NU SKIN PRYSMIO BY DR JOSEPH CHANG PRESENTATION

Anyway, it's so good to see all of you. Actually, this reminds me, we're in this Nu Skin office and I've done quite a few of these meetings now in practically every market because this is how it all starts and it's really good. I really enjoy these kind of meetings because it's not as formal as having lots of people. So, and we're going to keep this at a discussion level and informal. So hopefully, you know, I can share some of the knowledge that we have and what Nu Skin is all about because it's sort of interesting, right? I'm a scientist. I guess John might have alluded to that. And I came into Nu Skin in 1998.

Some of the new folks might not know this, we had this company that I co-founded with a couple of my buddies and it was called Pharmanex and it was in Los Angeles. So, and we were doing okay. And we were actually in 28,000 stores with some of our products. In fact, every time we finished developing a product, we just did what a traditional company would do. And we had it distributed on the shelves of, at that time there were drugstores like Walgreens, Walmart, whatever. Right on in the states. So, we were rather successful. In fact, we became pretty profitable after three years of existence. So that was good.

And then as we got a little bit well known, then somebody called from our law office and said a company wishes to come and see you and we said why? He said well my partner, you know law firms have, they usually have lots of partners isn't it? And each partner represents a certain company. And it so happens for this firm, the other partner was representing Nu Skin. And they were talking to each other and somehow you know Nu Skin heard about us in Pharmanex and that's the name of the company and learned what we were doing as far as really developing how to develop a proper nutritional supplement.

So they got rather interested. In fact when they got interested on a particular product, I don't think you have it in Australia now but it was a product called Cholestin. No, you don't right? Some of you probably knew about that when we had it isn't it? It was so good that many of the regulatory agencies of the world said it's too good, you cannot have it because it's not a supplement anymore, it's a drug or whatever went on anyway.

Anyway, one thing led to another and essentially after some discussions with us, they actually flew over to Los Angeles and had spent a few days with us. They started to think instead of just being interested in a particular product, is to perhaps acquire the whole company. And that's where we sort of stepped back and said really you want to really acquire the whole company? And what exactly? Because frankly like some of you, you might have a few new people here, is that I've never heard of network marketing.

We were in traditional business. I just told you we had 28,000 stores. All we do is develop our products, do a lot of marketing, do a lot of advertising, put the products on the shelves and that's how they are being sold. Right? So when Nu Skin said ah we don't do all that. We sort of say really? Oh and they had to explain what they had to do and first of all they have to explain why on earth they cannot spell.

I said, "How come you can't even spell a simple word like Nu?" Okay. And then secondly, can you tell me where Utah is? They came from Salt Lake. Usually people on the both coasts, we fly over Utah, you know, we never ever land in Salt Lake City. So there a couple of things you know really and most impressive, or they thought it was impressive, was that we were a public company, we were on the, we just got listed on the New York Stock Exchange. I said really? How did you do that? You bribed somebody. Yeah. So anyway, so I mean obviously I was totally ignorant. My fault, right? And so on. And we soon learned it was a rather great company.

So the question becomes, and at that point in time we actually also had another offer. I came from the drug industry. Yeah. Before I started Pharmanex, the legal kind of drugs by the way in case you guys want... every time I say that in America the Yanks would tell me really what they were selling weed. Oh gosh. Anyway, so my previous company suddenly saw the light, if you will, and decided that they wish to start a nutritional supplement division next to their drug business. So they made an offer, too.

So we were sitting there in our shorts. We were very much like Sydney siders, right? I mean, our weather is not too bad in Los Angeles, too. So we stand there having maybe a beer and say, "Wow, we got these two offers, you know, what are we going to do?" You know, you said we don't really have to sell. After all, we sort of, you know, are profitable and we can survive on our own. So, more we thought about it, it came down to one simple, actually this is a very simple, I'm not even sure whether it was a business rationale.

If we had gone with my previous drug company, if we had sold to them, the business model would not have changed for intents and purposes. We would still be in the 28,000 stores and perhaps with a larger budget, we could have been even double the number of stores we're going to be in. Yeah. But the marketing, the advertising, that activity is not going to change. It's going to be same except it's going to be expanded because there are more resources.

By contrast, when we look at Nu Skin, the way they explain the business model, and John alluded to that, right? Is the fact that it's actually a direct people-to-people business. You know and they explain you know how they're doing it and at the point in time, and this is back in 1998 now, they had about 600,000 you know distributors including Australia because Australia was already open 30 years ago. So, and they said it's really through our distributors, folks like you, that you're going to be able to tell the story of your nutritional supplements and so on and why they are really important for people's health.

So it was quite compelling the way they say it and we sort of say maybe this is the way to go because we wanted to go international and I don't know how much you folks know when if you want to take your business internationally it costs a lot of money. You have to establish or create what they call a distribution channel. Yeah. And for all intents and purposes, when you look at what Nu Skin is, was at that time and still is, is an incredibly powerful distribution channel.

So, and that's what drove us into the arms of Nu Skin really. I mean, I say, well, it's better to do it now because they promised like within six months. And I said, really? That you could take all our products internationally? And they say, yeah. So, okay. So, we decided to sort of go with Nu Skin. And this is incredible because this one will come to what I think Nu Skin is all about for all of you, especially the new folks. And this is that we came in end of October, early November, and as soon as you soon learn about one of their founders or one of Nu Skin founders is a person by the name of Blake Roney.

Yeah. So when Blake came up to me here and sort of say, "Well, Joe, you're now a member of the family and so on." And by the way, I forgot to tell you. We're going to take all your products out of the 28,000 stores. That was the one I say really? This is a guy that founded Nu Skin. He doesn't seem to have a business mind at all because we spent a lot of resources to establish that traditional marketing channel. Why can't he let that alone and start the Nu Skin channel and run two at the same time?

Yeah, that would be something rather, something that any normal business person would do. But he feels that you can't do that. And he says, "Joe, we can't do that because fundamentally Nu Skin is a company for you, you, you, you, by you and with you." That's the key difference, right? In the network marketing one, it's really for all intents and purposes. Nu Skin is your company.

If you guys don't work, if you guys don't build your organization, if you guys don't build, there's no Nu Skin. I don't know whether you guys really sit back and think about that. No other company works that way. So that's really something that sort of stuck with me and at that point in time I really didn't believe him. He can say anything he wants. He owns the company I don't care right so and I said yeah what can I say right you own the company now you're the big man so you can do whatever you want I'm going to leave in about six months time yeah after the transition.

So anyway, so in January, and this is as a scientist I depend a lot on data if you will rather than just platitudes somebody is telling me so. And in January of that 1999, yeah 98, 99, that one month when we recalled all the products we don't sell anymore, okay, of the Pharmanex products, that month in the Nu Skin channel, the revenue just from Pharmanex products, not from Nu Skin products. Here's the Pharmanex products. That revenue, that month's revenue was larger, greater than the prior 12 months total.

That was my, yeah, you quite right. He's the one, right? Because for sort of like that was my first proof, if you will, or first data point that sort of says, hm, this is sort of interesting. This guy is not as silly as I think. You know he really does know all of you and so on. So keep that in mind if you will. Yeah in a sense that you really are because up to this point do you see any Nu Skin advertising around? No.

How on earth are the products going to be actually used and so on if none of you are willing to really tell the story behind those products? It's not going to happen. Yeah. And this business is also very interesting to me because now I come back to fact right there are two things that drive you here especially new people. You might be interested in creating a business, a successful business right? Business is nothing about why, it's about making money plain and simple right? That's what they mean by transformation and that's what they mean by you know helping you to grow and so on.

But in this particular business especially in Nu Skin what you're doing is for me when I see the metric if you will that I use is as you become financially successful and so on and build your organization. I know there are more people getting healthier. There are very few businesses that allow me to be able to equate your financial success to being healthier and looking better. Think about it. Right? So there is an altruistic if you will, right? Even you're not an altruistic person, you at least are delivering something that is very meaningful.

In fact, something more meaningful than just purely dollar and cents. That's how I look at it anyway. Yeah. So I mean if you do hear some negative comments about this particular business model, I mean people don't stop to think every business model can be abused if you will. There's no such thing. Every government in the world is a network marketing configuration. So I'll leave you with that particular thought.

And so it's sort of interesting, right? I'll talk to you about Prism in a minute. Where am I supposed to be crying? Are you... Yeah. Right. Okay. You Filipinos. I know. Okay. So, I show you that previous one. Oh, can I go back? Yeah. No, I don't want to see that guy. So, all right. Don't you know those were dolls? I call them portals.

Many of you, especially new ones, if you come into Nu Skin, you'll be exposed to, I would imagine I don't know all of them are in Australia, but we have probably both the skin care products and our Pharmanex products, the nutritional supplements, we have probably slightly over 500 of them. And I'm not counting them as in business they use SKUs as one, that's even could be triple that. Yeah. So just the type of products that we have. So it's a huge portfolio that we have. All right. And sometimes I think frankly in the world of Nu Skin we may have sort of drowned you with the number of products we have.

All right. So you don't need to. It's there. It's a portal. It's for you to sort of see where your passion is, if you will, because eventually as you tell your story. Yeah. You're not going to tell the whole story yet. You're going to probably try to get somebody to use a particular product and you must be able to explain it and you must be able to describe it. Yeah. So, don't try to assimilate and exalt everything you want to know about all those products we have here.

Choose the ones that really you're passionate with. Learn as much as you can about them and it's really, those are the products you should do what we call, you know in a way use them as wedges, you know to open the door and then as you go through these portals, you can over time you'll be able to learn the others. Yeah. So I look at the Nu Skin opportunity. Yeah. And people sometimes also say, I might as well share some of the criticisms if you will that I hear all the time and why why do you want to do Nu Skin right? Even our general manager here tells you it's 30 years old it's an old dog it's going to die.

Can barely walk it's limping blah blah blah right why don't you come and join us? I mean I'm sure you have other competitive companies here yeah. Okay, you whatever. Um, and say go. We're a ground floor opportunity. I hear that every time in this world somehow ground floor opportunity connotes that it is going to make you more successful than an established New York Stock Exchange company that has been around too long.

Don't know why. What did you guys think? What is a ground floor opportunity? In other words, they don't even have a track record of success and you're joining them in a sense you have no idea whether they're going to exist a year from now. That's the other dark side of ground floor opportunity, isn't it? And there are a lot of evidence out there. Ground floor opportunities come and they go very quickly. So that's sort of like you know another side of the coin that you should consider for us with us.

I mean we started fundamentally by 40 years old, 40 years ago in 1984. There are lots of things in my time over what 26, 27 years of Nu Skin, you know I hear a lot of things being presented and so on and it's hard for me to, I try, I'm a stupid guy I like to get it down to something that I can really understand and distill it if you will. So whenever they talk about the founding of Nu Skin back in 1984 all the things regardless whether it's a compensation plan whether the products and blah blah blah it seems to come down to this and that is all of the good, none of the bad.

That is the Nu Skin DNA has always been and will continue to be that it hasn't changed all right so and then that's when I told you that Pharmanex was acquired by Nu Skin is that science came to arrive at a level or maturity that we can base all the products now on scientific data. This is really in a way key in so far as in this particular industry things are being said but things are never ever often proven because talk is cheap, right?

I can go out there and say anything I want. You never hear a company say, "Oh, we make the lousiest products under the sun. Come join us." It's always about the talk, right? But the thing is if you don't have the scientific evidence that talk is nothing but really just that. And that's the difference in Nu Skin once again is that we talk a lot about our science. I know it's very difficult sometimes to understand our science too because none of you, I maybe one or two but the majority of you are probably non-scientists and scientists are weird people. They speak English but I don't understand them either because they seem to use words that doesn't exist in English.

Well, they do. They're so technical. In other words, they use jargon a lot. We scientists, we do that all the time. Yeah. So, but I'm hoping that the way that we communicate to you about our science-based products is the fact that we don't just talk what we talk, we do what we say. And the only way we can do what we say is to have the ability to do our scientific studies and clinical studies and so on. And you can't do that if you don't invest in it. That's another thing. You can't magically think about doing a scientific study. You've got to devote some resources to it. And Nu Skin has always committed to invest in scientific studies. Yeah. So that's how we produce.

And then back in 2003 that's when we started to measure. That's when I say I know you know I just mentioned to you and I hinted at the fact I can do all the science in the world but sometimes it's like it's difficult. We were hoping at that point in time to now begin the journey with all of you as our fellow compatriots in so far as you are able to see. That's what science is, right? To be able to see and not just imagine but just to be able to see the evidence and that's when we brought out the BioPhotonic Scanner to help you to see and to answer that simple question because we knew we can talk about all the science in the world especially on nutritional side but you're still going to say I don't know I don't feel anything.

I hear that too right I don't know why you're going to feel something immediately. Yeah. So therefore I say if we can somehow develop something to help you to see, you know at that point in time was about the antioxidants if you will. Yeah. It would at least give you a sense of comfort and confidence that the products are actually being taken into your body. That's a key thing. There are lots of companies out there saying we have the greatest product, but they never seem to be able to show me the data that their products are actually being absorbed into the bodies. Not much point how good the products are if they're not being absorbed. So that's what we did, right?

We're starting to help you to be able to see what nutritional, good nutritional supplementation can do. And then we started to look at say oh yeah you know we so far including ourselves we have been really when we talk about anti-aging products or whatever we're really talking about you know in a way maybe just alleviating the signs or the symptoms of aging. We never truly address the sources of aging in the body. That's where we went after the genetic sources of aging because you know at that time that was about 2003 I mean the scientific community is starting to understand what where the genes are and so on and we happened to collaborate with University of Wisconsin in the US, some geneticists, be able to identify those genes there about 23,000 of them and so on a few thousand of them they're directly responsible for the aging process in the body.

So that helped us, you've seen ageLOC products now. I'm sure you've seen that name, right? So it represented a very significant breakthrough in our ability to develop anti-aging products both for the skin care and also for the nutritional supplements. So yeah and then beauty devices obviously many of you if not all of you are familiar with our LumiSpa, Galvanic Spa and so on. There was another type of technology we developed in Nu Skin that was rather unique. Okay. So when I look at it right all those five and I put them in a step up almost like a ladder. Yeah. For all of you see it builds on the previous one. Yeah.

So I was telling a story in Melbourne. How you might have heard this. Everybody has heard the story of David and Goliath, right? What did, how did David, how did he defeat Goliath? What is this boomerang? What is this? You know, he's saying it's a... I think was throwing his catapult, isn't it? Yeah, it was a slingshot. Actually, yeah. If you read the Bible, and you should, it's the Old Testament, right? And David had a smooth stone that he put into the slingshot and he flung because he was a shepherd boy. And that's how he defeated, how he kept all the wolves away from his sheep. Yeah. And became a real sharpshooter. So, he killed Goliath that away.

Wonderful. Since you're so good, I'm going to ask you again. That's why you stopped reading the Bible. What happened after that? That there's something else in that David and Goliath story. Why? You're smiling at me. You know, you stop me. I know. I know. Goliath, he defeated that. Yeah. He won. Yeah. Mano a mano. You won. Yeah. Absolutely. There was something else David had. You really need to go back and read your Bible. He had four other smooth stones in his pouch.

Why did he have four other smooth stones? There was only one Goliath. He never missed. I told you he never missed. One smooth stone is more than enough, right? Yeah. Here's David. Why do they have four? He actually, you know, if you read the Bible, he actually went to the stream and collected five smooth stones. One, two, three, four, five. Because I'll tell you... oh god... are you a kiwi? You see you all this... I need a kiwi to tell me... oh come on guys come on.

Because David knew Goliath had four other brothers and he had to prepare himself that in case those four other giants came along he had enough ammo to take them down too. That's Nu Skin five smooth stones.

This you won't find in the Bible because Nu Skin has a sixth smooth stone that we're going to talk about, Prism. All right. So my point is yeah we anticipate what you would need as you go forward and coming back to the ground floor opportunity. We are never never ever old because all these platforms were created for you. So that it actually makes Nu Skin a ground floor opportunity every time. That's how the products and the business model comes together. Yeah. I hope you get that because John started off with that introduction. Yeah. And some of you knew. I mean, why are you sitting here on a Friday evening?

To listen to... Oh, God. You have better things to do yet to learn more. But it's for a purpose, isn't it? So it's really remember that Friday evenings, you know, sort of right. Yeah. You must have a life. So, yeah. So our science coming back to that and you probably have heard some of our scientists, not many of them. Yeah. And they would come and tell you about certain product or matter or new ageLOC or collagen product and so on. It's great. Yeah. But walk away what are they trying to do?

And sometimes our scientists may not really communicate as effectively on that front and that is it is a guarantee. You know I mean it might not be as sexy as something else that you can hear but it is fundamentally we cannot guarantee our products are safe and effective if we don't have the scientific evidence. That's the guarantee. That's the promise.

And what does that translate to? Because I can't be standing here on a Friday evening talking to all of you if I don't have the scientific evidence. Because I really even on my personal level I'm hoping that none of our products when you talk the story behind them and you give it to whoever and so on and to consume and so on they will ever ever embarrass you, right? Because you're going to meet these folks. These are people people business right and so on. And maybe they might not join your organization, but they still might consume the products and you might meet them on the street and so on or whatever. You can still look those folks right in the eyes because I know with a lot of, in fact 100% confidence that these products will never ever embarrass you and they're safe and they're effective.

That's what the success, you hear this a lot, right? We put it into a sort of an approach that hopefully you can understand, you know six S's. So I'm not going to tell you a story on this one I explain this one so anyway so yeah you know the reason is easy right? Each step and each of these steps that we have that starts with the S, we have to do it. We cannot imagine it. We have to get the scientific evidence. We have to do the experiments to select the right herb or the right natural product. We have to source it from the right place.

You know and many of our natural products we get it from China. I don't trust China. No, I haven't heard. No, we that's why we have an R&D center in China in so far as those herbs are in China will help us actually get to the source of because we buy tons of it, right? And be able to determine whether that particular batch of raw material is something that we should use for our final product formulation. Yeah. Yeah. So that's what we really do. Sourcing and engineering lab. Here's another one, right? We have so many devices now. I just showed you the fifth smooth stone was related to beauty devices and so on and now we have some nutritional devices we have to start investing in an engineering lab.

You know all these, these are very, I mean where is that one I'm going to show you I think it's this particular one I don't even know what it is when they first showed me and they say that thing cost $200,000. You know So and that's what we do. So what when you hear our CEO Ryan Napierski and he has been saying that for quite some, I think you probably have seen this right. So we are trying to be, first we started off with we are a beauty and wellness opportunity platform. We have added the word intelligent is because of the advent of AI, artificial intelligence, and I'm going to explain to you AI a little bit more because many of us use that word a lot but we don't really know what it entails, what it really requires to actually trigger AI so hopefully stay with me but the market is huge and so on so it's not a problem yeah.

So the Nu Skin world, I remember sort of the 500 products and so on. Think about the Nu Skin as an ecosystem. Yeah. So it's never one particular thing. We are not a one trick pony company just because you know the one trick pony company is never truly a company in that sense. We are really a company in our Nu Skin world where we have certain elements that we cover. But notice the one on the left called coaching and the one especially one on the left that is very important because we actually frankly we don't coach you do.

All right. So you are part of the ecosystem. You cannot say when something goes wrong, it's a company's fault because the company is you and you are part of the solution. Okay? You cannot be not part of the solution. I've never seen a single approach in Nu Skin that has worked without the full participation of all of you not just here obviously in Australia but around in our world that's how important and critical that is in the ecosystem that I called Nu Skin.

And what do you really do? Again right I told you I'm really simple and I hear wow all these things. Fundamentally to me your business is driven by three things. You recruit and afterwards you wish to retain all of those folks. Yeah. And then the third element is related very much to the volume you generate, isn't it? That's the business. It's not just all about recruitment. It's not just about retention. The volume is key. Right so that's why I come back to my initial comment that I made that understanding and where does the volume come from? Frankly it's from products.

Right, so then that is where you hopefully will understand a few of those products, and those are the ones that will generate the volume. If you don't truly try to understand the products, okay, how are you going to incorporate those products into what you guys do? I've yet to meet a successful leader that has not truly understood a couple of products and how it works in their system. So that's really... I'm a simple guy, and that's why I keep on looking at this. So, what do our products do? It doesn't matter whether it's a skincare product or a nutrition. We're fundamentally going to help you or help all of us to get the red line close to the blue line. All right? Look at the Y, the vertical axis, I call it. What am I... I label it as what? Not how long you live, it's the quality of life. It doesn't really matter how long you live, frankly, because really, I mean, I'll give you an example. My parents, right? So my father died roughly at the same age as my mom, but my father, and it's in the book, in the sense that sort of my father five years before he passed had no quality of life. He was in a wheelchair, he couldn't even shave himself. And for a guy that tends to be a really... a tremendous loss of self-respect. My mom, on the other hand, up to the very day she passed, she was healthy. How do I know that? Because every time I visit with her or visited with her, she still thinks I'm a nine-year-old. She still treats me like a nine-year-old. She tells me what to do. You see, all the moms here are laughing because they treat all their children that way. Doesn't matter how old they are, but for me it was a great way. As a scientist, I treated that as my experiment, because my experiment is working because my mom is still telling me what to do. So the brain is working well, right? So that's how I gauge how healthy my mom was. And then one day she just closed her eyes and went away. She was a person that I would call, and this is also an interesting term, you know, she was a person that I really believe she died healthy. Those two words never ever come together. All right. So that's what the products that we have in Nu Skin. We're hoping to help you live better longer, not just live longer. That's the key, and that's a more realistic thing rather than really, you know, in a way pandering to something that is really the fountain of youth and so on and so forth. So one day, you know, we're all going to die. It's morbid and nonetheless, we might not want to think about it, but I'm hoping that all of us, when all our buddies and so on, when they come to the wake and we're lying there, the first thought that comes to their mind is, 'I want to look like him.' Then I think we know that you have lived better longer.

Sort of in order, I'm telling you all this, and it's sometimes very difficult, human nature being what it is. Once again, it's about seeing, and we're hoping in a way you're all evangelists, you're going to drive people there, but sometimes it's awfully difficult. I realize that people sometimes are stubborn. So hopefully with this new technology that we call Prism, that we're going to help somebody to see something, and maybe that will change their mind quicker and more effectively. That's what Prism is all about. All right? It's a little round thing and you carry it around and so on. And I'm going to help you appreciate that round thing is not just a toy. It's actually a scientific instrument, and there are certain things you have to do and so on. So that's what it is, and that's why it's intelligent, and I'll hopefully give you some background on this particular Prism so that you can appreciate why it's such a breakthrough. All right. All the skincare people, you never realize it, right? You put all your stuff on your face, our Nu Skin skincare products and so on. I don't need a scanner for skincare products. You guys look at your scanner every morning. It's called the mirror, right? And you've heard of Nu Skin's famous half-face demo. You know, you use the galvanic and half your face looks like you're a stroke patient and the other one looks okay. Because it's more firm and so on. So, how do you get that? You look at the mirror. That's a scanner. It has always been the most effective way of assessing and judging whether those skincare products work. No problem. So the Prism is essentially the same thing, you know, because if I ask you, look at this particular picture, tell me where the star is. The star... see, there's a star there. You can't see it. It's the same with sometimes in nutritional supplementation. People say, 'I don't feel anything.' You know why? Is it really there, a benefit? It's the same as you sitting there in spite of the guy who doesn't read the whole story about David and Goliath helping you to see it because there is a star. Oh, I see it. See? That's simply the analogy for the Prism to help you see, or to help those rather skeptical folks or first-time consumers and so on to be able to see almost immediately within a month or so.

So, I told you about the 2003 we had that BioPhotonic Scanner launch, right? And we brought in about two different versions. Finally, the smallest one that some of you may have used called the S3 Scanner. Remember, and this might have missed you, I say it, this was what? An antioxidant scanner. All right. It was good. At that point in time, we could not claim anything more than that. It measures antioxidants. All right. Now, if I'm in your shoes, I would be saying, 'Really? Antioxidant? Great. I can see antioxidant.' Well, what on earth is an antioxidant? Right on. You don't believe me? Go into a lift. I call it an elevator. But you go in a lift and you see a stranger and you are so proud of your skin and you say, 'In Nu Skin we have this technology. I can help you understand your antioxidant status.' I bet you the first thought that comes in that person's strangest mind would be, 'Huh? What is an antioxidant?' You have to explain what an antioxidant is. You have to say, you know, the antioxidant neutralizes free radicals, and the guy would say, 'Free radicals? Are they terrorists? You mean you can kill terrorists with the BioPhotonic Scanner?' How long do you think the stranger will stay in that lift? Less than two minutes. You've lost the guy. It's your people business, right? The Prism has changed that conversation. It's now, and I'm hoping you to get this message through, it's measuring the same substance, but because of artificial intelligence and all the things that we have learned over the last 20 years on the BioPhotonic Scanner, we are now saying that the Prism is being able to measure nutritional health. Even in Chinese, I bet you, you go into a lift and you meet this stranger again and you start your conversation with, you know, 'We have a technology that helps you understand your nutritional health.' I bet you say, 'Tell me more.' Then you can go to your antioxidant narrative if you so wish. But you got that person's attention. You see what Nu Skin is doing, right? Because not everybody, sometimes in a way, I'll flip it on a business side perspective. Not everybody is going to react to you favorably if you just start off with a money proposition. Frankly, they might say, 'Oh, you know what? Really?' But here you are starting off the conversation with something that's going to be terribly meaningful to that person. That person understands. That's how you make that conversation to be really, really productive in that sense. Okay. So it delivers on that promise. So that's what we have. So this Prism, that's why I'm showing it, it's no more this 'been there, done that.' Now, this is a nutritional health device. It's a nuance. I'm hoping that it is actually getting traction with all of you. It's still measuring antioxidants, but it's now being translated to meaning something far more meaningful to everybody. Capisce? Okay.

All right. And how are we doing it? Because of these two arms. All of you are very impressed with the left side because that's our light technology. All right. We've done a lot of focus on that and we articulated that every time we talk about the Prism and so on. Wonderful. You understand that? Right. John reminded me just now when I was chatting with him. I was up in the Blue Mountain this morning and so I was told, 'Did you see the... It's raining.' It wasn't raining out there. It was very cold. Just a bit drizzle. But it was interesting, right? I said, why is it called the Blue Mountain? It's because of the eucalyptus oil that's being secreted by those millions and millions of eucalyptus trees. And then that mixes with the water, the drizzle or whatever the humidity in the air, and then the sun shines on it and it gives you the blue color. So even in a way, even your Blue Mountain uses Prism technology. Oh, yeah. John came up with that, not me. So, that was good. However, that's why it's a light technology. It's pretty fancy. It's patented and so on. And we managed to filter all the light into something that we can measure that would be those antioxidants in the skin. This is a key piece. This is a translation piece because over the last 20 years without your knowledge and so on, we have been gathering or in parallel a sort of lifestyle data every time we got an antioxidant value from that individual. Okay. But we couldn't do it. We have over, I don't know, last time I checked, I think over 27 million data points and so on. And we never had the ability. It's impossible for us manually to find whether there's any relationship between those data points. But finally with AI coming on board for the last two, three years or so, we were able to put all those data into our so-called algorithm that we created and say, 'Tell me whether there is any correlation between what happens if that person is overweight and in terms of the score.' That's what we did with those millions and millions of data points. And sure enough, so now we call it the Raman database. Yeah, this is because the previous scanner uses what they call the Raman signal. It's a slightly different type of light technology, but nonetheless, it measures the same thing. We were able, we created a huge database. So this is where I stop and help you hopefully understand what AI is so you are going to be more intelligent. And when you bring out that word, okay, AI is the same thing as your brain except that it applies to a computer. All right? When you were born, you were born with a brain. Correct? How come you're not instantly clever? Your mother had to start teaching you and you had to listen to your parents before you start to talk, right? What was that? That was data input. Then your mom said you got to go to school and get educated. Well, what does that mean? More data into your brain. That's how you learn and that's how you became clever, right? You see, even a human brain is not instantly clever without data. Same thing with a computer. People can talk about AI till the cows come home or in Australia till the sheep come home. So, yeah, in a sense, right? You need data. We couldn't do it except now we could because we had that 20 years over there. So you can see the equation requires this bit just as much as it requires the light technology, and that's how we translated that value into a nutritional health. Right? We're able to understand what that means. That's the leap forward.

Okay. Still don't appreciate this translation, huh? Okay. I'm going to ask you again since you don't read the Bible. I know. Okay. You ever heard of the Rosetta Stone? Oh, yeah. Rosetta Stone, you know. Oh, next time when you go to London, go to the British Museum. They have this huge slab of stone right in the center of the museum. It's called the Rosetta Stone. I'll help you understand it. So, essentially a piece of stone, a slab if you will, that Napoleon recovered from Egypt. And there were three languages there. No, it was not Italian. The first language was hieroglyphics. The second one was I think they call it Demotic language or very old language. And the third one was ancient Greek that even scholars can read, right? They were all talking about the same exact subject. Until then, all those guys that walked into the Egyptian pyramids and they saw all those cartoons on the wall, they really thought they were cartoons. Cartoons, you know those funny looking things, the hieroglyphics. You see, they didn't mean anything. Just that those ancient Egyptians just loved to decorate their pyramids. No, it turned out because of this stone, the hieroglyphics is now obviously the Egyptian language 5,000 years ago. Unbelievable. Now we can truly appreciate what those ancient Egyptians were doing, you know, in addition to walking half naked. So, you know, this is what we did with the Prism insofar as that's what we did. The antioxidant, it's almost like hieroglyphic in a way, right? In a sense, we translate it to something that's really meaningful, and that is nutritional health. That's the Prism. That's the background. All right? But you see that little round thing. All right? So, that's the sequence you went through all the way. And why is nutritional health so important? Because it's really about healthy aging. So, it's a biomarker, if you will. When you guys go and see your doctor, all right, let's say you just go in for a physical, what does a doctor do to you? Take blood. Why does he need your blood? He's not Dracula. What, he sends it to the lab, isn't it? And he gets all the data back. Once again, he cannot diagnose you without data. It's the same thing here. We're helping to, not diagnose, but help people to understand and to learn about their nutritional health. That's the difference. And we do need data. And the Prism provides that.

Yeah. And this is just one of those slides. These are all the different universities actually using Prism now, if you will, to learn more about... their objective is obviously slightly different from ours, but nonetheless, they find the Prism to be useful in their clinical studies. Okay. All right. So this is another one that's interesting. It came out from one of those studies actually. If you look at the lady from the left versus the right, and we have their scores, that lady on the left is 230, which is fairly low. And the one on the right has a score of over 500, which is high. The age is about the same roughly. I think you would agree with me. The person on the right looks a bit younger. On the skin. Yeah. More full, whatever it is. Right. So what we have been able to do now, and here's another term that you may or may not have heard, is chronological age versus biological age. Maybe I would translate that a little bit. There are a lot of people going around saying, you know, '60 is the new 50 and 50 is the new 40.' You know, kind of thing. They're trying to tell you you look younger than what your actual age is. Your actual age is chronological, but the status of your body will determine how healthy and young you look. All right. So we are able to actually possibly predict from the Prism what your biological age is. That's a healthy agent. Ah, this is one. So as John helps to get Prism in Australia and so on, some of you are going to whine and moan. Okay. And that's because you would say, 'Well, the Prism is not that good because it's giving me different scores.' Yeah. There's a variation in it. All right. It's not that good. All right. From the outset, any biological marker will not stay exactly the same number or the same value. We know with our Prism, all things being equal, you have a margin of error, I call it, of about roughly 10%. You're okay on that side. It's a biological marker. All right? However, there are certain things you need to do to maintain that. And so, don't be like Nu Skin's CEO where he keeps his Prism in his pocket in his pants and he digs it out and he puts it on his left hand and starts measuring. Yeah. Okay. And then he comes and asks me, 'Joe, why is my score so different?' Because like any other person, yeah. I mean, you guys all own a TV. I bet none of you have ever read the TV instruction manual. You just switch it on and play with it, isn't it? Right. As long as Aussie rules football come on, you'll be fine. Right. So my CEO is the same way. So I had to go through some of the steps to explain the variation. And the most important thing is to make sure that you cover the probe, I call that the probe or the window, completely with your finger. All right? And try to put your device on a solid table or a base, not on the left hand like my CEO because you know you put it and it moves all over the place. It's sometimes difficult to control the complete coverage of the light. Second thing, make sure you clean the lens. I don't know where your finger has been. Clean your finger, too. Especially all the women. You guys put on makeup. Oh, yeah. You see, I don't even have to say. You already know foundation. You know what? Skin tone, color, right? You put it on and then you go measure. Come on. Clean that finger. So, that's the thing. It's important to clean the finger, too. And also on the probe, and don't clean with a Kleenex. No. Yeah. I've seen people just whip out a Kleenex and go, 'Good.' You know the Kleenex is rather rough. Use that microfiber cloth that comes... some of you may already do. You have a Prism. Some of you, yeah. It comes with a microfiber cloth, right? Use that. There's a reason why we include it. Yeah, you can wash it. But don't use it wet. Okay. Let it dry first. Yeah. You can wash it. There's a reason in there. Yeah. But don't use this as a Kleenex and sneeze on it and scalp the microfiber towel. Okay. So, use that. There's another thing that's provided in that place. What is that? No, no, no, don't. You didn't even know there's a compartment in there. Oh, no. You got this, right? That's your calibration disc. It's very simple. When you have your Prism connected to your iPhone or whatever, one side and then the other side, and you'll calibrate it. And try to calibrate it. I don't know. Like I say, my CEO keeps it in his pocket and he doesn't calibrate it. What else does he keep in his pocket? I have no idea. So, yeah, calibrate. That's very important to do that to make it more consistent. Yeah. So, those are the things that you cover. Oh, and sometimes the question is, 'Okay, I have a baby. I love to measure my baby, but the finger is so small. It's impossible to cover the whole probe.' Okay. Use the butt. You change diapers, right? So, put the whole butt on the device for the baby, for adults. Okay. I guarantee you will cover the Prism probe with a butt. Yeah, no problem. Yeah, that tells you another thing too, isn't it? Insofar as it doesn't need to be the forefinger. You could be the thumb as well. So, you can use the thumb, but stick with that. You guys, I know all my leaders very well. You guys like to play with it. It's our fault to make it so portable. I told the guys at Pro, I said, 'Look, our leaders are going to mess around with it. Guarantee here, there, there. Use it to measure their pets, everything.' Yeah. The part that has no hair. Go and look at... Do you have a dog? Oh, you don't have a dog. Who has a dog? No. They like to put it on the underbelly. Yeah. But sometimes they put it close to areas that are not quite clean and they don't clean. Oh, I don't know. Anyway, so you guys know what to do. Yeah. In that sense. So make sure that's these three steps. I call them the three Ps. They're rather important for all of you to remember, if you will.

And back to a little bit to your business connection. This is not the end game. What do you think you're trying to achieve with this? You're trying to get that individual to supplement. So use a product. They have quite a few. LifePak. I don't know what I would say. Maybe I would say, yeah. Yes. You have these kinds of products. Guaranteed, right? Guarantee. I think they come with a LifePak. It comes with a guarantee, money back. So, and it covers all the way from skin health to nutritional deficiency and so on. You got that, the LifePak. I won't go through all of them. G3. Yeah, we got that too. We can do that. ageLOC Yspan obviously is our ageLOC product. Yeah. BeautyFocus Collagen+. Yes. Okay. All of you know about it. It's sort of... this another one. It's sort of interesting. It reminds me to say, well, there are obviously competitive collagen products around. Yeah. Even here in Australia and so on. Our collagen is not your mother's collagen. Our collagen is not the same as the collagen that many of our competitors are using. It's a very special, unique peptide that we discovered through experimentation that actually gets delivered to the skin, and that's the only way to get a collagen peptide to help you improve collagen production. Okay. And then when you think about it, you are still going to live in your same environment. Nothing has changed. That environment has destroyed significantly some of your original collagen. Why do you think the new collagen that's being made is not going to be similarly destroyed or degraded? It will. So, we added a second ingredient. And the second ingredient is a specific skin antioxidant that covers up all the new collagen that is made so that it is protected from the Australian sun. Build, protect. Many of our competitors don't do that. And then what's the third thing? Hydrate. Every single dermatologist in the world would tell you, you want healthy skin, moisturize, moisturize, moisturize. And what did we do? We added the third ingredient, which is a natural sponge, if you will, under the skin that will hold on to the water. So, it's an underwater, you know, sponge. So, you can keep your skin hydrated. That's the difference with our collagen product, right? ageLOC Tru Face Essence Ultra, you've gone through that, and here's the thing, right? With ageLOC Tru Face Essence Ultra, you actually have an equivalent scanner that in terms of monitoring your weight loss, you get on the scale, isn't it? So, you can monitor that. But what is actually more profound, if you will, and that actually has longer-term benefits by losing weight is not just a visual benefit. It actually benefits the body in a healthy manner. And now you can show people with the Prism how that is happening. So it's not just about weight, it's about improved nutrition too. Is it a complementary thing? It's not about distracting any of you, right? If you're really good with ageLOC Tru Face Essence Ultra as a sponsoring product, if you will, this adds to it. It doesn't detract from it. So, we are the Starbucks really. I mean, I don't know whether you guys are as good as the Melbourneians. They consider they're the best coffee in the world. Are you guys any good? Probably not. Well, yeah. So, yeah. Anyway, you know, coffee. In a sense that Starbucks, the reason why it's so successful, it's not really about a coffee. It is about the ritual. That's why they have Wi-Fi. When you open a Starbucks store, yeah, you go in there, you sort of become an experience. Yeah. You order a coffee, but at the end of the day it's a means to an end. So what you're doing with Prism, if you will, is a way, you know, you're selling a daily ritual. And in this instance, that's a nutrition, right? Think about it. So I will come back to this. You scan, you get the data, and with the data, you provide a solution. That's what our products offer, a solution. Yeah, this new Biome too.

All right, I want to go through this comparison. All right. I'm going to end with this. So, why don't... coming back, fitness, all these things. I've told you how we managed to correlate all those things. Oh, by the way, so that was a book. I have a new edition that they forced me to write. And so anyway, it includes the new science and everything. It brings the ageLOC story. But I really want to end with this in a sense. It's a very... most of the Chinese folks would appreciate this one. It's a very famous Chinese story. It comes from the Romance of the Three Kingdoms, three, four thousand years ago. Yeah. China wasn't obviously a unified country. It was basically three different warring kingdoms. Yeah. But they had one of the kingdoms had a very famous strategist, if you will. His name is Zhuge Liang. And he was very good. He got all his soldiers recruited, trained them well, provided them with really good bow and arrows, the weapons and so on, built great ships to take them to war and so on. He was ready. All right. He's got all his stuff ready. Why? He then said, 'Everything is ready except for the east wind.' This is a very famous Chinese saying insofar as say you can prepare everything that you want but you cannot sail to your battle if there is no east wind, if it doesn't blow. Okay. And when I think about this, fundamentally it comes down to this Nu Skin way back, well, 40 minutes ago or something. I told you Nu Skin is a company for you, by you, with you. If you aggregate all of that together, what it tells me if I use this story is that nothing moves in Nu Skin because you are the east wind. Got it? The Prism is all these things we have done, but it will not perform if there is no east wind, and in my opinion, the east wind can only originate from the collective power of all of you. If you don't blow, nothing happens. So hopefully, you know, you're sitting here tonight listening and all that kind of stuff. So, you know, John needs all of you. So yeah, and hopefully we will have a chance to really celebrate the success with all of you, and I've shared some information that could be of value to all of you. Thank you.