Medicinal and Therapeutic Usage Commercial Production What Makes an Oil Impure • • • • • • Enhancement of Compounds Removal of Compounds Addition of Compounds Synthetic Variants Impurities Blending With Inferior Grades Of Oil Certified Pure Therapeutic Grade™ Sourcing • Habitat • Cultivation • Extraction Chemical Analysis Organoleptic MicroBiological Heavy Metal Gas Chromatography • Mass Spectrometry • FTIR • • • • Indigenous Plants From Around the World Organoleptic Evaluation Evaluation of the Essential Oils Physical and Aromatic Properties Overall Appearance Color Flavor Odor Microbiological Evaluation Evaluation of the Essential Oils Physical and Aromatic Properties Total Plate Count Total Coliforms Bacteria Salmonella Yeast and Mold Shelf Life Testing Heavy Metal Testing Graphite Furnace Atomic Absorption Heavy Metals Inhibit Plants in the Following Ways • • • • Inhibits Growth Structure Damage Biological Activity Reduction Biochemical Alteration and Loss of Plant Function FT-IR (Fourier Transform Infrared Spectrophotometer) Gas Chromatograph / Mass Spectrometer Gas Chromatography Separates the Sample Into Individual Components and Plots the Results on a Graph Shown as Peaks Mass Spectrometry Accurately Identifies the Components, Their Percent Value and Determines Origin 100% Pure NO Pesticides NO Fragrances NO Diluting Agents NO Solvents Nothing Artificial dōTERRA is Defining and Protecting the Quality of Essential Oils for the Benefit of the World Certified Pure Therapeutic Grade™ They Work! Only from We at dōTERRA are committed to sharing the life-enhancing benefits of therapeutic-grade essential oils and essential oil enhanced wellness products with the world. Our mission as a company is to teach people to live more healthy, productive lives and to share with others the blessing of a lifetime of wellness. Why dōTERRA? dōTERRA Sales Growth since inception through Q1 2013 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 U.S. Sales in April as a percent of total company Sales 2010: 2011: 2012: 2013: 84.2% 78.8% 72.4% 75.0% Growth in mo. ordering IPCs in largest international markets Taiwan Japan Australia Growth in mo. ordering IPCs in the U.S. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Therapeutic-grade essential oils— a natural healthcare company. Certified Pure Therapeutic Grade © 2012 dōTERRA Holdings, LLC, Unauthorized duplication prohibited Retention Facts Fact #1: After 5 years of business, 80% of IPCs that have enrolled are still “active.” Fact #2: Of those that are “active,” 55% placed an order last month. Fact #3: When considering IPCs who have placed orders within the last three months, more than 60% of all IPCs are “retained.” Fact #4: In the past year, retention is increasing! What does this growth mean to the Company? 1. We are hiring new employees. Headline: 2. We are building new facilities. Certified Pure Therapeutic Grade © 2013 dōTERRA Holdings, LLC, Unauthorized duplication prohibited 3. We are investing in inventory. 2012 Company Profits 100% Income Taxes Inventory (40%) (52%) Balance 8% 4. We are increasing production capacity? 2011: • Outsourced to a third party • 300,000 bottles/month • 600 square meters • Mostly a manual process Certified Pure Therapeutic Grade © 2013 dōTERRA Holdings, LLC, Unauthorized duplication prohibited 4. We are increasing our production capacity. 2013: • Owned by dōTERRA • 3 million bottles per month • Nearly 5,000 square meters • Installation of 2 Rota Machines • Custom Designed • Made in Germany • Pharmaceutical Grade • Fills to within .001 ml. Certified Pure Therapeutic Grade © 2013 dōTERRA Holdings, LLC, Unauthorized duplication prohibited 5. We are becoming more effective/efficient. 6. We are expanding internationally. dōTERRA COMPENSATION PLAN PAYOUT September 2012 Rank Silver Gold Platinum Diamond Blue Diamond Presidential Diamond Lowest Highest Average $825 $1,186 $1,671 $6,266 $21,641 $13,000 $1,447 $16,470 $3,628 $41,253 $7,935 $37,385 $13,975 $99,990 $45,310 $48,318 $108,370 $65,459 dōTERRA COMPENSATION PLAN PAYOUT Rank in Months Silver Gold Platinum Diamond Blue Diamond Presidential Diamond Average Most Common 13 14.5 23 23 31 3 5 20 23 33 37 n/a Certified Pure Therapeutic Grade © 2013 dōTERRA Holdings, LLC, Unauthorized duplication prohibited