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Important information regarding forward-looking statements: This presentation contains forward-looking statements within the meaning of federal and state securities laws that represent the company’s
current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” and include, but are not limited to, statements of management’s expectations
regarding the company’s transformation, strategies and initiatives (including related top-line and bottom-line growth through 2025); management’s expectations regarding the company’s performance, sales
force and customer base, affiliates, digital tools, social commerce business, operational improvements, future market size, future products and product introductions; statements about future changes to the
company’s business model and compensation plan; projections regarding revenue, margins, expenses, operating income, earnings per share, foreign currency fluctuations, tax rates, sources and uses of cash,
dividends and other financial items; 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,” “enable,” “guidance,” “vision,” “outlook,” “project,” “anticipate,” “prospects,” “commit,” “achieve,” “estimate,” “intend,” “plan,” “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:
• risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business;
• adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others;
• management’s preferences and decisions on how to manage the business, which could change in the future;
• risk of lower future revenue or higher costs than anticipated, causing declines in the company’s margins and/or earnings;
• risk that direct selling laws and regulations in any of the company's markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative
changes to the company's business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force
actions, imposition of fines, or any other adverse actions or events;
• any failure of current or planned initiatives or products to generate interest among the company's sales force and customers and generate sponsoring and selling activities on a sustained basis;
• political, legal, tax and regulatory uncertainties associated with operating in international markets, including Mainland China;
• uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
• risk of foreign-currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;
• uncertainties regarding the future financial performance of the businesses the company has acquired;
• risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company
over-forecasts demand for a product or changes its planned initiatives or launch strategies;
• regulatory risks associated with the company's products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is
determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements;
• unpredictable economic conditions and events globally, including trade policies and tariffs;
• the company's future tax-planning initiatives; 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 of 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, including its recently filed Form 10-K. 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.
Type your title here
Date
Nu Skin Investor Day
February 2022
Meeting Agenda
Introduction & Welcome
Q&A
2021 Review
Introduce Nu Vision 2025
OUR MISSION
To be a global force for good by
empowering people to improve lives
with innovative products, rewarding
opportunities and an enriching culture.
Q4 & 2021 Year-end Update
• Annual revenue growth of 4%, or 11% compared to
2019.
• Social Commerce continues to fuel
west growth, led by US market.
• Collagen+ and Meta introductions
and launches in most markets.
• Increased geographic balance
• China and Southeast Asia continue to
lag despite social commerce exploration
• Ongoing macro-environmental COVID impacted
events and promotional activities in the east.
DIGITAL CONNECTIVITY
EMERGING GIG ECONOMY
SOCIAL MEDIA
Social Commerce Market Size And Growth Prospects, 2017-2018 (USD Billion)
3,500
3,000
2,500
2,000
1,500
1,000
500
2017 2028
2026
2025
2024
2023
2022
2021
2020
2019
2018
North America Europe Asia Pacific LATAM Middle East & Africa
Source: USBAEC, IMA, GSMA, DSA, D&B Hoovers, Company Annual Reports, Primary Interviews, and Grand View Research
The social commerce market was valued at
USD 474.76 billion in 2020 and is predicted
to reach USD 3,369.82 billion by 2028,
growing at a CAGR of 28.4% from 2021 to
2028.
MACRO-TRENDS:
GLOBAL SOCIAL
COMMERCE
Beauty and Wellness are both top
5 growers within social channels with
34% and 21% respective CAGRs through
2028
2027
4,000
NU VISION 2025
To become the world’s leading
integrated beauty and wellness
company, powered by our dynamic
affiliate opportunity platform
EmpowerMe
Personalized Beauty
and Wellness Strategy
Provide personalized
customer experiences that
enable deeper relationships
and greater lifetime value
via connected device
systems
*Source Euromonitor International Ltd; Retail Value RSP terms; all channels; 2017 and 2018. Includes at-home Skin Care Devices exclusively paired with topical consumable of same brand.
Based on Euromonitor custom research methodology, Jan/Feb2019. Includes electric facial cleansers as defined in Passport database; does not include hair care/removal, body shavers, or oral
care appliances.
I
CONNECTED DEVICES
AFFILIATE-POWERED SOCIAL COMMERCE
Expand the scale and reach of our business
opportunity via global adoption of Customer-focused,
Affiliate-powered, Social commerce business model.
INTEGRATED DIGITAL
ECOSYSTEM
Seamless, mobile-first, digital
experiences to enable company &
affiliates to attract, connect & nurture
customers through their personal
journey with Nu Skin.
Nu Skin Enterprises’
Strategic Pivot
The world’s leading
direct selling company.
The world’s leading integrated
beauty
and wellness company, powered by
our dynamic affiliate opportunity
platform. (Nu Vision 2025)
ADDITIONAL TRANSFORMATION INSIGHTS
SAVED 131 TONS OF
PLASTIC AND OVER 34
TONS OF PAPER
FIRST BEAUTY COMPANY
TO LAUNCH THE ECO-PAK
ALL PACKAGING RECYCLED,
RECYCLABLE, REUSABLE,
REDUCED
OR RENEWABLE BY 2030
1. Introduce EmpowerMe Personalized
beauty & wellness strategy with IO
connected devices
2. Accelerate our Affiliate-powered Social
Commerce business model
3. Delight our customers with our integrated
digital ecosystem
Nu Vision 2025
Strategic Imperatives:
$3.4 Trillion by 2028
Jump 7x in next 7 years
PERSONALIZATION
GLOBAL MARKET SIZE:
BEAUTY & PERSONAL CARE
GLOBAL MARKET SIZE:
HEALTH & WELLNESS
OPPORTUNITY
*SOURCE: Euromonitor International, Beauty and Personal Care
Global Market Size and Health and Wellness Global Market Size, 2020-2021
Nu Skin VERA App
nuskin.com
Nu Skin STELA App
Assessment Tools
Social Commerce Multiplier
Behavioral
Insights
Enhanced
Sharing Tools
Create | Discover
Platform
Personalized
Product
Connected
IoT Devices
Science Backed
Clinically Proven
Product | Services
Subscriptions
PRODUCT
TECHNOLOGY COMMUNITY
EMPOWERME
“
“
598 97
EMPOWERME
2,5
98
97
“
“
PRODUCT
TECHNOLOGY
COMMUNITY
NEW WAY
OLD WAY
PRODUCT
Nu Skin VERA App
nuskin.com
Nu Skin STELA App
Assessment Tools
Social Commerce Multiplier
Behavioral
Insights
Enhanced
Sharing Tools
Create | Discover
Platform
Personalized
Product
Connected
IoT Devices
Science Backed
Clinically Proven
Product | Services
Subscriptions
PRODUCT
TECHNOLOGY COMMUNITY
NEW WAY
EMPOWERME
OLD WAY
PRODUCT
“
“
598 97
ATTRACT
CONNECT
NURTURE
2,5
98
97
“
“
PRODUCT
TECHNOLOGY
COMMUNITY
Nu Skin VERA App
nuskin.com
Nu Skin STELA App
Assessment Tools
Social Commerce Multiplier
Behavioral
Insights
Enhanced
Sharing Tools
Create | Discover
Platform
Personalized
Product
Connected
IoT Devices
Science Backed
Clinically Proven
Product | Services
Subscriptions
PRODUCT
TECHNOLOGY COMMUNITY
EMPOWERME
“
“
598 97
1. Empower affiliates to attract, connect
and nurture customers
2. Increase product consumption
3. Attract new customers and affiliates
4. Increase recurring revenue
5. Increase lifetime value
The strategy includes:
Skin
Beauty
Wellness
Scanner
Assessments
Weight
Mind
Discover Yourself
TECHNOLOGY
Sarah
PROPRIETARY
ALGORITHM
CONNECT
ATTRACT NURTURE
VIRTUAL
TRY-ON
SKIN AGING
METABOLISM
SUPPORT
DULLNESS
DRY SKIN
SCS SCORE
26,000
SLEEP
BETTER
CUSTOMER
TECHNOLOGY
Sarah
CUSTOMER
SOCIAL &
E-COMMERCE
PERSONALIZED
EXPERIENCE
DIGITAL
ACCELERATION
$
ageLOC® Meta
Only 1 in 8 people
is considered
metabolically healthy.*
*Araújo J, Cai J, Stevens J. Preva. Metab Syndr Relat Disord. 2019;17(1):46-52. doi:10.1089/met.2018.0105
https://www.frontiersin.org/research-topics/13570/modern-lifestyle-and-health-how-changes-in-the-environment-impacts-immune-function-and-physiology
**Nu Skin Meta Supplement Consumer Concept Testing, September 2020
of consumers agree that today’s
lifestyle negatively impacts our bodies
**
*Araújo J, Cai J, Stevens J. Preva. Metab Syndr Relat Disord. 2019;17(1):46-52. doi:10.1089/met.2018.0105
https://www.frontiersin.org/research-topics/13570/modern-lifestyle-and-health-how-changes-in-the-environment-impacts-immune-function-and-physiology
**Nu Skin Meta Supplement Consumer Concept Testing, September 2020
90%
Only 1 in 8 people
is considered
metabolically healthy.*
POWER of
ANTHOCYANIN
THE PROOF IS IN THE PLUS
GROWING
TREND
The direct sales channel is driving
the highest revenue share.
Source: Grand View Research, Women Health & Beauty Supplements Market Size, Share & Trends Analysis Report, May
2020
The health and beauty supplement market is
expected to reach $68.9 billion by
2026.
Bioactive
COLLAGEN Peptides
PHYTOCERAMIDES
LUTEIN
.
CLINICALLY PROVEN TO PROVIDE
BETTER COMPLEMENTARY BENEFITS
0
5
10
15
20
25
30
35
40
45
50
Placebo LumiSpa® Collagen+ and
LumiSpa®
Overall Appearance*
*Over clinical baseline after 4 months according to expert visual
grading
Nu Skin VERA App
nuskin.com
Nu Skin STELA App
Assessment Tools
Social Commerce Multiplier
Behavioral
Insights
Enhanced
Sharing Tools
Create | Discover
Platform
Personalized
Product
Connected
IoT Devices
Science Backed
Clinically Proven
Product | Services
Subscriptions
PRODUCT
TECHNOLOGY COMMUNITY
EMPOWERME
“
“
598 97
Retention
Subscription
Lifetime Value
PRODUCT
PRODUCT
0
20
40
60
80
100
120
140
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Q4 2020 Q3 2021 Q4 2021
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
0
10
20
30
40
50
60
70
80
90
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0
50,000
100,000
150,000
200,000
250,000
300,000
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
0
20
40
60
80
100
120
140
160
0
5,000
10,000
15,000
20,000
25,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
0
10
20
30
40
50
60
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
0
10
20
30
40
50
60
70
80
90
100
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
0
20
40
60
80
100
0
2,000
4,000
6,000
8,000
10,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
0
20
40
60
80
100
120
140
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Reported Revenue (Ms)
Sales Leaders
Customers
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Q4 2020 Q3 2021 Q4 2021
Projected Revenue Growth
Mainland China (5) to 5%
Americas 6 to 12%
South Korea 2 to 6%
Southeast Asia/Pac (10) to (5)%
Japan (1) to 4%
Hong Kong/Taiwan (5) to 5%
EMEA 8 to 13%
2 0 2 2
Consolidated Local
Currency Growth
0 to 5%
Global FX Impact
(1) to (2)%
Consolidated GAAP Growth
(1) to 3%
CONSTANT CURRENCY
Annual Fusion Calendar (Sample)
• Monthly/quarterly
promos & launches
• Attract new customers
& affiliates
• Annual hero products
• Attract new customers
& affiliates
• Top brand campaigns
• Customer loyalty
• Affiliate retention
• Subscriptions
ATTRACT
CONNECT
NURTURE
Building Online Communities
Let’s Nu Run
Contactless, Mission-based
Running Events
Nu Beat
VR Bike Challenge Program
Zoom in Now
Run Online Group Workout
Connect Now
Instagram Mission Challenge
WeChat Program
Sales Leader Social Commerce Adoption Customer Acquisition
Expanding our reach to new audiences.
HELPS BOOST COLLAGEN &
ELASTIN PRODUCTION IN
YOUR SKIN.
HELPS VISIBLY REDUCE
FINE LINES & WRINKLES.
CLINICALLY PROVEN TO HELP YOU
LOOK MORE YOUTHFUL.
-
6,000
12,000
18,000
24,000
30,000
6/1/21 7/1/21 8/1/21 9/1/21 10/1/2111/1/2112/1/21 1/1/22
Collagen+ Subscription (US)
LifePak Nano (US)
Number of Customer Subscriptions
Source: Nu Skin Internal Data 6/2021-1/2022
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2018 2019 2020 2021
Manufacturing Segment Overview
(in Millions)
• $673.4 M of revenue
• FX negative impact of 2%
• 120 basis point non-GAAP gross margin
improvement
• Lingering COVID-19 impact and restrictions
FINANCIAL HIGHLIGHTS
Q4 2021
• Revenue $2.70 B, 4% YOY revenue improvement,
11% YOY compared to 2019
• 70 basis point gross margin improvement
• 90 basis point increase non-GAAP operating
margin
• Repurchased $80.4 M of stock – 3%
• Generated $142 M cash from operations
• Increased dividend for 21st year in early 2022
FINANCIAL HIGHLIGHTS
2021
Q 1 2 0 2 2
Guidance Overview
Q1 Revenue
Q1 EPS
$560 - $590 M
$0.65 - $0.75
(2) to (3)% foreign currency impact
21 to 25% tax rate
(1) to +3% revenue growth
(1) to (2)% foreign currency impact
Annual Revenue
$2.66 - 2.77 B
EPS
$4.05 – 4.45
Operating
Margin
11 – 11.5% (2) to 8%*
25% to 30% tax rate
* Non GAAP – see reconciliation
2 0 2 2
Guidance Overview
2019 2020 *2021 2022 Forecast
76%
74.5% 75.2%
75-76%
* Non GAAP – see reconciliation
Gross Margin
2019 2020 2021 2022 Forecast
% O F R E V E N U E
39.5% 39.5% 39.6% 39-40%
Selling Expense
2019 2020 2021 2022 Forecast
25.4% 25.0% 24.7% 24-25%
G&A Expense
2019 2020 *2021 2022 Forecast
*Non-GAAP, see reconciliation
11%
10%
10.9%
11-11.5%
Operating Margin
2019 2020 2021 2022 Forecast
$-12.9
$-1.3 $-1.5
$-2 to $-6
Other Income/Expense
2019 2020 * 2021 2022 Forecast
32.0%
25.3% 26.9%
25%-30%
Tax Rate
*Non-GAAP, see reconciliation
2019 2020 *2021 2022 Forecast
Earnings Per Share
$3.10
$3.63
$4.14
$4.05 - $4.45
*Non-GAAP, see reconciliation
Annual Dividend
$0.20
$0.24
$0.28
$0.32
$0.36
$0.40 $0.42 $0.44 $0.46
$0.50
$0.59
$0.80
$1.20
$1.38 $1.40 $1.42 $1.44 $1.46 $1.48 $1.50 $1.52 $1.54
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(proj)
21 YEARS OF GROWTH
Cash Overview
• xxxx
2 0 2 1 C A S H
H I G H L I G H T S
Cash From Operations
$250-300M
CASH FLOW 2022 BREAKOUT
Depreciation & Amortization
$80M
CAPEX
$70-90M
+$15M for China Facility
NU VISION 2025
To become the world’s leading
integrated beauty & wellness
company,
powered by our dynamic
affiliate opportunity platform
Q&A Nu Skin Investor Day
NON-GAAP RECONCILIATION TABLES
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of
Restructuring and Impairment to GAAP Earnings Per Share
(in thousands, except per share amounts)
Years Ended
December 31,
2021
Net income $ 147,266
Impact of restructuring and impairment:
Restructuring and impairment 51,870
Inventory write-off 6,656
Income tax impact 6,933
Adjusted net income $ 212,725
Diluted earnings per share $ 2.86
Diluted earnings per share, excluding restructuring and
impairment impact
$ 4.14
Weighted-average common shares outstanding (000s): 51,427
NU SKIN ENTERPRISES, INC.
Reconciliation of Effective Tax Rate Excluding Impact of
Restructuring to GAAP Effective Tax Rate
(in thousands, except per share amounts)
Years Ended
December 31,
2021
Provision for income taxes $ 85,193
Impact of restructuring on tax provision (6,933)
Provision for income taxes, excluding impact of restructuring $ 78,260
Income before provision for income taxes $ 232,459
Impact of restructuring and impairment:
Restructuring and impairment 51,870
Inventory write-off 6,656
Income before provision for income taxes, excluding restructuring
and impairment impact
$ 290,985
Effective tax rate 36.6%
Effective tax rate, excluding restructuring and impairment impact 26.9%
NON-GAAP RECONCILIATION TABLES
NU SKIN ENTERPRISES, INC.
Reconciliation of Gross Margin Excluding Impact of
Restructuring and Impairment to GAAP Gross Margin
(in thousands, except per share amounts)
NU SKIN ENTERPRISES, INC.
Reconciliation of Operating Margin Excluding Impact of
Restructuring to GAAP Operating Margin
(in thousands, except per share amounts)
Three Months Ended Years Ended
December 31, December 31,
2021 2020 2021 2020
Operating income $ 20,319 $ 88,697 $ 233,992 $ 257,564
Impact of restructuring and
impairment:
Restructuring and impairment 51,870 — 51,870 —
Inventory write-off 6,656 — 6,656 —
Adjusted operating income $ 78,845 $ 88,697 $ 292,518 $ 257,564
Operating margin 3.0% 11.9% 8.7% 10.0%
Operating margin, excluding
restructuring and impairment
impact
11.7% 11.9% 10.9% 10.0%
Operating margin improvement (8.9)% (1.3)%
Operating margin improvement,
excluding restructuring and
impairment impact
(0.2)% 0.9%
Revenue $ 673,436 $ 748,193 $ 2,695,669 $ 2,581,934
Three Months Ended Years Ended
December 31, December 31,
2021 2020 2021 2020
Gross Profit $ 499,661 $ 553,442 $ 2,020,446 $ 1,923,906
Impact of restructuring and
impairment:
Inventory write-off 6,656 — 6,656 —
Adjusted Gross Profit $ 506,317 $ 553,442 $ 2,027,102 $ 1,923,906
Gross margin 74.2% 74.0% 75.0% 74.5%
Gross margin, excluding
restructuring and impairment
impact
75.2% 74.0% 75.2% 74.5%
Gross margin improvement 0.2% 0.5%
Gross margin improvement,
excluding restructuring and
impairment impact
1.2% 0.7%
Revenue $ 673,436 $ 748,193 $ 2,695,669 $ 2,581,934
Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-
period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then
comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to
gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.
NON-GAAP – CONSTANT CURRENCY
The following table sets forth revenue growth % for the years ended December 31, 2021 and projected 2022 for each of our reportable segments :
2021 2022 Projected
Nu Skin: Reported Change Constant-Currency Change Reported Change Constant-Currency Change
Mainland China -9% -15% -5 to 5% -5 to 5%
Americas 21% 20% 5 to 10% 6 to 12%
South Korea 9% 6% 0 to 4% 2 to 6%
Southeast Asia/Pacific -7% -9% -10 to -5% -10 to -5%
Japan -3% 0% -5 to 0% -1 to 4%
EMEA 23% 18% 5 to 10% 8 to 13%
Hong Kong/Taiwan 1% -2% -5 to 5% -5 to 5%
Total Nu Skin 4% 1% -1 to 3% 0 to 5%
Manufacturing 16% 16% -5 to 5% -5 to 5%
THANK YOU

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Nu Skin Investor Day 2022 Slides.pdf

  • 1. Important information regarding forward-looking statements: This presentation contains forward-looking statements within the meaning of federal and state securities laws that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” and include, but are not limited to, statements of management’s expectations regarding the company’s transformation, strategies and initiatives (including related top-line and bottom-line growth through 2025); management’s expectations regarding the company’s performance, sales force and customer base, affiliates, digital tools, social commerce business, operational improvements, future market size, future products and product introductions; statements about future changes to the company’s business model and compensation plan; projections regarding revenue, margins, expenses, operating income, earnings per share, foreign currency fluctuations, tax rates, sources and uses of cash, dividends and other financial items; 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,” “enable,” “guidance,” “vision,” “outlook,” “project,” “anticipate,” “prospects,” “commit,” “achieve,” “estimate,” “intend,” “plan,” “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: • risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business; • adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others; • management’s preferences and decisions on how to manage the business, which could change in the future; • risk of lower future revenue or higher costs than anticipated, causing declines in the company’s margins and/or earnings; • risk that direct selling laws and regulations in any of the company's markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company's business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events; • any failure of current or planned initiatives or products to generate interest among the company's sales force and customers and generate sponsoring and selling activities on a sustained basis; • political, legal, tax and regulatory uncertainties associated with operating in international markets, including Mainland China; • uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results; • risk of foreign-currency fluctuations and the currency translation impact on the company's business associated with these fluctuations; • uncertainties regarding the future financial performance of the businesses the company has acquired; • risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies; • regulatory risks associated with the company's products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements; • unpredictable economic conditions and events globally, including trade policies and tariffs; • the company's future tax-planning initiatives; 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 of 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, including its recently filed Form 10-K. 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. Type your title here Date Nu Skin Investor Day February 2022
  • 3.
  • 4. Meeting Agenda Introduction & Welcome Q&A 2021 Review Introduce Nu Vision 2025
  • 5. OUR MISSION To be a global force for good by empowering people to improve lives with innovative products, rewarding opportunities and an enriching culture.
  • 6. Q4 & 2021 Year-end Update • Annual revenue growth of 4%, or 11% compared to 2019. • Social Commerce continues to fuel west growth, led by US market. • Collagen+ and Meta introductions and launches in most markets. • Increased geographic balance • China and Southeast Asia continue to lag despite social commerce exploration • Ongoing macro-environmental COVID impacted events and promotional activities in the east.
  • 10. Social Commerce Market Size And Growth Prospects, 2017-2018 (USD Billion) 3,500 3,000 2,500 2,000 1,500 1,000 500 2017 2028 2026 2025 2024 2023 2022 2021 2020 2019 2018 North America Europe Asia Pacific LATAM Middle East & Africa Source: USBAEC, IMA, GSMA, DSA, D&B Hoovers, Company Annual Reports, Primary Interviews, and Grand View Research The social commerce market was valued at USD 474.76 billion in 2020 and is predicted to reach USD 3,369.82 billion by 2028, growing at a CAGR of 28.4% from 2021 to 2028. MACRO-TRENDS: GLOBAL SOCIAL COMMERCE Beauty and Wellness are both top 5 growers within social channels with 34% and 21% respective CAGRs through 2028 2027 4,000
  • 11. NU VISION 2025 To become the world’s leading integrated beauty and wellness company, powered by our dynamic affiliate opportunity platform
  • 12. EmpowerMe Personalized Beauty and Wellness Strategy Provide personalized customer experiences that enable deeper relationships and greater lifetime value via connected device systems
  • 13. *Source Euromonitor International Ltd; Retail Value RSP terms; all channels; 2017 and 2018. Includes at-home Skin Care Devices exclusively paired with topical consumable of same brand. Based on Euromonitor custom research methodology, Jan/Feb2019. Includes electric facial cleansers as defined in Passport database; does not include hair care/removal, body shavers, or oral care appliances.
  • 15. AFFILIATE-POWERED SOCIAL COMMERCE Expand the scale and reach of our business opportunity via global adoption of Customer-focused, Affiliate-powered, Social commerce business model.
  • 16. INTEGRATED DIGITAL ECOSYSTEM Seamless, mobile-first, digital experiences to enable company & affiliates to attract, connect & nurture customers through their personal journey with Nu Skin.
  • 17. Nu Skin Enterprises’ Strategic Pivot The world’s leading direct selling company. The world’s leading integrated beauty and wellness company, powered by our dynamic affiliate opportunity platform. (Nu Vision 2025)
  • 19.
  • 20. SAVED 131 TONS OF PLASTIC AND OVER 34 TONS OF PAPER FIRST BEAUTY COMPANY TO LAUNCH THE ECO-PAK ALL PACKAGING RECYCLED, RECYCLABLE, REUSABLE, REDUCED OR RENEWABLE BY 2030
  • 21. 1. Introduce EmpowerMe Personalized beauty & wellness strategy with IO connected devices 2. Accelerate our Affiliate-powered Social Commerce business model 3. Delight our customers with our integrated digital ecosystem Nu Vision 2025 Strategic Imperatives:
  • 22. $3.4 Trillion by 2028 Jump 7x in next 7 years PERSONALIZATION GLOBAL MARKET SIZE: BEAUTY & PERSONAL CARE GLOBAL MARKET SIZE: HEALTH & WELLNESS OPPORTUNITY *SOURCE: Euromonitor International, Beauty and Personal Care Global Market Size and Health and Wellness Global Market Size, 2020-2021
  • 23. Nu Skin VERA App nuskin.com Nu Skin STELA App Assessment Tools Social Commerce Multiplier Behavioral Insights Enhanced Sharing Tools Create | Discover Platform Personalized Product Connected IoT Devices Science Backed Clinically Proven Product | Services Subscriptions PRODUCT TECHNOLOGY COMMUNITY EMPOWERME “ “ 598 97
  • 25. Nu Skin VERA App nuskin.com Nu Skin STELA App Assessment Tools Social Commerce Multiplier Behavioral Insights Enhanced Sharing Tools Create | Discover Platform Personalized Product Connected IoT Devices Science Backed Clinically Proven Product | Services Subscriptions PRODUCT TECHNOLOGY COMMUNITY NEW WAY EMPOWERME OLD WAY PRODUCT “ “ 598 97
  • 27. Nu Skin VERA App nuskin.com Nu Skin STELA App Assessment Tools Social Commerce Multiplier Behavioral Insights Enhanced Sharing Tools Create | Discover Platform Personalized Product Connected IoT Devices Science Backed Clinically Proven Product | Services Subscriptions PRODUCT TECHNOLOGY COMMUNITY EMPOWERME “ “ 598 97 1. Empower affiliates to attract, connect and nurture customers 2. Increase product consumption 3. Attract new customers and affiliates 4. Increase recurring revenue 5. Increase lifetime value The strategy includes:
  • 30.
  • 32.
  • 33. Only 1 in 8 people is considered metabolically healthy.* *Araújo J, Cai J, Stevens J. Preva. Metab Syndr Relat Disord. 2019;17(1):46-52. doi:10.1089/met.2018.0105 https://www.frontiersin.org/research-topics/13570/modern-lifestyle-and-health-how-changes-in-the-environment-impacts-immune-function-and-physiology **Nu Skin Meta Supplement Consumer Concept Testing, September 2020
  • 34. of consumers agree that today’s lifestyle negatively impacts our bodies ** *Araújo J, Cai J, Stevens J. Preva. Metab Syndr Relat Disord. 2019;17(1):46-52. doi:10.1089/met.2018.0105 https://www.frontiersin.org/research-topics/13570/modern-lifestyle-and-health-how-changes-in-the-environment-impacts-immune-function-and-physiology **Nu Skin Meta Supplement Consumer Concept Testing, September 2020 90% Only 1 in 8 people is considered metabolically healthy.*
  • 36. THE PROOF IS IN THE PLUS
  • 37. GROWING TREND The direct sales channel is driving the highest revenue share. Source: Grand View Research, Women Health & Beauty Supplements Market Size, Share & Trends Analysis Report, May 2020 The health and beauty supplement market is expected to reach $68.9 billion by 2026.
  • 39. . CLINICALLY PROVEN TO PROVIDE BETTER COMPLEMENTARY BENEFITS 0 5 10 15 20 25 30 35 40 45 50 Placebo LumiSpa® Collagen+ and LumiSpa® Overall Appearance* *Over clinical baseline after 4 months according to expert visual grading
  • 40.
  • 41.
  • 42. Nu Skin VERA App nuskin.com Nu Skin STELA App Assessment Tools Social Commerce Multiplier Behavioral Insights Enhanced Sharing Tools Create | Discover Platform Personalized Product Connected IoT Devices Science Backed Clinically Proven Product | Services Subscriptions PRODUCT TECHNOLOGY COMMUNITY EMPOWERME “ “ 598 97 Retention Subscription Lifetime Value
  • 43.
  • 45. 0 20 40 60 80 100 120 140 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Q4 2020 Q3 2021 Q4 2021 Reported Revenue (Ms) Sales Leaders Customers Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021
  • 52. Projected Revenue Growth Mainland China (5) to 5% Americas 6 to 12% South Korea 2 to 6% Southeast Asia/Pac (10) to (5)% Japan (1) to 4% Hong Kong/Taiwan (5) to 5% EMEA 8 to 13% 2 0 2 2 Consolidated Local Currency Growth 0 to 5% Global FX Impact (1) to (2)% Consolidated GAAP Growth (1) to 3% CONSTANT CURRENCY
  • 53. Annual Fusion Calendar (Sample) • Monthly/quarterly promos & launches • Attract new customers & affiliates • Annual hero products • Attract new customers & affiliates • Top brand campaigns • Customer loyalty • Affiliate retention • Subscriptions ATTRACT CONNECT NURTURE
  • 54. Building Online Communities Let’s Nu Run Contactless, Mission-based Running Events Nu Beat VR Bike Challenge Program Zoom in Now Run Online Group Workout Connect Now Instagram Mission Challenge
  • 55. WeChat Program Sales Leader Social Commerce Adoption Customer Acquisition Expanding our reach to new audiences.
  • 56. HELPS BOOST COLLAGEN & ELASTIN PRODUCTION IN YOUR SKIN. HELPS VISIBLY REDUCE FINE LINES & WRINKLES. CLINICALLY PROVEN TO HELP YOU LOOK MORE YOUTHFUL.
  • 57. - 6,000 12,000 18,000 24,000 30,000 6/1/21 7/1/21 8/1/21 9/1/21 10/1/2111/1/2112/1/21 1/1/22 Collagen+ Subscription (US) LifePak Nano (US) Number of Customer Subscriptions Source: Nu Skin Internal Data 6/2021-1/2022
  • 58. $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2018 2019 2020 2021 Manufacturing Segment Overview (in Millions)
  • 59. • $673.4 M of revenue • FX negative impact of 2% • 120 basis point non-GAAP gross margin improvement • Lingering COVID-19 impact and restrictions FINANCIAL HIGHLIGHTS Q4 2021
  • 60. • Revenue $2.70 B, 4% YOY revenue improvement, 11% YOY compared to 2019 • 70 basis point gross margin improvement • 90 basis point increase non-GAAP operating margin • Repurchased $80.4 M of stock – 3% • Generated $142 M cash from operations • Increased dividend for 21st year in early 2022 FINANCIAL HIGHLIGHTS 2021
  • 61. Q 1 2 0 2 2 Guidance Overview Q1 Revenue Q1 EPS $560 - $590 M $0.65 - $0.75 (2) to (3)% foreign currency impact 21 to 25% tax rate
  • 62. (1) to +3% revenue growth (1) to (2)% foreign currency impact Annual Revenue $2.66 - 2.77 B EPS $4.05 – 4.45 Operating Margin 11 – 11.5% (2) to 8%* 25% to 30% tax rate * Non GAAP – see reconciliation 2 0 2 2 Guidance Overview
  • 63. 2019 2020 *2021 2022 Forecast 76% 74.5% 75.2% 75-76% * Non GAAP – see reconciliation Gross Margin
  • 64. 2019 2020 2021 2022 Forecast % O F R E V E N U E 39.5% 39.5% 39.6% 39-40% Selling Expense
  • 65. 2019 2020 2021 2022 Forecast 25.4% 25.0% 24.7% 24-25% G&A Expense
  • 66. 2019 2020 *2021 2022 Forecast *Non-GAAP, see reconciliation 11% 10% 10.9% 11-11.5% Operating Margin
  • 67. 2019 2020 2021 2022 Forecast $-12.9 $-1.3 $-1.5 $-2 to $-6 Other Income/Expense
  • 68. 2019 2020 * 2021 2022 Forecast 32.0% 25.3% 26.9% 25%-30% Tax Rate *Non-GAAP, see reconciliation
  • 69. 2019 2020 *2021 2022 Forecast Earnings Per Share $3.10 $3.63 $4.14 $4.05 - $4.45 *Non-GAAP, see reconciliation
  • 70. Annual Dividend $0.20 $0.24 $0.28 $0.32 $0.36 $0.40 $0.42 $0.44 $0.46 $0.50 $0.59 $0.80 $1.20 $1.38 $1.40 $1.42 $1.44 $1.46 $1.48 $1.50 $1.52 $1.54 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (proj) 21 YEARS OF GROWTH
  • 71. Cash Overview • xxxx 2 0 2 1 C A S H H I G H L I G H T S Cash From Operations $250-300M CASH FLOW 2022 BREAKOUT Depreciation & Amortization $80M CAPEX $70-90M +$15M for China Facility
  • 72. NU VISION 2025 To become the world’s leading integrated beauty & wellness company, powered by our dynamic affiliate opportunity platform
  • 73. Q&A Nu Skin Investor Day
  • 74. NON-GAAP RECONCILIATION TABLES NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Restructuring and Impairment to GAAP Earnings Per Share (in thousands, except per share amounts) Years Ended December 31, 2021 Net income $ 147,266 Impact of restructuring and impairment: Restructuring and impairment 51,870 Inventory write-off 6,656 Income tax impact 6,933 Adjusted net income $ 212,725 Diluted earnings per share $ 2.86 Diluted earnings per share, excluding restructuring and impairment impact $ 4.14 Weighted-average common shares outstanding (000s): 51,427 NU SKIN ENTERPRISES, INC. Reconciliation of Effective Tax Rate Excluding Impact of Restructuring to GAAP Effective Tax Rate (in thousands, except per share amounts) Years Ended December 31, 2021 Provision for income taxes $ 85,193 Impact of restructuring on tax provision (6,933) Provision for income taxes, excluding impact of restructuring $ 78,260 Income before provision for income taxes $ 232,459 Impact of restructuring and impairment: Restructuring and impairment 51,870 Inventory write-off 6,656 Income before provision for income taxes, excluding restructuring and impairment impact $ 290,985 Effective tax rate 36.6% Effective tax rate, excluding restructuring and impairment impact 26.9%
  • 75. NON-GAAP RECONCILIATION TABLES NU SKIN ENTERPRISES, INC. Reconciliation of Gross Margin Excluding Impact of Restructuring and Impairment to GAAP Gross Margin (in thousands, except per share amounts) NU SKIN ENTERPRISES, INC. Reconciliation of Operating Margin Excluding Impact of Restructuring to GAAP Operating Margin (in thousands, except per share amounts) Three Months Ended Years Ended December 31, December 31, 2021 2020 2021 2020 Operating income $ 20,319 $ 88,697 $ 233,992 $ 257,564 Impact of restructuring and impairment: Restructuring and impairment 51,870 — 51,870 — Inventory write-off 6,656 — 6,656 — Adjusted operating income $ 78,845 $ 88,697 $ 292,518 $ 257,564 Operating margin 3.0% 11.9% 8.7% 10.0% Operating margin, excluding restructuring and impairment impact 11.7% 11.9% 10.9% 10.0% Operating margin improvement (8.9)% (1.3)% Operating margin improvement, excluding restructuring and impairment impact (0.2)% 0.9% Revenue $ 673,436 $ 748,193 $ 2,695,669 $ 2,581,934 Three Months Ended Years Ended December 31, December 31, 2021 2020 2021 2020 Gross Profit $ 499,661 $ 553,442 $ 2,020,446 $ 1,923,906 Impact of restructuring and impairment: Inventory write-off 6,656 — 6,656 — Adjusted Gross Profit $ 506,317 $ 553,442 $ 2,027,102 $ 1,923,906 Gross margin 74.2% 74.0% 75.0% 74.5% Gross margin, excluding restructuring and impairment impact 75.2% 74.0% 75.2% 74.5% Gross margin improvement 0.2% 0.5% Gross margin improvement, excluding restructuring and impairment impact 1.2% 0.7% Revenue $ 673,436 $ 748,193 $ 2,695,669 $ 2,581,934
  • 76. Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to- period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period. NON-GAAP – CONSTANT CURRENCY The following table sets forth revenue growth % for the years ended December 31, 2021 and projected 2022 for each of our reportable segments : 2021 2022 Projected Nu Skin: Reported Change Constant-Currency Change Reported Change Constant-Currency Change Mainland China -9% -15% -5 to 5% -5 to 5% Americas 21% 20% 5 to 10% 6 to 12% South Korea 9% 6% 0 to 4% 2 to 6% Southeast Asia/Pacific -7% -9% -10 to -5% -10 to -5% Japan -3% 0% -5 to 0% -1 to 4% EMEA 23% 18% 5 to 10% 8 to 13% Hong Kong/Taiwan 1% -2% -5 to 5% -5 to 5% Total Nu Skin 4% 1% -1 to 3% 0 to 5% Manufacturing 16% 16% -5 to 5% -5 to 5%