NU Skin Enterprises, Inc. (NYSE:NUS) Q4 2022 Earnings Conference Call February 15, 2023 5:00 PM ET Company Participants Scott Pond - VP, IR Ryan Napierski - President, CEO & Director Connie Tang - EVP & Chief Global Growth & Customer Experience Officer Mark Lawrence - EVP & CFO Conference Call Participants Mark Astrachan - Stifel, Nicolaus & Company Chasen Bender - Citigroup Operator Good day and thank you for standing by. Welcome to the Fourth Quarter 2022 Nu Skin Enterprises Earnings Conference Call. [Ope ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-12421 NU SKIN ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Delaware 87-0565309 (State or other ju ...

Nu Skin Enterprises, Inc. (NYSE:NUS) Q3 2022 Earnings Conference Call November 2, 2022 5:30 PM ET Company Participants Scott Pond - Vice President of Investor Relations Ryan Napierski - President & CEO Mark Lawrence - CFO Connie Tang - Chief Global Growth Officer Conference Call Participants Operator Good day, and thank you for standing by. Welcome to the Nu Skin Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be ...

Financial Data and Key Metrics Changes - For Q2 2022, the company reported revenue of $560.6 million, reflecting a negative foreign currency impact of 5% or $34.6 million [17] - Reported earnings per share (EPS) for the quarter was $0.67, or $0.77 when excluding additional charges related to the exit from Grow Tech [17] - Gross margin was 73.6%, showing a sequential improvement over the prior quarter, but was negatively impacted by foreign currency exchange rates and increased promotions [18] - Operating margin for the quarter was 9.2%, down from 12.1% in the prior year period, with expectations for sequential gains in the second half of 2022 [19] - Cash from operations was $46.5 million, compared to $20.7 million in the prior year, with a $27 million reduction in inventory during the quarter [19][20] Business Line Data and Key Metrics Changes - The Rhyz segment, which includes manufacturing partners, declined 20% in the quarter due to soft demand for external customer products [21] - The core Nu Skin business saw a gross margin of 77%, compared to 78.3% in the prior year quarter [18] Market Data and Key Metrics Changes - Revenue in Mainland China was down 42% in local currency, significantly impacted by extended COVID-related lockdowns [11] - Hong Kong and Taiwan grew 6% in constant currency, driven by product launches and social commerce [12] - The Americas, particularly the US, delivered a 6% year-over-year revenue increase, marking the ninth consecutive quarter of growth [12] - EMEA segment revenue was down 31% in constant currency due to geopolitical distractions [13] - Southeast Asia Pacific saw a 16% increase in constant currency revenue, driven by the ageLOC Meta product [13] Company Strategy and Development Direction - The company is focused on Nu Vision 2025, aiming to become a leading integrated beauty and wellness company powered by an affiliate opportunity platform [4][6] - Key strategic imperatives include personalized beauty and wellness, affiliate-powered social commerce, and a digital-first ecosystem [6][9] - The introduction of the LumiSpa iO device is a significant step in the company's strategy to connect with customers on a personal level [7][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro challenges, including lockdowns in China and economic uncertainties in emerging markets [4][14] - The company anticipates continued headwinds in several regions and has adjusted its 2022 outlook accordingly [14][22] - A restructuring event is planned for the second half of the year, expected to yield approximately $100 million in cost savings in 2023 [15][22] Other Important Information - The company has closed a $900 million debt facility to strengthen its financial position and support Nu Vision 2025 [20] - The effective tax rate for the quarter was 20.2%, down from 27.1% in the prior year, primarily due to strong growth in the US market [20] Q&A Session Summary Question: Can you provide insights on key markets and the launch timeline for LumiSpa iO and digital tools? - Management indicated that LumiSpa iO will have limited introductions in Q3, with broader launches in Q4, while digital tools will continue to roll out throughout Q3 and Q4 [26][27] Question: What feedback has been received regarding Collagen+ and its integration? - Collagen+ is performing well and is a top five product, with positive feedback on its integration with LumiSpa [30][32] Question: Can you elaborate on the cost restructuring program and its implementation? - The restructuring program is focused on reallocating resources to align with growth areas, with an expected $100 million in savings for 2023 [33][35] Question: What is the impact of the one price incentive structure on sales leaders? - The one price model aims to institutionalize retail margins into products, facilitating sales for new brand affiliates [38][40] Question: When can positive revenue growth in China be expected? - Management expressed uncertainty regarding the timeline for returning to positive growth in China due to ongoing COVID restrictions [47][50] Question: How has the recent price increase affected pricing elasticity and gross margin? - Management noted that while inflationary pressures exist, the value proposition of products remains strong, and they are committed to managing price increases carefully [52][55]

Revenue Performance - Revenue for Q2 2022 decreased 20% to $560.6 million, compared to $704.1 million in Q2 2021, and for the first half of 2022, revenue decreased 16% to $1.2 billion from $1.4 billion in the prior-year period [90]. - The total revenue for Rhyz Investments decreased 20% to $38.5 million in Q2 2022 compared to $48.2 million in Q2 2021 [94]. - U.S. market revenue increased 6% in Q2 2022 and 10% in the first half of 2022, driven by product launches including Beauty Focus Collagen+ and Nu Biome [103]. - Southeast Asia/Pacific segment revenue increased 12% in Q2 2022, with ageLOC Meta generating approximately $18.2 million in revenue for the quarter [108]. Earnings and Profitability - Earnings per share for Q2 2022 decreased 42% to $0.67, compared to $1.15 in Q2 2021, and for the first six months of 2022, earnings per share decreased 31% to $1.43 from $2.06 in the prior-year period [91]. - The company reported a decline in gross margin due to sales promotions, contributing to the decrease in earnings per share [91]. - Gross profit margin decreased to 73.6% in Q2 2022 from 75.6% in Q2 2021, attributed to increased sales promotions and a shift in product mix [116]. - Net income for Q2 2022 was $34.2 million, down from $59.3 million in Q2 2021, and for the first half of 2022 was $73.0 million compared to $106.8 million in the prior year [122]. Customer and Affiliate Metrics - The number of Customers declined by 6% year-over-year to 1,380,615, with significant declines in the Americas (18%) and EMEA (22%) regions [99]. - Paid Affiliates decreased by 16% year-over-year to 242,133, with the most significant drop in Mainland China (52%) and EMEA (24%) regions [100]. - Sales Leaders decreased by 24% year-over-year to 50,085, with a notable decline in Mainland China (45%) and EMEA (35%) regions [101]. - Customers in Mainland China increased by 19% in Q2 2022, primarily due to customer promotions and the launch of digital tools [105]. Expenses and Cost Management - Selling expenses as a percentage of revenue decreased to 39.1% in Q2 2022 from 39.9% in Q2 2021 [117]. - General and administrative expenses decreased to $141.6 million in Q2 2022 from $166.1 million in Q2 2021, with a notable reduction in labor expenses [118]. - The company anticipates restructuring charges of approximately $30 million for Q3 2022 and $35–$45 million for the second half of 2022 [91]. Cash and Capital Management - Working capital increased to $498.8 million as of June 30, 2022, compared to $343.3 million at the end of 2021, primarily due to debt modification [124]. - Capital expenditures for the first half of 2022 were $19.8 million, with an estimated total of $70-90 million expected for the year, including a new manufacturing plant in Mainland China [125]. - The company held $381.8 million in cash and cash equivalents as of June 30, 2022, including $257.2 million held outside the U.S. [130]. - The company plans to repatriate undistributed earnings from non-U.S. operations as necessary, considering cash needs for dividends, stock repurchases, and strategic transactions [131]. Debt and Financial Instruments - As of June 30, 2022, the company had $30.0 million in outstanding borrowings under its revolving credit facility and $400.0 million on its term loan facility [126]. - The company had a consolidated leverage ratio not exceeding 2.25 to 1.00 and an interest coverage ratio of no less than 3.00 to 1.00 as of June 30, 2022 [126]. - The company entered into four interest rate swaps with a total notional principal amount of $200 million to hedge variable cash flows associated with its variable-rate debt [127]. - The company does not use derivative financial instruments for trading or speculative purposes and regularly monitors foreign currency risks [142]. Future Outlook - The EmpowerMe personalized beauty and wellness strategy is expected to launch the ageLOC LumiSpa iO in the second half of 2022 [90]. - The company anticipates that existing cash balances and future cash flows will be adequate to fund cash needs on both a short- and long-term basis [132].

Nu Skin Enterprises, Inc. (NYSE:NUS) Q1 2022 Earnings Conference Call May 4, 2022 4:30 PM ET Company Participants Scott Pond – Vice President-Investor Relations Ryan Napierski – President and Chief Executive Officer Connie Tang – Chief Global Growth Officer Mark Lawrence – Chief Financial Officer Conference Call Participants Steph Wissink – Jefferies Doug Lane – Lane Research Mark Astrachan – Stifel Linda Bolton Weiser – D.A. Davidson Operator Good day, and welcome to the First Quarter 2022 Nu Skin Enterpri ...