Page 1 Walk Through the 2011 Recreational Boating Statistical Abstract Section 1 Boating Population 1.Participation Estimates Participation Study Results Boat Owner Study Results Section 2 Economic Factoids Section 3 Retail Market Section 4 Pre-owned Market

Page 2 Walk Through the 2011 Recreational Boating Statistical Abstract Continued Section 5 Marine Expenditures Section U.S. Boat Registrations Section 7 Imports/Exports Sections 8 to 17 Outboard Engine and Boat Sales by Category Section 18 NEW Accessory Study Results

Page 3 Webinar Presentation June 28, Recreational Boating Statistical Abstract Accessory Market Study

Page 4 This study is designed to investigate accessory purchase behaviors of new and pre-owned boat buyers both before and after boat delivery, including how consumers become aware of available accessories for their boats, and the role accessories play in choice of a dealer, broker or retailer. Among all boat owners, including existing owners (more than 18 months of ownership) report all 2011 accessory purchases by category. Document whether specific category purchases were add on, repair / replacements, or upgrades Examine seasonal buying patterns for add on, repair or replacements and upgrade purchases Document where purchases were made and who performed installation Compare 2011 accessory spending to 2010, as well as anticipated 2012 spending Study Objectives

Page 5 Study Methodology and Sampling Source Data / Methodology Summary Nationally representative sample of 3,000 boat owners Surveys conducted November, 2011 All respondents screened for sensitive occupations, boat decision maker and current recreational boat ownership Survey conducted via Internet web panel research Data weighted using NMMA-provided share data: 90% of all boats in operation are existing (bought > 18 mo), 8% are purchased used, 2% purchased new. Respondents exposed to 20 categories of accessories with examples included for each category. Boat SegmentUn-weighted Sample Purchased New (last 18 mo.) 892 Purchased Pre-owned (last 18 mo.) 1100 Existing owner (more than 18 mo) 1008 Total 3,000 Boat SegmentUn-weighted Sample Aluminum Outboards 1047 Fiberglass Outboards 1050 Sterndrive Boats 313 Inboard Boats 450 Sailboats 19ft Total 3,000

Page 6 Boat Accessory Categories

Page 7 Boat Owner Statistics Owner profile Summary Age range 18 – 82. Average age was 41 for new buyers, 44 for pre-owned buyers and 55 for existing owners Gender: 55% male for new buyers, 42% male for pre-owned buyers and 50% for existing owners Household recreational boat ownership: 1.6 boats for new buyers, 1.5 for pre-owned buyers and 1.4 for existing owners 88 brands of boats and 35 brands of motors represented Ethnicity: 90% Caucasian, 3% African American, 3% Hispanic, 2% Asian, 2% Other Other demographics recorded: Marital status, Education level, Employment status and Household income State of residence: all 50 states represented

Page 8 Purchased Boat From…Individual, Dealer, Broker Total Owners Owners by Boat Type

Page 9 Accessories Before Boat Delivery Purchased Pre-owned Purchased New Sources of Awareness of Accessories AvailableAdded Accessories before delivery

Page 10 How much did accessories influence your choice of the dealer, retailer or broker you purchased from (excludes purchased from individual) Accessories Influence Dealer or Retailer Choice 36% 15% Accessories drive dealer selection

Page 11 Timing of Initial Accessory Sales…First 6 Months Purchased Pre-owned Purchased New Within the first 6 months after delivery did you purchase any new accessories for your boat? If so when? First two months after delivery is prime time to market accessories

Page 12 % of Owners Who Purchased Accessories in 2011 % of owners who purchased one or more categories of accessories for their boat in out of 4 owners purchased accessories in 2011 After 4 years of ownership accessory buying continues

Page 13 Owner Spending on Accessories in 2011 Among those who purchased one or more accessory -- how much did you spend on accessories in 2011? (excluding installation and labor) New buyers are big spenders but don’t ignore Pre-owned buyers, or the existing owners (who represent the largest share of all owners)

Page 14 What They Bought in 2011 Which of the following categories of accessories did you purchase for your boat in 2011? All owners (multi mention)

Page 15 What They Bought in 2011 Which of the following categories of accessories did you purchase for your boat in 2011? By owners group (multi mention)

Page 16 What They Bought in 2011 Which of the following categories of accessories did you purchase for your boat in 2011? All owners (multi mention) New buyers purchased an average of 4 categories, pre-owned 3.7 and existing owners 2.5 categories

Page 17 Share of Spending …Add-ons, Repairs, Upgrades Purchased Pre-owned Purchased New Existing owner (19-48 mo.) What percent of the amount spent in 2011 was for add on items, repair or replacement items and upgrades? Existing owner (48+ mo.) Add on items continue through ownership cycle while repair and replacement parts grow

Page 18 When Do Owners Buy? In general is there a particular time of the year you tend to make purchases that are:

Page 19 Where Do They Buy Accessories? Where did you purchase these boat accessories in 2011? Dealers / boat shows get first opportunity among new boats only

Page 20 Who Did The Installation? Purchased Pre-owned Purchased New Existing Owner Who did the installation for any accessories you purchased? (multi mention) As accessory purchases shift to outdoor stores and retailers installation shifts to owner – missed opportunity for marinas??

Page 21 Satisfaction With Installation Installed by dealer Installed by retailer Installed by marina How satisfied were you overall with the installation performed by …

Page Versus 2010 Spending Net percent of owners that spent more / less in 2011 A net of 1.1% reported spending more in 2011

Page 23 Anticipated 2012 Spending Net percent of owners that expect to spend more / less in 2012 A net of 18.3% anticipate spending less in 2012 For some, need for repairs may not be anticipated??

Page 24 Estimated Total Spending on Accessories in 2011 Mechanically propelled boat owners including those who did not purchase accessories in 2011 The total accessory market estimate for mechanically propelled boats is nearly $4B for replacement / upgrade parts and over $2B for upgrades. X 10.4 million = $3.98 billion boats (Replacement / upgrades) $2.21 Billion (Add on items)

Page 25 1.Boating accessories are an integral part of the boat ownership process, both before and after the purchase process. Dealership / retailer selection is influenced by accessories available 2. During 2011, 75% of all boat owners purchased one or more accessories within the 20 categories. 3. Average spending (among those who did purchase) was $ Most popular accessories include: safety, boat maintenance & repair, engine maintenance & repair, anchoring & mooring and covers & tops. 5.Among new boat buyers, the selling dealership has a decided advantage over other accessory retailers. 6.Among pre-owned buyers and existing owners, outdoor stores, mass merchandisers, the internet and marine specialty stores are top accessory retailers. 7.Owners report accessory spending was about the same as % expect to spend the same or more in in 2012, 38% expect to spend less. Top Line Findings Summary

Page 26 More Details Inside 2011 Statistical Abstract –now available Buying Behaviors: By ownership type, boat type, when purchased, gender and amount spent. Product Category Results: By ownership type, boat type, when purchased, gender and amount spent Product Category Results Cross Tabulation: When purchasing one category what other category purchases most often occur? 2011 Accessory Spending: By ownership type, boat type, when purchased, gender and amount spent Accessory buyer Demographics: By ownership type, boat type, when purchased, and amount spent