Brunswick : Earnings Presentation with Script Q1 2024

4/25/2024

Q1 2024 Earnings

Conference Call

APRIL 25, 2024

1

4/25/2024

BRUNSWICK CORPORATION - EARNINGS RELEASE

Forward-Looking Statements

Certain statements in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick's business and by their nature address matters that are, to different degrees, uncertain. Words such as "may," "could," "should," "expect," "anticipate," "project," "position," "intend," "target," "plan," "seek," "estimate," "believe," "predict," "outlook," and similar expressions are intended to identify forward-looking statements. Forward-looking 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 rising interest rates, and the amount of disposable income consumers have available for discretionary spending; changes in currency exchange rates; fiscal and monetary policy changes; adverse capital market conditions; competitive pricing pressures; higher energy and fuel costs; managing our manufacturing footprint and operations; loss of key customers; international business risks, geopolitical tensions or conflicts, sanctions, embargoes, or other regulations; actual or anticipated increases in costs, disruptions of supply, or defects in raw materials, parts, or components we purchase from third parties; supplier manufacturing constraints, increased demand for shipping carriers, and transportation disruptions; adverse weather conditions, climate change events and other catastrophic event risks; our ability to develop new and innovative products and services at a competitive price; our ability to meet demand in a rapidly changing environment; absorbing fixed costs in production; public health emergencies or pandemics, such as the coronavirus (COVID-19) pandemic; risks associated with joint ventures that do not operate solely for our benefit; our ability to successfully implement our strategic plan and growth initiatives; attracting and retaining skilled labor, implementing succession plans for key leadership, and executing organizational and leadership changes; our ability to integrate acquisitions and the risk for associated disruption to our business; our ability to identify, complete, and integrate targeted acquisitions; the risk that restructuring or strategic divestitures will not provide business benefits; maintaining effective distribution; dealers and customers being able to access adequate financing; inventory reductions by dealers, retailers, or independent boat builders; requirements for us to repurchase inventory; risks related to the Freedom Boat Club franchise business model; outages, breaches, or other cybersecurity events regarding our technology systems, which have affected and could further affect manufacturing and business operations and could result in lost or stolen information and associated remediation costs; our ability to protect our brands and intellectual property; changes to trade policy and tariffs; an impairment to the value of goodwill and other assets; product liability, warranty, and other claims risks; legal, environmental, and other regulatory compliance, including increased costs, fines, and reputational risks; changes in income tax legislation or enforcement; managing our share repurchases; and risks associated with certain divisive shareholder activist actions.

Additional risk factors are included in the Company's Annual Report on Form 10-K for 2023. Forward-looking statements speak only as of the date on which they are made, and Brunswick does not undertake any obligation to update them to reflect events or circumstances after the date of this presentation.

Neha Clark - Senior Vice President Enterprise Finance

Brunswick Corporation, 26125 N. Riverwoods, Mettawa, IL 60045

Phone: +1-847-735-4001

Email: neha.clark@brunswick.com

©2024 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 2

Good morning and thank you for joining us. With me on the call this morning are Dave Foulkes, Brunswick's CEO, and Ryan Gwillim, CFO. Before we begin with our prepared remarks, I would like to remind everyone that during this call our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on these factors to consider, please refer to our recent SEC filings and today's press release. All of these documents are available on our website at Brunswick.com.

2

4/25/2024

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 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. In addition, in order to better align Brunswick's reported results with the internal metrics used by the Company's management to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures exclude the impact of purchase accounting amortization related to acquisitions, among other adjustments.

For additional information and reconciliations of GAAP to non-GAAP measures, please see Brunswick's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 25, 2024, which is available at www.brunswick.com, and the Appendix to this presentation.

Brunswick does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include restructuring, exit and impairment costs, special tax items, acquisition-related costs and certain other unusual adjustments.

For purposes of comparison, 2024 net sales growth is also shown using 2023 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. We refer to this as "constant currency" reporting.

©2024 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 3

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation sections of the unaudited consolidated financial statements accompanying today's results. I will now turn the call over to Dave.

3

4/25/2024

BRUNSWICK CORPORATION - EARNINGS RELEASE

01

Business

Overview -

Dave Foulkes,

CEO

©2024 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 4

Thanks Neha, and good morning everyone.

4

4/25/2024

BRUNSWICK CORPORATION - EARNINGS RELEASE

Brunswick had a solid start to the year, delivering sales, margin and adjusted earnings per share consistent with expectations, despite continued customer caution in the face of the economic uncertainty. Our performance benefitted from continued market share gains, the wealth of recently-launched and well-received new products, and comprehensive cost control measures across our businesses, offset by higher promotions and discounts on some product lines. We also continued to make good progress on our strategic initiatives.

Our first quarter net sales of $1.4 billion dollars and adjusted earnings per share of $1.35 were in-line with our guidance range and consistent with the anticipated, restrained, early-season marine dealer, OEM, and retail wholesale order patterns which drove reduced production rates across our product businesses compared to the first quarter of 2023, when pipelines were being filled.

Mercury Marine continued to capture market share, with first quarter U.S. outboard retail share up 200 basis points versus prior year.

Our early-season boat unit retail performance is tracking to the outlook of flat to 2023. As we move into the core 2024 retail selling season, we continue to work closely with our channel partners to maintain balanced current-model field inventory levels and we closed the first quarter with 36.1 weeks on hand in the U.S., which is inline with historical norms.

In addition, during the quarter, we successfully completed a debt issuance of $400 million to cover the refinance of our only near-term debt, further solidifying our cash position and balance sheet.

5

4/25/2024

BRUNSWICK CORPORATION - EARNINGS RELEASE

Segments continue to adapt with solid start to the year

I will now turn to some segment highlights for the quarter.

Our propulsion business delivered lower sales and earnings versus a record first quarter of 2023 as boat manufacturers and dealers moderated order patterns and managed production of current model-year products and pipelines ahead of the annual model-yearchange-over. We expect OEMs to remain cautious through the model-yearchange-over as they assess consumer sentiment and monitor the macro environment. Mercury continued to outperform the market, gaining 330bps of U.S. outboard market share in engines 150hp and above.

Our engine parts and accessories business continued its steady performance with sales and earnings down modestly from the first quarter of 2023 as anticipated, but increasing sequentially over the prior quarter. Early season weather patterns have been supportive of boating in the Northern U.S. and, with normalized inventory levels across the dealer network, continued strong boating participation should contribute to growth for the remainder of the year.

As expected, Navico Group had lower sales and earnings versus the first quarter of 2023 but delivered sequential sales growth and consistent earnings versus the prior quarter. Navico Group continues to focus on investment in new products, including the recently launched Simrad NSX Ultrawide multi-function display which has been very well received by customers, and is preparing for several important new product launches in the remainder of the year.

Finally, our boat business performed to plan, with exceptional retail performance by Boston Whaler and Sea Ray at early season boat shows, while continuing to introduce new models to support market share gains. Sales and earnings were below prior year, consistent with lower planned production levels, while operating margins improved sequentially. Freedom Boat Club continues to deliver steady membership sales and same club sales in the quarter were mid-single digit percent above prior year. Freedom has now expanded to 413 worldwide locations.

6

4/25/2024

BRUNSWICK CORPORATION - EARNINGS RELEASE

External, Customer and Consumer Conditions

©2024 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 7

Shifting to external factors now, U.S. GDP and employment remain stronger than anticipated, slowing the recent pace of disinflation and, consequently, the likely cadence of Fed rate reductions, which in turn is keeping consumer loan rates high. We are, however, seeing a higher proportion of buyers with high credit scores financing their purchases than in recent, prior periods and interest in the recently launched Brunswick retail finance program continues to increase with more than 35 percent of Brunswick boat dealers having enrolled.

The marine industry is continuing to lobby against the proposed NOAA East Coast vessel speed regulation and advocate for technology-based solutions. However, the exact contents of the proposed rule remain unknown, making an analysis of the impacts difficult.

As noted, dealer sentiment is generally sequentially improving but with appropriate inventory levels they are carefully pacing wholesale orders, particularly for current model-year, value product lines.

We are working with dealers to deploy a portfolio of targeted discounts and promotions. On a per-unit basis, retail and wholesale program spending is in-line with pre-pandemic levels but floor-plan support spending is higher. Our investments in digital platforms continue to drive benefits across our brands with more than 1/3 of Boat Group's sales digitally assisted in the first quarter.

Our surveys continue to show strong boating participation levels supportive of steady P&A demand.

Overall boat show results were encouraging, with interested buyers, strong lead generation, and sales above prior year levels on a unit basis and with a richer product mix. Our Boston Whaler and Sea Ray businesses demonstrated exceptional retail performance at early boat shows with new models supporting market share gains. Mercury Marine performed well at all major boat shows recording the highest outboard share at Dusseldorf, Miami and other key events.

7

4/25/2024

Shifting now to a global view of revenue in the quarter. Overall, we saw a 22 percent sales decline on a constant currency basis, excluding acquisitions.

8

4/25/2024

Moving now to U.S. retail performance, U.S. industry new boat unit sales in the quarter declined versus the first quarter of 2023. Brunswick internal retail data outperformed the overall market with particular strength in our premium brands.

Our year-to-date global internal unit retail sales are flat to prior year, including a solid start in the first weeks of the second quarter. It is not uncommon to see differences in SSI reporting and internal data at this point in the season, and our expectation of a flat retail market for the full-year currently remains unchanged.

U.S. outboard engine industry retail units declined 9 percent in the first quarter versus prior year. Mercury continues to outperform the market with an overall share gain of 200 basis points in the quarter.

We continue to successfully manage boat pipelines and we ended the quarter with U.S. inventory at 36.1 weeks, in-line with expectations and historical norms, and with 13.5 thousand units in the pipeline versus nearly 18 thousand units in 2019. International boat pipelines were slightly higher, which is normally the case.

Notably, our first quarter U.S. boat pipelines declined versus the end of the fourth quarter of 2023, which is unusual given the first quarter is commonly a period of building pipelines ahead of the selling season, underlining the caution being exhibited by our channel partners.

9

4/25/2024

BRUNSWICK CORPORATION - EARNINGS RELEASE

02

Financial

Overview -

Ryan Gwillim,

CFO

©2024 BRUNSWICK CO. CONFIDENTIAL AND ALL RIGHTS RESERVED. 10

I will now turn the call over to Ryan to provide additional comments on our financial performance and outlook.

10