1. Presenter Name | Date Why Wellness? Why Now? Principal Wellness Company

2. Why Wellness Costs Follow Risks Unhealthy Behavior Physical inactivity, poor eating habits, tobacco use, unmanaged stress Health Risks Obesity, high blood pressure, elevated cholesterol and blood sugar Chronic Disease Diabetes, heart disease, hypertension, stroke Costs Healthcare, short-term disability, worker’s compensation, productivity

3. 1 Northwestern University (2011, November 16). U.S. population on track to getting even fatter. ScienceDaily. Retrieved November 19, 2011, from http://www.sciencedaily.com­ /releases/2011/11/111116132920.htm 2 Institute of Medicine of the National Academies - Population-Based Policy and Systems Change Approach to Prevent and Control Hypertension, Report Brief February 2010. 3 Heart Disease and Stroke Prevention Addressing the Nation's Leading Killers: At A Glance 2011 http://www.cdc.gov/chronicdisease/resourc es/publications/AAG/dhdsp.htm Why Wellness The Current U.S. Landscape Chronic Diseases

4. Why Wellness How Healthy Are Your Employees?

5. Almost 10 Percent of U.S. Medical Costs Tied to Obesity, Health Day News, viewed November 28,2011 Healthy $3,400 in medical costs $700 in prescription drugs Obese $4,870 in medical costs $1,300 in prescription drugs Why Wellness How Obesity Affects Medical Costs 41% more on medical costs80% more on prescription drugs

6. Lost productivity costlier than health care spending One of the largest costs Presenteeism –Time an employee is at work but unproductive Lost concentration Repetitive tasks Working at slow pace Nothing accomplished Eric A. Finkelstein, Marco daCosta DiBonaventura, Somali M. Burgess, Brent C. Hale. The Costs of Obesity in the Workplace. Journal of Occupational and Environmental Medicine, 2010; 52 (9) DOI: http://www.sciencedaily.com/releases/2010/10/101008082923.htm Women Presenteeism Medical expenditures and absenteeism Why Wellness How Obesity Affects Productivity Men 56% 44% 32% 68%

7. By 2020 are expected to be overweight or obese 1 1 Northwestern University (2011, November 16). U.S. population on track to getting even fatter. ScienceDaily. Retrieved November 23, 2011, from http://www.sciencedaily.com­/releases/2011/11/111116132920.htm Why Wellness Our Projected Future 72% of women 83% of men

8. For every $1 a healthy employee spends http://www.diabetes.org/advocate/resources/cost-of-diabetes.html Why Wellness How Diabetes Affects Health Care Healthy An employee with diabetes will spend $2.30 Diabetic

9. 1 Northwestern University (2011, November 16). U.S. population on track to getting even fatter. ScienceDaily. Retrieved November 23, 2011, from http://www.sciencedaily.com­ /releases/2011/11/111116132920.htm 2 http://www.cdc.gov/media/pre ssrel/2010/r101022.html Why Wellness Our Projected Future 53% of women Pre-diabetes or diabetes 1 1 in 3 adults expected to have diabetes 2 77% of men Pre-diabetes or diabetes 1 By 2020By 2050

10. Why Wellness What Does This Mean to You? Lost Productivity Added Costs Lost Revenue + =

11. Why Now Why Wellness and Why Now? Without wellness Decreases low-risk group Increases moderate- and high-risk groups More low-risk stay low-risk More moderate- and high-risk improve their health With wellness

12. Why Now Client Case Study After First Year

13. 1 Workplace Wellness Programs can Generate Savings, Health Affairs, February 2010. http://content.healthaffairs.org/content/29/2/304.abstract Why Now Cost Benefits

14. Why Principal Why Principal Wellness Company? Our solution is: SimpleEngagingEffective

15. What Does This Mean to You? Why Principal Turnkey solutions help create a culture of wellness Step-by-step guidance and tools Year-round wellness focus Program strategies that are easy to implement Organizational and individual activities that complement your corporate culture Touch points are personalized, simple and fun Monthly campaigns, seminars and challenges Awareness Education Engagement

16. Principal Wellness Company does not diagnose or treat any medical condition or provide medical advice. Results obtained from program participation depend upon health status and how the information provided is applied. Wellness and wellness incentive programs are subject regulation under federal and state law. Principal Wellness Company does not give legal advice. Consult with your legal advisor regarding the design of any wellness or incentive program. Savings and health improvement are not guaranteed. GP59002-02 | 01/2012 | ©2012 Principal Financial Services, Inc. WE’LL GIVE YOU AN EDGE ®