Trends Update

1. Trends Update Henry DeLozier, Facilitator Principal, Global Golf Advisors presented by:

2. Compensation & Benefits Trends Shawn Six, Principal, Industry Insights presented by:

3. Employee compensation reported by multi-course owners: • increased at 3% to 4% annualized rate from 2006 - 2008 • this is slower than 4%-5% rate experienced in 2004 - 2006

4. Healthcare costs continue to skyrocket at 3 - 4 times the rate of inflation Responding multi-course companies reported an avg.increase in healthcare premiums of 14.6%

5. Nearly every responding company has taken steps within the past year to control costs of providing medical insurance • The three most popular steps are: • increasing employee contribution • increasing deductibles • increasing out-of-pocket maximums

6. High deductible plans tied to Health Savings Accounts (HSA) are becoming more popular One-quarter of responding companies reported offering HSAs in 2008 - up from only 6% in ‘06

7. Course & Real Estate Trends Stephen Johnston, President/Principal Global Golf Advisors presented by:

8. Developer Golf Course Issues as they relate to subsidies and turnover • CDD related issues for property owners • Trends in rounds in economic downturn • Private club issues and trends • Current operational issues related to public courses in today's economic climate

9. Food and Beverage Trends Dana Johnston, VP and GM, entegra presented by:

10. There are different ways to analyze and compare price increases / decreases • CPI (Consumer Price Index) – measures the change in the prices paid by urban consumers for a representative basket of goods and services (finished goods). “The CPI is generally the best measure for adjusting prices to consumers when the intent is to allow consumers to purchase, at today's prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period.” • PPI (Producer Price Index) – measures the average change over time in the selling prices received by domestic producers for their output; the prices included in the PPI are from the first commercial transaction for many products and some services (raw materials). “As the basis for contract escalation. PPI data are commonly used in escalating purchase and sales contracts. These contracts typically specify dollar amounts to be paid at some point in the future. It is often desirable to include an escalation clause that accounts for increases in input prices.” • PPI is a better index to use due to its level of detail and ability to mirror commodity markets closer than CPI. http://www.bls.gov/cpi/cpifaq.htm#Question_1 http://stats.bls.gov/ppi/ppifaq.htm#2

11. Food CPI, Prices, and Expenditures: CPI for Food Forecasts 2008 CPI currently reflects 4.5-5.5%

12. PPI and CPI Overlay Over the past 3 years, there have been 2 times when PPI materially out paced CPI. These are times when food margins must be managed more closely as pricing opportunities will not be able to keep up with food cost increases. Through April 2008

13. The Forces Pushing UpCommodity Prices • High energy prices • Biofuel policy (U.S. ethanol and biodiesel mandates and subsidies) make food (corn and edible oils) an attractive source of energy. • Increasing demand for energy and agricultural commodities by developing countries (BRIC). • Production growing slower than demand, depleting world stocks of key commodities. World wide acreage response limited due to limited resources: land, water and weather. • Weather • Weak U.S. dollar is supportive for U.S. exports despite record high domestic prices. • Influx of Investment dollars into commodity markets and incremental volatility

14. What can we do now??? • Manage menus (limited impact long term due to widespread reach of anticipated inflation) • Manage portion sizes much as manufacturers and restaurant chains are beginning to do already. • Create an absolute focus on compliance to whatever Food and Beverage program you are committed to (whether in-house or third party) • Revisit financial modeling. It is unlikely that you will be able to maintain the same “Cost of Sales” strategy and guidelines for your food and beverage operations tomorrow that you have in place today. This will likely have an overall adverse impact on your margins.

15. PerformanceTrak Update Joe Rice, Chief Marketing Officer NGCOA presented by:

16. STEADY GROWTH: • 41 CGMs live and reporting via Golf Datatech (GDT) or PGA portals • New markets launching regularly • Avg. more than 1,000 courses supplying rounds/golf fee revenue each month • ONGOING ENHANCEMENTS: • Steering Committee activated and engaged • Agreement on definition for calculating rounds capacity • Consistency in branding, dual websites’ general navigation, etc. • POSITIVE COLLABORATION: • Among NGCOA, GDT and PGA

17. Rounds & Revenues Update Eric Affeldt, CEO and President ClubCorp presented by:

18. Agronomy Trends Scott Cole, Head of Golf National Accounts Syngenta presented by:

19. Fertilizer prices, which had been stable for many years, now are increasing weekly, sometimes daily due to increasing agricultural commodity prices and a rise in demand. Because natural gas is a main input to nitrogen-based fertilizers, prices are not expected to decrease in the foreseeable future.

20. Most of the world’s agricultural chemical manufacturers are expected to raise the prices of plant protectant products by 10% to 20% next year as record oil increases the cost of production and raw materials.

21. “Early Order” and “Early Booking” programs will become prominent in the fourth quarter of 2008 from both chemical and fertilizer manufacturers. These programs will present the opportunity for multicourse operations to “lock in” some maintenance costs for 2009.

22. Credits: http://www.bloomberg.com/ California Farm Bureau Federation

23. Golf Maintenance/Equipment Trends Mike Happe, GM, Commercial Business The Toro Company presented by:

24. The Toro Company Golf Maintenance - Equipment & Irrigation Michael Happe General Manager, Commercial Business

25. Turf Maintenance Issues facing Golf Business • Rising Cost Inputs Combined with Tightening Operational Budgets • Product Costs • Labor Costs • Fuel Costs • Value Innovation – Productivity is More Important Than Ever • “Green” Regulation / Appetite Grows • Fresh Water Scarcity, Water Quality, Regulations • Alternative Fuels, Wireless Technology

26. Combatting Rising Costs • Product Costs • Supplier Partnerships – Leverage Cost Reduction & Quality • Leaning out the Supply Chain - Value Stream Mapping • Efficient Engineering without Sacrificing Quality - DFMA • Labor Costs • Penetration of Fleet Management Tools • Focus on Machines Which Optimize Productivity • Fuel Costs • On the Look for Fuel Efficient Solutions • Operator Efficiency Training

27. Innovation: Better Tomorrow = More for the $ • Past Innovation focused on Performance • Present Innovation Focused on Productivity, Turf Health, Lower Cost of Ownership • Future Innovation Focused on Alternate Power & Total Cost of Ownership

28. Water, Regulations & The Environment • Water as a Scarce Resource • Importance of Sensing Will Increase – Make the Right Decisions Sooner • Precision Irrigation • The Right Amount at the Right Time • Drip Irrigation Could Rise in Select Golf Environments • Managing Water Quality Will Take More Work • Irrigation System Compatibility • Equipment Wash-down • Country & State Specific Regulations Increase • Hazardous Substance Restrictions - RoHS • Emission Compliance Increasing – Japan Engine • Going Green • Returnable Packaging • Alternate Power Technology • Biodiesel Compatibility

29. Equipment Trends Robert McElreath, VP of Global Marketing ClubCar presented by:

30. Commodity Cost Trends

31. Cost Management Internally Lean Six Sigma Suppliers Lean Processes Mitigating Actions

32. Technology Development Hybrid concept vehicles for 2008 trade shows Hydrogen fuel cell Solar with Lithium Phosphate Batteries

35. Golf 20/20 World Golf Foundation Steve Mona, CEO presented by:

36. World Golf Foundation: • What it is and how it serves the game of golf • Why MCOs and suppliers should be informed

37. Golf 20/20: • New strategic direction • Specific areas of focus • Forum November 11 • How MCOs and suppliers can play a role