ICR CONFERENCE 2 Forward Looking Statements This presentation - - PowerPoint PPT Presentation

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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,


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ICR CONFERENCE

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SLIDE 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, 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
continued competitive pressures in the company’s markets. The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this presentation to reflect any change except as required by law. 2
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SLIDE 3

Company Overview

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SLIDE 4

Nu Skin Overview

~ 50 markets worldwide 2.2 billion sales in 2015 Direct Seller

200 plus product sku’s

~ 1 million customers & sales leaders

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SLIDE 5 5

Nutrition Pharmanex

57% 43%

Personal Care Nu Skin

Q3 2016 Sales

Revenue by Brand

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SLIDE 6

Cash vs Debt

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100,000 200,000 300,000 400,000 500,000 600,000 2013 2014 2015 2016 Cash & Cash Equivalents Debt

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SLIDE 7 7

Regional Breakdown

34.5% 35.8% 11.7% 11.8% 6.1%

Q3 2016 Sales

Greater China

Taiwan Hong Kong China

North Asia

Japan South Korea

South Asia/Pacific

Singapore Malaysia Others

Americas

USA Canada Latin America

EMEA

Europe Russia/Ukraine Israel/South Africa
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SLIDE 8

Greater 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 16

Actives

$0 $50 $100 $150 $200 $250 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Greater China Revenue

10,000 20,000 30,000 40,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Sales 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 16

Actives Sales Leaders

Mainland China

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Improvement in core business metrics Introduced ageLOC Me in Q2 2016 (Launch Q1 2017)

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SLIDE 9 10,000 12,000 14,000 16,000 18,000 20,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

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 16

Actives

$0 $50 $100 $150 $200 $250 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Revenue

North Asia

Steady performance in the face of industry pressure Introductions of ageLOC Youth and ageLOC Me

Millions 9
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SLIDE 10 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Actives

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 16

Revenue

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 16

Sales Leaders

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SLIDE 11

Americas

2,000 4,000 6,000 8,000 10,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Sales 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 16

Actives

$0 $20 $40 $60 $80 $100 $120 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Revenue

Q4 2015 LTO of ageLOC Youth Sequential improvements throughout 2016 Q4 2016 launch of ageLOC Me (no 2016 LTO) Volatile Latin America operating environment

Millions

Actives Sales Leaders

North America

  • 2,000
3,000 8,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 50,000 100,000 150,000 200,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 11
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SLIDE 12 50,000 70,000 90,000 110,000 130,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Actives

$20 $25 $30 $35 $40 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Revenue

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 16

Sales 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 12
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2017 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%

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Growth Opportunities

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ageLOC Me $220M

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2011-2012 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 2016

Facial Spa $1.5B plus Transformation $1.0B plus

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Recently Introduced & Product Pipeline

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ageLOC 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

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  • 20,000
40,000 60,000 80,000 100,000 120,000

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 18
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ageLOC Youth

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  • Positive influence on age-

related genes

  • Systemic anti-aging benefits
  • Proprietary blend of

ingredients difficult to obtain through diet

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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

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0% 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 Grader

Benefits of LumiSpa

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SLIDE 22

2017 2018

LumiSpa Launch Plan

Market rollouts

(H2 2017-2018)

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Global Preview

(H2 2017)

Device = ~$125 Cleansing Gel = ~$30

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SLIDE 23

Grow Shareholder Value

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Priorities 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

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Initiate 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

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Q&A