Brunswick Earnings Conference Call Q2, 2015 July 30, 2015 Helping Active People Live Active Lives Brunswick Corporation – Earnings Release Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about Brunswick’s business. Forward-looking statements by their nature address matters that are, to different degrees, uncertain and often contain words such as “may”, “could”, “expect”, “intend”, “target”, “plan”, “seek”, “estimate”, “believe”, “predict”, “potential” or “continue”. These statements are not guarantees of future performance and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this presentation. These risks include, but are not limited to: the effect of adverse general economic conditions, including the amount of disposable income available to consumers for discretionary purchases, tight consumer credit markets, and the level of consumer confidence on the demand for the Company’s products and services; the ability of dealers and customers to secure adequate access to financing and the Company’s ability to access capital and credit markets; the ability to maintain strong relationships with dealers, distributors and independent boat builders; the ability to maintain effective distribution and develop alternative distribution channels without disrupting incumbent distribution partners; negative currency trends, including shifts in exchange rates; the ability to successfully manage pipeline inventories and respond to any excess supply of repossessed and aged boats in the market; credit and collections risks, including the potential obligation to repurchase dealer inventory; the risk of losing a key customer or a critical supplier; the strength and protection of the Company’s brands and other intellectual property; the ability to absorb fixed costs and manage production facilities while expanding capacity and enhancing product offerings; the ability to successfully manage the expansion of the Company’s manufacturing footprint; the ability of the Company to successfully implement its strategic plan and growth initiatives; the ability to obtain components, parts and raw materials from suppliers in a timely manner and for a reasonable price; the need to meet pension funding obligations; the effect of higher energy and logistics costs, interest rates and fuel prices on the Company’s results; competitive pricing pressures, including the impact of inflation and increased competition from international competitors; the ability to develop new and innovative products in response to changing retail demands and expectations that are differentiated for the global marketplace at a competitive price and in compliance with applicable laws; the effect of competition from other leisure pursuits on the level of participation in boating and fitness activities; the risk of product liability, warranty and other claims in connection with the manufacture and sale of products; the ability to respond to and minimize the negative financial impact of legislative and regulatory developments, including those related to environmental restrictions, climate change, healthcare costs, taxes and employee benefits; the ability to complete environmental remediation efforts and resolve claims and litigation at the cost estimated; the ability to maintain market share, particularly in high-margin products; the ability to maintain product quality and service standards expected by customers; the ability to protect the Company’s intellectual property; competition from new technologies; the uncertainty and risks of doing business in international locations, including international political instability, civil unrest and other risks associated with operations in emerging markets; the risk of having to record an impairment to the value of goodwill and other assets; the effect that catastrophic events may have on consumer demand and the ability to manufacture products, including hurricanes, floods, earthquakes, and environmental spills; the effect of weather conditions on demand for marine products; the inability to attract and retain individuals who could be key contributors to the organization; and risks associated with the Company’s information technology systems, including the continued use of legacy systems and the risk of a failure of or attacks on the Company’s information systems, which could result in data security breaches, lost or stolen assets or information, and associated remediation costs. Additional risk factors are included in the Company’s Annual Report on Form 10-K for 2014. Such forward-looking statements speak only as of the date on which they are made and Brunswick does not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date of this presentation or for changes made to this document by wire services or Internet service providers. Bruce J. Byots, Vice President - Investor Relations Brunswick Corporation, 1 N. Field Court, Lake Forest, IL 60045-4811 Phone: +1-847-735-4612 Fax: +1-847-735-4750 email: bruce.byots@brunswick.com 2 July 30, 2015 Brunswick Corporation – Earnings Release Use of Non-GAAP Financial Information and Constant Currency Reporting In this presentation, Brunswick uses certain non-GAAP financial measures, which are numerical measures of a registrant’s historical or future financial performance, financial position or cash flows that exclude amounts, or are subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets or statements of cash flows of the registrant; or include amounts, or are subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Brunswick has used certain non-GAAP financial measures that are included in this presentation for several years, both in presenting its results to shareholders and the investment community and in its internal evaluation and management of its businesses. Brunswick’s management believes that these measures (including those that are non-GAAP financial measures) and the information they provide are useful to investors because they permit investors to view Brunswick’s performance using the same tools that Brunswick uses and to better evaluate Brunswick’s ongoing business performance. For additional information, please see Brunswick's Current Report on Form 8-K issued on July 30, 2015, which is available at www.brunswick.com. For purposes of comparison, 2015 net sales growth is also shown using 2014 exchange rates for the comparative period to enhance the visibility of the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. 3 July 30, 2015 Brunswick Corporation – Earnings Release Dusty McCoy – Chairman and Chief Executive Officer Mark Schwabero – President and Chief Operating Officer Bill Metzger – Chief Financial Officer 4 July 30, 2015 Brunswick Corporation – Earnings Release Overview of Second Quarter 2015 • Revenue increased 6 percent -- on a constant currency* basis, sales increased by 11 percent. Growth in marine parts and accessories, fiberglass sterndrive/inboard and fiberglass outboard boats, fitness equipment and outboard engines, partially offset by declines in aluminum boats and sterndrive engines • Gross margin of 28.4 percent, flat to prior year • Operating expenses increased by 4 percent • Adjusted operating earnings increased by 9 percent compared to prior year, with operating margins up 30 basis points • Net interest expense reduced by $1.1 million • Adjusted pretax earnings increased by 11 percent • Diluted EPS, as adjusted of $1.05, up $0.11, or 12 percent *For purposes of comparison, 2015 net sales growth is also shown using 2014 exchange rates for the comparative period to enhance the visibility of the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. 5 July 30, 2015 Brunswick Corporation – Earnings Release Q2 Net Sales increased by $68.9 million, or 6% Net Sales Three Months Ended June 28, July 4, Segment ($'s in millions) Marine Engine Boat Marine eliminations Total Marine Fitness Total 2015 $ $ 2014 689.2 349.3 (70.3) 968.2 173.8 1,142.0 $ $ GAAP 652.4 324.1 (68.6) 907.9 165.2 1,073.1 1 % Change Constant Currency 6% 8% 11 % 11 % 7% 11 % 5% 6% 10 % 11 % Excluding impact of foreign currency translation, Q2 net sales increased by 11 percent 1Consolidated GAAP net sales reflected a 12% increase in the U.S., and a decrease of 3% in both Europe and Rest-of-World versus prior year. 6 July 30, 2015 Brunswick Corporation – Earnings Release First half Net Sales increased by $159.7 million, or 8% Net Sales Six Months Ended June 28, July 4, Segment ($'s in millions) Marine Engine Boat Marine eliminations Total Marine Fitness Total 2015 $ $ 1,251.4 667.3 (150.4) 1,768.3 359.4 2,127.7 2014 $ $ GAAP % Change 1 Constant Currency 1,157.5 606.9 (141.7) 1,622.7 8% 10 % 13 % 13 % 9% 13 % 345.3 1,968.0 4% 8% 8% 12 % Excluding impact of foreign currency translation, First half net sales increased by 12 percent 1Consolidated GAAP net sales reflected a 14% increase in the U.S., and a decrease of 2% in both Europe and Rest-of-World versus prior year. 7 July 30, 2015 Brunswick Corporation – Earnings Release Q2 Adjusted Operating Earnings increased by $12.8 million, or 9% Operating Earnings - Excluding Charges Three Months Ended July 4, June 28, 2015 2014 Change Segment ($'s in millions) Marine Engine Boat Total Marine Fitness Pension - non-service costs Corp/Other Adjusted operating earnings Restructuring Charges GAAP operating earnings Operating margin - excluding charges Operating margin - including charges 8 July 30, 2015 $ $ 131.8 20.9 152.7 23.2 (3.1) (18.6) 154.2 154.2 13.5% 13.5% $ $ 122.5 20.3 142.8 19.0 (3.7) (16.7) 141.4 (3.1) 138.3 13.2% 12.9% $ $ 9.3 0.6 9.9 4.2 0.6 (1.9) 12.8 3.1 15.9 +30 bps +60 bps Brunswick Corporation – Earnings Release First half Adjusted Operating Earnings increased by $19.6 million, or 9% Operating Earnings - Excluding Charges Six Months Ended July 4, June 28, 2015 2014 Change Segment ($'s in millions) Marine Engine Boat Total Marine Fitness Pension - non-service costs Corp/Other Adjusted operating earnings Restructuring charges GAAP operating earnings Operating margin - excluding charges Operating margin - including charges 9 July 30, 2015 $ $ 206.0 28.6 234.6 49.0 (6.1) (34.6) 242.9 242.9 242.9 11.4% 11.4% $ $ 184.2 28.7 212.9 48.7 (7.4) (30.9) 223.3 (3.1) 220.2 11.3% 11.2% $ $ 21.8 (0.1) 21.7 0.3 1.3 (3.7) 19.6 3.1 22.7 +10 bps +20 bps Brunswick Corporation – Earnings Release Q2 Adjusted Pretax Earnings increased by $15.2 million, or 11% July 4, 2015 ($'s in millions) Adjusted operating earnings Net interest expense Other income Adjusted pretax earnings Restructuring charges GAAP pretax earnings 10 July 30, 2015 $ $ Adjusted Pretax Earnings Three Months Ended June 28, 2014 154.2 (6.5) 2.5 150.2 150.2 $ $ 141.4 (7.6) 1.2 135.0 (3.1) 131.9 $ $ Change 12.8 1.1 1.3 15.2 3.1 18.3 Brunswick Corporation – Earnings Release First half Adjusted Pretax Earnings increased by $25.0 million, or 12% July 4, 2015 ($'s in millions) Adjusted operating earnings Net interest expense Other income Adjusted pretax earnings Restructuring charges GAAP pretax earnings 11 July 30, 2015 $ $ Adjusted Pretax Earnings Six Months Ended June 28, 2014 242.9 (13.0) 5.2 235.1 235.1 $ $ 223.3 (15.3) 2.1 210.1 (3.1) 207.0 $ $ Change 19.6 2.3 3.1 25.0 3.1 28.1 Brunswick Corporation – Earnings Release Q2 Diluted EPS, as adjusted, increased by $0.11, or 12% Earnings Per Share Three Months Ended July 4, June 28, 2015 2014 Diluted EPS from continuing operations Restructuring, exit and impairment charges Special tax items Diluted EPS from continuing operations, as adjusted 12 July 30, 2015 $ $ 1.14 (0.09) 1.05 $ $ 0.92 0.02 0.00 0.94 Brunswick Corporation – Earnings Release First half Diluted EPS, as adjusted, increased by $0.18, or 12% Earnings Per Share Six Months Ended July 4, June 28, 2015 2014 Diluted EPS from continuing operations Restructuring, exit and impairment charges Special tax items Diluted EPS from continuing operations, as adjusted 13 July 30, 2015 $ $ 1.73 (0.09) 1.64 $ $ 1.43 0.02 0.01 1.46 Brunswick Corporation – Earnings Release U.S. Powerboat Industry – Percentage Change in Units Q1-15 Q2-15 1H-15 1H-14 AL – Fish 9.9% 4.3% 6.4% 6.0% AL - Pontoon 8.7% 5.2% 6.0% 6.2% FG - Outboard 7.2% 9.3% 8.5% 8.8% 8.6% 6.2% 7.0% 7.0% FG – SD/IB (14-30 ft.) -10.2% -10.6% -10.5% -6.7% FG – SD/IB (31-40 ft.) 8.2% -0.8% 2.2% 9.6% FG – SD/IB (41-62 ft.) 17.4% 20.7% 19.5% 0.0% -6.5% -8.3% -7.8% -5.2% Main Powerboat Segments 7.1% 4.5% 5.3% 5.5% Total Industry (NMMA) 6.3% 4.9% 5.4% 5.4% Outboard Boats FG SD/IB Boats First half preliminary U.S. industry retail powerboat shipments increased 5.4% versus 2014 Source: Statistical Surveys, Inc.: 2015 preliminary data is based on 96% of Q1, 91% of April, 77% of May and 68% of June market reporting; Coast Guard data updated through 6/2015. Note: Total Industry (NMMA) also includes the fiberglass and aluminum lengths outside the ranges stated above, as well as ski boats, but excludes house and jet boats 14 July 30, 2015 Brunswick Corporation – Earnings Release 2014 Revenue By Region – Marine Segments Only Latin America 5% Africa & Middle East 2% Asia Pacific 7% Canada 9% Europe 12% International sales 35% 15 July 30, 2015 U.S. 65% Brunswick Corporation – Earnings Release Dusty McCoy – Chairman and Chief Executive Officer Mark Schwabero – President and Chief Operating Officer Bill Metzger – Chief Financial Officer 16 July 30, 2015 Brunswick Corporation – Earnings Release Marine Engine segment – Q2 sales by region Q2 - 2015 Region % Change % of Sales* GAAP Constant Currency United States 70% 11 % 11 % Europe 13% (4)% 16 % 17% (3)% 6% 7% 11 % Rest-of-World Total 100% Based on Constant Currency • U.S. sales increased in parts and accessories and outboard engines • European sales increased in all major product categories, in spite of weakness in Russia 2014 FY revenue by region*: U.S. 65%, Europe 14%, Asia Pacific 8%, Latin America 6%, Canada 4%, Africa & Middle East 3% *Excluding 17 sales to the Boat segment. July 30, 2015 • Rest-of-World revenue gains in outboard engines and parts and accessories, partially offset by declines in sterndrive/inboard engines and market weakness in Brazil Excluding impact of foreign currency translation, Q2 net sales increased by 11 percent; acquisitions contributed 5 percent to the segment’s year-overyear growth Brunswick Corporation – Earnings Release Q2 Outboard and Sterndrive engines Outboard • Favorable retail demand environment continues in overall U.S. outboard boat and engine categories, including recently launched products • Market share gain benefits, including in targeted saltwater, re-power and commercial markets Sterndrive • Unfavorable global retail demand trends continue • Market share stable 18 July 30, 2015 Brunswick Corporation – Earnings Release Q2 Marine Engine segment’s Parts & Accessories Boating Accessories Oil & Lubes Service Parts Trolling Motors Propellers Controls/Rigging • Growth in most major markets • Revenue benefited from recent acquisitions, new product launches and market share gains • Lower fuel costs a positive demand factor, offset to some degree by weather related boating restrictions in some regions 19 July 30, 2015 Brunswick Corporation – Earnings Release Factors affecting Marine Engine segment’s Q2 operating earnings Key Factors • • Higher sales Favorable product mix benefit from recently launched outboard products and P&A growth • Foreign exchange had an unfavorable impact Increase in investment spending • Q2 operating margin at 19.1% 20 July 30, 2015 Brunswick Corporation – Earnings Release Boat segment – Q2 sales by region Q2 - 2015 Region % Change % of Sales GAAP Constant Currency United States 70% 16% 16% Europe 9% (11)% 9% 21% (6)% (1)% 100% 8% 11% Rest-of-World Total Based on Constant Currency • U.S. sales continue to benefit from recently introduced new products and continued overall retail growth in outboard boat categories 2014 FY revenue by region: U.S. 67%, Canada 16%, Europe 9%, Latin America 4%, Asia Pacific 3%, Africa & Middle East 1% 21 July 30, 2015 • Sales growth in Europe resulted from new product introductions • Rest-of-World sales decreased, reflecting weaker demand in Canada Brunswick Corporation – Earnings Release Review of Brunswick Boat segment metrics Wholesale and Retail Metrics • In the second quarter, Brunswick’s global retail unit sales increased by 5 percent compared to prior year; global wholesale unit shipments decreased by one percent • For the six months, global retail unit sales increased by 7 percent, compared to prior year; global wholesale unit shipments were up one percent • Wholesale unit growth rate should approximate retail unit growth rate for the full-year Pipeline Metrics • Q2, 2015 ended with 31 weeks of product-on-hand, compared to 34 weeks at the end of Q2, 2014 • Pipelines in units for aluminum products are up modestly compared to last year; fiberglass sterndrive/inboard unit pipelines are up slightly versus the prior year; fiberglass outboard unit pipelines are down 22 July 30, 2015 Brunswick Corporation – Earnings Release Factors affecting Boat segment’s Q2 operating earnings Key Factors • Higher sales, including several new product introductions • Increasing costs associated with new product integrations, capacity expansions and production ramp-up • Foreign exchange had an unfavorable impact Q2 operating margin at 6.0% 23 July 30, 2015 Brunswick Corporation – Earnings Release Fitness segment – Q2 sales by region Region United States Europe Rest-of-World Total Q2 - 2015 % of Sales 50% 21% 29% 100% GAAP 6% 8% 2% 5% % Change Constant Currency 6% 23% 8% 10% Based on Constant Currency • Growth in sales reflects gains in the U.S. at health clubs and hospitality customers 2014 FY revenue by region: U.S. 51%, Europe 22%, Asia Pacific 11%, Latin America 8%, Africa & Middle East 4%, Canada 4% 24 July 30, 2015 • Net sales growth experienced in international markets, particularly in Europe and certain developing regions • All regions benefited from new product introductions Brunswick Corporation – Earnings Release Factors affecting Life Fitness segment’s Q2 operating earnings Key Factors • Higher sales • Unfavorable foreign exchange impact • Costs associated with planned capacity expansion and new product integrations Q2 operating margin at 13.3% 25 July 30, 2015 Brunswick Corporation – Earnings Release Dusty McCoy – Chairman and Chief Executive Officer Mark Schwabero – President and Chief Operating Officer Bill Metzger – Chief Financial Officer 26 July 30, 2015 Brunswick Corporation – Earnings Release Review of foreign currency impact1 40% Second Quarter 2015: LA/Other 35% • • Net FX transactions Sales in foreign currency 5% Outlook 2015: Costs in local currency 10% International Sales 15% Sales in foreign currency 20% Europe International sales % of Total Sales 25% Canada Asia Pacific 30% • Unfavorable impact on sales of approximately $46 million or 4.3 percent and operating earnings of approximately $8 million Unfavorable effect of currency on sales is approximately 4 percent2 Unfavorable impact on operating earnings comparisons of approximately 8 to 9 percent or $30 to $35 million (includes the impact of hedging activity)2 0% Net exposure is about 10 percent of sales 1Includes the impact of hedging activity 2Estimates 27 for the full-year assume that rates remain consistent with current rates for the remainder of the year July 30, 2015 Brunswick Corporation – Earnings Release Tax provision Q2 2015 Effective tax rate - GAAP Effective tax rate, as adjusted* 28.4% 34.0% 2014 34.0% 33.9% First Half 2015 2014 30.2% 34.0% Effective tax rates for 2014 and 2015, exclude any potential benefit from extension of U.S. R&D tax credit Estimated full-year 2014 and 2015: Effective Book Tax Rate, as adjusted*, is approximately 34 percent; Effective Cash Tax Rate to approximate low-teen percent levels. *Tax provision, as adjusted, excludes $8.5 million and $1.0 million of net benefits for special tax items for Q2 2015 and Q2 2014, respectively. Tax provision, as adjusted, excludes $9.1 million and $0.6 million of net benefits for special tax items for first-half of 2015 and 2014, respectively. 28 July 30, 2015 34.2% 34.0% Brunswick Corporation – Earnings Release Cash Flow – Continuing Operations ($'s in millions) Net earnings* Depreciation and amortization Pension funding, net of expense Changes in certain current assets and current liabilities** Income taxes Other, net Net cash provided by operating activities* Six Months Ended July 4, June 28, 2015 2014 $ 164.2 $ 136.2 43.8 37.5 (65.9) (11.5) (87.2) (162.2) 62.9 60.2 (9.0) 3.4 $ 108.8 $ 63.6 Net cash provided by operating activities* increased by $45.2 million *Continuing operations only **Excluding acquisitions 29 July 30, 2015 Brunswick Corporation – Earnings Release Free Cash Flow – Continuing Operations Six Months Ended July 4, June 28, 2015 2014 ($'s in millions) Net cash provided by operating activities* Net cash provided by (used for): Capital expenditures Proceeds from sale of property, plant and equipment Effect of exchange rate changes on cash balances Total free cash flow $ 108.8 $ (64.7) 1.0 (8.4) 36.7 Free cash flow higher by $20.0 million * Continuing operations only 30 July 30, 2015 $ 63.6 $ (50.4) 3.1 0.4 16.7 Brunswick Corporation – Earnings Release Cash and Marketable Securities Main factors affecting changes in YTD cash balances $636 $609 • Free cash flow of $37 million $’s in millions • Share repurchases of $60 million (approximately 1.15 million shares) • Dividends paid of $23 million • Discontinued operations cash inflow of $31 million 12/31/2014 31 July 30, 2015 7/4/2015 Brunswick Corporation – Earnings Release 2015 Outlook – P&L, as adjusted • Depreciation and amortization estimate of approximately $90 million • Pension expense of approximately $12 million, a decrease of $3 million • Net interest expense of approximately $26 million • Combined equity earnings and other income comparable to prior year • Effective book tax rate of approximately 34 percent • Average diluted shares outstanding of approximately 94.3 million 32 July 30, 2015 Brunswick Corporation – Earnings Release 2015 Outlook: Cash Flow Assumptions • Pension cash contributions of approximately $75 million • Current plan anticipates working capital changes to result in a modest usage of cash of $10 million to $30 million • Capital expenditure levels of approximately 4 percent of sales • Generate positive free cash flow of approximately $180 million to $200 million 33 July 30, 2015 Brunswick Corporation – Earnings Release Dusty McCoy – Chairman and Chief Executive Officer Mark Schwabero – President and Chief Operating Officer Bill Metzger – Chief Financial Officer 34 July 30, 2015 Outlook for Brunswick 2015 2015 Financial Targets • Revenue growth of approximately 6 percent to 8 percent • Slight improvement in gross margin levels • Operating expenses, as a percent of sales, to be lower than prior year • Solid gains in operating margins • Adjusted pretax earnings growth of 15 percent to 20 percent • Diluted EPS, as adjusted, of $2.75 to $2.85 Earnings to benefit from managing costs through initiatives such as Lean Six Sigma, and by implementing programs to improve supply chain and manufacturing efficiencies 35 July 30, 2015 Outlook for Brunswick 2015 Third Quarter – Early Forecast 36 • Revenue growth in the 6 to 8 percent range • Consolidated operating earnings to reflect incremental operating leverage in the low-20 percent range July 30, 2015 Marine Engine Segment Continued Revenue and Operating Earnings Growth Summary of Growth Strategy • Drive consistent, profitable growth • • • • • Stabilize engine platform technology Grow share in gas and diesel applications Parts & Accessories (P&A) • • Protect the core from low-cost entrants and grow share in underserved markets • 2014 to 2016 Targets • Revenue CAGR in mid-single digit percent range • Operating margins in the 14 percent to 15 percent range 2015 Targets • Revenue growth in mid-single digit percent range • Solid improvement in operating margins • Currency headwinds • Acquisitions continue to negatively impact operating leverage Sterndrive Engines • • • Outboard Engines • • Product leadership Be the best partner Enhance the winning culture Financial Targets Achieve growth through global share gain and portfolio expansion Adjacencies • 37 Leverage competencies to drive growth and diversification in complimentary businesses July 30, 2015 Mercury Marine Boat Group Segment Gain Market Share and Improve Profitability Summary of Growth Strategy • Establishing product leadership through continunous product feature innovation on key consumer values • Leveraging scale across functions • Driving product and business cost reductions to reduce consumers’ investment to participate in boating • • 38 Deeply understanding consumers’ needs and motivations and incorporating those into products and marketing Maximizing dealer network through increased coverage, improved sales tools and enhanced consumer engagement activities July 30, 2015 Brunswick Boat Group Financial Targets • • 2014 to 2016 Targets • Revenue CAGR in mid-single to high-single digit range • Operating margins in the 4 percent to 6 percent range 2015 Targets • Revenue growth in high-single to low double-digit range • Operating margin to be up, with year-over-year improvement in margin to be less than achieved in 2014 • Currency headwinds Fitness Segment Continued Revenue Growth with Strong Margins Summary of Growth Strategy • Aggressively leverage innovation to achieve competitive differentiation • Financial Targets • Develop new products and services complementary to existing portfolio that may extend into new markets • Leverage brand and distribution to enter product categories with high growth potential • Continued innovation drives market share in cardio, strength and group training categories 39 July 30, 2015 Life Fitness • 2014 to 2016 Targets • Revenue CAGR in mid-single to high-single digit range • Operating margins in the 14 percent to 16 percent range 2015 Targets • Revenue growth in the mid-single digit range • Flat to slightly up operating margin • Currency headwinds • Absence of 2014 favorable warranty adjustments Brunswick Earnings Conference Call 02, 2015 I Helping Active People Live Active Lives 2 0 Im?io >ozoz