Nu Skin Enterprises : Q3 2023 Earnings Call Slides

Q3 2023

Overview

Important Information RegardingForward-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 macro-environment and the company's performance, growth, shareholder value, strategies, vision, transformation, initiatives, product pipeline and product introductions, product eliminations, digital and social-commerce tools and initiatives, customers, sales leaders and affiliates, restructuring initiatives, and operational improvements; statements of management's expectations regarding the company's acquisitions, anticipated benefits of acquisitions, and performance of acquired companies; projections regarding revenue (including future Rhyz revenue), expenses (including restructuring charges), tax

rate, earnings per share, foreign currency fluctuations, dividends, cash from operations, uses of cash, capital expenditures, 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, includingCOVID-19 and related disruptions, or 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, including trade policies, associated with operating in Mainland China and other international markets;
• 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 offoreign-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 inventorywrite-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;
• economic conditions and events globally;
• the company's futuretax-planning initiatives; any prospective or retrospective increases in duties or tariffs 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.

Q3 Overview

	Manufacturing/	Mainland
	Other	China
Revenue $498.8 million, (7%) YOY; (1%) FX	12%	14%
impact or $8.1 M
Japan	Hong Kong /
		Taiwan
	11%	8%

EPS $(0.74) or $0.56 excluding an inventory
write off; compared to $(0.51) or $0.47 excluding
restructuring and impairment charges	14%
	Southeast Asia
	/ Pacific
Customers (21%), Paid Affiliates
(23%), Sales Leaders (6%), YOY

Q3 Revenue

Distribution

18%

13%10%Americas

South

KoreaEurope &

Africa

Customer/Paid Affiliates/Sales Leader Performance

Market

Q3 2023

Mainland China	Customers
189,221
Americas	231,215
S.E. Asia / Pac	111,151
South Korea	109,550
Japan	114,316
Europe & Africa	169,320
HK / Taiwan	54,134
Total	978,907

YOY % Change

(26)%

(27)%

(28)%

(19)%

(6)%

(10)%

(23)%

(21)%

Paid Affiliates

27,509

32,769

33,574

24,110

37,695

19,254

11,251

186,162

YOY % Change

19%

(27)%

(17)%

(50)%

(1)%

(39)%

(35)%

(23)%

Sales Leaders

12,647

7,537

6,351

6,436

7,087

4,105

2,868

47,031

YOY % Change

6%

(21)%

(17)%

(8)%

17%

(14)%

(2)%

(6)%

Customers

Affiliates

Sales Leaders

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
21	21	22	22	22	22	23	23	23

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
21	21	22	22	22	22	23	23	23

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
21	21	22	22	22	22	23	23	23

Q3 Revenue by Segment (M)

Mainland China (7)%	$70.2
Americas (30)%		$91.7
South Korea (5)%	$63.7
Southeast Asia / Pacific (18)%	$68.7
Japan 0%	$53.4
Hong Kong / Taiwan 3%	$40.7
Europe & Africa 11%	$50.0
Rhyz 45%	$60.5	Q3 23	Q3 22

*Amounts and percentages are in reported currency

Customers by Segment (000's)

Mainland China (26)%		189
Americas (27)%		231
Southeast Asia / Pacific (28)%		111
South Korea (19)%		110
Japan (6)%		114
Europe & Africa (10)%		169
Hong Kong / Taiwan (23)%	54	Q3 23	Q3 22

Paid Affiliates by Segment

Mainland China 19%		27,509
Americas (27)%		32,769
Southeast Asia / Pacific (17)%		33,574
South Korea (50)%		24,110
Japan (1)%		37,695
Europe & Africa (39)%		19,254
Hong Kong / Taiwan (35)%	11,251	Q3 23 Q3 22

During the quarter, the company made an adjustment to eligibility requirements, negatively impacting affiliate counts in several markets

Sales Leaders by Segment

Mainland China 6%		12,647
Americas (21)%	7,537
Southeast Asia / Pacific (17)%	6,351
South Korea (8)%	6,436
Japan 17%	7,087
Europe & Africa (14)%	4,105
Hong Kong / Taiwan (2)%	2,868	Q3 22
	Q3 23

Operational Performance

* Gross Margin

67.7%

58.6%

Selling

Expenses

40.3%

37.6%

G&A Expense

25.7% 26.2%

• Operating Margin

Q3 22

Q3 23

-3.8%-5.3%

Q3 22

Q3 23

Nu Skin business was 61.8% or 76.8% excluding inventory write off

Q3 22

Q3 23

Nu Skin business was 41.7% in Q3 '23 compared to 43.5%

Q3 22

Q3 23

* Percentages reflect reported currency, see reconciliation table for non-GAAP #'s

Shareholder Value

(Annual Dividend)

Q3 Dividend Payment

• $19.5 million

Q3 Stock Repurchases

• $13.0 million

$1.38 $1.40 $1.42 $1.44 $1.46$1.48$1.50 $1.52 $1.54 $1.56

$1.20

$0.80

$0.59

$0.20 $0.24 $0.28 $0.32$0.36$0.40 $0.42 $0.44 $0.46 $0.50

Projected

2001	2023