Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Investor Presentation (March 2008)
18 slides from Polaris's investor presentation, Mar 3, 2008
Slide 1: March 3, 2008
March 3, 2008
Slide 2: Polaris Overview
ATV & Side-by-Side Vehicles Snowmobiles Victory Motorcycles PG&A 0.67 0.1 0.06 0.17 Polaris Overview Founded in 1954 Manufacturer of a diversified mix of high- quality, high-performance motorized products for recreational and utility use Manufacturing and distribution facilities located in Minnesota
Slide 3: Industry Overview
Industry Overview Worldwide Market Size and % change 2007 vs. 2006 Top Three Competitors Industry Drivers Polaris Competitive Advantage ATVs 970,000 units Down 11% Honda Yamaha Suzuki Overall economic conditions New products Industry-leading performance and features; full line of products Side-by-Si
Slide 4: Consistent Financial Performance
Consistent Financial Performance Dollars (in millions) Net Income Per Share from Continuing Operations 1998-2007 $3.28 to $3.40 Up 6% to 10% Sales from Continuing Operations 1998-2007 Up 3% to 5% * A reconciliation of the Company's calculation of cash flow provided to the most directly comparable ca
Slide 5: Consistent Financial Performance: Cash Flow Used to Fund...
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 East 57 61 62 53 52 59 89 90 53 64 65 West 2 North 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 East 14 40 38 52 40 49 76 73 67 132 308 103 West 38.6 34.6 31.6 North 46.9 45 43.9 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 6: Awesome Products...Customer Focused...Results Driven
Awesome Products...Customer Focused...Results Driven 1. Win in the Core Grow market share in snowmobiles and ATVs. Leverage PG&A and Financial Services to deliver superior total value. 2. Delivering Operational Excellence Industry-leading quality in every product line. > 5% productivity every year.
Slide 7: 1. Win in the Core... Improving Our ATV and Snowmobile Businesses
1. Win in the Core... Improving Our ATV and Snowmobile Businesses 2007 Results: Gained market share in all our businesses including core ATVs and snowmobiles Core ATVs and snowmobile dealer inventory was lower at yearend 2007 compared to 2006 More aggressive with advertising and sales promotions in
Slide 8: 1. Win in the Core... Leverage PG&A
Accessorized RANGER RZR Includes: Sport Roof Half Windshield Front & Back Brushguards Lock n' Ride Racks Cargo Box Parts Garments & Accessories Highest margin product line (40+% gross margins) Leveraging installed base Focused on hot new products Victory Vision(tm) Introduced 100 Victory Vision acce
Slide 9: 1. Win in the Core... Financial Services
Wholesale credit 31% 1st Qtr 3rd Qtr 4th Qtr East 7 62 31 West 30.6 34.6 31.6 North 45.9 45 43.9 Other Activities 7% Retail Financing (HSBC & GE Bank) 62% Financial Services Income by Category - 2007 67% ATV 1. Win in the Core... Financial Services Financial Services Income consists of wholesale flo
Slide 10: Financial Services - Retail Credit Financing
2005 2006 2007 2008 East 22.2 27.1 28.2 5 West 5 North Income from HSBC and GE Bank Retail Credit Agreements (millions) 1. Win in the Core... Financial Services - Retail Credit Financing Polaris has two providers for Retail Credit in the United States: GE Money Bank provides close-end installment co
Slide 11: 2. Delivering Operational Excellence...
2. Delivering Operational Excellence... Strengthen Our Lean Cost Competitive Edge Striving for a "Toyota-like" level of operational excellence through three principles: Quality, Cost and Speed 2010 Goals: Quality: Improve consumer satisfaction by 50% by 2010 Cost: Reduce system-wide cost by over 20%
Slide 12: 3. Grow $500 Million by 2009 - Victory Motorcycles
3. Grow $500 Million in our Growth Businesses by 2009 - Victory Motorcycles 2005 2006 2007 2008 Sales 99 113 113 116 5 Victory Sales 2007 Results: Entered new attractive segment - Luxury Touring - with two all new Vision models 2008 Objectives: Grow market share Penetrate the luxury touring market s
Slide 13: Industry Leading Side-by-Side Vehicles
Industry Leading Side-by-Side Vehicles 3. Grow $500 Million in our Growth Businesses by 2009 - Side-by-Side Vehicles Dominant SxS Line-Up RANGER RZR CREW 2007 Results: Aggressively Expanded RANGER(tm) in Utility Segment with the introduction of RANGER Crew(tm) Entered Emerging Recreation Segment wit
Slide 14: 3. Grow $500 Million by 2009 - International
Polaris Estimate 2007 Market - $1.9 Billion Estimated Market Size For Polaris Products Polaris Subsidiaries France Australia/NZ UK Sweden/Norway Finland Russia Germany Italy Spain Portugal Others Japan 1999 2005 2006 2007 2008 East 68 233 233 258 270 15 North 45.9 46.9 International Sales $233 Expan
Slide 15: 3. Grow $500 Million by 2009 - Military
3. Grow $500 Million in our Growth Businesses by 2009 - Military 2007 Results: Received largest contract in history, $18 million Increased investment Enhanced product plan (gasoline and JP8 fueled vehicles specifically designed for military applications) Sales doubled from 2006 2008 Objectives: Grow
Slide 16: Adjacent Markets
Adjacent Markets Profitable Top Line Growth Migrate Polaris into at least one Adjacent Market Prefer new customer base Prefer new distribution channel Growth could come in the following way(s): Organic Strategic Alliance Acquisition Expect to announce opportunity later in 2008 3. Grow $500 Million i
Slide 17: 2008 Year Guidance
2008 Year Guidance Full Year 2008 Full year 2008 earnings from continuing operations is expected to be in the range of $3.28 to $3.40 per diluted share, up 6% to 10% from $3.10 in 2007. Sales growth for full year 2008 is expected to be in a range of up 3% to 5% from 2007 sales of $1.78 billion. Sale
Slide 18: Appendix
Appendix Our presentation and responses to your questions may contain certain statements which may be considered forward looking for the purposes of the Private Securities Litigation Reform Act of 1995. We caution you that actual results could differ materially from those projected in a forward look
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