1. Dr. Joe Beditz President, National Golf Foundation

2. Background/Purpose GOLF 20/20 engaged NGF to study retention in golf Specifically… What is the retention rate of beginning golfers?What is the retention rate of beginning golfers? How does it compare to other sports?How does it compare to other sports? What can cause it to be higher/ lower?What can cause it to be higher/ lower?

3. Beginning Golfer Retention Rates Retention Rate Average=45%Average=45% Source: Golf 20/20, NGF analysis

4. Retention in Golf Compared to Other Sports Source: USPTA, NSAA 1-Year Retention Rate GolfTennisSkiing

5. Factors Affecting Retention Demographic Factors Situational Factors Gender Income Age Structured Programs Regularly Play

6. Golfer Retention Rates by Gender Average Retention Rate Men=54% Women=33% Source: Golf 20/20, NGF analysis Retention Rate

7. Golfer Retention Rates by Income Source: Golf 20/20, NGF analysis % Retained Average Retention Rate

8. Golfer Retention Rates by Age % Retained Source: Golf 20/20, NGF analysis

9. Managed Introductions Boost Retention Link Up to Golf… retained 78% of new golfers in the year following introduction Executive Women’s Golf Association… retained 95% of new members/golfers

10. Average Retention Rate Junior Golfer Retention % Retained Source: Golf 20/20, NGF analysis

11. Regular Play Hooks Beginners Average Retention Rate % Retained Source: Golf 20/20, NGF analysis

12. Regular Play Among Beginners Source: Golf 20/20, NGF analysis

13. Effect of Regular Play on Retention of Men vs. Women % Retained WOMEN 21% MEN 34% Source: Golf 20/20, NGF analysis Began Regular Play

14. Implications for Growth

15. Retention vs. Attrition Mortality/Infirmity… ~500k Hiatus Takers… ~500k Quitters… ~500k 3 Million New Golfers 1.5 Million Retained Source: Golf 20/20, NGF analysis INFLOW OUTFLOW

16. DRIVE PEOPLE IN! …TO STRUCTURED PROGRAMS

17. Latent Demand Total Population 100% More Frequent TV Golf Viewership 30% Less Frequent/No TV Golf Viewership 70% Non-Golfer 62% (19%) Non-Golfer 94% (66%) Likely to Play Golf 6% (4%) Likely to Play Golf 15% (3%) Likely to Play (7%) Non-Golfers 8 Million11 Million 19 Million Golfer 38% (11%) Golfer 6% (4%) Not Likely to Play Golf 85% (16%) Not Likely to Play Golf 94% (62%) NOTE: Parenthetical numbers represent total percent of the U.S. population. Source: Golf 20/20, NGF analysis (PGA TOUR Segmentation Research Sept. ’04)

18. Profile of Interested Non-Golfers ExistingGolfersInterestedNon-Golfers Gender (%) Male Male7651 Female Female2449 Income (%) <$50k <$50k2338 $50k-$99k $50k-$99k4843 $100k+ $100k+2919 Race (%) Caucasian Caucasian8678 Minority Minority1422 Source: Golf 20/20, NGF analysis (PGA TOUR Segmentation Research Sept. ’04)

19. Take Aways Retention in golf is good (5-year avg. = 45%)Retention in golf is good (5-year avg. = 45%) Structured programs are extremely effectiveStructured programs are extremely effective Latent demand continues to exist … … but among population segments that are more difficult to retainLatent demand continues to exist … … but among population segments that are more difficult to retain