Polaris Inc. · NYSE:PII
Polaris — Polaris Industries — Raymond James Investor Conference 2018
27 slides from Polaris's conference presentation, Mar 6, 2018
Slide 1: Polaris Industries Inc. – Raymond James Investor Conference
POLARIS INDUSTRIES INC. Scott W. Wine, Chairman & CEO Raymond James Investor Conference March 6, 2018
Slide 2: VIDEO: Levi Lavallee Super Bowl Jump
VIDEO: Levi Lavallee Super Bowl Jump PII RJames 3/6/18 2
Slide 3: Polaris Industries Inc. – A Global Corporation
POLARIS INDUSTRIES INC. – A GLOBAL CORPORATION 1954 Year Polaris was Founded 2017 Sales* by Segment ~11,000 Employees Worldwide ORV/Snow Motorcycles 9% 17 Manufacturing Locations 11% 7% excl. Victory 66% 5 Research & Development Centers Adjacent 7% Markets ~1,800 Dealers In North America 16% ~1,400
Slide 4: North America Powersports Consolidated Market Share Leader
N.A. POWERSPORTS CONSOLIDATED MARKET SHARE Consolidated Market Share in Units Using Total Motorcycle Industry POWERSPORTS MARKET SHARE LEADER Honda Harley Yamaha Can Am Kawasaki Other 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CLEAR #1 IN N.A. POWERSPORTS PII RJames 3/6/18 4
Slide 5: Strong Track Record of Growth
STRONG TRACK RECORD OF GROWTH 2009 Sales 2017 Sales* ORGANIC GROWTH Off-Road Motorcycles Off-Road Vehicles/ Vehicles/ Motorcycles PLANT INVESTMENTS Snow 96% 4% Snow 66% 11% Global Adjacent 7% Markets INDIAN MOTORCYCLES BILLION BILLION 16% Aftermarket GLOBAL EXPANSION STRATEGIC ACQUISITIONS AFTERMARK
Slide 6: Strong Track Record of Growth: 2017 Sales
STRONG TRACK RECORD OF GROWTH 2017 Sales* $3.6B Off-Road Vehicles/ Snowmobiles Motorcycles 66% 11% Global Adjacent 7% Markets BILLION 16% Aftermarket $885M $574M $397M Off-Road Vehicles/ Motorcycles Global Adjacent Aftermarket Snowmobiles Markets *FY 2017 Sales results are adjusted; see Appendix for
Slide 7: Vision & Strategy
Vision & Strategy VISION Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high quality vehicles, products, services and experiences that enrich their lives. Strategic Objectives CG PG@LARIS STRATEGIC PURPOSE Polaris is committed to being a custom
Slide 8: Building a Customer-Centric, Highly Efficient Growth Company
2018 BUILDING A CUSTOMER-CENTRIC, HIGHLY EFFICIENT GROWTH COMPANY PII RJames 3/6/18 8
Slide 9: 2018 Guidance
2018 GUIDANCE GROWTH 2018 FULL YEAR GUIDANCE BY SEGMENT ($ in millions; PG&A sales included in each respective segment) Adjusted* Sales Guidance ORV/Snowmobiles Motorcycles Adjacent Markets Aftermarket $5.6 - $5.7 Billion 3%-5% low to mid-single $3,572 digits % high-single high-single digits % EFFIC
Slide 10: Off-Road Vehicles
OFF-ROAD VEHICLES ORV / Snowmobile Segment Sales* $ in billions; includes related PG&A Sales Up low to 9% mid-single $3.6B digits % $3.3B PG&A PG&A PG&A Snow Snow Snow ORV ORV ORV FY 2016 FY 2017 FY 2018 Reclassified(1) Guidance Key Strategies Drive Innovation Activate the Core Flawless Delivery / E
Slide 11: VIDEO: RZR XP Turbo S
VIDEO: RZR XP TURBO S 60 Sec. Video NEED MP4/WMV FILE Insert picture of Turbo S PII RJames 3/6/18 11
Slide 12: Snowmobiles
SNOWMOBILES ORV / Snowmobile Segment Sales* $ in billions; includes related PG&A Sales Up low to 9% mid-single $3.6B digits % $3.3B PG&A PG&A PG&A Snow Snow Snow ORV ORV ORV FY 2016 FY 2017 FY 2018 Reclassified(1) Guidance Key Strategies Win the Core Drive Innovation Create New Segments Remains One
Slide 13: Motorcycles
MOTORCYCLES Motorcycle Segment Sales* $ in millions; includes related PG&A Sales Up 18% high-single $699 ( 7% Excl. Victory) digits % $574 FY 2016 FY 2017 FY 2018 Reclassified(1) Adjusted* Guidance Key Strategies Drive Global Awareness Deliver On-going Innovation Margin Improvement On-going Sales &
Slide 14: Global Adjacent Markets (GAM)
GLOBAL ADJACENT MARKETS (GAM) GAM Segment Sales $ in millions; includes related PG&A Sales Up 16% mid-single $397 digits % $342 FY 2016 FY 2017 FY 2018 Guidance Key Strategies Capitalize on Emerging Trends Expand Products and Channels Drive Autonomous Capability Building on Strong Momentum PII RJame
Slide 15: Unforgettable ride and drive experiences nationwide
Unforgettable ride and drive experiences nationwide https://adventures.polaris.com/ PII RJames 3/6/18 15
Slide 16: Core Parts, Garments & Accessories (PG&A)
CORE PARTS, GARMENTS & ACCESSORIES (PG&A) Core PG&A Sales $ in millions Up 8% mid-single $784 digits % $727 FY 2016 FY 2017 FY 2018 Guidance Key Strategies Build on Growth Foundation 2017 Sales by Segment 2017 Sales by Category Snowmobiles E-commerce Acceleration ORV Accessories 6% 74% 50% 11% Motor
Slide 17: Aftermarket
AFTERMARKET Aftermarket Segment Sales $ in millions Up Significantly high-single digits % $885 $192 FY 2016 FY 2017 FY 2018 Reclassified(1) Guidance Transamerican Auto Parts Key Strategies Brand and Product Leadership Sales / Channel Optimization Other Aftermarket Brands Supply Chain Excellence TAP
Slide 18: International
INTERNATIONAL International Sales $ in millions; includes related PG&A Sales Up 2017 Sales by 11% mid-single Business $725 digits % $652 ORV/ Motorcycles Snow Adjacent Markets FY 2016 FY 2017 FY 2018 Guidance EMEA Latin Asia Amer. Pacific Key Strategies Grow ORV / Motorcycles Maximize Snow Leverage
Slide 19: 2018 Focus Areas
2018 FOCUS AREAS SAFETY & QUALITY Increased investments: safety, quality, advanced technology R&D expense up ~40% over 2 years (2017–2018E) DEALER & CUSTOMER EXCELLENCE Improved order visibility and product availability Industry-leading buying and owning experience PRODUCTIVITY POWERHOUSE Improved p
Slide 20: Multi-Year Strategic Sourcing Transformation
MULTI-YEAR STRATEGIC SOURCING TRANSFORMATION COST SAVINGS TARGET Partnering with an experienced global sourcing consulting firm >$200 Million (annual gross savings) Fully resourced for success – over 60 people re-allocated to project Proven 11 gate sourcing process; 4 Waves over strategic period Wav
Slide 21: Summary
SUMMARY New product launches accelerating; 8 in past six months ORV – Playing Offense Indian – winning in the market and on the track PG&A + TAP + Aftermarket = $1.7B – sizable foundation for growth International – leveraging momentum Safety, Quality, Dealer/Consumer Excellence Improved A Customer-c
Slide 22: Safe Harbor & Non-GAAP Measures
SAFE HARBOR & NON-GAAP MEASURES Except for historical information contained herein, the matters set forth in this presentation, including management’s expectations regarding 2018 future sales, shipments, net income, and net income per share, operational initiatives and impact of tax reform are forwa
Slide 23: Questions?
POLARIS INDUSTRIES INC. Raymond James Investor Conference March 6, 2018 QUESTIONS?
Slide 24: Appendix
POLARIS INDUSTRIES INC. Raymond James Investor Conference March 6, 2018 APPENDIX
Slide 25: Appendix: Non-GAAP Reconciliations
APPENDIX: NON-GAAP RECONCILIATIONS Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results (In Thousands, except per share data; Unaudited) Three months ended December 31, Years ended December 31, Key Definitions: Throughout this presentation, the word 2017 2016 2017 2016 Sales $ 1,
Slide 26: Appendix: Non-GAAP Reconciliations - Segments
APPENDIX: NON-GAAP RECONCILIATIONS - SEGMENTS Non-GAAP Reconciliation of Segment Results (In Thousands; Unaudited) Three months ended December 31, Years ended December 31, Three months ended December 31, Years ended December 31, 2017 2016 2017 2016 2017 2016 2017 2016 SEGMENT SALES SEGMENT GROSS PRO
Slide 27: Appendix: 2018 Guidance Disclosures
APPENDIX: 2018 GUIDANCE DISCLOSURES 2018 guidance excludes the pre-tax effect of acquisition integration costs of approx. $10 million, supply chain transformation costs of approx. $10 million to $20 million and the remaining impacts associated with the Victory wind down which is estimated to be in t
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