Prysm iO-Joe Chang

So, my understanding is okay, most of Spanish that you spoke, it wasn't translated for me, but I guess I got a gist. You introduced both me and Dr. Esther, right? So, and when we speak in English, I understand that it will be translated simultaneously. Is that what it is?

So, am I supposed to speak first?

Okay. There's not a lot of preparation, but anyway. So hola, I welcome everybody and again, this is my understanding, most of you on this call are somewhat health professionals or at least you're related to the health industry. Is that right or wrong?

Okay. All right. Okay. Good. Can I show some slides here?

Let me see. It's this one. Let me go.

All right. So, Dr. Shelly is going to go into a lot of detail about our product specifically and so on and so forth. Okay. So what I'm going to do here is to provide this particular group of folks on the call here some background in terms of what Nu Skin is all about. All right, because the background is very important because it's almost like what I call a cornerstone or the ethos of our culture in the company, how we develop our products. And most importantly, one of the things that we pride ourselves here is actually this particular thing that we call, let me see, we call ourselves an evidence-based anti-aging supplement company. In other words, we tend not to really just believe that a particular ingredient that we put into our product is actually good. All right, we need to get the evidence, particularly the scientific evidence, to prove that it is actually beneficial. So that's the most important thing that is probably, we are one of the very few companies that actually will conduct scientific studies and clinical studies to get the evidence for our anti-aging supplements. Okay. So that's very important because like I've always believed, you know, with many companies whether it's in Latin America or whether here in the US, the challenge has always been companies are willing to say whatever they want to say but they never are willing to invest in scientific research to prove what they say is true. Right now, frankly, not many people are going to dig very deep into a company and find out exactly where what the claims are being made for the products are actually based on scientific evidence. We are very, we are sort of different in a sense that we will not say something that we cannot back it up or substantiate with clinical evidence. All right. And what sort of company are we really? Our focus, if you will, in Nu Skin is all about anti-aging. All right. And the reason why we want to focus on aging is because we all grow old. But really it's about, I don't think we are ever going to make the claim in a sense that we're going to help you live longer or like over 100 years and so on. Maybe that can happen but we think at the current state of the scientific evidence and what we have is that we're going to help you live better longer. In other words, your quality of life, if you will, should be at the highest level possible no matter how long you live. That's a big difference. Okay? It's about the quality of life, what we call the health span. And in order for us to get to that point of giving you that kind of benefit, we have taken a very different approach to anti-aging. And that is we wanted not just to provide symptomatic relief. In other words, treat the signs and symptoms of aging. We rather go for what we say directly to the sources of aging. And what we have done through scientific research and with collaboration and communication with some of our collaborators, we feel now, we believe very strongly that these sources of aging are at the genetic level and that's where we need to go. So and if we can actually influence at the genetic level then we feel we have a much, much better chance to develop meaningful products that will give persistent benefits to people, right. So how do we do that? This genetic level is obviously based on the technology that, you know, many of the geneticists and biotech companies and so on, we use, we call a gene chip if you will. Nowadays you can actually essentially assess the activity, the gene expression of all these genes, close to about 23, 25,000 genes in the body, almost at the same time by using these kind of gene chips. And what we could produce is really a picture, a genetic picture of really a healthy tissue or what we call a young tissue and rather an old tissue that doesn't look very healthy. And instead of changing the gene, the gene is the same, but it's the activity associated with that particular gene or those genes that turns out to be different. And this is how we color it. We call these heat maps. So fundamentally you can see when you use an old tissue, the gene expression profile of those genes is very different from a young healthy piece of tissue. Right? So what we really want to do is therefore now that we have fingerprints, a gene expression fingerprints, we're now able to sort of say okay what we should be targeting is a picture or a profile that looks very much like the left side. Okay. And overall, as you hear us speak and our scientists speak and so on, we call this approach, this genetic approach, the ageLOC approach to anti-aging, right? Because now for the first time ever, we can actually target sources of aging and be able to influence them. So that's what we do. And here's just to illustrate further in a sense what we are talking about relating to health span, like I say, you know, typically now when your age of 50 years is starting to get, you know, into the red zone which I say is the onset of disease if you will, you get better if you can move that red zone more and more towards the right side. Okay, you do not want the last scenario, what I call the nightmare scenario where the red zone is so wide and it's starting to go earlier into your age. So, what we're really aiming for with our anti-aging approach in Nu Skin is the one of the third, what we call the best column where there's very little red and it's all blue. In other words, your quality of life, you know, is very, very good throughout however long that you live. Okay? And this is based on really fundamental science. Our collaborators, for example, at the University of Wisconsin in Madison, Dr. Weindruch and Dr. Paola, they had actually done extensive genetic research and they had done it on a colony of primates that they have kept for more than 30 years. Okay, I'll show you a picture. This is very dramatic because these two monkeys or primates are essentially of the same age. But I think you would agree with me that the monkey on the left looks much healthier than the monkey on the right. Okay. Now, the only difference, they're about 28 years old, as I indicated here. The reason why we're so excited with this is that although they're of the same age, the only difference between the two monkeys is the fact that we restricted caloric restriction for the left monkey. It's not that the monkey on the right is eating a bad diet, it's actually eating a fairly good diet recommended for primates but still, you know, there were too many calories in it and so on and therefore in fact that monkey is also suffering from a lack of micronutrients as well. So you can see how caloric restriction, how nutrition, as Dr. Hester will go into it later on more in terms of how we attack nutrition, how important it is as it relates to aging or the aging process. Okay. So and it's been proven in many studies. I mean for this particular group I'll just show you some of the studies and really most of these studies are related to caloric restriction and what we call a nutritional intervention and always a caloric restricted animal in different animal models. You can actually see that they live, they have a much better quality of life if you will, right, they might live to the same age like 30, roughly about 30 years old here but you can see the red line is above the blue line which shows that the percentage of the animals with no disease, they still look healthy, is far better in the caloric restricting group. All right. And this is very important to us because then we look at the humans. The humans behave in the same way, you know, and this is a study, this once again you can actually look at gene expression if you will in twins. These are identical twins. And when they were young, three years old, those colors just show you the gene expression on the chromosomes if you will. And this investigator showed when they were 3 years old, fresh from their mother, not exposed to any lifestyle changes and have not adopted bad habits and so on. The color of the twins, they look very similar, you know, is spread out throughout the chromosomes obviously, but it's about the same. The pattern, the color pattern is the same. But when they reach 50 years old, the change happened. They don't look so similar anymore. They seem to, some of the genes or some of the clusters of the genes are not behaving in the same identical manner as the other twin. And subsequent studies and so forth they found sure enough, you know, that the difference, they are all related to lifestyle habits that are negative, they have a negative impact.

Ah, okay. All right.

Yes. Perfect. Thank you very much. Okay, so you can see. Yeah, I'm sorry. So that's what it is. Chromosomes, twins. So it happens in humans also, not just in animals. In humans, if you don't have a healthy nutrition or healthy lifestyle, you are going to change the gene expression of the age-related genes. Okay. So, we've done all that and we have the foundation if you will for our approach and how we're going to develop anti-aging products, right? And it's not just for the body inside of the body. We also apply the same approach to the skin as well for our topical products. So it's good but fundamentally it comes down to this, right, when we talk about our science, you know, what are we really talking about and really there's a lot of science that we do, fundamentally our science is your guarantee that our products are safe and effective. That is the most important. Okay, that's the most important promise we can make on supplements. If we cannot prove that it is safe, we will not launch that product. After all, when you have many doctors in this particular call and so on and so forth, you know, your Hippocratic oath insists that you do no harm, right? So, and that's your first promise to your patients or to your people. You are people who come and see you. You should not do any harm before you can actually talk about whether you can help them to treat their disease and so on. It's the same here for us from our nutrition aspect because we are using a lot of ingredients together and our science has to help us to create a guarantee that the product is safe first and then before it is effective. So this whole process that we go through is what we call the 6S process, it's our foundation, right, so there are six steps involved in how we develop a product and manufacture a product and each of the steps, you know, is really about getting data and information about the ingredients we put into the final blend. We must know how much we put in and we must know what is the level of active ingredients we put in. This is probably our most important and unrecognized sort of value in Nu Skin is the fact that we don't use ground-up leaves because we can never standardize or make a consistent product out of ground-up leaves. People don't seem to appreciate it as much. But if I turn it into let's say a bottle of wine. Okay. Why is it a bottle of wine that has been produced let's say in 2013 from that particular vineyard is different from a bottle of wine from the same vineyard but it was produced in let's say 2015, two years later. Why is it different? In fact, sometimes it's so different, one of the bottles, it becomes what they call reserve or vintage and it costs much more. Fundamentally, it comes down to the fact that you cannot control nature, right? The temperature, the amount of rainfall, the dirt and so on and so forth. Even from the same exact vineyard, the grape is going to be different and therefore the wine will be different. People appreciate that. But we are also the same situation here in Nu Skin with our products. They are all natural products. If we use ground-up leaves, we will never know whether we can produce a consistent product. And therefore we cannot make a guarantee to all of you that our products work and they're safe. Okay. So our product innovation, if you will, you know, some of you may or may not have seen our buildings here in Provo. There's one in Provo, the one on the top left, and the bottom one is the R&D center that we have in China. Roughly we have about 75 scientists and there's another one, there are very few companies that are willing to invest in having a scientific team to develop products. You cannot really nowadays be able to get away with just one or two scientists to develop products. It requires a teamwork just like you cannot play a football game with 11 players without 11 players. I think science nowadays is the same. Ah, these are the twins that I showed you on the chromosomes. You can see, right, the twin on the right looks much older than her twin on the left. So I won't talk about much about our products here. LifePak Nano is our major, what we call our flagship product. It's a foundational product. It addresses all the nutritional deficiencies in a person if you will and I think this particular product is really one of the ones you should start off with if you will. You know, we have since based on age developed another product called ageLOC Youth. Here we focus more as I mentioned more on the anti-aging aspects of the body and ageLOC Youth is the one that we think is the most advanced anti-aging supplement we have ever produced and it's interesting, we conduct clinical studies, this is actually a functional MRI study with ageLOC Youth where after about I think roughly about 12 weeks we can see when you scan using functional MRI to scan the brain that are much wider areas of the brain showing up after consuming ageLOC Youth for 12 weeks. You know, we can show inflammation if you will on the skin is also significantly reduced in the presence after taking ageLOC Youth and you can do it on the skin. So that's another clinical study that we conducted, right, and in fact you look under microscopic analysis actually shows us that the number of damaged cells per square millimeter actually got reduced by more than half. All right. And then this product, and that's the reason why we're so excited about the ageLOC Prism, is the fact that we actually had a previous version of the scanner looking at antioxidants and so on and once again we can show after the consumption of ageLOC Youth we can see a gradual improvement of antioxidant protection. So these are the clinical studies. This obviously, this is just on one product, other products Shelly might go into that like ageLOC Meta and so on where we have also conducted clinical studies so I won't talk about ageLOC Meta and this is another one of our metabolic health products that we just sort of launched less than two years ago, took us seven years to come to this point. So I'll stop here and really give the floor back to Dr. Hester. We have many products. All right. And frankly, I doubt many of you, if any of you, can actually focus on all our products, right? So, fundamentally, I look at our products as bricks. Yeah. Where you're going to build a house of nutrition. Okay. And the foundation, like in any building, you got to have a great foundation. It doesn't matter how nice your house looks like if it's not sitting on a solid foundation it will collapse. So that foundation for us we build it on ageLOC science, antioxidants and so on and so forth. And on the product side, you know, it will consist of LifePak, the ageLOC Youth product and perhaps we can put in ageLOC Meta as well. These are what our foundation, and once you build a solid foundation you can then start building the rooms in your house and those will be our other products that you can add whether it's from the skin side or whether it's from the nutritional supplement side. You can start building because you know, you would know your family history and so on where you should be focusing your attention on, right, that would be our house on nutrition that you can build with Nu Skin and our products. I sort of look at this picture and it sort of reminds me and let you know, right, without anything, I don't know whether you understand the English I put down there, you know, this is a lady sitting there and somebody came out and say wow you look really good. Are you happy and all that? What is the secret for living such a happy life? Well, she sort of say, well, I smoke four packs of cigarettes a day and then I smoke some more marijuana before I go to bed and then I drink a whole bottle of scotch whiskey every day and I only eat McDonald's and junk food and stuff like that. So the reporter say, well, you found a fountain of youth, haven't you? How old are you? Well, she say, I'm 24. That just goes to show you once again bringing you back to what I started with. It's the fact that no, it's not how long you live, it's how well you live that is the key to Nu Skin, right? And it's all related to giving you the best nutritional support ever. Now for the medical professionals here and all the other folks, you have a strong understanding perhaps of what I'm trying to say. But now you have an even more powerful tool that you can use to really help people to understand that if you improve nutrition, you can live better. And that is our device that we call Prism, right? Many of you have seen it I think I hope and you know it's, oh, it's this particular thing right, you many of you have seen it, it's a small portable Prism and it will be able to show you if you take one of those products you can now see how your nutritional health improves because the number goes up. No other company, they can say whatever they want. No other company can actually show you for the average person how your nutritional health is improving. That's the power and we couldn't have done that. This Prism right is great but we couldn't have reached this point to have developed this particular device if we have not built all the things I mentioned to you over the last, oh I don't know, 30 years or so in Nu Skin. So when you're here listening to me and so on I hope you know really what I'm saying, in fact is don't listen to me, the Prism is actually about not listening to what people tell you, but to see what a product can do, right? If it doesn't show up, most likely that product, no matter what they tell you, is unlikely to get inside your body to do you any good. So, that's really the power of Prism. We just launched it last time. Steve was telling me that oh my goodness there's over 500,000 scans now we have done throughout the Nu Skin markets. So it's getting a lot of traction and it's very interesting. So I've spoken too much and I think I don't know whether it's Q&A or I'll just hand the floor over to Shelly. Shelly, you're taking?

Yeah.

No, you will, so the Prism actually helps you to not exceed the micronutrient limit. Okay. As long you stay within the scale like the purple area or whatever, that is very safe. It's actually, so in addition to showing you the nutritional health, the Prism can also be used as a safety monitor too.

Say that again.

Are habits, habits as in lifestyle?