Nu Skin Enterprises, Inc. · NYSE:NUS
Nu Skin Enterprises — Investor Presentation (November 2011)
92 slides from Nu Skin Enterprises's investor presentation, November 2011
Slide 1: Business Presentation
business presentation
Slide 2: Slide 2
Slide 3: Business Presentation
business presentation
Slide 4: Welcome
welcome • Thank you for your time today. slide 1 • I would like to share with you some information about a business I am building that is enabling me to achieve many of my personal and professional goals. And I invite you consider this business as you plan your future. notes
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Slide 6: Our Goal
our goal • My desire is to “enable you and your family to enjoy a rich, fulfilling, secure life—a life slide 2 characterized by what I would call “true prosperity.” notes
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Slide 8: Anchor Points for Prosperity
ANCHOR POINTS FOR PROSPERity • I want to help you: slide 3 – Create the quality of life you desire for yourself and your loved ones – Work toward long-term economic security; and – Live a life of influence by making a difference in people’s lives and by lifting up those in need notes
Slide 9: We Enable People To
WE ENABLE PEOPLE TO * Create a desired QUALITY OF LIFE * Achieve long-term ECONOMIC SECURITY * Live a LIFE OF INFLUENCE
Slide 10: Economic Realities
ECONOMIC REALITIES • You don’t have to spend very much time reading the news to realize that we’re all living slide 4 through turbulent times in the global economy. • Economic reality has created a sobering problem for people around the globe. • This challenge exists for just about everyone—even for
Slide 11: Economic Realities
ECONOMIC REALITIES Advertisers together face : Lights go out across Britain Ss, pull lo the feCESSION as recession hits home Agencies are starting to recognise that partnership marketing is on¢ answer to the credit crunch Matt Wilks investigates 11 money-making ideas for 2011 What could trip up the
Slide 12: Let's Do the Math (Scenario #1)
LET’S DO THE MATH (SCENARIO #1) • Take a look at a hypothetical financial profile for someone who is 50 years of age. slide 5 • Let’s say that this person would like to target $5,000 in monthly retirement income. • And let’s assume some of the other aspects of this situation: – They have about $150,
Slide 13: Let's Do the Math
LET’S DO THE MATH Targeted MONTHLY INCOME during retirement $5,000 My current ASSETS (not including home) $150,000 YEARS you want to WORK 15 Estimated LIFESPAN after retirement 20 INFLATION % 3% After Tax RETURN ON INVESTMENT 5% LEGACY TARGET (amount left to children) $150,000 MONTHLY SAVINGS necess
Slide 14: Let's Do the Math (Scenario #2)
LET’S DO THE MATH (SCENARIO #2) • Let’s change a couple of these assumptions. slide 6 • Assume the target for retirement income is $10,000 a month. • And although we have absolutely no control over the inflation rate, let’s move this factor to just 4%. • Let’s also be more realistic and say that aft
Slide 15: Let's Do the Math
LET’S DO THE MATH My current ASSETS (not including home) YEARS you want to WORK Estimated LIFESPAN after retirement After Tax RETURN ON INVESTMENT LEGACY TARGET (amount left to children) MONTHLY SAVINGS necessary to achieve target $10,000 $150,000 15 20 4% 2% $150,000
Slide 16: Economic Reality
ECONOMIC REALITY • Here is the harsh reality the world faces: slide 7 IT IS very difficult TO SAVE OUR WAY TO FINANCIAL PROSPERITY. • This is particularly evident when you consider that we have absolutely no control over inflation, return on investment or the tax rate. • While it’s important that we
Slide 17: It is very difficult to save our way to financial prosperity
It is very DIFFICULT TO SAVE our way to financial prosperity!
Slide 18: Ostrich with Head in Sand
OSTRICH WITH HEAD IN SAND • Most people don’t even realize their plight. And those who do find this slide 8 reality rather stressful. • In response to stress, folklore says that ostriches stick their heads in the sand. notes
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Slide 20: Man with Head in the Sand
MAN WITH HEAD IN THE SAND • We tend to follow the example of the ostrich. slide 9 • That’s why some have even labeled us, the “Ostrich Generation.” • Because it’s too stressful to face the economic realities of life, we stick our heads in the sand and hope that when we surface the stress will have m
Slide 21: The Ostrich Generation
Slide 22: Prosperity Calculator
PROSPERITY CALCULATOR • So, instead of hiding our heads in the sand, let’s face reality. slide 10 • I’d like to share an app with you that allows you to go through your own reality check to see how you’re doing. • By inputting just a few pieces of personal data, you can quickly evaluate your current
Slide 23: $45,000
$45,000
Slide 24: Value of an Income Producing Business
VALUE OF AN INCOME PRODUCING BUSINEsS • Take a look at another scenario: slide 11 • If your targeted income is $5,000/month, and you are able to achieve a 1.5% return on investment after tax and inflation, how much would need to have saved? • You need to save nearly $5 million! How realistic is that
Slide 25: Value of an Income Producing Business
VALUE OF AN INCOME PRODUCING BUSINESS To generate $5,000 of monthly income At 1.25% return REQUIRES $4.8 MILLION OF SAVINGS!
Slide 26: Asset Calculator
ASSET CALCULATOR • Here is another app that quickly demonstrates the value of a business that could slide 12 generate a target level of income for you. • These days, the value of a business that generates even $5,000 a month is enormous. notes
Slide 27: Earnings Disclaimer
EARNINGS DISCLAIMER: Not all distributors make money. No one can be guaranteed success as a distributor. For information /erage commissions paid to US distributors and the percentage of distributors earning a commission check ple se click here:
Slide 28: Achieving Prosperity
ACHIEVING PROSPERITY • Here is the point: slide 13 A proven way to achieve prosperity is to build a business asset that will provide you with long-term cash flow. notes
Slide 29: A proven way to achieve prosperity
A proven way to ACHIEVE PROSPERITY Is to BUILD A . BUSINESS ASSET that will provide CASH FLOW for you and your heirs on a LONG-TERM BASIS
Slide 30: Traditional Business Models
TRADITIONAL BUSINESS MODELS • Let’s take a closer look at what it takes to start and maintain a traditional business slide 14 • There are certain risks involved: – It usually takes a significant level of capital—often you put at risk everything you own. – business owner is responsible for all of asp
Slide 31: Traditional Business Models
TRADITIONAL BUSINESS MODELS Nice A TNC \ Cc REWARD GAP * May often yield a low to moderate level of financial return REWARD
Slide 32: The Solution: The Social Business
THE SOLUTION. . . THE SOCIAL BUSINESS • Over the past few decades, a new business model is emerging. slide 15 • The social business model leverages today’s technologies and demographic trends to create real value for those looking to create long-term prosperity. • With a social business model, a cor
Slide 33: The Solution: A new business paradigm
Pr: SOLUTION... A new business paradigm —— et AS SOCIAL BUSINESS MODEL _
Slide 34: The Social Business Model
THE SOCIAL BUSINESS MODEL • When it comes to risk, the social business model may require a more modest level of slide 16 financial resources. • But even with much less financial risk, there is substantial income potential. • And best of all, you have the peace of mind of knowing that you own a busin
Slide 35: Positive Reward Gap
POSITIVE REWARD GAP More modest expenditure of resources RISK Substantial income potential Home-based business Global opportunity Lifestyle freedom PEACE OF MIND REWARD
Slide 36: The Ultimate Social Business in the Media
THE ULTIMATE SOCIAL BUSINESS IN THE MEDIa • This has led many in the media to call what we do “The Ultimate Social Business Model.” slide 17 notes
Slide 37: Highlighted in Wall Street Journal insert
Tae Highlighted in a special insert of the WALL STREET JOURNAL June 24, 2011 99cm. evans oc OCIAE BUSINESS MODE
Slide 38: The Ultimate Social Business Model
THE ULTIMATE SOCIAL BUSINESS MODEL • The social business model is generating tremendous success around the world. slide 18 – 88 million people around the globe are involved. – Every day about 50,000 people start a new social business – From 2009 to 2010, social enterprises grew by 12% and the number
Slide 39: The Ultimate Social Business Model
THE ULTIMATE SOCIAL BUSINESS MODEL * 88 million people around the world are involved in social enterprise, generating more than $132 billion in sales * Every day, over 50,000 people begin a social business globally * From 2009 to 2010, revenue grew 12% and number of people involved grew 19% _— “Base
Slide 40: Nu Skin Logo
NU SKIN LOGO • And within this business model, there is one company that stands out and has become slide 19 the cream of the crop. . . NU SKIN ENTERPRISES. notes (OPPORTUNITY TO SHOW VIDEO NU SKIN OVER)
Slide 41: Nu Skin. The Difference. Demonstrated.
all NU SKIN. THE DIFFERENCE. DEMONSTRATED”
Slide 42: Your Billion-Dollar Start Up
YOUR BILLION-DOLLAR START UP • Nu Skin is a company with a 27 year track record of success. slide 20 • In the worst of all recent economic environments, Nu Skin has posted record revenue levels for the past several years. • Nu Skin enables you to successfully tap into more than 50 international mark
Slide 43: Nu Skin: Your Billion-Dollar Startup
NU SKIN: YOUR BILLION- DOLLAR STARTUP * 27 years of success ¢ Global opportunity ¢ Record revenue = $1.7 Billion (2011) « NYSE: NUS * Forbes.com’s 100 most trustworthy companies
Slide 44: $1.25 Billion Invested
$1.25 BILLION INVESTED • With Nu Skin, you have an enterprise that is committed to investing in your future. slide 21 • In fact, the day you start your Nu Skin business, you become the CEO of your own business that is associated with a company that has already invested over $1.25 billion of capital
Slide 45: Over $1.25 Billion Invested to Assist Your Business
Slide 46: The Stage Is Set
THE STAGE IS SET • The investment Nu Skin is making is targeted at one of the most vibrant consumer slide 22 product opportunity ever. . . anti-aging. • Anti-aging is one the biggest megatrends ever—growing at an explosive pace and creating what is projected to be a trillion-dollar global market by
Slide 47: The Stage Is Set
THE STAGE IS SET = — 4 _ — r 5 ~~ = — — a BY 2029, U 3 r iFagi g market is projected a ~togrow 4X by 2025 to reach: = $1 TRILLION
Slide 48: The Global Movement Market Facts
THE GLOBAL MOVEMENT MARKET FACTS • The anti-aging phenomenon is not unique to one country. The market for anti-aging slide 23 products is exploding around the world. • By 2015 alone, the anti-aging industry will grow by: – 76% in the United States – 73% in Europe – 72% in Japan – 82% in the Asia/Pac
Slide 49: By 2015 alone, the anti-aging industry will grow
By 2015 alone, the anti-aging industry will grow by: o in the U.S. in Europe in Japan in Asia/Pacific a
Slide 50: The Fountain of Youth
THE FOUNTAIN OF YOUTH • But because it is such a large and rapidly growing market, there is a lot of slide 24 attention focused on it. • Man has spent thousands of years and billions of dollars searching for “The Fountain of Youth.” notes
Slide 51: Searching for the Fountain of Youth
People have spent THOUSANDS of years and BILLIONS of dollars searching: for THE FOUNTAIN OF YOUTH
Slide 52: Consumer Confusion
CONSUMER CONFUSIOn • The result is consumer confusion. slide 25 • With a mountain of products to choose from and so much noise in the market place, people face a real dilemma. • Where do they turn for products that deliver real anti-aging benefits? notes
Slide 53: Creating Consumer Confusion
CREATING CONSUMER CONFUSION About where to turn for real anti-aging solutions
Slide 54: The Answer Is Inside of Us
THE ANSWER IS INSIDE OF US • Nu Skin scientists have discovered that the fountain of youth is not in some far-off slide 26 place, it’s actually been inside of us the entire time—in our GENES, influencing the way we age in every way. notes
Slide 55: The answer has been inside us the entire time
Turns out, the answer has been _-INSIDE US _the entire time 7 1 t IS 10's Si a ety tas oe an re
Slide 56: ageLOC Breakthrough (Overview)
AGELOC BREAKTHROUGH (OVERVIEW) • Nu Skin’s approach is to attack aging at the source—at the genetic level. slide 27 • This breakthrough, genetic approach leverages 30 years of proprietary research. • And features exclusive and patented science. • This gives Nu Skin exclusive scientific understanding
Slide 57: ageLOC
AgGeLoc A SUPER-CLASS of ANTI-AGING PRODUCTS 30 YEARS of PROPRIETARY RESEARCH BREAKTHROUGH GENETIC APPROACH to ANTI-AGING SCIENCE
Slide 58: Live Younger Longer
LIVE YOUNGER LONGER • And what does this mean for us? slide 28 • The search is over. With ageLOC, we now have the key to living younger, longer. notes
Slide 59: ageLOC: your key to living younger, longer
Slide 60: Look Younger and Feel Young
LOOK YOUNGER AND FEEL YOUNG • If you truly want to fight the battle against aging—it must be fought on two fronts, slide 29 on the inside and the outside. • Nu Skin is one of the few companies that has the scientific know-how to develop a full line of nutrition and skin care products that use geneti
Slide 61: Look Younger, Feel Younger
Slide 62: Motley Fool
MOTLEY FOOl • People are starting to take notice of Nu Skin’s ageLOC approach to anti-aging slide 30 • In fact, one investor used this phrase to describe Nu Skin, saying that “Nu Skin has found a successful niche and is coming out with new products each year. This is the ’Apple’ of the anti-aging co
Slide 63: Motley Fool quote: the Apple of anti-aging
“Nu Skin has found a successful niche and is coming out with new products each year. This is the ‘Apple’ of the anti-aging companies.” The Motley Fool 2 Dividends to Keep, 1 to Leave Behind July 26, 2011, MotleyFool.com
Slide 64: Apple Case Study
APPLE CASE STUDY • Apple is one of the world’s most powerful and beloved brands. slide 31 • Why? Because they do something better than any other company. They INNOVATE. • Apple has changed the technology landscape by creating one revolutionary product after another. This is innovation done right. no
Slide 65: Case Study: Innovation Done Right
CASE STUDY: INNOVATION F DONE RIGHT ~~;
Slide 66: The Nu Skin Way
THE NU SKIN WAY • Nu Skin does the same thing. slide 32 • Nu Skin’s success is built on continually providing life-changing products. • Nu Skin is not a ‘me too’ company. Long-term success cannot be achieved with “me too” products. notes
Slide 67: The Nu Skin Way
Slide 68: The ageLOC Product Family
THE AGELOC PRODUCT FAMILY • Real scientific innovation goes into every ageLOC product. slide 33 • The two newest members of the family are: R2 and the Body Galvanic Spa. • R2 renews cellular energy during the day while detoxifying and purifying cells at night. The Body Galvanic Spa firms and tighten
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Slide 70: Jobs and Innovator's DNA
JOBS AND INNOVATOR’S DNA • The late Steve Jobs ensured that the innovator’s DNA was embedded in Apple. slide 34 • He was truly one of a kind. notes
Slide 71: Innovation distinguishes between a leader and a follower
“INNOVATION distinguishes between a leader and a follower.” Steve Jobs Founder, Apple Inc.
Slide 72: Blake Roney and Innovator's DNA
BLAKE RONEY AND INNOVATOR’S DNA • But at Nu Skin we also have a founder who is blessed with the innovator’s DNA. slide 35 • Nu Skin’s goal has always been to be 10 steps ahead of the competition. This commitment enables Nu Skin to continually innovate to renew our opportunity. notes
Slide 73: Our founding was based on innovation
“Our founding was based on INNOVATION. We've always wanted to be 10 steps ahead of everyone else.” Blake M. Roney Founder, Nu Skin Enterprises
Slide 74: Innovation Center
INNOVATION CENTER • This commitment to ongoing innovation is evident in Nu Skin’s $85 million investment slide 36 in its new Innovation Center at its U.S. corporate headquarters. • The new the state-of-the-art facility will deepen the company’s innovative culture, housing its world-class scientists
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Slide 76: Greater China Headquarters
GREATER CHINA HEADQUARTers • The company has also made many investments in infrastructure in offices around the slide 37 world and recently announced a new headquarters, manufacturing and distribution facility outside of Shanghai, China to support this rapidly growing market. notes
Slide 77: Greater China Headquarters
GREATER CHINA so es So HEADQUARTERS ~~ ¥ Ib : > ¥ a . . ams ey REE a "ta " . ——_—. re _~ tte. : 4 ¥ ete gee? . . \ . yi ann et U > _* Ca
Slide 78: Nu Skin 2.0
NU SKIN 2.0 • In 2008, the company announced a bold vision for the future, calling it Nu Skin 2.0. slide 38 • The Nu Skin vision is to become the world’s leading direct selling company by generating more income for its distributors than any other company. • This means that the company is focused on
Slide 79: $5 Billion Revenue, $2 Billion Commissions
$5 BILLION REVENUE $2 BILLION COMMISSIONS NU SKIN 2)
Slide 80: Distributor Commissions
DISTRIBUTOR COMMISSIONS • In the past two years, Nu Skin has made great progress towards realizing this vision. slide 39 • In fact, we are ahead of schedule. • In 2011 Nu Skin will pay out about $730 million in commissions. notes
Slide 81: Record Distributor Commissions Paid in 2011
MILLION RECORD DISTRIBUTOR COMMISSIONS PAID IN 2011
Slide 82: $8 Billion in Commissions
$8 BILLION IN COMMISSIONS • This year, the company will also surpass $8 billion in the total commissions slide 40 it has paid out to its distributors. notes
Slide 83: More than $8 Billion in Distributor Commissions
More than a BILLION in DISTRIBUTOR COMMISSIONS
Slide 84: Million-Dollar Lifetime Earner
MILLION-DOLLAR LIFETIME EARNER • Going even further, every 5 days Nu Skin is minting a new million-dollar lifetime earner. slide 41 notes (OPTIONAL: COULD HIGHLIGHT A STORY OF A LOCAL MDC HERE)
Slide 85: A new million-dollar lifetime earner every day
go iN a A NEW MILLION-DOLLAR LIFETIME comer WE | EVERY 5 DAYS Not all distributors make money. No one can be We tate Lacs bea 2 distributor, For information on the average comenissions paid to US Gtributors and the percentage of distributors earning 3 commession check please go to bia Liars cunkio c
Slide 86: Time to a Billion in Commissions
TIME TO A BILLION IN COMMISSIONS • The company took 13 years to reach $1 billion in total commissions paid. slide 42 • Today Nu Skin pays another billion of commissions every 16 months. • And by the time the company hits its Nu Skin 2.0 target, it will be paying out $1 billion in commissions every 6
Slide 87: Time to $1 Billion in Commissions
AT NU SKIN 2.0 6 MONTHS TIME TO $1 BILLION IN COMMISSIONS ONTHS FIRST $1 BILLION PAID 13 YEARS
Slide 88: Nu Skin Summary
NU SKIN SUMMARY • All of the factors that line up to create very exciting times for Nu Skin Enterprises. slide 43 – burgeoning anti-aging market and next-generation social business model, A demonstrate that business trends are definitely in our favor. – We have more than a billion dollars invested t
Slide 89: A proven wealth engine
* A proven WEALTH EN GIN E Business trends creating a GLOBAL MOVEMENT Over a BILLION-DOLLARS invested in YOUR BUSINESS Exclusive products to LIVE YOUNGER, LONGER INNOVATOR’S DNA — —
Slide 90: Timing Question
TIMING QUESTION • In the battle to create a life of true prosperity, slide 44 • The time is always right at Nu Skin Enterprises. • The real question is: when will the timing be right for you? notes
Slide 91: The timing is always right for Nu Skin
THE TIMING IS ALWAYS RIGHT FOR NU SKIN WHEN WILL THE TIMING BE RIGHT FOR YOU?
Slide 92: © 2011 Nu Skin Enterprises
© 2011 Nu Skin Enterprises 01007622
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