ICR CONFERENCE
ICR CONFERENCE 2 Forward Looking Statements This presentation - - PowerPoint PPT Presentation
ICR CONFERENCE 2 Forward Looking Statements This presentation - - PowerPoint PPT Presentation
ICR CONFERENCE 2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward- looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the company’s performance, opportunities, risks, initiatives, market size, growth, strategies and priorities, products and product offerings, sales force, consumers and new product development; statements regarding shareholder value and projections for 2016 and future years regarding our sales, expenses, margins, earnings per share, cash flows and sources and uses of cash, foreign currency fluctuations, dividends, other financial items, stock repurchases and shares outstanding; statements of management’s expectations, estimates and beliefs regarding our markets; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “project,” “anticipate,” “estimate,” “aspire,” “intend,” “plan,” “targets,” “likely,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward- looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following: any failure of current or planned initiatives or products to generate interest among our sales force and customers and generate sponsoring and selling activities on a sustained basis; risk of foreign currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations; risk that direct selling laws and regulations in any of our markets, including the United States and China, may be modified, interpreted or enforced in a manner that results in negative changes to our business model or negatively impacts our revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events; risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support our planned initiatives or launch strategies, and increased risk of inventory write-offs if we over-forecast demand for a product or change our planned initiatives or launch strategies; regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit the company’s ability to import or continue selling a product in a market if it is determined to be a medical device or if it is unable to register the product in a timely manner under applicable regulatory requirements; adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others; unpredictable economic conditions and events globally; any prospective or retrospective increases in duties on the company’s products imported into the company’s markets outside of the United States and any adverse results- f tax audits or unfavorable changes to tax laws in the company’s various markets; and
Company Overview
3Nu Skin Overview
~ 50 markets worldwide 2.2 billion sales in 2015 Direct Seller
200 plus product sku’s
~ 1 million customers & sales leaders
4Nutrition Pharmanex
57% 43%
Personal Care Nu Skin
Q3 2016 Sales
Revenue by Brand
Cash vs Debt
6100,000 200,000 300,000 400,000 500,000 600,000 2013 2014 2015 2016 Cash & Cash Equivalents Debt
Regional Breakdown
34.5% 35.8% 11.7% 11.8% 6.1%
Q3 2016 Sales
Greater China
Taiwan Hong Kong ChinaNorth Asia
Japan South KoreaSouth Asia/Pacific
Singapore Malaysia OthersAmericas
USA Canada Latin AmericaEMEA
Europe Russia/Ukraine Israel/South AfricaGreater China
50,000 100,000 150,000 200,000 250,000 300,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Actives
$0 $50 $100 $150 $200 $250 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Greater China Revenue
10,000 20,000 30,000 40,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Sales Leaders
Millions 10,000 20,000 30,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 100,000 150,000 200,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Actives Sales Leaders
Mainland China
8Improvement in core business metrics Introduced ageLOC Me in Q2 2016 (Launch Q1 2017)
Sales Leaders
50,000 150,000 250,000 350,000 450,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Actives
$0 $50 $100 $150 $200 $250 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Revenue
North Asia
Steady performance in the face of industry pressure Introductions of ageLOC Youth and ageLOC Me
Millions 9Actives
South Asia/Pacific
Strong ageLOC Youth LTOs in Q3 2015 and Q2 2016 Strong growth in Australia/New Zealand General stabilization with sequential improvement in Actives Pockets of social selling success throughout the region
$0 $20 $40 $60 $80 $100 $120 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Revenue
Millions 2,000 4,000 6,000 8,000 10,000 12,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Sales Leaders
10Americas
2,000 4,000 6,000 8,000 10,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Sales Leaders
100,000 120,000 140,000 160,000 180,000 200,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Actives
$0 $20 $40 $60 $80 $100 $120 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Revenue
Q4 2015 LTO of ageLOC Youth Sequential improvements throughout 2016 Q4 2016 launch of ageLOC Me (no 2016 LTO) Volatile Latin America operating environment
MillionsActives Sales Leaders
North America
- 2,000
Actives
$20 $25 $30 $35 $40 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Revenue
Positive trends in Actives and Sales Leaders Growth driven by social selling and core products Successful seasonal promotion cycle Launch of ageLOC Me in H1 2016
Millions 2,000 2,500 3,000 3,500 4,000 4,500 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16Sales Leaders
EMEA
U.K. Revenue
1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 GBP 122017 Projected Local-Currency Revenue Growth
Greater China 8 to 10% North Asia flat South Asia/Pacific 8 to 10% Americas 4 to 6% EMEA 8 to 10% Overall 4 to 6%
13Growth Opportunities
14ageLOC Me $220M
page 0152011-2012 2013-2014 2015-2016
R2 $1.0B plus ageLOC Youth $240M TFEU restage $300M plus Body Spa $700M plus TR90 $1.0B plus
2009-2010
Product Launch History
Cumulative revenue through Q3 2016Facial Spa $1.5B plus Transformation $1.0B plus
Recently Introduced & Product Pipeline
16ageLOC Me
- Utilizes proprietary microlayering
technology to deliver formulations that can’t be put in a jar
- Provides a hygienic, customized
skin care regimen
- Incorporates patent-pending
technology
67- 20,000
ageLOC Me Cartridge Sets Sold
Growing Consumer Base–ageLOC Me
* 1 cartridge set = 5 cartridges Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 18ageLOC Youth
67- Positive influence on age-
related genes
- Systemic anti-aging benefits
- Proprietary blend of
ingredients difficult to obtain through diet
ageLOC LumiSpa
- Instant and long-term benefits:
smoothness, softness, exfoliation, pore size, texture, clarity, radiance, the appearance
- f fine line and wrinkles, and
firmness
- Daily regimen
- Extremely well tolerated
- Broad demographic appeal
- Synergy with Nu Skin
treatments
670% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Smoothness Softness Texture Clarity Radiance Cleansing Pores Appearance
- f Fine Lines
Firmness
Overall Percent Improvement – 8 Weeks, Clinical GraderBenefits of LumiSpa
212017 2018
LumiSpa Launch Plan
Market rollouts
(H2 2017-2018)
22Global Preview
(H2 2017)
Device = ~$125 Cleansing Gel = ~$30
Grow Shareholder Value
23Priorities For Cash Use
Pay Dividend 15-year history of steady increases Grow the Business Digital, LumiSpa, supply chain investments Repurchase Shares History of using cash to repurchase shares
24Initiate Brand, Product and Business Refresh
Key 2017 Priorities
Sustain Growth in Mainland China Deploy Social Selling Platform (MeCommerce) Maximize Market Penetration of ageLOC Me & Youth Launch LumiSpa & Maintain Robust Product Pipeline
25