SHARING OUR PLANNING AND COMMITMENTSFOR THE COMING YEAR

WE WILL BE

A TOP 5 HEALTH AND FITNESS BRAND WITHIN REACH OF AllHOW WILL WE KNOW?

1.) WE WILL APPEAR ON “TOP 100 GLOBAL BRANDS” SURVEY2.) WE WILL BE ABLE TO COUNT MORE THAN 25M DIRECT CUSTOMERS EVERY WEEK USING LES MILLS TO EXERCISE3.) CORE GLOBAL BUSINESS REVENUE WILL GROW FROM USD70M TO MORE THAN USD500M; DELIVERING STRONG PROFITABILITY

OTHER INITIATIVES ADD HUGE ADDITIONAL POTENTIAL4.) WE WILL BE IN EVERY MARKET IN THE WORLD

THE BUSINESS MODEL

LES MILLS HEAD QUARTERS IN NEW ZEALAND

AGENTS INDUSTRY LEADERS IN THEIR MARKET

HQ

THE PATH

THE LES MILLS GROUP

Les Mills International

Les Mills Merchandise Les Mills Media Les Mills Baltic

Les Mills Clothing (JV)

Les Mills West Coast

Staff x 2Revenue x 3 since Opio

THE BOARD OF DIRECTORS

Brian Kreft (Chairman)

Nigel Champion

Phillip Mills

Steve Renata

Bill Robertson

Jill Tattersall

AND SUBSIDARIES

Les Mills International

Les Mills MerchandiseIan Ormiston

Les Mills MediaMalcolm Black

Les Mills BalticJesper Magnusson

Les Mills West CoastAndrew Griffiths

FIRST, STRENGTHEN THE CORE

1. Strengthen key relationships

2. Take leadership role

3. Maintain and strengthen group fitness

4. At least one new product in pipeline

5. Establish BODYVIVE™

6. Manage music opportunity

7. Provide world class marketing support

FIRST,STRENGTHEN THE CORE

7. Advance Les Mills brand with consumers

8. Provide world class marketing support

9. Strengthen GFM offer

10. Protect intellectual property

11. Improve reporting and contract compliance

12. Improve HR and finance practice

AND CAPTURE MORE VALUE

1. Achieve targeted growth in USA market

2. Achieve targeted growth in LMWC

3. Continued growth and profitability in LMB

4. Increase investment and growth in Italy

5. Help drive growth and return in remaining markets

6. Effective representation in India and Greece, strategy for Eastern Europe

THEN, LEVERAGE FROM STRENGTHS

1. Establish clothing business

2. Maximise existing equipment alliances

3. Develop further equipment alliances

4. Grow music business

AND GROW CONSUMER AWARENESS

1. Plan for GF programmes for personal use

2. Establish an on-line virtual community

3. Develop principles of partnering

4. Formulate consumer PR strategy and work with agents market by market

A STRONGER BUSINESS

Royalty revenues up 21% p.a. accumulative

Major investment in LMWC, start new clothing business

Consistent investment in product (15% of sales) and marketing (12% of sales)

Profitability improving – EBIT 15%

A stronger more sustainable business

Together, well on way to 15K/4P/10M by 2010 ---- and being a top 5 health and fitness brand by 2015

SPOTLIGHT ON KEY INITIATIVES

POS or in-club merchandising

IP protection

Reporting

Partnering principles

Clothing

Online strategy