State of the Snow Sports Industry August 24, PDF Free Download

State of the Snow Sports Industry August 24, 2012 1

VISION & MISSION STATEMENT VISION To make North America the best snow sports market in the world. MISSION SnowSports Industries America is a not-for-profit member owned trade association whereby competing product and service suppliers work together for the development and growth of the snow sports industry. In support of this, SIA is committed to: Managing and operating trade shows and/or other solutions to assist our members in bringing their products to market. Providing programs, services and information that will assist members in improving their business operations. Working together with reps, retailers, resorts and other entities for the development of the snow sports industry Promoting awareness and participation in snow sports 2

SIA PRESIDENT: David Ingemie Marketing Director President Board Roles: United Ski & Snowboard Association Rails to Trails Conservancy National Ski Hall of Fame and Museum New England Ski Museum International Skiing History Association Member of PSIA Passions: Cycling Skiing Snowboarding First Ski Club: Flopenofen Ski Club, Fitchburg, MA 3

INDUSTRY PLAYERS: SNOW SPORTS INDUSTRY ANNUAL REVENUE THANK YOU CONSUMERS Retailers $3.3B Suppliers $1.5B Snow Sports Industry Resorts $7B Source: SIA Snow Sports RetailTRAK, NSAA Economic Analysis of U.S. Ski Areas, SIA Sales Report 4

STATE OF THE MARKETPLACE Consumer s Perspective Recovery from the recession very slow for younger workers Wage growth flat Continued lack of vacation time and discretionary income Fuel, food, and apparel prices are rising Snow conditions terrible this season Supplier s Perspective Pre-season equipment orders for equipment for 2012/2013 down 10% to 50% in equipment Marketing strategies meet with mixed success in new social media driven society Manufacturing costs overseas increasing due to labor initiatives, tariffs, materials costs increases, and currency policy Retailer s Perspective Snow not falling, consumers not buying Inventories required deep discounting in February Margins down in all categories Cash flow is a trickle Look to warm weather product to bring in customers and cash Resort s Perspective Skier visits down 5% to 40% at resorts Short season Participants age 25 to 35 have less time and discretionary income Baby boomers leaving the slopes at 150,000 per year with smaller Gen X behind them 5

THE SNOW SPORTS MARKET Lack of snow explains the difference between 2010/2011 and 2011/2012 Channels: Specialty, $2B down 14% in units and down 5% in dollars Internet, $733M - up 11% in units and up 12% in dollars Chain Stores, $745M down 19% in units and down 12% in dollars Retail Births and Deaths** As of today, there are 2443 retail managements in the US, representing 4668 storefronts/doors. Source: *SIA RetailTRAK BY The Leisure Trends Group, August to March 2011/2012, **SIA Retail Database 2012 6

MARKET OVERVIEW Total: $3.3b Total: 19.8m

PARTICIPATION AND SPENDING Season Alpine Ski and Snowboard Participation Alpine and Snowboard Equipment $ Skier/Rider Visits Avg. Equipment $ per Participant 2006/2007 15.2m $731.8m 55.1m $48.15 2007/2008 15.472m $827m 60.5m $53.45 2008/2009 15.699m $718.5m 57.4m $45.77 2009/2010 16.411m $738.6m 59.8m $45.01 2010/2011 16.913m $826.8m 60.5m $48.88 2011/2012 15.865m $799.1m 50.8m $50.37 Source: SIA RetailTRAK by Leisure Trends Group, NSAA Kottke End of Season Report, SIA Participation Study produced by the PAC 8

2012/2013 WEATHER FORECAST Based on current observations and dynamical model forecasts, El Niño conditions will drive winter weather in the 2012/2013 season. Typically, El Nino produces warmer and drier weather north of the Mason-Dixon Line, and cooler and wetter weather in the south. Pacific Northwest The last El Niño could bring wet and warmer than average conditions to the NW. In fact, less than ideal snow conditions during the 2010 Olympics were caused by the El Niño pattern Rocky Mountains: Colorado and Utah may have some abundant early snow followed by a dry period and then lots of spring snow. Midwest: Lake effect snow from the Great Lakes may be hampered by warmer temperatures caused by El Niño. East: El Niño snow years average above normal for the nine largest Northeastern cities particularly in late January to April. December snowstorms and snow over the holidays nationwide could drive snow sports sales up significantly in December and snow across the Appalachian range, cooler temperatures and unusual snowfall as far south as Houston, TX could drive apparel and accessories sales throughout the winter. Mid-Atlantic Higher than average snowfall and below average temperatures January-March. The last El Niño brought what is commonly referred to as Snowmaggedon to the Eastern Seaboard in February 2010. 9 Source: National Oceanographic and Atmospheric Administration [NOAA], ENSO Climate.

ACORNS! 10

ALPINE SKI EXECUTIVE SUMMARY Alpine ski equipment brought in over $536M this season, up 1% from 2010/2011. Chain Shops: $27M, down 41% in units and down 36% in dollars Specialty Shops: $430M, up 2% in units and dollars Internet Shops: $79M, up 27% in units and up 24% in dollars Poor weather left swollen inventories in retail shops at the end of March 2012, the highest in four seasons with 32% more product in their back rooms. Alpine Skis: up 33% in inventory units and dollars Alpine Boots: up 28% in inventory units, up 23% in inventory dollars Alpine Bindings: up 38% in inventory units, up 35% in inventory dollars Alpine Poles: up 38% in inventory units and dollars Last season 47 brands produced 1,490 models that had measurable sales through retail channels. 12

EXECUTIVE SUMMARY (CONTINUED) The majority of casual skiers are ages 25-34 (21%), while the majority of core skiers are 45-54 (17%). Serious alpine skiers are more likely to participate beyond age 55 than casual skiers; 15% of core skiers are ages 55+, while only 8% of casual skiers make up this age group. The average alpine skiers makes it to the mountain 7.4 days in a season, which is consistent with last year. Backcountry trails continues to grow in popularity with alpine skiers. 15.8% of alpine skiers skied on resort backcountry/ungroomed trails 4.2% of alpine skiers made it out to non-resort backcountry/ungroomed trails What drove alpine equipment sales through the 2011/2012 season? Reverse/mixed camber skis continue to flourish at retail, adult-specific models finished the season up 84% in units and 80% in dollars, bringing in $77M with over 146,000 pairs sold. Women s-specific flat skis were up 15% this season, while women s-specific systems finished up 5%. Fat skis in both flat and system models continued to do well this season with flat skis >110mm up 41% and systems >110mm up 315%. It looks like snowboarders are looking to get the best of both worlds; 41% of snowboarders reported that they also skied last season (up from 26% in 2009/2010). 13

ALPINE SKI MARKET OVERVIEW

ALPINE FLAT SKIS Average Retail Prices By Channel 2011/2012 Average Retail as values Adult Skis (<70mm) Adult Skis (70-79mm) Adult Skis (80-95mm) Adult Skis (95-110mm) Adult Skis (>110mm) Adult Traditional Cut Skis Adult Twintip Skis Junior Skis Carryover Skis Total Flat Skis Chain $313.17 $375.76 $513.23 $547.89 $623.19 $0.00 $420.85 $156.46 $222.00 $301.54 Internet $246.77 $281.78 $408.36 $491.23 $544.28 $0.00 $435.64 $152.85 $245.51 $368.55 Specialty $548.47 $413.01 $530.80 $551.93 $601.47 $729.00 $463.21 $179.07 $268.18 $397.61 All Stores $476.23 $376.73 $508.47 $534.79 $580.26 $729.00 $455.25 $173.91 $254.49 $385.22 Source: SIA Snow Sports RetailTRAK --carryover included. 16

ALPINE SKI SYSTEMS Average Retail Prices by Channel 2011/2012 Average Retail as values Adult Ski Systems (<70mm) Adult Ski Systems (70-79mm) Adult Ski Systems (80-95mm) Adult Ski Systems (95-110mm) Adult Ski Systems (>110mm) Adult Twintip Ski Systems Junior Ski Systems Total Ski Systems Chain $508.78 $418.21 $737.24 $0.00 $0.00 $387.23 $171.42 $423.48 Internet $371.47 $402.55 $644.96 $182.94 $732.42 $465.00 $192.60 $403.98 Specialty $555.79 $462.98 $726.13 $701.09 $662.49 $527.08 $213.11 $462.56 All Stores $514.49 $450.40 $713.07 $607.41 $664.01 $500.21 $208.26 $450.50 Source: SIA Snow Sports RetailTRAK --carryover included. 17

ALPINE SKI SALES BY GENDER/AGE Unit Sales In All Snow Sports Shops 2008/2009 2011/2012 450,000 400,000 350,000 300,000 Units Sold 250,000 200,000 150,000 100,000 50,000 0 2008/2009 2009/2010 2010/2011 2011/2012 Men's 384,607 355,736 374,958 353,511 Women's 118,972 123,731 147,792 156,662 Boys 72,200 72,350 71,816 75,501 Girls 35,814 35,090 33,188 38,385 Overall men s ski sales were the only group that felt a loss, down 6% in units; women s skis were up 6%, boys up 5% and girls up 16%. Source: SIA Snow Sports RetailTRAK --carryover included. 18

REVERSE CAMBER ALPINE SKIS Unit Sales Trends 2008/2009 2011/2012 Flat Skis Ski Systems 135,805 92,619 80,426 44,302 51,893 724 4,001 18,568 2008/2009 2009/2010 2010/2011 2011/2012 The reverse/mixed camber trend continues to grow in popularity, with reverse/mixed camber flat skis up 47% and systems up an impressive 333% in units sold. Source: SIA Snow Sports RetailTRAK --carryover not included. 19

ALPINE SKIS Best-Selling Adult Models 2011/2012 Alphabetical Order Atomic Cloud 7 w/ XTL (Women s) Atomic Nomad Smoke TI W/XTO Atomic Nomad Smoke W/XTO Rossignol S7 Freeride Volkl Mantra Source: SIA Snow Sports RetailTRAK --carryover included. 20

ALPINE BOOTS Average Retail Prices By Channel 2011/2012 Average Retail as values Adult High Performance Boots Adult Sport Performance Boots Adult Recreation Boots Junior Boots Carryover Boots Adult Alpine/AT Boots Chain $282.97 $229.63 $203.97 $109.44 $128.25 $350.10 Internet $302.38 $205.08 $181.42 $102.02 $149.74 $346.68 Specialty $392.85 $274.48 $216.81 $121.70 $200.03 $428.42 All Stores $375.50 $261.75 $209.83 $119.24 $172.75 $395.16 Source: SIA Snow Sports RetailTRAK --carryover included. 21

ALPINE BOOTS Best-Selling Adult Models 2011/2012 Alphabetical Order Atomic Hawx 80 Boot Atomic Hawx 80 Boot, Women s Nordica Hot Rod 8.0 Boot Nordica Hot Rod 8.5 Boot, Women s Salomon Impact 100 CS Boot Source: SIA Snow Sports RetailTRAK --carryover included. 22

SNOWBOARD MARKET OVERVIEW

SNOWBOARD EQUIPMENT Average Retail Prices 2010/2011-2011/2012 Average Retail 2011/2012 Chain Internet Specialty Snowboards $214.85 $309.78 $299.71 Snowboard Boots $119.66 $152.63 $153.43 Snowboard Bindings $109.98 $149.09 $147.68 Snowboard Equipment $142.09 $208.88 $195.45 Source: SIA Snow Sports RetailTRAK carryover included. 26

SNOWBOARDS Reverse Camber (Rocker) Trends Trends In Snowboard Camber 2008/2009-2011/2012 350,000 300,000 250,000 Units Sold 200,000 150,000 100,000 50,000 0 2008/2009 2009/2010 2010/2011 2011/2012 Normal Camber 269,033 214,498 137,469 105,588 Reverse Camber 152,040 195,497 258,957 289,558 Source: SIA Snow Sports RetailTRAK carryover not included. 27

SNOWBOARDS Best Selling Adult Models 2011/2012 Alphabetical Order Burton, Blunt Series Burton, Clash Series Burton, Custom Flying V Series Burton, Feather Series (Women s) Gnu, Carbon Credit BTX Series Source: SIA Snow Sports RetailTRAK carryover included. 28

SNOWBOARD BOOTS Best Selling Adult Models 2011/2012 Alphabetical Order Burton: Invader Boot Burton: Mint Boot (Women s) Burton: Moto Boot Burton: Ruler Boot (Women s) Ride: Anthem Boa Boot Source: SIA Snow Sports RetailTRAK carryover included. 29

Cross Country Market Overview

CROSS COUNTRY EQUIPMENT Average Retail Prices, By Channel 2008/2009 2011/2012 Chain Specialty Internet Average Retail as values Nordic Skis Nordic Boots Nordic Binding s Nordic Poles Nordic Skis Nordic Boots Nordic Binding s Nordic Poles Nordic Skis Nordic Boots Nordic Binding s Nordic Poles 2011/2012 $160.62 $97.12 $55.95 $29.64 $170.48 $117.80 $57.08 $45.07 $153.84 $110.60 $59.92 $52.01 Source: SIA Snow Sports RetailTRAK --carryover included. 33

BACKCOUNTRY EXECUTIVE SUMMARY Even those who trekked out to the backcountry this season struggled to find some decent snow, and that was evident at retail. AT/Randonee equipment sales -7% in units, -6% in dollars. AT/Randonee Skis: -27% in units, -26% in dollars AT/Randonee Boots: +2% in units, flat in dollars AT/Randonee Bindings: flat in units, +2% in dollars. 35

RANDONEE/AT SKI EQUIPMENT Average Retail Prices 2008/2009 2011/2012 Snow Sports and Outdoor Specialty Retailers Average Retail as values 2011/2012 Chain Internet Specialty Randonee/AT Skis $550.92 Randonee/AT Boots $522.10 Randonee/AT Bindings $428.32 Randonee/AT Skis $396.30 Randonee/AT Boots $506.34 Randonee/AT Bindings $358.11 Randonee/AT Skis $460.56 Randonee/AT Boots $497.43 Randonee/AT Bindings $348.11 Outdoor Specialty Randonee/AT Skis $385.07 Randonee/AT Boots $530.33 Randonee/AT Bindings $396.30 Source: SIA Snow Sports RetailTRAK --carryover included and the Leisure Trends Group Outdoor RetailTRAK. 36

APPAREL TRENDS 2012/2013 For women - Fitted silhouettes, color blocking and fur trim will bring exciting choices to the market. Warmth and weatherproofing will be considered by Northeast and Mid-Atlantic consumers who will need to deal with more cold and snow this season. Non-participants buy more and more snow sports apparel as casualwear as office attire becomes increasing more casual and a more rugged look becomes popular for well-heeled urban men. 37

ACCESSORIES TRENDS 2012/2013 Helmets will continue to gain in popularity on the slopes and more than 1.3M units (the 2011/2012 number) will be sold. Pent-up demand for goggles, gloves, helmets, winter boots, and baselayer will drive accessories sales. All accessories sales will increase with participation more snow = more accessories sales. 38

2012 SIA SNOW FASHION AND TRENDS 39

LOOKING AHEAD: Threats and Opportunities Fallout from a terrible season: o Smaller orders o Conservative product mix o Bankruptcy retailer and supplier o Consolidation Opportunity to leverage a better snow season in 2012/2013? How will slow downs in the European and Asian economies impact our economy? Will retailers sell through inflated inventories? How can we work together to keep snow sports healthy? 40

SNOW SPORTS PARTICIPATION BY SPORT 14,000 12,000 Participants (000s) 10,000 8,000 6,000 4,000 2,000 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 Skiing (Cross Country) 3,530 3,848 4,157 4,530 4,318 Skiing (Alpine/Downhill) 10,362 10,346 10,919 11,504 10,201 Skiing (Freestyle) 2,817 2,711 2,950 3,647 3,641 Snowboarding 6,841 7,159 7,421 8,196 7,579 Snowshoeing 2,400 2,922 3,431 3,823 4,111 Telemarking (Downhill) 1,173 1,435 1,482 1,821 2,099 Alpine skiing participation -11% in the 2011/2012 and snowboarding participation -8% despite heavier participation among core snow sports participants. Total participation in snow sports is 21M with another 11M who consider themselves skiers or riders but did not ski or ride in the past two seasons. Source: SIA Participation Study 2012 42

332,386,750 Total Calories Burned Skiing, Snowboarding, and Snowshoeing in 2011/2012 Snowshoeing, 15,827,350 Snowboarding, 109,137,600 Alpine Ski, 153,015,000 XC Ski, 54,406,800 How Many Cheeseburgers Does that Represent? How many Breakfast Burritos? Discipline Total Calories Burned 2011/2012 How Many Beers? How many Pancakes? Alpine Ski 153,015,000 218,593 1,020,100 510,050 612,060 XC Ski 54,406,800 77,724 362,712 181,356 217,627 Snowboarding 109,137,600 155,911 727,584 363,792 436,550 Snowshoeing 15,827,350 22,611 105,516 52,758 63,309 Total Snow Sports 332,386,750 474,838 2,215,912 1,107,956 1,329,547 Sources: SIA Participation Study data produced by the PAC, WebMD Calorie Calculator

ALPINE SKIER PROFILE Alpine Ski Participant Profile Total Alpine Ski Participation 10,201,000 (-11.3%) Median Age of Alpine Skiers 23% are ages 6-17, 52% between 18-24 and 25% are over 45 years old. Just 8% ski after 55 years. Gender of Alpine Skiers Male 61%, Female 39% % with Household Income >$100K 50% % of Core Alpine Skiers with Household Incomes >$100K 49% Bachelor's Degree or Higher 53% States with the Most Alpine Ski Participants CA, TX, NY, CO, PA % of Alpine Skiers that Also Ride a Snowboard 19% Avg. Price Paid for (Flat - bindings sold separately) Skis at a Specialty Shop $494.21 Avg. Price Paid for Ski Systems at a Specialty Shop $524.07 Avg. Price Paid for Alpine Boots at a Specialty Shop $361.41 Avg. Number of Days Alpine Skiing in 2011/2012 7.4 Days Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 44

SNOWBOARDER PROFILE Snowboard Participant Profile Total Snowboard Participation 7,579,000 (-7.5%) 24% of females 17 or younger, 29% of males 17 or younger, 9% of males 45 or older, 6% of Age females 45 or older Gender 65% Male, 35% Female Bachelor s Degree or Higher 38% Avg. Price paid at Specialty for a Snowboard $342.71 Avg. Price paid at Specialty for Snowboard Boots $166.51 Avg. Price paid at Specialty for a Snowboard Bindings $157.41 States with the Most Snowboarders CA, NY, IL, PA, TX, NJ Avg. Number of Days Riding 8 days (down from 11.7 in 2010/2011) % of Riders who also Alpine Ski 41% (up from 26% in 2009/2010) % of Snowboard Riders of Asian/Pacific Island Decent 14% % of Snowboarders of Latino Decent 9% % of Snowboarders of African American/Black Decent 5% Household Income Above $75K per Year 53% Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 45

CROSS COUNTRY SKIER PROFILE Cross Country Participant Profile Total Cross Country Participation 4,318,000 (-4.7%) % of XC Skiers Over Age 35 49% Gender 41% Female, 59% Male Bachelor's Degree or Higher 56% % of XC Skiers who Ski at Public Nordic Centers 28% % of XC Skiers who Ski at Private Nordic Centers 38% % of XC Skiers who Ski Backcountry Terrain 34% Region with the Most XC Participants East North Central (IN, IL, MI, OH, WI) % of XC Skiers Who Also Alpine Ski 51% % of XC Skiers who Also Ride Road Bikes 42% % of XC Skiers of Asian/Pacific Islander Descent 11% % of SX Skiers of Latino Descent 8% % of XC Skiers of African American/Black Descent 7% Household Income Above $75K Per Year 56% Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study. 46

ALPINE SKIER CROSSOVER Percentage Of Alpine Skiers Who Also: 25% 20% Percent Crossover 15% 10% 5% 0% Snowboard Cross Country Ski Snowshoe Freestyle Ski Telemark Ski Percent of Alpine Skiers Who: 19% 22% 16% 20% 13% Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 47

ALPINE SKIER PARTICIPATION By Age Group 25% 20% Percent of Total Participants 15% 10% 5% 0% 6 to 12 13 to 17 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+ Core 9+ Days 10% 14% 15% 14% 14% 17% 10% 5% Casual 1+ Days 11% 12% 15% 21% 16% 17% 5% 3% Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 48

SNOWBOARD PARTICIPATION By Age 35% 30% Percent of Total Participation 25% 20% 15% 10% 5% 0% 6 to 12 13 to 17 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+ Snowboard 10% 17% 25% 30% 12% 6% 1% 0% Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study. 49

SNOW SPORTS PARTICIPANT Household Income 7% 11% Under $25,000 $25,000 to $49,000 50% $50,000 to $74,999 19% $75,000 to $99,999 $100,000+ 13% Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 50

SNOW SPORTS PARTICIPANT ETHNICITY 80% 70% Percent of Total Participation 60% 50% 40% 30% 20% 10% 0% Caucasian/White, non-hispanic Asian/Pacific Islander Hispanic African American/Black Alpine Ski 75% 11% 8% 4% 3% Snowboard 66% 15% 10% 6% 3% Cross Country 71% 11% 8% 7% 3% Snowshoe 72% 12% 9% 6% 2% Freestyle 59% 17% 12% 11% 2% Other Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 51

SNOW SPORTS PARTICIPANT EDUCATION DEMOGRAPHICS (AVG) 8th Grade or Less 1-3 Years of High School High School 1-3 Years College College Grad Post-Grad Studies Alpine Ski 13% 11% 7% 16% 33% 19% 1% Snowboard 12% 14% 9% 25% 27% 9% 2% Other Cross Country 7% 8% 8% 20% 33% 23% 0% Snowshoe 8% 5% 8% 20% 40% 17% 1% Freestyle 12% 9% 8% 22% 31% 18% 1% Telemark 8% 10% 4% 25% 36% 15% 2% 10% 10% 7% 21% 33% 17% 1% 52

SKIER PARTICIPATION: Density/Per Capita ID 9.3% MT 6.3% ND 6.8% ME 6.7% VT 7.1% NH 14.8% MA 6.9% CT 6.1% UT 7.3% CO 11.7% Percent of U.S. population that skis in each state. Top Ten: NH 14.8%, CO 11.7%, ID 9.3%, UT 7.3%, VT 7.1%, MA 6.9%, ND 6.8%, ME 6.7%, MT 6.3%, CT 6.1%. The Top Ten States represent 56% of total U.S. participation. Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 53

ALPINE SKI AND SNOWBOARD PARTICIPATION By Region 30% 25% Percent of Total Participation 20% 15% 10% 5% 0% New England Mid Atlantic East North West North South Atlantic East South West South Mountain Pacific Alpine Ski 10% 15% 15% 6% 12% 2% 8% 13% 19% Snowboard 5% 18% 16% 5% 11% 2% 4% 11% 27% New England: CT, ME, MA, NH, RI, VT Mid Atlantic: NY, NJ, PA East North Central: IL, IN, MI, OH, WI West North Central: IA, KS, MN, MO, NE, SD South Atlantic: DC, FL, GA, MD, NC, SC, VA, WV East South Central: AL, KY, MS, TN West South Central: AR, LA, OK, TX Mountain: AZ Co, ID, MT, NV, NM, UT, WY Pacific: HI, AK, CA, OR, WA Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 54

WHERE ALPINE SKIERS SKI 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Resort-Marked Trails Resort- Backcountry/Ungroomed Trails Non-Resort- Backcountry/Ungroomed Trails Venue 91% 16% 4% 5% Other Source: SIA/Physical Activity Council 2012 Snow Sports Participation Study 55

AGE GROUPS COMPARED Age Groups for Alpine Skiers, Snowboarders and Ski Club Presidents Compared 2011/0212 35.0% 30.0% % of total in age group 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 17 and Under 18-24 25-34 35-44 45-54 55-64 65+ Ski Club Presidents 0.0% 0.0% 5.1% 9.6% 26.3% 25.3% 23.7% Alpine Skiers 23.0% 14.9% 20.5% 16.2% 17.3% 5.4% 2.6% Snowboarders 26.7% 24.7% 29.6% 11.6% 6.2% 0.9% 0.4% 56

INDUSTRY CHALLENGES The biggest challenge facing the industry including clubs is growing snow sports participation. Let s take a brief look at why people do and don t get involved. 57

SNOW SPORTS PARTICIPATION Why Didn t They Participate? Source: SIA/Physical Activity Council 2006/2007 2011/2012 Snow Sports Participation. 59

SNOW SPORTS PARTICIPATION Why Didn t They Return After Their First Time? 83% of first time participants never return I was cold I was frustrated It was painful It was dangerous It was expensive It was hard to access/mountains are too far The boots are uncomfortable (more ski than snowboard) I don t like the pressure (from instructors or peers) 60

SNOW SPORTS PARTICIPATION Future Growth Opportunities Bring back lapsed participants Create more opportunities to try snow sports Improve conversion of first time participants Correct misperceptions at grassroots level (retail/resort) Increase frequency of equipment purchase/replacement among participants 61

2012-2013 SIA CONSUMER OUTREACH TO PARTICIPANTS & POTENTIAL PARTICIPANTS 62

SNOWLINK 2011.12 Snowlink.com & Snowlink Facebook Engages Consumers and Media with everything snow sports Sections specific to PSIA/AASI, NSP Safety Tips, Retail + Resort Locator, SIA Member Gear & Styles on the Snow, Freeski, Silver Skier & Shredders, KidZone, How-To s, Ski/Snowboard Clubs, Lesson & Burton LTR listing, Ski/Snowboard/XC Buying Guides, Shop + Resort Locator Banner Ads; World Snowboard Day, Learn to Ski & Snowboard Month, Winter Trails, Subaru, Snow Sports Insiders, Ship Your Gear 63

SNOWLINK 2012.13 A Link to All Things Snow Enhanced landing page with dynamic news, photos + videos Women s Snow Boutique section; By Women, For Women USSA & Backcountry sections SIA Member Brand/Product Gallery; Digital Ads + Social + Site Links Increased PPC, Facebook ads, Tripadvisor, Travel sites, Mommy Blogs, PR outreach Integrate Retail to Consumer Shop Snow Program 64

SNOWLINK.COM 65

SNOWLINK FACEBOOK 72

WINTER TRAILS One day national event getting consumers to try out cross country skiing and snowshoeing for free 100 locations and 10,000 participants* 2013 Dates January 12 (Nationwide) January 19 (Estes Park, CO) *Only 6,000 participants in 2012 due to lack of snow. Every other year there are 10,000+ 74

LEARN TO SKI AND SNOWBOARD MONTH 75

WORLD SNOWBOARD DAY DECEMBER 30, 2012 Global Event to Get People Riding! Over 60 Countries Involved www.world-snowboard-day.com 76

SHIP YOUR GEAR Consumer awareness program to educate skiers and snowboarders to Ship Their Gear via FedEx Up to 16% Discount on FedEx & Up to 9% Discount on FedEx Ground www.snowlink.com/shipyourgear 77

Ship Your Gear materials for shops & ski clubs: www.snowsports.org/shipyourgear 78

SKI CHANNEL 22 Minute produced consumer television spot SIA Snow Show Fashion, Trends, Gear September 15 December 15 On-Demand Cable (search local On-Demand) Television short will be sent to all Ski & Snowboard Clubs 4 Minutes 79

PSA VIDEOS & BLOG Three PSAs for shops and ski/snowboard clubs Gear Up & Tuning Fashion & Trends Getting on the Mountain & Having Fun! Timing Late September/October Fall Blog post written by Jake Des Roches, will be posted on Snowlink.com and on College Blogs; How to Start a Ski/Snowboard Club at Your College 80

Questions Suggestions Comments Tomorrow we will focus on how we can work together to grow participation in club membership. Thank you & think snow! 81