1. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited © 2005 Les Mills International Limited© 2006 Les Mills International Limited Click to edit Master title style Click to edit Master subtitle style © Les Mills International 20041

2. © 2006 Les Mills International Limited Click to edit Master text styles Second level Third level Fourth level Fifth level BUILDING A WORLD CLASS GROUP FITNESS OPERATION

3. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited OBJECTIVE At the end of this session you will be much further along to path to  Having consistently full classes  Developing massive social energy in your facility  Using your members as your best sales force  Retaining members longer  Having consistently motivated staff  Being able to charge more  Making a difference to the health and fitness of your community To enhance your abilities as Group Fitness Managers (GFMs) to use Group Fitness to acquire and retain more members

4. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level ENTER ALL KEY ACTIONS IN YOUR GFM PLANNER TRANSFER THEM TO YOUR PERSONAL DIARY TOMORROW

5. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited FUTURE MARKET FOR GROUP FITNESS  Experience and transformation economies are booming (1)  Wellness spending in the US alone will surpass one trillion dollars by 2010 (2)  Health clubs are at the sharp end of the experience economy - gym attendance is becoming the biggest sport in the world (3) (1) Pines and Gilmour, The Experience Economy 1999 (2) Paul Zane Pilzner; The Wellness Revolution How to make a fortune in the Next Triilion Dollor Industry 2002 (3) Phillip Mills; 2004

6. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited (4) Phillip Mills; 2005 (5) James J. Annesi; Effects of Minimal Group Promotion on Cohesion and Exercise Adherence 1999 (6) IHRSA Retention Report 2004 FUTURE MARKET FOR GROUP FITNESS  Group Fitness is the vanguard of the fitness industry and has huge potential as a form of entertainment (4)  “90% of all exercisers report that they would prefer to workout in a group.” (5)  “Increase in group fitness participation is a key indicator of club growth and profitability” (6)

7. Group Fitness is at the sharp end of the experience economy! CREATING MORE ENTERTAINING EXERCISE ENVIRONMENTS Example: Evolution of the exercycle  1980 Old fashioned stationary bike  1985 Computerized bike  1990 Cardio theater  1995 Spinning class  1999 RPM™

8. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited INTRODUCING LES MILLS INTERNATIONAL  Licensed to over 11,000 clubs in more than 70 countries  Occupying 20% of world’s health clubs’ Group Fitness timetables  Servicing the world with a unique global agency network  60,000 Les Mills certified elite fitness instructors  In excess of 4 million consumers per week doing Les Mills classes  Servicing over 1,200 clubs in USA

9. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

10. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited LES MILLS AUCKLAND – CLUB BASED GROUP FITNESS MODEL FOR THE WORLD  Les Mills World of Fitness, Auckland, New Zealand  11,000 members - Membership average US$80 per month  5,000m 2 / 53,500 ft 2 Fitness Only Club  2,000m 2 / 21,500 ft 2 Group Fitness Area  4 studios – largest is 700m 2 / 7,500 ft 2  Over 150 classes per week  50% of total attendances  65 part time Instructors  7,000 + Group Fitness visits per week

11. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited CALCULATE CURRENT OCCUPANCY  Calculate total square footage of your Group Fitness studio(s)? _______  Divide this number by 40 (1) _______  This number represents your Maximum Class Capacity (MCC) _______  How many classes are at:  75% MCC, or _______  Between 30% - 75% MCC, or_______  Less than 30% MCC_______  Ask yourself these questions:  How much of the prize am I giving up with my present programming?  How much of the prize could I gain with better programming? WORKBOOK SHEET 1 (1) Les Mills International recommend circa 40 square feet per person THE SIZE OF THE PRIZE

12. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited THE SIZE OF THE PRIZE EXAMPLE OF SINGLE STUDIO WITH CAPACITY OF 30  Current weekly attendance=500  Target weekly attendance=1000  500 extra attendances ÷ 1.75 *=285 new members  285 x (cost of membership= $142,500 $500 annualised)  Achieve 75% of income= $106,875  Achieve 50% of income=$71,250  Achieve 35% of income=$49,875 * Average member attendance per week - IHRSA 2004

13. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited THE SIZE OF THE PRIZE EXAMPLE OF SINGLE STUDIO WITH CAPACITY OF 30 How much would you spend to achieve $142,500 extra member revenue?  Increased GFM wages and incentives$6,000  Increased instructor wages and incentives$8,000  Studio improvements$7,500  Additional marketing costs$8,000  Licence fees$2,500  Increased training costs$2,500 TOTAL$34,750 Return on investment (on $142,500) 410% Return on investment (on 50% of income - $71,250) 205%

14. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited THE SIZE OF THE PRIZE ADDITIONAL FACTORS TO CONSIDER IF YOU HAVE VERY BUSY STUDIOS  Independent research confirms that members at Les Mills licensees visit their facilities on average 2.9 times per week*  At Les Mills Auckland, busy Group Fitness studios provided a number of profitable benefits  Improved retention  Ability to increase membership prices significantly over time  New members due to the reputation of Group Fitness  Ultimately, Les Mills Auckland chose to invest in increased Group Fitness space to maximize attendance levels while accessing all the other benefits of group exercise as a competitive advantage * AC Nielsen Survey, 2006

15. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited THE SIZE OF THE PRIZE FOR YOUR CLUB  Add up your weekly class attendances TOTAL ____________  What could this be if your instructors were delivering world class, life-changing experiences every time? POTENTIAL TOTAL ____________  Take the difference between these two numbers, divide it by 1.75 (IHRSA average member weekly attendance) and multiply it by your annual membership rate POTENTIAL INCOME GAIN $ ____________  Assume a 50% success rate of the income gain to be conservative 50% POTENTIAL INCOME GAIN $ ____________ CALCULATE REVENUE WORKBOOK SHEET 2

16. MANY CLUBS JUST WANT TO BREAK EVEN IN GROUP FITNESS WHAT IF YOU WERE THE BEST IN:  Your suburb?  Your city?  Your region?  Your state? WHAT WOULD IT DO FOR:  Your break-even?  Your retention?  Your sales?  Your profit?

17. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited DRIVER THREE RECOGNIZE WHAT IS POSSIBLE WITH GROUP FITNESS LEVITE JCC, BIRMINGHAM, ALABAMA Facility of 2,250 members Only 8% capacity usage in GF 18 months ago Quickly reduced Instructor team from 50–20 people Average attendance in class was 4-8 people Launched Les Mills programs in March 2005 Successful freestyle classes maintained Today 88% capacity usage in Les Mills classes 82% retention 59% of total attendances are from GF

18. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited DRIVER THREE Only one studio available GF Manager negotiated use of other space for classes Deliver 65 land classes per week 45 classes in the studio, 20 in other facility venues Premium priced in the area Very high quality in Instructor team Instructor team to reach 40 people Minimum of 20% male attendance in Les Mills classes Rank in the top 10 out of 250 JCCs in USA RECOGNIZE WHAT IS POSSIBLE WITH GROUP FITNESS LEVITE JCC, BIRMINGHAM, ALABAMA

19. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited THE PLAN IS AROUND 8 KEY ELEMENTS 1. Create a Group Fitness scorecard 2. Maximize your Group Fitness timetable 3. Recruit world class Group Fitness instructors (and keep them!) 4. Organize great Group Fitness instructor training 5. Develop the best Group Fitness studio you can afford 6. Create a Group Fitness marketing plan 7. Plan for Group Fitness success 8. Appoint, or be, a world class Group Fitness Manager

20. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level BUILDING A WORLD CLASS GROUP FITNESS OPERATION KEY ELEMENT ONE: CREATE A SCORECARD

21. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited  Set class-by-class and total weekly targets  Count numbers in every class  Create accurate comparative stats and publish them  If possible, use best digital camera counting technologies available or independent/objective third party manual counts “IF YOU CAN’T MEASURE IT, YOU CAN’T MANAGE IT” THE TEAM CAN’T PLAY TO WIN IF IT DOES NOT KNOW THE SCORE

22. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited PUBLISH COMPARATIVE STATS (SCORES RANKED BY ACTUAL COUNTS) RANKSTTIMEDAYPROGRAMMEACTUALFACTORREVISEDINSTRUCTOR 1 16.10pmWednesdayBODYJAM1941.0194Gandalf 2 16.10pmMondayBODYATTACK1801.0180Mark S 3 16.10pmTuesdayBODYPUMP1171.0117Steve R 4 15.10pmTuesdayBODYCOMBAT1151.6184Joe 5 110.10amSaturdayBODYATTACK972.0194Mark S 6 16.15amTuesdayBODYPUMP952.0190Donna 7 14.10pmSundayBODYPUMP951.6152Lenny 8 17.10pmMondayBODYPUMP912.0182Joe 9 19.10amSaturdayBODYPUMP901.6144Joe 10 16.10pmFridayBODYPUMP881.088Keri 11 16.10pmThursdayBODYATTACK871.087Lisa O 12 15.10pmThursdayBODYPUMP871.6139Donna 13 112.10pmWednesdayBODYPUMP862.0172Keri 14 15.10pmWednesdayBODYCOMBAT861.6138Dan & Rach 15 25.30pmWednesdayBODYATTACK852.9247Glen O 16 112.10pmMondayBODYPUMP792.0158Prue SORTED BY ACTUAL COUNT

23. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited ADJUSTMENT FORMULA TO COMPARE DIFFERENT TIMES, DAYS AND STUDIOS 1. Divide timetable into three or four time zones. Group similarly performing times together to minimize number of zones (which increases statistical validity) 2. Calculate average attendance for each time zone across the week 3. Divide average of biggest time zone by average of each time zone to find factor for that time zone 1.7 2.2 three FactorAverageTime zone Studio 1 two 1.0one 118 70 53

24. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited REVISED SCORES BY TIME ADJUSTED COUNTS

25. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited RANK SCORES COMPARING ACTUAL AND TIME ADJUSTED COUNTS

26. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited CREATE A SCORECARD REPORTING SYSTEM  Ideally use a SCORECARD spreadsheet to calculate attendance KPIs  At a minimum record manual counts for all classes and collate weekly, monthly and quarterly Best practice  Use spreadsheet which contains 12 months of data  Graph trends over 1-3 years  Graph Actuals against Targets

27. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Minimum actions:  Start accurate manual / camera counts immediately  Monitor gross weekly attendances  Set class targets with instructors  Enter class counts and targets into your SCORECARD spreadsheet  Publish results monthly and recognize / reward success SCORECARD ACTION

28. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT TWO: MAXIMIZE YOUR TIMETABLE BUILDING A WORLD CLASS GROUP FITNESS OPERATION

29. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Program development means identifying the the most popular activities people want Functional strength training Mind body Martial fitness Step training Indoor cycling Sports conditioning / HiLo Dance WHAT DO PEOPLE WANT? MODEL FOR PROGRAM DEVELOPMENT Create easy-to-follow, results driven, enjoyable choreography Use current top 40 music with maximum appeal to the widest market Base your program development on commercial reality. Be cautious of short term fads

30. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited THE LES MILLS APPROACH TO PROGRAM DEVELOPMENT Identify the largest market categories Using pre-choreography produced by world-leading instructors Test and refine the programs in live club situations Listen to thousands of songs each quarter for music selection Always base our programs on a commercial program formula Programs developed to meet consumer needs based on independent market research EXAMPLE of Sustainable Group Fit Formulas

31. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited CREATE THE ULTIMATE TIMETABLE The fastest, simplest way to increase weekly attendance is to give more classes to your most popular teachers and programs and less to the less popular Let the public vote with their feet

32. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited IDENTIFY YOUR TOP PROGRAMS Monthly Average Class Attendances by Program ProgramNovember ClassesAct #Avg BODYPUMP28212076 BODYCOMBAT20105453 RPM2798036 BODYATTACK1066967 BODYJAM747668 BODYBALANCE1347136 BODYCIRCUIT1237731 BODYSTEP1136833 Stretch Yoga731345 RUN/JOG/5KG619032 RINGSIDE59419 POWERWALKING76710 Weekly Totals153717947

33. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited EXAMPLE PROGRAM MIX TO DELIVER VARIETY AND CROSS TRAINING  Global benchmark for timetable content  70% - 80% represented by Core programs  10% - 20% represented by Specialty programs  0% - 10% represented by Service programs  Timetable mix can be impacted significantly by:  Building classes which are new to your club’s culture  Developing new instructor talent  Club location e.g. urban or suburban  Local demographics e.g. families or retired people

34. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Amber light classes achieving 30%-75% of target Green light classes achieving > 75% of target INSTRUCTOR FACTORS PROGRAM FACTORS Red light classes achieving < 30% of target Amber light classes achieving 30%-75% of target Poor OK Excellent OK Excellent LES MILLS TARGET MATRIX© RANK CLASS PERFORMANCE TO IDENTIFY OPPORTUNITIES FOR GROWTH

35. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Classes achieving more than 75% of target – “Green light”  Add more classes of the most popular programs and/or  Free up peak timeslots by moving some top performers to shoulder slots Classes achieving 30% - 75% of target – “Amber light”  Review if the Instructor or the program is holding back growth  Take action to train the Instructor or alter programming to maximize attendances Classes achieving < 30% of target – “Red light”  Set timelines for improvement via Instructor training or program changes  Delete if attendance does not meet minimum targets within timelines USE CLASS RANKINGS TO FOCUS YOUR GROWTH ACTIVITIES

36. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited 2. timetable

37. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited TIMETABLE CREATOR FOR PROFESSIONAL LAYOUTS

38. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited TIMETABLE ACTION Minimum actions:  Identify top instructors and programs  Take action on under-performing (red light) classes  Review timetable quarterly to maximize attendances

39. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT THREE: RECRUIT WORLD CLASS INSTRUCTORS (AND KEEP THEM!) BUILDING A WORLD CLASS GROUP FITNESS OPERATION

40. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS TO YOUR CLUB

41. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Find and keep star teachers = attract and keep members A TEAM OF GREAT INSTRUCTORS CAN BRING THOUSANDS OF MEMBERS TO YOUR CLUB!

42. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited CASTING IS EVERYTHING "Never try to teach a pig how to sing It wastes your time and annoys the pig”

43. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited NOTE THE ESSENCE OF THE LES MILLS GROUP FIT FORMULAS  The real weights workout where I feel strong and get challenged  The martial arts workout where I am unleashed  The yoga, tai chi, pilates workout where I feel strong and centre, long and strong  The dance workout where I get high on the feeling of dance  Ride the rhythm for the athlete within  The lively step workout where I get lifted  The cardio conditioning workout inspired by sports training  The low-impact workout that lets you choose just how hard you work

44. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited  Weight trainers and Personal Trainers  Martial arts or combat background, such as kickboxers  Yoga and pilates experience  Dance and acting schools  Triathletes or road cycling specialists  Athletic and dynamic fitness fanatics  Super fit amateur athletes  Specializing in 40+ fitness / expert in seniors programs RECRUIT TO FIT THE ESSENCE OF THE PROGRAM E.G:

45. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited  Performing arts schools  Theater and dance companies  Phys Ed schools  College Recruitment Events  School teachers  Personal trainers/staff  Members SPREAD YOUR NET WIDE TO IDENTIFY POTENTIAL RECRUITMENT POOLS

46. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Golden Rule = See more people START WITH AN END IN MIND HOW MANY NEW RECRUITS DO YOU NEED?  If you need 8 World Class instructors in the next twelve months  Always be on the look out for talent in your recruitment pools  Match recruits with the essences of each program  Hold a recruitment evening, say once per year and be aware that:  20 candidates in a recruitment evening become…  10 recruits to train and send to Module who become….  8 certified Instructors

47. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited RECRUIT WITH PROFESSIONAL TOOLS

48. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Motivate recruits by allowing them to watch examples of the best instructors in the world INSPIRE RECRUITS – SHOW THEM DVD KITS WITH ROLE MODEL INSTRUCTORS

49. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited COMPENSATION SYSTEMS INSTRUCTORS Incentivize world class performance and retain top-performing teachers CREATE A SYSTEM THAT COMBINES FINANCIAL AND NON-FINANCIAL REWARDS

50. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Cost Per Head: Average Class #: Instructor’s Fee: Class: Instructor: $2.00$1.00$0.50 103080 $20$30$40 BODYFLOW® Randy BODYATTACK ™ Nigel BODYPUMP™ Sam CBA Calculate cost-per-head figures for each class HIRE THE BEST - NOT THE CHEAPEST

51. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited WORLD CLASS INSTRUCTORS ACTION Minimum actions  Always be on the look-out for recruits inside and outside your facility  Recruit to fit the essence of your programs  Structure a retention plan – training, rewards, team building

52. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT FOUR: ORGANIZE GREAT INSTRUCTOR TRAINING BUILDING A WORLD CLASS GROUP FITNESS OPERATION

53. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Choreography Build on instructor strengths to create stars Technique “Physical Execution” Coaching “Teaching Skills” Fitness magic “Theatre Skills” Connecting “Communication” FIVE KEY ELEMENTS OF TEACHING

54. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited A QUALITY TRAINING PROCESS  Module training  Certification  Quarterly workshops  Advanced instructor training  Technique intensives  Quality assessments  Team training for quarterly launch  Individual tuition Distributor driven Club driven

55. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited. *Recruitment needs to reflect the essence of each program LES MILLS AND LICENSEES WORK TOGETHER TO CERTIFY INSTRUCTORS 1.Group Fitness Manager selects instructors for Module* 2.Group Fitness Manager prepares instructors for Module 3.Instructors attend Les Mills Module training for 2 or 3 days 4.Group Fitness Manager coaches instructors to be class ready 5.Group Fitness Manager ensures instructors submit videos 6.Les Mills assesses instructor videos up to 12 weeks post Module 7.CERTIFICATION

56. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Assess each instructor at least 6 monthly:  Keeps instructors focused  Allows coaching opportunities  And be a coach, not a policeman Buy a digital video camera – absolute best investment  Training tool only – class numbers must remain the ultimate measure of performance  Instructors can’t be all things to all people - build on their strengths FINDING THE TALENT IS ONLY THE START

57. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Minimum actions:  Create an overall annual training plan for both Group Fitness program teams and individual Instructors  Monitor and promote attendance at quarterlies  Schedule quarterly team and person-to-person training times  Implement a six monthly formal assessment plan TRAINING AND ASSESSMENT ACTION

58. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT FIVE: DEVELOP THE BEST STUDIO YOU CAN AFFORD BUILDING A WORLD CLASS GROUP FITNESS OPERATION

59. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited YOUR STUDIO  Does it look 21st century?  Does it look like a world class destination?  Does it create an incredible sensory experience?  Could changes create wider audience appeal?

60. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

61. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

62. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited  Size  Creative décor  Mirrors  Banners  Water  Flooring  Sound system  Stage  Entrance  Equipment  Waiting area  Lighting  Microphone  Cleaning  Maintenance  Heating/ ventilation STUDIO DESIGN THE PRIORITIES

63. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited STUDIO ACTION Minimum actions  Best quality sound system you can afford  Stage  Décor – lighting and color(s)

64. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT SIX: CREATE A WORLD CLASS MARKETING PLAN BUILDING A WORLD CLASS GROUP FITNESS OPERATION

65. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Power Perfection Renewal Sociability/Fun Conformity High Energy To have fun, be attractive popular & desirable to others Fitting in – being acceptable to others To feel good about myself, to work through my problems To be active, strong energetic & independent Being superior and dominant – socially or physically To achieve the perfect body, maintain discipline & order Source: Essence Research 2004 1. NOTE WHERE YOUR MEMBERS FIT

66. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Power Perfection Renewal Sociability/Fun Conformity High Energy High energy exercise options Wide variety ‘Adrenaline fixes’ Exclusive High profile membership base “Place to be seen ” Best, latest equipment, facilities, technology, body science Efficiency & results Small, safe, comfortable sanctuary Personalised guidance Value for money Open to all Casual atmosphere Local Fun, social atmosphere Variety in group fitness Entertaining Source: Essence Research 2004 2. IDENTIFY WHY YOUR MEMBERS COME TO YOUR CLUB

67. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Source: Essence Research 2004 3. MATCH WHICH GROUP FITNESS PROGRAMS TALK TO DIFFERENT CUSTOMER SEGMENTS Power Perfection Renewal Sociability/Fun Conformity High Energy BODYPUMP ™ BODYATTACK ™ BODYVIVE ™ BODYJAM ™ BODYCOMBAT ™ BODYBALANCE ™ RPM ™ BODYSTEP ™

68. Abs & Butt OR REAP THE BENEFIT OF MARKETING BRANDS WHICH WOULD YOU RATHER PROMOTE? © 2007 Les Mills International Limited

69. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Program Launch Steps Week 1Week 2Week 3Week 4Week 5Week 6 – Launch Complete Module 2 Instructor Training Allocate tracks to launch team Increase internal promotions Contact media Complete Module 1 Instructor Training Get instructors ready Start low key internal promotion Get staff orientated and involved Finalise timetable changes Remember, always plan your launches with specific sales targets for the various target segments i.e. New members (including ‘missed guest’)$$_____ Member renewals$$_____ Member referrals$$_____ Reactivate old members$$_____ MAXIMIZE THE LAUNCH OF NEW PROGRAMS WITH AN EVENT

70. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited ECLUB: YOUR ONLINE MARKETING TEAM

71. © 2007 Les Mills International Limited  LES MILLS™ Group Fit formulas  Quarterly event campaigns  Outdoor campaigns  Imagination campaign  Black and white series  Fantasy campaign  Life changing campaign  What’s in it for me campaign  Shape your future campaign  Tree campaign  And dozens more….. ECLUB - SOME CAMPAIGNS AVAILABLE

72. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

73. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

74. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

75. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited

76. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited ORGANIZE QUARTERLY EVENTS TO RE-LAUNCH LES MILLS PROGRAMS Every three months you can re-invent the wheel, rebuild the excitement, reactive inactive members and increase sales revenue The 2 most powerful words in advertising are “FREE” AND “NEW”

77. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Program Re-Launch Steps Week 1Week 2 - 3Week 3 - 4 – LAUNCH Attend Quarterly Workshop Get instructors ready Allocate tracks to team Co-ordinate rehearsal times Get staff involved in promotion Meet with sales team Organise internal marketing Confirm external marketing Contact media Get the club ready Confirm media Staff dress rehearsals Re-Launch Master Classes Promote results Evaluate results Review goals QUARTERLY EVENTS THE RE-LAUNCH PROCESS

78. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited MARKET EXPERIENCES NOT JUST PROGRAMS

79. © 2007 Les Mills International Limited GROUP FIT P.R.O.F.I.T. CASE STUDY RE-LAUNCH FOR MEMBER ACQUISITION Club of 1,470 members Annual GF re-launch 140 new members USD 8,250 investment USD 85,500 income >10 times payback 4 hour evening concert Theatrical event 400 attendees 200 non-member guests 70% conversion rate Cross-club teamwork www.lesmills.com/groupfitprofit

80. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited JanuaryFebruaryMarchApril MayJuneJulyAugust SeptemberOctoberNovemberDecember 4 Quarterly GF Events 4 Monthly GF Promotions ORGANIZE A GROUP FITNESS MARKETING PLAN

81. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited GROUP FITNESS MARKETING ACTION Minimum action:  Commit to quarterly re-launches as the bedrock of your market plan  Build an annual Group Fitness marketing plan that incorporates quarterly re- launches, class building competitions, charity events, program promotions etc.  Make yourself familiar with the resources available on Eclub

82. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT SEVEN: PLAN FOR SUCCESS BUILDING A WORLD CLASS GROUP FITNESS OPERATION

83. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited PLAN FOR THE YEAR  Agree your Group Fitness Budget for the year with management  Set your attendance and other targets with your instructor team  Measure your success every month against Budget and targets

84. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited YOUR PLAN AT A GLANCE 12 MONTH BUDGET EXAMPE

85. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited MONTHLY HEADLINE REPORT FOR MANAGEMENT AND INSTRUCTORS

86. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Document quarterly results and conclusions succinctly Build awareness of Group Fitness’ contribution to your facility QUARTERLY REPORTING TO MANAGEMENT AND INSTRUCTORS  Budget versus Actual spend  Attendances versus targets  Budgeted versus Actual cost per head  Top performing programs  Worst performing classes and plan of action  Which Instructors have left and why  Instructors certification rate  Instructor satisfaction survey  Number of Instructors recruited  Instructor training update  Initiatives for studio improvements  Marketing promotion results  % of total attendance from GF  % of real estate dedicated to GF  Overall conclusion

87. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited USE REPORTING TO ENCOURAGE PLANNING AND INNOVATIONS Use monthly and quarterly report summaries  To celebrate successes, and  Work with management and instructor teams to plan innovations and solutions which will grow attendances

88. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited PLAN FOR SUCCESS ACTIONS Minimum actions:  Create a Budget to document your plan  Agree your goals for the year with your team  Report on performance monthly and quarterly against targets  Share information to gain ideas from the team, which will grow attendances

89. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level KEY ELEMENT EIGHT: APPOINT, OR BE, A WORLD CLASS GFM BUILDING A WORLD CLASS GROUP FITNESS OPERATION

90. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited AS A GREAT GROUP FITNESS MANAGER YOU CAN CHANGE THE FUTURE OF YOUR CLUB You lead a team which is responsible for bringing thousand of members to your facility Recognize that your impact on facility success can be huge YOU ARE A MAJOR HIRE!

91. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited BRIDGING THREE WORLDS MANAGEMENT, INSTRUCTORS & MEMBERS The goals for GFMs are to:  Increase class numbers in line with targets  Meet or be below budgeted costs The role of the GFM requires you to be effective with 3 different audiences:  Lead your Instructor team to fulfil the potential of Group Fitness  Communicate effectively on the achievements of Group Fitness to management  Ensure your Group Fitness attendees have life changing fitness experiences every time

92. © 2006 Les Mills International Limited FITNESS FORMULAS Click to edit Master text styles Second level Third level Fourth level Fifth level © 2006 Les Mills International Limited

93. LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited GROUP FITNESS MANAGER ACTIONS Commit to:  Being a Coach, not an Ego  Leading your team to access the full potential of Group Fitness  Benchmarking every activity against achieving your plan  Communicating with management to increase support for Group Fitness over time  Delivering extraordinary fitness experiences  Building a strong Vision and sense of purpose with your team to help formulate Group Fitness’ long term goals

94. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited Create a CAUSE not a BUSINESS Tom Peters, US Management Guru ESTABLISH A POWERFUL TEAM MISSION AND GOALS

95. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited MAKING YOUR DREAMS BECOME A REALITY Where do you see yourself?  Ready to sign up  Interested but need more information  Thanks but no thanks – would like to try classes first

96. © 2006 Les Mills International Limited LES MILLS GROUP FITNESS FORMULAS  Click to edit Master text styles  Second level  Third level  Fourth level  Fifth level © 2007 Les Mills International Limited © 2005 Les Mills International Limited© 2006 Les Mills International Limited Click to edit Master title style Click to edit Master subtitle style © Les Mills International 200496