STATE OF THE U.S. RECREATIONAL BOATING INDUSTRY

1 STATE OF THE RECREATIONAL BOATING INDUSTRY Thom Dammrich, President, NMMA 2 EVERY SATURDAY & SUNDAY! 3 BEST OF ALL TIMES 4 WHAT S HAPPENING? 5 RETAIL SPENDING ON BOATING $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2000200120022003200420052006200720082009 2010201120122013 USD (Billions) source: NMMA $37B Source: NMMA 6 BOATING PARTICIPATION 01020304050607080901000%5%10%15%20%25%30 %35%40%199019911992199319941995199619971 9981999200020012002200320042005200620072 00820092010201120122013 Millions of Boaters* Participation Rate* People 18+Participation RateSource: Foresight Research, Census Bureau *Adults 18 years of age and older 7 3 billion BOATING exposure hours More than 300 million BOATING trips in 2012 Source: USCG BOATING IS PERVASIVE 8 Source: NMMA, Foresight Research, Census Bureau AN AMERICAN INDUSTRY 95% of boats sold in the are built in the 97% of boat manufacturers and dealers are small businesses 71% of boat owners have a less than $100K HHI 9 Source: RMRC ECONOMIC VALUE OF BOATING 34,833 BOATING INDUSTRY businesses Employing 472,594 people in the in BOATING -related manufacturing, services and sales 10 Source: RMRC ECONOMIC VALUE OF BOATING Economic impact of RECREATIONAL BOATING in : $ 1,049 BOATING INDUSTRY businesses Employing 8,728 people in in BOATING -related manufacturing, services and sales 12 Healthy Economy Job Creation Consumer Spending Housing Growth Consumer Confidence WHAT DOES BOATING NEED TO GROW?

2 13 -3%-2%-1%0%1%2%3%4%5%6%20122013201420152 016 Percent Change from Preceding Period Forecasts Source: BEA, Philadelphia Fed REAL GDP 15 Job Creation Unemployment Rate: Source: BLS 16 Job Creation Unemployment Rate: Source: BLS 17 Source: BEA REAL DISPOSABLE INCOME -5%-3%-1%1%3%5%Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-1518 CONSUMER SPENDING source: BEA -6% -4% -2% 0% 2% 4% 6% 8% 2001-Q2 2001-Q4 2002-Q2 2002-Q4 2003-Q2 2003-Q4 2004-Q2 2004-Q4 2005-Q2 2005-Q4 2006-Q2 2006-Q4 2007-Q2 2007-Q4 2008-Q2 2008-Q4 2009-Q2 2009-Q4 2010-Q2 2010-Q4 2011-Q2 2011-Q4 2012-Q2 2012-Q4 2013-Q2 2013-Q4 2014-Q2 2014-Q4 ANNUALIZED RATE 19 Source: NMMA, The Conference Board CONSUMER CONFIDENCE V.

3 BOAT SHIPMENTS 020406080100120 - 50 100 150 200 250 300 Consumer Confidence R12M Average R12M Traditional Powerboat Wholesale Shipments Thousands 21 NEW HOME SALES V. BOATS source: SSI, Census Bureau - 50 100 150 200 250 300 350 - 200 400 600 800 1,000 1,200 1,400 1,600R12M Traditional Powerboat Retail Sales Thousands New Home Sales, SAAR Thousands New HomesTraditional Powerboats26 CITY RETAIL GAS PRICES Source: EIA 3/9/2015, $ $ $ $ $ $ $ $ $ $ $ $ , Conventional Gas Weekly Price Series Max: July 14, 2008, $ 27 BOAT BUILDING PRODUCTION INDEX ITR Economic Boat Building Production Forecast 0408012016004080120160'00'01'02'03'04'05 '06'07'08'09'10'11'12'13'14'15'16'17'181 2 MMA 3 MMA 12 MMA12 MMA Forecast3 MMAQUARTERLY PRODUCTION (3 MMA) ANNUAL PRODUCTION (12 MMA) OUTLOOK MANAGEMENT NOTE Annual Boat Building Production will remain relatively flat through mid-2015.

4 Rise will return and steadily persist through the majority of 2017 Use this period of softer production to develop and implement methods to streamline production. Production(12 MMA)Lower Forecast RangeUpper Forecast RangeSource: ITR Economics DEALER INSIGHTS Matt Gruhn Marine Retailers Association Source: Info-Link Source: Info-Link Source: Info-Link Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Expense Creep! Source: Spader, BOATING INDUSTRY Source: Spader, BOATING INDUSTRY Lessons From The Recession: = Profitability = Stability Don t Forget These Lessons!

5 DISCOVER BOATING UPDATE Thom Dammrich, President of NMMA 56 0%2%4%6%8%10%12%14%16%<2525-2930-3435-39 40-4445-4950-5455-5960-6465-6970-7475+Pe rcentage of All Buyers Age Range Boat Owner Age Distribution - 1997 HEADWINDS The primary factor influencing the future growth of BOATING is that our most loyal, core market is aging Average Age 47 Mostly Males Source: Info-Link 57 HEADWINDS Every year the average age of a boat owner has increased by half a year 0%2%4%6%8%10%12%14%16%<2525-2930-3435-39 40-4445-4950-5455-5960-6465-6970-7475+Pe rcentage of All Buyers Age Range Boat Owner Age Distribution - 2013 Average Age 55 Mostly Males Source: Info-Link 58 HEADWINDS We must start to better understand how to motivate younger consumers to buy boats 0%2%4%6%8%10%12%14%16%<2525-2930-3435-39 40-4445-4950-5455-5960-6465-6970-7475+Pe rcentage of All Buyers Age Range Boat Owner Age Distribution - 1997 vs 2013 1997 Owners2013 Owners2013 Adult PopSource: Info-Link 59 Text here WHY DOES DISCOVER BOATING EXIST?

6 60 3 61 WE SELL THE ING 62 2014 WAS A BIG YEAR FOR CHANGE 25 63 MEET OUR STORYTELLERS Justin Caskey, Canyon Lake, AZ The Ader Family, San Juan Islands, WA Jake Owen, Nashville, TN Vazquez Family, Tampa, FL 30 64 NEW STORY TELLERS One more story to cast and produce Looking for Saltwater Angler Ashley Rae Young Freshwater Angler Lives in Ottawa, Canada 65 THEIR STORIES 31 66 JAKE OWEN IS BRINGING BOATING TO A NEW, YOUNGER AUDIENCE 66 67 JAKE OWEN S STORY 33 68 STORIES OF DISCOVERY ARE DRIVING PEOPLE TO 26 69 NATIVE ADVERTISING ALIGNS OUR MESSAGE WITH PREMIUM CONTENT Ad experience follows the natural form and function of the editorial content 70 OUR CONTENT WILL APPEAR ON A VARIETY OF PREMIUM SITES 72 CONTENT IS KING Video Social/WOM Website Tools Creating & distributing relevant information to attract a clearly defined audience 73 74 2014 Results 1 billion impressions million website visits million potential customers referred In 2014.

7 Referral to Manufacturers and Dealers Awareness Exploration Consideration WE INVITE PEOPLE INTO BOATING & SHOW THEM THE PATH TO OWNERSHIP 76 TOOLS YOU CAN USE 77 THINK INCLUSIVE NOT EXCLUSIVE 36 GOVERNMENT RELATIONS UPDATE 79 TOP 5 NATIONAL ISSUES Ethanol & the Renewable Fuel Standard Access in Biscayne National Park and Everglades National Park Magnuson Stevens Act Reauthorization Trade Agreements Reducing the threat of Aquatic Invasive Species 80 81 82 87 QUESTIONS?