Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Q1 2012 Earnings Presentation
23 slides from Polaris's earnings presentation, Apr 18, 2012
Slide 1: Polaris Industries Inc. First Quarter 2012 Earnings Results
Polaris Industries Inc. April 18, 2012 First Quarter 2012 Earnings Results
Slide 2: Safe Harbor
2 Safe Harbor Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2012 sales, shipments, net income, cash flow, and manufacturing realignment transition costs and savings, are forward-looking sta
Slide 3: Scott Wine, CEO
Scott Wine, CEO April 18, 2012 First Quarter 2012 Earnings Results
Slide 4: Q1 2012 Sales and Net Income
4 APRIL 2012 Q1 2012 Sales and Net Income Q1 Net Income ($ in millions) Q1 Sales ($ in millions) $47.3 Up 27% $60.1 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Record 1st Quarter Sales and Net Income ORV Sales remained strong +30%; On-Road up 44% Earnings per Share up 27% to record $0.85 Operating Income dollar
Slide 5: Full Year 2012 Guidance
5 APRIL 2012 Full Year 2012 Guidance $2,657 Up 10% to 13% $2,925 to $3,000 2011 Actual 2012 Guidance $3.20 Up 20% to 25% $3.85 to $4.00 Retail sales growth and market share gains continue to outpace industry Growth investment continues; acquisition integration on plan Commodity pressures moderating;
Slide 6: Strategic Objectives
6 APRIL 2012 Strategic Objectives Best in Powersports PLUS 5-8% annual organic growth ORV retail sales & market share up solidly Victory retail growth & share gains continue Snow gained market share in down market Growth through Adjacencies $200 - $500M growth Military sales up significantly GEM & G
Slide 7: Bennett Morgan, President & COO
Bennett Morgan, President & COO April 18, 2012 First Quarter 2012 Earnings Results
Slide 8: Retail Sales & N.A. Dealer Inventory
Retail Sales & N.A. Dealer Inventory 8 APRIL 2012 8 Polaris Q1 N.A. retail sales up 17%, demand remains strong ORV and Motorcycle industries improving – retail up low double digits % in Q1 N.A. ATV industry grew in Q1 2012 Polaris N.A. dealer inventory up 9% from 2011 ATV dealer inventory down 5% fr
Slide 9: Off-Road Vehicles: #1 in ORV
#1 in ORV - Gained share in SxS and ATVs again New RANGER RZR® XP4 900 launched in January 2012 selling very well Dealer inventories up slightly from higher SxS shipments FY 2012 Guidance FY 2011 SXS SXS ATV ATV APRIL 2012 9 Best in Powersports Plus Off-Road Vehicles ORV Polaris Sales (in millions)
Slide 10: Growth Through Adjacencies
10 APRIL 2012 Growth Through Adjacencies RANGER RZR – SW Sales slightly lower in Q1 2012 – timing of shipments - full year expected to increase Q1 Bobcat retail sales increased upper single digits % Co-development project on plan Dealer inventories at reasonable levels FY 2011 FY 2012 Bobcat Militar
Slide 11: Snowmobiles
+48% $280.0 FY 2012 Guidance FY 2011 APRIL 2012 11 Best in Powersports Plus Snowmobiles Snowmobiles Polaris Sales (in millions) Market Share Continues to Grow $8.9 Down midsingle digits % -48% $4.6 Q1 2012 Q1 2011 600 Pro RMK 155 600 Indy SP N.A. Snowmobile Retail Sales Season-Ending March 31, 2012
Slide 12: On-Road Vehicles
12 New MY’13 Victory Judge™ Victory retail sales up about 40% in Q1; gained share Indian integration and product development on track Dealer inventories up modestly from new model year shipments New Victory Hard-Ball™ & Judge™ began shipping in Q1 GEM & Goupil unit sales growing; integration on trac
Slide 13: PG&A
13 Best in Powersports Plus PG&A $95.3 +5% $99.9 FY 2012 guidance FY 2011 Q1 2012 Q1 2011 +19% $408.2 Grow similar to the overall Company Maintain High Quality By Business Unit By Product Category APRIL 2012 Off-Road Vehicles 67% On-Road Vehicles 8% Other 6% Snow 19% Accessories 44% Parts 54% Appare
Slide 14: Global Market Leadership
EMEA +15% LATIN AMERICA +6% ASIA PACIFIC +59% CORPORATE HEADQUARTERS POLARIS INTERNATIONAL SUBSIDIARIES 14 APRIL 2012 Global Market Leadership Profitable global growth of 20% On-Road / Victory sales up over 100% ORV up 15% Increased ORV market share – clear leader in Europe Strong snow season and MY
Slide 15: Operational Excellence: Q1 2012 Margins
Q1 2011 Q1 2012 FY 2011 FY 2012 Guidance 15 Operational Excellence Q1 2012 Margins +0.6% -0.1% -0.2% -0.2% Gross Margin Operating Expense Other Non-Operating Expense Income Taxes/Other Q1 2011 Q1 2012 28.3% 28.9% 8.8% 8.9% +60 bps Gross margins remain strong driven by: Manufacturing realignment savi
Slide 16: Mike Malone, V.P. Finance & CFO
Mike Malone V.P. Finance & CFO April 18, 2012 First Quarter 2012 Earnings Results
Slide 17: 2012 Full Year Guidance
17 APRIL 2012 2012 Full Year Guidance Product Line Sales Off-Road Vehicles Snowmobiles On-Road Vehicles PG&A International Total Company Sales Gross Margins Operating expenses Income Taxes Net Income EPS, Diluted Share Count METRIC GUIDANCE Expect Another Record Year Up low double digits % Down mid-
Slide 18: Gross Profit Margin Percentage Trends
18 APRIL 2012 Gross Profit Margin Percentage Trends Actual Q1 2011 Actual Q1 2012 Full Year Guidance 2012 Prior Period 26.2% 28.3% 27.9% Production volume adjustments Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix Manufacturing realignment, net Warran
Slide 19: Manufacturing Realignment
19 Manufacturing Realignment Costs and savings projections largely unchanged Savings accelerating through 2012 Quality meeting or exceeding expectations Cost Charged to P&L (in millions) Anticipated Annualized savings upon completion FY 2012 anticipated savings Guidance $2 $34 Estimated Total Capita
Slide 20: Balance Sheet and Liquidity Profile
20 APRIL 2012 Balance Sheet and Liquidity Profile $ In millions (except per share and interest rate data) Q1 2012 Fav/(UnFav) Q1 2011 2012 Full Year Guidance Cash $285.9 ($60.0) Increase from 2011 Debt $108.1 $91.9 Unchanged Credit Facility $350.0 ($100.0) Renewed to 2016 Factory Inventory $314.0 ($
Slide 21: Scott Wine, CEO
Scott Wine, CEO April 18, 2012 First Quarter 2012 Earnings Results
Slide 22: Outlook and Closing Summary
22 APRIL 2012 End markets healthy and improving Industry-specific fundamental metrics are strongest in years On-Road and Off-Road Vehicles accelerating profitable global growth Snowmobile orders and market share gains point to stable 2012 Exploring opportunities to accelerate PG&A growth Wider econo
Slide 23: Thank you. Q&A
€> PoLARIs Thank you. Q&A ‘APRIL 2012