Presented ByEMILY CLARK: Customer Strategy & Marketing Analyst MATTHEW DUGGAN: Corporate Finance Analyst JESSE JOHNSON: Strategy & Operations Analyst MAGED MARZOUK: Business Planning Analyst

INTRODUCTION

EMILY CLARKCustomer Strategy & Marketing Analyst

JESSE JOHNSON Strategy & Operations Analyst

MATTHEW DUGGAN Corporate Finance Analyst

MAGED MARZOUK Business Planning Analyst

CURRENT SITUATIONSOLUTIONS BENEFITS SUMMARYNEXT STEPSQUESTIONS

ALTIUS

IN MEMORIAM

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CURRENT SITUATION

CURRENT SITUATION CONT.The Game and Altius

Golf participation has dropped by 19% from 2003 to 2012 (National Golf Foundation (NGF)

The cost of golf overall

Duration of a round of golf

Difficulty of golf

2008 Recession

Altius business trending downward

Unit and dollar sales of golf balls down 8% and 7% from 2008 to 2012, respectively; off-course dollar sales down 10% during same period

Market share has dwindled

SOLUTIONS

Two key strategies for INCREASING the market share of Altius Golf

FIRST: Introduce the Elevate ball to new recreational users

Partnering with golf driving ranges and practice facilities will introduce a new market to Altius

Selling these balls at large box retailers will also attract a new market to Altius

Customers at these facilities will develop a positive association between the sport of golf and the Altius brand and will be able to purchase the Elevate ball at their local large box retailer

The team at CBCG can facilitate these agreements easily

SOLUTIONS CONT.

Two key strategies for INCREASING the market share of Altius Golf

SECOND: Continue the industry leading sales of premier golf balls in the game; the Victor TX

Provide a subscription service allowing golfers the convenience of having the Victor TX delivered to their home or golf course pro shop of choice

A flat monthly or yearly fee would be charged to these customers

This is in keeping with the trend of consumers preference for convenience and automated offerings

This would encourage the more seasoned golfers to play golf more often

Continue to invest in R&D to Improve Victor TX

BENEFITS

Value segment “Tee it Forward”: 14 million new golfers by 2020 Price conscious: 35% ~50% lapsed golfers would try non-conforming ball

Off-Course ~5% decline Reputation is key to retailers; encouraged by sales prospects Subscription: convenience and ease

BENEFITS CONT.

BENEFITS CONT.

Value Capture:

“Tee it Forward”: 14 million new golfers by 2020

Represents $746 million in golf ball sales

Do you prefer $978 million or $725 million?

Elevate Strategy Status Quo

SUMMARY

STAYING THE COURSE >> NOT AN OPTION

BY 2020 ALTIUS WILL NO LONGER BE THE LEADER IN THE MARKET

TURNING THE SHIP AROUND >> THE ONLY WAY FORWARD

SOLUTIONS:

Introduce the Elevate ball to recreational users

Maintain the industry leading sales of the premier golf ball in the game, the Victor TX

BENEFITS:

Dramatic increase in unit sales reaching a market share of 57.2% by 2020 versus current market share of 45.2%

NEXT STEPS

1- Leverage relationships - Ken May (CEO of Top Golf) – Setup a meeting 2- Work with current Altius e-commerce team to introduce subscription services

3- Begin discussions with Altius manufacturer, to expand production to produce Elevate ball. Greater volumes will result in decreased production cost

4- Introduce big box stores to the Elevate ball to ensure seamless marketing and sales 5- Altius needs to continue R & D in its flagship product - Victor TX

QUESTIONS

Now We will Proceed to Q&A

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