Acushnet : Annual Report 2023

2023 Annual Report

Our Mission	Our Vision	Our Values
Enrich the experience of	Build a family of golf	Passion for Dedicated
dedicated golfers through	performance brands that	Golfers, Performance &
products and services of	are unrivaled leaders in	Quality Excellence, Driven
superior performance, quality	every category in which	to Innovate, A Spirit of
and innovation.	we compete.	Leadership, Integrity & Respect,
		Bridge Builder Mindset.

O U R B R A N D S

LETTER FROM THE

PRESIDENT AND CEO

Dear Valued Shareholders,

Constancy of purpose is a simple concept. "An unwavering clarity of why the organization exists, where it is going, and how it will get there enables people to align their actions as well as to innovate, adapt and take risks with greater confidence."(1)

While simple in concept, many companies find it challenging to achieve. Acushnet associates, for more than 90 years, have embraced a constancy of purpose. Our mission, vision and values serve as a north star and shape our daily work. These also influence our choices and sometimes the difficult decisions we make for the long-term good of dedicated golfers, our trade partners and our brands. We focus on doing the right thing for the right reason with the long view in mind. This is the foundation of how we create shareholder value.

Affirming the merits of the company's constancy of purpose, in 2023 Acushnet achieved sales of $2.4 billion, net income of $198 million and adjusted EBITDA of $376 million and returned $384 million to shareholders through our dividend and share repurchase programs.

CONSISTENCY

One of Acushnet's greatest strengths is consistency. While it may not be the most exciting of attributes, we place a high value on consistency. Ask competitive golfers what they need to play their best, and they will inevitably answer that they need consistency in every aspect of their game and in the products that they trust. In a game of precision, consistency of product performance is vital.

Consistency builds trust with golfers and trade partners, yet it is equally critical for our shareholders. We strive to do what we say we are going to do. Our commitment to satisfying dedicated golfers and trade partners consistently delivers results and ultimately, value to you.

PRODUCT INNOVATION AND FITTING

Golf is an aspirational game and dedicated golfers aspire to continuously improve. They invest the time and energy to play better through practice, instruction, and getting fit for equipment that helps to optimize their performance. They also expect that innovation and technology will make new products better, not just different.

We have a golfer centric mindset in all that we do. Our design development process starts with listening to golfers and ends with validating performance and quality prior to any new product launch. In 2023, new Titleist Pro V1 and Pro V1x golf balls were exceptionally well received on the worldwide professional tours, at elite amateur championships and by

1. Shingo Institute Model

Titleist posted a 73% ball count on the worldwide professional tours, seven times more than the nearest competitor.

CEO LETTER

In the U.S., rounds of play

grew 4% in 2023 and are

up over 20% since 2019.

dedicated golfers. We celebrated Titleist's milestone achievement as the #1 ball played at the U.S. Open for 75 consecutive years (and still counting). We posted a 73% ball count on the professional tours, seven times more than the nearest competitor. Our ongoing investment in golf ball fitting and education optimizes golfer performance with the right Titleist golf ball model for their game.

Titleist club performance in 2023 was led by the launch of new T-series irons and Scotty Cameron Super Select putters and reinforced by expanding club fitting capabilities in global regions. As we enter 2024, new Vokey SM10 wedges and Scotty Cameron Phantom putters provide energy and momentum throughout the pyramid of influence and in the market. Our best-in-class fitters clearly demonstrate our products' performance advantages to dedicated golfers.

FootJoy is the #1 shoe and #1 glove on the worldwide professional tours. This position, earned year after year, is fueled by product and service innovation and our commitment to performance and design excellence. New PRO/SLX and Quantum footwear models, along with our proprietary new FitLab performance footwear system, highlight just a few of our 2024 initiatives that will enhance golfers' experience with FJ.

INVESTING IN THE FUTURE

We continue to make significant strategic capital investments in golf ball and club R&D and operations to enhance product performance and quality. In 2024, we plan to expand our Pro V1 and Pro V1x capacity and custom club manufacturing capabilities. We have developed new golf ball fitting and wedge apps that bring a high-level fitting experience to even more golfers. New distribution and custom embroidery centers in Massachusetts will enhance Titleist gear and FJ service levels.

ENDURING CULTURE

Golf is a people and product business, and Acushnet's associates remain the key to sustaining our success. We strive to create an empowering and inspiring experience for our associates. This is critical throughout the associate journey, from the recruitment of new talent to professional development of those in the middle of their careers to the retention of long tenured associates who mentor and share their institutional knowledge with the next generation. Our culture fosters committed associates who aspire to build upon Acushnet's long running success story.

HEALTH OF INDUSTRY AND 2024 OUTLOOK

As we conclude another rewarding year of performance and look ahead towards continued growth, we remain optimistic about the structural health of the golf industry, given the positive trends in both participation and rounds. In the U.S., rounds of play grew 4% in 2023 and are up over 20% since 2019. Globally, dedicated golfers continue to be resilient while at the same time the game welcomes new participants at an accelerated rate. We believe our investments in golfer connections, fitting experiences, digital technologies, increased capacity and supply chain infrastructure will drive demand for our high performance products and strengthen support for our trade partners.

2023 Annual Report

We continue to take a balanced approach to capital allocation, prioritizing organic investment that will fuel growth and deliver a positive return on capital, and returning capital to our shareholders through our dividend and share repurchase programs.

With a constancy of purpose to guide our path forward, our 7,300 worldwide associates are energized for the year ahead. On behalf of Acushnet's Board of Directors and our dedicated team of associates, we thank you for your support and will continue to work hard to earn your trust.

Best,

David Maher

President and Chief Executive Officer

CEO LETTER

2023 Sales

$2.4B

Represents a year over year increase of 4.9%, or 6.2% on a constant currency basis

This letter contains references to Adjusted EBITDA and net sales on a constant currency basis, which are not measures of financial performance prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and may not be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures may exclude items that are significant to understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to net sales, net income or other measures of profitability or performance under GAAP. See "Key Performance Measures" and "Results of Operations" in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K included in this Annual Report for a description of how we calculate Adjusted EBITDA and net sales on a constant currency basis and for a reconciliation of Adjusted EBITDA to net income attributable to Acushnet Holdings Corp., the most directly comparable GAAP financial measure.

Acushnet Holdings Corp.

FORWARD-LOOKING STATEMENTS

This Annual Report, including our President and CEO's letter to shareholders, includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by that section. These forward-looking statements reflect our current views with respect to, among other things, our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. We use words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "foreseeable," "future," "intend," "may," "plan," "potential," "predict," "project," "seek," "will," and similar terms and phrases to identify forward-looking statements, although not all forward-looking statements use these identifying words. The forward-looking statements contained in this Annual Report are based on management's current expectations and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond our control. For additional information, please see the Special Note Regarding Forward-Looking Statements and the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024 (enclosed herein), as it may be updated by our periodic reports subsequently filed with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements.

Any forward-looking statement made by us in this Annual Report speaks only as of the date of this Annual Report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward- looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward- looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

2023 Annual Report

Following is the company's annual report on Form 10-K

for the fiscal year ended December 31, 2023.

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