Harley-davidson, Inc. · NYSE:HOG
Harley-davidson — Investor Presentation (July 2023)
24 slides from Harley-davidson's investor presentation, Jul 14, 2023
Slide 1: Investor Discussion
INVESTOR DISCUSSION JULY 14, 2023 Our comments will include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted in our latest filings with the SEC. Harley-Davidson disclaims any obli
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The Company intends that certain matters discussed in this presentation and our associated comments are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-lo
Slide 3: Forward Looking Statements Continued
FORWARD LOOKING STATEMENTS CONTINUED (ee) manage its exposure to product liability claims and commercial or contractual disputes; (ff) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (gg) achieve anticipated resu
Slide 4: Mission, Vision, Ambition
Mission More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Vision Building our legend and leading through innovation, evolution and emotion. Ambition Harley-Davidson as the most desirable motorcycle & lifestyle brand in the world, building upon a 120-y
Slide 5: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 One of the most powerful and the most desirable motorcycle brands in the world 2 Evolving as a global lifestyle brand rooted in moto- culture, growing beyond motorcycles 3 Executing Hardwire Stage II – our strategic plan for profitable growth 4 Projecting strong financial
Slide 6: Hardwire Stage II Pillars
HARDWIRE STAGE II PILLARS 1 2 3 Profit Selective Lead in focus expansion & electric redefinition 4 5 6 Growth Integrated Inclusive beyond customer stakeholder bikes experience management 6
Slide 7: Key Hardwire Stage II Initiatives
Key Hardwire Stage II Initiatives 7
Slide 8: CVO as Clear Example of Innovation in the Core
PI L L AR 1 : PRO FI T FO CUS CVO AS CLEAR EXAMPLE OF INNOVATION IN THE CORE • Top 20 trending placement for tease video • 1.5M visits to H-D.com • 235K visits to product page • 200K YouTube views • 80% positive sentiment • 5.4M views on H-D social media • 2M emails with 27% open rate in first 24h •
Slide 9: Leadership in the Most Profitable Markets
PI LLAR 2: SELECTI VE EXPANSI O N AND REDEFI NI TI O N LEADERSHIP IN THE MOST PROFITABLE MARKETS North America LATAM EMEA APAC – Preserve unrivalled – Prioritize profitability – Play to win with our most – Emphasize growth of leadership position of over volume premium motorcycles premium in the regi
Slide 10: Levers to Capture Parts & Accessories Opportunity
PI L L AR 4 : G RO W TH BEYO ND BI KES LEVERS TO CAPTURE PARTS & ACCESSORIES OPPORTUNITY Grow Increase Maximize Leverage Enable with incremental accessorization opportunity with used service as a key growth through digital new and used MC on new motorcycle motorcycles growth driver volume and purcha
Slide 11: Appeal of Harley-Davidson Brand
PI L L AR 4 : G RO W TH BEYO ND BI KES APPEAL OF HARLEY-DAVIDSON BRAND 11
Slide 12: Plan to Grow in Apparel and Licensing
PI LLAR 4: G RO W TH BEYO ND BI KES PLAN TO GROW IN APPAREL AND LICENSING Evolve H-D Motorclothes – Execute seasonal and 3-year line plan – Modernize aesthetic Building a leadership team – Create min assortment & sell thru KPI’s with A&L expertise and executing on brand Create & Scale H-D Lifestyle
Slide 13: Evolving the Customer Experience
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE EVOLVING THE CUSTOMER EXPERIENCE Customer Experience Integrated through Digital and Physical Enabled by – Online Inventory search – Bike builder – Pre-selling – Transaction simplification – Online research – Online customization – Right selection
Slide 14: Investment in Our Dealership Experience
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE INVESTMENT IN OUR DEALERSHIP EXPERIENCE NEARLY $2B expected investment by U.S. dealers over 10 years (2021-2030) 20% to upgrade and modernize facilities of U.S. network committed to the program – Strengthen the representation of the brand – Welcome al
Slide 15: First Completed Fuel Facility: Harley-Davidson of Wesley Chapel
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE FIRST COMPLETED FUEL FACILITY: HARLEY-DAVIDSON OF WESLEY CHAPEL 15
Slide 16: First Completed Fuel Facility: Harley-Davidson of Wesley Chapel
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE FIRST COMPLETED FUEL FACILITY: HARLEY-DAVIDSON OF WESLEY CHAPEL Finished exterior Finished interior 16
Slide 17: Plan for Wicked West Harley-Davidson
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE PLAN FOR WICKED WEST HARLEY-DAVIDSON Planned exterior Planned interior 17
Slide 18: Plan for Lone Star Harley-Davidson
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE PLAN FOR LONE STAR HARLEY-DAVIDSON Planned exterior Planned interior 18
Slide 19: Membership & Loyalty Aimed at Building and Retaining Riders
PI L L AR 5 : I NTEG RATED CUSTO MER EXPERI ENCE MEMBERSHIP & LOYALTY AIMED AT BUILDING AND RETAINING RIDERS • Launched June 20th • Free and paid tiers • Includes enhanced Harley Owners Group • Over 500K U.S. members – up over 10% since launch of H-D Membership across all tiers • Over 500 participat
Slide 20: Financials
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Slide 21: HDMC Unit Profitability Expected to Return to Historically Healthy Levels
HDMC UNIT PROFITABILITY EXPECTED TO RETURN TO HISTORICALLY HEALTHY LEVELS Excludes LiveWire Results for 2020-2022 HDMC Unit Profitability1,2,3 Key Drivers Since Rewire: • ~23,000 fewer Wholesale units driven by strategic ~$3,700/Unit ~$3,500/Unit market exits and model pruning (e.g. Sportster) • Imp
Slide 22: What We Achieved with the Rewire and Hardwire
WHAT WE ACHIEVED WITH THE REWIRE AND HARDWIRE HDMC Revenue1 ($ millions) $4,969 $4,573 $4,888 $4,504 $3,233 – Restructured the Company – Simplified the portfolio & footprint 2018 2019 2020 2021 2022 – Reduced reliance on promotions and discounts HDMC Operating Margin2 – Emphasized cost efficiency 1
Slide 23: Q&A
Q&A 23
Slide 24: Harley-Davidson
HARLEY —- DAVIDSON