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