icr conference
play

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,


  1. ICR CONFERENCE

  2. 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 st ate ments of historical fact are “forward - looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of mana gem ent’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 outs tanding; 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 flu ctuations; 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 com pany’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 s ales 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 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. 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.

  3. Company Overview 3

  4. Nu Skin Overview Direct Seller ~ 50 markets worldwide ~ 1 million customers & sales leaders 200 plus product sku’s 2.2 billion sales in 2015 4

  5. Revenue by Brand Personal Care Q3 2016 43% Nutrition 57% Sales Nu Skin Pharmanex 5

  6. Cash vs Debt Cash & Cash Equivalents Debt 600,000 500,000 400,000 300,000 200,000 100,000 0 2013 2014 2015 2016 6

  7. Regional Breakdown South Asia/Pacific Singapore Malaysia 35.8% Greater China Others Taiwan Americas 11.7% Hong Kong China USA Q3 2016 Canada Sales Latin America North Asia 11.8% Japan EMEA South Korea Europe 34.5% 6.1% Russia/Ukraine Israel/South Africa 7

  8. Greater China Greater China Revenue $250 Improvement in core business metrics $200 Millions $150 Introduced ageLOC Me in Q2 2016 (Launch Q1 2017) $100 $50 $0 Mainland China Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 200,000 Actives Actives Sales Leaders 150,000 300,000 40,000 250,000 100,000 30,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 200,000 20,000 30,000 Sales Leaders 150,000 10,000 100,000 20,000 0 50,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10,000 15 15 15 15 16 16 16 15 15 15 15 16 16 16 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 8

  9. North Asia Revenue $250 Steady performance in the face of industry pressure $200 Millions $150 Introductions of ageLOC Youth and ageLOC Me $100 $50 $0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Actives Sales Leaders 450,000 20,000 350,000 18,000 16,000 250,000 14,000 150,000 12,000 50,000 10,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 9

  10. South Asia/Pacific Revenue Strong ageLOC Youth LTOs in Q3 2015 and Q2 2016 $120 $100 Strong growth in Australia/New Zealand $80 Millions General stabilization with sequential improvement in $60 Actives $40 $20 Pockets of social selling success throughout the region $0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Actives Sales Leaders 130,000 12,000 120,000 10,000 110,000 8,000 100,000 90,000 6,000 80,000 4,000 70,000 2,000 60,000 50,000 0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 10

  11. Americas Revenue Q4 2015 LTO of ageLOC Youth $120 $100 Sequential improvements throughout 2016 $80 Millions $60 Q4 2016 launch of ageLOC Me (no 2016 LTO) $40 $20 Volatile Latin America operating environment $0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 North America Sales Leaders Actives Actives 10,000 200,000 200,000 150,000 8,000 180,000 100,000 6,000 50,000 160,000 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 4,000 140,000 Sales Leaders 2,000 8,000 120,000 0 3,000 100,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -2,000 15 15 15 15 16 16 16 15 15 15 15 16 16 16 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 11

  12. EMEA Revenue Positive trends in Actives and Sales Leaders $40 Growth driven by social selling and core products $35 Millions $30 Successful seasonal promotion cycle $25 Launch of ageLOC Me in H1 2016 $20 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 U.K. Revenue Actives Sales Leaders 6,000,000 130,000 4,500 5,000,000 4,000 110,000 4,000,000 3,500 GBP 90,000 3,000,000 3,000 70,000 2,000,000 2,500 1,000,000 50,000 2,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 15 15 15 15 16 16 16 15 15 15 15 16 16 16 Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 12

  13. 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% 13

  14. Growth Opportunities 14

  15. Product Launch History Transformation Body Spa TFEU restage ageLOC Me $1.0B plus $700M plus $300M plus $220M 2011-2012 2013-2014 2015-2016 2009-2010 Facial Spa R 2 ageLOC Youth TR90 $1.5B plus page $240M $1.0B plus $1.0B plus 015 Cumulative revenue through Q3 2016

  16. Recently Introduced & Product Pipeline 16

  17. 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 67

  18. Growing Consumer Base – ageLOC Me ageLOC Me Cartridge Sets Sold 120,000 100,000 80,000 60,000 40,000 20,000 - Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 * 1 cartridge set = 5 cartridges 18

  19. ageLOC Youth • Positive influence on age- related genes • Systemic anti-aging benefits • Proprietary blend of ingredients difficult to obtain through diet 67

  20. ageLOC LumiSpa • Instant and long-term benefits: smoothness, softness, exfoliation, pore size, texture, clarity, radiance, the appearance of fine line and wrinkles, and firmness • Daily regimen • Extremely well tolerated • Broad demographic appeal • Synergy with Nu Skin treatments 67

Recommend


More recommend