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Page 1: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010
Page 2: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

A ‘NU GENERATION’

OF SUCCESS

BLAKE RONEYCHAIRMAN,

BOARD OF DIRECTORS

2

Page 3: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

THE REAL PINNACLE OF

SUCCESS IS THE ABILITY TO

IMPROVE PEOPLE’S LIVES.

3

Page 4: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

DISASTER IMPACT BY REVENUE

DISTRIBUTION

• High Impacted area – Tohoku East

(red):

– 4% of company revenue

• Moderate Impact area – Tohoku

West (orange):

– 5% of company revenue

• Low Impact area (yellow):

– 33% of company revenue

44

Page 5: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

• 520 Executives in Tohoku

• 20,000 distributors in Tohoku

• Deceased: 7 Distributors, 1 Preferred

Customer

• 47 Executives’ homes are

uninhabitable

NU SKIN JAPAN IMPACT SUMMARY

55

Page 6: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

FUKUSHIMA VISIT

6

Page 7: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

JAPAN VISIT VIDEO

7

Page 8: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

FUKUSHIMA VISIT TOHOKU TEAM ELITE LEADERS

88

Page 9: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

FUKISHIMA HEROES

5 of the Fukishima plant workers are Nu Skin distributors

99

Page 10: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

10

松本真様

Page 11: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

100,000 SMILES/DAY 500,000 SMILES/DAY

11

We add a smile for each meal donated through the Nourish the Children® VitaMeal® program (30 meals

per bag) and one smile for each dollar donated through the Nu Skin Force for Good Foundation.®

Page 12: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

THE NU GENERATION:

NU SKIN 2.0

TRUMAN HUNTPRESIDENT, CHIEF

EXECUTIVE OFFICER

12

Page 13: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

13

Page 14: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

14

Page 15: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

15

Page 16: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

16

Page 17: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

17

Page 18: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

PURSUIT OF

OPPORTUNITYAND LIFESTYLE

FREEDOM18

Page 19: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

Our Mission is to be a

force for good throughout the

world by empowering people to

improve lives with rewarding

business opportunities,

innovative products, and an

enriching, uplifting culture.

19

Page 20: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

Our Vision is to become the world’s

leading direct selling company

by generating more income for

distributors than any other company.

20

Page 21: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

OUR VALUES

We are ETHICAL and HONEST.

We are INNOVATIVE.

We are OPTIMISTIC.

We are COMPASSIONATE.

We are a FORCE FOR GOOD.

21

Page 22: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

GROWTH STRATEGY

At a time when increasing numbers

are eagerly seeking income, our

strategy is to provide a

• Focused

• Easily duplicated

• Innovative and compelling

ANTI-AGING BUSINESS

OPPORTUNITY22

Page 23: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

2323

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COMMISSIONS

$2 BILLION$5 BILLIONREVENUE

2424

OUR 2.0 GOAL

Page 25: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

NU SKIN 1.0 NU SKIN 2.0

• $1.33 billion in annual revenue

• $556 million in Commissions

• 656 Million Dollar Circle*

Members

• More than 100,000 children

smiling every day**

• $5 billion in annual revenue

• $2 billion in Commissions

• 2,500 Million Dollar Circle*

Members

• More than 500,000 children

smiling every day**

2525

* Million Dollar Circle Member refers to those independent distributors who are members of the Million Dollar Circle having earned over one million dollars in commissions over the life of

their involvement with Nu Skin. There are, however, no guarantees of success. The average commission paid to U.S. Active Distributors each month in 2009 was $125.71, or $1,508.53

on an annualized basis. In 2009, the average monthly commission paid to U.S. Active Distributors who earned a commission check1 was $843.46, or $10,121.52 on an annualized

basis. For a complete summary of distributor earnings/ bonuses paid to distributors at all levels within the Sales Compensation Plan, please go to www.nuskin.com.

** We add a smile for each meal donated through the Nourish the Children® VitaMeal® program (30 meals per bag) and one smile for each dollar donated through the Nu Skin Force for

Good Foundation.®

Page 26: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

$1.54 Billion

RECORD REVENUE YEAR

( $210 Million in revenue)26

Page 27: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

$986

$1,138$1,181

$1,115$1,158

$1,248

$1,331

$1,537

$500

$700

$900

$1,100

$1,300

$1,500

2003 2004 2005 2006 2007 2008 2009 2010

2003 – 2010 REVENUEM

illio

ns U

SD

27

Page 28: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

2003 – 2010 REVENUE (EX-JAPAN)

$427

$559$620 $642

$715

$804$869

$1,066

$0

$200

$400

$600

$800

$1,000

$1,200

2003 2004 2005 2006 2007 2008 2009 2010

Mil

lio

ns U

SD

28

Page 29: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

$646MILLION

RECORD DISTRIBUTOR COMMISSIONS PAID IN 2010

( $100 Million)

29

Page 30: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

2010 REGIONAL REVENUE

REGIONCONSTANT

CURRENCY GROWTH

NORTH ASIA +5.1%

GREATER CHINA +24.8%

AMERICAS 0%

S. ASIA / PACIFIC +39.0%

EUROPE +16.3%

OVERALL +10.5%

30

Page 31: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

JAPANEXECUTIVE COUNT (JUN-DEC 2010)

REVENUE TREND IN JAPAN (YOY)

• Stabilizing revenue

and executive

growth trends

• Disaster impact

~$25 Million in 2010

8800

9000

9200

9400

9600

9800

10000

-12.3%

-5.6%-4.4%

-3.0%

-8.0%

-15.0%

-10.0%

-5.0%

0.0%

2008 2009 2010 Pre Quake '11 Post Quake '11

31

Page 32: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

Q1 2003 – Q1 2011 LOCAL CURRENCY REVENUE

ACTIVE/EXECUTIVE DISTRIBUTOR GROWTH

• Nov 2010 – became 2nd

largest market

• Growth despite direct

selling decline

• Consistently

demonstrates leadership

in best sales practices

SOUTH KOREA

0

20000

40000

60000

80000

100000

120000

140000

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Executives

32

Page 33: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

GREATER CHINA

• High growth potential in

Mainland China

• 47% local currency growth

in Mainland China

• Direct selling licenses in 5

new areas

Revenue Trend in Mainland China (YOY)

2003 - 2010 USD REVENUE TREND

-6.0%

5.7%

18.2%11.2%

23.7%17.9%

29.5%

37.0%

47.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

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

33

Page 34: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

AMERICAS

84%

9%7%

U.S.

Canada

Latin America

2010

AMERICAS

SALES

• Lapping difficult product launches in 2010

• Anticipate strong momentum building in Q3 and Q4 surrounding convention

Q1 2003 – Q1 2011 USD REVENUE TREND

34

Page 35: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

2003 - 2010 USD REVENUE TREND

• Fastest growing region

over the last 7 years

• 12% of global revenue

• 5 of the top 10 direct

selling markets are in

Europe

EMEA

34%

21%

28%

17%West Europe

East Europe

North Europe

Russia, IS, SA

2010

EMEA

SALES

35

Page 36: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

SOUTH ASIA / PACIFIC• 50% growth in 2010

• Strong growth in all

markets

• Significant growth in both

ageLOC and TRA

4

2003 - 2010 USD REVENUE TREND

13%

25%

32%

7%

15%

8% Singapore

Malaysia

Thailand

Philippines

Australia/New Zealand

Indonesia

2010

S. ASIA/

PACIFIC

SALES

36

Page 37: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

2010 AWARDS

37

Page 38: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

approximately

$600 MILLIONin ageLOC SALES (last 6 quarters)

38

Page 39: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

RECORD LEVEL OF EXECUTIVES &

ACTIVE DISTRIBUTORS

35,700EXECUTIVES

800,000ACTIVES

39

Page 40: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

10 M 14 M 40 M

65 M

100 M

143 M

170 M

210 M

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011(est.)

220 MILLION MEALS (TO DATE)~250 M

40

Page 41: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

HOW DO WE SUSTAIN

GROWTH GLOBALLY?

41

Page 42: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

NU SKIN 2.0 REVENUE BENCHMARKS

$2.5 B

$5.0 B

42

Page 43: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

REGION/MARKETLAST 5 YEARS

(CAGR)

2.0 GROWTH

TARGET

JAPAN -8% 1%

KOREA 23% 15%

GREATER CHINA 10% 15%

AMERICAS 2.5% 8.5%

EMEA 16% 18%

S. ASIA/PACIFIC 23% 20%

43

Page 44: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

ECONOMIC ENGINE STRATEGY

Core business drivers (3 R’s)

• Recruiting

• Retention

• Rate of consumption/retailing

44

Page 45: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

RECRUITING RETENTIONRATE OF

CONSUMPTION

ACCELERATED REVENUE GROWTH

Active Distributors Rate of Consumption

HOW WE MEASURE SUCCESS – 3 R’S

45

Page 46: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

GLOBAL BUSINESS PROFILE

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

YOY % Change in:

Consumption

Actives

Sales

46

Page 47: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

SOUTHEAST ASIA BUSINESS PROFILE

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11

YOY % Change in:

Consumption

Actives

Sales

47

Page 48: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

WE HAVE THE

AMMUNITION,AND WE CAN USE IT TO

SUSTAIN GROWTH AT

AN EVEN FASTER PACE.

4848

Page 49: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

A NU GENERATION

OF OPPORTUNITY

DAN CHARDPRESIDENT, GLOBAL SALES

AND OPERATIONS

50

Page 50: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

“The ultimate strength and vitality of this company lies in the heart of its people –particularly its leaders.”

— Blake Roney

51

Page 51: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

LEADERSHIP AND BUSINESS

OPPORTUNITY DRIVING

RECORD GROWTH

52

Page 52: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

GLOBAL MARKET RESEARCH

53

• 4,000+ leaders at all levels

participated in the research

• One basic question: What key

factors contribute to make a

fast-growing group?

Page 53: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

Keys factors to fastest growing groups:

1. Focus on BUSINESS and OPPORTUNITY

2. MESSAGE and STRATEGY ALIGNED with corporate and

across groups

3. Network supported with WELL-ESTABLISHED TRAINING

STRUCTURE for downline at critical leadership levels

RESEARCH FINDINGS:

54

Page 54: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

1. FOCUS ON BUSINESS AND OPPORTUNITY

• Distributor network is managed like a well-run

business

• Opportunity story remains the same…

new products are used to support the

opportunity, not change the story

55

Page 55: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Mar

-04

Jun

-04

Sep

-04

Dec

-04

Mar

-05

Jun

-05

Sep

-05

Dec

-05

Mar

-06

Jun

-06

Sep

-06

Dec

-06

Mar

-07

Jun

-07

Sep

-07

Dec

-07

Mar

-08

Jun

-08

Sep

-08

Dec

-08

Mar

-09

Jun

-09

Sep

-09

Dec

-09

Mar

-10

Jun

-10

Sep

-10

Total Sales Monthly Actives

SUSTAINING GROWTHG

row

th g3

Estera

TRA

ageLOC

Transformation

Business discipline and opportunity renewal pattern results in

consistent growth

Page 56: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

2. MESSAGE & STRATEGY ALIGNED WITH

CORPORATE & ACROSS GROUPS

Growth accelerates when we

speak with one voice:

• ALIGNED message creates focus

and unity

57

Page 57: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

THE PERFECT PARTNERSHIP

• Use the products

• Recruit others to use products

• Train and develop leaders

• Retain

• Lead

• Live the Nu Skin culture

• Develop quality products

• Provide accurate business

information and tools

• Pay on time and deliver

products on time

• Recognize success

• Live the Nu Skin culture

Company’s Responsibility Distributor’s Responsibility

Page 58: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

DIFFERENT MARKETS…DIFFERENT LINES…DIFFERENT NATIONALITIES

ONE COMPANY…ONE NU SKIN FAMILY…ONE VOICE

Yoo Sun In

South Korea

14 year TE

Hashikawa Tomohiko

Japan

11 year TE

Wang, K’uan Ming

Taiwan

17 year TE

Rayne Ho

Malaysia

10 year TE

To qualify for any pin level you must meet all requirements of the Sales Compensation Plan, including retail sales. There are no bonuses paid for recruiting. All bonuses and

commissions are paid only when qualifying products are sold. There are no guarantees of financial success. For a complete summary of the Sales Compensation Plan, please

contact the company at www.nuskin.com.‖59

Page 59: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

• Upline become mentors to developing leaders

• Formal training support structure teaches developing

leaders how to:

• Build and manage a network business

• Develop as a leader and mentor

• Present the products and create a loyal consumer base

3. WELL-ESTABLISHED TRAINING

STRUCTURE

60

Page 60: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

Key Progression Touch Points Training Focus

Distributor + Business Fundamentals

Sponsoring Distributor Business Building

Qexec + LOI and Qualification

New Exec Organization Building

Ruby + Leader Training

All Recognition Motivation

BUSINESS TRAININGCOMMON PRACTICES

61

Page 61: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

PRODUCT TRAININGCommon Practices

Program Schedule Qualification

Product Training

Skin Care Monthly Dist & above

Pharmanex Monthly Dist & above

Galvanic & ageLOC Monthly Dist & above

62

Page 62: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

COMPENSATION PLAN

• Our Vision

• Our Results

• Future Plans

63

The average commission paid to U.S. Active Distributors each month in 2009

was $125.71, or $1,508.53 on an annualized basis. In 2009, the average

monthly commission paid to U.S. Active Distributors who earned a commission

check was $843.46, or $10,121.52 on an annualized basis. On a monthly basis,

an average of 14.90% of U.S. Active Distributors earned a commission check.

To qualify for any pin level you must meet all requirements of the Sales

Compensation Plan, including retail sales. For additional information about

distributor earnings at all levels see www.nuskin.com.

Page 63: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

COMPENSATION PLAN

2011 will

create a new

commission

record:

$662M

64

$471 $472 $464$488

$519$547

$626

$662

$0

$100

$200

$300

$400

$500

$600

$700

2004 2005 2006 2007 2008 2009 2010 2011 est

Millio

ns

Total Commissions Payout

Record

commissions

paid

The average commission paid to U.S. Active

Distributors each month in 2009 was $125.71, or

$1,508.53 on an annualized basis. In 2009, the

average monthly commission paid to U.S. Active

Distributors who earned a commission check was

$843.46, or $10,121.52 on an annualized basis. On

a monthly basis, an average of 14.90% of U.S.

Active Distributors earned a commission check. To

qualify for any pin level you must meet all

requirements of the Sales Compensation Plan,

including retail sales. For additional information

about distributor earnings at all levels see

www.nuskin.com.

Page 64: A ‘NU GENERATION’ Elite... · TOHOKU TEAM ELITE LEADERS 8 8. ... 8% Singapore Malaysia Thailand Philippines Australia/New Zealand Indonesia 2010 S. ASIA/ PACIFIC SALES 36. 2010

COMPENSATION PLAN

THE WEALTH MAXIMIZERCompensating Leaders For Growth

Success Metrics:

• Percent of Executives at retention

level income

• Percent of Executives at 3,000 group

sales

65

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WEALTH MAXIMIZER RESUCOMPENSATION PLANTHE WEALTH MAXIMIZER

38.0%

47.0%

0%

10%

20%

30%

40%

50%

Before Wealth Maximizer

After Wealth Maximizer

Percent of New Executives Earning

Retention-Level Income

36.0%

45.0%

0%

10%

20%

30%

40%

50%

Before Wealth Maximizer

After Wealth Maximizer

Global Executives with 3,000+ GSV

66

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COMPENSATION PLAN - WHAT’S NEXT?

Inflation-protected commissions earnings

COMMISSIONS MAXIMIZER

67

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The Success Formula

68

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69

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SUCCESS FORMULA 2.0

• Improved edition of TSF DVD

– Reorganized under 5 key success

drivers

– Shorter and more focused

– Better visual effects

– Easier access

• Online TSF Micro-site

• Weekly and monthly emails

70

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71

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TSF

MOBILE

APPS

72

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SUCCESS FORMULA

• Stage 1: Introduce to top leaders

• Stage 2: Pre-launch for Ruby and above

• Stage 3: Main launch

• Stage 4: Post-launch follow up and training

TSF 2011 LAUNCH PLAN

73

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GOAL: HIGHEST SALES AND ATTENDANCE

IN OUR HISTORY!

GLOBAL CONVENTION

•Nu Generation OPPORTUNITY

•Nu Generation ageLOC PRODUCTS

•CELEBRATE Nu Generation leadership,

growth, success

•Set the VISION for accelerated growth

74

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SUSTAINING

GROWTH THROUGH

INNOVATION

76

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OVER-65 POPULATION WILL DOUBLE BY 2050

RAPID RISE IN CHRONOLOGICAL AGING

77 SOURCE: National Institutes of Aging & U.S. Census Bureau

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ANTI-AGINGWE BELIEVE THIS WILL BE THE NEXT TRILLION DOLLAR MARKET

$274.5 Billion in 2013

with double digit growth

rates for the next decade

2010 2011 2012 2013

SOURCE: BCC Research, May 200978

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1999180°System

Original LifePak 1992

1986Nutriol Hair Care

Nu Skin Founded 1984

―All of the good, none of the bad.‖

TRADITION OF INNOVATION

79

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2010ageLOC Vitality

2009ageLOC Transformation

2008Galvanic Spa Facial Gels with ageLOC

2006Galvanic Spa

2005LifePak Nano

TRADITION OF INNOVATION

2003BioPhotonic Scanner80

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ageLOC SCIENCE AND AGING

• Worldwide media attention on gene science

• Exclusive access to 30 years of anti-aging genetic research

• IDENTIFY, TARGET & RESET Youth Gene Clusters

81

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VIDEO

ageLOC MEDIA

HIGHLIGHTS

82

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$1 BILLION +

INVESTMENT IN

OPPORTUNITY

RENEWAL

83

NOW, HERE COMES MORE…

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NU SKIN ENTERPRISES

INNOVATION CENTER

84

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85

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GREATER CHINA HEADQUARTERS

& INNOVATION CENTER

87

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88

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―This book empowers consumers

everywhere to make a choice about

how they want to live…‖

Ken Dychtwald, Ph.D.President and CEO of Age Wave, Author

―The Aging Myth is written for anyone

who is concerned with healthy aging.‖

Makato Kuro-o, M.D., Ph.D.Associate professor of Pathology, University of Texas

Southwestern Medical Center

8989

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ageLOC: NU GENERATION

SCIENCE

JOE CHANG, PhDCHIEF SCIENTIFIC OFFICER

90

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FUTURE

FUTURE

AGING

Oxidative

Stress

Hormonal

Imbalance

Environment

& Lifestyle

Cellular

Function

LIVE

YOUNGER

LONGER

91

Body Weight

& Metabolism

2011

2011

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THE KEY TO YOUTH IS IN OUR YGCs

(YGCs)

9292

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WHAT IS ageLOC SCIENCE?

• Exclusive access to 30 years of

anti-aging genetic research

• Access enables unique discovery

of the role of YGCs in aging

• Youth Gene Clusters (YGCs)

– Identify several hundred genes associated

with aging

– Target these genes for developing products

– Reset gene expression of YGCs

93

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ORCHESTRATING AGING

VIA YOUTH GENE CLUSTERS

1 gene approachageLOC:

YGC approach

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FIGURE DESCRIPTION: This heatmap illustrates gene expression of three groups from

a pre-clinical test with one of the ageLOC Vitality ingredients: young (column 1), old

(column 2), and old with ageLOC science (column 3). Each row represents one of 52

genes comprising the mitochondrial Youth Gene Cluster (mtYGC). Columns 1 and 2

show that each of the 52 genes became more or less active during the aging process.

In column 3, the YGC activity pattern of the old with ageLOC science group has been

reset to a gene expression pattern similar to the young group in column 1.1

1 Transcriptional Biomarkers of Mitochondrial Aging and Modulation by Cordyceps Sinensis Cs-4.

Gordon Research Conference, Biology of Aging, Determinants of Health-Span: From Cells to

Humans, August 22-27, 2010. Les Diablerets Conference Center, Les Diablerets, Switzerland.

GENE

EXPRESSION IN

YOUNG TISSUE

GENE

EXPRESSION IN

OLD TISSUE

OLD GENE

EXPRESSION

AFTER AGELOC

ageLOC GENE TECHNOLOGY

Low

Expression

High

Expression

Gene Expression Scale

95

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EFFECT OF YGCs ON YOUTHFULNESSFROM GENES TO CELLS TO BODY

Body Level

Genetic Level

Cellular Level

Youthful feeling

Productivity of the cell

YGCs expressed at youthful levels

9696

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AGING’S ONE-TWO PUNCH

Gene expression

changes lead to:

1. Decline in cellular

energy production

2. Increase in cellular

waste and toxic

byproducts

9797

This graph is a hypothetical representation of cellular energy decline

and toxic buildup over time and DOES NOT represent any actual

experimental data.

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Cellular Energy

Declines

—Cellular Purification

Declines

Cellular Energy—

Declines —Cellular Purification

Declines

Cellular Energy—

Declines —Cellular Purification

Declines

Cellular Energy—

Declines —Cellular Purification

Declines

AGING

A DOWNWARD SPIRAL

9898

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ageLOC 2011: TAKING ageLOC INSIDE

Renew• Cellular

purification anddetoxification

Recharge

• Physical, mental

and sexual health

99

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RESTORING YOUTHFUL

CELLULAR FUNCTION

Cellular Energy Production

Cellular Purification+

Toxins & waste: a byproduct of normal

cellular metabolism

ENERGY

100100

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ageLOC BREAKTHROUGH: R2 SCIENCE

IDENTIFY

TARGET

RESET

Youth Gene Clusters related to:

• Cellular Energy Production

• Cellular Purification

101101

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N I G H TAGELOC R2

RECHARGE and Energize

while you’re awake

102

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RECOMMENDED USE

For people who want to feel young again.

ageLOC R2 Night

Take two (2) capsules in the evening

ageLOC R2 Day

Take six (6) capsules in the morning

103103

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LIFEPAK: THE PERFECT

FOUNDATION

• LifePak® nutrients help optimize gene

expression

• Nutrients critical for cellular purification

and cellular energy

• LifePak® antioxidants protects from

oxidative stress

104104

These statements have not been evaluated by the Food and Drug Administration.

These products are not intended to diagnose, treat, cure, or prevent any disease.

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THE OBSESSION

WITH LOOKING SLIM

• Almost half of all adults dissatisfied

with body shape and appearance*

• Cosmetic procedures costly,

invasive, and potentially risky

• Global phenomenon

105 *SOURCE: Datamonitor Consumer Survey, April/May 2009.

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ageLOC Body Trio:

Advanced Anti-Aging Body Enhancement System

• Shaping

• Smoothing

• Firming

ageLOC SOLUTION

For

106

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ageLOC GALVANIC BODY SPA

• New design for targeted body

treatments

• Optimized galvanic current

for better efficacy

• One step procedure

• Collateral benefit

– purification and invigoration

107

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Current

ageLOC

Galvanic

New

ageLOC Body

Galvanic

1. Design favors face and scalp

applications

1. Ergonomically designed for body

treatments

2. Small body conductor 2. Body conductor with larger surface

3. Settings designed for the face 3. Setting for the body

4. Constant galvanic current 4. Pulsing galvanic current

ageLOC BODY AND CURRENT ageLOC UNIT

108

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ageLOC BODY SHAPING GEL

ageLOC DERMATIC EFFECTS

• New ageLOC formulas

• Reset youthful appearance related to

slimming, smoothing, and firming your

body appearance:

• Body Shaping Gel: 2-3x per week

• Dermatic Effects: every day

109109

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CONVENTION 2011NU GENERATION OPPORTUNITY SUPPORTED

BY SCIENCE & PRODUCTS

110

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FUTURE

FUTURE

AGING

Oxidative

Stress

Hormonal

Imbalance

Environment

& Lifestyle

Cellular

Function

LIVE

YOUNGER

LONGER

111

Body Weight

& Metabolism

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NU GENERATION OF

LEADERSHIP

STEVE LUNDVICE CHAIR,

BOARD OF DIRECTORS

112

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LEADERSHIP

113

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114

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LEADERSHIP DEVELOPMENT

IS NU SKIN’S

HIDDEN VALUE STREAM.

115

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EXAMPLE

116

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117

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118

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119

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3

2

JAPAN RESCUE EFFORTS

Rescue & Recovery (March 16)• Company donation to 3 local governments: ¥100 million

Retain & Restore Executives (4 months)• Executive Commissions Subsidy Program: ¥80 million

Rebuild Tohoku Region (2-3 years)• Ongoing FFG projects: TBD in Q2.

• Targeted Assistance programs: i.e. home assistance program

1

120

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Objective: Motivate business activity and help those in need.• Company to allocate ¥50 per genLOC product unit sold to Project FFG

Higashi Nihon.

• Timeline: April 2011 – March 2012

FORCE FOR GOOD HIGASHI NIHON

PROJECT: genLOC PROFIT ALLOCATION

121121

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DISTRIBUTOR SUPPORT PLAN

1. Hold Pin Titles

2. Commission Subsidies

• March and April: 100%

• May: 75%

• June: 50%

• July: 25%

122

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VISION

123

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TRUMAN HUNTPRESIDENT, CHIEF

EXECUTIVE OFFICER

124

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125125

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SELL OUT GLOBAL CONVENTION

126126

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MAKE JOE’S BOOK

A NEW YORK TIMES

BEST SELLER

127127

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128128

,

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129