MARKET OVERVIEWConsumer’s Perspective • Last season disappointed. Pent up

demand?• Economic Uncertainty – “fiscal cliff”• Wage growth flat • Continued lack of vacation time• Overall lack of time• “Nobody to go with”

Retailer’s Perspective• Smaller orders, smaller in-season

inventories• Very slow November• Waiting for snow in November

Supplier’s Perspective• Pre-season equipment orders for equipment

for 2012/2013 down 10% to 50% in equipment

• Retailer cash flow issues continuing into buying season

• Manufacturing costs overseas increasing due to labor initiatives, tariffs, materials costs increases, and currency policy

• Inventory risk – who carries the burden

Resort’s Perspective• Skier visits down 5% to 40% at resorts in

2011/12• Advance season pass sales strong• 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

AUGUST – NOVEMBER 2012 MARKET OVERVIEW

Results with Carryover Sales Included•Equipment – down 11% in units, down 13% in $ to $283M•Apparel – down 3% in units, down 4% in $ to $517M•Accessories – down 11% in units, down 7% in $ to $297M

Results with Carryover Sales Excluded•Equipment – down 16% in units, down 17% in $ to $253M•Apparel – down 7% in units, down 6% in $ to $487M•Accessories – down 15% in units, down 10% in $ to $276M

Comparing Inventory Units Nov 30, 2012 v. Nov 30, 2011

•Equipment inventories - 16% fatter- Alpine Equipment – 17% fatter- Snowboard Equipment – 22% fatter- Nordic Equipment – 9% leaner

•Apparel – 3% fatter•Accessories – 5% leaner

On Nov 30, 2012, $1.2BM in snow sports gear was sitting in snow sports specialty retail inventories, $112M more than on Nov 30, 2011.

AUGUST – NOVEMBER 2012MARKET OVERVIEW: INVENTORIES

AUGUST – NOVEMBER REGIONAL SPECIALTY SALES

• Western Specialty Sales: $181M, down 15%

• Northeastern Specialty Sales: $159M, down 18%

• Midwestern Specialty Sales: $110M, down 4%

• Southern Specialty Sales: $69M, down 19%

Source: SIA Snow Sports RetailTRAK™, Topline Regional Category View.

MARKET DISRUPTION OCT/NOV 2012

Hurricane Sandy - Disrupted lives and retail sales in late October and November along much of the length of the Eastern Seaboard. More than one-third of skiers and riders reside in areas directly impacted by this super storm. Snow sports specialty retailers in the Northeast suffered a $35M (18%) decline in season-to-date (through November) dollar sales and the South saw snow sports sales slip $16M (19%). Equipment dollar sales were particularly depressed in these two storm-struck regions, down 23% in the Northeast and down 27% in the South.

AUGUST – NOVEMBER 2012 (IN-SEASON) ALPINE SKI EQUIPMENT

EXECUTIVE SUMMARY• In all snow sports sales channels alpine ski equipment (In-season - excludes carryover):

– Chain Stores: $6M, down 15% in units and down 20% in dollars– Specialty Shops: $115M, down 17% in units and down 19% in dollars– Internet Shops: $35M, up 18% in units and up 9% in dollars

• Alpine ski equipment sales (In-season - excludes carryover) in all channels:– Alpine Skis: down 17% in $ sold to $79M, down 11% in units sold to 210,794– Alpine Boots: down 12% in $ sold to $58M, down 14% in units sold to 212,379– Alpine Bindings: down 7% in $ sold to 15M, down 7% in units sold to 101,126– Alpine Poles: down 12% in $ sold to $4M, down 11% in units sold to 107,930

• Alpine/AT boots with a walk mode and Vibram/rubber soles enjoyed a 121% increase in dollars sold through Nov to $5M with 11,222 units sold

• The majority of casual skiers are ages 25-34 (21%), while the majority of core skiers are 45-54 (17%)

• Carryover ski sales soared 25% to $6.8M.

• On-Resort Backcountry trails continue to grow in popularity – 2M alpine skiers reported participating in “backcountry” in lift served areas

ALPINE SKI MARKET OVERVIEW

AUGUST – NOVEMBER 2012SNOWBOARD MARKET EXECUTIVE

SUMMARY• Pre-season orders for snowboards were down 24% overall

• In all snow sports sales channels snowboard equipment (In-season - excludes carryover):– Chain Stores: $6M, down 32% in units and down 36% in dollars– Specialty Shops: $46M, down 31% in units and down 31% in dollars– Internet Shops: $30M, up 9% in units and up 3% in dollars

• Snowboard equipment sales (In-season - excludes carryover) in all channels:– Snowboards: down 22% in $ sold to $41M, down 22% in units sold to 140,568– Snowboard Boots: down 23% in $ sold to $21M, down 22% in units sold to 139,711– Snowboard Bindings: down 20% in $ sold to $20M, down 19% in units sold to 138,550

• Carryover sales in snowboard equipment reached $10M and were up 28% in units and up 17% in dollars sold compared to Aug – Nov sales in 2011.

• 7.6 million Americans participated in snowboarding at least 1 time in 2011/2012, down 7.5% from last season.

– Decline in participation of those who get on the mountain at least 9 times is nearly four times greater than the overall drop in snowboard participation

• Snowboard equipment specialty retail inventories are up 17% in units stored compared to levels on Nov 30, 2011. On Nov 30, 2012, $135M in snowboard equipment was in specialty retail inventories

• Through Nov 30, snowboard equipment margins in specialty shops for in-season snowboard equipment are down 6% to an average of 31.1% compared to margins through Nov 2011

SNOWBOARD MARKET OVERVIEW

SNOWBOARD MARKET OVERVIEW

CROSS COUNTRY MARKET EXECUTIVE SUMMARY

• The 2011/2012 snow sports season was particularly difficult for the Nordic community due to the lack of snow nationwide.

• 2012 2013 Pre-season orders down 40%+

• In all snow sports sales channels cross country ski equipment (In-season - excludes carryover):– Chain Stores: $748K, down 48% in units and down 48% in dollars– Specialty Shops: $5M, down 26% in units and down 22% in dollars– Internet Shops: $1M, down 33% in units and down 22% in dollars

• Cross country ski equipment sales (In-season - excludes carryover) in all channels:– Cross country Skis: down 27% in $ sold to $3M, down 30% in units sold to 18,398– Cross country Boots: down 28% in $ sold to $2.5M, down 33% in units sold to 19,921– Cross country Bindings: down 28% in $ sold to 860K, down 32% in units sold to 13,967– Cross country Poles: down 21% in $ sold to $676K, down 28% in units sold to 15,660

• Cross country equipment carryover sales were down 28% in $ sold and up 21% in units sold through Nov 30, 2012 compared to Nov 30, 2011

• On November 30,2012, Nordic equipment inventories were 7% leaner compared to Inventory levels on November 30, 2011. Lack of equipment orders for this season may be driving this trend.

• 4.3 million Americans participated in cross country skiing during winter 2011/2012, down 5% from the 2010/2011 season.

CROSS COUNTRY MARKET OVERVIEW

CROSS COUNTRY MARKET OVERVIEW

AUGUST – NOVEMBER 2012APPAREL EXECUTIVE SUMMARY

(Includes Carryover Sales)• Alpine apparel $ sales were down 4% compared to Aug – Nov 2011 sales.

Snow sports retailers sold $517M in apparel through Nov 2012– Chain Stores: $142K, down 6% in units and down 6% in dollars– Specialty Shops: $197M, down 11% in units and down 11% in dollars– Internet Shops: $178M, up 11% in units and up 8% in dollars sold – carryover sales

online grew 138% in $ sold to $16M – 9% of all online apparel sales were carryover

• Apparel sales In all snow sports sales channels:– Alpine Tops: down 1% in units to 3.3M, down 1% in dollars to $379M – Alpine Bottoms: down 9% in units to 533K, down 8% in dollars to $48M– Snowboard Tops: down 13% in units to 335K, down 21% in dollars to $37M– Snowboard Bottoms: down 12% in units to 205K, down 19% in dollars to $20M

• Soaring alpine top carryover sales indicate that consumers found the bargains they were looking for through November

– Carryover alpine tops up 118% in units to 307K units that sold for $19M, an 101% increase in $ sold. In fact, non-carryover alpine tops sales were down 6% in $ sold

AUG – OCT 2012ACCESSORIES EXECUTIVE

SUMMARYAccessories sales finished the 2011/2012 season down 15% in units and down 8% in dollars sold to $1.1B. Early in the 2012/2013 season, accessories sales are down 11% in units sold and down 7% in dollars sold to $297M

•Helmets - down 15% in units to 280K, down 16% in dollars sold to $21M•Goggles – down 22% in units to 249K, down 16% in $ sold to $17M•Gloves –down 13% in units to 712K, down 13% in $ sold to $26M•Headwear – down 13% in units to 1.1B, down 8% in $ sold to $24M•Base Layer – down 15% in units to 1B, down 7% in $ sold to $43M•Carryover accessories – up 53% in units, up 51% in $ to $20M

Accessories inventories in specialty shops were down 5% in units compared to Nov 30, 2011

Snowfall and weather overall have enormous impacts on accessories sales because many are bought on the way to, or at the resort. A good snow year could clean out inventories this season.

WEATHER OUTLOOK FOR 2012/2013Dec 29, 2012 Dec 29, 2011

LOOKING AHEAD: THREATS AND OPPORTUNITIES

• Fallout from a terrible season:• Smaller orders• Conservative product mix• Bankruptcy – retail and supply• Consolidation• Lack of momentum early season

2012/2013

• Opportunity to leverage a better snow season in 2012/2013? Snow Outlook Improving

• Will retailers sell through inflated inventories?

• How can we work together to keep snow sports healthy?