Nu Skin Enterprises : Q2 2022 Earnings Call Slides

Nu Skin Q2 2022

Overview

Important Information Regarding Forward-LookingStatements: 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, growth, shareholder value, strategies, vision, transformation, initiatives, product pipeline and product introductions, digital and social-commerce tools and initiatives, customers, sales leaders and affiliates, and operational improvements; statements of management's expectations regarding the future status of the COVID-19 pandemic globally and across the company's markets, and government and public behavior in response to such status; projections regarding revenue, expenses, earnings per share, foreign currency fluctuations, dividends, uses of cash 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," "continue," "anticipate," "project," "outlook," "guidance," "plan," "continue," "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;
• 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. 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.

Q2 Results

Revenue $560.6 million, (20%) YOY; (5%) fx impact

	Manufacturing	Other	Mainland
Japan	7%	0%	China
		16%
	10%

Hong Kong /

7%

Taiwan

EPS $0.67; or $0.77 excluding charges associated with	17%	Revenue
our Q4 exit from Grow Tech, compared to $1.15 Q2 21	Distribution
Southeast Asia		22%
/ Pacific
Customers (6%), Paid Affiliates (16%),	12%	Americas /
Pacific

Sales Leaders (24%), YOY	South Korea	9%

EMEA

Customer / Sales Leader / Paid Affiliate Performance

	Market							Q2 2022
	Customers	YOY % Change		Paid Affiliates		YOY % Change	Sales Leaders	YOY % Change
	Mainland China	392,268	19%		19,257		(52)%		11,458	(45)%
	Americas	302,849	(18)%		44,523		(17)%			9,320	(21)%
	S.E. Asia / Pac	152,775	(8)%		41,512		(7)%			8,407	3%
	South Korea	135,290	(12)%		48,605		(8)%			6,557	(15)%
	Japan	122,643	(2)%		38,269		(1)%			6,097	1%
	EMEA	205,379	(22)%		32,323		(24)%		5,192	(35)%
	HK / Taiwan	69,411	7%		17,644		(1)%			3,054	(11)%
	Total	1,380,615	(6)%		242,133		(16)%		50,085	(24)%
	Customers				Paid Affiliates					Sales Leaders

Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
2020	2020	2020	2021	2021	2021	2021	2022	2022	2020	2020	2020	2021	2021	2021	2021	2022	2022	2020	2020	2020	2021	2021	2021	2021	2022	2022

Revenue by Segment (M)

Mainland China (44)%									$86.8
Americas (10)%													$124.4
South Korea (22)%							$	69.3
Southeast Asia / Pacific 12%										$94.1
Japan (18)%						$56.0
Hong Kong / Taiwan 2%					$39.3
EMEA (39)%					$50.9
Rhyz (20)%					$38.5
Other 39%		$1.3																Q2 22				Q2 21
*Amounts and percentages are in reported currency
0	20	40	60	80	100	120	140	160	180