Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Raymond James Institutional Investors Conference 2014
23 slides from Polaris's conference presentation, Mar 3, 2014
Slide 1: Polaris Industries Inc. at Raymond James Institutional Investors Conference
POLARIS INDUSTRIES INC. Scott W. Wine, Chairman & CEO Raymond James Institutional Investors Conference March 3-4, 2014
Slide 2: Polaris at a Glance – Market Leading Global Businesses
2013 Sales by Geography Polaris at a Glance – Market Leading Global Businesses 2 IR Mar-2014 2013 Sales by Product 67% 16% 8% 6% 3% Off-Road Vehicles PG&A Snowmobiles United States 72% International 16% EMEA 79% of Total Int'l Canada 12% * from continuing operations SALES $3.8 BILLION UP 18% NET INC
Slide 3: Polaris at a Glance – Key Financial Metrics
$2,657 $3,210 +18% $3,777 $228 $312 $381 NET INCOME* UP 12% TO 16% 2011 2012 2013 2014 Guidance Sales Guidance Net Income 4th Straight Year of Exceptional Financial Performance Polaris at a Glance – Key Financial Metrics * from continuing operations SALES UP 11% TO 14% EPS $3.20 $4.40 +23% $5.40 UP
Slide 4: Polaris Strategic Objectives
Polaris Strategic Objectives Vision & Strategy Strategic Objectives VISION STRATEGY Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high quality vehicles, products, services and experiences that enrich their lives. Polaris will be a highly profi
Slide 5: M&A Activity – A Story of Innovation & Growth
Acquisitions Strategic Alliances 2009 2010 2011 2012 2013 2014 5 IR Mar-2014 M&A Activity A Story of Innovation & Growth Private Limited 5
Slide 6: R&D Investment Fuels Innovation & Growth
6 IR Mar-2014 R&D Spend R&D Investment Fuels Innovation & Growth 600 experienced engineers Industry-leading technology centers Wyoming, MN Roseau, MN Bergdorf, Switzerland 26 New MY ’14/’14.5 products introduced Off-Road Vehicles 12 Motorcycles 5 Snowmobiles 9 2013 Vitality Index 72% (% of revenue f
Slide 7: Introducing a Whole New Off-Road Experience
Introducing a Whole New Off-Road Experience Continuing to Innovate How People Experience the Off-Road $7,499 US RIDE 32 HP Pro-Star DOHC engine 48” Width - Trail Capable On-Demand All-Wheel Drive 10.25” Ground Clearance CONFIDENCE ROPS Cab frame Point seat belt Safety nets ERGONOMICS & COMFORT Plush
Slide 8: A Unique Vehicle Leveraging Best in Class Features of Sportsman & RZR
A Unique Vehicle Leveraging Best in Class Features of Sportsman & RZR 8 Sportsman ACE 4X4 Video IR Mar-2014
Slide 9: All Businesses Expecting Sales Growth in 2014
9 IR Mar-2014 PG&A Snowmobiles All Businesses Expecting Sales Growth in 2014 Motorcycles Off-Road Vehicles SxS SxS ATV ATV 2013 2014 Guidance 2013 2014 Guidance 2013 2014 Guidance 2013 2014 Guidance Up high-single digits % +13% $2,521M Up mid-single digits % +7% $302M 800 Indy® SP Up 65% to 75% Up M
Slide 10: The All New Platform 2015 Polaris Snowmobiles
The All New Platform 2015 Polaris Snowmobiles 13 New 2015 Models Launched + 12 Limited Edition Models RIDER-BALANCED CONTROL – Smoother ride, Sharper handling UNRIVALED ACCELERATION – More power, Less weight RIDER-CENTRIC COMFORT – LCD gauge with GPS, LED headlight IR Mar-2014 10
Slide 11: 2014 Build the Brand
11 IR Mar-2014 2014 Build the Brand 2013 Re-Launch Award Winning Bikes, Quality Dealers, Expanding Capacity Sturgis Reveal: 5,000 live attendees 4.1M viewers watched on HISTORY Channel Web/Social: 4.6M site visits Public Relations: ~2.7B global PR impressions 14 magazine covers Consumer Engagement:
Slide 12: Growth Through Adjacencies – Small Vehicles
2010 2011 2012 2013 2014 Guidance Sales +177% $123 2013 2014 Expectations Sales Growth Through Adjacencies 12 IR Mar-2014 Small Vehicles Building Foundation for Successful Adjacency Businesses GEM® e4 AIXAM GTO 2013 2014 Expectations Sales . DAGOR™ MV850 SxS (MRZR) Up 25% to 30% +177% $123M
Slide 13: Global Market Leadership – Polaris International Sales
Global Market Leadership Polaris International Sales ($ millions) Gaining Share in Challenging Economic Environment 2012 2013 2014 Guidance Up about 10% +29% $592 $461 EMEA sales increase driven by market share gains in ORV; Aixam acquisition PG&A up 26% in 2013 Manufacturing plants in Jaipur, India
Slide 14: LEAN Enterprise – Global Customer Excellence
LEAN Enterprise – Global Customer Excellence Goal: Deliver a customer-driven, lean enterprise - sales, service, marketing, & interactive Tim Larson hired to lead Sales & Customer Excellence Jonathan Blaisdell promoted to Chief Lean Officer Driving an efficient and integrated end-to-end experience fo
Slide 15: LEAN Enterprise
LEAN Enterprise 15 QUALITY SAFETY 2011 2012 2013 < 1% 1.7x 1.5x 1.4x 2011 2012 2013 2011 2012 2013 Improvements Across Key Metrics GROSS MARGIN EXPANSION PRODUCTION Total Recordable Injury Rate79% Improvement in 3 Years 27.9% 28.8% 29.7% down 50 to 70 bps 2011 2012 2013 2014 Guidance Materials Labor
Slide 16: Summary – 2014 Business Outlook
Execution Key to Delivering 5th Straight Year of Record Performance Summary – 2014 Business Outlook Tenuous improvement in U.S., global economies Risks outweigh opportunities Powersports Industry growing; competition intensifying Resilient, dedicated customers Innovation and execution drive ORV, PG&
Slide 17: Appendices
Appendices 2014 Full Year Guidance Detail 2014 Full Year Gross Margin Guidance Balance Sheet and Liquidity Profile Income From Financial Services Global Manufacturing Operations 17 IR Mar-2014
Slide 18: 2014 Full Year Guidance
Another Year of Double-digit Sales and Earnings Growth Expected 2014 Full Year Guidance METRIC GUIDANCE Product Line Sales Off-Road Vehicles Up high single digits % Snowmobiles Up mid-single digits % Motorcycles Up 65% to 75% Small Vehicles Up 25% to 30% PG&A Up mid-teens % International Up about 10
Slide 19: 2014 Full Year Guidance
2014 Full Year Guidance METRIC GUIDANCE Product Line Sales Off-Road Vehicles Up high single digits % Snowmobiles Up mid-single digits % Motorcycles Up 65% to 75% Small Vehicles Up 25% to 30% PG&A Up mid-teens % International Up about 10% Total Company Sales Up 11% to 14% Gross Margins Down 50 to 70
Slide 20: Balance Sheet & Liquidity Profile Remains Healthy
Balance Sheet & Liquidity Profile Remains Healthy Balance Sheet and Liquidity Profile $ In millions (except per share and rate data) FY 2013 Fav / (UnFav) 2012 2014 Full Year Guidance Cash $92.2 ($324.8) Increase Debt $287.6 ($180.4) Decreased Credit Facility $350.0 Flat Unchanged Factory Inventory
Slide 21: Income from Financial Services
Income from Financial Services ($M) it Approval Rate Wholesale Credit PA Receivables ($M) Inco21 IR Mar-2014 Ample Wholesale and Retail Credit Availability Retail Credit Penetration Rate Full Year income from financial services expected to increase somewhat faster than sales growth in 2013 Higher re
Slide 22: Global Manufacturing Operations
Global Manufacturing Operations Expanding into Europe and Asia Current Polaris MFG Locations Future Polaris MFG Locations Monterrey MEXICO SxS, Engines Spirit Lake/Milford IOWA SxS, Motorcycles, GEM, Commercial Roseau MINNESOTA Snow, ATV, SxS Osceola WISCONSIN Engines Bourran FRANCE Goupil Chanas, A
Slide 23: 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 2014 sales, shipments, margins, net income from continuing operations and cash flow, the trend toward producing more of the Company
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