Topgolf Callaway Brands : Third Quarter 2022 Earnings Conference Call Presentation

Topgolf Callaway Brands Corp.

Third Quarter 2022

Earnings Conference Call

November 3, 2022

IMPORTANT NOTICES

Forward-lookingStatements. During the presentation, any comments made about future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's and Topgolf's financial outlook (including net revenues, same venue sales, Adjusted EBITDA, Adjusted EBITDA Margin, Segment Adjusted EBITDA, capital expenditures, depreciation & amortization, net leverage, venue financing liability and venue economics), new product lines, strength and demand of the Company's products and services, addressable markets and the consumer base, continued brand momentum, demand for golf and outdoor activities and apparel, continued investments in the business, benefits of strategic collaborations, increases in shareholder value, consumer trends and behavior, future industry and market conditions, Topgolf venue openings, Toptracer installations, digital reservations, capital allocation priorities, anticipated stock repurchases, pricing of products and services, foreign exchange and hedging, freight costs and impacts of inflation, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often characterized by the use of words such as "estimate," "expect," "anticipate," "project," "plan," "intend," "seek," "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "will," "could," "predict," "continue" and the negative or plural of these words and other comparable terminology. Such statements reflect the Company's best judgment as of the time made based on then current market trends and conditions. Actual results could differ materially from those as a result of certain risks, unknowns and uncertainties applicable to the Company and its business. For additional details concerning these and other risks and uncertainties that could affect these statements and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 10-Q and 8-K subsequently filed with the SEC from time to time. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Regulation G. In addition, in order to assist you with period-over-period comparisons on a consistent and comparable basis, today's presentation includes certain non-GAAP information. The Company provided information excluding certain non-cash amortization and depreciation of acquired intangible assets and purchase accounting adjustments. Non-recurring items including legal costs and credit agency fees related to a postponed debt refinancing, IT integration and implementation costs associated with new ERP systems stemming from acquisitions and non-cash asset write-downs in 2022, non-cash amortization of the debt

discount related to the Company's convertible notes in 2021, acquisition and other non-recurring items (including integration costs and a $252.5 million non-cash gain in 2021 resulting from the Company's pre- merger equity position in Topgolf), and changes in the Company's non-cash valuation allowance recorded against certain of the Company's deferred tax assets as a result of the Topgolf merger. This non-GAAP

information may include non-GAAP financial measures within the meaning of Regulation G. These non-GAAP measures should not be considered as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period-over-period comparisons and in forecasting the Company's business going forward. Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying

performance of the Company's business with regard to these items. The Company has provided reconciliations of such non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP. The reconciliations are included in this presentation or in the schedules to the Company's November 3, 2022 earnings release, which is available on the Investor Relations section of the Company's website located at https://www.topgolfcallawaybrands.com/.

For forward-looking Adjusted EBITDA, Adjusted EBITDA Margin, Segment Adjusted EBITDA, non-GAAP depreciation and amortization expense, 4-Wall EBITDAR, 4-Wall EBITDAR margin, 4-Wall Cash Flow and

cash-on-cash return information (collectively, the "Non-GAAP Projections") provided in this presentation, reconciliation of such Non-GAAP Projections to the most closely comparable GAAP financial measure is not

provided because the Company is unable to provide such reconciliation without unreasonable efforts. The inability to provide a reconciliation is because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the applicable GAAP financial measure in the future but would not impact the Non-GAAP Projections. These items may

include certain non-cash depreciation, which will fluctuate based on the Company's level of capital expenditures, non-cash amortization of intangibles related to the Company's acquisitions, income taxes, which can

fluctuate based on changes in the other items noted and/or future forecasts, and other non-recurring costs and non-cash adjustments. Historically, the Company has excluded these items from Adjusted EBITDA, Adjusted EBITDA Margin, Segment Adjusted EBITDA, 4-Wall EBITDAR and 4-Wall EBITDAR Margin. The Company currently expects to continue to exclude these items in future disclosures of such measures and may also exclude other items that may arise. The events that typically lead to the recognition of such adjustments are inherently unpredictable as to if or when they may occur, and therefore actual results may differ materially. This unavailable information could have a significant impact on the applicable GAAP measure.

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BUSINESS OVERVIEW

Chip Brewer

President & Chief Executive Officer

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STRONG Q3 PERFORMANCE

NET REVENUE

$ in millions

$989

$857

Q3 2021

Q3 2022

ADJUSTED EBITDA1

$ in millions

$139 $144

Q3 2021

Q3 2022

Continued momentum across all segments

1. See Appendix for Adjusted EBITDA reconciliation to GAAP. Additionally, as Adjusted EBITDA is a non-GAAP measure, please see the Regulation G disclaimers on page 2 of this presentation.
2. "Constant Currency" information estimates the impact of changes in foreign currency rates on the translation of the Company's current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the current or projected local currency results and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.

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SEGMENT HIGHLIGHTS

	TOPGOLF			GOLF EQUIPMENT

ACTIVE LIFESTYLE

~11% SVS growth in Q31

Opened 2 new owned and operated venues in Q3

Increasing digital reservation capabilities and launching national advertising campaign in 2023

Continued strong demand

~21% US golf ball share2

Expect segment net revenues to increase 12% or more in FY22 vs. FY21

Brand momentum and strength continued across all brands

TravisMathew delivered double digit revenue and profit growth

On track to deliver approximately $1B in net revenues in FY22

1. Same venue sales (SVS) represents sales for the comparable venue base, which is defined as the number of Company-operated venues with at least 24 full fiscal months of operations. SVS growth is

compared to the same period in 2019.	5
2. Source: Golf Datatech. Hard goods US market share and US golf ball share represent year to date data through September 30, 2022.