WeightWatchers 2005 Annual Report Download - page 5

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employees. Studies have shown that the obesity epidemic
negatively impacts employee productivity and continues to
drive up health care costs, with employers spending up to
52% more in annual healthcare costs on obese employees
versus healthy-weight employees. As a result, the fi nancial
benefi ts of intervention at the employer level are becoming
increasingly attractive to corporate America. Corporate So-
lutions brings Weight Watchers tried and true approaches to
weight management to an entirely new group of potential
customers in the corporate arena.
As our 2005 results indicate, we are achieving success in
building upon the strength of our brand through product
enhancements and innovative services. We are listening to
our customers and making the right decisions on how to
serve them better. We are introducing new customers to
Weight Watchers by expanding our points of contact; and
we are converting our operating success into increased re-
turns for our shareholders.
Our business model offers investors tangible results today
and attractive growth potential in the years ahead. We gen-
erated over $296 million in cash from operating activities in
2005.
As we look to the future, obesity remains a serious health
problem. According to the World Health Organization,
nearly 1 billion people worldwide are overweight, with 300
million people considered obese. In the United States, the
American Heart Association estimates that 65% of the adult
population is overweight or obese. Further, scientifi c studies
have linked obesity to a series of conditions including several
forms of cancer, stroke, type 2 diabetes and heart disease.
Our business model
off ers investors tangible results today
and attractive growth potential
in the years ahead.”
WeightWatchers.com
“Everyone Loves Chicken” cookbook,
sold exclusively by Weight Watchers
Just2POINTS!™ Chocolate Chip &
Peanut Butter Bars, sold exclusively
by Weight Watchers
One of the many products
available through retail outlets
† Burton WN, et al. The Economic Costs Associated with Body Mass Index
in a Workplace. J Occup Environ Med. Sep 1998:40(9): 786-792.