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 RobertsonJill 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 relationships2. Take leadership role3. Maintain and strengthen group fitness4. At least one new product in pipeline5. Establish BODYVIVE™6. Manage music opportunity7. Provide world class marketing support

FIRST,STRENGTHEN THE CORE

7. Advance Les Mills brand with consumers8. Provide world class marketing support 9. Strengthen GFM offer10. Protect intellectual property11. Improve reporting and contract compliance12. Improve HR and finance practice

AND CAPTURE MORE VALUE

1. Achieve targeted growth in USA market2. Achieve targeted growth in LMWC3. Continued growth and profitability in LMB4. Increase investment and growth in Italy5. 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 business2. Maximise existing equipment alliances3. Develop further equipment alliances4. Grow music business

AND GROW CONSUMER AWARENESS

1. Plan for GF programmes for personal use2. Establish an on-line virtual community3. Develop principles of partnering4. Formulate consumer PR strategy and work with

agents market by market

A STRONGER BUSINESSRoyalty revenues up 21% p.a. accumulative Major investment in LMWC, start new clothing businessConsistent 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