Callaway Investment Thesis and Business Transformation Overview
TOPGOLF VENUES GENERATING ATTRACTIVE ECONOMICS
Target Avg. Venue
Revenue¹
Target Avg. Venue Level
Adjusted EBITDAR 1,2
Average Construction
Cost per Venue³
TOPGOLF
Target Average Cash
on Cash Returns
$17 M
$5 M
$10-40 M
45-50%
NO
Callaway
US Venue Revenue Breakdown
33%
(2021)
29%
0
34%
4%
■ Food and Beverage Gameplay Events ■ Other
2021 ADJUSTED EBITDAR MARGIN PERFORMED AHEAD OF TARGET UNIT ECONOMICS
Near- to medium-term blended average across large, medium and small venues, with the majority of new development coming from large venues.
Excludes overhead and opening costs and assumes Deemed Landlord Financing. Additionally, as Adjusted EBITDAR is a non-GAAP measure, please
see the Regulation G disclaimers on page 1 of this presentation.
2. Adjusted EBITDAR. The Company provides information about its results excluding interest, taxes, depreciation and amortization expense, non-cash stock
compensation expense and rent. Additionally, Adjusted EBITDAR excludes these same line items from forecasted net income.
3. Topgolf seeks to finance underlying land and 75% of construction costs on the majority of its venues through third-party developer or real estate financing
companies.
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