Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Investor Presentation (October 2009)
24 slides from Polaris's investor presentation, Oct 26, 2009
Slide 1: Polaris Industries Inc. Investor Presentation October 2009
Polaris Industries Inc. Investor Presentation October 2009
Slide 2: Strong Business Foundation
October 2009 2 United States International Canada 1371.1 304.2 273 2006 2007 2008 2009 2006 1657 1780 1948 1780 Strong Business Foundation By Product * By Geography * Off-Road Vehicles (ORV) 67% Victory Motorcycles 5% Snowmobile 10% Parts Garments & Accessories 18% Snowmobiles ORVs Parts Garmants &
Slide 3: 2009 Full Year Guidance
3 October 2009 2009 Full Year Guidance 2009 Full Year Guidance EPS Guidance Raised and Narrowed for Full Year 2009
Slide 4: North American Retail Sales
4 October 2009 North American Retail Sales 0% Polaris N.A. retail sales decreased in line with expectations Improving sequentially from beginning of the year Canada retail sales decline is less than U.S. Core ATV decline is greater than side-by-sides International retail sales decline similar to N.A
Slide 5: Gross Profit Margin Percentage Trends
5 October 2009 Gross Profit Margin Percentage Trends Flexible variable cost structure and timely execution drives gross margin expansion
Slide 6: Fourth Quarter 2009 Guidance
6 October 2009 Fourth Quarter 2009 Guidance Weak Industry retail sales expected to continue in Q4 2009 Prior year comparisons for Polaris not as difficult MY '10 product shipments on plan; non-MVP dealer orders in hand Commodity cost, value engineering and expense reduction will continue Currencies
Slide 7: Balance Sheet and Liquidity Profile
7 October 2009 Balance Sheet and Liquidity Profile Balance Sheet and Liquidity Profile
Slide 8: Consistent Financial Performance
October 2009 8 Consistent Financial Performance * *A reconciliation of the Company's calculation of cash flow provided to the most directly comparable cash flow measure, as required by Regulation G, appears in the appendix of this presentation. Before Changes in Current Operating Items and Deferred
Slide 9: Credit Arrangements and Ample Credit Capacity
October 2009 9 Quarter ended 9/30/2009 Polaris Credit Facility ($ in millions) Wholesale Credit ($ in millions) Retail Credit Credit Arrangements Ample Credit Capacity 8 banks in Credit Facility Effective rate = 0.75% Polaris Acceptance 50/50 joint venture with GE U.S. Dealer Financing 13 year joint
Slide 10: Dealer Inventory Levels and Dealer Health
October 2009 10 North American Dealer Inventory Levels Receivable Balance U.S. Dealers ($ in millions) North American Dealer Count Dealer Health Down 18% from Q3 2008 Victory ? 22% from Q3 2008 Expect further declines by 2009 year end Down 16% from Q3 2008 Losses remain well less than 1% Dealer coun
Slide 11: Successful New Product Introduction
11 October 2009 Successful New Product Introduction Over 25 new models introduced at July Dealer show Side-by-sides More Power - RANGER 800 XP; 500 H.0.; 6X6; Crew New Category - Midsize RANGER 400; RANGER EV (Electric) ATVs Sportsman XP chassis expanded into Touring models - 850/550 Redesigned Valu
Slide 12: Off-Road Vehicle Division
October 2009 12 Off-Road Vehicle Division North American ORV industry retail declined in Q3 2009, as expected (stable) ATVs down high twenty percent range Side-by-sides down mid-teens percent (estimate) New products well received by dealers and consumers Expanded Value line-up Gaining Share Share ga
Slide 13: Polaris Defense - Strong Growth Opportunity
October 2009 13 Military +42% +50% to 100% Full Year Guidance Polaris Military Sales Polaris Defense - Strong Growth Opportunity Military Targeted Market Size $3+ Billion Leverage Full Line of Mission Support Vehicles Expanding to other Government Agencies Grow Sales to US Foreign Military Allies
Slide 14: Bobcat Alliance
14 October 2009 Bobcat Alliance Phase 1: (2H 2010) supply of highly differentiated work vehicles Phase 2: Market co-developed product through both dealer channels #1 Off-Road Vehicle Manufacturer #1 Compact Construction Manufacturer + Relationship is progressing well
Slide 15: Snowmobile Division
October 2009 15 Snowmobile Division New MY '10 snowmobiles shipping on schedule Dealer inventory at appropriate levels heading into key selling months RUSH named 2010 Snowmobile of the Year by SnowGoer magazine (Millions) 2006 2007 2008 2009 2006 157 179 205 164 15 Sales guidance Down 12% to 14% Pol
Slide 16: On-Road Division Product Segments
October 2009 16 Low Emission Vehicles Motorcycles Cruisers Touring On-Road Division Product Segments Low Emission Vehicles Announced July 2009 Electric Vehicles designed for: Paved and hard packed surfaces Master planned communities New and growing customer base Underserved market - few purpose buil
Slide 17: On-Road Division - Victory Motorcycles
October 2009 17 On-Road Division - Victory Motorcycles Victory retail sales weak in Q3 2009 Additional production cuts made Greater focus on accelerating retail New MY 2010 touring models well received Orders exceeded modest expectations Victory dealer inventory down 22% in Q3 2009 More progress nee
Slide 18: Low Emission Vehicles
October 2009 18 Low Emission Vehicles Neig other Q2 2009 0.1 0.9 Neighborhood Vehicles People Transport Light Duty Government Commercial Stealth Hunters Multi-acre Homeowners Driver & Passenger Seat belts Turn Signals Premium Wheels Adjustable Drivers Seat Low & High Beam Lights Comfort Ride Suspens
Slide 19: Parts, Garments & Accessories Division
October 2009 19 Parts, Garments & Accessories Division Revenue impacted by decline in wholegood retail sales Remains highest gross margin product line - and expanding Over 200 new accessories added for MY '10 Expect to outperform wholegood sales in 2009 (Millions) Sales 2006 2007 2008 2009 2006 270
Slide 20: International Division
October 2009 20 International Division Europe ME/Africa Latin America Asia Aus/NZ East 0.72 0.08 0.07 0.01 0.12 Polaris Subsidiaries Sales 2006 2007 2008 2009 2006 233 258 304 243 31 guidance Down 17% to 20% (Millions) YTD Q3 2009 Revenue by Geography YTD Q3 2009 Revenue by Business Unit #1 in ORV i
Slide 21: Operational Excellence
21 October 2009 Operational Excellence Factory Inventory down 18% to Q3 2008 - expect to be under $200 million by YE '09 Product cost reduction/avoidance initiatives producing results MVP expanded to 50% of N.A. dealers - dealers love it Supply chain lead times down - more to come Q2 2008 Q3 2008 Q4
Slide 22: 2010 - Initial Thoughts
22 October 2009 2010 - Initial Thoughts No tail wind from the world economies anticipated Powersports market growth will be muted Significant organic top line growth will be challenging International expansion will be a focus Acquisition strategy/resources in place - VP Corporate Development onboard
Slide 23: Thank you. Q & A
23 October 2009 Polaris Industries Inc. Thank you. Q & A
Slide 24: Appendix
24 October 2009 Appendix 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. We caution you that actual results could differ materially from those projected i
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