Acushnet Holdings Corp. (NYSE:GOLF) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Sondra Lennon - Vice President of Financial Planning and Analysis and Investor Relations David Maher - President and Chief Executive Officer Thomas Pacheco - Executive Vice President, Chief Financial Officer and Chief Accounting Officer Conference Call Participants Kevin Heenan - JPMorgan Chase & Co. Daniel Imbro - Stephens Inc. Casey Alexander - Compass Point Research & Trading, LLC Brian Har ...

ACUSHNET HOLDINGS CORP. Second Quarter 2022 Earnings Call August 4, 2022 DISCLAIMERS FORWARD-LOOKING STATEMENTS The forward-looking statements contained in this presentation are based on management's current expectations, including our current views with respect to the impact of the novel coronavirus ("COVID-19") on our operations and financial performance, and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have antic ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37935 Acushnet Holdings Corp. (Exact name of registrant as specified in its charter) Delaware 45-2644353 (State or other ju ...

Financial Data and Key Metrics Changes - Acushnet reported Q1 2022 sales of $606 million, an 8% increase at constant currency and a 4% gain on a reported basis compared to Q1 2021 [12][31] - Adjusted EBITDA for Q1 was $120 million, reflecting a decline of $15 million compared to the previous year [36] - Gross profit was $317 million, up $6 million or 2% year-over-year, with gross margins at 52.3%, down 120 basis points [33][34] - Net income attributable to Acushnet Holdings was $81 million, down $4 million from the prior year [36] Business Line Data and Key Metrics Changes - Golf balls sales increased by 6%, despite production constraints due to raw material shortages [13] - Titleist golf clubs saw a 3% increase in sales, with Q1 sales up over 75% compared to pre-pandemic levels [14] - Titleist gear experienced a 17% decline, impacted by supply shortages and fulfillment backlogs [15] - FootJoy grew by 24%, with double-digit gains across footwear, apparel, and gloves [16] Market Data and Key Metrics Changes - U.S. sales were up 4%, with golf balls exceeding expectations while gear and FootJoy sales lagged [18] - EMEA region showed accelerated growth off low comps from last year, with strong demand expected due to upcoming events [19] - Japan's sales were down 11% at constant currency, while Korea grew by 17% constant currency and 8% reported [20] Company Strategy and Development Direction - The company is focused on expanding distribution capabilities to reduce order backlogs and meet strong demand levels [15][28] - Acushnet aims to invest in product innovation and operational excellence, with a capital expenditure expectation of approximately $60 million for the year [41][42] - The company is also pursuing acquisitions that align with its focus on premium performance products [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the golf industry's health, citing strong participation and financial security among golf courses and retailers [21][62] - The company reaffirmed its full-year guidance, expecting consolidated net sales between $2.175 billion and $2.225 billion [48] - Supply chain challenges are expected to persist, but improvements in raw material availability are anticipated [26][46] Other Important Information - The Board of Directors approved a quarterly dividend of $0.18 per share, totaling about $13 million [9] - Cash flow from operations for Q1 was an outflow of $164 million, compared to an outflow of $30 million in the prior year [40] - The company repurchased 1.2 million shares for approximately $59 million during the quarter [44] Q&A Session Summary Question: Factors influencing full year outlook - Management indicated that the quarter met expectations and prefers to assess the full year outlook after Q2, considering weather and sell-through realities [55][56] Question: Structural health of the industry - Management noted that participation trends are largely weather-dependent, with positive indicators in regions with favorable weather [58][60][63] Question: Gross margin expectations - Management revised gross margin expectations to be down closer to 40 basis points due to higher raw material and freight costs [67][72] Question: International market performance - EMEA is expected to perform strongly in the first half, while Japan and Korea are anticipated to normalize throughout the year [74] Question: Inventory levels and expectations - Management expects inventory levels to increase to meet demand, aiming for a more normalized level by year-end [81] Question: Share repurchase strategy - The company plans to continue aggressive share repurchases, with a $150 million increase in authorization expected to be exhausted over the next year [83]

ACUSHNET HOLDINGS CORP. First Quarter 2022 Earnings Call May 5, 2022 DISCLAIMERS FORWARD-LOOKING STATEMENTS The forward-looking statements contained in this presentation are based on management's current expectations, including our current views with respect to the impact of the novel coronavirus ("COVID-19") on our operations and financial performance, and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have anticipat ...

Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37935 Acushnet Holdings Corp. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q Indicate by check mark whether the registrant (1) has filed all reports required to be filed ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37935 (800) 225-8500 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of ...

Financial Data and Key Metrics Changes - For Q4 2021, consolidated net sales were $421 million, essentially flat compared to 2020, with adjusted EBITDA at a loss of $5 million, reflecting strong demand and prioritization of production capacity for 2022 [13][30] - For the full year 2021, revenues increased by 33% to $2.15 billion, with adjusted EBITDA rising 41% to $328 million, and operating cash flow of $314 million [14][39] - Gross margins for the full year were 52.1%, up 60 basis points from the prior year, driven by higher sales volumes and average selling prices [35][36] Business Segment Data and Key Metrics Changes - Titleist golf ball sales reached $668 million, up 32% year-over-year, led by new Pro V1 and Pro V1x models [16] - Titleist clubs also saw a 32% increase, driven by new TSi metals, with gains across all product categories [17] - FootJoy's business increased nearly 40%, with significant growth in footwear and apparel [19] Market Data and Key Metrics Changes - All markets experienced over 20% growth for the year, with consistent demand across the U.S., EMEA, Japan, and Korea [21] - U.S. rounds of golf increased by 5% in 2021, with a 20% increase compared to 2019, aided by 800,000 new golfers [7][8] Company Strategy and Development Direction - The company is focused on product development and golfer connection, with capital investments at an all-time high to strengthen market leadership [10][12] - A disciplined approach to capital allocation is maintained, with $115 million returned to shareholders in 2021 through dividends and share repurchases [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the golf industry's structural health and strong demand for products, despite ongoing supply chain challenges [22][27] - The company expects full-year 2022 consolidated net sales to range from $2.175 billion to $2.225 billion, with adjusted EBITDA projected between $325 million and $345 million [53][54] Other Important Information - The company plans to increase capital expenditures to about $60 million in 2022, reflecting delays in receiving equipment due to supply chain challenges [44] - The Board of Directors approved a 9% increase in the quarterly dividend to $0.18 per share [11][47] Q&A Session Summary Question: Can you elaborate on channel inventory levels? - Management indicated that channel inventories are generally lean, down 10% to 20%, with golf balls and clubs most impacted [62][63] Question: What is the impact of the situation in EMEA on your business? - Management noted that the immediate impact on the golf business is limited, with oil prices being a significant variable affecting costs [67] Question: What data points are being monitored for growth in dedicated golfers? - Management highlighted strong demand from core dedicated golfers, who are playing more and purchasing more equipment [70][71] Question: How are supply chain challenges affecting guidance? - Management detailed that supply chain challenges vary by category, with limited raw material availability impacting golf balls and component availability affecting clubs [82][83] Question: What is the outlook for capital allocation? - Management confirmed that capital allocation priorities remain unchanged, with expectations for increased shareholder returns in 2022 [91][92]

ACUSHNET HOLDINGS CORP. Fourth Quarter 2021 Earnings Call March 1, 2022 DISCLAIMERS FORWARD-LOOKING STATEMENTS The forward-looking statements contained in this presentation are based on management's current expectations, including our current views with respect to the impact of the novel coronavirus ("COVID-19") on our operations and financial performance, and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have antici ...

Financial Data and Key Metrics Changes - Third quarter revenues reached $522 million, an increase of 8% year-over-year and up 25% compared to 2019 [9][10] - Year-to-date sales exceeded $1.7 billion, up 45% compared to the previous year and well ahead of 2019 levels [10][28] - Adjusted EBITDA for Q3 was $70 million, reflecting incremental supply chain costs and investments [9][27] - Year-to-date adjusted EBITDA was $333 million, up 80% [10][30] - Gross profit for Q3 was $269 million, up 7% year-over-year, but gross margin decreased to 51.5%, down 70 basis points [25][27] Business Line Data and Key Metrics Changes - Titleist Golf Ball sales were down 3% in Q3 but up 37% year-to-date [11][28] - Titleist Golf Clubs saw a 12% increase in sales for Q3 and a 52% increase year-to-date [13][28] - FootJoy year-to-date sales reached $462 million, up 42% on the year [15][28] - Titleist Gear sales increased by 4% in Q3 and 33% year-to-date [14][28] Market Data and Key Metrics Changes - All regions reported strong year-on-year gains, with Japan showing almost 50% year-to-date growth [16] - The U.S. market, representing about half of the global golf market, was up 45% year-to-date [16][18] - Rounds of play increased in major markets, with the U.S., Japan, and Korea up between 8% and 15% through September [17] Company Strategy and Development Direction - The company is focused on product innovation, golfer connection, and operational excellence as top priorities [34] - A $125 million capital investment is underway to support golf ball manufacturing and innovation [20] - The transition to a centralized U.S. distribution center aims to provide faster and more cost-effective fulfillment [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the health of the golf market and strong demand for products [18][21] - Supply chain challenges, including raw material shortages and increased freight costs, are expected to persist [18][37] - The company raised its full-year sales forecast to a range of $2.08 billion to $2.11 billion, reflecting a 30% increase at the midpoint compared to 2020 [37] Other Important Information - The company had approximately $319 million in unrestricted cash at the end of Q3, with total debt outstanding around $320 million [31] - The leverage ratio improved to 0.7x, down from 1.8x a year prior [32] - The Board of Directors declared a $0.165 per share dividend, payable in December [35][36] Q&A Session Summary Question: Insights on sustained sales growth and unit availability - Management noted that all categories are constrained in availability, with the biggest constraints in golf balls due to raw material shortages and production transitions [46] Question: Impact of supply chain on guidance - Management confirmed that supply chain constraints are affecting their ability to meet demand, leading to a flat sales outlook for Q4 compared to 2019 [57] Question: Market share and supply chain dynamics - Management indicated that while supply chain issues are prevalent, they believe they are managing well and expect to take advantage of available supply [65] Question: Trends in rounds played - Management reported that rounds are up 8% over 2020 and about 18% over 2019, with participation coming from various sources including returning golfers and new entrants [73][74]