NU SKIN ENTERPRISES€¦ · recharge Vitality 2010-11 Skin Treatment Daily Skin Care Cellular...

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NU SKIN ENTERPRISES December 2011 1

Transcript of NU SKIN ENTERPRISES€¦ · recharge Vitality 2010-11 Skin Treatment Daily Skin Care Cellular...

Page 1: NU SKIN ENTERPRISES€¦ · recharge Vitality 2010-11 Skin Treatment Daily Skin Care Cellular Energy renew rejuvenate ageLOC: LONG-TERM GROWTH POTENTIAL Applying ageLOC science to

NU SKIN ENTERPRISES December 2011

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Page 2: NU SKIN ENTERPRISES€¦ · recharge Vitality 2010-11 Skin Treatment Daily Skin Care Cellular Energy renew rejuvenate ageLOC: LONG-TERM GROWTH POTENTIAL Applying ageLOC science to

Q3 2011 HIGHLIGHTS

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GLOBAL REVENUE (in millions)

$383.6

$428.4

$300

$325

$350

$375

$400

$425

$450

Q3 2010 Q3 2011

US Dollar Growth = 12%

• Local currency growth = 4% • FX benefit = 8%

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EARNINGS PER SHARE

$0.55

$0.72

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

Q3 2010 Q3 2011

OPERATING MARGIN

13.8%

15.7%

10%

11%

12%

13%

14%

15%

16%

17%

Q3 2010 Q3 2011

Q3 2011 HIGHLIGHTS

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Operating Income +27%

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COMPANY STRENGTHS

Strong Product Portfolio

Sales Force Expansion

Emerging Market Opportunity

1

2

3

Profitability Improvements 4

4

Strong Cash Position 5

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COMPANY STRENGTHS

Strong Product Portfolio 1

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Q3 2011 REVENUE BY PRODUCT BRAND

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55% 45%

PERSONAL CARE NUTRITION

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PRODUCT PHILOSOPHY

• Premium quality products

• Committed to science

• Innovation is critical

• Focus on products that address sources of aging

• Proprietary collaborations

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restage 2012-18

restore Alpha 2013-15 Longevity

remodel Gamma 2013-15 Weight Management

reverse Delta 2015-17 Tissue Repair

Kappa regenerate 2015-17 Personalization

recharge/ renew R2/Body Galvanic 2012-13 Cell Renewal/

Body Treatment

Galvanic Spa 2007

Transformation 2009

recharge Vitality 2010-11

Skin Treatment

Daily Skin Care

Cellular Energy

renew

rejuvenate

ageLOC: LONG-TERM GROWTH POTENTIAL

Applying ageLOC science to existing products

$250 M

$175 M

$100 M

$100 M

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• Minimizes the appearance of cellulite for a slimmer looking body

• Provides the body with a smooth, contoured appearance

• Improves appearance of skin firmness

• Energizes and purifies skin

• Moisturizes the skin

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BODY GALVANIC SPA

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ageLOC R2

NIGHT Purifies and restores cells while you sleep. Wake up feeling refreshed and renewed. DAY Kick-starts cells for maximum energy production leaving you recharged and ready for the day.

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GLOBAL PRODUCT LAUNCH SCHEDULE

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Q1 Q2 Q3 Q4 Q1 Q2

Japan

Korea

Greater China

Americas

South Asia/Pacific

EMEA

Pre-Launch LTO Launch

Pacific launch only

Pacific launch only

2012 2013

Mainland launch only

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COMPANY STRENGTHS

Strong Product Portfolio

Sales Force Expansion

1

2

12

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RECRUITING RETENTION RATE OF PRODUCTIVITY

ACCELERATED REVENUE GROWTH

ACTIVE DISTRIBUTORS

RATE OF PRODUCTIVITY

REVENUE GROWTH MODEL

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20,000

25,000

30,000

35,000

40,000

45,000

Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11

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• Good indicator of  “health”  of  business

• 5% Active growth in 2010

• 9% Executive growth in 2010

660,000

690,000

720,000

750,000

780,000

810,000

840,000

870,000

Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11

SALES FORCE EXPANSION AC

TIVE EXECU

TIVE

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GLOBAL BUSINESS PROFILE Sales in Thousands USD

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

25,000

27,000

29,000

31,000

33,000

35,000

37,000

39,000

41,000

Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11

Executives

Sales

Exec

utiv

e Di

strib

utor

s

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18%

2003

56%

2011

Recurring revenue as a percent of sales SUBSCRIPTION PROGRAM

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COMPANY STRENGTHS

Strong Product Portfolio

Sales Force Expansion

Emerging Market Opportunity

1

2

3

17

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18%

22%

27%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2009 2010 2011Projected

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AS A PERCENT OF REVENUE GROWTH IN EMERGING MARKETS

• Mainland China

• Southeast Asia

• Eastern Europe

• Central & South America

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• World’s  fastest  growing direct selling region

• Project revenue growth of 12-15% in 2012

Revenue Trend in Mainland China (YOY)

2003 - 2011 USD REVENUE TREND

11.2%

23.7% 17.9%

29.5% 36.5%

46.8%

76.6% 69.3%

0%

20%

40%

60%

80%

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

GREATER CHINA

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• Key drivers include weight management and ageLOC

• 32.8% CAGR since 2008

• R2 - Q3 2012

• Project revenue growth of 10-15% in 2012

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2003 - 2011 USD REVENUE TREND

17%

28%

28%

6%

12%

9% Singapore

Malaysia

Thailand

Philippines

Australia/New Zealand

Indonesia

2011 SALES

SOUTH ASIA / PACIFIC

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COMPANY STRENGTHS

Strong Product Portfolio

Sales Force Expansion

Emerging Market Opportunity

1

2

3

Profitability Improvements 4

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7.8%

10.1%

11.9%

14.1%

15.2 – 15.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2007* 2008 2009* 2010 2011**

*Excludes restructuring and impairment of assets and other.

Projected

** Excludes impact of Japan customs case.

2007 – 2011 OPERATING MARGIN

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$0.75

$1.02

$1.51

$2.11

$2.62 – $2.66

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2007* 2008 2009* 2010 2011**

2007 – 2011 EARNINGS PER SHARE

*Excludes restructuring and impairment of assets and other. ** Excludes impact of Japan customs case. 23

Projected

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+1.4%

-0.4%

+6.7% ~15.3%

7.8%

0.0%

4.0%

8.0%

12.0%

16.0%

FY 2007 Gross Margin* Selling Expense G&A FY 2011*Projected

* Excludes impact of Japan customs case.

2007 – 2011 OPERATING MARGIN FACTORS

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COMPANY STRENGTHS

Strong Product Portfolio

Sales Force Expansion

Emerging Market Opportunity

1

2

3

Profitability Improvements 4

25

Strong Cash Position 5

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$49

$103

$134

$188

$220

$-

$50

$100

$150

$200

$250

2007 2008 2009 2010 2011Projected

Mill

ions

USD

2007 – 2011 CASH FROM OPERATIONS

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$50

$100

$150

$200

$250

Cash Debt

UTILIZE CASH FLOW TO CREATE SHAREHOLDER VALUE: STRONG BALANCE SHEET (in millions USD)

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$0.20

$0.24

$0.28

$0.32

$0.36

$0.40 $0.42

$0.44 $0.46

$0.50

$0.59

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

INCREASING DIVIDEND HISTORY

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Repurchased $53 MM (1.6 MM shares) at a weighted average price of $34.13

Outstanding shares repurchased per year ~2%

Average share purchase price $19.62

Average shares purchased per year 2.3 MM

~$46 MM Average purchase amount per year

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2004 - 2010

2011 (Q1-Q3)

STOCK REPURCHASE ACTIVITY

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COMPANY STRENGTHS

Strong Product Portfolio

Sales Force Expansion

Emerging Market Opportunity

1

2

3

Profitability Improvements 4

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Strong Cash Position 5