Polaris Inc. · NYSE:PII

Polaris — Polaris Industries — Raymond James Institutional Investors Conference 2003

23 slides from Polaris's conference presentation, Mar 4, 2003

  1. Slide 1: Raymond James Institutional Investors Conference March 4, 2003

    Raymond James Institutional Investors Conference March 4, 2003

  2. Slide 2: Polaris at a glance

    Polaris at a glance: Founded in 1954 Manufacturer of a diversified mix of high-quality, high-performance motorized products for recreational and utility use Manufacturing and distribution facilities located in Minnesota, Wisconsin, Iowa and South Dakota Highly productive non-union workforce - 3,500

  3. Slide 3: Products (% of 2002 Sales) and Strengths/Opportunities

    Products (% of 2002 Sales) Strengths/Opportunities Strong Business Foundation Strong Business Foundation $938M business Growth opportunities going forward Maintain leadership position Generate cash Minimum investment Upside only $300-500MM long-term opportunity Superior product features Highest marg

  4. Slide 4: A Consistent Track Record... Sales 1992-2002

    1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Forecast 371 512 805 1079 1157 1009 1153 1296 1393 1487.6 1521.3 1521.3 60.8 Ten Year CAGR: 15.0% A Consistent Track Record... Sales 1992-2002 3-5% range

  5. Slide 5: Earnings Per Share 1992-2002 (diluted)

    1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Forecast 0.91 1.21 1.98 2.19 2.24 2.45 2.72 3.07 3.5 3.88 4.39 4.39 0.44 Ten Year CAGR: 17% Earnings Per Share 1992-2002 (diluted) $ 4.70 to $4.85 7-10% Increase 19 consecutive quarters of increased sales and earnings 21 consecutive years o

  6. Slide 6: Cash Flow

    Ten Year CAGR: 14% Cash Flow* 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 46 59 87 89 95 97 107 115 127 147 168 (Dollars in Millions) *Before Changes in Current Operating Items and Deferred Taxes

  7. Slide 7: Return on Shareholders Equity Significantly Above Industry Average

    Return on Shareholders Equity Significantly Above Industry Average 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 0.31 0.41 0.43 0.42 0.45 0.4 0.44 0.47 0.44 0.41 0.4

  8. Slide 8: Debt to Total Capital Ratio: Ample Credit Capacity

    Debt to Total Capital Ratio Ample Credit Capacity 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 0 0 0 0.25 0.18 0.13 0.12 0.19 0.19 0.07 0.06

  9. Slide 9: Dividends (per share)

    Dividends (per share) 1996 1997 1998 1999 2000 2001 2002 2003 (estimate) 0.6 0.64 0.72 0.8 0.88 1 1.12 1.24

  10. Slide 10: Share Repurchases

    1996 1997 1998 1999 2000 2001 2002 East 0.5 1.5 1.1 1.5 1.2 1.1 1.2 Cumulatively to date have repurchased 8.1 million of 9.5 million authorized for a total of $309 million. Share Repurchases 1996 1997 1998 1999 2000 2001 2002 East 14 40 38 52 40 49 76 In Millions In Millions In dollars Shares repurc

  11. Slide 11: The Past Five Years have been Good... The Next Five Years Could be Even Better

    The Past Five Years have been Good... The Next Five Years Could be Even Better 5 Year Cumulative Total Return Polaris +114% Russell 2000 -60% 1998 1999 2000 2001 2002 Russell 2000 Index -0.02 0.21 -0.03 0.03 -0.2 Polaris 0.31 -0.05 0.12 0.48 0.03

  12. Slide 12: Why Polaris? - Investment Appeals

    Why Polaris? - Investment Appeals Superior financial track record 21 consecutive years of earnings per share growth 19 consecutive quarters of increasing sales and earnings Consistent generator of cash flow Strong balance sheet - debt to equity at 6% at year end 2002 High return on equity averaging

  13. Slide 13: Worldwide ATV Industry Growth

    1998 1999 2000 2001 2002 520 650 775 861 939 Worldwide ATV Industry Growth ATVs Year 2002: 7% growth Polaris ATV Sales 1998 1999 2000 2001 2002 641 734 827 827 938 In Millions 2002 Highlights Wholesale sales up 13% due to continued growth of ATV industry (up 7 percent), new products introduced inclu

  14. Slide 14: Victory Motorcycles

    1998 1999 2000 2001 2002 East 11 40 18 19 34 1998 1999 2000 2001 2002 Cruisers 152 184 220 259 308 Touring 51.6 65.2 80.2 90 107 All Motorcycles 274 340 420 432 514 Victory Motorcycles Motorcycle Industry Growth Year 2002 growth for cruisers and touring was 13% 2002 Highlights Retail sales up nearly

  15. Slide 15: Snowmobiles

    Snowmobiles 1998 1999 2000 2001 2002 255.9 233 213 213 206 Worldwide Snowmobile Industry Growth Season-end March 31 2002 in Review Wholesale sales down 21%. Dealers have taken a more conservative ordering approach in response to last season's unusually warm winter. 800 RMK Vertical Escape named "200

  16. Slide 16: Personal Watercraft (PWC)

    1998 1999 2000 2001 2002 East 47 52 66 60 53 Personal Watercraft (PWC) 1992 1993 1994 1995 1996 1998 1999 2000 2001 2002 117 131 164.5 238.5 225 160 134 120 102 99 Worldwide PWC Industry Growth Legislative and regulatory concerns Polaris PWC Sales In Millions 2002 Highlights Polaris' retail sales up

  17. Slide 17: Parts, Garments and Accessories (PG&A)

    2002 Highlights Wholesale sales down 3% YTD due to snowmobile related PG&A shipments down from a lack of snow; all other components of PG&A showed growth over the prior year with ATV related PG&A showing double digit growth. Upgrading service and product quality across the line Highest margin busine

  18. Slide 18: Gross Margin Improvements are Sustainable

    Gross Margin Percentage Gross Margin Improvements are Sustainable ? Lowering Overall Costs Product Cost Reduction Efforts Initiatives taken to improve gross margins include: Roseau manufacturing facility redesign EDGE snowmobile chassis ATV model platform consolidation Victory product cost reduced I

  19. Slide 19: Polaris Financial Services

    Financial Services Millions Avg. Return 33% 28% 23% on Investment 2000 2001 2002 East 14.1 14.4 14.6 Wholesale Financing Extended Service Contracts Consumer & Dealer Insurance Polaris Financial Services Retail Financing

  20. Slide 20: Historically Not Sensitive to Negative Economic Changes

    1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Polaris Net Income 0 1 2 2.7 6.4 9.5 11.5 16.7 20.465 20.727 24.602 33.027 54.703 60.776 62.293 65.383 70.624 76.326 82.809 91.4 103.6 CCI 59.5 103.6 97 98.2 93.2 107.7 119.4 113 61.2 52.5 78.1 7

  21. Slide 21: The Roadmap

    The Roadmap Keep driving innovation - deliver a higher percentage of great new products New Polaris Development Process is key Maintain strong positions in ATVs and snowmobiles Continue to drive quality improvement as #1 internal objective Continue improvements in PWC and Victory business units Expa

  22. Slide 22: Polaris Industries Inc. Disclosure Statement

    1995 Private Securities Reform Act Polaris Industries Inc. Disclosure Statement Our presentation and responses to your questions may contain certain statements which may be considered forward looking for the purposes of the Private Securities Reform Act of 1995. We caution you that actual results co

  23. Slide 23: A Quality Investment for Every Climate

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