender -- we haven't ruled it out. It's just an option that's on the table as well as a lot of other options.

嗯，我不確定我們是否——我同意這個分析。因此，我認為，如果我們立即採取行動，而不是在更有效的基礎上採取更多措施，我們肯定會在 2017 年獲得更多的成長。我認為，2018 年，時機並不重要，重要的是價格以及我們執行交易的效率，這對 2018 年、2019 年、2020 年及以後都很重要。因此，對於長期增值而言，從經濟角度適當執行回購是最重要的。這樣一來，這可能是招標，也可能不是招標——我們並沒有排除這種可能性。這只是擺在桌面上的選項，還有很多其他選項。

Okay. Thanks.

好的。謝謝。

And our next question is from the line of Michael Swartz from SunTrust.

我們的下一個問題來自 SunTrust 的 Michael Swartz。

Hey, good afternoon, guys.

嘿，下午好，夥計們。

Hey, Michael.

嘿，麥可。

Just maybe run through China in a little more detail, just maybe what you've diagnosed there, maybe how you saw China progress through the quarter into February, and maybe how we should think about volume, revenue growth playing out through 2017?

也許更詳細地介紹一下中國，也許您在那裡診斷了什麼，也許您如何看待中國在整個季度到 2 月份的進展，也許我們應該如何考慮 2017 年的銷售和收入成長？

Yes, Hi, Michael. This is Des. So listen, obviously we spent a lot of time recently on China and very much focused on it, and what we've identified is two key areas. First of all, what we saw during the year is that a key group of our leaders there transitioned their business away from the club model and onto social media. What that drove was substantial increase in the short-term, in terms of social media's ability to embrace a large group of customers. But what we saw as we went through the year is that the stickiness of those customers that was minimal compared to what we would experience in the clubs.

是的，嗨，麥可。這是德賽爾。聽著，顯然我們最近在中國花了很多時間並且非常關注它，我們已經確定了兩個關鍵領域。首先，我們在這一年中看到的是，我們一個關鍵的領導群體將他們的業務從俱樂部模式轉向了社群媒體。其推動因素是社群媒體吸引大量客戶的能力在短期內大幅提高。但我們在這一年中看到的是，與我們在俱樂部所經歷的相比，這些客戶的黏性是最小的。

But as you know, our distributor leaders tend to follow success, and so when you have one group achieving significant success, others tend to follow that. But now, when we look into the numbers and we've actually analyzed the numbers along with our key leaders in the market, they've clearly recognized the falsity of that, and so that group is now switching back to what we've seen be effective in other markets, which is using social media as a tool to supplement rather than to replace activity in the club.

但如您所知，我們的經銷商領導者傾向於追隨成功，因此當團隊取得重大成功時，其他人也傾向於效仿。但現在，當我們研究這些數字時，我們實際上與市場上的主要領導者一起分析了這些數字，他們清楚地認識到了這一點的虛假性，因此該小組現在又回到了我們所看到的情況在其他市場中發揮作用，即使用社交媒體作為補充而不是取代俱樂部活動的工具。

The second situation is that we've seen the migration away from smaller clubs to larger clubs. And again in the short-term that seems like a good idea, right, because you actually have lower operating costs, you've got distributor, service providers working together. But as we know this is a neighborhood business and so people want to attend clubs in their neighborhood, and so what we saw is that initially these clubs very successful; but then we saw the actual customer counts drop off in those clubs.

第二種情況是我們看到從小俱樂部向大俱樂部的遷移。從短期來看，這似乎是一個好主意，對吧，因為實際上營運成本較低，而且分銷商、服務提供者可以一起工作。但正如我們所知，這是一個鄰裡生意，所以人們想參加他們附近的俱樂部，所以我們看到的是，最初這些俱樂部非常成功；但後來我們看到這些俱樂部的實際顧客數量下降了。

So, again when we compare those regions of the country where the clubs have remained following the traditional model of large number of clubs, the neighborhood clubs and compare that to the areas where they moved away from that model, the distinction is clear. So again, same philosophy work the distributor leader show them that by returning to what has worked in the past, it will work in the future, we now see our leaders focused on reverting to what has been successful in the past.

因此，當我們再次比較該國那些俱樂部仍然遵循大量俱樂部、鄰裡俱樂部的傳統模式的地區，並將其與他們放棄該模式的地區進行比較時，區別就很明顯了。因此，分銷商領導者再次以同樣的理念向他們展示，透過回歸過去的成功經驗，它將在未來發揮作用，我們現在看到我們的領導者專注於恢復過去的成功經驗。

If I could just add a little bit to that, two comments. One is the number of active service providers in China is at a record high. So the number of people engaged is still strong, and that's a good sign. So, they're still involved in the business, so we can change their behavior.

如果我能補充一點的話，我有兩則評論。一是中國活躍的服務提供者數量創歷史新高。所以參與人數仍然很多，這是一個好兆頭。所以，他們仍然參與業務，所以我們可以改變他們的行為。

And second is regarding profiling China during the year, we said even before, the results in the fourth quarter were a little disappointing versus expectations that Q1 was going to be a difficult comp anyway, because of the timing of Chinese New Year. So Q1 will be a challenging quarter.

其次是關於今年中國的概況，我們甚至之前就說過，第四季度的結果有點令人失望，與預期第一季度無論如何都會是一個困難的比較一樣，因為農曆新年的時間。因此，第一季將是一個充滿挑戰的季度。

Okay. That's helpful. And then, maybe just within guidance and you're announcing this new JV in China with -- I believe, it's Tasly. Could you just give us a little bit more color on that? And then maybe, John, is that included in your guidance from both of maybe a cost perspective and the top-line perspective?

好的。這很有幫助。然後，也許只是在指導範圍內，你宣佈在中國成立一家新的合資企業——我相信，它是天士力。您能為我們提供更多的資訊嗎？約翰，也許這是否包含在您從成本角度和營收角度的指導中？

The cost is -- there's no top-line yet, any benefit, first of all the benefit of the JV is going to take some time for sure. And second, there would be upside. And just one clarification before I pass it over to Rich to talk a little bit about the substance of the deal, it's a global deal with a Chinese company, I just want to make sure that's clear, it's not a Chinese deal.

成本是－目前還沒有任何收入，也沒有任何好處，首先，合資企業的好處肯定需要一些時間。其次，會有好處。在我將其交給里奇討論交易的實質內容之前，我只想澄清一下，這是與一家中國公司的全球交易，我只是想確保這一點清楚，這不是中國的交易。

Okay. Great.

好的。偉大的。

So, I'm going to pass it over to Rich to provide a little more color.

所以，我會把它交給 Rich 來提供更多的顏色。

Yes, listen there's a very big strategic alliance between the philosophy of Tasly and Herbalife and our Seed to Feed initiatives. They have some very interesting technology in the standpoint of a seedbank. They have their own farms and fields. They have their own extraction facilities. And big picture, they have a lot of the intellectual property that we think with our commercialization know-how, we might be able to market around the world; so we're excited.

是的，聽著，天士力和康寶萊的理念與我們的「從種子到飼料」計畫之間存在著非常大的戰略聯盟。從種子庫的角度來看，他們有一些非常有趣的技術。他們有自己的農場和田地。他們有自己的提取設施。從大局來看，他們擁有許多知識產權，我們認為憑藉我們的商業化專業知識，我們也許能夠在世界各地進行行銷；所以我們很興奮。

Our next question is from the line of April Scee from RenMac.

我們的下一個問題來自 RenMac 的 April Scee。

Hi. Sorry about earlier, guys. I just have two more questions on China. And the first is just on the China investigation, I was hoping you could give us an update and maybe provide some confidence that this is different than what we saw at Elan or Nu Skin and that it's not going to disrupt your business? And then just real quickly on the China JV, if you don't mind. Is there any way in which this could actually help you in the China market in addition to the other reasons that you've stated for why the deal was done?

你好。抱歉，夥計們，之前的事情。我還有兩個關於中國的問題。第一個是關於中國的調查，我希望您能給我們提供最新情況，也許可以提供一些信心，表明這與我們在 Elan 或 Nu Skin 看到的情況不同，並且它不會擾亂您的業務？如果您不介意的話，然後很快就可以在中國成立合資企業。除了您所闡述的達成交易的其他原因之外，還有什麼方法可以真正幫助您開拓中國市場？

Yes. I can take actually both of those. I'll start with the second one. The deal was done exclusively because Tasly has great content and we have great distribution and those two things can be a great marriage and it's a global, like I said, it's a global deal, and that was exclusively the reason.

是的。我實際上可以接受這兩個。我將從第二個開始。這筆交易之所以達成，完全是因為天士力擁有出色的內容，而且我們擁有出色的分銷渠道，這兩件事可以成為一次偉大的聯姻，而且這是一個全球性的交易，就像我說的，這是一個全球性的交易，這就是唯一的原因。

Regarding your first question, there's not a lot of color, we have a lot of confidence in our compliance program, we've spent a lot of resources and efforts on compliance in China. We have six internal auditors, we have big four accounting firms that are stationed in Shanghai and have been as part of our compliance program for a number of years and we have a strong commitment to compliance. And if we find somebody violated that commitment to compliance, then we'll deal with it, but there's nothing at this point to disclose.

關於你的第一個問題，沒有太多的色彩，我們對我們的合規計劃很有信心，我們在中國的合規方面花費了很多資源和努力。我們有六位內部稽核師，我們有四大會計師事務所常駐上海，多年來一直是我們合規計畫的一部分，我們對合規有堅定的承諾。如果我們發現有人違反了合規承諾，我們將予以處理，但目前沒有任何可揭露的資訊。

Okay. Thanks, guys.

好的。多謝你們。

And at this time, I'm showing no more audio questions. I would like to turn the call back to Michael Johnson.

此時，我不再顯示任何音訊問題。我想把電話轉回給麥可·約翰遜。

Thank you, everyone. Thanks for being with us today. And I think this meeting or this call summarizes that 2017 will be a transformational year for the company. We've got opportunities and challenges, but this is an incredibly resilient business.

謝謝大家。感謝您今天和我們在一起。我認為這次會議或電話會議總結了 2017 年將是公司轉型的一年。我們面臨著機會和挑戰，但這是一個極具彈性的業務。

And I think we've pointed we're working with our distributors to make sure that we improve the trends in China and Korea. We've got a team of executives dispatched there, our distributors are very, very dedicated and we make sure that their passion is resultant in better sales in each of those markets.

我認為我們已經指出，我們正在與經銷商合作，以確保我們改善中國和韓國的趨勢。我們派了一個高階主管團隊到那裡，我們的經銷商非常非常敬業，我們確保他們的熱情能帶來每個市場更好的銷售。

Our opportunity, as it always has, outweighs our challenges and we have a great future ahead of us, we've got a great Company, a leverageable distribution channel and mega trends that'll provide a catalyst for growth for years to come. So, we thank you for being with us. We look forward to talking to you next quarter. Thank you very much.

一如既往，我們的機會大於挑戰，我們擁有美好的未來，我們擁有一家偉大的公司、一個可利用的分銷渠道和大趨勢，這些將為未來幾年的增長提供催化劑。所以，我們感謝您與我們同在。我們期待下個季度與您交談。非常感謝。

Ladies and gentlemen, this does conclude today's conference. We thank you greatly for joining us for the Herbalife fourth-quarter earnings conference call. You may now disconnect.

女士們、先生們，今天的會議到此結束。我們非常感謝您參加康寶萊第四季財報電話會議。您現在可以斷開連線。