COVER RATIONALE

The cover is a tribute to the new Amway Headquarters which is a physical manifestation of the continuous commitment that the Amway brand brings to Malaysians. At the heart of Amway is truly this commitment which in turn, creates a positive rippling effect that also underpins Amways new visual identity.

CONTENTS

2 3 4 8 12 12 14 18 26 28 35 42 44

Five Year Financial Highlights Quarterly Performance Chairmans Statement Penyata Pengerusi Board of Directors Corporate Information Prole of Directors Operations Review Corporate Responsibility Statement on Corporate Governance Audit Committee Report Statement on Internal Control Compliance with Main Market Listing Requirements of Bursa Malaysia Securities Berhad Directors Report Statement by Directors Statutory Declaration Independent Auditors Report to the members of Amway (Malaysia) Holdings Berhad Income Statements Balance Sheets Statements of Changes in Equity Cash Flow Statements Notes to the Financial Statements Particulars of Properties Groups Physical Presence Disclosure of Recurrent Related Party Transactions Notice of Annual General Meeting Statement Accompanying Notice of Fifteenth Annual General Meeting Analysis of Shareholdings Information For Shareholders on Fifteenth Annual General Meeting Proxy Form Appendix I

45 48 48 49 50 51 52 53 55 84 85 86 87 89 91 94

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

FIVE YEAR FINANCIAL HIGHLIGHTS

Sales Revenue
(RM Million)

Prot Before Taxation

(RM Million)

Net Prot
(RM Million)

150 800 700 600 500 400 300 200

100

95 88 81

724 645 584 507

135

664

120 105 90 75 60 45 30 15 0

112

120

129

90 80

99

70 60 50 40 30 20 10 0

73
52

73

ANNUAL REPORT 2009

100 0

05

06

07

08

09

05

06

07

08

09

05

06

07

08

09

Net Earnings Per Share

(Sen)

Net Dividend Per Share

(Sen)

Core Distributor Force

(In Thousand)

60 55 50 45 40 35 30 25 20 15 10 5 0

57.8 53.5 49.0

50 45 40 35 30 25 20 15 10 5 0

48.0
46.1 41.4 36.0 41.8

225 200 175 150 125 100 75 50 25

44.1
31.6

165

177

188

195

208

05

06

07

08

09

05

06

07

08

09

05

06*

07

08

09

2005 2006

Results for nancial year ended 31 August Results for the 16-month period from 1 September 2005 to 31 December 2006 2007 - 2009 Results for nancial years ended 31 December
*Results for a 12-month period from 1 January 2006 to 31 December 2006

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

QUARTERLY PERFORMANCE

2009
1st Quarter Sales Revenue (RM Million) Prot Before Taxation (RM Million) Net Prot (RM Million) Net Earnings Per Share (Sen) Net Dividend Per Share (Sen) 163.8 26.0 19.4 11.8 7.0 2nd Quarter 153.3 22.2 16.2 9.9 7.0 3rd Quarter 174.9 28.4 20.5 12.4 27.0 4th Quarter 171.9 22.3 16.4 10.0 7.0 Full Year 663.9 98.9 72.5 44.1 48.0

2008
1st Quarter Sales Revenue (RM Million) Prot Before Taxation (RM Million) Net Prot (RM Million) Net Earnings Per Share (Sen) Net Dividend Per Share (Sen) 144.8 28.3 21.0 12.8 6.7 2nd Quarter 143.2 29.4 21.8 13.2 6.7 3rd Quarter 185.7 41.3 30.4 18.5 21.4 4th Quarter 171.8 30.3 21.9 13.3 7.0 Full Year 645.5 129.3 95.1 57.8 41.8

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

CHAIRMANS STATEMENT
Dear shareholders,

NUTRI FIBRE BLEND

That the year 2009 was a difcult year leaves no doubt in anyones mind. The global es economic crisis which brought global growth to a grinding halt had left most economies reeling in the wake of its onslaught. Malaysia was not spared and the country suffered o its rst recession in a decade. Against this backdrop, I would like to report that Amway d (Malaysia) Holdings Berhad bucked the prevailing trend and turned in another year of ess commendable growth in sales revenue. With a compelling business opportunity that nstrated enables people to supplement their income, the Group has demonstrated a resilience in navigating the economic downturn and staying the course.

FINANCIAL PERFORMANCE
Demonstrating the control that we have always had in steering the performance of the Group, we undertook several new initiatives and continued some key strategies from the previous year to ensure that we took advantage of these periods of adversity and turned them into moments of opportunity that will further strengthen the Groups position. The added cost to the Group was an investment which underpinned a longterm strategy to ensure its sustainability. Therefore, while the Groups sales revenue achieved a commendable 3% growth to reach RM663.9 million against the previous years RM645.5 million, prot before tax decreased 23.5% from RM129.2 million in 2008 to RM98.9 million in 2009. Prot after tax also declined 23.7% from RM95.1 million the previous year to RM72.5 million in 2009. One of the reasons for the lower protability was the unfavourable exchange rate of the ringgit against the US Dollar. The lower interest rate climate in the country also impacted the Groups interest income and with higher bank charges coming into play for the year in review with the acceptance of all credit cards since August

2008, the lower protability was not unanticipated. Although the Group was cognizant of the pressure these external factors had on the margin, we strongly felt the need to support the business further to leverage on initiatives which had showed early signs of success and which had the potential to take the business to another level. Therefore, the investments to increase consumer access by opening more Amway shops and enhance greater awareness for Amways business opportunity through a major advertising campaign were strategically planned with a lot of foresight for the future growth of the business.

OPERATIONAL OVERVIEW
The year in review saw the Group aggressively reinvesting in the business to help Distributors increase their sales and sponsoring. At a time when most companies were tightening or cutting back on expenses, we invested signicant amounts into incentive programmes, new product introductions, attractive product promotions, enhancing access to our products and strengthening our brand appeal. A major corporate highlight for 2009 was the completion of the new Amway Headquarters which saw the relocation to premises that were three times the size of its previous Headquarters. Located just a few doors from its previous place, the new Headquarters promises to be an excellent sponsorship tool for Distributors excited at reiterating the Groups long-term commitment to the business in Malaysia. The new Headquarters, with better and improved facilities such as a Training Centre, a shop facility, larger warehouse space with a technologically-efcient Digital Picking System and a soonto-be-ready Brand Centre, is poised to be the catalyst for the Groups future growth.

ANNUAL REPORT 2009

DIVIDEND
In line with the Companys desire to consistently return surplus earnings to its shareholders in an orderly and systematic manner, your Board of Directors is recommending a 4th interim single tier dividend of 7 sen net per share, subsequent to the balance sheet date. Taken together with the interim and special dividends declared earlier in the year, the total dividend for the nancial year ended 31st December 2009 amounts to 48 sen net per share. The total net dividend payout of RM78.9 million will translate into a net yield of 6.7%.

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

LOCAL WORKING DIAMOND FORUM

C Complementing the story of th the new Headquarters is the a additional four more Amway c concept shops which opened to enthusiastic response from A Amway Distributors in Bintulu, P Penang, Klang and Wangsa M Maju. For them and the G Group, the shops will serve to b bring our products and business o opportunity closer to prospects a and customers who can now e experience the products and A Amway brand conveniently and e easily. F Fueled by six new product in introductions in the year under re review, retailing activities h helped to spur sales revenue g growth. The Nutri Fibre Blend fr from the NUTRILITE range of h health food supplements was th the years runaway hit with th the Distributors, chalking up a almost 40% of the sales revenue th that was contributed by new p product launches. These and th the wide portfolio of products u under the Amway stable of b brands and the other category o of locally-sourced products o offered through the Personal S Shoppers Catalogue continued to provide unparalleled retailing o opportunities for Amway D Distributors. 2 2009 also marked the 50th A Anniversary of Amway In International Inc which was fo founded in 1959 by Richard D DeVos and the late Jay Van Andel in the United States of America. T The celebrations culminated in a Global Diamond Invitational g gathering in Las Vegas with the a attendance of high-achievers fr from 30 countries where Amway

International Inc has a presence. From Malaysia, the participation of 170 Diamonds personied the success of the Amway brand in Malaysia and demonstrated the resilience of the products and business opportunity even after 33 years in Malaysia. Apart from the 50th Anniversary celebrations, the Sales Incentive Programmes (SIP) and NonCash Awards (NCA) were key drivers of qualication and new applications which led to a 5.8% increase in the Core Distributor Force to more than 208,000. This is an encouraging reection that Amway remains a compelling proposition for an increasing number of Malaysians. A major Amway Branding Campaign which kicked-off with an intensive and targeted series of print and television advertisements towards the end of the year in review going into the next had also set the stage for a rejuvenated perception for the Amway brand name. Targeted at raising greater awareness, the Amway Branding Campaign is also aimed at supporting recruitment efforts by Distributors.

CORPORATE GOVERNANCE
As a public-listed company, we remain keenly aware of the continuing need to create value for our shareholders. During the year in review, our ability to create such value through good corporate governance and efcient management has been acknowledged through our inclusion in the top 100 public-listed companies in the Malaysian Corporate

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

CHAIRMANS STATEMENT
HAPPY HEALTHY WARDS PROJECT

Governance Index 2009. To be included in the Index, a company is required to have good scores on various dimensions including compliance with market regulations, nancial performance, corporate social responsibility and quality of disclosures in the Annual Report, company website as well as practices. Your Board of Directors has also demonstrated a clear commitment to the Company through their professional conduct and attendance at Board meetings. As members of the various Sub-Committees, they have provided invaluable input to ensure that the Company practices the highest level of accountability and responsibility to shareholders.

manufactured without chemicals that are harmful to the environment. The Group has always understood that corporate responsibility means addressing the expectations of its various stakeholders in managing our business responsibly and sensitively for long-term success and sustainable development. We have in place, Rules of Conduct to guide Amway Distributors as they build their business. Our product range reects our concern for the environment as they are developed not only to provide consumers with exceptional value but underpinned by an effort to minimise impact on the environment. Amways Home Care products contain biodegradable surfactants while our aerosol products have no Chlorouorocarbons (CFCs). NUTRILITE products are manufactured using produce from our very own organic farms which comply with strict guidelines on responsible management of natural resources. Environmental consciousness also played a part in inuencing the design and interior furnishing of our new Headquarters with sustainable features such as energy-efcient air-conditioning and the maximisation of natural light with its oor to ceiling windows.

ANNUAL REPORT 2009

Our community relations thrust continued to shape our philanthropic commitment to children who are at risk of suffering emotional stress, low resilience to adversity and even anxiety or depression. Through our One By One Campaign for Children in 2009, the Group refurbished another hospital as part of its Happy Healthy Wards project aimed at softening the impact of a clinical environment on recovering children in hospitals. This project also provided the platform for Amway Distributors and staff to organise cheer activities, bringing light relief to children who are already emotionallyweighed down by life-long illnesses.

CORPORATE RESPONSIBILITY
The practice of being a responsible corporate citizen has long been an integral part of the Groups make-up, even from the time the rst AMWAY product was launched. L.O.C today retains its afrmation for environmental sustainability through its legacy of being

OUTLOOK
In this time of uncertain economic conditions domestically and around the world, we are keeping a very close watch on any signs of change and are prepared to meet the challenges they bring. Our prudent nancial approach has served us well and will continue to do so. We are condent that Amway is well-positioned from

NUTRILITE CH BALANCE

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

NUTRILITE 75TH ANNIVERSARY SUPERTOUR

ARTISTRY

essentials

for Amway given the right marketing strategies and products. With another three p more Amway shops slated to m open in 2010, we would also op have hav strengthened our presence, enhanced brand visibility and enh brought our products and bro business opportunity closer to busi more people. The launch of Amways new brand identity Amw towards towar the end of 2009 has also underscored this approach to unders rejuvenate the Group and make j it even more relevant today. As we approach our 35th year in Malaysia in 2011, we do so with condence because we not only have a stronger foundation, but literally and metaphorically, a bigger roof over our heads to cater for future growth.

We couldnt have achieved another year of sales revenue growth if not for the collective contribution of Amway Distributors, Management team and staff. So on behalf of your Board, I would like to express our deepest appreciation to them for their unwavering dedication and commitment to this Company. I also want to recognise the contribution of your Board of Directors whose diverse experience and professional counsel have provided tremendous insight and guidance. I would like to take the opportunity to thank Encik Abdul Wahab Bin Nasir who retired from the Board last year for lending his expertise and support. In turn, I welcome Encik Mohammad Bin Hussin who was appointed to the Board on 10th June 2009. Last but not least, your Board would like to thank the government authorities for supporting the direct selling industry and our business associates and shareholders for their support and condence in the Company.

the strategies that it has put in he t place as well as the investments it has made, especially in the areas of consumer access, for long-term sustainable growth due to our nancial strength, our market leadership and the strong partnerships that we have with the Distributors and business associates. As we take the necessary steps to protect and defend our business today, we also envision substantial opportunities for growth in new market segment penetration. The Bumiputra market as well as the digitallyinclined younger generation are potential growth-drivers

DATO AB. HALIM BIN MOHYIDDIN

Chairman

APPRECIATION APPRECIATION APPRECIATION

NEW HEADQUARTERS PROVIDING A LINK FOR FUTURE GROWTH

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

PENYATA PENGERUSI
Pemegang saham yang dihormati sekalian,

PEMBUKAAN RASMI KEDAI KONSEP AMWAY DI BINTULU

Kita sememangnya sedia maklum berhubung kesukaran yang dihadapi p p pada tahun 2009. elah Krisis ekonomi dunia yang membantutkan pertumbuhan global telah mengakibatkan ga kesan buruk kepada kebanyakan negara di dunia. Malaysia juga tidak terkecuali etan daripada kemelut ekonomi tersebut dan mengalami kemelesetan pertama sejak sedekad lalu. Berdasarkan suasana ekonomi tersebut, saya ingin melaporkan bahawa h Amway (Malaysia) Holdings Berhad berjaya keluar daripada arah aliran semasa dan mencatat satu lagi tahun pertumbuhan yang memuaskan dalam hasil jualan. Dengan ng peluang perniagaan memberangsangkan yang membolehkan orang ramai menambah a pendapatan mereka, Kumpulan ini telah menampilkan keutuhannya untuk kekal teguh dalam mengharungi kelembapan ekonomi yang begitu mencabar.
PRESTASI KEWANGAN
berbanding Dolar AS yang lemah. Iklim kadar faedah yang lebih rendah di negara kita turut mendatangkan kesan kepada pendapatan faedah Kumpulan dan dengan tanggungan caj bank yang lebih tinggi bagi tahun yang ditinjau seiring dengan penerimaan semua kad kredit sejak bulan Ogos 2008, tahap keuntungan yang lebih rendah tersebut sememangnya telah kita jangkakan. Sungguhpun Kumpulan sedar akan tekanan yang dibawa oleh faktorfaktor luar ini terhadap margin, namun kita merasakan bahawa sokongan yang lebih besar perlu diberi kepada perniagaan untuk memanfaatkan beberapa inisiatif yang telah menunjukkan tanda-tanda awal kejayaan dan mempunyai potensi untuk membawa perniagaan ke tahap yang lebih tinggi. Oleh yang demikian, pelaburan untuk meningkatkan akses pengguna melalui pembukaan lebih banyak kedai Amway dan mempertingkatkan kesedaran terhadap peluang perniagaan Amway melalui kempen pengiklanan secara besarbesaran telah dirancang secara strategik dengan matlamat untuk mencapai pertumbuhan masa depan perniagaan yang teguh.

DIVIDEN N
Selaras dengan hasrat Syarikat sentiasa memberi untuk an pulangan daripada lebihan patan kepada para pendapatan ang pemegang sahamnya secara n tersusun dan bersistematik, ga Pengarah anda Lembaga syorkan mengesyorkan dividen interim peringkat keempat satu ak sebanyak 7 sen sesaham bersih, usi menerusi pilihan selepas tarikh ira-kira. kunci kira-kira. Berserta dengan dividen interim dan dividen khas yang diisytiharkan lebih awal pada tahun tersebut, jumlah n dividen bagi tahun kewangan ir berakhir 31 Disember 2009 adalah sebanyak 48 sen sesaham bersih. Jumlah pembayaran dividen bersih sebanyak RM78.9 juta akan menghasilkan hasil bersih ak sebanyak 6.7%.

ANNUAL REPORT 2009

Dengan menampilkan kawalan kukuh yang sentiasa ada pada kita dalam mengemudi prestasi Kumpulan, kita telah melaksanakan beberapa inisiatif baru dan meneruskan beberapa strategi penting dari tahun sebelumnya bagi memastikan kita dapat meraih peluang yang ada semasa tempoh mencabar ini dan menukarkannya kepada peluang yang akan mengukuhkan lagi kedudukan Kumpulan. Kos tambahan yang ditanggung oleh Kumpulan adalah satu pelaburan yang merupakan asas kepada strategi jangka panjang bagi memastikan keteguhannya. Justeru, walaupun hasil jualan Kumpulan mencapai pertumbuhan memuaskan pada kadar 3% bagi mencatat jumlah hasil sebanyak RM663.9 juta berbanding RM645.5 juta pada tahun lepas, namun keuntungan sebelum cukai menurun sebanyak 23.5% daripada RM129.2 juta pada tahun 2008 kepada RM98.9 juta pada tahun 2009. Keuntungan selepas cukai turut mengalami penyusutan sebanyak 23.7% daripada RM95.1 juta pada tahun lepas kepada RM72.5 juta pada tahun 2009. Salah satu faktor yang menyebabkan keuntungan lebih rendah tersebut adalah kadar tukaran mata wang ringgit

TINJAUAN OPERASI UAN

Tahun yang ditinjau menyaksikan lan Kumpulan melabur semula di dalam perniagaannya secara agresif untuk membantu para dar Pengedar meningkatkan jualan enajaan dan penajaan mereka. Dalam h tempoh di mana kebanyakan t syarikat mengurangkan atau ong memotong perbelanjaan, kita nya sebaliknya telah melaburkan mlah satu jumlah yang besar ke dalam m-program insentif, program-program nalan produk baru, pengenalan si promosi produk yang menarik,

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

IBU PEJABAT BARU AMWAY

pen peningkatan akses kepada pro produk kita dan pengukuhan day daya tarikan jenama kita. Sal Salah satu daripada peristiwa pen penting korporat pada tahun 200 2009 adalah penyiapan Ibu Pej Pejabat Amway baru yang telah me menyaksikan perpindahan kami ke premis yang bersaiz tiga kali gan ganda lebih besar berbanding Ibu Pejabat lama. Lokasi Ibu Pej Pejabat baru yang begitu ham hampir dengan premis lamanya itu berpotensi untuk menjadi wa wadah penajaan yang hebat unt untuk para Pengedar yang tida tidak sabar-sabar mengulangi kom komitmen jangka panjang Kum Kumpulan terhadap perniagaan M di Malaysia. Ibu Pejabat baru yang me mempunyai kemudahan lebih bai baik dan dipertingkatkan seperti Pus Pusat Latihan, kemudahan ked kedai, ruang gudang yang lebih bes besar dengan Sistem Pemilihan Dig Digital yang cekap dari segi tek teknologi dan Pusat Jenama yan yang akan siap tidak lama lagi itu mampu menjadi pemangkin kep kepada pertumbuhan Kumpulan pad pada masa depan. Sel Selain penyiapan Ibu Pejabat bar baru tersebut, pembukaan em empat lagi kedai konsep Amway jug juga telah mendapat sambutan me menggalakkan daripada para Pen Pengedar Amway di Bintulu, Pul Pulau Pinang, Klang dan Wa Wangsa Maju. Bagi mereka dan Kumpulan, kedai-kedai ters tersebut akan berperanan unt untuk membawa produk dan pel peluang perniagaan kita lebih dek dekat dengan prospek dan par para pelanggan yang kini boleh me merasai sendiri pengalaman den dengan produk dan jenama

Amway dengan mudah dan menyenangkan. Berbekalkan enam pengenalan produk baru pada tahun yang ditinjau, aktiviti jualan runcit telah membantu mendorong pertumbuhan hasil jualan. Nutri Fibre Blend daripada rangkaian suplemen makanan kesihatan NUTRILITE telah mendapat sambutan paling menggalakkan di kalangan Pengedar dengan mencatat hampir 40% daripada hasil jualan yang disumbangkan oleh pelancaran produk-produk baru. Produk tersebut, serta dengan portfolio produk yang luas di bawah jenama Amway dan kategori lain iaitu produk sumber tempatan menerusi Personal Shoppers Catalogue, terus memberi peluang jualan yang kukuh kepada para Pengedar Amway. Tahun 2009 juga merupakan Ulang Tahun Ke-50 Amway International Inc yang ditubuhkan pada tahun 1959 oleh Richard DeVos dan mendiang Jay Van Andel di Amerika Syarikat. Kemuncak sambutan tersebut telah diraikan dalam acara perhimpunan Jemputan Intan Global di Las Vegas dengan kehadiran para Pengedar berprestasi tinggi dari 30 buah negara di mana Amway International Inc telah bertapak. Penyertaan 170 orang Pengedar bertaraf Intan dari Malaysia menggambarkan kejayaan jenama Amway di Malaysia dan menampilkan keutuhan produk dan peluang perniagaan, walaupun selepas 33 tahun bertapak di Malaysia. Selain sambutan Ulang Tahun

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

PENYATA PENGERUSI
EKSPO PRODUK KEMPEN ONE BY ONE UNTUK KANAK-KANAK

Ke-50, Program Insentif Jualan (SIP) dan Anugerah Bukan Tunai (NCA) juga merupakan pendorong utama bagi kelayakan dan permohonan baru yang telah mencatat peningkatan sebanyak 5.8% dalam Tenaga Pengedar Teras kepada lebih 208,000 orang. Ini merupakan gambaran jelas bahawa Amway masih kekal sebagai satu peluang yang menarik kepada lebih ramai rakyat Malaysia. Kempen Penjenamaan Amway secara besar-besaran yang dimulakan dengan siri iklan media cetak dan televisyen secara meluas dan ditujukan kepada kumpulan sasaran tertentu pada penghujung tahun yang ditinjau hingga awal tahun semasa juga telah memperbaharui persepsi terhadap nama jenama Amway. Kempen Penjenamaan Amway yang disasarkan untuk memupuk kesedaran yang lebih tinggi tersebut turut bermatlamat untuk menyokong usaha pengambilan ahli baru oleh para Pengedar.

dimasukkan ke dalam Indeks sedemikian, sesebuah syarikat perlu mempunyai skor yang baik dalam beberapa aspek termasuk pematuhan dengan peraturan pasaran, prestasi kewangan, tanggungjawab sosial korporat dan kualiti pendedahan dalam laman web, Laporan Tahunan serta amalan syarikat. Lembaga Pengarah anda juga telah menampilkan komitmen yang jelas kepada Syarikat melalui tatacara profesional dan kehadiran mereka di mesyuarat Lembaga. Sebagai ahli pelbagai Jawatankuasa Kecil, mereka telah menyumbangkan input bernilai bagi memastikan supaya Syarikat mengamalkan tahap kebertanggungjawaban dan tanggungjawab tertinggi kepada pemegang saham.

TANGGUNGJAWAB KORPORAT
Amalan sebagai warga korporat yang bertanggungjawab telah lama menjadi aspek penting dalam pelaksanaan Kumpulan iaitu sejak kali pertama produk Amway dilancarkan. L.O.C hari ini mengekalkan komitmennya terhadap kemampanan alam sekitar melalui ciri-ciri produknya yang dihasilkan tanpa bahan kimia yang berbahaya kepada alam sekitar. Kumpulan amat memahami bahawa tanggungjawab korporat bermaksud menangani jangkaan pelbagai pemegang kepentingannya dalam menguruskan perniagaan kita secara bertanggungjawab dan prihatin terhadap kejayaan jangka panjang dan pembangunan mampan. Kita telah menguatkuasakan

TADBIR URUS KORPORAT

Sebagai sebuah syarikat senarai awam, kita amat menyedari keperluan yang berterusan untuk mencipta nilai kepada para pemegang saham kita. Pada tahun yang ditinjau, kemampuan kita untuk mencipta nilai sedemikian melalui tadbir urus korporat yang baik dan pengurusan yang cekap telah diberi pengiktirafan menerusi kemasukan kita ke dalam senarai 100 syarikat senarai awam terbaik dalam Indeks Tadbir Urus Korporat Malaysia 2009. Untuk

Peraturan Tatacara & Tingkah Laku sebagai panduan untuk Pengedar Amway semasa mereka membina perniagaan mereka. Rangkaian produk kita mencerminkan keprihatinan kita terhadap alam sekitar kerana ia dibangunkan bukan hanya untuk memberikan nilai terunggul kepada para pengguna, tetapi sebagai salah satu usaha kita untuk meminimumkan kesan kepada alam sekitar. Produk Penjagaan Barangan Di Rumah Amway mengandungi surfaktan terbiodegradasi manakala produk-produk aerosol kita pula tidak mengandungi Klorouorokarbon (CFC). Produk NUTRILITE dihasilkan menggunakan bahan daripada ladang organik kita sendiri yang mematuhi garis panduan yang ketat berhubung pengurusan sumber asli secara bertanggungjawab. Kesedaran alam sekitar turut memainkan peranan penting dalam mempengaruhi reka bentuk dan kelengkapan dalaman Ibu Pejabat baru kita dengan ciriciri mampan seperti penyaman udara yang menjimatkan elektrik dan penggunaan cahaya matahari secara maksimum dengan membina tingkaptingkap dari lantai hingga ke siling. Dorongan ke arah hubungan komuniti terus membentuk komitmen kita terhadap kebajikan kanak-kanak yang mempunyai risiko tekanan emosi, ketahanan yang rendah terhadap persekitaran mencabar, bahkan kerunsingan atau tekanan perasaan. Melalui Kempen One By One untuk Kanak-kanak

ANNUAL REPORT 2009

10

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

ULANG TAHUN KE-75 NUTRILITE

pada tahun 2009, Kumpulan menghias semula sebuah lagi hospital sebagai sebahagian daripada projek Wad Riang Sihat yang dilaksanakan dengan bertujuan mengurangkan kesan persekitaran klinikal terhadap kanak-kanak yang sedang dalam proses penyembuhan di hospital. Projek ini turut menyediakan landasan bagi para Pengedar dan kakitangan Amway untuk menganjurkan aktiviti yang membawa keceriaan kepada kanak-kanak yang sedang menghadapi tekanan dari segi emosi disebabkan oleh masalah kesihatan yang telah lama dideritai.

UNJURAN MASA DEPAN

Dalam keadaan ekonomi semasa yang tidak menentu di dalam negara dan di seluruh dunia, kita sentiasa memantau sebarang tanda perubahan dan bersedia untuk memenuhi cabaran yang mendatang. Pendekatan kewangan kita yang berhemah telah memberi manfaat kepada kita dan akan terus diamalkan. Kita yakin bahawa Amway berada di kedudukan yang baik dari segi strategi yang telah disediakan, dan juga pelaburan yang telah dilaksanakan, khususnya dalam bidang-bidang akses pengguna, untuk mencapai pertumbuhan mampan jangka panjang hasil daripada keteguhan kewangan kita, status kita sebagai peneraju pasaran dan perkongsian kukuh yang kita jalinkan dengan para Pengedar dan rakan kongsi perniagaan.

Dalam usaha kita mengambil langkah yang perlu untuk melindungi dan mempertahankan perniagaan kita pada hari ini, kita turut menjangkakan peluang pertumbuhan besar dalam penembusan segmen pasaran baru. Pasaran Bumiputera serta generasi muda yang cenderung kepada alam digital merupakan pendorong pertumbuhan yang mempunyai potensi bagi Amway menerusi penggunaan strategi pemasaran dan produk yang tepat. Dengan pembukaan tiga buah lagi kedai Amway pada tahun 2010, kita akan mengukuhkan kehadiran kita, mempertingkatkan penampilan jenama dan membawa produk dan peluang perniagaan kita lebih dekat kepada orang ramai. Pelancaran identiti baru jenama Amway pada akhir tahun 2009 juga memantapkan lagi pendekatan untuk memberikan nafas baru kepada Kumpulan dan menjadikannya lebih relevan pada masa kini. Kita sedang menghampiri tahun 2011, iaitu tahun ke-35 di Malaysia dengan penuh keyakinan kerana kita bukan sahaja mempunyai asas yang kukuh, malah mempunyai naungan bumbung yang lebih besar, baik secara kiasan mahupun realiti, untuk menyokong pertumbuhan pada masa depan.

Lembaga, ingin mengucapkan setinggi-tinggi penghargaan kepada mereka atas dedikasi dan komitmen tidak berbelah bahagi kepada Syarikat. Saya juga ingin mengiktiraf sumbangan Lembaga Pengarah anda kerana pengalaman mereka yang luas dan khidmat nasihat mereka yang profesional telah memberikan kita pengetahuan yang mendalam dan panduan yang amat berguna. Saya juga ingin mengambil peluang ini untuk mengucapkan ribuan terima kasih kepada Encik Abdul Wahab Bin Nasir yang telah bersara daripada Lembaga pada tahun lepas atas sumbangan kepakaran dan sokongan yang diberikan sepanjang perkhidmatan beliau. Seterusnya, saya ingin mengalualukan penyertaan Encik Mohammad Bin Hussin yang dilantik ke Lembaga pada 10 Jun 2009. Akhir sekali, namun terutama sekali, Lembaga anda ingin merakamkan ucapan terima kasih kepada pihak berkuasa kerajaan atas sokongan terhadap industri jualan langsung serta rakan sekutu perniagaan dan para pemegang saham atas sokongan dan keyakinan mereka terhadap Syarikat.

PENGHARGAAN
Kita tidak mungkin berjaya mencatat satu lagi tahun pertumbuhan hasil jualan jika bukan disebabkan oleh sumbangan bersama oleh para Pengedar Amway, pasukan Pengurusan dan kakitangan. Justeru, saya bagi pihak

DATO AB. HALIM BIN MOHYIDDIN

Pengerusi

SAMBUTAN ULANG TAHUN KE-75 NUTRILITE

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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BOARD OF DIRECTORS

Yee Kee Bing

Executive Director

Dato Ab. Halim Bin Mohyiddin DPMS Low Han Kee

Managing Director Chairman, Senior Independent Non-Executive Director

ANNUAL REPORT 2009

REGISTERED OFFICE Lot 6.05, Level 6, KPMG Tower 8 First Avenue, Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan Tel : 03-7720 1188 Fax : 03-7720 1111 PLACE OF INCORPORATION MALAYSIA PRINCIPAL BUSINESS ADDRESS 28 Jalan 223 46100 Petaling Jaya Selangor Darul Ehsan Tel : 03-7946 2288 Fax : 03-7946 2399 E-mail : ir@amway.com Web : www.amway2u.com COMPANY SECRETARIES Tai Yit Chan (MAICSA No. 7009143) Liew Irene (MAICSA No. 7022609) SHARE REGISTRARS Tricor Investor Services Sdn Bhd
(formerly known as Tenaga Koperat Sdn Bhd)

CORPORATE INFORMATION
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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

Level 17, The Gardens North Tower Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur Tel : 03-2264 3883 Fax : 03-2282 1886

Scott Russell Balfour

Non-Independent Non-Executive Director

Mohammad Bin Hussin

Non-Independent Non-Executive Director

Prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof

Independent Non-Executive Director

Eva Cheng Li Kam Fun

Non-Independent Non-Executive Director

Dato Cecil Wilbert Mohanaraj Abraham

Independent Non-Executive Director

AUDITORS Ernst & Young Chartered Accountants Level 23A Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur

PRINCIPAL BANKERS Public Bank Berhad Standard Chartered Bank Malaysia Berhad Malayan Banking Berhad AmBank (M) Berhad CIMB Bank Berhad

STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Stock Code: 6351

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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PROFILE OF DIRECTORs
Dato Ab. Halim Bin Mohyiddin dpms
Dato Ab. Halim Bin Mohyiddin, a Malaysian, aged 64, was appointed Director of Amway (Malaysia) Holdings Berhad (AMHB) on 25 November 2002. He was appointed the Chairman of AMHB on 12 January 2006 and is also the Senior Independent Director of AMHB. He also serves as the Chairman of the Audit Committee and member of the Remuneration Committee and Nominating Committee. He graduated with a Bachelor of Economics (Accounting) from Universiti Malaya in 1971 and thereafter joined Universiti Kebangsaan Malaysia as a Faculty member of the Faculty of Economics. He obtained his Masters of Business Administration Chairman, Senior Independent Non-Executive Director Degree from University of Alberta, Canada in 1973. He retired from KPMG/KPMG Desa Megat & Co. on 1 October 2001, a firm he joined in 1977 and had his early accounting training in both Malaysia and United States of America. He was made partner of the Firm in 1985. At the time of his retirement, he was Partner-in-Charge of the Assurance and Financial Advisory Services Divisions and was also looking after the Secured e-Commerce Practice of the Firm. He is a member of the Malaysian Institute of Certified Public Accountants (MICPA) and Malaysian Institute of Accountants (MIA). He is currently the Chairman of the Education and Training Committee of MICPA. He served as a member of the Education Committee of the International Federation of Accountants (IFAC) from 2001 to 2005. He was the President of the MICPA from June 2004 to June 2007 and a council member of MIA from 2001 to 2007. Presently, he is a Board member of Kumpulan Perangsang Selangor Berhad, HeiTech Padu Berhad, Utusan Melayu (Malaysia) Berhad, DiGi.Com Berhad, Idris Hydraulic (Malaysia) Berhad, KNM Group Berhad, Idaman Unggul Berhad, Bank Pembangunan Malaysia Berhad, BI Credit & Leasing Berhad, ECM Libra Financial Group Berhad, AMDB Berhad and RCE Capital Berhad. Dato Ab. Halim Bin Mohyiddin is a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has no convictions for offences. Dato Ab. Halim Bin Mohyiddin attended all the five Board meetings held during the financial year ended 31 December 2009.

Low Han Kee, a Malaysian, aged 50, was appointed Director of AMHB and Amway (Malaysia) Sdn Bhd (AMSB) on 6 June 1996 and 16 October 1995 respectively. On 1 September 1998, he took over the helm as the Managing Director of AMHB. He is also a Director of Amway (B) Sdn Bhd (ABSB), a subsidiary of AMSB since 1998. He joined AMSB in 1990 as Divisional Manager, Finance & Administration and was promoted to General Manager responsible for Amway operations in Malaysia and Brunei, in January 1993. He qualified as a Certified Public Accountant in 1984 whilst serving in Ernst & Whinney (now known as Ernst & Young), an international accounting firm. He has since accumulated more than 20 years of financial expertise, having held senior positions in

finance in companies listed on Bursa Malaysia Securities Berhad (Bursa Securities), including Mulpha International Trading Corporation Berhad, a group involved in trading, construction and engineering, where he last held the position of Group Chief Accountant, from 1985 to 1990 before leaving to join AMSB. Low Han Kee is a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has no convictions for offences. Low Han Kee attended all the five Board meetings held during the financial year ended 31 December 2009.

Low Han kee

Managing Director

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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

Scott Russell Balfour

Non-Independent Non-Executive Director

Scott Russell Balfour, an American, erican, ctor aged 48, was appointed Director of e AMHB on 15 January 2004. He also serves as a member of the Audit ber Committee. He is a member of n, the American Bar Association, the chigan Grand Rapids Bar and the Michigan hored Bar Association. He has authored several articles regarding Korean d and Asian jurisprudence and coKorean authored the book entitled Korean . Labor and Employment Laws. Currently, he is also the Deputy sident General Counsel and Vice President or of International Legal of Alticor Inc. Through the International Legal ersees Group, he coordinates and oversees es Alticors diverse legal issues for g over 50 markets, including 13 Asian afliates in Australia, China, Korea, India, Indonesia, Japan, pines, Malaysia, New Zealand, Philippines, d Singapore, Taiwan, Thailand and Vietnam. 99, Prior to joining Alticor in 1999, he oreign spent 8 years as a Senior Foreign

Legal Consultant for the law rm of Kim & Chang in Seoul, South Korea. His clients included Amway, Citibank, Pepsico, Morgan Stanley, Nike, McDonald, Gerber, Unilever, P&G and Duracell to name a few. He graduated with a Bachelor of Science Degree from Michigan State University in 1983. After serving in the US military, he attended the University of Detroit where he received a Juris Doctorate Degree cum laude in 1990. Scott Russell Balfour is not a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conict of interest with the Company. He has no convictions for offences. Scott Russell Balfour attended all the ve Board meetings held during the nancial year ended 31 December 2009.

Yee Kee Bing, a Malaysian, aged 50, was appointed Director of AMSB on 28 November 2000. He was appointed Executive Director of AMHB on 16 July 2004. On 1 September 2004, he assumed his responsibility as the General Manager of AMSB. He started his career as the Accounts Servicing Executive at Art Beat Communications Sdn Bhd in July 1983. He joined AMSB as Communications Executive, in November 1984 before being promoted to Communications Coordinator in 1988, and assuming the position of Communications Manager in 1990. In 1992, he moved over to take the position of Group Product Manager and later became the Manager of Business Development Department in January 1993. He was subsequently promoted to

Divisional Manager - Marketing rketing Division in August 1994, and , promoted again to Assistant ssistant General Manager for Marketing rketing & Business Development in 1999 n before taking over as General Manager (Operations) in January anuary 2000. He is currently the President esident of Direct Selling Association of ion Malaysia (DSAM) and has held the eld position since 2001. He is also the lso Chairman of the Malaysia Chapter of the Asia Pacic Economic onomic Cooperation Consumer Education ucation and Protection Initiative (APEC APEC CEPI) Committee and a member of the Board of Directors of the World Federation of Direct Selling Associations. He graduated with a Bachelors chelors Degree in Social Science (Major : Major Communications) from Universiti niversiti Kebangsaan Malaysia in 1983. 3.

Yee Kee Bing is not a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conict of interest with the Company. He has no convictions for offences. Yee Kee Bing attended all the ve Board meetings held during the nancial year ended 31 December 2009.

Yee Kee Bing

Executive Director

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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PROFILE OF DIRECTORs
Eva cheng Li kam Fun
Non-Independent Non-Executive Director Eva Cheng Li Kam Fun, a British National (Overseas), aged 57, was appointed Director of AMHB on 19 October 2005. She also serves as the Chairperson of the Remuneration Committee, and the Nominating Committee and an alternate member of the Audit Committee. Eva currently serves as Executive Vice President of Alticor Global Holdings Inc, the ultimate holding company, and is part of its senior management team responsible for Amways global business development. She is also the Chairperson of Amway (China) Co. Ltd. Since the beginning of her career with Amway in 1977, Eva has held senior management positions within the Amway Group. Eva is best known for leading Amways entry into China in 1992, and for driving the growth and development of the companys business there. Over the past decade, Amway China has regularly been recognized by business magazines, surveys, and government agencies as one of Chinas most admired companies and best employers. Amway China is now one of the top 100 foreign invested enterprises in sales and was named The Most Influential Multi National Company in China by China Business Network for 5 consecutive years since 2005. Evas leadership is well recognized in Chinas business community. In 2007, China Business Network (CBN) and CNBC Asia Pacific, in partnership with the University of Chicago, presented Eva with the 2007 China Business Leader Talent Management Award. She was also named among the Worlds 100 Most Powerful Women in 2008 and 2009 by Forbes Magazine. Eva is active in public and community service. In Mainland China, she is Member of the Executive Committee of the China Womens Federation, Member of the Chinese Peoples Political Consultative Conference, Guangdong Commission, Honorary Council Member of the Shanghai Charity Fund, Member of the Hopkins-Nanjing Council of the John Hopkins University-Nanjing University Center for Chinese and American Studies. Eva Cheng graduated with a Bachelor of Arts Degree (Hons) in 1975 and obtained a Masters Degree in Business Administration in 1989 from the University of Hong Kong. Eva is not a shareholder of the Company. She does not have any family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. She has no convictions for offences. Eva Cheng attended four of the five Board meetings held during the financial year ended 31 December 2009.

Prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof, a Malaysian, aged 63, was appointed Director of AMHB on 9 February 2006. He also serves as a member of the Audit Committee and Remuneration Committee. He graduated with a Bachelor of Arts (Honours) from Universiti Malaya in 1969. He obtained a Master of Arts from the University of Wisconsin, Madison, United States of America in 1979 and later gained a PhD in Law from the University of Kent, Canterbury United Kingdom in 1989. Prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof has vast local and international experience through his years of involvement in various councils, committees and land settlement schemes. He previously held key positions in both private and government bodies including being the Director of Bank Rakyat, Director of FELDA Group

of Companies, Director of Land Settlement Scheme of Perlis and Kelantan and Director General of Department of Land and Mines, Malaysia. Prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof was the Secretary General of the Ministry of Land and Cooperative Development, Malaysia from 1995 to 2002. Presently, he is a Board member of Fututech Berhad. He is the Chairman of Yayasan Peneroka Negara, Malaysia since 2000 and an Adjunct Professor for Universiti Putra Malaysia since 2006. Prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof is not a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has no convictions for offences.

Prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof attended all the five Board meetings held during the financial year ended 31 December 2009.

prof. Datuk Dr. Nik Mohd Zain Bin Nik Yusof

Independent Non-Executive Director
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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

Dato Cecil Wilbert Mohanaraj Abraham

Independent Non-Executive Director

Dato Cecil Wilbert Mohanaraj Abraham, a Malaysian, aged 64, was appointed Director of AMHB on 9 February 2006. He also serves as a member of the Audit Committee and Nominating Committee. Dato Cecil had his tertiary education in Malaysia and the schools which he attended include, inter-alia, the Federation Military College, now known as the Royal Military College, which is one of the premier schools in the country. He read law at Queen Mary College, University of London and graduated with an LL.B Hons. Degree in 1968. He was called by the Honourable Society of Middle Temple as a Barrister at Law in May 1969. He was admitted as an Advocate & Solicitor of the High Court of Malaya in February 1970.

He was a Partner of Messrs Shearn Delamore & Co. from 1976 to 31 July 2007. He is currently a Senior Partner with the legal rm of Messrs Zul Raque & Partners. He has an extensive litigation as well as domestic and international arbitration practice. Dato Cecil is not a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conict of interest with the Company. He has no convictions for offences. Dato Cecil attended four of the ve Board meetings held during the nancial year ended 31 December 2009.

Mohammad Bin Hussin, a Malaysian, aged 49, was appointed Director of AMHB on 10 June 2009. He obtained a Bachelor of Business Administration from University of Portland, Oregon, United States of America in 1986 and later gained a Master of Business Administration from Craneld University, United Kingdom in 1990. He is currently the Vice President of the Marketing & Branch Operations Department of Permodalan Nasional Berhad (PNB). He had previously held various senior management positions in PNB. From 1990 to 2002, he held various management positions in corporations amongst others, Edaran Otomobil Nasional Berhad and UMW Toyota Sdn Bhd.

Mohammad Bin Hussin is not a shareholder of the Company. He does not have any family relationship with any Director and/or major shareholder of the Company and has no conict of interest with the Company. He has no convictions for offences. Mohammad Bin Hussin attended all the two Board meetings held since his appointment as a Director on 10 June 2009.

Mohammad Bin Hussin

Non-Independent Non-Executive Director

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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OPERATIONS REVIEW
NEW HEADQUARTERS UNDER CONSTRUCTION AMWAY NEW HEADQUARTERS OFFICIAL OPENING CEREMONY

A ANNUAL REPORT 2009

Following on the heels of the successful implementation of several strategic initiatives in 2008, the Group extended these initiatives in 2009 to help Distributors increase their long-term retailing and sponsoring activities and to enable them to meet the challenges that stemmed from a difcult economic climate. At a time when many companies had seen the need to cut back, the Group invested millions into product and sponsoring promotions, increasing its physical presence and not least of all, a bigger and better-equipped new Headquarters that had facilities to help Distributors in building their business. Even after 33 years in Malaysia, we strongly believed that Amway is still relevant to Malaysians. Those who trusted us, we wanted to reafrm their faith and perception in the Group, its products and Opportunity. Those who were new to us, we wanted to invite them to get to know Amway better. Those who were sceptics, we wanted them to see us in a different light. And that was really the thrust behind the Amway Branding Campaign to engage with all levels of Malaysians to show them that at the heart of Amway who we truly were. And At The Heart Of Amway Is and mortar, the new Headquarters will greatly enhance the business efciency and capacity of the Group to cater for future growth. Another infrastructure expansion in the year was the addition of four more shops as part of the Groups consumer access strategy to increase accessibility and be more consumer-focused. With a pick-and-pay concept, these strategically-located shops in Bintulu, Penang, Klang and Wangsa Maju offer Distributors the opportunity and convenience to see, touch and feel Amway products via contemporary yet functional merchandising displays from 10am to 9pm every Monday to Saturday. As of end 2009, the Groups eight shops nationwide have positively contributed to the overall increase in sales revenue and the number of prospects who have signed up as Distributors. The presence of the shops has also encouraged more Distributor activity, renewed interest in Amway and drew new Distributors to the products and business opportunity. Together 13 Regional with the current 1 Distribution Centres (RDCs) and and 24/7 on-line ordering a payment have access, these shops hav enhanced Amway the offering of Amwa products opportunity. and business opportun

A STORY OF CONNECTIONS
The move to the new Headquarters in the fourth quarter of 2009 heralded a new chapter for the Group, its staff and Distributors. From a modest start in a small shop lot with ve employees in 1976, the construction and subsequent completion of the new Headquarters was symbolic of the steady rise of Amway in Malaysia. Built at an investment of about RM100 million, the new Headquarters will be a great sponsoring tool for Distributors who will leverage on the many enhanced facilities which will be elaborated on in the coming pages. Beyond just bricks

A STORY OF DEDICATE DEDICATED DISTRIBUTORS

In 2009, new applications grew applica by 5% while the Core Distributor Force (CDF) reached a new high of 208,000, up 7% from 2008. This increase is a ree ection of the continued condence o Malaysians of in the Amway Opport Opportunity and in the attractiveness of the Amway Sales and Marketing Plan as marketing insight has r revealed that

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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

THE ANNUAL NATIONAL CONVENTION

more people joined Amway for the additional income stream. Coupled with the enhanced Sales Incentive Programme (SIP) and Non-Cash Awards (NCAs), the attractive income potential has helped spur growth in the years CDF and new applications. About 60% of the new applications are below the age of 35, a testimony that the Amway Opportunity is still relevant in todays time. In keeping with our commitment to provide the best possible support, the Group increased the amount and quality of our business-building support during the year in review. A little more than 300 product training workshops were conducted across all product lines and this saw nearly 27,000 Distributors trained in product knowledge and retailing skills. Apart from the 147 company-sponsored rallies and workshops, the successful new Platinum Seminars in Guangzhou, China which were rst introduced in 2008, also extended its run in 2009 as many new Platinum qualiers found the training programme very benecial and a strong motivating factor. The annual National Convention in 2009 was also a strategic platform to bring together more than 17,000 motivated and enthusiastic Amway Distributors to facilitate company updates and exchange of business views. The highlights of the Convention were the ve prominent speakers, all of whom are Crown Ambassadors from Malaysia, Thailand and Hong Kong. Their varied background

and stories provided an interesting mix of perspectives of the Amway Opportunity and they ably brought the audience to high levels of motivation. This is further reected in the higher number of qualiers for the Amway Leadership Seminar to Los Angeles in the year which saw an increase of about 21% from the previous years number of qualiers. As it was, more than 950 Distributor Leaders travelled in December for the Seminar where the highlight was the visit to the Nutrilite Manufacturing Facilities in Buena Park. NUTRILITE is one of Amways best-selling brands and the rst-hand knowledge and observation gained from the visit would strengthen the Distributors brand experience. Perhaps the most signicant Distributor event of the year was the Global Diamond Invitational held in conjunction with the 50th Anniversary of parent brand Amway. This was the culmination of a series of events held in the year to commemorate the founding of Amway in 1956 by Richard DeVos and the late Jay Van Andel. The Invitational was held in Las Vegas and attended by Diamonds from over 30 countries all around the

world, including 170 from Malaysia. As a leader in the multi-level marketing industry, we constantly innovate ourselves to defend our market position. Even after 33 years in Malaysia, Amway still resonates as a household name. Awareness for Amway remains very high, while favourability has increased over the years. While we have initiatives to excite and retain new Distributors, we also have to ensure that the Amway Opportunity attracts many more people. That was fundamentally the reason why the Group embarked on the Amway Branding Campaign which kicked off in November 2009 with an intensive series of print and television advertisements which proled Amway in a new light. Anchored on values and the enhanced accessibility to Amway products, the Campaigns fresh approach was intended to appeal to the younger set of people while rejuvenating existing perceptions. Although research to validate the efcacy of the advertising campaign will only take place in the rst half of 2010, the net favourability of the Group had shown an improvement by end 2009.

GLOBAL BRAND AMBASSADOR NUTRILITE EXPERIENCE

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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OPERATIONS REVIEW
NUTRILITE 75TH ANNIVERSARYSUPERTOUR

A STORY OF TRUSTED BRANDS

Product launches and revisions New product introductions continued to drive incremental sales in 2009. Six new products were launched in the year and the best performer was the Nutri Fibre Blend which attributed nearly 53% of the total contribution from new products to overall sales revenue. Made up of an exclusive blend of 13 natural sources of soluble and insoluble bres, the Nutri Fibre Blend replaced an old favourite, the NUTRILITE Multi Fibre. Another NUTRILITE product called the NUTRILITE CH Balance, a supplement for cholesterol health, also drew encouraging response from Distributors. Under the ARTISTRY skincare and cosmetics range, a new eye cream was also introduced. Called the TIME DEFIANCE Lifting Eye Creme, this eye cream incorporates the revolutionary Derma Cell Exchange technology to help prevent and repair the visible signs of ageing in the delicate eye area.

ANNUAL REPORT 2009

Under the Personal Shoppers Catalogue - the range of products traditionally positioned as dooropeners - refeatured products and line extensions grew about 5%, helping to sustain the overall sales revenue for the Catalogue which saw stiff competition from retail brands. Although there were no signicant new products, several l high-ticket items continued to do o well despite the cautious consumer r sentiment. One such product was the e MyBodyShaper Beauty Garments s for Women, a specially-woven polydirectional compression garment t that sculpts and contours the body y which contributed about 4% of total l Catalogue sales revenue. Product promotions A key driver of sales, product t promotions continued to feature e in the years marketing activities. . A trade-in programme for the e eSpring Water Treatment System m was held where other branded water treatment systems as well as Amways own Water Treatment System Generation 1 and 2 were allowed to be traded in for a new eSpring. This promotion performed well to generate substantial sales, as did a few other Purchase With Purchase Promotions where the premiums were high-ticket items such as a home theatre system and a mini refrigerator.

In order to ease Distributors nancial outlay, an 18-months Zero Interest Payment Plan (ZIPP) was also introduced for the rst time for selected high ticket items. This programme received good response from Distributors and it helped them with better nancial management.

There were also six product revisions with the most signicant being the revision of the basic skincare range comprising the cleanser, toner and moisturiser which saw a new packaging, formula and name. This led to the entire repositioning of the basic and supplementary skincare products under the ARTISTRY essentials brand.

Marketing Activities 2009 marked the 75th Anniversary of NUTRILITE. In celebration of this milestone, Dr Sam Rehnborg, President of the Nutrilite Health Institute was in Malaysia as part of his world tour. More than 3,000 Distributors and members of the public turned up at the NUTRILITE 75th Anniversary Walk & Health Carnival which was ofciated by Dr Rehnborg. At the same Carnival, there was also an Adopt A Plant Campaign to reinforce the green message that has been NUTRILITEs underlining philosophy. A wellattended rally also reected the Distributors support for the brand which continued to gain loyalty and brand equity.

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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

PRODUCT EXPO

Speaking engagements by expert speakers remain an important thrust behind the education and training of Amway Distributors in the area of product knowledge and retailing. For the year in review, two expert speakers from the United States were brought in for this very reason. One was Dr Duke Johnson, Medical Director of the Nutrilite Health Institute, who spoke on Cholesterol: The Good, The Bad & The Truth. The other expert speaker was Louise Schneider who came to support the launch of ARTISTRY essentials. To capitalise on the excitement of having a new Headquarters, the annual Product Exposition was held there. The two-day event attracted more than 13,000 visitors, many of whom were Distributors eager to show new Distributors and prospects the wide range of products carried by the Group supported by the new and improved facilities that dene the new Headquarters. Over the course of the year in review, Regional Product Expositions were also rolled out to Kota Kinabalu, Ipoh, Kota Bahru and Malacca where a total of 7,500 Distributors and potential consumers attended the Expos to gain product insight. These are important platforms to continue creating brand recognition, loyalty and advocacy for our wide range of products.

Brand-building Brand-building ilding To support the highly-effectiv highly-effective word of mouth endorsement by Distributors, the Group continued to use an integrated approach to build greater brand recognition for its power brands such as NUTRILITE and eSpring through above the line advertising. Print and outdoor advertising were used to prole these two brands and a testimony of the effectiveness of these brandbuilding initiatives is the distinction of NUTRILITE being awarded the Readers Digest Trusted Brand Award for the 5th consecutive year in the Vitamin/Health Supplement category while eSpring won the Readers Digest Trusted Brand Award for the 4th consecutive year in the Water Purier category.

of the key initiatives which have proven to yield results. This will include the opening of three more shops in locations that are potential growth areas for the business as well as extending the Amway Branding Campaign over the course of the year with targeted bursts in selected media. In the pipeline are also several major product launches, both in the Core Lines and Personal Shoppers Catalogue. Anchoring this retail strategy has always been the Groups marketing philosophy to introduce products that Distributors want to sell and which consumers want to buy. During these unprecedented times, unstinting measures need to be taken to strengthen the business so that Amway products and business opportunity continue to be the choice for Malaysians. At the end of 2009, we revealed a new visual Amway Brand Identity. There are four key elements that set us apart from the competition: our business opportunity; our family of brands; our Distributors relationships with customers and our citizenship. Our new identity gives us a platform to communicate these key elements and our story in a whole new way. After all, at the heart of Amway is a vision to help people live better lives.

A STORY OF THE FUTURE

Although the Group grew its sales revenue in the year under review, our operating expenses faced pressure by and large due to several factors which included higher distribution and advertising expenses. However, these are necessary initiatives to support the business and to defend our market share and the year ahead will see the Group continue with some

REGIONAL PRODUCT EXPO

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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OPERATIONS REVIEW
NEW CORPORATE IDENTITY

This design was inspired by the ripple effect. That vibrancy inspired our new brand identity which is represented by harmonious, colourful circles that stand for our brand categories and our business opportunity as they connect to one another, to us and to consumers.

ANNUAL REPORT 2009

In BLUE, we see ripples that represent the positive difference our products for the home make worldwide - all while being planet positive.

In RED, we see rich, creamy swirls that represent how our beauty products touch the lives of women around the world and perpetuate an inner condence.

In GREEN, we see ripples inspired by health, the cycle of life and the energy of growth that is the basis of our nutrition products.

And, in PLATINUM, we see ripples that are metallic, shimmering and strong. They represent commitment and security and the Amway business opportunity. This platinum circle also acts as a halo for all things Amway - like our global employees and Distributors, and our citizenship efforts that make a positive difference in lives and communities worldwide.

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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

Towards the end of 2009, the Amway brand unveiled a new visual identity which is made up of the Amway logo and four colourful, dynamic circles with product category labels on each. Global research with more than 17,000 respondents in 10 markets determined that this Brand Visual Identity created a favourable impression of Amway with respondents and motivated our target audience to learn more.

The new Amway Brand Visual Identity is not just about graphics, its about our complete story. As we roll out the new Brand Visual Identity in 2010 and incorporate it into all our materials and touch points, we want to tell people that our look may be rejuvenated but our rm commitment to help people live better lives remain the same.

AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)

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OPERATIONS REVIEW
NEW HEADQUARTERS

ANNUAL REPORT 2009

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AMWAY (MALAYSIA) HOLDINGS BERHAD (340354 U) AMWAY (MALAYSIA) HOLDINGS BERHAD (340354-U)
Incorporated in Malaysia