Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Investor Presentation (May 2011)
23 slides from Polaris's investor presentation, May 12, 2011
Slide 1: Polaris Industries Inc. May 2011
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Slide 2: Polaris at a Glance
Slide: 2 2010 Sales by Product 2010 Sales by Geography Title: Polaris at a Glance Off-Road Vehicles (ORV) 69% On-RoadVehicles 4% Snowmobiles 10% Parts Garments & Accessories 17% ATVs Side-by-Sides Manufacturer of high-performance motorized products Strong distribution channel1,600 dealers in North A
Slide 3: Excellent Start to 2011
Slide: 3 Excellent Start to 2011 Powersports momentum continuesRanger & RZR performance is strongSnow share gains and orders point to significant sales and profit growthVictory global growth plans on trackManufacturing realignment on planMonterrey Ranger production began in early April; engine produ
Slide 4: Recent Polaris Performance
Slide: 4 Recent Polaris Performance Return on Invested Capital FY Sales $101.0 $147.1 $1,566 $1,991 FY 2010 FY 2009 Solid Execution = Strong Performance Total Return to InvestorsMay 6, 2009 to May 6, 2011 FY Net Income FY 2010 FY 2009 +27% +46% (Gp:) PII Peer Average (ACAT, BC, DE, HOG, WGO, TTC) S&
Slide 5: Record First Quarter Sales, Net Income and EPS
Slide: 5 Q1 2011 Sales and Net Income Q1 Net Income ($ in millions) Q1 Sales ($ in millions) $19.8 $47.3 +139% $361.7 $537.2 +49% Q1 2011 Q1 2010 Q1 2011 Q1 2010 Record first quarter sales and net incomeRecord first quarter earnings per share of $1.34, up 127% over Q1 2010Gross margins improved 210
Slide 6: 2011 Sales & EPS Projections Raised
Slide: 6 Total Company Sales (in millions) Diluted EPS Full Year 2011 Guidance Other Placeholder: 6 $1,991 Up 17% to 20%$2,330 to $2,390 2010 Actual 2011 Guidance $4.28 Up 29% to 33% $5.53 to $5.68 2010 Actual 2011 Guidance Retail sales growth continues to out distance the industryNet income dollars
Slide 7: Strategic Objectives
Slide: 7 Strategic Objectives $1.99 Billion $3.0 Billion Grow Sales $3 Billion by 2014 7.4% >8.0% Expand net income margins>8% of sales by 2014 Clear, Consistent Strategy 7 2014 Goal 2010 Actual 2014 Goal 2010 Actual May 2011
Slide 8: Business Unit Summary
Slide: 8 Off-Road VehiclesDivision Business Unit Summary Snowmobile Division On-Road Vehicles Division: Victory/LEV Polaris Sales (in millions) Polaris Sales (in millions) Polaris Sales (in millions) #1 in ORV - gained significant share in SxS and ATVs againNew Ranger XP900 selling well Int’l sales
Slide 9: Business Unit Summary: International, Adjacencies, Military
Slide: 9 Business Unit Summary International Adjacencies Polaris Sales (in millions) Military Profitable global growth of 21% Side-by-Side sales up over 50%On-Road / Victory sales up 59%Clear ORV market share leader in Europe Shipped initial vehicles under $67M National Guard contract in Q1Received
Slide 10: Product Innovation Remains a Competitive Advantage
Slide: 10 Product Innovation 370 experienced engineers $85 million R&D spend in 2010 Over 30 new models introduced in 20109 new snowmobiles models for MY 2012 Switchback Adventure 600 (Mar ‘11) 59% 60% 60% 69% 71% Product Innovation Remains a Competitive Advantage 2006 2008 2009 2010 2007 % Contribu
Slide 11: Acquisition – Indian Motorcycle Company
Slide: 11 Acquisition – Indian Motorcycle Company Storied history and distinguished heritage: First US motorcycle company, founded 1901 Strong, recognizable American brand First major OEM owner in 70 years Distinct styling and appeal Strategic Fit With Victory and Indian, Polaris will: Appeal to 60%
Slide 12: Acquisition – Global Electric Motorcars (GEM)
Slide: 12 Acquisition – Global Electric Motorcars (GEM) Market leader in multi-purpose low-speed neighborhood electric vehicles45,000 vehicles sold since 1998Established brand and dealer network: 126 dealers, including 18 international2010 Sales: ~$30 million GEM Overview GEM provides Polaris with:R
Slide 13: Manufacturing Realignment
Slide: 13 Manufacturing Realignment Monterrey building is complete on-time and on budget; 100% occupancyProduction of RANGER product began in April; shipments to begin in Q2Osceola transition progressingSold in-place stamping operations and outsourced seat manufacturing transitioning wellSnowmobile
Slide 14: Manufacturing Realignment Remains on Plan
Slide: 14 Manufacturing Realignment Costs and savings projections unchanged Majority of costs incurred through 1st half of 2011Savings begin in 2H 2011 Manufacturing Realignment Remains on Plan Cost Charged to P&L (in millions) Aus/NZ 13% Capital Expenditures (in millions) Savings (in millions) Anti
Slide 15: Key Focus Areas
Slide: 15 Key Focus Areas Relentless ExecutionManufacturing realignment & LEAN initiatives Acquisition integrationMake Growth HappenExtend Powersports share gains with innovation and value Expand adjacency and international growthStay AggressiveCompetition will increase, so must our focus & intensit
Slide 16: Thank you Questions
Slide: 16 Thank you Questions May 2011
Slide 17: Appendices
Slide: 17 Appendices 2011 Full Year GuidanceRevenue & N.A. Retail Sales – Q1 2011 Gross Margin Percentage Trends – Q1 2011Balance Sheet and Liquidity Profile – Q1 2011Management TeamSafe Harbor Statement May 2011
Slide 18: 2011 Full Year Revised Guidance
Slide: 18 2011 Full Year Revised Guidance Product Line Sales - Off-Road Vehicles - Snowmobiles - On-Road Vehicles - PG&A - InternationalTotal Company SalesGross MarginsOperating expensesIncome TaxesNet IncomeEPS, DilutedShare Count Upper teens %Up about 30%Up over 50%, againUp low teens %Up 15% to 2
Slide 19: Q1 2011 Revenue & N.A. Retail Sales Growth Remains Strong
Slide: 19 Q1 2011 Revenue & N.A. Retail Sales Growth Remains Strong Revenue (Million $) Polaris N.A. Retail Sales (Units) $361.7 $137.6 $3.4 $19.6 $14.9 $537.2 +13% +12% -4% +25% +49% Q1 side-by-side Retail Sales and Revenue again up significantlyPolaris Revenue and N.A. Retail Sales continue to out
Slide 20: Gross Profit Margin Percentage Trends
Slide: 20 Title: Gross Profit Margin Percentage Trends (Gp:) Improvement to gross profit margin % (Gp:) Impairment to gross profit margin % (Gp:) Neutral to gross profit margin % May 2011
Slide 21: Balance Sheet and Liquidity Profile
Slide: 21 Balance Sheet and Liquidity Profile Strong Financial Position May 2011
Slide 22: Management
Slide: 22 Management Scott Wine CEOJoined September, 2008 Bennett Morgan President & COO23 years at Polaris 5 Years as COO Michael Malone V.P. Finance & CFO26 years at Polaris 13 Years as CFO RECENT EVENTS New facility in Monterrey, Mexico expects to begin shipments to dealers in Q2 ‘11 Acquired Ind
Slide 23: Safe Harbor
Slide: 23 Safe Harbor Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2011 sales, shipments, net income, cash flow, and manufacturing realignment transition costs and savings, are forward-loo
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