Slide 1: HDFS Transaction Overview
HDFS Transaction Overview Friday, August 8 , 2025
Slide 2: HDFS Transaction – Key Highlights
HDFS TRANSACTION – KEY HIGHLIGHTS: 2 ▪ Our strategic partners have valued the HDFS business at approximately 1.75x post transaction book value ▪ HDFS has agreed to sell a 4.9% common equity interest to investment vehicles managed by KKR and PIMCO (9.8% total stake by strategic partners) ▪ HDFS plans
Slide 3: HDFS: Attractive Structure Achieves Our Objectives
HDFS: ATTRACTIVE STRUCTURE ACHIEVES OUR OBJECTIVES Transaction Outcomes H - D Transaction Objectives 1 3 1. Illustrate class - leading returns and premium valuation of HDFS as a driver of value for HOG shareholders 2. Deliver a value - enhancing long - term strategic partnership 3. Secure long - ter
Slide 4: Unlocking Value for Harley-Davidson
4 ▪ Reflects a post - transaction HDFS valuation at an attractive premium of ~1.75x Price/Book multiple ▪ Sale of existing retail finance receivables net of related HDFS debt reductions is expected to generate ~$1B of available cash and allow for ~$1.25B distribution to H - D from HDFS ▪ Intend to u
Slide 5: Strategic Partnership Overview
5 STRATEGIC PARTNERSHIP OVERVIEW • Over $5B of HDFS' retail finance receivables expected to be sold to strategic partners Amount Sold Sale of Existing Retail Receivables • ~2/3 of HDFS annual retail originations expected to be sold to strategic partners Annual Sale Target Sale of Future Retail Recei
Slide 6: Transaction Value Break-Down
6 Transaction Value Break - Down 1 Represents the amount of implied post - transaction equity value of HDFS, representing 100% ownership of HDFS. Sale of Retail Receivables Post - Transaction HDFS Enables cash distribution ~$1.25 Billion ~$0.5 Billion 1 Lower Capital Intensive and Higher Returning B
Slide 7: Equity Walk and Cash Distribution
EQUITY WALK AND CASH DISTRIBUTION 1 7 Book Value: $0.2bn $1.15bn $0.3bn $1.25bn $0.5bn ▪ Represents 100% of HDFS valuation at 1.75x post - money book value, including two 4.9% minority investments from strategic partners (9.8% total stake by strategic partners) Starting HDFS Equity Less: Expected HD
Slide 8: Post-Transaction Summary: HDFS New Capital-Light Business Profile
HDFS POST - TRANSACTION SUMMARY 8 HDFS – New Capital - Light Business Profile ▪ Post - transaction, HDFS is expected to remain well capitalized while strategic partnership materially reduces the capital intensity of HDFS ▪ Strategic partners agree to purchase existing retail receivables and ~2/3 of
Slide 9: Expected to Grow Asset-Light Operating Income Over Time at Significantly Higher ROE
HDFS EXPECTED TO GROW ASSET - LIGHT OPERATING INCOME OVER TIME AT SIGNIFICANTLY HIGHER ROE Expect significant reduction in HDFS equity vs. no transaction scenario along with long - term capital efficient operating income expected to drive HDFS ROE to nearly double current levels 9 Transaction Expect
Slide 10: Post-Transaction Business Mix
HDFS POST - TRANSACTION BUSINESS MIX 10 x New and used motorcycle loans to customers x H - D expects to retain 1/3 of retail originations post - transaction x Mix of spread and fee income Retail Post - Transaction Business Mix ▪ HDFS will continue with its product offering from before the transactio
Slide 11: Strategic Partners with Deep Expertise and Strong Track Record
STRATEGIC PARTNERS WITH DEEP EXPERTISE AND STRONG TRACK RECORD 11 Agreed to acquire part of the loan book from Goldman Sachs’ GreenSky platform, which offers point - of - sale lending solutions for merchants and consumers focused on home improvement Partner Overview Relevant Experience ▪ Established
Slide 12: Transaction Expected to Provide Cash for Strategic Capital Allocation
HDFS TRANSACTION EXPECTED TO PROVIDE CASH FOR STRATEGIC CAPITAL ALLOCATION 12 ▪ HDFS transaction is expected to generate ~$1B of available cash and allow for ~$1.25B distribution to H - D from HDFS ▪ Will support Harley - Davidson’s capital allocation priorities ▪ Cash is expected to be used for: $5
Slide 13: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward - Looking Statements 13 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 Refo
Slide 14: Forward Looking Statements Continued
FORWARD LOOKING STATEMENTS CONTINUED The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also d epe nds on the ability of the Company’s dealers to sell its motorcycles and related products and services to retail customers. Th e Compa