Bruunswick Fact Sheet

Brunswick CorporationAt-A-Glance

Helping Active People Live Active LivesDecember 2014

Helping Active People Live Active Lives2

What We Do

Helping people enjoy their lives and each other since 1845.

World’s leading provider

of marine engines,

pleasure boats,

fitness equipment and

billiards products

Founded

By John Brunswick, a Swiss immigrant woodworker in 1845, in Cincinnati, Ohio, to make billiards tables.

Headquarters:

Lake Forest, Illinois, a Chicago suburb.

Total sales

2013 net sales were approximately $3.6 billion.1

Geographic reach

Brunswick’s products are sold throughout North America, Europe, Asia/Pacific, South America, Africa and the Middle East.

Stock symbol

BC. Brunswick stock is traded on the New York and Chicago stock exchanges. Brunswick has been a member of the New York Stock Exchange since 1925.

Shares outstanding

92.6 million as of February 12, 2014.

Employees

Approximately 11,200 people worldwide at December 31, 2013.1

Website

www.brunswick.com

1Adjusted for bowling divestitures

Brunswick Corporation At-A-Glance

Brunswick Corporation

3

2013 Revenue by Segment

51% – Engine1

29% – Boat

20% – Fitness

51%

20%

29%

13%62%

9%

8%

6% 2%

Global Customer Base 2013

62% – U.S.

13% – Europe

9% – Canada

8% – Asia Pacific

6% – Latin America

2% – Africa & Middle East

Continuing Operations

2012 2013

Revenue $3.4 B $3.6 B

Operating Earnings2 $263 M $298 M

OperatingMargin2 7.7% 8.3%

EPS, as adjusted3 $1.83 $2.47

Segment U.S. International

Engine1 65% 35%

Boat 64% 36%

Fitness 50% 50%

Total 62% 38%

20% – Fitness

80% – Marine

Financial Profile

1 Adjusted for marine eliminations

2 Excludes restructuring charges of $25.4 million and $16.5 million in 2012 & 2013, respectively

3 Excludes reversal of deferred tax asset valuation allowance reserves, restructuring charges, debt losses and special tax items of $0.48, and ($5.60) in 2012 & 2013, respectively

Products and Servicesby Category and Region


2013 Revenue by Category

43% – P&A

43% – Engine (Outboard)

14% – Engine (Sterndrive/Inboard)

Brands Products and Servicesby Category and Region

Mercury Marine

Mercury MerCruiser

Mercury Diesel

Mariner

Mercury Racing

MotorGuide

Quicksilver

Attwood

Diversified Marine Products

Kellogg Marine Supply

Land ‘N’ Sea

Outboard Engines

2hp – 300hp (FourStrokes)

75hp – 250hp (OptiMax® Direct Fuel Injected)

2hp – 250hp (Traditional two-strokes for International sales)

60hp – 350hp (Mercury Racing)

Sterndrive and Inboard Engines

135hp – 430hp

520hp – 1650hp (Mercury Racing)

Diesel

115hp – 370hp

Electric Trolling Motors

30 – 109 pounds of thrust

Parts & Accessories (P&A)

World-leading products that are designed with boaters and their engines in mind, including boat accessories, service parts, oil and lubes, and rigging

Advanced Propulsion Systems

• Joystick Piloting for Outboard, Sterndrive and Pod systems

• SmartCraft® digital technology

• Advanced user-interface products, including:

– Information Displays

– Gauges

– Controls and Rigging

Non-Marine Market Capabilities

Aluminum casting, industrial propellers, gears and shafts

14%

43% 43%

12%65%

4%

9%

7%

3%

Engine SegmentMercury Marine positioned for sustained, industry-leading performance

2013 Revenue by Region

65% – U.S.

12% – Europe

9% – Asia Pacific


4% – Canada


5

Competitive LandscapeMercury Marine Advantages

ManufacturingLocations, Employees, Distribution

Global Competitors:

• Outboard

– Yamaha

– Suzuki

– Evinrude

– Honda

• Sterndrive/Inboard

– Volvo Penta

Advantages:

• Strong global brands with leading market shares

• Broadest, most comprehensive product portfolio

– 2hp – 350hp (Outboards)

– 135hp – 1650hp (Sterndrives)

– 300hp – 425hp (Inboards)

– 115hp – 370hp (Diesel)

• Leading global distribution network

• Focused on marine propulsion systems

• Global, low-cost producer

• Mercury Racing provides proven technology

• Significant parts and accessories and service provider:

– Land ‘N’ Sea and Attwood serve North America as well as nearly 80 additional countries

Engines:

• Fond du Lac, Wisconsin

• Suzhou, Peoples Republic of China

• Komagane, Japan (joint venture with Tohatsu Motor)

Parts/assembly:

• St. Cloud, Florida

• Lowell, Michigan

• Verviers, Belgium

• Juarez, Mexico

Mercury Marine employees:

More than 5,300 worldwide

Distribution:

• More than 7,000 dealers and distributors worldwide

• Nearly 4,000 dealers/retailers in the U.S.

History

1939 – Founded as Kiekhaefer Corporation

1947 – Lightning 10hp Outboard

1956 – Mark 75 Outboard

1961 – Brunswick acquires Kiekhaefer Corporation, predecessor of Mercury Marine

1961 – MerCruiser® sterndrive engine-and-drive packages unveiled

1996 – OptiMax® DFI Two-Stroke Outboard

2002 – SmartCraft® Technology is introduced

2004 – Verado®, industry’s first production supercharged outboard

2007 – Zeus® propulsion system with Joystick Piloting for Pods

2008 – Axius® propulsion system with Joystick Piloting for Sterndrives

2009 – 8.2L Sterndrive engine/drive package is introduced

2012 – 150hp FourStroke, experiences one of Mercury’s most successful launches ever

2013 – Joystick Piloting for Outboards is introduced

Eco-technology expands with introduction of Enertia® Eco-propeller

Product Awards 2004 - 2013:

• Five MotorBoating magazine “Best of” Awards

• Five JD Power and Associates® Awards

• Four IBEXSM Innovation Awards

• Two Field & Stream® “Best of” Awards

2011 – 2013 – Mercury initiates expansion projects to manufacturing areas, and one expansion project to Product Development and Engineering.

Consolidation of sterndrive/outboard production to Wisconsin completed.

Financial Profile

$ in millions 2011 2012 20132013 vs. 2012

Change

Revenue $1,905 $1,989 $2,088 +5%

Operating earnings1 $229 $248 $284 +15%

Operating margin1 12.0% 12.5% 13.6% +110bps

1 Excludes restructuring charges of $11 million in 2011 and $4 million in 2012


Recreational Fiberglass Pontoon and Fish

Propulsion: Sterndrive (S)/Inboard (I)/Outboard (O) Propulsion: Outboard

Runabout Cuddy Deck Cruisers Yachts Pontoon Freshwater Saltwater

Bayliner S,O S S,0 S3

Boston Whaler O

Crestliner O

Cypress Cay O

Harris FloteBote O

Lowe O O O

Lund1 O

Meridian I

Princecraft O O O

Quicksilver O S,O O

Rayglass2 S,O

Sea Ray S,O S S,O S,I,O I

Uttern O O

Brunswick Commercial & Government Products

Brunswick CompetesAcross Many Segments

Brands

Boat SegmentBrunswick brands are the world leaders in pleasure boats

21%

44%

35%

2013 Revenue by Category

44% – Aluminum

35% – Fiberglass - Sterndrive/Inboard

21% – Fiberglass - Outboard

8%

64%

19%

3%5%

1%

2013 Revenue by Region

64% – U.S.

19% – Canada

8% – Europe


3% – Asia Pacific

1% – Africa & Middle East1 Lund also makes fiberglass fishing boats

2 Rayglass/Protector also makes rigid inflatable boats

3 Sold in Latin America only

7

Global Competitors

Competitive LandscapeBrunswick Boat Advantages


• Highly fragmented industry, over 1,000 manufacturers in U.S. alone

• Strong brands with leading market shares

• Broad product portfolio known for quality and value

• Strong global dealer network

• Leading product development process and capabilities

• Best in class service and support

• Edgewater, Florida

• Palm Coast, Florida

• Fort Wayne, Indiana

• New York Mills, Minnesota

• Lebanon, Missouri

• Vonore, Tennessee

• Joinville, Santa Catarina, Brazil

• Princeville, Quebec, Canada

• Reynosa, Mexico

• Auckland, New Zealand

• Augustow, Poland1

• Vila Nova de Cerveira, Portugal

Boat Group employees:

More than 3,700 employees worldwide

Distribution:

More than 2,850 dealers worldwide

History

1957 – Bayliner established, acquired by Brunswick 1986

1958 – Boston Whaler founded, acquired by Brunswick 1996

1959 – Sea Ray established, acquired by Brunswick 1986

2004 – 2005 – Brunswick acquires aluminum boat brands, including Harris FloteBote and Lund

2012 – Sea Ray 370 Venture® sport cruiser is 2012 “Boat of the Year”

Quicksilver wins “Starter Boat of the Year” in Europe; three years running

2013 – Bayliner introduces value priced Element™ bowrider for about $12,999, revamps deck boat line-up

Boston Whaler 230 Vantage®, Harris FloteBote Crowne™ are innovation award winners

Sea Ray introduces popular 350SLX and 510 Sundancer

Ft. Wayne pontoon operation opens new plant to double factory space; New York Mills expansion commences in Minnesota

Recreational Fiberglass Pontoon and Fish

Runabout Cuddy Deck Cruisers Yachts PontoonAluminum Freshwater

Fiberglass Freshwater

Fiberglass Saltwater

Tahoe Jeanneau Hurricane Monterey Beneteau Bennington Tracker Ranger Sea Hunt

Jeanneau Beneteau Tahoe Jeanneau Azimut Tracker Alumacraft Nitro Scout

Chaparral Chaparral Chaparral Princess Godfrey Smoker Skeeter Grady White

Cobalt Regal

Financial Profile

$ in millions 2011 2012 20132013 vs. 2012

Change

Revenue $1,008 $1,003 $1,032 +3%

Operating loss2 $(19) $(7) $(6) +17%

Operating margin2 (1.9)% (0.7)% (0.6)% +10bps

1 Contract boat yard 2 Excludes restructuring charges of $8 million in 2011, $21 million in 2012, and $16 million in 2013


2013 Revenue by Category1

50% – Commercial (Cardio)

28% – Commercial (Strength)

78% – (Commercial Equipment)

14% – Consumer and Billiards

8% – Service

Brands Products and Servicesby Category and Region

Life Fitness

Hammer Strength

High-end fitness equipment for commercial and home use

Cardio Equipment

• Treadmills

• Lifecycle® exercise bikes

• Elliptical cross trainers

• Functional trainers

• Summit™ trainers

• Stairclimbers

• Lifescape™ software, attachable monitors for entertainment, data display

• LFopen™ platform to seamlessly integrate end users’ preferred fitness apps and websites

Strength Equipment

• Motion Technology Selectorized™ equipment, which allows users to obtain more proportionate results and add more strength-training variety to workouts

• Plate loaded

• Benches and racks

8%

50%

14%

28%

23% 50%

4%

12%

7%

4%

Fitness SegmentLife Fitness is the global leader in exercise equipment

2013 Revenue by Region1

50% – U.S.

23% – Europe

12% – Asia Pacific


4% – Canada


1 Restated results reflect the inclusion of Billiards business

9

Competitive LandscapeLife Fitness Advantages

Financial Profile


Global Competitors:

• Technogym

• Precor

• Cybex

• Johnson

Advantages:

• Recognized global brands

• Focus on user engagement, biomechanics, innovation and reliability

• Brands have leading market share in diverse customer segments such as health clubs, hospitality, local and federal government and home gyms

• Leader in innovation – Internet connectivity, only self-contained biomechanics lab

• Strong sales and marketing organization

• Franklin Park, Illinois

• Falmouth, Kentucky

• Ramsey, Minnesota

• Kiskoros, Hungary

Life Fitness employees:

More than 1,800 worldwide

Distribution:

Commercial sales are handled through the Life Fitness direct sales force, domestic dealers and international distributors. Consumer products are available at specialty retailers, select mass merchants, sporting goods stores, international distributors and the Life Fitness website.

History

$ in millions 2011 20121 20131 2013 vs. 2012 Change

Revenue $635 $657 $716 +9%

Operating earnings $94 $105 $108 +3%

Operating margin 14.7% 15.9% 15.1% (80bps)

1968 – Lifecycle® stationary bike invented

1977 – Life Fitness founded, iconic Lifecycle is first product

1997 – Brunswick purchases Life Fitness

Acquires Hammer Strength

2001 – 500,000th Lifecycle® bike produced

2007 – Life Fitness delivers seamless iPod® integration with exercise equipment and launches all-new Life Fitness® cardio line

2012 – Industry’s only open technology platform launched

Lifescape™ feature offers on-demand content, simulates world’s top trails for training

Lifecycle® GX group cycling bike introduced

Synrgy360™ group training system unveiled

1 Restated results reflect the inclusion of Billiards business

Helping Active People Live Active Lives

Bringing people together since 1845

Bruunswick Fact Sheet

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