Financial Highlights Q November 7, 2018

Transcription

1 Financial Highlights Q November 7,

2 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 performance, sales force and customer base, growth, initiatives and areas of focus, acquisitions, strategy and new product introductions; projections regarding revenue, earnings per share, foreign currency fluctuations, tax rates, 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, outlook, project, anticipate, 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 forwardlooking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following: adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others; risk that direct selling laws and regulations in any of our markets, including the United States and Mainland 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; 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; 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 company s recent acquisitions; 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 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 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; unpredictable economic conditions and events globally; uncertainties related to interpretation of, and forthcoming regulations under, the recently enacted U.S. tax reform legislation; 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. 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 Q3 Takeaways Revenue +20% Earnings per share +24% Q3 Growth strategy execution: Customers +9%, Sales Leaders +14%

4 Q3 Results $ Revenue (M) EPS $0.94 $ $675.3 $0.90 $ $563.7 $0.76 $ $0.70 $ $ $ $0.50 $ $0.00 $0.30 $675.3 million, up 20%, positively impacted by sales leaders and customer growth. Partially offset by (3%) FX headwind. Increased 24% to $0.94, compared to $0.76 in the prior-year period. Reflects an ($0.07) FX translation loss and ($0.04) purchase accounting charge.

5 Q3 Revenue Results Highlights % of Revenue 20% YOY revenue growth LumiSpa contributed $72.5 m EMEA Other Mainland China Reported growth in all regions 4% Hong Kong / Taiwan 6% 34% 7% Japan 9% Q % 14% Southeast Asia 13% Americas / Pacific South Korea

6 Sales Force Performance Q Q YOY % Change Market Customers Sales Leaders Customers Sales Leaders Customers Sales Leaders Mainland China 210,000 33, ,000 25,600 11% 30% Korea 180,000 7, ,000 8,400 (3%) (8%) Americas/Pacific 277,000 8, ,000 8,000 17% 6% S.E. Asia 147,000 8, ,000 7,100 16% 23% Japan 131,000 6, ,000 6,500 - (5%) HK/Taiwan 76,000 4,400 71,000 4,300 7% 2% EMEA 145,000 4, ,000 4,300 13% - Total 1,166,000 73,100 1,069,000 64,200 9% 14% Sales Leaders (000's) Customers (000's) ,060 1,069 1,070 1,086 1,148 1,166 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

7 Mainland China Q3 Highlights Mainland China Revenue (millions) $ % $ % Local currency revenue growth +34% Sales Leader growth +30% Sales Leaders (000's) Customers (000 s) Strong interest in Probiotic launch % % 210 Continued customer demand for products

8 Americas / Pacific Q3 Highlights Local currency revenue growth +20% Americas / Pacific Revenue (millions) $ % $85.7 Social sharing remains key driver Sales Leaders (000's) Customers (000 s) October Velocity launch in Latin America % % 277 Strong growth in Mexico, Argentina and Chile

9 SOUTH KOREA Q3 Highlights S. Korea Revenue (000's) +1% $89.2 $90.0 Constant currency revenue even Preparation for Velocity launch in October Sales Leaders (000's) Customers (000 s) Sequential improvement in sales leaders 8.4 (8)% (3)% 180 Restage of best-selling Nu Skin 180º

10 SEA Q3 Highlights SEA Revenue (000's) +21% $86.3 $71.1 Local currency revenue growth +24% Growth driven by social sharing initiatives Sales Leaders (000's) Customers (000 s) Strong sales leaders and customer growth % % 147 Continued momentum with LumiSpa

11 JAPAN Q3 Highlights $62.5 Japan Revenue (000's) +2% $63.6 Local currency revenue growth +2% Challenging regulatory environment and aging demographic Sales Leaders (000's) Customers (000 s) Q3 Velocity launch benefitted customer acquisition 6.5 (5)% 6.2 0%

12 HONG KONG / TAIWAN Q3 Highlights $41.1 HK/Taiwan Revenue (000's) +9% $44.9 Local currency revenue growth +10% Customer and sales leader growth Sales Leaders (000's) Customers (000 s) Strong interest in LumiSpa +2% % 76

13 EMEA Q3 Highlights $40.1 EMEA Revenue (000's) +7% $42.8 Local currency revenue growth +8% Positive results from product initiatives Sales Leaders (000's) Customers (000 s) Continued expansion of social sharing 0% % 145

14 Operational Performance G&A Expense Selling Expense Operating Margin Gross Margin 41.7% 40.2% 11.4% 11.9% 78.6% 76.7% 25.4% 24.5% *Core Nu Skin = 41.8% *Core Nu Skin = 78.7%

15 Shareholder Value Annual Dividend Cash Usage $1.38 $1.40 $1.42 $1.44 Q3 Dividend Payment $1.20 $20.3 million Q3 Stock Repurchases $12.4 million $0.80 $492 million remaining in authorization $0.59 $0.20 $0.24 $0.28 $0.32 $0.36 $0.40 $0.42 $0.44 $0.46 $

16 (in millions) Guidance Q4 Outlook Q4 Revenue: Q4 EPS: $665 to $685 million (0%-3% growth) and includes an approx. 4%-5% negative fx impact $1.00 to $1.07 which includes an estimated $0.04 purchase accounting charge 2018 Revenue: $2.66 billion to $2.68 billion, 17% to 18% growth neutral fx impact 2018 EPS: $3.48 to $3.55 including ($0.20) fx and ($0.16) purchase accounting charges Revenue $666.2 Guidance $616.2 $704.2 $675.3 $665-$ % +23% +28% +20% 0-3% Q Q Q Q Q4 2018

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