Industry Presentation July, 2017 Increasing Participation in Recreational Fishing Industry Presentation July, 2017

FISHING PARTICIPATION 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Participation 47.2M Participants 2006 49.7 million participants 18.3 percent of Americans ages 6+ 47.2 million Americans participated in fishing in 2016, up slightly from 45.7 million in 2015. 2007 51.8 million participants 18.7 percent of Americans ages 6+ 2008 48.2 million participants 17.2 percent of Americans ages 6+ 2009 48.0 million participants 17.0 percent of Americans ages 6+ Children 2010 45.4 million participants 16.0 percent of Americans ages 6+ 38.7% of new fishing participants were ages 6 to 12, and 83% of adult fishing participants fished as children. 2011 46.2 million participants 16.2 percent of Americans ages 6+ 2012 47.0 million participants 16.4 percent of Americans ages 6+ 2013 45.9 million participants 15.8 percent of Americans ages 6+ What is the state of recreational fishing in the U.S.? And how does the rate of participation affect what we do as an industry, as businesses, and as conservationists? In 2016, 47.2 million Americans, ages six and older, participated in fishing. Participation was relatively flat between 2013 and 2015. The last time we were over 47 million was in 2009. 2014 46.0 million participants 15.8 percent of Americans ages 6+ Freshwater 2015 45.7 million participants 15.6 percent of Americans ages 6+ Nearly 79% of participants first fished in freshwater. 2016 47.2 million participants 15.4 percent of Americans ages 6+ 2016 Special Report on Fishing

+ THE CURRENT SITUATION 47m ANGLERS 15.9% of the U.S. Population CURRENT PARTICIPANTS: 47m ANGLERS 15.9% of the U.S. Population 87m BOATERS 27% of the U.S. Population 65% 39% 45+ White, Non-Hispanic 77% CHALLENGES: Current fishing participants are Baby Boomer, white males. This poses a challenge because as a whole our country’s demographics are rapidly changing. In the very near future, our current customer base will be a minority population. + Aging population Increasing Diversity Sources: RBFF/Outdoor Foundation, NMMA, USFWS, USCG

THE LEAKY BUCKET 6.1 million 4.6 million new/returning participants Our sport is like a leaky bucket. Although there were 6.1 million new and returning fishermen in 2016, we lost 4.6 million people who had fished in previous years and did not return. That’s a ratio that will not sustain our businesses. 4.6 million lost participants in 2016

2021 2019 2017 THE GOAL: INCREASE PARTICIPATION Our industry is facing an incredible challenge. Current participation trends show younger, more diverse audiences are reluctant to take up fishing and boating, all while older white males (our average customer) are aging out of the sport. To address this situation head-on, the Recreational Boating & Fishing Foundation (RBFF) has embarked on a grand effort to grow fishing participation – from the current 47.2 million anglers to 60 million anglers in 60 months (by the end of 2021).

$10B Annual Increase in Economic Contributions from Anglers 160 155 150 145 140 135 130 125 120 115 110 105 100 An increase in participation means more customers for our businesses including increased tackle and equipment sales, more charters and guided trips, and support for local economies including hotels and restaurants. Annual Increase in Economic Contributions from Anglers Annual Increase in Economic Contributions from Boaters

518M in revenue for state fish and wildlife agencies over the next five years The money collected from the sale of fishing licenses and boat registrations is provided to state fish and wildlife agencies for their habitat and species management programs. More fishing license and boat registration purchases translates to more funds for states to protect our aquatic natural resources. This includes improving access, better habitat management and fish stocking. And when fishing improves, it’s more fun to go fishing with family and friends. It’s a circle of sustainability: More Customers = More Conservation = Better Fishing = More Customers

= 1 license 1.68 participants FISHING LICENSES VS PARTICIPATION 2016 – 28 million licenses sold translates to 47.2 million participants How is this all being measured? The number of fishing licenses sold is the yardstick for measuring participation. However, because not all anglers are required to buy a license (in some states, youth and seniors are exempt), RBFF developed a formula to capture overall participation rates: 1 license = 1.68 participants This calculation was created using 11 years of historical fishing license data and has been in use since 2016. 2021 – selling 35.7 million licenses translates to 60 million participants

Introduce them to fishing Bring them back to fishing Recruitment Introduce them to fishing Retention Reaching 60 in 60 will take a three-pronged approach when thinking about someone’s current relationship to fishing – it’s called ‘R3.’ Recruitment focuses on those who have never been fishing and are being introduced to it for the first time. Retention aims to keep anglers who have participated in the sport coming back year after year. Reactivation attempts to bring people back whose participation has been interrupted for more than a year. Keep them fishing Reactivation Bring them back to fishing

IT’S TIME TO PATCH THE HOLES Remember our “leaky bucket” problem? For the past year, efforts have been underway to patch the holes. State and Federal agencies, as well as non-profit groups, are evaluating their existing fishing education programs and events to understand if they are actually helping to grow participation over the long term. Are they converting a one-time try experience into a year-after-year activity? Do recruitment programs lead to retained anglers and license purchasers? If not, how can those programs be enhanced to keep people coming back to the sport? State agencies are also doing business differently. They are hiring people with new skills (many of them marketing-driven) to be R3 coordinators for their states. They are looking at license buyers as more than just fishermen, but as customers. They’re investing resources into changing their customer experiences – from the license purchasing process and fees, to their communication channels (such as social media and email marketing). Federal agencies are looking at ways to invite more people to the National Forests, the National Parks and our marine sanctuaries – not just to look at them, but to go fishing, boating, hiking and biking in them. In 2015, the ratio of new to lost anglers was higher – 6.1 million new/returning versus 6.5 million lost (as opposed to the 4.6 million lost in 2016). We’re already closing in on that gap.

HOW DOES THE INDUSTRY FIT IN? Our industry also needs to play a part. Manufacturers, retailers, media, guides/outfitters/charters…as businesses we have a direct and powerful connection with customers. Most of our customers are avid anglers already. But with all the efforts by other groups to recruit new fishermen and reactivate those who have lapsed, we need to find new ways to open our doors and welcome newcomers and a diversified audience. The American Sportfishing Association (ASA), our industry trade association, has been working with RBFF on how the businesses of recreational fishing can be better partners in the 60 in 60 effort. They have put together some tools and tactics (including this presentation) that will help expand how our entire industry thinks about our customer base, and how to align with state agencies and others that are doing R3 activities.

Build the buy-in Be better partners Commit resources WHAT’S NEXT? Build the buy-in Be better partners Commit resources Promote common themes The first step in being true contributors to this effort is to have buy-in at all levels of the company. Every employee, from the president down, needs to understand how critical it is to increase annual participation in recreational fishing. Why is buy-in so important? Because this initiative requires effort. Leadership needs to believe that dedicating resources to this is the right thing to do. That means staff time, marketing direction, and customer communication. If it doesn’t have support from the top down, it will not be successful. The second step is to use the other resources ASA has developed. They can be found online at ASAfishing.org/60in60. These pages detail ways our industry can get involved, including tools to help analyze sponsorship requests of product and funding. These pages will be updated frequently with new tools specifically geared for various segments of business. Not all tools will be useful to all companies, so consider what works best you.

Visit www.ASAfishing.org/60in60 60 in 60 can be achieved! If all segments of our industry come together and keep the goal within our sites, we can increase participation and strengthen the future of recreational fishing. It’s time to ask the question – What will my company do to be a part of this exciting movement?