Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Investor Presentation (February 2012)
22 slides from Polaris's investor presentation, Feb 29, 2012
Slide 1: Polaris Industries Inc. February 2012 Investor Presentation
Polaris Industries Inc. February 2012 Investor Presentation
Slide 2: Polaris At a Glance
Canada 14% International16% United States 70% 2 IR FEB2012 Manufacturer of high-performance motorized products Strong distribution channel 1,500 dealers in North America 1,000 dealers Internationally Productive non-union workforce 4,400 strong Stakeholder focus Product innovation for customers Profi
Slide 3: Summary: 2011 Record Financial Results
3 IR FEB2012 Summary 2011 Record Financial Results Sales top $2B for 1st time, up 33% to record $2.66B Net Income up 55% to $228M; EPS up 50% to $3.20 Gross Margins up 130 bps to 27.9% Net Income Margins up 120 bps to 8.6% Expanded Global Reach Monterrey quickly becoming a world-class plant; >22k hi
Slide 4: Strategic Objectives
4 IR FEB2012 Strategic Objectives Best in Powersports PLUS 5-8% annual organic growth Growth through Adjacencies $200 -500M growth Global Market Leadership >25% of Polaris revenue Operations is Competitive Advantage Op Ex drives > 200 bps operating margin improvement Strong Financial Performance Sus
Slide 5: Best in PowersportsPlus: Off-Road Vehicles
#1 in ORV -Gained significant share in SxS and ATVs again New MY 2012 products well received New RANGER RZR® XP4 900 launched in January 2012 selling very well New RANGER RZR® 570 (50”) began shipping in Q4 2011 Bobcat vehicle retail strong Co-developed vehicle in final stages of development +32% $1
Slide 6: Best in PowersportsPlus: Snowmobiles, On-Road, PG&A
6 IR FEB2012 Best in PowersportsPlus Gaining market share season-to-date Clear #2 market share position Quality remains #1 focus area Victory retail up 22% in 2011 International unit retail sales up significantly again Integration of Indian Motorcycle, GEM and Goupilacquisitions on track FY 2012 Gui
Slide 7: Growth Through Adjacencies: Defense Business
7 IR FEB2012 Growth Through Adjacencies Armadillo –Unmanned MineRoller 2011 sales up over 100% Received $54 Million TACOM contract in 2011 Strong order backlog for 2012 Completed Department of Defense funded electric vehicle project in 2011 to support military bases FY 2010 FY 2011 FY 2012 Special O
Slide 8: Growth Through Adjacencies: GEM and Goupil
8 IR FEB2012 Market leader in the N.A. electric vehicle people mover segment Successfully moved production to Iowa Completed headquarters transition to Minneapolis Added 35 new dealers in 2H 2011 Expect to be slightly accretive in 2012 Market leader in fast growing European commercial electric vehic
Slide 9: Global Market Leadership
9 IR FEB2012 Global Market Leadership Profitable global growth of 39% On-Road / Victory sales up 67% ORV up 37% Remain clear ORV market share leader in Europe FY 2012 Guidance FY 2011 +39% $424.4 Up Low double digits % ON-ROAD 7% SNOW 14% ORV 64% PG&A15% 2011 Growth by Region 2011 International Sale
Slide 10: Operational Excellence
$3 $26 10 IR FEB2012 Operational Excellence FY 2010 FY 2011 2012 Guidance 26.6% +130 bps 27.9% +1.3% +0.8% 0.0% -0.9% Gross Margin Operating Expense Other Non-Operating Expense Income Taxes/ Other FY 2010 FY 2011 7.4% 8.6% Estimated Total Project Costs FY 2011Actual FY 2012 Guidance Project To-Date
Slide 11: Full Year 2012 Guidance
Total Company Sales (in millions) Diluted EPS 11 IR FEB2012 Full Year 2012 Guidance $2,657 Up 5% to 8% $2,800 to $2,875 2011 Actual 2012 Guidance $3.20 Up 14% to 19% $3.65 to $3.80 Retail sales growth and market share gains continue to outpace industry Growth investment continues; will be adapted to
Slide 12: Thank you. Questions?
Thank you. Questions? IR FEB2012 12
Slide 13: Appendices
13 IR FEB2012 Balance Sheet and Liquidity Profile Recent Polaris Performance 2012 Full Year Guidance Q4 2011 Sales and Net Income Gross Margin Percentage Trends ORV Customer Profile Product Innovation N.A. Dealer Inventory and Retail Sales Safe Harbor Statement Appendices
Slide 14: Balance Sheet and Liquidity Profile
14 IR FEB2012 Balance Sheet and Liquidity Profile $ In millions (except per share and interest rate data) Full Year 2011 Fav (Unfav) 2010 2012 Full Year Guidance Cash $325.3 ($68.6) Increase from 2011 Long Term Debt $100.0 $100.0 Unchanged Credit Facility $350.0 ($100.0) Renewed to 2016 Factory Inve
Slide 15: Recent Polaris Performance
15 IR FEB2012 Recent Polaris Performance Return on Invested Capital FY Sales 28% 26% 33% 42% 1% 0% 6% 12% 8% 7% 11% 12% 2008 2009 2010 2011 Total Return to Investors December 31, 2010 to December 31, 2011 S&P 500 Dow Jones Peer Group PII 0% 6% 1% 46% FY Net Income PII Peer Average (ACAT, BC, DE, HOG
Slide 16: 2012 Full Year Guidance
16 IR FEB2012 2012 Full Year Guidance Product Line Sales - Off-Road Vehicles - Snowmobiles - On-Road Vehicles - PG&A - International Total Company Sales Gross Margins Operating expenses Income Taxes Net Income EPS, Diluted Share Count Up mid-single digits % Down single digits % Up 30% - 40% Slightly
Slide 17: Q4 2011 Sales and Net Income
17 IR FEB2012 Q4 2011 Sales and Net Income Q4 Net Income ($ in millions) Q4 Sales ($ in millions) $54.5 Up 17% $63.9 Q4 2011 Q4 2010 Q4 2011 Q4 2010 Record 4th Quarter Sales and Net Income Execution improved to offset tougher comparables ORV Sales remained strong +18%; On-Road & Snow up >60% Earning
Slide 18: Gross Profit Margin Percentage Trends
18 IR FEB2012 Gross Profit Margin Percentage Trends Actual Q4 2011 Actual Full Year 2011 Full Year Guidance2012 Prior Period 27.7% 26.6% 27.9% Production volume adjustments Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix Manufacturing realignment, net
Slide 19: ORV Customer Profiles
19 IR FEB2012 ORV Customer Profiles RZR RANGER RANGER RZR Sportsman Farming/Ranching Rec/Trail Rec/Trail Property Hunt Farm Hunt Property Hunt Rec/Trail Property 70% 80% 48% ranger Primary Usage Incremental to Polaris (Did not consider any other Polaris products) RANGER = Mostly Work; RZR = Mostly P
Slide 20: Product Innovation
20 IR FEB2012 Product Innovation Off-Road Vehicles 6 New MY’12 (33 Models) Snowmobiles9 New MY’12 (29 Models) On-Road Vehicles -Motorcycles 5 New MY’12 (13 Models); 1 MY’13 Innovation Vitality Index % Contribution to Sales of Vehicles Introduced in Past 3 Years 450 experienced engineers $106 million
Slide 21: N.A. Dealer Inventory & Retail Sales
North American Polaris Dealer Inventory Levels 21 IR FEB2012 N.A. Dealer Inventory & Retail Sales 21 Q4 N.A. retail sales up 11%, FY 2011 up 14% – demand remains strong N.A. dealer inventory up 4% from 2010 ATV dealer inventory down 8% from 2010 Side-by-side inventory up due to continued strong reta
Slide 22: Safe Harbor Statement
22 IR FEB2012 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
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