California Dreaming - Profitable Group X Events - FILEX 2011

• 1. CALIFORNIA DREAMING

2. DREAMS OF PUMP FOR THE WORLD 3. DREAMS OF GROUP EXCELLENCE 4. DREAM PARTNERS3 5. DREAMS OF CHANGING LIVES TOGETHER 6. PILOT METHODOLOGY 20 Denver Clubs between September - December 2009 2 formats BODYPUMP and BODYFLOW 120 GXIs trained 2 Instructor Updates (October 2009, December 2009) 1 Launch Event (September 2009) 2 Re-launch Events (October 2009, January 2009) 4 to 10 classes scheduled per week per club 7. BODYPUMP HISTORY CLIP 8. INSTRUCTOR CHALLENGE CLIP 9. 11 10. DENVER PILOT RESULTS SUMMARY BODYPUMP format created significantly more member and guest traffic in strengthcategory and increased percentage of male attendees BODYPUMP outperformed both Set and Lift classes combined averaging 75%capacity (30 participants) BODYPUMP was cornerstone of 2 Group X Events - October and January Event Guest Traffic and NMUs were equal to Club Grand Opening status Group X Events were viewed by management as powerful opportunities to createexcitement for team, members and guests 11. EVENT EXELLENCE 12. POWER PLANPREPAREPARTYPROMOTE PROCESS AFTER PARTY 13. POWER 14. GROUP X HAS ENORMOUS POWERA growing body of evidence proves that Group X significantly increases;1. Member Acquisition2. Member Satisfaction3. Member Frequency of Visit4. Member Retention5. Member Referral 15. GROUP X EFFECT ON MEMBER LIFE CYCLE Referral AcquisitionRetention 16. TOP 5 TRENDS FOR GROUP XMEMBER ACQUISTION1. 90% of all exercisers report that they would prefer to work-out in a group2. 60% of members report that Group X is the #1 choice of service or amenity that they are interested in3. 26.4% of new members join to participate in Group X classes4. Multiple Group X Studios with Fantastic Classes is the 2nd most important factor in making a decision to join a health club (behind Professional staff and knowledgeable trainers).5. Increase in Group X participation is a key indicator of club growth and profitability 17. TOP 5 TRENDS FOR GROUP X MEMBERRETENTION & REFERRAL1. Participation in group activities correlates with higher retention.2. Improving the average number of visits per week a member makes to a club by one will lead to a 3% increase in a clubs retention rate.3. Group X members average number of visits per week is 2 versus non Group X