52 nd Annual Meeting of National Association of State Boating Law Administrators September 2011 Dustan McCoy Chairman and Chief Executive Officer Brunswick Corporation Boating in the United States – Common Issues

September Accomplishing Your Mission – Recreational Boating Safety Fatalities / 100,000 Boats

September Average 400, Average 309,000 ’04-’10 -55% Last 5 Years , , , , ,000 Significant Decline in Demand Bottomed in 2010 U.S. Industry Retail Powerboats (1965 – 2010)

September Total Recreational Boats In Use

September Boat Owner Demographics by Boat Type – Any Powerboat

September Average Age of Boats in Use * All Boats includes Outboard, Sterndrive, and Inboard (excludes jet and other forms of propulsion) The average age of boats has increased by 5 years since 1997 Increase is due to higher mix of older boats as industry sales declined from the 70s & 80s. Also reflects people holding on to their boats longer (lower scrappage) through the economic downturn

September No. of adults boating (in millions) % of adults boating Source: NMMA 2010 Reflects Highest Level of Participation Since 2000 U.S. Boating Participation History (1990 – 2010)

September Recreational Boating Participation Past boating participants and people who do not boat total about 200 million people in the U.S.

September Reasons Past Participants Have Not Boated in Past 12 Months More than 50% of reasons are non-monetary Don't know anyone who owns a boat32.4% Reduced income22.6% Time constraints17.3% Higher cost of living17.1% Sold my boat16.2% No longer participate in boating-related activities16.0% Don't/no longer live near water14.7% Health reasons14.2% Lost interest12.1% Unemployed11.5% Lost my boating partner (friend)11.4% Change in work circumstances11.1% Cost of fuel for boat10.5%

September Non - Participants Consideration of Boating Have you ever considered going recreational boating?

September Reasons Why Some Do Not Consider Boating Why have you not considered going recreational boating? 75% of reasons are non-monetary No interest64.9% Don't know anyone who owns a boat39.9% Don't participate water-based recreational activities39.6% Afraid of the water30.7% Health reasons30.1% Did not boat as a child25.5% Time constraints24.6% Cost of boat maintenance21.0% Don't live near water18.5% Other reasons8.7% Cost of fuel6.0% Cost of boating0.0%

September Boating Participation – Exposure to Boating as a Child Drives Adult Participation Childhood Boating Experience Current ParticipantNon - Participant

September Boat Owner Demographics by Boat Type – 2010 Any Powerboat

September Key Take Aways New boat sales are at historical lows Boats in use have started to decline after a 15 year up cycle Powerboat owner’s average age is increasing Age of boats is increasing But – participation is up and growing Opportunity to convert 200 million people to boating participation Focus – Attracting younger people Remove reasons not to participate All races and ethnic backgrounds

September Achieving Industry Focus We all must work together to make boating easy and safe Safe boating 2010 – accidents, injuries and deaths were down versus 2009 Accident factors −Operator inattention −Improper lookout −Operator inexperience −Excessive speed −alcohol

September Achieving Safety Boating is inherently safe Education a key safety accelerator Value of boating safety education 9% of deaths occur when education occurred 6% of deaths occur when NASBLA approved course provided involved All of us in the industry must continue to focus on education

September