Natalie Baker and Stephanie McKenzie December 2007 – January 2008 Understanding the strength of the Les Mills Global Brand FINAL PRESENTATION Natalie Baker and Stephanie McKenzie December 2007 – January 2008

Method and Respondent Sample Online survey methodology. Survey period December 2007 – January 2008. Email invitations were sent out to respondents via Les Mills agents in each of the respective markets. Total number of respondents per market include – Global sample size, n=3080. Note, this sampling method means respondents attend fitness centers that offer Les Mills programs. As such, all respondents have had the opportunity to be exposed to the Les Mills brand prior to the research. Results are weighted to the general population -specific to each market. Understanding the Strength of the Les Mills Global Brand

More than half report unprompted awareness of either the Les Mills brand or Les Mills group fitness. Bodysystems is also top of mind for 17% of respondents when they think about group fitness classes. Q8 When you think of group fitness classes, which brand first comes to mind? Base: Only those respondents who participate in group fitness n=2619 Understanding the Strength of the Les Mills Global Brand

Germany, Australia and Netherlands show strong unprompted awareness of Les Mills Q8 When you think of group fitness classes, which brand first comes to mind? Base: Only respondents who participate in group fitness n=2619 Understanding the Strength of the Les Mills Global Brand

Prompted brand awareness is strong – 81% are aware of Les Mills when asked Q12 Before today, were you aware of Les Mills? Base: All respondents n=3080 Understanding the Strength of the Les Mills Global Brand

Q12 Before today, were you aware of Les Mills? High awareness (69%) for Les Mills amongst those who are non Les Mills participants Q12 Before today, were you aware of Les Mills? Note: Les Mills participants based on those that have participated in Les Mills group fitness in past 2 weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Respondents most strongly associate the Les Mills Brand with being ‘good for everybody’ and ‘challenging’ Base: All respondents n=3080 Mean strength of association on a 5-point scale where: 1 = Do not at all associate strongly with Les Mills; 5 = Very strongly associate with Les Mills Understanding the Strength of the Les Mills Global Brand

Across all markets, there is strong association of Les Mills brand with ‘good for everybody’, ‘Challenging’ and ‘Energetic’ Q31 Please indicate how strongly you associate each of these statements with Les Mills. Base: All respondents n=3080. Note: Belgium not included due to small sample size Understanding the Strength of the Les Mills Global Brand

Les Mills group fitness shows strongest association with encouraging respondents to feel they are “doing something good for myself” Perception of Les Mills group fitness programs brand associations (%)* *Q30 Please think about Les Mills group fitness programs and tell us whether you think the statements are true or untrue Base: All respondents n=3080 Understanding the Strength of the Les Mills Global Brand

Of all Les Mills group fitness programs, awareness of BODYPUMP™ is strongest at 94% Q13 Which of the following fitness classes or programs are you aware of? (%) % BODYPUMP™ BODY-COMBAT™ BODYBALANCE™/ BODYFLOW™ BODYSTEP™ RMP™ BODYJAM™ BODYATTACK™ BODYVIVE™ Other Base: All respondents n=3080 Understanding the Strength of the Les Mills Global Brand

Both Les Mills Participants and non Les Mills Participants have strong awareness of BODYPUMP™ Q13 Which of the following fitness classes or programs are you aware of? (%) Note: Les Mills participants based on those that have participated in Les Mills group fitness in past 2 weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Strongest participation Les Mills group fitness program, BODYPUMP™ at 88% Q14 Have you ever participated in any of the following Les Mills group fitness programs?(%) BODYPUMP™ BODY-COMBAT™ BODYBALANCE™/ BODYFLOW™ BODYSTEP™ RMP™ BODYATTACK™ BODYJAM™ BODYVIVE™ None Base: Only those that participate in group fitness programs n=2595 Understanding the Strength of the Les Mills Global Brand

‘Heavy’ gym attendees are more likely than all others to have ever participated in Les Mills group fitness programs Participation in Les Mills group fitness programs by level of gym attendance (%) Indicates significant increase compared to total Indicates significant decrease compared to total Base: Only those that participate in group fitness programs n=2595 Note: Significant difference at 95% level of confidence Understanding the Strength of the Les Mills Global Brand

The greatest share (27%) report attending their club 5-6 times per week. One quarter (24%) attend 3 times weekly. Similarly, one quarter attend Les Mills group fitness programs 3 times weekly. Of those that attend their club at least once per week, the average rate of club attendance is 4.4. Overall, on average global participants attend 3.4 Les Mills classes at their health club per week How often do you visit your club for a workout? 2007 How regularly do you visit to specifically participate in a Les Mills group fitness program? 2007 Base: All respondents 2007 (n=3080); Base: (n=2491), Understanding the Strength of the Les Mills Global Brand

Non Les Mills participants have greater interest in participating in BODYPUMP, BODYBALANCE, RPM and BODYVIVE compared with Les Mills participants Q24 How interested are you in participating in the following Les Mills group fitness programs? (%) Base: Top 2 box on a 5 point interest scale Note: Les Mills participants based on those that have participated in Les Mills group fitness in past 2 weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Level of interest in participating in Les Mills group fitness programs by those who have not participated in Les Mills group fitness programs in the past two weeks Note: Interest is based on top two box on a 5 point interest scale Participation: Those that have not participated during the last 2 weeks but are aware of the program Understanding the Strength of the Les Mills Global Brand

The nature of Les Mills group fitness class is the key driver of participation (79%) followed by the instructor’s ability (69%) and the class time (64%) Q7 How important are the following factors in influencing your decision as to which group fitness program to attend? (%) Base: All respondents n=2619 Understanding the Strength of the Les Mills Global Brand

Q17 How satisfied are you with Les Mills group fitness programs? (%) 78% of participants are highly satisfied with BODYBALANCE™/BODYFLOW™ and BODYPUMP™; 58% of respondents are highly satisfied with BODYVIVE™ Q17 How satisfied are you with Les Mills group fitness programs? (%) BODYBALANCE™/ BODYFLOW™ BODYPUMP™ BODYATTACK™ BODYCOMBAT™ BODYJAM™ BODYSTEP™ RMP™ BODYVIVE™ Base: those that participated in Les Mills group fitness programs in the last 2 weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Satisfaction with Les Mills group fitness programs is higher amongst those who report heavy gym attendance Satisfaction with Les Mills group fitness programs by level of gym attendance (%) Base: those that participated in Les Mills group fitness programs in the last 2 weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Satisfaction with Les Mills group fitness programs – verbatim feedback “What specifically about Les Mills group fitness programs are you satisfied with?” “Overall the music and the choreography but more importantly the way the Instructor delivers it!” (Australia) “What specifically about Les Mills group fitness are you satisfied with?” “The music, nice and arousing, good choreography, enjoyable exercises, the instructors provide lots of motivation…you find yourself pushing yourself really hard for a whole hour with a group of people around you…if that's not motivation, what is?!” (Netherlands) “The choreography of the moves, the music, the total atmosphere, the skill of the instructors. The high & low levels taught that makes it comfortable for ALL skill levels and ages to participate!” (USA) “Music, exercises, motivation of the group” (Belgium) Understanding the Strength of the Les Mills Global Brand

Nearly all (99%) current Les Mills participants in Germany are likely to continue participating in Les Mills programs Q22 Over the next 12 months, how likely are you to continue participating in any Les Mills group fitness programs? (%) % Top 2 box on a 5-point scale = Very likely + likely Base: Those that have participated in group fitness programs in the past two weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Participants in Germany are most likely to recommend Les Mills group fitness programs Q23 And how likely would you be to recommend Les Mills group fitness programs to others? (%) Base: Those that have participated in Les Mills group fitness programs in the past two weeks n=2491 Understanding the Strength of the Les Mills Global Brand

Heavy gym attendees are more likely to recommend Les Mills group fitness programs (85% “very likely”) Likelihood to recommend Les Mills group fitness programs by gym attendance Indicates significant increase compared to total Indicates significant decrease compared to total Base: Those that have participated in Les Mills group fitness programs in the past two weeks n=2491 Note: Significant difference at the 95% level of confidence Understanding the Strength of the Les Mills Global Brand

The majority of respondents ‘at least agree’ that they would consider changing clubs if their club stopped running Les Mills group fitness programs Q25 “I would consider changing clubs if my club stopped running Les Mills group fitness programs” USA Global Base: Club Members: USA survey respondents 2006 (n=1002); Global survey respondents 2007 (n=2619) NOTE: **Sample populations not directly comparable. Comparisons should be considered indicative only.** Understanding the Strength of the Les Mills Global Brand

Les Mills is communicating well with respondents – the large majority (71%) feel they are kept well informed of Les Mills’ program news Q26 “Do you feel you are kept well informed of Les Mills’ program news?” Base: All those that participate in group fitness n=2619 Understanding the Strength of the Les Mills Global Brand

Strong attendance at quarterly launches of new Les Mills group fitness classes Q27 “Do you attend the quarterly re-launches of new Les Mills group fitness classes?” Base: All those that participate in group fitness n=2619 Understanding the Strength of the Les Mills Global Brand

Brazil and Germany have the highest attendance at the quarterly re-launches of new Les Mills group fitness classes Q27 “Do you attend the quarterly re-launches of new Les Mills group fitness classes?” Base: All those that participate in group fitness n=2619 Understanding the Strength of the Les Mills Global Brand

Verbatim responses – what other types of programs would you like to see offered by Les Mills? “A program that's focused on kids” (Brazil) “A program for children!” (Switzerland) “'A program with Brazilian rhythms, rhythms that are more Latin like sambas, …this is something that would encourage more men to go to the classes” (Brazil) “Specific classes for children, people with physical handicaps, very obese people. Classes in a swimming pool for example” (Netherlands) “‘A program along the lines of BODYBALANCE but which emphasizes yoga or tai chi” (France) Understanding the Strength of the Les Mills Global Brand

Respondents are most interested in receiving nutritional advice (72%) and health related advice (68%) from Les Mills Top ten offerings participants are interested in receiving from Les Mills (%) Q32 How interested would you be in the following from Les Mills if your health club/fitness centre offered them? % Top 2 box on a 5-point interest scale Base: All respondents n=3080 Understanding the Strength of the Les Mills Global Brand

Key points and Moving Forward Highest levels of satisfaction with BODYBALANCE™/BODYFLOW™ and BODYPUMP™. Address lower levels of satisfaction with BODYVIVE™. Some Programs delivering strongly with high participation and satisfaction e.g. BODYPUMP™. Opportunity to drive participation in highly satisfying programs such as BODYATTACK™ and BODYBALANCE™/BODYFLOW™ where there is also high interest Positively, the majority of Les Mills Group Fitness participants report intention to continue participating and high likelihood to recommend In terms of Les Mills additional offerings, there are opportunities to: Introduce new programs targeting children and/or those with physical handicaps Increase offerings of service e.g. providing nutrition/health advice Introduce Les Mills clothing in markets where there is strong brand loyalty e.g. Germany and where there is high satisfaction e.g. Brazil Understanding the Strength of the Les Mills Global Brand