Polaris Inc. · NYSE:PII
Polaris — Q1 2021 Earnings Presentation
26 slides from Polaris's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation April 27, 2021
Slide 2: Safe Harbor & Non-GAAP Measures
Safe Harbor & Non-GAAP Measures Except for historical information contained herein, the matters set forth in this presentation, are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Pote
Slide 3: Mike Speetzen, Interim CEO
Mike Speetzen Interim CEO First Quarter 2021 Earnings Results April 27, 2021
Slide 4: First Quarter 2021 Summary
First Quarter 2021 Summary Polaris retail performance continued at unprecedented levels Increased demand from installed base complementing ongoing new customer growth All segments increased market share in the quarter Significant growth in PG&A International continued to grow substantially in COVID
Slide 5: Q1 2021 North American Powersports Retail Sales
Q1 2021 North American Powersports Retail Sales Q1 2021 Polaris N.A. Retail Q1 2021 Polaris Retail Sales by Business year-over-year % change Industry Off-Road Vehicles Approx. 80% ~80% low- low- 70% seventies % Side-by-Sides ~70% seventies % ATVs about 100% low- Motorcycles low-seventies % twenties
Slide 6: Snowmobiles Product Launch & SnowCheck Update
Snowmobiles Product Launch & SnowCheck Update MY’22 New Product Launch MOUNTAIN: 11 New Models CROSSOVER: 2 New Models TRAIL/RACE: 7 New Models Exclusive Models. Factory Customization. 650 R M K K haos 146 Sw itchback XC 850 Indy XCR 136 Global MY’22 SnowCheck Orders REC/UTILITY: 2 New Models TIMBER
Slide 7: North American Dealer Inventory
North American Dealer Inventory Total N.A. Dealer Inventory N.A. Dealer Inventory by Business (in units) (in units) Quarters Ended Q1'20 Q1 2021 Year-over-Year Percent Change Quarters Ended Q1'21 Note: Excludes Boats ORV Snow Motorcycles 0% (47%) (55%) (58%) (71%) ~(40%) Supply Chain Constraints ~(5
Slide 8: Polaris Manufacturing Capacity Utilization
Polaris Manufacturing Capacity Utilization 2021 Manufacturing Capacity Utilization Supply Chain Constraints Unconstrained ~100 suppliers most impacted Available Capacity Driven by unprecedented demand/COVID related employee absenteeism/Tier 2 & 3 supplier constraints Supply Holidays/ Logistics, ocea
Slide 9: Polaris Electrification Strategy
Polaris Electrification Strategy Current Electrification Portfolio rEV’d Up! IN-ORGANIC INVESTMENTS ORGANIC INVESTMENTS Go-forward Electrification Strategy New Full-Size Electric Off-Road Electrification RANGER GEM Goupil Mid-Size RANGER EV Zero Motorcycles = (2011) (2011) (2009 – present) 10-year E
Slide 10: Bob Mack, SVP & Interim CFO
Bob Mack SVP & Interim CFO First Quarter 2021 Earnings Results April 27, 2021
Slide 11: Q1 2021 Financial Results
Q1 2021 Financial Results Sales Net Income (Loss) Earnings Per share $ in billions $ in millions Q1 ’20 Q1 ‘21 Q1 ’20 Q1 ‘21 Q1 ’20 Q1 ‘21 YoY % Chg. GAAP 39% Significantly Significantly $1.405 $1.951 ($5) $134 ($0.09) $2.11 39% $1.951 Significantly Significantly $146 $2.30 $1.405 ADJUSTED* YoY % Ch
Slide 12: Q1 2021 Segment Sales & Gross Profit Margins
Q1 2021 Segment Sales & Gross Profit Margins ORV/Snowmobiles Motorcycles* Global Adjacent Markets Aftermarket Boats 50% $1,232 31% 14% 29% 27% $230 $824 $166 $125 $202 $199 Q1 2021 Sales ($ in millions) $127 $98 $155 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Com
Slide 13: Full Year 2021 Sales & EPS Guidance
Full Year 2021 Sales & EPS Guidance* Total Company Adjusted* Sales Guidance Adjusted* Earnings Per Share Guidance $ in millions 18% to 21% 16% to 20% $8,300 to $8,500 $9.00 to $9.25 (increased) (increased) $7,025 $7.74 FY 2020 FY 2021 FY 2020 FY 2021 Actual Guidance Actual Guidance FY powersports ma
Slide 14: Full Year 2021 Sales Guidance by Segment
Full Year 2021 Sales Guidance by Segment Global Adjacent ORV/Snowmobiles Motorcycles Markets Aftermarket Boats International high- twenty % (increased) high- $841 Supplemental Sales Data ($ in millions) teens % (increased) mid-single Segment Sales ($ in millions) digits % $4,533 mid to high- (increa
Slide 15: Financial Position & Liquidity Profile
Financial Position & Liquidity Profile Capital Summary March 2021 Liquidity Profile $ in millions $ in millions Variance to First Qtr 2021 First Qtr 2020 Cash $432 +2% Debt /Finance Lease Obligations $1,434 -34% Shareholders’ Equity $1,059 +6% Total Capital $2,493 +27% Credit Revolver – Capacity $70
Slide 16: Mike Speetzen, Interim CEO
Mike Speetzen Interim CEO First Quarter 2021 Earnings Results April 27, 2021
Slide 17: Closing Comments
Closing Comments Retail demand strong across all businesses; anticipated to remain strong Supply chain’s capacity to meet demand expected to remain tight throughout the year Polaris in strong financial position, poised to outperform; factored in guidance Advancement towards near and long-term strate
Slide 18: Q&A First Quarter 2021 Earnings Results
Q&A First Quarter 2021 Earnings Results April 27, 2021
Slide 19: Appendix
Appendix Q1 2021 Gross Profit Margin – Actual by Segment Q1 2021 Supplemental Sales & FY 2021 Guidance Update – International & PG&A Q1 2021 Financial Services Income Q1 2021 Non-GAAP Reconciliations Q1 2021 Non-GAAP Reconciliations – Segments 2021 Guidance Adjustments Q1'21 Earnings 4/27/21 19
Slide 20: Q1 2021 Gross Profit Margin
Q1 2021 Gross Profit Margin Q1 2021 Gross Profit Margin – GAAP Q1 2021 Gross Profit Margin – Adjusted* 24.6% 24.7% 20.8% 21.2% Q1 2020 Q1 2021 Q1 2020 Q1 2021 GAAP* GAAP* GAAP* GAAP* Q1 2020 Q1 2021 Q1 2020 Q1 2021 Segments Segments GAAP GAAP Adjusted* Adjusted* ORV/Snow 24.5% 26.6% ORV/Snow 24.5% 2
Slide 21: Q1 2021 Supplemental Sales – International & PG&A
Q1 2021 Supplemental Sales – International & PG&A Q1 2021 International Sales ($ millions) Sales by Segment Sales by Region 59% International $288 $182 ORV / Snow Motorcycles Europe, Latin America 78% 40% Middle East 93% and Africa Global Adjacent 57% Asia Pacific Markets 48% 40% Q1 2020 Q1 2021 Q1
Slide 22: Financial Services Arrangements
Financial Services Arrangements Financial Services Income by Category Wholesale Credit Retail Credit Contracts Written $ in millions $ in millions $ in millions Receivable Balance – U.S. Dealers 48% $326 $19.7 $1,404 $16.2 Other Activities $220 $764 $733 $772 Wholesale Financing $519 Retail Financin
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Millions, Except Per Share Data; Unaudited) Three months ended March 31, 2021 2020 Key Definitions: This presentation contains certain GAAP financial measures which Sales $ 1,951.1 $ 1,405.2 have be
Slide 24: Non-GAAP Reconciliations – Segments
Non-GAAP Reconciliations – Segments (In Millions, Unaudited) Three months ended March 31, (In Millions, Unaudited) Three months ended March 31, 2021 2020 2021 2020 SEGMENT SALES SEGMENT GROSS PROFIT ORV/Snow segment sales $ 1,232.2 $ 823.7 ORV/Snow segment gross profit $ 327.4 $ 201.7 No adjustment
Slide 25: 2021 Guidance Adjustments
2021 GUIDANCE ADJUSTMENTS 2021 guidance excludes the pre-tax effect of supply chain transformation, restructuring and network realignment costs of approximately $5 million to $10 million, and approximately $5 million to $10 million for class action litigation-related expenses. Intangible amortizatio
Slide 26: de Open
de Open =