brunswick bowling & billiardslibrary.corporate-ir.net/library/97/978/97828/items/272896/4...
TRANSCRIPT
Brunswick Bowling & Billiards Family Entertainment Driving Growth
Warren N. HardiePresident – Brunswick Bowling & Billiards
Brunswick Investor MeetingChicagoDecember 11, 2007
2December 11, 2007
Bowling Retail is the Largest Component
Billiards15%
Products35%
Retail50%
2007F Business Unit Revenue as % of Total
Billiards 15%
Bowling Retail 50%
Bowling Products 35%
5December 11, 2007
Brunswick Billiards Tables
Providence Park Falls
Danbury Allenton
Original Craftsmanship and Design
9December 11, 2007
Bowling Industry and Demographics
• Bowling is one of the world’s oldest sports, invented 5,000 years ago and now popular in over 100 countries
• More than 66 million people bowl on an annual basis in the UnitedStates
• Bowling is the #1 participatory sport in the United States• 10 million kids celebrate their birthday in a bowling center each year,
making bowling centers the #1 birthday party destination for kids 12 and under
• Bowling is the decade’s fastest-growing American high school sport, with participation up 6% in 2006-2007
• The fastest growing consumer segments are children and families with children
• 64% of all bowlers are younger than 35
Source: Simmons Market Research Bureau, Inc. 2007, National Sporting Goods Association Sports Participation Study 2006. UnitedStates Bowling Congress, Strike Ten Entertainment, National Federation of State High School Associations
10December 11, 2007
Bowling IndustryU.S. Center Trends
DescriptionDescription 20012001 20062006 % Change% Change
Number of Centers
Number of Lanes
Revenue Per Lane
6,309
128,440
$18,727
5,647
116,062
$20,478
-12%
-10%
9%
Opportunity for opening new family entertainment centers and modernizing existing centers
Opportunity for opening new family entertainment centers and modernizing existing centers
Source: Key Bowling Indicators and Trends – June 2007
11December 11, 2007
Recreational Play in U.S. Expanding
51%
49%
58%
42%
2001 2006
100% 100%
0
20
40
60
80
100%
Lineage of League Play vs. Open Play
% of League Play% of Open Play
CAGR
-3.1%
2.9%
The increase in casual bowlers presents an opportunity for new family entertainment centers
The increase in casual bowlers presents an opportunity for new family entertainment centers
Lineage of League Play vs. Open Play
12December 11, 2007
The Image of Bowling is ChangingOld image New image
Stale Hip
Old Retro/edgy
Smoky Clean
Blue collar All demographics
13December 11, 2007
Bowling Products Includes Everything You Need to Open and Maintain a Bowling Center
Pinsetters Scoring Lanes Furniture
Parts & Supplies
Bowling Pins
Lane Machines
Bowling Balls
14December 11, 2007
Bowling Products is a Global BusinessBowling Products Sales
0%
20%
40%
60%
80%
100%
1
Rest of the World
United States
40%
60%
2007E
15December 11, 2007
Red Rock Lanes – Las VegasIndustry and DemographicsBB&B Overview Billiards Bowling Products Bowling Retail
19December 11, 2007
Brunswick Bowling Retail
• More league focused, casual bowlers during slow times
• Re-imaged BRCs
• Upgraded ancillary revenue activities
• Increased emphasis on the casual bowler
• Upgraded food & beverage and additional floor space for ancillary activities
42December 11, 2007
Brunswick Zone XLsA Cut Above the Rest
Brunswick Zone/BRC Brunswick Zone XL
• Restaurant menu
• Full restaurant kitchen
• Restaurant-style service throughout bowling center
Food & BeverageFood & Beverage
• Limited menu
• Snack bar kitchen
• 35-75 games, 2-story laser-tag• Redemption center
• 10-25 games• Limited redemption
GamesGames
• Birthday partiesGroup EventsGroup Events • Corporate parties and birthday
parties
43December 11, 2007
Brunswick Zone XLs
5%
32%
63%
36%
34%
30%
BRC/Brunswick Zone Brunswick Zone XL
100% 100%
0
20
40
60
80
100%
Revenue Mix
Center Type
Bowling
Food andBeverage
Games
The revenue generated from a Brunswick Zone XL is two to four times the revenue of a traditional BRC or Brunswick Zone
The revenue generated from a Brunswick Zone XL is two to four times the revenue of a traditional BRC or Brunswick Zone
Generate Higher % of Sales from Games and Food & Beverage
44December 11, 2007
Brunswick Zone XLsAccelerating Growth
Numberof
BrunswickZone XLsOpened
2004 2005 2006 2007 2008F
2
1 1
3
4
0
1
2
3
4
Number of Brunswick Zone XLs Opened Per Year• We are building the
organization to support the Brunswick Zone XL growth initiative
• We are exploring financing alternatives to accelerate the growth
• Also growing through management contracts