Why Business Transformation?

1. Why Business Transformation? • We are doing well, but we can do better • Alignment—internally and with sales leaders • Focus our resources on growth initiatives • Pharmanex — S2, g3, LifePak nano • Nu Skin — ProDerm • Big Planet — Photomax • Geographic Investments • Identify, create and sustain competitive advantages • Simplify 1

2. Business Transformation • Not all work is created equal • Left unabated, compliance and business essential work overwhelms the more important competitive and competitive enabling work Competitive process Competitive enabling process Business essential process Compliance Non-essential process 2

3. 4 Core Business Processes Strategy Development Product Development Demand Creation (Distributor Success) Supply Chain Competitive process Competitive enabling process Business essential process 3

4. Great Companies Choose One Core Process Where Competitive Work is Done • Product Development – Apple / Intel • Demand Creation – Nike / Starbucks • Supply Chain – WalMart • Strategy – Berkshire Hathaway 4

5. Strategy Development Strategy Making and Plan Process — two to five years • What is our strategic intent? • What will we do differently than all of our competitors? Strategic Intent Strategic Means Strategic Action Resource Allocation and Execution 5

6. Our Community - A better way of life Culture Opportunity Product Nu Skin Enterprises - Pillars of Success 6

7. Characteristics of our Opportunity Historically: • Leadership focused • Generous comp plan • Global/Seamless Today: • Distinct product brands, plus Q: What do we do differently (competitive advantage)? A: We will become best at developing successful leaders 7

8. Characteristics of our Products • Innovative • Premium Quality • Proprietary • Product Integrity — Substantiation • All of the good, none of the bad Q: What do we do differently (competitive advantage)? A: “The Measurable Difference” A: We apply a higher level of technology to each of our product categories: Scanner, ProDerm, Photomax 8

9. Characteristics of our Culture • Force for Good • Integrity • Fun • Encourage our partners to make a difference in the world Q: What do we do differently (competitive advantage)? A:Nourish the Children: Force for good baked into the business model 9

10. Distributor Success Process • Our most important asset is our distributor partners; therefore, this is our most critical process and where our major competitive work takes place 10

11. Distributor Success Process Sponsoring Leadership Development Consumption& Duplication Successful Distributor (active, sponsoring, duplicating, advancing) Retained Distributor Consuming and Duplicating (sponsored 3 active distributors) Trained Distributor (with 100 pts) Engaged consumer (who places the 1st order) Consumption Active Consumer (ordering every 3 months) 11

12. Three Competitive Components of the Distributor Success Process • Sponsoring • Consumption/Retention • Leadership Development 12

13. Sponsoring • Ensure opportunity creates demand • Focus on easy, frictionless signup process • Ensure process to qualify for commissions is clear, simple and standardized • Create an amazing support experience for a new distributor 13

14. Consumption/Retention • Provide a consistent focus on retention of both consumers and distributors • Provide partners with tools necessary to immediately begin the business duplication process • Create incredible first experiences (first check, first order, etc.) 14

15. Leadership Development • Focus our time and resources on the most valuable stage of your business; leadership advancement, leadership skills and recognition 15

16. DSP Strategies Core Strategies Key Tactics/Actions Eliminate sign-up barriers • Execute: simple story effectively communicated • Implement frictionless sign-up process Distributor Success Strategies • Develop and implement DRM programs • Align core global programs (ARO, Scanner etc) • Implement aligned technology strategy Strengthen consumption and duplication processes • Introduce success roadmap • Develop and execute leadership programs • Make culture pervasive throughout organization • Implement global recognition standards Improve leadership effectiveness 16

17. Overall Conclusion While each NSE market may require localized business strategies, there are core overarching Distributor Success Processes that apply to all markets… Identifying and implementing these core and enabling processes will result in growth and savings 17

18. Product Development (PD) Core Processunique distinctive brands Ideation Formulate & Testing Development Manufacturing Launch Product Management Design/ Product Story Viable innovative product idea Preliminary formula Business case product concept Final product Specifications – Product integrity and quality Brand growth & Improved profits Product inventory Incremental revenue • Developing innovative products to drive the • business opportunity • Number of scientists (including external thought • leaders) in Multi Disciplinary teams to discover • products with a measurable difference 18

19. CEO Truman Hunt Corporate Development Jack Peterson Distributor Success Dan Chard Product Development Joe Chang Finance Ritch Wood Human Resources Claire Averett Legal Matt Dorny Geographic Mgmt. Sponsoring/Reten/ Leadership Dev Distributor Training Compensation Plan Product Mktg/Sales Recognition Events Creative Services New Markets Growth Opps Sponsoring Acquisitions Big Planet Nu Skin PD Pharmanex PD Product Mgmt Supply Chain Finance IT Administration Business Trans Employee Events FFG Culture Gov’t Relations Distrib Discipline Distrib. Policies & Procedures 19

20. Distributor Success Dan Chard Americas and Europe Scott Schwerdt North Asia Robert Conlee Asia Pacific Global Coordination Japan Korea Greater China Southeast Asia Australia/NZ Distributor Events Recognition Commissions Creative Services New Market Development North America South America Western Europe Eastern Europe 20

21. What’s Next? $2.5 billion in annual revenue AND $1 billion of annual commissions! 21