Callaway Investment Thesis and Business Transformation Overview
OUR BUSINESS HAS TRANSFORMED OVER THE PAST FIVE YEARS
Golf
Equipment
84%
FY 2016
REVENUE
FY PRO FORMA 20211
REVENUE
Callaway
ODYSSEY
Callaway
Apparel, Gear and Other
16%
Golf
Equipment
38%
Callaway
TOPGOLF
VENUES
ODYSSEY
®
TOPTRACER
Jack
Wolfskin
OGIO®
Callaway
៣
travis Matheu
Apparel, Gear and Other
25%
Topgolf
38%
TOPGOLF
MEDIA
($ in millions)
FY 2016
FY Pro Forma 2021
Enterprise Value2
$947
Revenue
$871
$6,233
$3,2761
Adj. EBITDA³
$67
$4481
2021 Adjusted EBITDA outperformed
original forecast 4 by 149%
Callaway
WE ARE IN A STRONGER POSITION TODAY
GOLF EQUIPMENT
Market leader in highly attractive worldwide golf market
New period of growth for golf with 2021 retail sales data showing strong and
sustained growth over both 2019 and 20205
Topgolf will continue to add new golfers to the traditional game
Segment can generate significant cash flow, even in a downturn
Discretionary and growth-related spend can be adjusted in the short to medium term
without harming long-term brand value
APPAREL, GEAR AND OTHER
Proven profitability and cash flow generation across business lines
.
Investments in combining back-office support, IT systems and new market
expansion provide growth opportunities and operating synergies
TOPGOLF
Successful concept across all venue sizes, geographies and climates, with
development pipeline line of sight into 2024
Proven sustained profitability as sites mature
Highly visible and predictable business model with strong operating cash flow
generation
Ample flexibility to adjust growth investments based on the prevailing environment
Note: Figures may not sum to 100% due to rounding.
1. Due to the timing of the Topgolf acquisition on March 8, 2021, Callaway's reported full year financial results will only include 10 months of Topgolf results. The pro forma financial results shown above include Topgolf contribution for January and February 2021.
2. Factset as of December 31, 2016 and December 31, 2021.
3. See Appendix for Adjusted EBITDA reconciliation to GAAP. Additionally, as Adjusted EBITDA is a non-GAAP measure, please see the Regulation G disclaimers on page 1 of this presentation.
4. Combined Callaway and Topgolf forecast as presented in the January 2021 Form S-4/A as part of the Topgolf acquisition.
5. Source: The NPD Group/Retail Tracking Services; US Team Sports Equipment "Gained and Sustained" vs. "Suffered and Recovered" analysis.
4View entire presentation