Financial health of Young Living Lettter

Dear Young Living Distributor:

Recently, rumors have been spread concerning the financial health of Young Living. Almost always, these
statements are made without knowledge of the truth, due to the simple fact that Young Living is a privately
held enterprise. Publicly held companies are required by the Securities and Exchange Commission to disclose financial information to the public. Privately held companies are under no such obligation, and for a number of business and personal reasons, they rarely disclose their financial information to the public.
We do not know how these false rumors originate, and normally we do not comment on rumors or other
unsubstantiated claims. However, due to the persistent nature of these fabrications and to formally state the
facts, we have chosen to voluntarily share with you, our distributors and friends, some of our fundamental
financial information.

Young Living is a financially sound company. Since 2004 we have been consistently profitable. Our cash
and working capital balances are robust and enable us to self-fund our current growth and global expansion.
We believe that our financial health would be the envy of many other companies in our industry. Our strong
financial health and history helps ensure that we will be able to continue our amazing growth and support of
all our distributors and customers that depend on us to bring pure therapeutic-grade essential oils and related
products into their homes and lives.

The following financial ratios are often used by financial analysts to gauge a company’s financial health. To
provide a reference point for our ratios, we selected a few publicly traded companies in our industry that are
fairly well known and established. We invite you to compare this same information to that of any other publicly traded company.

The ratios below are derived from the 2013 1st quarter financials of each company, which is the most current
information available. The performance ratios are computed based on net income before tax expense to make the ratios comparable. Please refer to the definition below of each ratio to understand how it is computed, as
there are many different variations of these ratios.
Young Living Nature’s Sunshine NuSkin Mannatech Avon

Liquidity Ratio:

Current Ratio 1.69 2.43 1.72 1.46 1.46
Performance Ratios:
Return on Assets (ROA) 0.16 0.15 0.27 0.09 0.01
Return on Equity (ROE) 0.26 0.24 0.54 0.21 0.09
Debt Ratio: 0.41 0.39 0.49 0.57 0.84
Debt to Equity Ratio 0.69 0.65 0.96 1.32 5.34
Assets Turnover 2.80 1.97 1.82 3.62 1.31

3125 Executive Parkway, Lehi, UT 84043 • Tel: 801.418.8900 • youngliving.com

Definitions
Current Ratio – Current Assets/Current Liabilities. A measure of general liquidity that is most widely used to
make the analysis for the short-term financial position or liquidity of a firm. Higher is generally better.

Return on Assets (ROA) – Annualized Net Income before Tax/Total Assets. An indicator of how effective the company is at turning a profit with its assets. Higher is generally better.

Return on Equity (ROE) – Annualized Net Income before Tax/Total Equity on March 31, 2013. An indicator of how effective the company is at rewarding its shareholders. Higher is generally better.

Debt Ratio – Total Liabilities/Total Assets. Indicates the percentage of assets that are acquired with debt.

Lower is generally better for long-term financial stability and health.

Debt to Equity Ratio – Total Liabilities/Total Shareholder’s Equity. A measure of how much debt versus equity the company is using to finance its assets. Lower is generally better for long-term financial stability and health.

Asset Turnover – Annualized Revenue/Total Assets. This measures the amount of sales generated for every dollar of assets. Higher is generally better.

In conclusion, we are proud of Young Living’s history and are anxious to be part of its future. Young Living is a remarkable company driven by incredible distributors and founders. Our products, which are second to none, speak for themselves. As a company, we are experiencing record-setting growth. To read a press release on Young Living’s explosive growth, please go to the following link: http://www.youngliving.com/en_US/news/newsArticles/189-young-living-announces-record-growth.html.

This type of growth is usually reserved for smaller companies who are new-market entrants and rarely
experienced by companies who have been the leader in the market as long as we have been. We have built a
very sound financial structure that is equal to or better than that of long-standing, successful companies in and
outside of our industry. We let our numbers and our continued success speak for themselves.

Regards,

D. Gary Young   Founder and CEO
Travis Ogden     Chief Operating Officer
Kevin Pace        Chief Financial Officer