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AMWAY MOVING FORWARD

AMWAY MOVING FORWARD. Luke Nieuwenhuis Global Strategic Planning. GGC 2012 – Focus. Enterprise Strategic Direction Enabling Sustained Distributor Success The Many Facets of Inspired Leadership. GLOBAL STRATEGIC PLANNING PRIORITIES. Strategic Alignment Balanced Growth

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AMWAY MOVING FORWARD

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  1. AMWAY MOVING FORWARD Luke Nieuwenhuis Global Strategic Planning

  2. GGC 2012 – Focus • Enterprise Strategic Direction • Enabling Sustained Distributor Success • The Many Facets of Inspired Leadership

  3. GLOBAL STRATEGIC PLANNING PRIORITIES • Strategic Alignment • Balanced Growth • Enterprise Operating Model

  4. STRATEGIC ALIGNMENT –OUR FRAMEWORK Vision & Purpose: What we seek to do Values: What we believe and how we behave GTI Strategy: Roadmap for sustained growth Strategy Statement: Our competitive game plan Strategic Pillars: Building blocks to create alignment Market & Functional Plans: Clarify strategies and implementation Operating Model: Optimizing how we work as a global enterprise Operating Principles: Guide how we design the operating model Measures: Specific, aligned outcomes of our progress

  5. GTI: 2012 KEY INITIATIVES • Business Opportunity • Implement the business opportunity marketing plan • Optimize the 4 levers of the compensation plan • Training to build distributor competencies • Distributor, Customer, Consumer Experience • Enabling Technology – Digital tools • Segment engagement strategies: Leaders, new distributors, GenY • Increased investment in Go-To Market strategies • Products & Brand Management • Successfully launch eSpring in China • Global launch of All-Plant Protein Powder • Artistry Restage • Business Excellence • Enterprise Strategic Operating Model • Focus on Supply Chain 2012 SOM initiatives • Human Capital Planning

  6. ENTERPRISE SOM Sales/DR GREATER CHINA ASIA PACIFIC EUROPE, INDIA & AFRICA AMERICAS MARKETING HR SUPPLY CHAIN GLOBAL STRATEGY LEGAL R&D IT FINANCE

  7. GTI: KEY BUSINESS INDICATORS 2010 Actual 2011 Proj. 2012 Proj. 2010 Actual 2011 Proj. 2012 Proj. Distributor Renewal Enterprise Sales $9.6B $10.9B $11.7B 50.8% 52.4% 53.5% Operating Income % Productivity $1079 $1179 $1220 16.5% 16.4% 16.4% Direct Selling Sales $9.0B $11.0B $10.3B 4.09M 4.13M 4.23M Sponsoring Engagement 57.6% 57.5% 58.0% 9.7% 11.0% Market Share 10.4% Engagement Count 5.1M 5.2M 5.3M 27% Net Favorability 32% 35%

  8. 1991 Last time ALL Amway top ten markets experienced growth during the same year

  9. GROWTH PAST, PRESENT & FUTURE Market Sales Sales from New Markets (1990-Present) Sales from Mature Markets (Prior to 1990) $13B $10.4B $7.8B Distr Cost $5.2B $2.6B Actual Projected 1966 1991 2007 2014 Year

  10. Projected Enterprise Sales by LRBP Period LRBP 2012-2014 LRBP 2011-2013 LRBP 2010-2012 $16B 13.5 $14B 12.4 11.7 11.8 $12B 10.8 10.2 10.4 $10B 9.9 9.5 $8B All sales figures are presented in 2011 exchange rates 2010 2011 2012 2013 2014

  11. 1 During this LRBP, Amway is projected to become the world’s largest direct selling company

  12. GTI Taking the long view. 2

  13. GTI: A CHANGING WORLD By the end of the next decade, the part-time workforce will grow to about 40% of the employee market. 7 in 10Consumers in emerging markets would take action to support social purpose brands. 40% India has the largest GenY population in the world. Rising from corners of the globe are 42 economically energized pockets of growth that we call “emerging markets”. 2 500 Facebook has overmillion active users who spend over 700 billion minutes per month on the site. In an increasingly transparent world, 70% trust consumer opinions online, while 90% trust their network of friends.

  14. GTI: A CHANGING WORLD How well placed is Amway to succeed? How can we best support our business owners in an uncertain world? 2

  15. GTI: 10 Year Plan • Understand the drivers of change that impact Amway and our distributors • Develop greater clarity in Amway’s strategic choices • Refine framework for strategy development within our pillars • Validate (or challenge) existing long-term plans

  16. GTI Taking the long view. 2

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