State of the Industry

Part

icip

an

ts (

MM

)

Source: NGF golf participation study - 1990 is a calculated average of 1989 and 1991

Long-term Participation Trend

Source: NGF golf participation study

Participants (MM) Recessionary effect

Participant Gains v. Losses

+2.0% or higher+1.9% to -1.9%-2.0% or lower

(% Change from previous year)

Pacific(+1.6%)

Source: Golf Datatech National Rounds Played Report in cooperation with PGA Performance Trak and the NGF.Based on a sample of approximately 4,000 reporting facilities

Rounds played – 2012 (up 5.7% nationally)

Mountain+7.0%

W. N Central+7.6%

E. N. Central+10.8%

So. Central(+5.0%)

So. Atlantic(+2.4%)

Mid Atlantic(+10.1%)

New England(+3.2%)

Rounds played – 2012 (Public Facility Concentration 2012 U.S.)

Mid Atlantic

(+10.1%)

West N Central(+7.6%) East N

Central(+10.8%)

Source: Golf Datatech National Rounds Played Report and NGF golf facility database.

Highlighted area contains almost half (47%) of the

nation’s public golf facilities.

Rounds volume

Source: NGF Facility Tracking

Course openings18-hole equivalents

Course closures

Source: NGF Facility Tracking

2012 Closures:

PUBLIC: 139.0 (90%)

Daily Fee: 130.5 (84%)Municipal: 8.5 (6%)

PRIVATE: 15.5 (10%)

REAL ESTATE: 34.5 (22%, incl. both public and private)

18-hole equivalents

Net Change = openings minus closures (in 18-hole equivalents)

Net change in supply

Source: NGF Facility Tracking

18-hole equivalents

Rounds & golf course supply

Source: NGF/Golf Datatech

Course Supply (18

hole equiv.)

Rounds Per 18 hole equiv.

% Change in rounds (from

previous year)(-3.0%) (-1.5%)(0.9%) (0.0%) (0.3%) (-0.6%)(-1.8%)(-0.6%)(-2.3%)(-2.5%)

Decade-12.1%

Decade +1.7%

(5.7%)

We have seen very little change in the range size proportions since 2000:

2012

Continued contraction in range supply

Retail supply 5-year trend

Retail – 2012 snapshot

1,078 Doors

8.5 mm Sq. Ft.

Domestic – club shipments

Domestic – ball shipments

(1) Excluding capital expenditures and water

Facility maintenance budget index

YE = Year EndMY = Mid Year

Turf maintenance equipment

Consumer Confidence Index

Source: The Conference Board

Through May 2013

Index currently stands at 76.2

90 = normal

Consumer spending

Source: Gallup

May -13$92

Source: Bureau of Economic Analysis

Consumer Spending Improving

Real Personal Consumption Expenditure Index

[Index numbers, 2005=100] Seasonally

adjusted

Source: S&P 500 / Case Shiller

Recessionary Impact on Net Worth

S&P 500 and Case-Shiller Home Value Indices

S&P 500 Index Case-Shiller Home Value Index (year 2000 as 100)

Overall takeaways

Golf continues to slowly recover from the effects of the Great Recession

Outlook for 2013 is modestly – and cautiously– optimistic

Golf’s economic recovery remains dependent on the recovery of the overall economy and continued increases in consumer confidence and spending

State of the Industry