NSE China Launch

1
Are You Sitting Down?

• Our recently released Annual Report states that
  over the next 5 years, our company will double in
  size based on three primary factors
• International Expansion- Primarily from China
• Innovative compensation incentives
• Innovative products and programs

Be intrigued.
Maybe even be inspired.
The 2001 Annual report available through
www.nuskinenterprises.com
2
NSE CHINA EXPANSION
3
NuSkin Enterprises

• First 10 years reachedUS 1 Billion in annual
  sales
• DB 5A-1 Rating
• 18 Year Track Record
• 1st year sales in Japan 135m (highest in
  Japanese history)
• Successful in 34 markets!
• Over 100 million invested in State-of-the-Art
  technologies
• Divisionally Diversified
• Listed on NYSE (nus)

NSE World Headquarters USA www.nuskin.com
4
A Proven Track Record
in Asia Pacific
1991 - Hong Kong (50M) 1992 Taiwan
(150M) 1993 Japan (700M) 1996 Korea
(100M) 1997 Thailand (30M) 1997 Philippines
(30M) 2000 Singapore (90M) 2001 Malaysia
(NOV. 9th)
5
The Dragon Awakens
Unprecedented Events

• China enters WTODecember 11, 2001
• China Receives Permanent MFN Status December 13,
  2001

NuSkin Office in Shanghai
Anticipating these breakthroughs, NuSkin has
invested over USD 85 Million, and will continue
investing millions more.
6
Over the Wall

• China will be the worlds biggest market

China 1.3B
34NSE Counties 1.2B
2x
Chinas middle class alone, is twice the
population of ALL of the USA!
7
Expected Growth

• China will also be NuSkins single biggest market

NuSkin SalesChina
1 B
NuSkin pays out up to 51 of wholesale volume
in commissions
500 millionin annual commissionsup for grabs
100Mil
8
Five Year Snapshot
Right Now
34 countries1.2 billion people
Add China ALONE OVER 1 billion people
And soon after China

• 2 more countries 1 billion MORE people!

9
Largest Demographic Ever!
One third of Worlds population was born within
an 18 year period.

• The first time the entireBaby Boom generationis
  impacting a single market

HealthYouth, Beauty Longevity
10
The Next Trillion
11
Proven Product Strategy
NuSkin Personal Care Products
Powerful Products that are .
Consumable
Emotional
Visual
Your customers buy again and again, and again,
and again
Your customers want to Look, Feel and Live
Better!
Products that create a VISUAL result!
Unique
Universal
Proven
EVERYBODY can use our products EVERYDAY
Customers return to you!
PROVEN Products!
A Winning Formula!
12
NuSkin Personal Care

• All of the Good . . .
• Grade 1 aloe vera
• NaPCA
• Hyaluronic Acid
• Antioxidants
• Algae extract
• Avian collagen

And None of the Bad Mineral oils Paraffin
petroleum by-products Isopropyl alcohol Lanolin
13
PharmanexTM

• Worlds 1 Supplement
• According to www.supplementwatch.com

• LifePak Everything you need.

Costs less than a soda and a candy bar
Take the LifePak Challenge!
Offering a complete range of nutritional
supplements
14
Actual Average Incomes
Success requires considerable time, effort and
commitment to the programmed. There are no
guarantees. Not all distributors qualify for
commission bonuses. The average annual earnings
from commission bonuses and assumed retail
profits for 1995-1999 of active distributors at
each level within the Sales Compensation Plan are
as follows For 1995-1999 there were an average
of 64,851 actively participating US, Nu Skin, Big
Planet and IDN/Pharmanex distributors each month.
To be an actively participating distributor, a
distributor must must have either received a
commission cheque or placed an order for
products, promotional materials or services. The
average annual income per actively participating
distributor for 1995-1999 was 2,964.31. This
average annual income includes retail profit
based on a 43 retail mark up price.
Out of the active distributors for 1995-1999,
78.72 were distributors who purchased products,
promotional material, or services from the
company, but did not receive commission
cheques. The percentage of active distributors at
each level has been rounded to the nearest
one-hundredth of a percent. If you have
additional questions concerning this information,
please contact the company at [phone] or
[phone].
15
Actual Average Incomes
For all the legal explanation, please see
previous slide
16
Linear Income
X
X
X
Where do you want to be in 10 years?
17
Compensation
TEST
18
System 1

• Each of these couples has earned more than 2
  million US since Thailand opened in 1997.
• Ekklek has an MBA from Wharton.