Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Shareholder Meeting (April 2009)
22 slides from Polaris's shareholder meeting presentation, Apr 30, 2009
Slide 1: Polaris Industries Inc. 2009 Annual Meeting
Polaris Industries Inc. 2009 Annual Meeting April 30, 2009
Slide 2: Gregory R. Palen, Chairman of the Board of Directors
2009 Annual Meeting Gregory R. Palen Chairman of the Board of Directors
Slide 3: Polaris Industries Inc. 2009 Annual Meeting
Polaris Industries Inc. 2009 Annual Meeting April 30, 2009
Slide 4: 2009 - Leading The Way: Scott W. Wine, CEO
2009 - Leading The Way Scott W. Wine Chief Executive Officer
Slide 5: 2008 Full Year Results
2007 2008 Sales 1780 1948.3 0 2007 2008 Sales 3.1 3.5 0 2008 Full Year Results Diluted EPS * $3.10 $3.50 +13% $1,780.0 $1,948.3 +9% Total Company Sales ($ in millions) * From continuing operations. Record Sales & EPS
Slide 6: 2008 Full Year Sales
ORV Snow Victory PG&A Sales 1780 1780 1891.2 1897.6 1897.6 1948.3 111.2 26 19.6 50.581 2007 $1,780.0 +9% +15% - -17% +17% 2008 $1,948.3 2007 Total Company 2008 Total Company 2008 Full Year Sales Geographic Sales Total Company Sales Sales by Product line United States Canada Other Foreign Countries S
Slide 7: 2008 Full Year Earnings
07 Net Margin 07 Net Margin Gross Profit Financial Services Interest Expense Non-Operating Incom Income Taxes Sales 0.063 0.063 0.071 0.056 0.056 0.057 0.057 0.06 0.008 0.001 0.015 0.004 0.003 0.002 Net Income as a Percent of Sales* Gross Margin Op Expense Financial Services Interest Expense Non-Op
Slide 8: Industry-Leading Returns
Industry-Leading Returns 2004 2005 2006 2007 2008 0.18 0.18 0.15 0.14 0.15 Peers 0.1251118 0.1197862 0.1078636 0.098095 0.0437014 S&P 0.065443378 0.070686342 0.07608951 0.074584368 0.070991254 2004 2005 2006 2007 2008 0.38 0.37 0.41 0.66 0.76 Peers 0.2412936 0.2473326 0.2295802 0.2180638 0.0026454 S
Slide 9: North American Dealer Inventory - All Products
North American Dealer Inventory - All Products Dealer inventory down 7% at year-end 2008 and Q1 2009 Core ATVs and motorcycles require further reductions MVP key to sustainable reductions 2009 dealer inventory levels are expected to significantly decline
Slide 10: North American Retail Sales
North American Retail Sales ATVs, Side-by-sides, Motorcycle and Snowmobiles, combined North American retail sales deteriorated throughout Q4 2008; continued into Q1 2009 International also declined in Q4 2008 and Q1 2009 Polaris gained market share in all businesses in 2008 for 2nd year straight % c
Slide 11: Total Return to Shareholders
Total Return to Shareholders One Year Total Return Dec. 31, 2007 - Dec. 31, 2008 Trailing Twelve Months Total Return April 24, 2008 - April 24, 2009 Source: CapitalIQ. Total Return = stock price plus reinvested dividends - -38% - -26% TTC - Toro BC - Brunswick HOG - Harley ACAT - Arctic Cat WGO - Wi
Slide 12: Current Investor Sentiment
Current Investor Sentiment Long-term Growth Profile Intact Track record of returns and variable cost structure key appeals to the story Strong Management Team Gross margin expansion and ability to meet expectations viewed positively Appropriately Managing Financing Concerns Proactive stance in maint
Slide 13: Ready for 2009
Ready for 2009 Aligned Strategy & Structure Off-Road Vehicle Division International Team Adjacencies Attacked Costs Workforce reductions announced 460 Operating Expense reductions > $10M Manufacturing/Production costs reduced with volume Accelerated Operational Excellence Speed / Factory Adjustments
Slide 14: 2009 Full Year Guidance
2009 Full Year Guidance Total Company Sales Down 15% to 23% Off Road Vehicles (ORV) Down 17% to 25% Snowmobiles Down 10% to 20% Victory Motorcycles Down 25% to 40% PG&A Down 9% to 13% Gross Margins Up to 130 bpts improvement Operating expenses Reduction > $10 million - up as a percent of sales EPS -
Slide 15: First Quarter 2009 Results
2008 2009 Sales 0.55 0.26 0 First Quarter 2009 Results Results in line with Company expectations Balance sheet remains strong Q1 EPS includes $0.18 per share impairment charge - KTM Investment 2008 2009 Sales 388.7 312 0 Diluted EPS $0.55 $0.26 - -53% $388.7 $312.0 - -20% Total Company Sales ($ in m
Slide 16: Balance Sheet and Liquidity Profile - Remains Healthy
Balance Sheet and Liquidity Profile - Remains Healthy $ In millions (except per share data) Q1 2009 +/- Q1 2008 Full Year / Year End 2009 Guidance Cash and cash equivalents $17.9 $0.3 Increase over 2008 Factory Inventory $245.6 -$33.7 Lower than 2008 Net Debt - ending (debt less cash balances) $226.
Slide 17: Product Innovation is Front-end Advantage
Product Innovation is Front-end Advantage Motorcycle of the Year 2008 by Motorcycle Cruiser Victory Vision Sportsman 850 XP 2009 800 Assault RMK
Slide 18: Video RUSH
Video RUSH(tm)
Slide 19: Polaris 5-Year Strategic Objectives
Polaris 5-Year Strategic Objectives Best in Powersports PLUS 5-8% organic growth Growth through Adjacencies $100 - 300M growth Global Market Leadership >25% of Polaris Revenue Operations is a Competitive Advantage Op Ex drives >200bpts Op Margin improvement Strong Financial Performance Sustainable,
Slide 20: Private Securities Litigation Reform Act of 1995 Disclosure Statement
Private Securities Litigation Reform Act of 1995 Polaris Industries Inc. Disclosure Litigation 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 Litigation Reform Act of 1995. W
Slide 21: Thank You, Questions?
Polaris Industries Inc. Thank You Questions?
Slide 22: Polaris Industries Inc. 2009 Annual Meeting
Polaris Industries Inc. 2009 Annual Meeting April 30, 2009
Polaris Industries — Shareholder Meeting (April 2009) on 6ix