Slide 1: Q2 2025 Results and HDFS Transaction Announcement
Q2 2025 Results and HDFS Transaction Announcement Wednesday, July 30, 2025
Slide 2: Q2 2025 Results – Earnings Call Participants
Q2 2025 RESULTS – EARNINGS CALL Call Participants ▪ Jochen Zeitz, Chairman, President and CEO ▪ Jonathan Root, Chief Financial Officer and President, Commercial ▪ Karim Donnez, CEO – LiveWire (NYSE: LVWR) ▪ Shawn Collins, Director Investor Relations 2
Slide 3: Q2 2025 Performance Headlines
Q2 2025 PERFORMANCE HEADLINES ▪ Delivered diluted EPS of $0.88 ▪ HDMC operating income margin of 5.9% ▪ HDMC revenue down 23% year-over-year ▪ Global motorcycle shipments decreased 28%, due primarily to planned dealer inventory reduction ▪ Global motorcycle retail sales down 15% year-over-year ▪ Glo
Slide 4: HDFS Transaction – Key Highlights
HDFS TRANSACTION – KEY HIGHLIGHTS: ▪ Our strategic partners have valued the HDFS business at approximately 1.75x post transaction book value ▪ HDFS has agreed to sell a 4.9% common equity interest to investment vehicles managed by KKR and PIMCO ▪ HDFS will sell approximately two-thirds of HDFS futur
Slide 5: HDFS: Attractive Structure Achieves Our Objectives
HDFS: ATTRACTIVE STRUCTURE ACHIEVES OUR OBJECTIVES H-D Transaction Objectives1 Transaction Outcomes 1. Illustrate class-leading returns and premium valuation of HDFS as a driver of value for HOG shareholders ✓ Attractive HDFS valuation at ~1.75x post- transaction book value from sophisticated financ
Slide 6: Unlocking Value for Harley-Davidson Transforms HDFS into Capital-light Model
Unlocking Value for Harley-Davidson Transforms HDFS into ‘Capital-light’ model ▪ Reflects a post-transaction HDFS valuation at an attractive ▪ HDFS enters into strategic partnership with KKR & PIMCO premium of ~1.75x Price/Book multiple ▪ HDFS expects to sell more than $5B of existing retail loan ▪
Slide 7: Consolidated – Q2 2025 Results
CONSOLIDATED – Q2 2025 RESULTS Q2 2025 Results1, 2 Total ($ millions, except earnings per share) HDMC HDFS LiveWire HDI Revenue $1,044 $257 $6 $1,307 % vs PY -23% -2% -7% -19% Operating Income (Loss) $61 $70 ($19) $112 Margin % 5.9% 27.1% NM 8.6% % vs PY -69% -2% 34% -53% Net Income Attributable to
Slide 8: Consolidated – June YTD 2025 Results
CONSOLIDATED – JUNE YTD 2025 RESULTS June YTD 2025 Results1, 2 Total ($ millions, except earnings per share) HDMC HDFS LiveWire HDI Revenue $2,125 $502 $9 $2,636 % vs PY -25% -2% -22% -21% Operating Income (Loss) $178 $134 ($38) $273 Margin % 8.4% 26.6% NM 10.4% % vs PY -59% 7% 33% -46% Net Income A
Slide 9: Harley-Davidson Worldwide Retail Sales and Inventory
HARLEY-DAVIDSON WORLDWIDE RETAIL SALES AND INVENTORY Harley-Davidson Retail Sales Dealer Inventory Units Retail Motorcycle Sales of H-D Motorcycles (vs. PY) Worldwide Harley-Davidson Dealer Inventory Units (Thousands) Q2 2025 June YTD 2025 -28% vs. Q2 ’24 North America -17% -20% EMEA -5% -4% 68 Asia
Slide 10: HDMC Revenue Bridge
HDMC REVENUE BRIDGE Q2 2025 HDMC Revenue Bridge1, 2, 3 1% 1% -1% -23% -23% Volume Pricing Mix FX Total YTD 2025 HDMC Revenue Bridge1, 2, 3 1% 1% 0% -27% -25% Volume Pricing Mix FX Total 1 HDMC Revenue Bridge compares Q2 ‘25 revenue to Q2 ‘24 revenue on a year-over-year basis and YTD 2025 revenue to
Slide 11: Q2 2025: HDMC Operating Income Margin
Q2 2025: HDMC OPERATING INCOME MARGIN Operating Income Margin Q2 2024 Op Income Margin $198 mm 14.7% 14.7% Volume ($101) -5.3 Pts Pricing $9 0.8 Pts Mix $6 0.6 Pts Manufacturing & Other ($60) -5.8 Pts 5.9% Increased Tariffs in ‘25 1 ($13) -1.2 Pts FX $24 2.3 Pts Operating Expenses ($2) -0.2 Pts Q2 2
Slide 12: June YTD 2025: HDMC Operating Income Margin
JUNE YTD 2025: HDMC OPERATING INCOME MARGIN Operating Income Margin YTD 2024 Op Income Margin $436 mm 15.4% Volume ($240) -6.0 Pts 15.4% Pricing $32 1.4 Pts Mix $17 0.7 Pts Manufacturing & Other ($95) -4.5 Pts 8.4% Increased Tariffs in ‘25 1 ($17) -0.8 Pts FX $24 1.2 Pts Operating Expenses $21 1.0 P
Slide 13: HDMC: Tariff Update
HDMC: TARIFF UPDATE Cost of New or Increased Tariffs in 1H 20251 was $17 million We expect tariff impacts will increase in 2H 2025, but environment remains volatile U.S.-Centric Manufacturing Footprint 1) Motorcycle Final Assembly for NA - York, PA Current 2025 Tariff Picture 2) Powertrain Operation
Slide 14: HDFS Segment: Q2 2025 Results
HDFS SEGMENT: Q2 2025 RESULTS Summary Financials Q2 +/- % vs. PY ($ millions) 2025 PY Revenue $257 ($6) -2% Interest Expense $93 $- 0% Provision for Credit Losses $50 ($6) -11% Operating Expense $44 $2 5% Total Expenses $187 ($4) -2% Operating Income $70 ($2) -2% Margin % 27.1% 14
Slide 15: HDFS Segment: June YTD 2025 Results
HDFS SEGMENT: JUNE YTD 2025 RESULTS Summary Financials YTD +/- % vs. PY ($ millions) 2025 PY Revenue $502 ($10) -2% Interest Expense $182 $- 0% Provision for Credit Losses $103 ($14) -12% Operating Expense $83 ($4) -5% Total Expenses $368 ($18) -5% Operating Income $134 $8 7% Margin % 26.6% 15
Slide 16: HDFS Segment Performance
HDFS SEGMENT PERFORMANCE Annualized Retail Credit Losses1, 2 Retail Finance Receivables & Allowance Receivables ($B) Allowance Percentage 5.9% 5.7% 5.7% 5.4% 3.3% 5.1% 3.1% 5.0% 4.4% 2.6% $6.8 $6.7 $6.7 $6.6 $6.5 $6.4 $6.3 1.9% 1.4% 0.8% Q2 '20 Q2 '21 Q2 '22 Q2 '23 Q2 '24 Q2 '25 CECL Q4 '20 Q4 '21 Q
Slide 17: LiveWire Segment: Q2 and June YTD 2025 Results
LIVEWIRE SEGMENT: Q2 AND JUNE YTD 2025 RESULTS1, 2,3 Q2 JUNE YTD ▪ Q2 Operating loss decrease of $10 million and $ millions YTD Operating loss decrease of $19 million % vs % vs driven by a decrease in selling, administrative and Actual 2024 2025 PY 2024 2025 PY Units engineering expense. Motorcycle
Slide 18: Consolidated – Q2 2025 Results
CONSOLIDATED – Q2 2025 RESULTS HDI Operating Cash Flow ($ millions) HDI Financial Metrics – YTD $578 $509 ▪ Capital Investments1 – $69 million ▪ Effective Tax Rate – 23% ▪ Cash & Cash Equivalents2 – $1.6 billion ▪ Dividends Paid – $45 million ▪ Shares Repurchased on Discretionary Basis – $87 million
Slide 19: Share Repurchases / Dividends
SHARE REPURCHASES / DIVIDENDS $1.5 Billion in Total Capital Returned 34.5 Million Shares Repurchased $1.2B of Shares Repurchased2 + $325M in Cash Dividends 1 22% of Shares Outstanding 2, 3 $541 12.5 $418 $446 10.2 8.4 $132 3.4 2022 2023 2024 1H 2025 2022 2023 2024 1H 2025 Cash Dividends (in $ millio
Slide 20: Harley-Davidson, Inc. – 2025 Financial Guidance
HARLEY-DAVIDSON, INC. – 2025 FINANCIAL GUIDANCE (JULY 30, 2025) HDMC HDFS LiveWire Operating Income Revenue $525M - $550M LiveWire Units1 Withdrawn May 1, 2025 (Includes $275M - $300M from HDFS Withdrawn May 1, 2025 Transaction only expected in FY 2025) Operating Income Margin Operating Loss Withdra
Slide 21: HDFS Transaction – Appendix
HDFS TRANSACTION – APPENDIX Source: Consensus estimates, Company filings. 21
Slide 22: Strategic Partnership Overview
STRATEGIC PARTNERSHIP OVERVIEW Sale of Existing Retail • Over $5B of HDFS' retail finance receivables expected to be sold to strategic Amount Sold Receivables partners Sale of Future Retail Annual Sale Target • ~2/3 of HDFS annual retail originations expected to be sold to strategic partners Receiva
Slide 23: HDFS Post-Transaction Summary
HDFS POST-TRANSACTION SUMMARY HDFS – Illustrative Financial Summary1 HDFS – New Capital-Light Business Profile ▪ Post-transaction, HDFS is expected to remain well capitalized Illustrative Impact - Sale of Existing Retail Receivables while strategic partnership materially reduces the capital intensit
Slide 24: HDFS Expected to Grow Asset-Light Operating Income at Significantly Higher ROE
HDFS EXPECTED TO GROW ASSET-LIGHT OPERATING INCOME OVER TIME AT SIGNIFICANTLY HIGHER ROE Expect significant reduction in HDFS equity vs. a no transaction scenario along with long-term capital efficient operating income, which is expected to drive HDFS ROE to nearly double current levels Transaction
Slide 25: Strategic Partners with Deep Expertise and Strong Track Record
STRATEGIC PARTNERS WITH DEEP EXPERTISE AND STRONG TRACK RECORD ▪ Leading global investment firm that offers alternative asset management ▪ Established in 1971, PIMCO is a registered investment adviser based in as well as capital markets and insurance solutions Newport Beach, CA Partner ▪ Manages ove
Slide 26: HDFS Transaction Expected to Provide Cash for Strategic Capital Allocation
HDFS TRANSACTION EXPECTED TO PROVIDE CASH FOR STRATEGIC CAPITAL ALLOCATION ▪ HDFS transaction is expected to generate ~$1B of available cash and allow for ~$1.25B distribution to H-D from HDFS ▪ Will support Harley-Davidson’s capital allocation priorities ▪ Cash is expected to be used for: $500M of
Slide 27: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements The Company intends that certain matters discussed in this presentation are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act
Slide 28: Forward Looking Statements Continued
FORWARD LOOKING STATEMENTS CONTINUED The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s dealers to sell its motorcycles and related products and services to retail customers. The Company