National Ski Council Federation 2013 Annual Summit Meeting

The Snow Sports Market 60K ft View Sales reached $3.4B, up 3% in $ and up 2% in units sold for the 2012/2013 season. 19.3M participants 7M who didn’t participate but consider themselves skiers/riders Channels: Specialty, $1.9B – up 3% in units and up 1% in dollars Internet, $746M - up 8% in units and up 11% in dollars Chain Stores, $840M – down 5% in units and flat in dollars Categories Apparel, $1.5B – up 3% in units and up 3% in dollars Accessories, $1.1B - up 1% in units and up 6% in dollars Equipment, $841M - up 1% in units and flat in dollars Source: *SIA RetailTRAK™ produced by Leisure Trends Group, August to March 2013 – Carryover Included

Market Overview Total Snow Sports Market – equipment, apparel and accessories in all channels Inventories: Finished the 2012/2013 season with $584M in inventory, just 2% higher than 2011/2012 but 29% higher than 2010/2011. Equipment inventories, at $258 were 15% higher than season’s end 2011/2012. Carryover: All carryover sales up 63%, specialty equipment margins down 2% avg. 43.8% (38% for equipment) Weather: On Dec 25, 2012 (51% coverage), snow continued through April Consumers: Slow economic recovery continues, problems remaining include high unemployment and underemployment, stagnant wages, and lack of opportunity for younger workers (unemployment under 25 over 20%).

State of the Snow Sports Market Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

STATE OF THE SNOW SPORTS MARKET Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

STATE OF THE SNOW SPORTS MARKET Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

Market Overview Specialty Regional Sales Regional Specialty Measures Units Sold Dollars Sold 2009/2010 2010/2011 2011/2012 2012/2013 Midwest 5,307,200 4,799,583 4,123,211 4,248,198 $359,477,814 $328,307,772 $309,058,152 $319,151,056 West 9,398,447 10,543,971 9,092,957 9,716,276 $641,831,501 $760,667,206 $721,493,096 $756,946,891 Northeast 6,505,761 7,498,781 6,142,759 6,131,590 $478,751,613 $577,433,113 $516,762,898 $504,512,183 South 5,421,723 5,314,822 4,541,356 4,570,473 $318,491,269 $335,278,668 $307,267,235 $301,069,157 All Regions 26,633,131 28,157,156 23,900,283 24,666,537 $1,798,552,196 $2,001,686,759 $1,854,581,381 $1,881,679,287 Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

State of the Snow Sports Market Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

Market Overview Inventory $ Trends Source: SIA RetailTRAK™ data produced by Leisure Trends May 2013. carryover included

Snow Sports Participants

Resort Visits 1996 - 2013 Source: NSAA Kottke End of Season Survey 1997 - 2013

Snow sports participation trends by discipline SIA/Physical Activity Council 2013 Participation Study. ALL RIGHTS RESERVED.

Alpine ski participant profile Total Alpine Ski Participation 8,243,000 (▼19.2%) Age 2% are ages 6-17, 57% are between 18-44, 16% are 45-64 and 2% are 65+ Total Alpine and Freeski Ski Participation 11,355,000 (▼.4%) Difference between alpine and free? Self-identification with the discipline Alpine Gender 60% Male, 40% Female % alpine skiers with Household Income >$75k 63% % of Core Alpine Skiers with Household Incomes >$100K 45% Bachelor’s Degree or Higher 56% States with the Most Alpine Ski Participants CA, NY, CO, TX, MN % of Alpine Skiers that also Ride a Snowboard 17% Avg. Price paid for Flat Skis (bindings sold separately) at a Specialty Shop $420.24 Avg. Price paid for Ski Systems at a Specialty Shop $426.31 Avg. Price paid for Alpine Boots at a Specialty Shop $320.98 Avg. Number of Days Alpine Skiing in 2012/2013 7.6 SIA/Physical Activity Council 2013 Participation Study. ALL RIGHTS RESERVED.

Freeski participant profile Total Freeski Participation 5,357,000 (▲47%) Age 23% under 17, 50% between 18 and 34, 27% over age 35 Total Alpine and Freeski Ski Participation 11,355,000 (▼.4%) Difference between alpine and free? Self-identification with the discipline Freeski Gender 64% Male, 36% Female % freeskier with Household Income >$75k 60% Freeskiers w/ Bachelor’s Degree or Higher 49% Percentage of Freeskiers of Asian/Pacific Island Decent 15% Percentage of Freeskiers of Hispanic Decent Percentage of Freeskiers of African American/Black Decent 18% Regions with the Most Freeskiers Mid-Atlantic (25%) and Pacific (21%) Percent of freeskier who also Alpine Ski 42% Avg. Price paid at Specialty for Twin-Tip Skis $420.74 Avg. Number of Days Freeskiing in 2012/2013 9.8 SIA/Physical Activity Council 2013 Participation Study. ALL RIGHTS RESERVED.

Snowboard participant profile Total Snowboard Participation 7,351,000 (▼3%) Age 29% are under 17, 51% ages 18-34, 19% between 35 and 54 and only 1% over age 55 Gender 67% Male, 33% Female Bachelor’s Degree or Higher 42% Avg. Price paid at Specialty for a Snowboard $307.96 Avg. Price paid at Specialty for Snowboard Boots $160.29 Avg. Price paid at Specialty for a Snowboard Bindings $148.22 States with the Most Snowboarders CA, NY, WA, CO, PA Average Number of Days Riding 11.3 Percentage of Riders who also Alpine Ski 19% Percentage of Snowboarders of Asian/Pacific Island Decent 10% Percentage of Snowboarders of Hispanic Decent 9% Percentage of Snowboarders of African American/Black Decent Household Income Above $75K per Year 48% SIA/Physical Activity Council 2013 Participation Study. ALL RIGHTS RESERVED.

Cross country participant profile Total Cross Country Ski Participation 3,307,000 (▼23%) Age 33% are under age 24, 42% are between 25 and 44, 20% ages 45-64 and 5% ages 65+ Gender 60% Male, 40% Female % with Household Income >$75k 49% Bachelor’s Degree or Higher 59% % of XC Skiers that also Alpine Ski 41% Where XC Skiers Participate Public Nordic Centers Avg. Price paid for XC Skis at a Specialty Shop $170.43 Avg. Price paid for XC Boots at a Specialty Shop $119.37 Avg. Number of Days XC Skiing in 2012/2013 9.4 % of XC Skiers who are very interested in the Winter Olympics 54% SIA/Physical Activity Council 2013 Participation Study. ALL RIGHTS RESERVED.

The Generations of Snow Sports Gen Y (1986 – 2000) 40% of all snow sports participants are part of Gen Y (Baby Boomers down to <10%) Tech Savvy – Gen Y grew up with the Internet and smart phones Don’t Try to Sell them, Engage them – Gen Y does not respond to top-down sales pitches Team/Group oriented – team sports, organized play dates, and social media make this a generation about inclusion Nurtured by authority, not always respectful to it and often skeptical of it

The Generations Gen Z (2001 – PRESENT) Tech Dependent –connected since birth. Enjoy immediate satisfaction of curiosity and material needs. Expect to have a say in the way things are made and executed. Post 911 – generation that doesn’t remember a world before the war on terror Environmentally/socially responsible – Environmental and social justice threats more real to them Avid Multitaskers– they can do many things simultaneously including several screens, conversations, and walking and chewing gum Raised by Gen X parents – Will they also be rebellious, cynical and independent Diverse – large generation defined by more ethnic and character diversity Socially casual – relationships are not as structured –some researchers question whether this generation will re-define marriage and other standard relationship models Report Coming December 2013

The Generations Gen X (1965 – 1985) Independent/individualist valuing freedom, resourcefulness and self-sufficiency Anti-authority - many in this generation display a casual disdain for authority and structured activities including work hours. Tech adept – we built the Internet. Connected via social media, currently addicted to smart phones Ad Campaigns Aimed at Gen X - Gen X rejected and even ridiculed “Just Say No” and “This is Your Brain on Drugs” but “Where’s the Beef?” and “Just Do It” worked Gen X produced and is raising Gen Z will the same attitudes and traits be passed down? Note - Longitudinal Study of American Youth, began 1986, U Michigan – ongoing work can be found in the Gen X reports

Notable Trends

SNOW SPORTS AND American Inactivity When 28% of Americans are inactive and 26% are obese, can ski/ride clubs sell themselves on benefits of physical activity? 2012/2013 Season Discipline Total Calories Burned 2012/2013 Equivalent in Cheeseburgers Equivalent in Beers Equivalent in Slices of Pepperoni Pizza Alpine Ski 112,764,240,000 161,091,771 751,761,600 375,880,800 Freeski 94,497,480,000 134,996,400 629,983,200 314,991,600 XC Ski 34,194,380,000 48,849,114 227,962,533 113,981,267 Snowboarding 149,519,340,000 213,599,057 996,795,600 498,397,800 Snowshoeing 20,386,740,000 29,123,914 135,911,600 67,955,800 Total Snow Sports 411,362,180,000 587,660,257 2,742,414,533 1,371,207,267 Sources: SIA Participant Study data produced by the Physical Activity Council and Gallup

Hipsters and Urban Woodsmen

Consumer Trends – Look at Me! Source: *SIA RetailTRAK™ produced by Leisure Trends Group, August to December 2012 – Carryover Included

Backcountry Gear Sales in Snow Sports Channels Splitboard Sales Source: SIA RetailTRAK™ data produced by the Leisure Trends Group

Backcountry Equipment Trend Driver Alpine/AT:. alpine DIN boots that can be converted to an AT/Touring sole for backcountry use. These boots also have a walk mode controlled by a lever on the back of the boot.

Opportunities Good Snow = Healthy Sales and Participation – perception based on late season 2012/2013 conditions Late season snow 2012/2013 means cleaner inventory and more in-season gear for 2013/2014 Medical benefits of activity and stress reduction could be translated into increases in sales in the snow sports market. Opportunity to exploit consumer trends in Gen Y and Gen Z Improving economic conditions bring discretionary income dollars back to the snow sports market Please Update