1. SIA State of the Market

2. Who We Are SIA | SnowSports Industries America SIA is an International, Member-Owned, Not for Profit Trade Association of snow sports products and service companies working together for the development of the Snow Sports Industry. VISION To ensure long-term sustainability and growth of the North American snow sports industry.

3. 1954

4. SIA Show Jan. 26-29 Denver, Co. Nordic Demo Jan. 30

6. Our Industry

7. State of the Marketplace Consumer’s Perspective (Slumping Economy and Higher Prices) Retailer’s Perspective (Uncertainty and Risk) Supplier’s Perspective (productions costs) Resort’s Perspective (will it snow?)

8. Consumer’s Perspective (Slumping Economy and Higher Prices) Recovery from the recession appears stalled by unemployment, underemployment, and lack of job security. 8.8% 13.7 Mill. Wage growth flat 2000 to 2010 at a 10 year low in 2010 Lack of vacation time and discretionary income More conservative outlook following the recession Figured out how they can spend

9. Consumer Cont. New shopping habits –Focused, cautious and tactical. –Surgical –Impulse buying is ancient history –Stores have become messier as shoppers dump merchandise

10. Retailer’s Perspective Uncertainty and Risk Better margins, stronger prices in 2010/11 Inventories leaner Consumer confidence growing to 70.4 from 54.1 in Nov. 100= 1985 Sales in recovery, dollar sales higher Late deliveries of merchandise Increasing cost of goods looming

11. Supplier’s Perspective Pre-season equipment orders for equipment appear healthy Marketing costs increasing Manufacturing costs overseas increasing due to labor initiatives and currency policy, Chinese Production no longer a deal South America/India strong emerging markets buying up raw materials Credit still a problem

12. Resort’s Perspective Est. 60 million+ Skier/Rider visits for 2010/11 on excellent La Niña conditions. Economic conditions improved for this season Baby boomers leaving the slopes at 150,000 per year with smaller Gen X behind them 2010/11 snowfall was amazing!!!!!!! On-the books occupancy up 15% this season Real Estate surrounding resorts an issue

13. Overall Trends In Cross Country Retail Aug – March 2010/2011 Improved consumer confidence and great weather are driving strong sales Cross Country equipment sales are up significantly and re-ordering was very strong at mid-season Snow Sports and Outdoor channels close to equal for Cross Country Sell through, margins and prices are very strong Men’s and women’s sales are up but they are slightly more for men Junior sales up 19%

14. What We Know about Nordic Participants Average Age38 58.1% Male 41.9% Female College Degree86% HH Income $75,000+46% Ave. # of Days9.8 Ride Road bikes43% Fitness Walking57% Alpine Ski43%

15. Cross Country Skier Participation by Age Source: SIA/Physical Activity Council 2006/2007 – 2008/2009 Snow Sports Participation 15

16. Opportunities Available on Both Ends of The Spectrum Source: SIA/Physical Activity Council Executive Summary 2011

17. Snow Sports Participation by Age and Gender Source: 2010 SIA Participation Study – 2008/2009 Season Participation Data

19. Looking Ahead How will the consumers react to the increases in pricing looming ahead? Will the economy ever get back on track? How will long lasting high unemployment impact the market? This season is a record but what are major concerns for next season?

20. Thank You! Ed Wray | Eastern Sales & Marketing Manager SnowSports Industries America (SIA) 8377-B Greensboro Drive, McLean, VA 22102 direct ph: 401.743.8089 main ph: 703.556.9020 ewray@snowsports.org