2025 Cullasasja Club Annual Meeting Presentation

A NNUAL M EMBERS ’ M EETING

Sunday, September 21, 2025 3:00 p.m.

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A GENDA  Board and Committee Recognition & Thanks  Update from Club President, Bruce Johnson  Brief State of the Club Update – Chris Conner  Local Area Club Comparison of Fees & Metrics  Membership Update – Chris Conner  Membership Growth  Current Member Demographics  Club Finance - Tim Lamphier  Current and Potential Capital Improvements  Election Results  Adjournment 2

2025 B OARD OF G OVERNORS Executive Committee & Officers Bruce Johnson, President Hugh Woltzen, Vice President

Lewis Collins, Secretary Jacquie Harris, Treasurer Jack Hill, Ex-Officio Directors of the Board of Governors Nancy Harrison Lee Martino Jim Moore Alice Quinif Bruce Van Fleet

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2025 C LUB C OMMITTEE C HAIRS COMMITTEE COMMITTEE CHAIR By-Laws and Legal: Lewis Collins Compensation & Benefits: Hugh Woltzen Croquet: Julie Wright Facilities & Property: Michael Howard Finance & Audit: Jacquie Harris Golf: Jim Moore Green: Lee Martino Grievance: Jo Hill House & Social: Alice Quinif Long Range Planning: Nancy Harrison Membership: Bruce Van Fleet Nominating: Jack Hill Tennis: Anne Schaeffer 4

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C LUB U PDATE AND P RIORITIES

Bruce Johnson, Club President

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F INANCIAL S TATUS

The Club continues to be in excellent financial shape, with operating and non operating results for the year on track to exceed our budget. This marks our eighth consecutive year of excellent financial performance.

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B OARD OF G OVERNORS G OALS & O BJECTIVES FOR 2025  Investing in Our Future: We will plan, approve, and oversee major projects to improve our facilities.  Enhancing Member Experience: We will monitor usage and staffing in high-traffic areas like the dining rooms and golf facilities to ensure a great experience for everyone.  Strengthening Recruitment & Retention: We are committed to recruiting and retaining top-tier employees who are crucial to the Club’s success.  Upholding Our Culture: We will protect and enhance the “Cullasaja Culture” that defines who we are as a club.  Striving for “Best in Class” Experiences: Our goal is to be a leader in providing excellent experiences for our members and an outstanding work environment for our employees. 8

S TATE OF THE C LUB

 We have a strong and effective governance model with trusted Board and Committee leadership, a talented group of highly dedicated employees; and an engaged and active membership.  The Long-Range Planning Committee, Facilities & Property, House & Social, Green, Golf, Membership, Finance & Audit, Wellness, Croquet and Tennis Committees have all been instrumental as we look to what is possible in the future.

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S TATE OF THE C LUB  Our Membership Level is currently 348 (297 General/Full Golf and 51 Social)  We currently have 1 vetted membership on the wait list.  We should outperform the 2025 Operating & Non Operating Budgets.  The new wellness center will open this winter and officially be christened during the 2026 season. There are several other improvements the Board and specific committees are currently reviewing based on your input.

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S TATE OF THE C LUB

 All three phases of Golf Course Improvement Plan are now complete. The renovated driving range opened in May, and the new Short Game area opened in mid-August.  We are currently receiving bids for the work at the Activity Center which is scheduled to start this winter and open in June or July 2026.  We are continuing to look at options for new employee housing with a focus on management housing.

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Local Area Club Comparisons

Chris Conner

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Membership Update Chris Conner, GM/COO

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Current

Initiation  General or Full Member: $125,000  Social Member: $100,000

 Age Incentive Member: Board suspended this category since the Club reached its current membership cap.

 The Club offered limited Preview Memberships this season. There are no preview opportunities in the months of July and August, and no more than 5 couples at any given time during the other months.

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S TATE OF THE M EMBERSHIP R ECAP

 Membership invitations have returned to pre covid averages while attrition remains steady.  Now that the Board mandated cap has been met, we will begin to see vetted potential Members on the waitlist.  New members’ average age range is around 60, meaning the Membership is getting younger and the average membership tenure could increase.  Financially the Club is performing well with additional initiation fees and new dues income. 26

Membership Demographics

Chris Conner

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M EMBERSHIP D EMOGRAPHICS  Currently, there are 649 people in the membership database…331 females and 318 males.  Average age of the 632 Cullasaja members that we have age info is 71.10  At this point last year, the overall average age was 70.07

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A GE D EMOGRAPHICS

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N EW M EMBER A GE D EMOGRAPHICS

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S TATE OF O RIGIN D EMOGRAPHICS

Cullasaja Club - Member Residency as of 9/19/25 (651 Total Members)

300

281

250

200

162

150

100

83

44

50

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9 16

8

2

2

2

2

2

2

2

2

1

1

0

OH PA AZ KS KY MO MS OK UT VA LA TN AL TX SC NC GA FL

Current Off-Season Residency as of 9-19-25

LA, 8, 1%

TN, 10, 2%

FL, 279, 45%

AL, 19, 3%

TX, 28, 4%

SC, 48, 8%

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NC, 67, 11%

GA, 162, 26%

YTD 2025 New Member Winter Residences

FL 54%

GA 20%

MS 5%

SC 13%

VA 5%

OH 3%

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Financial Review Tim Lamphier, CFO

On behalf of Jacquie Harris, Treasurer

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A NNUAL A UDIT Cullasaja Club engaged with Forvis/Mazars accounting firm to conduct an external audit of the accounting records for fiscal year 2024. The result of the audit was an unmodified, or “clean” opinion, meaning the Financial Statements of Cullasaja Club present fairly, in all material respects, the financial position of Cullasaja Club. The audit reports and internal financial statements are available for review at anytime in my office.

A CTUAL 2024 C LUB O PERATING R ESULTS , E XCLUDING D EPRECIATION ( DOLLARS IN THOUSANDS )

Actual 2024 $4,665 $2,624 $7,289

Budget 2024 $4,564 $2,441 $7,005

Favorable (Unfavorable)

Dues

$101 $183 $284 $196

Other Revenue Total Income Payroll Expense

<$3,605> <$3,801>

<$79>

Other Operating Expense <$3,268> <$3,189>

$117 $401

Total Expense

<$6,873> <$6,990>

Net Club Operations

$416

$15

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A CTUAL 2024 C LUB N ON -O PERATING R ESULTS ( DOLLARS IN THOUSANDS )

Actual 2024 $1,925

Budget 2024

Favorable (Unfavorable)

Initiation Fees Capital Dues

$1,820

$105

$857 $169

$838

$19 $84

Other Non-Op Revenue

$85

Total Non-Op Revenue $2,951

$2,743

$208

Member Acquisition Exp <$96> <$86>

<$10>

Other Non-Op Expense

<$16> <$28>

$12

Total Non-Op Expense <$112> <$114>

$2

Net Non-Operating

$2,839 $2,629

$210

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Favorable Operating Variance from Budget (excluding depreciation)

2018

2019

2020

2021

2022

2023

2024

$800,000

$730,135

$700,000

$600,000

$500,000

$406,473 $416,388

$400,000

$313,223

$275,841

$300,000

$243,342

$166,467

$200,000

$100,000

$0

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Non-Operating Variance from Budget

2018

2019

2020

2021

2022

2023

2024

$1,211,645 $1,199,138

$1,250,000

$1,045,175

$1,000,000

$750,000

$500,000

$391,051

$209,414

$250,000

$89,617 $101,669

$0

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W HERE DO Y OUR D UES GO ? (C APITAL & O PERATING )

General & Admin 25%

Clubhouse 8%

Capital Reserves Fund 5%

Activity Center/Pool 4%

Food & Beverage 12%

Golf 29%

Tennis & Croquet 3%

Capital Projects/Debt 11%

Employee Housing 3%

A CTUAL 2025 C LUB O PERATING R ESULTS , E XCLUDING D EPRECIATION ( DOLLARS IN THOUSANDS ) T HRU A UGUST 31, 2025

Actual YTD $3,278

Budget YTD

Favorable (Unfavorable)

Dues

$3,259 $1,724

$19

Other Revenue Total Income Payroll Expense

$1,857

$133 $152

$5,135 $4,983 <$2,704> <$2,755>

$51

Other Operating Expense <$2,447> <$2,349>

<$98> <$47>

Total Expense

<$5,151> <$5,104>

Net Club Operations

<$16> <$121>

$105

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A CTUAL 2025 C LUB N ON -O PERATING R ESULTS , E XCLUDING D EPRECIATION ( DOLLARS IN THOUSANDS ) T HRU A UGUST 31, 2025

Actual YTD $1,540

Budget YTD

Favorable (Unfavorable)

Initiation Fees Capital Dues

$1,190

$350

$896

$889

$7 $4

$88

Other Non-Op Revenue

$92

Total Non-Op Revenue $2,528

$2,167

$361

Member Acquisition Exp <$38> <$43>

$5

<$9> <$4> $357

Other Non-Op Expense

<$22> <$13>

Total Non-Op Expense <$60> <$56>

Net Non-Operating

$2,468 $2,111

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2021 C APITAL I MPROVEMENT P ROGRAM (D OLLARS IN THOUSANDS ) S OURCES & U SES – P ROJECTED 2022 THRU 2028 Funding Sources: Beginning Cash $481 Transfer from Accumulated Operating Surplus $1,650 Capital Dues $4,498 Initiation Fees (Net) $10,377 Total Funding Sources $17,006 Projects/Uses: Croquet Pavilion (complete) <$347> Golf Course & Practice Facilities (complete) <$6,473> 1785 House Purchase (complete) <$2,461> Tennis/Croquet Center (complete) <$696> Wellness Center (projected) <$5,078> Tennis Retaining Wall Replacement (estimate) <$1,107> Activity Center (estimate) <$2,969> Employee Housing (estimate) <$1,862> Debt Service/Interest Exp: <$510> Total Projects/Uses <$21,503>

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2021 C APITAL I MPROVEMENT P ROGRAM (D OLLARS IN THOUSANDS ) P ROJECTED D EBT & C ASH B ALANCES 2028 Year-End Gross /Surplus <$4,497> Projected Cash Balance $886 Net /Surplus <$3,611> Net Debt per Member (Projected 335 Mbrs.) $11 • Purchase of 1785 House not in original plan. • Wellness Center costs significantly higher than original estimates. • Construction costs have increased significantly since plan was approved in 2021. • Tennis Retaining Wall is failing – replacement not in original plan. Other projects not factored into above numbers, but being considered for the future include: • Sweetwater Room Renovation • Golf Learning Center • Fairway Café Expansion • Clubhouse Redecorating (furniture/fixtures/finishes) • Complete Golf Cart Path Repaving • Cart Barn Reconstruction • Pickleball Courts (One or more of these potential projects may commence before 2028)

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Current and Potential Future Club Improvements

Chris Conner

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Current Capital Improvements & Repairs  All three phases of the Golf Improvement are done with the completion of the driving range and new short-game area.  The new Wellness Center at 1785 Cullasaja Club is scheduled to open on January 1 st , 2026.  With final Board approval, the planned renovation of the Activity Center could commence in December and be completed in June 2026.  This off-season, we are replacing a failing railroad tie retaining wall at the lower tennis courts and full croquet lawn area.

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New Wellness Center Lower Level - Strength

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New Wellness Center Main Level – Cardio & Classrooms

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New Wellness Center Massage Treatment Rooms

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Reimagined Activity Center

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Reimagined Activity Center

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Winter Capital Repair Project Railroad Tie Wall Replacement at Tennis & Croquet

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Potential Future Improvements

Working with various Club committees to analyze Member desires to develop a Master Facilities Plan. Some areas being looked at include:  Fairway Café Expansion with Kitchen Improvements  Sweetwater Dining Room Renovation  Employee Housing Expansion for Managers  Pickleball Courts

 Golf Learning Center  Cart Barn Renovation  Golf Cart Path Repaving

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Potential Future Improvements

 The Board of Governors, working with various committees, has done an outstanding job approving and implementing improvements throughout the Club.  Employee Housing is a continuing concern to be able to attract high quality management professionals with families.  We are currently 8 bedrooms short for current employee count and are housing them in trailers.  Will need more employees to offer dining services in the new Activity Center when the Clubhouse is used for a wedding, tournament, or special event.

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Employee Housing

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Meeting Recap

o We are fortunate to have an exceptional group of volunteer leaders who actively contribute strategic guidance through our Committee and Board governance. Their commitment plays a vital role in shaping the Club’s continued success. o Our membership is deeply engaged and values the strong sense of community and connection we share. Your warm and welcoming spirit is one of the top reasons prospective members are consistently drawn to join—it's truly contagious. o We’re also proud of our outstanding team of dedicated professionals who work tirelessly to deliver a remarkable and memorable experience for every member and guest. o The Club is competitively positioned to enhance and expand amenities in alignment with the evolving desires of our membership. o Financially, the Club remains in a robust position, with both short term stability and a long-term outlook that is exceptionally strong.

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Election Results

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Questions and Answers

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