Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Investor Day (July 2012)
184 slides from Polaris's investor day presentation, Jul 31, 2012
Slide 1: Opening Remarks / Strategy Overview
Opening Remarks / Strategy Overview Scott Wine, CEO Bennett Morgan, President & COO July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING Exhibit 99.1
Slide 2: Safe Harbor
Safe Harbor Safe Harbor Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2012 sales, shipments, net income, cash flow, and manufacturing realignment transition costs and savings, and certain l
Slide 3: Scott Wine, CEO: Opening Remarks
Scott Wine, CEO Opening Remarks July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 4: 2012 First Half Financial Metrics
2012 1 st Half Financial Metrics Excellent First Half Results Half Financial Metrics Excellent First Half Results 2012 YTD Actual Variance to ‘11 Sales $1,429 +25% Net Income $129.9 +35% Gross Profit % 28.8% +4 bps Op Profit % 14.1% +134 bps Net Income % 9.1% +70 bps Cash Flow $ $78.4 +27% Sharehold
Slide 5: Track Record of Shareholder Return
Track Record of Shareholder Return Continuous Commitment to Enhancing Shareholder Value Track Record of Shareholder Return Return on Invested Capital (ROIC) Dividends (per share) Return on Assets (ROA) Five Year Total Return July 26, – July 26,
Slide 6: Guiding Principles & Priorities
Guiding Principles & Priorities Winning the Right Way – Every Day, Always Guiding Principles Best People, Best Team Safety & Ethics Always Customer Loyalty Performance Priorities Growth Margin Expansion Product & Quality Leadership Operational Excellence Guiding Principles & Priorities Winning the R
Slide 7: Strategic Objectives
Strategic Objectives Clear Consistent Strategy Strategic Objectives Best in Powersports PLUS 5-8% annual organic growth Growth through Adjacencies $1B - $2B from acquisitions and new markets Global Market Leadership >33% of Polaris revenue Operations: A Competitive Advantage Op Ex drives > 200 bps o
Slide 8: Bennett Morgan: Strategy Overview
Bennett Morgan President & COO Strategy Overview July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 9: Excellent 2012 First Half
Excellent 2012 First Half Expect Another Record Year in 2012 Excellent 2012 First Half Overall good performance, but room for improvement Sales & Income up again; margins, inventory less so Strong N.A. retail sales up 17% YTD Solid momentum against tougher comps / competition ORV & Victory performan
Slide 10: Growth & Success Driving Change
Growth & Success Driving Change What’s Different from Start of 2010 Growth & Success Driving Change What’s Different from Start of Powersports industry is growing Additional $1.5B of growth Capacity pressures will require future investments 2200+ New people since 2010 – 50% of team; New perspectives
Slide 11: North American Retail Sales Trends
North American Retail Sales Trends Polaris Retail Trends Remain Strong; Industry Growing Best in Powersports Plus North American Retail Sales Trends Polaris Retail Trends Remain Strong; Industry Growing -22% -17% -4% 9% 11% 20% 18% 13% 19% 15% 11% 17% 17% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1
Slide 12: Summer Dealer Show MY'13 Product News
Summer Dealer Show MY’13 Product News Very Strong MY’13 News – Positive 2H Catalyst Best in Powersports Plus Summer Dealer Show MY’13 Product News Very Strong MY’13 News – Positive 2H Catalyst INDIAN MY13 Chief Vintage LE MY13 Boardwalk MY13 RANGER Midsize MY13 Scrambler XP MY RANGER XP RZR 570 LE M
Slide 13: Unprecedented R&D Investments to Fuel Future Growth
Unprecedented R&D $ Level Investments to Fuel Future Growth Research & Development 4.1% 4.0% 4.0% 4.3% 4.0% 4.3% Unprecedented R&D $ Level Investments to Fuel Future Growth Research & Development $73.6 $77.5 $63.0 $84.9 $105.6 $61.7 YTD R&D $ % Sales
Slide 14: Best in Powersports PLUS
Best in Powersports PLUS #1 in Powersports – Core Business Healthy Snowmobiles Best in Powersports PLUS Off-Road Vehicles #1 in Powersports – Core Business Healthy PG&A On-Road Vehicles Polaris Sales (in millions) Polaris Sales (in millions) Polaris Sales (in millions) Polaris Sales (in millions) FY
Slide 15: Growth through Adjacencies
Growth through Adjacencies Building Businesses with New Customers / Markets Remain #1 in Ultra-light Segment 1st Half sales up over 2011 Began first shipments of SOCOM ATV MV850 Strong interest in Military RZR, available Q3 2012 Acquired Resilient Technologies in Q2, manufacturer of high performance
Slide 16: Global Market Leadership
Global Market Leadership Currencies, Eurozone, Latin America Headwinds; 16% of Sales Outside N.A. YTD 2012 Sales Growth by Region Increased ORV market share – remain clear leader in Europe Sales up 13% YTD; Currency was negative 3% YTD EMEA up YTD, but growth slowing due to Western Europe economic c
Slide 17: Polaris / Eicher Joint Venture
Polaris / Eicher Joint Venture Aligns with Two Polaris Key Strategic Objectives Growth Through Adjacencies Global Market Leadership Polaris / Eicher Joint Venture Aligns with Two Polaris Key Strategic Objectives Proven product development capabilities World class quality and reliability LEAN manufac
Slide 18: N.A. Dealer Inventory
N.A. Dealer Inventory Delivery Improvement Remains Key Focal Priority and Opportunity 19 19 Operations as a Competitive Advantage N.A. Dealer Inventory Polaris N.A. dealer inventory up 17% from 2011 ATV dealer inventory about flat from 2011 Side-by-side and Victory Motorcycle inventory up due to: Co
Slide 19: Polaris Drivers of Success
Polaris Drivers of Success This is Our Winning Advantage – Will Maintain & Improve Sustainable Competitive Advantage Polaris Drivers of Success Innovative Culture People and processes that drive innovation and a passion for performance Applications Engineering Capability to develop & refine unique s
Slide 20: Q&A
Q&A Scott Wine, CEO Bennett Morgan, President & COO July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 21: Snowmobiles
Snowmobiles Mike Jonikas, V.P. - Snowmobiles, Sales & Marketing July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 22: Snowmobiles Video
Snowmobiles Analyst July 2012 Snowmobile Video
Slide 23: Industry Overview Snowmobiles
Industry Overview Snowmobiles Industry Overview Analyst July 2012 Snowmobile Industry Outlook Growth in Ultimate Segment Growth in Mountain & Crossover Segments Industry Retail Units Stable Nominal growth with favorable snow fall Registered consumer owner base is sizeable & stable Average age of buy
Slide 24: Polaris Retail Sales Growth (11/12 season)
Polaris Retail Sales Growth (11/12 season) Snowmobiles Analyst July 2012 Polaris Retail Sales Growth (11/12 season) 24% UP Scandinavia & Russia 0.5% UP North America Despite Weaker Snowfall Conditions Excellent Snowfall Conditions Russian Economic Tailwinds
Slide 25: Polaris Market Share Growth
Polaris Market Share Growth Polaris is Definitive Market Share Gain Winner 2 Years Running Competitor Market Rank 10/11 Season 11/12 Season Snowmobiles Analyst July 2012 Polaris Market Share Growth Polaris Highlights During 11/12 Season Polaris is Definitive Market Share Gain Winner 2 Years Running
Slide 26: Growth Strategy Roadmap
Growth Strategy Roadmap Staying Pinned! Snowmobiles Growth Strategy Roadmap Analyst July 2012 1. Terrain Dominating Sleds Industry leading consumer satisfaction Innovative chassis performance 2. Transform Go-to-Market Stronger consumer demand creation presence More effective dealership retail planni
Slide 27: Terrain Dominating Sleds
Terrain Dominating Sleds High Quality New Sleds Drive Market Share Gains Snowmobiles MY’13 Product Innovation Terrain Dominating Sleds Analyst July 2012 Quality Improvement Continues High Quality New Sleds Drive Market Share Gains Strong Consumer Satisfaction Results Driving Polaris to World Class S
Slide 28: Transform Go-to-Market
Transform Go-to-Market FEBRUARY 10 , 2012 TH Transform Go-to-Market
Slide 29: More Effective Dealership Retail Event Plans
More Effective Dealership Retail Event Plans Transform Go-to-Market Snowmobiles More Effective Dealership Retail Event Plans Transform Go-to-Market Analyst July 2012 Maximize Customer Traffic into Dealerships Help Dealerships Close More Sales During Key Periods
Slide 30: Margin Expansion
Margin Expansion Snowmobiles Margin Expansion Excellent Progress to Date - Further Opportunity Exists Mix Benefit with segment trends in ultimate, mountain, and crossover Strength based pricing moves Value Analysis / Value Engineering cost reduction Quality improvements Analyst July 2012 Gross Profi
Slide 31: Snowmobiles Summary
Snowmobiles Summary Snowmobiles Market Share Expected to Grow Snowmobiles Summary Analyst July 2012 Roadmap For Future Growth Generating Profitable Growth Retail sales Market share Margins Terrain dominating sleds Transform go-to-market Further margin expansion Snowmobiles Sales 1H 2011 1H 2012 FY 2
Slide 32: Q&A Snowmobiles
Q&A Snowmobiles July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 33: N.A. Sales & Corporate Marketing
N.A. Sales & Corporate Marketing Mike Jonikas, V.P. – Snowmobiles, Sales & Marketing July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 34: Agenda
Agenda N.A. Sales & Corporate Marketing Agenda On Track to “3-Peat” During 2012 Generating strong business growth results for the rd year in a row Retail sales, market share, network brand value, and dealership count Roadmap To Drive Future Growth Flow business model leadership - ORV MVP, Victory RF
Slide 35: Growth: Polaris N.A. Retail Sales
Growth: Polaris N.A. Retail Sales N.A. Sales & Corporate Marketing Growth: Polaris N.A. Retail Sales Analyst July 2012 +17% +15% +17% -16% 1H 2012
Slide 36: Growth: Polaris N.A. Market Share
Strong #1 in Powersports Growth: Polaris N.A. Market Share N.A. Sales & Corporate Marketing Strong #1 in Powersports Growth: Polaris N.A. Market Share Analyst July 2012 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 2012F (Using Total Motorcycle Industry) Honda Polari
Slide 37: Growth: Polaris Network Brand Value
Growth: Polaris Network Brand Value N.A. Sales & Corporate Marketing Growth: Polaris Network Brand Value Analyst July 2012 Harley Polaris Honda BRP Kawi Yamaha Arctic Suzuki OEM Retail Sales Units Per N.A. Dealership During 2011
Slide 38: Growth: Polaris N.A. Dealership Count
Growth: Polaris N.A. Dealership Count N.A. Sales & Corporate Marketing Growth: Polaris N.A. Dealership Count Analyst July 2012 2 Year CAGR for Dealership Count (1Q vs. 1Q 2010) Polaris Harley Arctic Honda Kawi Yamaha Suzuki BRP +2% -2% -2% -4% -5% -6% -6% -8%
Slide 39: Roadmap to Drive Future Growth
Roadmap to Drive Future Growth Growth Strategy Remains the Same - Accelerating Execution N.A. Sales & Corporate Marketing Analyst July 2012 Roadmap to Drive Future Growth Growth Strategy Remains the Same - Accelerating Execution 1. Flow Business Model Leadership - ORV MVP, Victory RFM Maximize retai
Slide 40: Flow Business Model
Flow Business Model Polaris Business Model Leadership N.A. Sales & Corporate Marketing Convert Motorcycles to Flow Model Flow Business Model Strong Results Since MVP Launch Dealer level stocking & inventory levels Stronger retail selling practices Growth: retail sales & market share Next Generation
Slide 41: Strong N.A. Dealership Counts
Strong N.A. Dealership Counts Polaris Leadership Position in Key Markets N.A. Sales & Corporate Marketing Strong N.A. Dealership Counts Industry leading product innovation and consumer satisfaction Strong OEM marketing and program support plans Flow business model leadership Analyst July 2012 2011 A
Slide 42: Q&A N.A. Sales & Corporate Marketing
Q&A N.A. Sales & Corporate Marketing July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 43: Dave Longren, V.P. Off-Road Vehicles
Dave Longren, V.P. - Off-Road Vehicles July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 44: ORV Business Breakdown
ORV Business Breakdown RANGER & RZR #1 PRIORITY; SPORTSMAN REMAINS SIGNIFICANT Bobcat RANGER & RZR ATV ORV Business Breakdown RANGER & RZR #1 PRIORITY; SPORTSMAN REMAINS SIGNIFICANT #1 business for revenue and profits Large business with significant profits, growing again Incremental Growth Opportun
Slide 45: ORV Customer Profiles
ORV Customer Profiles RANGER = MOSTLY WORK; RZR = MOSTLY PLAY; SPORTSMAN = BOTH $85k $77k $75k 92%/8% 92%/8% 89%/11% 28% 23% 36% Farming/Ranching Rec/Trail Rec/Trail Property Dunes Farm Hunt Desert Hunt Rec/Trail Hunt Property ORV Customer Profiles RANGER = MOSTLY WORK; RZR = MOSTLY PLAY; SPORTSMAN
Slide 46: ORV Industry Trends
ORV Industry Trends Expect Overall ORV Industry Up Modestly in 2012 ATV Industry Trends 5 Year CAGR = -22% Fcst moderate decline in 2012 2012 Actual = Single Digit Growth SxS Industry Trends 5 Year CAGR +23% Continued double digit growth in 2012 Industry Growth on Plan Growth Rates Expect Overall OR
Slide 47: Secure a Competitive Advantage
Secure a Competitive Advantage Continued MVP Improvements Secure a Competitive Advantage Continued MVP Improvements Shipping to retail demand (ATV & SxS) Maintained Flat SxS dealer inventory level through spring sale period (March thru May 2012) Year-over-year inventory up due to new models Deliveri
Slide 48: ORV Market Share Results
TWO TIMES SHARE OF NEXT COMPETITOR ORV Market Share Results Best Overall Share Performance In Polaris History Upper 20’s Share In ATV; SxS Estimated 40 Share Overall ORV Share Estimated at upper 30’s TWO TIMES SHARE OF NEXT COMPETITOR ORV Market Share Results
Slide 49: ORV Product Advantage
ORV Product Advantage Breadth & Depth of Product Offering ORV Product Advantage Breadth & Depth of Product Offering #1 Market Share Industry Leading Products Innovation Speed to Market Customer Focus
Slide 50: Winning the Competitive Battle
Winning the Competitive Battle Innovation Drives Share Gains Winning the Competitive Battle Innovation Drives Share Gains Understanding customer needs, drives continued product improvements Constantly improve Quality & development of advance technology features Create new market segments: SxS trail
Slide 51: ORV Overall Results
ORV Overall Results ORV Overall Results RANGER – Consistent incremental growth RZR – Consistent incremental high growth 2009-2012 Sportsman – Consistent share growth Military & Bobcat – Adjacent high growth
Slide 52: Aggressive Plan to Drive Growth
Aggressive Plan to Drive Growth ORV Growth Plan Aggressive Plan to Drive Growth ORV Growth Plan Leverage New Products to Drive Growth Maintain consistent innovation Incremental Breakthrough Profitable ATV market share growth Expanded international focus Integrated MVP Retail #1 Advertising, Expanded
Slide 53: Off-Road Vehicles 2012 Results
Off-Road Vehicles OFF-ROAD 2012 RESULTS Growth In All Segments OFF-ROAD 2012 RESULTS Growth In All Segments
Slide 54: RZR Positioning and Customer Solutions
POSITIONING + CUSTOMER SOLUTIONS MARKET / BRAND POSITION WHY WE CONTINUE TO WIN! RZR Family Branding / Positioning Industry Leading Market Segmentation Driving Growth Off-Road Vehicles POSITIONING + CUSTOMER SOLUTIONS POSITIONING + CUSTOMER SOLUTIONS MARKET / BRAND POSITION MARKET / BRAND POSITION R
Slide 55: RZR Continues to Win
Off-Road Vehicles RZR Continues to Win RZR Family Off-Road Vehicles RZR Continues to Win RZR Family
Slide 56: RZR Continues to Lead
RZR Continues to Lead RZR Continues to Lead Winning On The Podium GNCC Racing WORCS BEST in the DESERT Winning With The Press Dirt Wheels “For our money, the Polaris RZR XP 900 is still the most fun to drive, overall best-handling and quickest sport UTV you can buy.” UTV Action “The RZR XP 4 900 is
Slide 57: RZR XP Competitive Analysis
RZR XP Competitive Analysis RZR 900 XP Dominates the Competition RZR XP Competitive Analysis RZR XP vs. Wildcat Acceleration Comparison Competitive Feature Comparison RZR 900 XP Dominates the Competition
Slide 58: New MY'13 RZR Products
Continue to Raise the Bar - Industry leading New MY'13 RZR Products Continue to Raise the Bar - Industry leading New MY'13 RZR Products RZR Trail 570 LE Electronic Power Steering Tighter turning with unlocking rear differential Secure dry storage with built in Lock N Ride storage case 800’s Improved
Slide 59: RZR Retail Results
INCREMENTAL NEW PLAYS WORKING RZR Retail Results 2011 2012 Projection INCREMENTAL NEW PLAYS WORKING Strong incremental RZR growth as new segments launched Clear leader in all recreation segment RZR (no RANGER ) is #2 in SxS market share (behind RANGER )
Slide 60: RANGER Family Branding / Positioning
New Segments & Dominant Products Driving Growth RANGER Family Branding / Positioning CUSTOMER SOLUTIONS MARKET/BRAND POSITION WHERE WE GROW! New Segments & Dominant Products Driving Growth RANGER Family Branding / Positioning HARDEST WORKING. Best-In-Class Power On-Demand True All- Wheel Drive Monst
Slide 61: MY'13 RANGER 800 Midsize
Big Bore Performance Midsize Chassis Value Price NEW! MY'13 RANGER 800 Midsize NEW! MY'13 RANGER 800 Midsize Proven Midsize Chassis Design 50+ Quality Improvements Proven Powerful 800 EFI Engine Strong Work Capability Great Recreational Performance Top Speed 55 MPH Price $10,499
Slide 62: New MY13 Ranger 900 XP
Whole New Class of SxS Utility Vehicles - Ranger Reinvented New MY13 Ranger 900 XP New MY13 Ranger 900 XP Completely Redesigned Chassis 500+ Improvements New 900 EFI Purpose Built Work Engine Improved Ride & handling Integrated PG&A Solutions Improved Comfort Adjustable Ergonomics Low Noise & Vibrat
Slide 63: Big Bore Utility Full Market Coverage
Big Bore Utility Full Market Coverage Big Bore Utility Full Market Coverage $10K $11K $12K $13K $14K $15K $16K NEW NEW Mid-Size RANGER RANGER XP 900
Slide 64: RANGER Retail Results
Strong Retail Results, Positioned Well for Growth ORV RANGER Retail Results All RANGER segments growing Share growth has been very strong RANGER (no RZR ) #1 in SxS by over 2X next closest competitor MY’12 RANGER product and marketing plan positioned well 2009-2012 2011 2012 Projection Strong Retail
Slide 65: Raise the Bar in ATV: Scrambler XP
RAISE THE BAR IN ATV Scrambler XP Big Bore Market Share Expansion Opportunity RAISE THE BAR IN ATV Scrambler XP Big Bore Market Share Expansion Opportunity 77 HP, 0 to 30 in 2.16 sec Limited to 80 MPH top speed Race-tuned exhaust Fully independent IRS Sport styling 75 lb rack capacity $9,499 Fox Sho
Slide 66: ORV ATV Market Share Results
ORV ATV Market Share Results Number 1 ATV N.A. Market Share YTD 2012 Significant share gains across Sportsman segments Sportsman leads in both “Value” and “Premium” segments Sportsman 500 H.O. and Sportsman 850 XP 2011 2012 Projection 2009-2012 Polaris Honda Yamaha ORV ATV Market Share Results Numbe
Slide 67: Bobcat Partnership
Continued Market Penetration, Future Growth on Plan Bobcat Partnership $300M Industry market opportunity - Kubota market leader Bobcat dealer retail – gaining momentum CY12 Revenue flat due to national account acquisition dealer consolidation Next level of growth - Bobcat co-developed products on sc
Slide 68: Military Business
Executing Our Plan Military Business Executing Our Plan Military Business 2012 Highlights SOF 1 st Strategy Paying Dividends Positioned For Customer Requirements In LTATV II Won 1 st SOCOM ATV Bid Delivering TACOM M800’s Leveraging for Int’l sales Growing Unmanned Vehicle orders, 100+% growth Introd
Slide 69: Military Plan
Positioned for Growth Military Plan Positioned for Growth Military Plan Leverage Best-in-Class MCOTS Platforms SOF 1 st Strategy: Offer family of Light Mobility Solutions (MV850, M RZR & VLV) Provide Utility and Tactical Vehicles to DOD and Int’l Customers New Products to Serve More Markets RANGER D
Slide 70: New Military Products
#1 Position in ULV Military Markets New Military Products #1 Position in ULV Military Markets New Military Products
Slide 71: ORV Future Strategy Summary
ATV SxS Military Bobcat STRONG GROWTH PLAN ORV Future Strategy Summary Significant SxS Growth Profitable ATV Growth Expand Margins Expanding Military Bobcat & Int’l Strong RANGER product plan Strong RZR product plan SxS market has upside Sportsman strong Still room to innovate Margin plan strong Rec
Slide 72: ORV Summary by Product Line
RANGER MILITARY & BOBCAT RZR SPORTSMAN INTERNATIONAL Positioned well for continued growth Adjacent market growth opportunity Strong product portfolio continued high growth Entry value to high performance multi-passenger Growing & continuing to win Expanding SxS sales, new market opportunities
Slide 73: Q&A ORV
Q&A Dave Longren, V.P. - ORV & ORV Engineering July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 74: Motorcycles
Motorcycles Steve Menneto, V.P. – Motorcycles July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 75: €> PeLaris:
€> PeLaris:
Slide 76: Victory Growing Share In Improving Market Conditions
Victory Growing Share In Improving Market Conditions 2012 N.A. 1400+cc Competitive Summary Victory Growing Share In Improving Market Conditions 2012 N.A. 1400+cc Competitive Summary Rank Manufacturer Strategy Share Trend Harley Aspiration Brand Most Complete Product Line-up Huge Installed Owner Base
Slide 77: Victory Strategy
Victory Strategy Victory Strategy Analyst July 2012 1. Strengthen Victory Brand 2. Frequent Product News 3. Retail Flow Management 4. International Sales Growth 5. Expand Global Distribution Presence
Slide 78: Strengthen Victory Brand
Consistent Brand Execution Strengthen Victory Brand Consistent Brand Execution Strengthen Victory Brand Partnerships: Playboy, Gunny, E-Street Bold Store Branding: New Sign V Beacon Victory Stakes Tattoo wall or rack/tables New Apparel: Core Range Seasonal Collection Analyst July 2012
Slide 79: MY'13 / CY'12 New Products
MY’13 / CY’12 New Products Victory Cruiser Updates & Attitude Baggers MY’13 / CY’12 New Products MY 12 Hard-Ball (Dec ‘11) MY13 Judge (Jan ’12) MY13 Boardwalk (Aug ‘12) MY13 Extreme Green XC (June ‘12) MY13 Ness Cross Country Tour (Aug ‘12)
Slide 80: Victory Boardwalk
VICTORY BOARDWALK H-D SOFTAIL DELUXE Victory Boardwalk Victory Boardwalk Analyst July 2012 106 ci / 6-spd 110 ft-lbs torque 103 ci / 6-spd 98.7 ft-lbs torque 25.9” Seat Height Beach Bars Removable Pass. Seat 25.9” Seat Height Standard Bars #1 Service Index #1 Maintenance Cost Index 9.5 Gal. Storage
Slide 81: Move to Pull Based Production System
Move to Pull Based Production System Lean Operations – Retail Flow Management Production Retail Move to Pull Based Production System Lean Operations – Retail Flow Management Misaligned Retail & Production Plans Planned Volume Why Change: Plan for future volume for Victory and Indian Align Production
Slide 82: Lean Operations – Retail Flow Management
Lean Operations – Retail Flow Management Transformed Every Process Safety Stock Planning SIOP Tracking and Planning Production Scheduling and Logistics Planning Material Flow Design Lean Operations – Retail Flow Management Transformed Every Process Daily Ordering Process Unique Dealer Profiles Super
Slide 83: Future State: Bike Delivery in 10 Business Days
Future State: Bike Delivery in 10 Business Days Complete Profiles Retail – Sell Thru Fill Profile Stockouts based on Retail Sell-Thru Lean Operations – Retail Flow Management in 30-45 Business Days Bike Delivery to Dealers Bike Delivery to Dealers in 18 Business Days 10 Days One Time Initial Fill of
Slide 84: Victory International Retail
International Retail +60% 2012 YTD Victory International UK UK UK UK UK Italy Italy Italy Aus/NZ Aus/NZ Aus/NZ Sweden Sweden Sweden Norway Norway Germany Germany Finland Finland Spain Spain France Other International Retail +60% 2012 YTD Victory International Analyst July 2012
Slide 85: Expand Victory Global Distribution
Growing N.A. & International Distribution Expand Victory Global Distribution N.A. N.A. N.A. N.A. N.A. N.A. Int'l Int'l Int'l Int'l Int'l Growing N.A. & International Distribution Expand Victory Global Distribution Analyst July 2012 Dealer Count YTD 2012: N.A. 430 Int’l. 130 Victory Motorcycles Deale
Slide 86: Indian Strategy
Indian Strategy Indian Strategy Analyst July 2012 1. Build a Premium Brand 2. Build Premium Product 3. Build a Premium Global Distribution Network 4. Build a World Class Team
Slide 87: Premium Brand
Premium Brand Premium Brand Indian Brand Video Analyst July 2012
Slide 88: Grass Roots Marketing
Grass Roots Marketing Premium Brand Grass Roots Marketing Premium Brand Indian Experience Truck: Showcase the heritage of Indian Motorcycles in a forward thinking and interactive way The 7 Pillars: Legendary Heritage Innovation Racing The Scout War Time Faithful Riders The Road Ahead Analyst July 20
Slide 89: MY'13 Great Bikes Made Better
MY ‘13 - Great Bikes Made Better Premium Product MY ‘13 - Great Bikes Made Better Premium Product Analyst July 2012 • NEW MY ‘13 Pearl White & Thunder Black two tone paint scheme • Chrome highway pegs • Chrome arrow style shift rod • Quick detach passenger backrest & luggage rack • 35 LE units / pro
Slide 90: Premium Dealer Recruitment
Premium Dealer Recruitment Premium Global Distribution Network Premium Dealer Recruitment Established “high potential” retail zones Systematic Site Selection Top MSA Focused Consistent Brand Image Investment levels and operational requirements Dealer Count Less than Victory Premium Global Distributi
Slide 91: Premium Dealer Environment
Premium Dealer Environment Premium Global Distribution Network Premium Dealer Environment Premium Global Distribution Network The brand is the story The heritage is the endorser The motorcycle is the proof point Premium Apparel/ Accessory presentation Celebrate the local riders Analyst July 2012
Slide 92: Q&A Motorcycles
Q&A Steve Menneto V.P. - Motorcycles July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 93: Parts, Garments & Accessories
Parts, Garments & Accessories Steve Eastman, V.P. – PG&A July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 94: PG&A Overview
PG&A Overview PG&A Overview Analyst July 2012 Service Parts, Accessories, & Apparel 50,000+ SKU’s, $408 Million in Sales in 2011 Highest Gross Margins COMPETITION: Aftermarket: i.e. Parts Unlimited, Tucker Rocky, Western Powersports, Motovan. Big Box Retail, Online Sellers Top Selling Commodities Ca
Slide 95: Consistent Revenue and Profit Growth
Consistent Revenue and Profit Growth PG&A Overview Consistent Revenue and Profit Growth PG&A Overview 9.2% CAGR 14+% CAGR 4-Year growth rate significantly outpacing historical trend Continuous improvement in Operating Profit All areas of the business are growing 2009 - 2012Est. Average Growth Rate A
Slide 96: Growth Objectives
Growth Objectives Expect Another Record Year Growth Objectives Analyst July 2012 Expect Another Record Year North America +8% International +15% Accessories +9% Parts +10% Apparel +4% ORV +15% Snow -26% On-Road +25% YTD Revenue Mix by Geography YTD Revenue Mix by Product YTD Revenue Mix by Business
Slide 97: MY'13 Product Innovation
MY’13 Product Innovation Industry-Leading Quality, Fit & Ease of Installation new accessories 140 new apparel items new accessories 141 new apparel items 196 new accessories 60 new apparel items MY’13 Product Innovation Analyst July 2012 Industry-Leading Quality, Fit & Ease of Installation ORV Motor
Slide 98: New Pro Fit Cab System
New Pro Fit Cab System The New Standard in Side x Side Cab Systems New Pro Fit Cab System Analyst July 2012 The New Standard in Side x Side Cab Systems PRO-FIT CAB SYSTEMS OBJECTIVES Deliver what’s most important to the consumer Integrated styling, sealing & mounting Eliminate framework for increase
Slide 99: PG&A Video: RANGER Pro Fit Cab
PG&A Video: RANGER Pro Fit Cab
Slide 100: €> PeLaris:
€> PeLaris:
Slide 101: Increased Focus on Online and Mobile Shopping Tools
Increased Focus on Online and Mobile Shopping Tools Marketing & Merchandising Increased Focus on Online and Mobile Shopping Tools Marketing & Merchandising Analyst July 2012 79% of consumers spend half of their product research time online (up 29pp from 2010) 58% of shoppers begin their product rese
Slide 102: Merchandising & Salesperson Impact
Merchandising & Salesperson Impact – Win in the Dealership Marketing & Merchandising After Before Merchandising & Salesperson Impact – Win in the Dealership Marketing & Merchandising Analyst July 2012 Drive increased $/Unit by providing the dealer network with education and resources to build and su
Slide 103: PG&A Operations
PG&A Operations Efficient, Timely, and Accurate Supply Chain PG&A Operations Analyst July 2012 Efficient, Timely, and Accurate Supply Chain Distribution Vermillion SD 380,000 sq. feet; expanded in ‘08 State of the art facility Ship to 130 countries 3000 dealers worldwide 7 subsidiaries, 40 distribut
Slide 104: New Growth Initiatives
New Growth Initiatives Investing in Sustainable, Profitable Growth New Growth Initiatives Analyst July 2012 Investing in Sustainable, Profitable Growth Near Term Longer Term Elevated focus on product innovation, & “signature” products Increased commitment to apparel and general merchandise quality,
Slide 105: Q&A PG&A
Q&A Steve Eastman V.P. – Parts, Garments & Accessories July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 106: Strategy to Becoming a Global Leader in Small Electric/Hybrid Vehicles
Strategy to becoming a global leader in small electric/hybrid vehicle industry Scott Swenson, V.P. – Small Vehicles July 31, 2012 POLARIS INDUSTRIES INC. | ANALYSTS MEETING
Slide 107: Global Small Vehicle Market
Product Market Segments Light Duty Hauler Golf People Mover Industrial Product Market Segments Market Size ~$4 Billion Fragmented Global View 80% market in NA Europe & China grow faster than NA Brazil & India emerging Growth Drivers Demand for clean low cost vehicles: Rising fuel prices Gov’t regula
Slide 108: PM & LDH Competitive Vehicles
PM & LDH Competitive Vehicles PM & LDH Competitive Vehicles Light Duty Hauler (LDH) People Mover (PM)
Slide 109: Competitive Landscape
Competitive Landscape Competitive Landscape Attractive dealer and distributor network Primary business/product focus = price sensitive fleet golf buyer Big 3 control >90% of fleet golf market Limited product innovation European focused LDH vehicles; limited global distribution Leverage automotive br
Slide 110: Small Vehicle Strategy: The Next Big Polaris Business
Small Vehicle Strategy The Next “Big” Polaris Business Polaris will become the undisputed global leader in small electric/hybrid vehicles through strategic M&A and disciplined execution. We will make the highest quality, lowest cost sustainable vehicles for light utility and transport supporting con
Slide 111: Small Vehicle Strategy
Small Vehicle Strategy Drive Profitable Growth in Large, Fragmented Small Vehicle Industry Polaris Small Vehicles How Does Polaris Win? 1. Application Engineering Reliability/Durability Ride & Handling Chassis Integration Speed to Market 2. Price/Value Consumer & Commercial Cost of Ownership 3. Tech
Slide 112: Global Electric Motorcars (GEM)
Global Electric Motorcars (GEM) GEM Overview 2012 Focus Strategic Priorities Global Electric Motorcars (GEM) Market leader in multi-purpose low-speed neighborhood electric vehicles 47K vehicles sold since 1998 Build-to-order business model 6 base models; >1K variations 2012 Sales: ~$30 million NA de
Slide 113: Goupil Industrie SA
Goupil Industrie SA Goupil Overview Competitive Advantages Goupil Products European ULEV Industry Goupil Industrie SA European Market leader in ultra-light commercial electric & hybrid utility vehicles Only manufacturer with pure electric vehicle 2012 Sales: ~$30 million primarily in France 40 deale
Slide 114: Retail Financial Services
Retail Financial Services Solid Volume and Income Growth Retail Financial Services Partner Status: (No Credit / Funding Risk) Sheffield (Installment): Expires Feb 2016. ORV focus. Profit sharing opportunity. Capital One (Revolving): Expires October 2013. Smooth transition from HSBC in Q2 ‘12 GE (Ins
Slide 115: Wholesale Credit to Dealers
Wholesale Credit to Dealers Competitive Advantage for Polaris and Dealers Wholesale Credit to Dealers Partnership with GE for Dealer Financing in U.S. – Polaris Acceptance Established in 1996. Stable relationship. Shared 50/50 equity, income and risk Receivables funded by GE debt Expires in 2017, pu
Slide 116: Summary
Summary Summary Small Vehicles $4 billion fragmented market growing high single digits Great fit for Polaris; potential to be the next “big” business GEM and Goupil off to solid starts; meeting expectations Focus on product and distribution to drive growth Financial Services External environment sta
Slide 117: Q&A Small Vehicles
Q&A Scott Swenson, V.P. – Small Vehicles July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 118: Engineering / R&D / Powertrain
Engineering / R&D / Powertrain Steve Kemp, Chief Technical Officer July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 119: Driving Growth
Driving Growth Developing Compelling New Products 1. Develop the Most Exciting Products in the Industry Deliver the right product at the right time Open new and adjacent markets globally 2. Create Loyal Customers that Promote the Product & Brand Industry leading Net Promoter Scores Maximize customer
Slide 120: The Right Product
The Right Product +50 Percent Reduction In Time to Market Increased Market Share All Businesses Well Thought-out Product Plans “Hub and Spoke” Architecture Plans Domestic & International Variants Development Processes Tailorable to Unique Small Focused Product Teams Subject Matter Experts as Needed
Slide 121: New Growth Market/Customer Opportunities
New Growth Market/Customer Opportunities Disruptive Products Idea Screening Product Planning Investment Allocation Company-Wide Product Planning 5,000+ Employees Generating Ideas Business Strategy Consumer Research, Net Promoter Score Skunk Work Teams Individual Contributors Supplier Ideas, New tech
Slide 122: Sustainable Advantages
These in Combination are Our Winning Advantages Sustainable Advantages Innovative Culture People and processes that drive innovation and a passion for performance Applications Engineering Capability to develop cost effective unique solutions for Global Customers Leveraging new and existing technolog
Slide 123: Engineering Speed to Market
Engineering Speed to Market Right Product at the Right Time Development Cycle Time Engineering Speed to Market World Class Development Staff & Process Co-located integrated product teams Internally Developed Design Tools & Models Analysis directly to production tooling Integrated tooling & part cost
Slide 124: Quality Operations as a Competitive Advantage
Quality Operations as a Competitive Advantage Quality Focus Driving Nice Progress 79% 81% 90% 90% 92% NPS Score Industry Rank Trend SxS #1 ATV #2 Snow #2 Victory #1 Quality Net Promoter Scores Warranty as a % of Sales % of Vehicles with No Claims Goal is 95% Forecast Hub and Spoke Product Planning P
Slide 125: Product Development Investments
Product Development Investments Reducing Development Cost Percentages Product Development Investments Investments in Product Development Growing Strongly 53% increase in Total Expense, Tooling, and Capital from 2006 Reduced % revenue due to strong revenue growth & lean engineering Lower Warranty % e
Slide 126: Product Development Investments Strategy Pyramid
Product Development Investments Allocating Resources to Support Product Strategies Product Development Investments “Pyramid” of Product Development Strategy New Product + New Customer New Product + Current Customer Current Product + Current Customer
Slide 127: Powertrain
Powertrain Powertrain Moving to a Competitive Advantage Consumer Warranty Claims Cost $’s Per Horsepower Heart of the vehicle Control Key Intellectual Property Common Architecture Designs Design for Manufacturability & Quality Polaris designs, develops & manufactures about 60% of its own engines tod
Slide 128: Summary
Summary Driving Innovation for Global Customers Sales And Market Share Gains Fed by our Passionate Staff, Partners, and Suppliers Methodical Innovation Process Relentless Focus On Operational Excellence Speed to Market Reduced Total Costs Continued Quality Improvement Powertrains and Drivelines Feed
Slide 129: Q&A Engineering
Q&A Steve Kemp Chief Technical Officer July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 130: Operational Excellence
Operational Excellence A Pathway to World Class Performance Suresh Krishna V.P. – Global Operations & Integration July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST MEETING
Slide 131: Agenda
Agenda Agenda Analyst - 1. N.A. Realignment 2. Plant Capacity 3. Manufacturing Excellence 4. Acquisition Integration: GEM / Indian / GOUPIL 5. LEAN Deployment: Polaris Way 6. Supply Chain Execution
Slide 132: N.A. Realignment Update
N.A. Realignment Update July 2012 Solid Start – More Work Ahead (in millions) N.A. Realignment Update July 2012 Analyst - Key Metrics Financials Solid Start – More Work Ahead Security: Continued investments is securing people, product and property Expansion: Adding 3 assembly and weld cells line to
Slide 133: Polaris Way: Creating Capacity with Minimal Capital
Polaris Way: Creating Capacity with Minimal Capital Capacity Tighter, but Manageable Polaris Way: Creating Capacity with Minimal Capital ORV Capacity Impact Over Next 2-4 Years From Accelerating “Polaris Way” Implementation Analyst - ORV Sales Expectations vs. Capacity
Slide 134: Global Growth Continues
Global Growth Continues Global Growth Continues Assumptions Strategies Analyst - Significant organic and acquired growth expected 2012-2016 EMEA growth justifies local production Brazil/S.A. supplied from Monterrey Asia Acquisition/ JV Partnership for SKD of current products and manufacture Local ma
Slide 135: Manufacturing Productivity
6 July 14, 2010 Manufacturing Productivity LEAN Implementation Providing Strong Results Manufacturing Productivity Analyst - Manufacturing Finished Goods Rework % Wholegoods Revenue per Employee LEAN Implementation Providing Strong Results
Slide 136: Proven Ingredients – New Recipe for Success
Proven Ingredients – New Recipe for Success PDP NA Realignment LEAN: Polaris Way Integrating Acquisitions: Polaris Acquisition Framework (PAF) Analyst - Proven Ingredients – New Recipe for Success Stage / Gate Process for Integrated Product Development & Validation. This process enables: Speed Flexi
Slide 137: GEM & Indian Integration Update
8 July 14, 2010 GEM & Indian Integration Update Integration Processes Maturing to Deliver Key Milestones GEM & Indian Integration Update Analyst - Integration Processes Maturing to Deliver Key Milestones Indian Integration – Moved Production to Spirit Lake, IA in 90 days GEM Integration – Moved Prod
Slide 138: LEAN Development: Polaris Way
LEAN Development: Polaris Way Driving Significant, Measurable Improvements to our Bottom Line! • Eliminate Waste • Improve Quality • Improve Lead-time/Delivery • Reduce Cost • Capacity LEAN Development: Polaris Way Analyst - Driving Significant, Measurable Improvements to our Bottom Line!
Slide 139: Victory Transformation Followed by ORV Transformation
Victory Transformation Followed by ORV Transformation Retail Velocity Improvement Enables Lead-time Reduction and Savings Unplanned Product Holds Supply Chain Alignment Retail Flow Management Dealer Inventory Victory Transformation Followed by ORV Transformation Analyst - Retail Velocity Improvement
Slide 140: Supply Chain Execution
12 July 14, 2010 Supply Chain Execution Deep Supplier Relationships Driving Cost & Quality Improvements Supply Chain Execution Analyst - Supplier Quality - PPM YOY % Material Cost Reduction Deep Supplier Relationships Driving Cost & Quality Improvements
Slide 141: Commodities: Proactive Management
Commodities: Proactive Management Active Commodity Management Delivers Significant Benefits These Commodities represent ~ 20% to 25% of GOGS, Combined Analyst - Commodities: Proactive Management Cost Mitigation Strategies Active Commodity Management Delivers Significant Benefits Financial Hedges For
Slide 142: Cost Reductions: Long Term Approach
Cost Reductions: Long Term Approach Next Level Cost Down Activities Kicked-off New Opportunities Cost Reductions: Long Term Approach LCC Sourcing Long-term Agreements/ Negotiations Commodity Agreement/Hedging/ Forward Buys Insource/Outsource Engineering Design/Value Engineering Increase Common parts
Slide 143: Factory Inventory Days Supply
Factory Inventory Days Supply Improved for Wholegoods Factory Inventory Days Supply Improved for Wholegoods Continued YOY improvement in Wholdgoods days supply Factory Inventory $ up 25% YTD Goupil and GEM acquisitions increased factory inventory YOY Increase in some inventory to meet higher demand
Slide 144: Operations is Competitive Advantage
Operations is Competitive Advantage 3-5 Year Objective: 3 Year Results: Excellent Progress, Significant Potential Operations is Competitive Advantage Lean Enterprise for world class quality, cost, lead times Manufacturing realignment: excellent execution 20% Volume decline / 70% volume increase 3 Ac
Slide 145: Q&A Global Operations
Q&A Suresh Krishna, V.P. – Global Operations & Integration July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 146: Asia Pacific, Latin America
Asia Pacific, Latin America Mike Dougherty, V.P. - APLA July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING Exhibit 99.9
Slide 147: Global Footprint 2016
Global Footprint 2016 Manufacturing Joint Venture/MFG Subsidiaries Polaris APLA Locations Polaris APLA Locations
Slide 148: What's Different From a Year Ago?
What’s Different From 1 Year Ago? Ahead of Curve – More Realistic and Optimistic Plans What’s Different From 1 Year Ago? Revenue Growth Projections Ahead of Curve – More Realistic and Optimistic Plans Growth momentum continues @ 20%+ / year; Aus remains strong ORV Markets growing, creating recreatio
Slide 149: Polaris APLA Strategy
Polaris APLA Strategy $1B in Revenue (Organic + Partners) Polaris APLA Strategy APLA will become a $1B business by 2018. We will build the markets for our core products, form strategic partnerships and develop breakthrough, low cost, innovative vehicles for customers worldwide. Our winning advantage
Slide 150: APLA Strategic Summary 2013-17
$1B Revenue, Global Footprint, New Markets, New Products APLA Strategic Summary 2013-17 Overall Key Initiatives Grow to $1B Organic + Joint Ventures #1 Triple ORV business and grow to #1 share #2 Aggressively grow premium Motorcycle to #2 share #3 Develop Strategic partnerships and product platforms
Slide 151: Key Market & Customer Trends / Outlook
Key Market & Customer Trends / Outlook Product Line / Market Global Industry Assumptions Polaris Share Assumptions Key Market & Customer Trends / Outlook ORV BIC recreation market growing at >30% BIC commercial SxS market evolving and growing rapidly AUS mkt = 20,000 units; mature Number one share i
Slide 152: APLA 2012 Plan
APLA 2012 Plan – Stay on Offense! Building Global Foundation in High Growth Region Asia Pac Asia Pac China BIC Revenue APLA 2012 Plan – Stay on Offense! APLA Revenue Building Global Foundation in High Growth Region A ustralia/NZ wins: Continue to Gain share. New office location . Motorcycle Retail 2
Slide 153: APLA Results First Half
APLA Results First Half Asia Pacific Driving Strong Top Line Growth BIC Sales Product Sales APLA Results First Half APLA – Sales ($ Millions) Regional Overview Asia Pacific Driving Strong Top Line Growth Total Growth: 20%+ YOY. ORV + Victory driving growth. Asia Pacific : Australia/NZ very strong. C
Slide 154: Australia / NZ 1H Results
Australia / NZ 1H Results Winning in Largest APLA Market Polaris Yamaha ORV Share (Australia) Australia / NZ 1H Results Aus/NZ Rev (US$) Winning in Largest APLA Market Overview Revenue by Product 34+% Continued Strong Revenue Growth: 2011 +40%, 2012 YTD +34% ORV markets growing & Polaris gaining sha
Slide 155: Polaris China First Half Results
Polaris China First Half Results Growth Momentum Continues in China ORV Dealer Coverage Polaris China First Half Results China Rev (US$) Growth Momentum Continues in China Overview Revenue by Product 94+% ORV business continues to grow. Creating recreational market. Entering commercial segment. Orde
Slide 156: New Victory Store in Beijing
New Victory Store in Beijing Entering Worlds Largest Motorcycle Market New Victory Store in Beijing
Slide 157: Polaris India First Half Results
Polaris India First Half Results Successful Start in Critical Long Term Growth Market ORV Dealer Coverage Polaris India First Half Results India Rev (US$) Successful Start in Critical Long Term Growth Market Overview Revenue by Product ORV Launch successful. Creating recreational market. Entering co
Slide 158: Auto Expo January 2012 – New Delhi
Auto Expo January 2012 – New Delhi Auto Expo January 2012 – New Delhi
Slide 159: Eicher Polaris Joint Venture
Eicher Polaris Joint Venture Great Partner in Long Term Growth Market Eicher Polaris Joint Venture India Market Position Strategy Polaris Overview Eicher Overview Great Partner in Long Term Growth Market 50 / 50 JV $50M Investment over 3 yrs. New Product Development New Operational Footprint New Dis
Slide 160: Polaris Brazil 1H Results
Polaris Brazil 1H Results Good Start to Creating ORV Business in Brazil st Dealer - GS Motos Polaris Brazil 1H Results Brazil Rev (US$) Good Start to Creating ORV Business in Brazil Overview Revenue by Product 100%+ Operational as of March 2012. Strong team in place. Focus on building premium dealer
Slide 161: Polaris Brazil – 1H Highlights
Polaris Brazil – 1H Highlights New Dealer Layout - Forteleza New Dealer Forteleza SxS Racing Polaris Brazil – 1H Highlights Grand Opening 1 st Dealer Agrishow 2012
Slide 162: Polaris APLA 2012 Deliverables
Polaris APLA 2012 Deliverables Build Business Foundation in High Growth Region Polaris APLA 2012 Deliverables Build Business Foundation in High Growth Region Continue Growth Momentum @ 20%+ Continue to Win in Australia. Gain Share with ORV & Double BIC Sales Develop ORV Rec Market & Enter Commercial
Slide 163: Q&A APLA
Q&A Mike Dougherty V.P. – Asia Pacific, Latin America July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 164: Europe, Middle East, Africa
Europe, Middle East, Africa Matt Homan, V.P. - EMEA July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING
Slide 165: Agenda
Agenda EMEA Business Overview and Competitive Landscape EMEA 2012 Objectives, Results and Outlook EMEA New Product Focus EMEA Future
Slide 166: Polaris EMEA Market Defined
Polaris EMEA Market Defined EMEA = 2 Distinct Markets: Western Europe & Growth Markets Western Europe Growth Markets Definition France, Scandinavia, Germany, Italy, etc. Russia, Middle East, Africa, Eastern, Europe 2012 % EMEA 70% 30% 2007 % EMEA 80% 20% Distribution Subsidiary / Distributor 100% Di
Slide 167: Polaris EMEA Customer Usage
Polaris EMEA Customer Usage Market Usage Balanced Between Utility and Recreation Market Usage Balanced Between Utility and Recreation Middle East: Primarily recreation ORV market Russia: Strong recreation ORV market; Strong utility snow market Africa: Combination of utility and recreation ORV market
Slide 168: Business Shifting to SxS – Snow/Motorcycles Gaining
Business Shifting to SxS – Snow/Motorcycles Gaining Polaris EMEA Business Defined EMEA Breakdown ATV 53% of Business Down from 70% in 2008 SxS 23% of Business Up from 12% in 2008 Snow 23% of Business Up from 17% in 2008 Motorcycles 4% of Business Up from 1% in 2008 Polaris EMEA Sales by Segment 2008
Slide 169: Polaris Growth Markets Overview
Excellent Growth Markets Performance – Growth Prospects Strong Polaris Growth Markets Overview Today Opportunity Russia Big utility snow market Strong recreation market Excellent growth Polaris strong ORV Polaris opportunity in snow Expand into utility Snow market share Value products Motorcycles Mi
Slide 170: Western Europe Industry Trends
Markets Improved 2009 to 2011 – Weak in 2012 Western Europe Industry Trends Since YTD ORV +8% -12% Snowmobiles* +8% +9% Motorcycles** -2% -9% * Snow STD 7/11-6/12 **Motorcycles heavy cruisers/touring only Solid Market Performance 2009 – Weak Markets 2012 – Euro Crisis Polaris Outperforming in ORV/Mo
Slide 171: EMEA Competitive Overview
ORV #1; Positioned Well in Snow for MY’13; Victory Momentum EMEA Competitive Overview (W. Europe) ORV Share Motorcycle Share Snowmobile Share Polaris #1 and growing Asian players strong Market weak 2012 BRP #1 and strong Polaris #2 – lost share Victory strong growth BMW strong growth HD #1 – Down in
Slide 172: Polaris EMEA 1H Objectives / Results
Solid 1H in Face of Growing Economic Uncertainty Polaris EMEA 1H Objectives / Results Solid 1H in Face of Growing Economic Uncertainty Polaris EMEA 1H Objectives / Results 2012 1H Objective 1H 2012 Results Deliver Revenue Growth in Difficult Economy Slightly Below Plan (YOY currency -4% impact to sa
Slide 173: Polaris EMEA 2012 Outlook
Expect to Drive Growth and Gain Share in 2012 Polaris EMEA 2012 Outlook Note: 2012 Outlook Includes Goupil 1H sales results solid Q2 saw W. Europe markets slow Snow, Motorcycles strong 2H – ORV Gain Share Objective Outlook Comments Revenue Approx. $350M Expect nearly 10% growth vs. 2011 economic hea
Slide 174: EMEA Goupil Overview
Goupil – Green Work Solution for European Cities (and Beyond) EMEA Goupil Overview Goupil – Green Work Solution for European Cities (and Beyond) EMEA Goupil Overview Leader in Electric Commercial Utility Vehicles Headquartered and manufactured in SW France 100 Employees 65% France/35% Export G3 – Ur
Slide 175: EMEA Goupil Results
On-Track vs. Goals – Overcoming Economic Headwinds EMEA Goupil Results On-Track vs. Goals – Overcoming Economic Headwinds EMEA Goupil Results 2012 Objective 1H Results Deliver Growth in Difficult Economy 20%+ 1H Growth Drive 5% Cost Out In Year 1 On Track Deliver 10%+ Operational Efficiency Ahead of
Slide 176: EMEA 2013 New Product Highlights
Strong MY13 News – Will Help Drive Growth In EMEA EMEA 2013 New Product Highlights New Product Highlights MY 2013 ORV Victory Opportunities Across EMEA “European” Models
Slide 177: Scrambler 850
Scrambler 850 – Incremental Opportunity Europe Has Been Waiting For NEW! Scrambler 850 Scrambler 850 – Incremental Opportunity Europe Has Been Waiting For Pent Up European Demand Very low share in segment = Incremental opportunity High showroom appeal High performance NEW! Scrambler 850
Slide 178: New RANGER XP and RANGER 800
Building on RANGER Momentum – Premium and Value NEW! RANGER XP and RANGER 800 Building on RANGER Momentum – Premium and Value NEW! RANGER XP and RANGER 800 Power! 60HP ETC – Emissions/Homologation Better ride and ergos Help build RANGER Center strategy Mid-Size Strong in EMEA More power / great valu
Slide 179: RZR XP4 International
RZR XP4 – The Ultimate High Performance SxS in EMEA NEW! RZR XP4 International Ultimate performance SxS International = E-marked tires, mirrors, lighted license, S. Europe, Growth Markets open differential, etc.
Slide 180: Victory Judge and Boardwalk
2 New Models With European Feel – Continue Victory Momentum NEW! Victory Judge and Boardwalk Modern Cruiser “European” Feel Positive with press / consumers Good start in EMEA in Spring Classic Cruiser Good European segment Style and comfort high Broadens line in Europe
Slide 181: Strong Snowmobile Momentum for MY'13
Strong Snowmobile Momentum for MY’13 NEW! 2013 Snowmobiles The legend is back Strong reception in Europe Strong Incremental orders Big driver of strong MY’13 order bank Mountain and extreme leader Strong reception across RMK line Strong incremental orders vs. MY’12 NEW! Indy 600 NEW! PRO RMK
Slide 182: EMEA Vision 2018
EMEA Vision 2018 $1B EMEA Business in 2018 We will build our existing EMEA powersports business with product & distribution innovation, we will transform EMEA operations to enable higher sales/profits/tax potential, and we will grow EMEA rapidly by diversifying to reach new segments/customers/market
Slide 183: EMEA Summary
EMEA – Winning Competitive Battle Today and In Future EMEA Summary EMEA – Winning Competitive Battle Today and In Future EMEA 2012 1H Solid 1H results in slowing markets EMEA 2012 Full Year Expect to grow near double digits EMEA Future Significant opportunities for improvement exist EMEA Summary
Slide 184: Q&A EMEA
Q&A Matt Homan V.P. – Europe, Middle East, Africa July 31, 2012 POLARIS INDUSTRIES INC. | ANALYST & INVESTOR MEETING