Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Shareholder Meeting (April 2012)
28 slides from Polaris's shareholder meeting presentation, Apr 26, 2012
Slide 1: Polaris Industries Inc. 2012 Annual Meeting
Polaris Industries Inc. April 26, 2012 2012 Annual Meeting
Slide 2: Gregory R. Palen, Chairman of the Board
2 2012 Annual Meeting Gregory R. Palen Chairman of the Board of Directors APRIL 2012
Slide 3: Polaris Industries Inc. 2012 Annual Meeting
Polaris Industries Inc. April 26, 2012 2012 Annual Meeting
Slide 4: Scott W. Wine, Chief Executive Officer
4 2012 Annual Meeting Scott W. Wine Chief Executive Officer APRIL 2012
Slide 5: Polaris at a Glance
Canada 14% International 16% United States 70% 5 4/26/12 Manufacturer of high-performance motorized products Strong distribution channel 1,500 dealers in North America 1,000 dealers Internationally Productive non-union workforce 4,300 strong Stakeholder focus Product innovation for customers Profit
Slide 6: Guiding Principles & Priorities
Guiding Principles Best People, Best Team Safety & Ethics Always Customer Loyalty Performance Priorities Growth Margin Expansion Product & Quality Leadership Operational Excellence Guiding Principles & Priorities 6 4/26/12 Winning the Right Way– Everyday, Always
Slide 7: Q1 2012 Sales and Net Income
7 4/26/12 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 Up 25% $673.8 $537.2 Record First Quarter Sales, Net Income and EPS Sales growth and share gains outpacing encouragingly healthy end markets ORV, On-Road,
Slide 8: Strong Margin Expansion: Gross Profit Margins Up 610 bps
Strong Margin Expansion 22.8% 27.3% 27.7% 26.1% 28.9% Q4‐'08 Q1‐'09 Q2‐'09 Q3‐'09 Q4‐'09 Q1‐'10 Q2‐'10 Q3‐'10 Q4‐'10 Q1‐'11 Q2‐'11 Q3‐'11 Q4‐'11 Q1‐'12 Stock Price Net Income Margin Gross Profit Margin 8.6% 8.9% 4/26/12 8 Gross Profit Margins Up 610 bps Through 2011
Slide 9: Strong Margin Expansion: Net Income Margins Up 260 bps
Strong Margin Expansion 6.0% 6.5% 7.4% 22.8% 27.3% 27.7% 26.1% 28.9% Q4‐'08 Q1‐'09 Q2‐'09 Q3‐'09 Q4‐'09 Q1‐'10 Q2‐'10 Q3‐'10 Q4‐'10 Q1‐'11 Q2‐'11 Q3‐'11 Q4‐'11 Q1‐'12 Stock Price YTD Net Income Margin Gross Profit Margin 8.6% 8.9% 4/26/12 9 Net Income Margins Up 260 bps
Slide 10: Very Strong Shareholder Return
Strong Margin Expansion $14.33 $21.82 $39.01 6.0% 6.5% 7.4% 22.8% 27.3% 27.7% 26.1% 28.9% Q4‐'08 Q1‐'09 Q2‐'09 Q3‐'09 Q4‐'09 Q1‐'10 Q2‐'10 Q3‐'10 Q4‐'10 Q1‐'11 Q2‐'11 Q3‐'11 Q4‐'11 Q1‐'12 Stock Price YTD Net Income Margin Gross Profit Margin $55.98 $80.63 Very Strong Shareholder Return 4/26/12 10 8.
Slide 11: Five Year Cumulative Total Shareholder Return
Total Return Comparisons (Dividend Yield included) 11 APRIL 2012 Five Year Cumulative Total Shareholder Return April 20, 2007 – April 20, 2012 Stock Price at Another All-Time High in April 2012 Peer Average: ACAT, BC, DE, HOG, TTC, WGO +256% +11% -7% +1% +30% Polaris Industries Russell 2000 S&P 500
Slide 12: R&D Investment Fuels Innovation & Growth
Research & Development $73.6 $77.5 $63.0 $84.9 $105.6 $30.5 4.1% 4.0% 4.0% 4.3% 4.0% 4.5% 2007 2008 2009 2010 2011 Q1'12 R&D $ % Sales R&D Investment Fuels Innovation & Growth 4/26/12 12 2012 First Quarter (millions)
Slide 13: Product Innovation Remains a Competitive Advantage
13 4/26/12 Product Innovation Off-Road Vehicles 7 New MY’12 (34 Models) Snowmobiles 10 New MY’13 (29 Models) On-Road Vehicles – Motorcycles 6 New MY’12, 1 MY’13 (15 Models) Innovation Vitality Index % Contribution to Sales of Vehicles Introduced in Past 3 Years 450 experienced engineers $106 million
Slide 14: N.A. Powersports: #1 OEM
N.A. Powersports 14 4/26/12 #1 N.A. Powersports OEM 2005 2006 2007 2008 2009 2010 2011 Consolidated Market Share (Using Total Motorcycle Industry) Honda Polaris Harley Davidson Yamaha Kawasaki Can Am / Ski Doo Suzuki Arctic Cat Deere Kubota KTM BMW Piaggio Triumph Ducati Other
Slide 15: Clear, Consistent Strategy
15 IR FEB2012 Strategic Objectives Best in Powersports PLUS 5-8% annual organic growth Growth through Adjacencies $1B - $2B from acquisitions and new markets Global Market Leadership >33% of Polaris revenue Operations is Competitive Advantage Op Ex drives > 200 bps operating margin improvement Stron
Slide 16: Off-Road Vehicles
2009 2010 2011 FY 2012 Guidance SXS SXS SXS SXS ATV ATV ATV ATV (Millions) 4/26/12 16 Polaris Sales (in millions) Polaris N.A. ORV Market Share Gained Share in Side-by-Sides and ATVs Again NOTE: Side-by-side market share data is estimated +32% $1,823 Up low double digits % Clear #1 market leader in
Slide 17: Snowmobiles
4/26/12 Best in Powersports Plus Snowmobiles Snowmobiles Polaris Sales (in millions) Market Share Growth Continues 600 PRO-RMK 155 600 INDY® SP Polaris #2 – strong market share gains for the season Dealer inventory up, but manageable Introduced 10 new MY’13 snowmobiles 417 lb PRO-RMK & 600 INDY® N.A
Slide 18: On-Road Vehicles: Motorcycles
2009 2010 2011 FY 2012 Guidance $53 $82 +79% $146 (Millions) 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 Q
Slide 19: Indian Motorcycles: Iconic Brand Being Restored
Future Products 98% Current Products 2% America’s first motorcycle brand, circa 1901 Won inaugural Daytona 200 in 1937 Supplied more bikes than all others combined in WWII Customer awareness, desire validated by focus groups New apparel ready for late summer launch New designs modeled, development o
Slide 20: Parts, Garments & Accessories
2009 2010 2011 FY 2012 Guidance $313 $344 +19% $408 (Millions) 20 Best in Powersports Plus PG&A Grow similar % to the overall Company Maintain High Quality By Business Unit By Product Category Off-Road Vehicles 70% On-Road Vehicles 7% Other 7% Snow 16% Accessories 49% Parts 47% Apparel 4% 180+ new s
Slide 21: Growth Through Adjacencies: Bobcat and Military
2010 2011 FY 2012 21 4/26/12 Growth Through Adjacencies RANGER RZR – SW Q1 Bobcat retail sales increased upper single digits % Co-development project on plan Dealer inventories at reasonable levels 2010 2011 FY 2012 Bobcat Military Foundation in Place for Meaningful Growth Military Bobcat Strategic
Slide 22: Growth Through Adjacencies: GEM and Goupil Integration
22 APRIL 2012 Successfully moved production to Iowa Completed headquarters transition to Minneapolis Expect to be neutral to income in 2012 Sales in Q1 2012 grew over last year on a comparable basis Market leader in fast growing European commercial electric vehicles segment Sales growth ahead of pla
Slide 23: Global Market Leadership: International
2009 2010 2011 FY 2012 Guidance $252 $306 +39% $424 (Millions) 23 4/26/12 Global Market Leadership International 16% of 2011 Total Company Sales Profitable global growth of 20% in Q1 2012 On-Road / Victory sales up over 100% ORV up 15% Increased market share – clear leader in Europe Up mid-double di
Slide 24: Operations is Competitive Advantage
24 4/26/12 Manufacturing realignment: excellent execution Four Centers of Excellence: Roseau, MN; Spirit Lake, IA; Osceola, WI; Monterrey, Mexico Flexible workforce successfully managed significant volume swings Shipments down 29% in 2009 , volume up 59% in past two years Three acquisition integrati
Slide 25: Full Year 2012 Guidance
25 4/26/12 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 Aggressive investments in Growth New Products, New Markets & New Businesses Commodity pressure
Slide 26: Safe Harbor
26 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 st
Slide 27: Thank you. Questions?
27 Thank you. Questions? 4/26/12
Slide 28: Polaris Industries Inc. 2012 Annual Meeting
Polaris Industries Inc. April 26, 2012 2012 Annual Meeting
Polaris Industries — Shareholder Meeting (April 2012) on 6ix