Les Mills Mid-AtlanticLes Mills Mid-Atlantic

Agency UpdateAgency Update

Erin Kelly, Chief Operating Erin Kelly, Chief Operating OfficerOfficer

LMMA Agency UpdateLMMA Agency Update

Top 3 Agency ObjectivesTop 3 Agency Objectives SalesSales StaffingStaffing Building the Les Mills BrandBuilding the Les Mills Brand Key LearningsKey Learnings Top 3 InnovationsTop 3 Innovations

Top 3 Agency ObjectivesTop 3 Agency Objectives

1.1. Achieve year 1 & year 2 cumulative Achieve year 1 & year 2 cumulative sales goals by February 1, 2008sales goals by February 1, 2008

2.2. Build an effective sales teamBuild an effective sales team

3.3. Cultivate a service driven Cultivate a service driven operational teamoperational team

Sales GrowthSales Growth

Sales Growth - ClubsSales Growth - ClubsClosing Clubs

150

175

200

225

250

275

300

Month

Num

ber o

f Clu

bs

Closing Clubs

33% growth in new clubs from 3/0733% growth in new clubs from 3/07 41% growth in new clubs from 1/0741% growth in new clubs from 1/07

Sales Growth - ProgramsSales Growth - Programs

18% growth in programs since 3/0718% growth in programs since 3/07 26% growth in programs since 1/0726% growth in programs since 1/07

600

650

700

750

800

850

900

Month

Num

ber

of C

lubs

Staffing - SalesStaffing - Sales

Lost 3 Account Managers in the past Lost 3 Account Managers in the past 6 months 6 months • LMMA initiated, based on inadequate LMMA initiated, based on inadequate

performanceperformance

• Current status - 66% staffedCurrent status - 66% staffed Sales Director – Erin KellySales Director – Erin Kelly Account Manager – J.-J. GunningAccount Manager – J.-J. Gunning Hiring 1-2 additional Account ManagersHiring 1-2 additional Account Managers

Staffing - OperationsStaffing - Operations

Transitioned Training & Events Transitioned Training & Events Coordinator to Director of Operations Coordinator to Director of Operations & Events& Events

Hired Full-Time Training & Hired Full-Time Training & Assessment Coordinator Assessment Coordinator

Hiring Full-Time Club CoachHiring Full-Time Club Coach

Recruitment & Retention Recruitment & Retention StrategiesStrategies

Hired outside consultant – Karen WoodardHired outside consultant – Karen Woodard Utilizing job search toolsUtilizing job search tools

Improved interview strategiesImproved interview strategies

Support on-going trainingSupport on-going training

Created more full-time opportunitiesCreated more full-time opportunities

Promote from withinPromote from within

Building The Les Mills BrandBuilding The Les Mills Brand

Increased market shareIncreased market share

Acquisition of chainsAcquisition of chains

Support all regional industry eventsSupport all regional industry events

QuarterliesQuarterlies

Key LearningsKey Learnings

Sales is the economic engine of the Sales is the economic engine of the businessbusiness

Largest agency financial drains – Largest agency financial drains – quarterlies, music & clothingquarterlies, music & clothing

New clubs & programs drive the New clubs & programs drive the business – not instructorsbusiness – not instructors

Top 3 InnovationsTop 3 Innovations

1.1. Utilizing ‘outside eyes’ to evaluate Utilizing ‘outside eyes’ to evaluate our business – Karen Woodardour business – Karen Woodard

2.2. Presenting Les Mills as a business Presenting Les Mills as a business solution solution

3.3. Implemented strategy to break Implemented strategy to break even on quarterly eventseven on quarterly events