Home Bancshares, Inc. · NYSE:HOMB
Home Bancshares — FY2020 Earnings Presentation
54 slides from Home Bancshares's earnings presentation, Feb 2, 2021
Slide 1: Harley-Davidson, Inc. Business Update
Harley-Davidson, Inc. Business Update February 2, 2021 11
Slide 2: Business Update Conference Call
Business Update Conference Call 2020 Financial Results & Strategic Plan Review This presentation supports the audio call. The audio playback for today’s call will be available at Harley-Davidson.com, or call (855) 859-2056 or (404) 537-3406 until February 16th. ID 3091310. CALL PARTICIPANTS ▪ Jochen
Slide 3: The Results of the Rewire
The RESULTS OF THE REWIRE Rewire Reduced complexity and increased speed ▪ New operating model and organizational structure across every function to provide simplicity, agility and efficiency Reset global business ▪ Resourcing and prioritizing the markets with the highest potential Expanded focus bey
Slide 4: Q4 2020 Results
Q4 2020 Results Motorcycles Financial Svcs Total HDI Segment Segment Revenue $725M $531M $194M Consolidated – Motorcycles and Related Products and Financial Services Segments % vs. PY -32% -39% -2% Operating Income (Loss) ($120M) ($196M) $77M Net Loss ($96M) Feb. 2, 2021 Conference Call Slide Presen
Slide 5: Full Year 2020 Results
Full Year 2020 Results Motorcycles Financial Svcs Total HDI Segment Segment Revenue $4,054M $3,264M $790M Consolidated – Motorcycles and Related Products and Financial Services Segments % vs. PY -24% -29% Flat Operating Income (Loss) $10M ($186M) $196M Net Income $1M Feb. 2, 2021 Conference Call Sli
Slide 6: Worldwide Retail Sales and Inventory
Worldwide Retail H-D NEW RETAIL MOTORCYCLE SALES WORLDWIDE H-D NEW RETAIL Sales and vs. Prior Year MOTORCYCLE YEAR-END INVENTORY Motorcycles and Related Products Segment Inventory Q4 FY (thousands) RETAIL SALES Worldwide Retail Sales -14% -17% INVENTORY UNITS North America -15% -18% EMEA -2% -16% As
Slide 7: Motorcycles Segment Shipments & Revenue
Shipments & SHIPMENTS REVENUE Revenue MOTORCYCLES SEGMENT MOTORCYCLES SEGMENT ($ millions) Motorcycles and Related Products Segment Q4 vs. PY FY vs. PY Q4 vs. PY FY vs. PY Total Total 20,921 -48% 145,246 -32% $531 -39% $3,264 -29% Shipments Revenue Shipment Mix Motorcycle $319 -52% $2,350 -34% Touri
Slide 8: Motorcycles Segment Gross Margin & Operating Income
Gross Margin & GROSS MARGIN1 OPERATING INCOME Operating MOTORCYCLES SEGMENT ($ millions) MOTORCYCLES SEGMENT ($ millions) Motorcycles and Related Products Segment Income Q4 FY Q4 FY 2019 Gross Margin $221 $1,343 2019 Operating (Loss) Income ($46) $290 % of Revenue 25.2% 29.4% % of Revenue -5.3% 6.3%
Slide 9: Financial Services Segment Operating Income
Financial Services OPERATING INCOME Segment FINANCIAL SERVICES SEGMENT ($ millions) Q4 FY Financial Services Segment 2019 Operating Income $59 $266 Net Interest Income ($18) ($32) Provision for Loan Losses (retail & wholesale) $36 ($47) Operating Expenses1 ($2) $12 All Other $2 ($3) Feb. 2, 2021 Con
Slide 10: Financial Services Segment
($ millions) Services Segment Financial (thousands) Financial Services Segment 10 Feb. 2, 2021 Conference Call Slide Presentation
Slide 11: HDFS Retail Motorcycle Loan Performance
Financial HDFS RETAIL MOTORCYCLE LOAN PERFORMANCE Services Segment 7% 6 .29% 6 .51% 30+ Day Delinquencies 6 .15% 6% Financial Services Segment 5 .07% 5% 4 .25% 4 .21% 4 .12% 4 .39% 3 .85% 3 .94% 4% 3 .71% 3 .61% 3 .78% 1 3 .18% 3% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Feb. 2, 2021
Slide 12: Harley-Davidson, Inc. 2020 vs. Prior Year
Harley- Davidson, 2020 Harley-Davidson, Inc. vs. Prior Year Inc. • Cash & cash equivalents - $3.26 billion vs. $834 million (YE) Consolidated – Motorcycles and Related Products and Financial Services Segments • Operating cash flow - $1.18 billion vs. $868 million (FY) • Capital expenditures - $131 m
Slide 13: The Hardwire: 2021-2025 Strategic Plan
The Hardwire Harley-Davidson’s 2021-2025 Strategic Plan February 2, 2021 Feb. 2, 2021 Conference Call Slide Presentation 13 13
Slide 14: Our Vision, Mission & Culture
Building our legend and leading Our Vision, our industry through innovation, vision evolution and emotion Mission & Culture More than building machines, Our we stand for the timeless mission pursuit of adventure. Feb. 2, 2021 Conference Call Slide Presentation Freedom for the soul. Our H-D#1 - Commi
Slide 15: Desirability
Desirability A motivating force driven by emotion. Harley-Davidson has Feb. 2, 2021 Conference Call Slide Presentation long been associated with igniting desirability - it’s in our DNA. 15 15
Slide 16: Our Desirability Ambition
Our desirability ambition Design, engineer and advance the most desirable motorcycles in the world Harley-Davidson Build a lifestyle brand, valued for the as the most emotion it evokes desirable Feb. 2, 2021 Conference Call Slide Presentation motorcycle brand in the world Focus on our customers and
Slide 17: Desirability Goes Beyond Bikes
Desirability goes beyond Parts Go to market Marketplace bikes Accessories Feb. 2, 2021 Conference Call Slide Presentation Marketing General Merchandise Community HDFS Brand 17
Slide 18: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 19: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 20: The World's Largest Profit Pool
Largest profit pool The world’s most desirable motorcycle Industry best segments margins Feb. 2, 2021 Conference Call Slide Presentation Touring, Leading share large Cruiser and Trike position 20
Slide 21: Steady Aggregate Demand in Stronghold Segments
# of U.S. H-D Touring, Large Cruiser and Trike New and Used Purchases Steady aggregate demand in our stronghold segments Feb. 2, 2021 Conference Call Slide Presentation Data depicted is generalized for illustrative purposes Source: Total demand based on Used and New vehicles data in the U.S. Used vo
Slide 22: Focus Leads to Growth
Inspiring our loyal customers to engage again and again Focus leads to growth Feb. 2, 2021 Conference Call Slide Presentation Compelling new riders to choose Harley-Davidson 22
Slide 23: Investing in the Products that Fuel the Company
fuel the company products that Investing in the 23 Feb. 2, 2021 Conference Call Slide Presentation
Slide 24: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 25: Selectively Expanding into Attractive and Profitable Segments
where we have a clear path to leadership Selectively expanding into… Feb. 2, 2021 Conference Call Slide Presentation Attractive and profitable segments 25 25
Slide 26: Pan America: Our First Adventure Touring Motorcycle
Pan America™ – our first Adventure Touring motorcycle Feb. 2, 2021 Conference Call Slide Presentation 26 26
Slide 27: Expand Cruiser Segment
Cruiser Expand segment within the 27 Feb. 2, 2021 Conference Call Slide Presentation 27
Slide 28: Focusing on Markets and Redefinition Opportunities
Focusing on markets and redefinition opportunities that drive growth Feb. 2, 2021 Conference Call Slide Presentation Highest priority 2828
Slide 29: A Streamlined Product Portfolio
Product A streamlined product portfolio for more focused investment Optimizing Supply, inventory and demand Deliberate management of supply, inventory and our choices demand dynamics and rational use of promotions Optimized operations Feb. 2, 2021 Conference Call Slide Presentation Supply chain that
Slide 30: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 31: Lead in Electric Motorcycles
Lead in Electric Motorcycles Feb. 2, 2021 Conference Call Slide Presentation 31 31 1.2.21 Investor Call Presentation
Slide 32: Invest in Electric Motorcycles
The most desirable electric motorcycles in the world Invest in Electric Motorcycles Feb. 2, 2021 Conference Call Slide Presentation 32 32
Slide 33: Dedicated Focus on Electric
Division and leadership team Dedicated dedicated to leadership in EV focus on electric Distinct product and go-to- market strategies Feb. 2, 2021 Conference Call Slide Presentation Speed and agility in decision- making and execution 1.2.21 Investor Call Presentation 33
Slide 34: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 35: Growth in Complementary Businesses
Growth in complementary businesses 35 35
Slide 36: Parts & Accessories, General Merchandise, HDFS
Parts & Accessories Inspiring personal expression and engaging customers throughout ownership Each business plays a role in General Merchandise our overall Building brand commitment globally vision and Feb. 2, 2021 Conference Call Slide Presentation mission HDFS Enabling the pursuit of adventure for
Slide 37: Expanding Beyond Product
Expanding beyond product Content Feb. 2, 2021 Conference Call Slide Presentation Experiences Marketplace 37 1.2.21 Investor Call Presentation
Slide 38: Dealer Partners Key in Delivering Our Future
…with dealer partners key in delivering our future Feb. 2, 2021 Conference Call Slide Presentation 1.2.21 Investor Call1.2.21 Presentation 38 38 Investor Call Presentation
Slide 39: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 40: Our Customers Are Riders and Non-Riders
Feb. 2, 2021 Conference Call Slide Presentation Our customers are riders and non-riders 1.2.21 Investor Call Presentation 40 40
Slide 41: Diverse Customer Segmentation and Opportunity
COMPEL NEW CUSTOMERS RE-INSPIRE EXISTING CUSTOMERS Opportunity Segment 3 across the customer lifecycle Segment 1 Diverse customer Feb. 2, 2021 Conference Call Slide Presentation segmentation Segment 4 Segment 2 Segment 5 41 41
Slide 42: Tailoring Each Step of the Journey
VISIT RESEARCH Tailoring PURCHASE each step of the journey LICENSE & RIDE Feb. 2, 2021 Conference Call Slide Presentation SPARK COMMUNITY EXPERIENCE SERVICE 1.2.21 Investor Call Presentation 42
Slide 43: Engaging Customers in New Ways
new ways customers in Engaging with 43 43 Feb. 2, 2021 Conference Call Slide Presentation
Slide 44: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 45: Inclusive Stakeholder Management
Inclusive Stakeholder People Management Inclusive, engaging and diverse; further enhancing H-D#1 culture Creating and Planet Our role in sustaining the planet; optimizing path to net zero environmental value for all Feb. 2, 2021 Conference Call Slide Presentation impact while delivering on our stake
Slide 46: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 47: The Hardwire 2021-2025 Long-term Financial Targets
The Hardwire 2021-2025 Long-term financial Mid single-digit Steady Double-digit growth improvement growth targets Revenue Operating Margin Operating Income Motorcycles Segment Financial Services Segment Motorcycles Segment Feb. 2, 2021 Conference Call Slide Presentation $190M - $250M Low double-digi
Slide 48: Long-term Profit Drivers
Long-term Motorcycles Segment Operating Margin profit drivers Percent of Revenue Feb. 2, 2021 Conference Call Slide Presentation 1 Data depicted is generalized for illustrative purposes 1 Mix includes motorcycle model mix and motorcycle geographic mix 48
Slide 49: Cash Allocation
Cash First Priority: Second Priority: allocation Reward Fund growth shareholders and invest in through The Hardwire Dividends Feb. 2, 2021 Conference Call Slide Presentation 49
Slide 50: 2021 Guidance
2021 2021 Guidance 20% - 25% Growth 5% - 7% Revenue Operating Margin Motorcycles Segment Motorcycles Segment 10% - 15% Growth $190M – $220M Operating Income Capital Spending Financial Services Segment Feb. 2, 2021 Conference Call Slide Presentation 50 50
Slide 51: The Hardwire Strategic Priorities
1 Profit focus 2 Selective 3 Lead in The Hardwire Investing in our expansion and electric Strategic strongest redefinition Investing in Priorities motorcycle To win in leading the segments attractive electric Harley-Davidson as motorcycle motorcycle the most desirable segments market motorcycle bran
Slide 52: Non-GAAP Measures
Non- This presentation includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting GAAP principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures listed below are intended to be considered by users as sup
Slide 53: Reconciliation of GAAP to Non-GAAP Amounts
Non- GAAP RECONCILIATION OF GAAP TO NON-GAAP AMOUNTS Measures This presentation contains non-GAAP measures related to net income and diluted earnings per share that exclude restructuring plan costs and the impact of tariffs. Reconciliations of GAAP amounts to non-GAAP amounts are included below. ($
Slide 54: Cautionary Note Regarding 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 of 1995. These forward-look