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The State of the Golf Industry

The State of the Golf Industry. Golf Participation. Stocks & Flows. Golf Participants (in Millions) . Beginners (Never played ) 1.5. Returning Participants 2.0. 2010. 2011. -0.4. 25.7. 26.1. Departing Participants -3.9. Source: NGF/Synovate. Short Term Participant Trend.

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The State of the Golf Industry

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  1. The State of the Golf Industry
  2. Golf Participation
  3. Stocks & Flows Golf Participants (in Millions) Beginners (Never played ) 1.5 Returning Participants 2.0 2010 2011 -0.4 25.7 26.1 Departing Participants -3.9 Source: NGF/Synovate
  4. Short Term Participant Trend Participants (MM) 30.0 29.8 29.5 28.6 27.1 26.1 25.7 44% 56% Source: NGF golf participation study
  5. Long Term Participation Trend Participants (MM) 30.6 30.0 28.8 25.7 24.7 24.2 19.7 Source: NGF golf participation study - 1990 is a calculated average of 1989 and 1991
  6. Participant Gains vs. Losses Participants (MM) Recessionary effect Source: NGF golf participation study
  7. Participant Gains Participants (MM) Source: NGF golf participation study
  8. Exclusive Range Participants Age 6+ (millions) Source: NGF golf participation study
  9. Rounds Played – 2011 (Down -2.5% Nationally) (% Change from previous year) Mountain (-2.1%) West N Central (-5.5%) East N Central (-9.3%) New England (-5.1%) Pacific (1.2%) Mid Atlantic (-9.6%) South Atlantic (+3.7%) +2.0% or higher +1.9% to -1.9% -2.0% or lower South Central (+1.1%) Source: Golf Datatech, NGF, PGA of America national rounds played reports
  10. Rounds Volume Rounds (in Millions) 1-yr Change: -2.5% Change ‘05-’11: -7.4% Source: Golf Datatech, NGF, PGA of America national rounds played reports
  11. Other Golf Participants
  12. Demand Takeaways Participation appears to be stabilizing at a new base of approximately 26 million Recessionary effects are lessening – the number of lost golfers are falling Rounds played likely to have bottomed out in 2011 with some recovery expected
  13. Golf Supply
  14. Trend in Course Openings 18-hole equivalents Source: NGF Facility Tracking
  15. Course Closures 18-hole equivalents 2011 Closures: PUBLIC: 131.5 (83%) Daily Fee: 120.0 (76%) Municipal: 11.5 (7%) PRIVATE: 26.0 (17%) REAL ESTATE: 35.5 (23%) (incl. both public and private) Source: NGF Facility Tracking
  16. Net Change in Supply Net Change = openings minus closures (in 18-hole equivalents)
  17. Growth of Golf Facilities Number of facilities Private Daily Fee Municipal Source: NGF
  18. Rounds & Golf Course Supply (The Decade) % Change in Rounds (from previous year) (-0.1%) (-3.0%) (-1.5%) (0.9%) (0.0%) (0.3%) (-0.6%) (-1.8%) (-0.6%) (-2.3%) (-2.5%) Decade -11.2% Rounds Per 18 hole equiv. Decade -12.1% Course Supply (18 hole equiv.) Decade +1.7% Source: NGF/Golf Datatech
  19. NGF Golf Course Supply/Demand Index Index of Golfers Per 18 Hole Equivalent Source: NGF/Golf Datatech
  20. Continued Contraction in Range Supply We have seen very little change in the range size proportions since 2000: 2011
  21. Retail Supply Trend 8.2 1,067 Sq. Ft. (mm) Doors
  22. Retail Consolidation – 2011 Snapshot 1,067 Doors 8.2 mm Sq. Ft. Doors Sq. Ft.
  23. Trend – Doors by Type Doors
  24. Supply Takeaways Golf course market correction slowly continues – should not materially affect rounds played Individual golf course performance should slowly improve as rounds recover and NGF Supply/Demand Index progressing toward historical level Correction in ranges and retail more dramatic, but slowing down
  25. Industry Spending
  26. Domestic – Golf Clubs
  27. Domestic – Golf Balls
  28. Facility Maintenance Budgets 1 (1) Excluding capital expenditures and water
  29. Turf Equipment – Purchase Intent YE’05 YE‘06 YE’07 MY’08 YE’08 MY’09 YE’09 MY’10 YE’10 MY’11 YE’11 YE = Year End MY = Mid Year
  30. Confidence Indices
  31. Consumer Confidence Index Index currently stands at 70.2 – as high as it has been since early 2008 Through March 2012 Source: The Conference Board
  32. Golfer Confidence NGF Golf Consumer Confidence Index Q: How is the economy affecting your spending on golf? “I am playing fewer rounds”- 16% (24% in Q4) “I am delaying golf equipment purchases”- 39% (37% in Q4) “I am going on fewer golf trips”- 32% (34% in Q4) Source: NGF quarterly Core golfer survey
  33. Golfer Confidence Percent of Golfers Reporting Playing Fewer Rounds Due to Economy Source: NGF quarterly Core golfer survey
  34. Golfer Confidence Takeaways Indicators are mostly positive for improvement in golf economy Consumer confidence trending up Golfer confidence trending up Weather recovery in rounds likely
  35. The State of the Golf Industry
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