Callaway Investment Thesis and Business Transformation Overview slide image

Callaway Investment Thesis and Business Transformation Overview

2022 FULL COMPANY OUTLOOK AND GUIDANCE FULL YEAR 2022 ($ in millions) 2021 Net Revenue Adjusted EBITDA 2022 Outlook $3,780 - $3,820 $490 - $515 Pro Forma Results¹ $3,276 $448 2021 Reported Results¹ $3,133 $445 Callaway Full Year Net Revenue Guidance Assumptions Approximately $1.5 billion in net revenue from Topgolf for the full year Continued positive demand for our Golf Equipment and Soft Goods segments No significant supply chain or retail shutdowns due to COVID resurgence Negative foreign currency impact of approximately $54 million on revenue due to a strengthening U.S. dollar Full Year 2022 Adjusted EBITDA Guidance Assumptions ● Topgolf segment to deliver between $210 - $220 million in Adjusted EBITDA for the 12 months beginning January 1, 2021 • Increased operating expenses at Topgolf as we build the team and infrastructure to support a larger business Continued cost pressure across all business segments amid increased freight costs and inflationary pressures being offset by selective pricing opportunities Negative foreign currency impact of approximately $38 million on pretax income due to a strengthening U.S. dollar Additional Full Year 2022 Guidance Assumptions ● Shares outstanding of approximately 204.2 million shares Non-GAAP Depreciation and Amortization expense of approximately $170 million Capital Expenditures of $310 million, net of REIT reimbursements (includes approximately $230 million from Topgolf) 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. 15
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