2004 WFDSA Direct Selling Company Survey Research Deck Taiwan 2018年11月23日星期五 2004 WFDSA Direct Selling Company Survey Research Deck Taiwan Prepared by EY Quantitative Economics and Statistics (QUEST) Group FOR INTERNAL USE ONLY

2018年11月23日星期五 Introduction Objective: This survey aims to measure the economic impact of the direct selling industry in Taiwan. Ernst & Young was commissioned jointly by the World Federation of Direct Selling Associations (WFDSA) and the Taiwan Direct Selling Association (TDSA) to conduct the survey. The survey questionnaires were sent out to all 28 member companies of TDSA. The survey asks about matters such as sales, organization, investment, and charitable activity. Twenty company surveys were returned for a 71 percent response rate. To protect companies’ confidentiality, only questions that have more than 5 responses were reported in this research deck. 2018年11月23日星期五 FOR INTERNAL USE ONLY

Estimated Retail Sales Estimated Retail Sales (in NT $*) Percent of Companies Less than 200 Million 16.7 200 Million to 500 Million 11.1 500 Million to 1 Billion 33.3 1Billion to 5 Billion More than 5 Billion 5.6 Total 100.0 * Unless stated otherwise, all currency in this research deck are stated in Taiwan New Dollars 2018年11月23日星期五

Estimated Retail Sales by Product Categories Percent of Companies That Sell the Products  Percent of Companies That Specialize in the Product* Personal Care Products, such as cosmetics, ladies and children’s clothes and etc. 94.4 11.1 Food Products 5.6 Health Products, such as nutritional supplements and other products 83.3 38.9 Household Products, such as kitchenware, home and car cleaning and etc. 44.4 0.0 Family Related Products, such as books, toys, scrap booking and etc. 22.2 Service Products, such as telecom and other services Other *: more than 80% of its retail sales is from that category 2018年11月23日星期五

Organizational Structure Categories   Percent of Companies Affiliation with Other Company Affiliated with other company 29.4 Is a subsidiary of another company 24.5 Other 4.9 Not Affiliated with other company 70.6 Total 100.0 Compensation System Single Level 5.6 Multiple Level 94.4 2018年11月23日星期五

Average Commissions by Size of Direct Selling Companies 2018年11月23日星期五 Average Commissions by Size of Direct Selling Companies  Number of Direct Sellers Percent of Responded Companies Average Commissions (in thousand) Less than 6,000 22.2 $ 30.0 6,000 to 29,999 55.6 $ 20.1 30,000 to 99,999 16.7 $ 18.8 More than 100,000 5.6 $ 8.4 Total 100.0 -- 2018年11月23日星期五 FOR INTERNAL USE ONLY

Number of Employees Involved in Non-Sales and Their Average Wages 2018年11月23日星期五

Expenses in 2003 by Activities 2018年11月23日星期五

Training Expenses in 2003 2018年11月23日星期五 Percent of Companies Training Expenses in 2003 ($NTD) For Own Employee For Direct Sellers 1 to 1,000 7.7 0.0 1,000 to 100,000 23.1 7.1 100,000 to 1 million 38.5 28.6 1 million to 10 million 30.8 57.1 More than 10 million Total 100 2018年11月23日星期五

Capital Investment 2018年11月23日星期五 Percent of Companies   Percent of Companies Capital Investments In 2001 In 2002 In 2003 Less than 1 Million 50.0 20.0 1 Million to 20 Million 40.0 60.0 More than 20 Million 10.0 Total 100.0 Average Investment (million) $ 4.8 $3.6 $16.9 2018年11月23日星期五

Tax Paid in 2003 2018年11月23日星期五 Tax Paid in 2003 Average Amount ($NTD) Corporate income taxes: $ 22,212,448 Social security: $ 4,044,332 Import duties: $ 58,555,479 Indirect taxes (VAT): $ 35,554,579 State and Local Taxes: $ 4,479,623 Property Taxes: $ 369,059 Other Taxes: $ 1,324,057 License Fees: $ - 2018年11月23日星期五