Slide 1: Q1 2021 Business Update
Q1 2021 BUSINESS UPDATE April 20, 2021
Slide 2: Business Update Conference Call
Business Update Conference Call 2021 Financial Results & Strategic Plan Review This presentation supports the audio call. The audio playback for today’s call will be available at Harley‐ Davidson.com, or call (855) 859‐2056 or (404) 537‐3406 until May 4th, 2021. ID 8872368. CALL PARTICIPANTS Joche
Slide 3: Q1 2021 Consolidated Results
Q1 2021 Consolidated – Motorcycles and Related Products and Financial Services Segments Results vs. Motorcycles Financial Svcs Prior Year Total HDI Segment Segment Revenue $1,423M $1,232M $190M % vs. PY 10% 12% (4%) Operating Income $346M $228M $119M % vs. PY 222% 169% 417% Net Income $259M April 20
Slide 4: Motorcycles Segment: Retail Sales and Inventory
Worldwide Retail Sales H‐D NEW RETAIL MOTORCYCLE SALES WORLDWIDE H‐D NEW RETAIL MOTORCYCLE and vs. Prior Year DEALER QUARTER END INVENTORY (thousands) Inventory Q1 Motorcycles and Related Products Segment Worldwide Retail Sales 9% RETAIL SALES North America 30% INVENTORY UNITS EMEA (36%) Asia Pacifi
Slide 5: Motorcycles Segment Revenue Growth
Growth Q1 Revenue +3 pts +1 pts +6 pts +2 pts Total Motorcycles Segment Revenue Growth 5 April 20, 2021 Conference Call Slide Presentation Motorcycles and Related Products Segment
Slide 6: Motorcycles Segment Margins
Q1 Gross Margin as % of Revenue Operating Margin as % of Revenue Motorcycles Segment Margins Motorcycles and Related Products Segment April 20, 2021 Conference Call Slide Presentation Q1 gross and operating margins were up versus prior year driven by stronger volume, improved mix, lapping of heavier
Slide 7: Financial Services Segment Operating Income
Financial Services OPERATING INCOME Segment FINANCIAL SERVICES SEGMENT ($ millions) Q1 Financial Services Segment 2020 Operating Income $23 Net Interest Income ($13) Provision for Loan Losses (retail & wholesale) $102 Operating Expenses1 $5 All Other $2 April 20, 2021 Conference Call Slide Presentat
Slide 8: Financial Services Segment Originations and Market Share
Financial Services Segment Total New and Used Retail Motorcycle Loan Market Share: Total U.S. H‐D New Originations Motorcyle Sales Financed (millions) $769 Financial Services Segment ($ millions) $611 64.3% 63.5% April 20, 2021 Conference Call Slide Presentation Q1 Q1 2020 2021 2020 2021 8
Slide 9: HDFS Retail Motorcycle Loan Performance
Financial HDFS RETAIL MOTORCYCLE LOAN PERFORMANCE Services Segment Q1 30+ Day Delinquencies 4% 3 .73% 3 .31% 3 .37% 3 .17% Financial Services Segment 3% 2 .88% 1 2 .14% 2% '16 '17 '18 '19 '20 '21 Annualized Q1 Loss Experience April 20, 2021 Conference Call Slide Presentation 3% 2 .73% 2 .31% 2 .22%
Slide 10: H-D, Inc. Cash Flow and Q1 Financial Metrics
H‐D, Inc. Consolidated – Motorcycles and Related Products and Financial Services Segments Q1 Operating Cash Flow Other H-D, Inc. Q1 Financial Metrics (millions) • Capital expenditures - $19M 1 • Cash & cash equivalents – $2.3B • Dividends paid - $23M • Effective tax rate – 24 % April 20, 2021 Confer
Slide 11: 2021 Guidance
2021 2021 Operating Margin Guidance Revenue Growth Motorcycles Segment (as of 4/19/21) Motorcycles Segment 7% ‐ 9% 5% ‐ 7% 30% ‐ 35% Assuming the company is able to mitigate Assuming the company is not able to mitigate additional EU tariffs additional EU tariffs to any extent 1 Operating Income Grow
Slide 12: Motorcycles Revenue and Operating Margin Phasing
Expected Motorcycles Seasonality and model year launch timing impacting phasing of revenue & margin Segment Revenue & ~60% Op Margin Motorcycles and Related Products Segment Phasing ~40% Mid-Teens April 20, 2021 Conference Call Slide Presentation Essentially flat 1 2 1 Expected results 2 Expected re
Slide 13: Vision, Mission and Culture
Building our legend and leading our Our industry through innovation, evolution and Vision, vision emotion Mission & Culture More than building machines, we stand Our for the timeless pursuit of adventure. Freedom for the soul. mission April 20, 2021 Conference Call Slide Presentation Our H‐D#1 ‐ Com
Slide 14: 2020 Results of the Rewire
2020 RESULTS OF THE REWIRE Rewire Reduced complexity and increased speed Actions New operating model and organizational structure across every function to provide simplicity, agility and efficiency Reset global business Resourcing and prioritizing the markets with the highest potential Expanded
Slide 15: April 20, 2021 Conference Call Slide Presentation
15 April 20, 2021 Conference Call Slide Presentation
Slide 16: Desirability
Desirability A motivating force driven by emotion – it’s in our DNA. April 20, 2021 Conference Call Slide Presentation Embedded in our vision, at the heart of our mission, part of our 118‐year legacy. 16 16
Slide 17: Our Strategic Ambition
Our strategic ambition Design, engineer and advance the most desirable motorcycles in the world, reflected in quality, innovation and craftsmanship. Harley‐Davidson as the most desirable motorcycle brand in Build a lifestyle brand, valued for the emotion reflected in every product and experience for
Slide 18: Profit Focus: Icons Collection
Profit Focus: Icons LAUNCHING Collection APRIL 2021 April 20, 2021 Conference Call Slide Presentation SERIALIZED LIMITED EDITION 18 18
Slide 19: Pan America: Our First Adventure Touring Motorcycle
Pan America™ – our first Adventure Touring motorcycle April 20, 2021 Conference Call Slide Presentation 19 19
Slide 20: Selective Expansion: Pan America Reveal
Selective Expansion: Pan America™ Reveal VIRTUAL LAUNCH ~ 360,000 PARTICIPANTS April 20, 2021 Conference Call Slide Presentation 20
Slide 21: Selective Expansion: Pan America Media Highlights
Selective Expansion: Pan Is This Harley the BMW GS Killer? America™ The Pan America isn’t just one Media of the most advanced Harleys Highlights ever, it’s arguably one of the most advanced adventure bikes ever. April 20, 2021 Conference Call Slide Presentation It is to be expected that in Milwaukee
Slide 22: Expand within the Cruiser Segment
segment the Cruiser Expand within 22 April 20, 2021 Conference Call Slide Presentation 22
Slide 23: Invest in Electric Motorcycles
The most desirable electric motorcycles in the world Invest in Electric Motorcycles April 20, 2021 Conference Call Slide Presentation 23 23
Slide 24: Growth in Complementary Businesses
Growth in businesses complementary 24 24 April 20, 2021 Conference Call Slide Presentation
Slide 25: Parts & Accessories, General Merchandise, HDFS
Parts & Accessories Inspiring personal expression and engaging Each business customers throughout ownership plays an important role General Merchandise in our overall Building brand commitment globally vision and mission April 20, 2021 Conference Call Slide Presentation HDFS Enabling the pursuit of
Slide 26: H-D Bikes: Beyond Growth Certified
H‐D Bikes: Beyond Growth Certified™ 26 April 20, 2021 Conference Call Slide Presentation
Slide 27: Non-GAAP Measures
Non‐GAAP This presentation includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles Measures (GAAP) and are therefore referred to as non‐GAAP financial measures. The non‐GAAP measures listed below are intended to be considered by user
Slide 28: Reconciliation of GAAP to Non-GAAP Amounts
Non- GAAP RECONCILIATION OF GAAP TO NON‐GAAP AMOUNTS Measures This presentation contains non‐GAAP measures related to net income and diluted earnings per share that exclude restructuring plan costs. Reconciliations of GAAP amounts to non‐GAAP amounts are included below. ($ thousands, except per shar
Slide 29: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward‐Looking Statements 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 Reform Act of 1995. These forward‐look