TheFrontNine

1.  CustomerCentricityandTheGolferExperience

2.  Shi>sintheGolfEquipmentPurchaseJourney

3.  PrimacyforGolfRanges--"TheSuperDerivaIve"

4.  TheSportsWageringOpportunity--StartsandStops

5.  GolferPerspecIvesonCriIcalIssuesImpacIngtheGame

6.  TheConInuedEvoluIonofPrivateClubs7.  Golfers,TheEconomyandTheStateoftheUnion

8.  FacilityOperatorPressuresandPrioriIes9.  GolfTravel--IndulgenceandLuxurytoEscapetheChaos

HowtheGolfMarketisTrendingintheYearAhead

CustomerCentricityandTheGolferExperience1.

Behavioral/A,tudinalFusionAndMeasurement

Source: 2019 SLRG Golf Omnibus; 2019 ASGCA/SLRG Golf Market Trend Watch

#1InImportanceForGolfFacilityOperators:

! AddiIonalTeeBoxOpIonsthatallowforashortergolfcourse–70%

Nearly6in10golferswitha20+HCPstronglyagreethattheideaofplayinga9-holeroundofgolfisappealingtothem

FLEXIBILITYANDCUSTOMIZABLEEXPERIENCES62%wouldliketoplaymoregolfthantheypresentlydo.

APPMANIA:• GolfLogix• Arccos• TheGrint• GolfShotGPS• 18Birdies

AMBASSADORS/GOLFEXPERIENCESTEWARDS:

•  AGAs&PGAProfessionals

Shi>sinTheGolfEquipmentPurchaseJourney2.

E-COMMERCECOMESOFAGE:

Whereareyoumostlikelytomakeyournextgolfequipmentpurchase?

38% 39%

13%

22%

2013 2019

OVERTHEINTERNE

T

OFFCOURSESPECIALTY

35%ofthoseunderage45

! GolferPurchaseProcessShowsincreasedprominenceofvalued,curatedcontentduringearlyconsideraIonsetformaIon

Source: 2019 SLRG Golf Omnibus

Shi>sinTheGolfEquipmentPurchaseJourney2.

Source: 2019 SLRG Golf Omnibus

59% ofgolfersstronglyagreethat“newgolfequipmentconInuestobecomemoretechnologicallyinnovaIveeachyear…equalinga10yearhighin2013

Golfersin2019are48% more likely toagreethat“buyingtherightnewgolfequipmentcanhelpmetoimmediatelyimprovemygamevs.2012

OEMBrandloyaltyremainsata SIX YEAR low

Shi>sinTheGolfEquipmentPurchaseJourney2.

Source: 2019 SLRG Golf Omnibus

CuraIngtheContent–MostCriIcalInformaIonSourcesThroughoutthePurchaseJourney

TOPTIERo  Demoingequipmentinoffcourseproshops,rangesandoncourse

o  ResearchingandreadingarIclesingolfpublicaIons,andonlinethroughthirdpartywebsites

o  Guidancefromsalesassociatesandteachingprofessionals

o  Talkingtoandobservingfriends/othergolfers

o  VisiIngOEMandretailerwebsites

o  GoogleSearch

o  Golfrelatedtelevisionprogrammingandvideos

ALSOIMPORTANT

Shi>sinTheGolfEquipmentPurchaseJourney2.

Source: 2019 SLRG Golf Omnibus

ExpectedDriverSpendingacrossthe$400thresholdinlockstepwithTM5,M6,CallawayEpicFlash$500MSRP

OverallAnVcipated2019PerCapitaEquipmentSpendingisup+25%vs2018:

MeaningfulShi>sinperCapitaSpendingbyCategoryin2018vs2017forallcategoriesexceptgolfbagsandapparel:

ConInuedGrowthAmongCustomFikngStudios—TowardsVirtualInventory:

! 42%of“engaged”golferswon’tbuynewequipmentwithoutbeingcustomfit

Drivers Hybrids Irons Wedges GolfBalls Shoes Pupers

PuperpriceEXPECTATIONSreach$200

!  Though70%planningtospendthesameormoreisdownfrom78%lastyear—againsuggestsshareofcustomerbaples

Nowat17Studiosandsome30,000 configuraIons

Shi>sinTheGolfEquipmentPurchaseJourney2.

Skill Level/Experience

Product Need

High

Low

Value Premium

SecondHandSamTheAllIn,

ConstantShopper

BuyingaGameTheNotGoodEnoughs

…AnditallmakesSenseasthenewsegmentaIonisvalidatedfurtheracrosschanneluIlizaIon

GreenGrasssIllshowsresonanceamongprivateclub

members

WhattoMakeofourLoveAffairwithGolfRanges–“TheSuperDerivaIve”3.

“AnEnhancedPracVceRange”movesto#1inimportanceamongSuperintendentsevaluaInggolfers’mostcovetedameniIesin2019Survey.

TopGolfisAbout“Community,”EntertainmentandF&B

SaturaIonandShi>ingNon-golferTastes

VS.

TransformaIonofExperienceandMigraIng“TireKickers”IntoTradiIonalGolfers

TopGolftoSurpass50 U.S.LocaIons

Source: 2019 SLRG Golf Omnibus; 2019 ASGCA/SLRG Golf Market Trend Watch

DriveShackTargets15StandAloneMegaRangesby2020

NewYorkCity

TheSportsWageringOpportunity—StartsandStops4.

21%ofgolfersstronglyagreethat“Golfismorefunwhenthereisacashwagerontheline”

!  GreaterInterestAmongPrimarySegments:

o  PrivateClubMembersINDEX149

o  SingleDigitHandicappersINDEX191

o  UnderAge45INDEX122

14 MAY

Source: 2019 SLRG Sports Omnibus, ESPN

TheSportsWageringOpportunity—StartsandStops4.

"The reason we would do it is because we think gaming leads to more engagement."…sports betting in golf as a "second-, third- or fourth-screen experience.”

Source: 2019 SLRG Sports Omnibus, ESPN

Thingstothinkabout:

o  IntegrityFeeso  InfluxofDeliveryMechanisms

!  GolferssIllconsiderthegame’s“purity”amongitsmostsignificantvirtues

FIRSTWAVEOFALLIANCES

GolferPerspecIvesOnCriIcalIssues5.

SOMEBULLISHATTITUDESSTAYTHESAME!

10 Straight Years that95%ofgolfersexpecttoplaythesameormoregolfastheydidayearago

Consistentwith2018,We’veseena-27% Drop since2015ingolferswhostronglybelievethatthegameofgolfis

facingmajorparIcipaIonchallenges

MoregolfersconInuetoseethegamebecoming

More Inclusive and Welcoming thanitwasageneraIonago

Source: 2019 SLRG Sports Omnibus

36%38%

41%

2017 2018 2019

“Golf has become more inclusive and welcoming than it was a generation ago”

GolferPerspecIvesOnCriIcalIssues5.

Source: 2019 SLRG Sports Omnibus

…ButWeSeeSomeMeaningfulShijsInPerspecVvesOnParVcipaVon

In your opinion, which of the following is the most effective way that the golf industry can increase the total number of rounds played?

78%

22%

2019

83%

17%

2018

Bygekngmorenewplayerstotrygolf

ByencouragingexisIngplayerstoplaymoregolf

TheConInuedEvoluIonofPrivateClubs6.

AjerAStrongRecovery,MembershipGrowthHasStalled

Decrease,25%

Decrease,22%

Decrease,21%

Decrease,36%

Decrease,51%

Increase,36%

Increase,37%

Increase,39%

Increase,33%

Increase,19%2011–LOWPOINT

2013–STABILITYACHIEVED

2017–HIGHPOINT

2018–SLIGHTRETRENCHMENT

2019–SLIGHTRETRENCHMENT

TheConInuedEvoluIonofPrivateClubs6.

AjerAStrongRecovery,MembershipGrowthHasStalled…AsWeSeeEvidenceofGreaterFinancialStability:

TheIncidenceofRespondentswhoareconcernedaboutthefinancialstabilityoftheirPrivateClubshasdroppedinoftheeachofthepastsevenyearsfrom36%in2013to22%in2019

o  Consistentwithobserveddropinthosewhoreportthattheirclubshaveaggressivelyreducedthepriceofmembership

TheConInuedEvoluIonofPrivateClubs6.

ButMoreChangeisLikelyAhead:

57% sIllbelievethatprivateclubsmustmakeaggressivechangestoremainrelevantintheyearsahead…unchangedfrom2013

o  “GamificaIon”tojoinindiversifiedprogrammingandfocusonfamily,juniors,women,youngermembersandconvergenceofhome,officeandclub

Golfers,theEconomyandtheStateoftheUnion7.

52%stronglyagreethatthereisnosuchthingasjobsecurity—anelevenpointimprovementsince2010;andallImebest

NearlySIXIN10areveryconfidentthattheywillhaveenoughmoneytoreIreincomfort—upsevenpointsvsayearago

HOWEVER…

THREEYEARLOWingolferswhofeelsignificantlybeperabouttheirfinancialsituaIonin2019thanayearago…downfrom42%to34%

<10% stronglyagreethatpeoplewillgobacktospendingfreelyonluxuriesin2019

FacilityOperatorPressuresandPrioriIes8.

60%

59%

55%

50%

50%

42%

40%

40%

55%

56%

49%

41%

47%

39%

32%

36%

Maintenancecosts(water,inputs,labor)

CompeIngprioriIesforcustomers'leisureIme

Theoveralleconomy

Decliningconsumerinterestingolf

Thelocaleconomy

Timeittakestocompletearoundofgolf

CompeIIonfromotherareafaciliIes

Water(availability,cost,regulaIon)andcapitalprojectcostsanddebt

2019

2018

Q.Mostsignificantissuesthatcanimpactthesustainabilityandfinancialhealthofyourgolffacility

TOP3BOX

In2019,FacilityGeneralmanagersaresignificantlymoreconcernedaboutcompeIngprioriIesforcustomers'leisureImeandthelengthanddifficultyofthegolfcourse

Source: 2019 ASGCA/SLRG Golf Market Trend Watch

FacilityOperatorPressuresandPrioriIes

Q.Which,ifany,ofthefollowingpotenValenhancementswouldbeofsignificantinteresttoyourguestsormembers,and/orincreasetheusageofyouroperaVon?

GolfCourseRenovaVonsAreEvenMoreCovetedin2019astheMostWantedEnhancementforFacilityOperators!

45%

36%

35%

29%

28%

23%

39%

32%

35%

31%

27%

23%

GolfcourserenovaIon

Anenhancedfoodandbeverageexperience

ExpandedJuniorgolfprograms

ClubhouserenovaIon

Familyprogramming

OnlineteeImereservaIons

2019

2018WouldbeofsignificantinterestSUMMARY

Source: 2019 ASGCA/SLRG Golf Market Trend Watch

8.

GolfTravel—IndulgenceandLuxurytoEscapetheChaos9.

BullishSignals,butHeightenedCompeVVon

Iplantospendac>velyonusefulpas>mesinmyre>rement

Golfismypersonaloasisfromthedaytodaychaos

I’mplanningtotakeamajorvaca>onthisyear

IfeelthatIwillbemorecomfortableinmyre>rementthanmyparentsare/were

Comparedtomyparents,I’mmoreselfindulgent

STRONGA

GREEMENT

Source: 2019 SLRG Sports Omnibus

58%(‘19)49%(‘11) VS

54%(‘19)36%(‘09) VS

59%(‘19)37%(‘09) VS

52%(‘19)44%(‘10) VS

48%(‘19)38%(‘09) VS

GolfTravel—IndulgenceandLuxurytoEscapetheChaos9.

OPPORTUNITY:

Source: 2019 SLRG Sports Omnibus

The‘minivacaIonmarket’—24%stronglyagree

thattheyaretakingmorevacaIonsofshorter

duraIonthantheyusedto.

GolfTravel—IndulgenceandLuxurytoEscapetheChaos9.

MOVINGTOTHEOPPORTUNITY:

Source: 2019 SLRG Sports Omnibus