POLARIS INDUSTRIES INC. ANALYST & INVESTOR MEETING. Motorcycles. Steve Menneto, VP Motorcycles July 30, 2013

Transcription

1 POLARIS INDUSTRIES INC. ANALYST & INVESTOR MEETING Motorcycles Steve Menneto, VP Motorcycles July 30, 2013

2 N.A cc Industry 2013 Industry Retail Industry Retail History Touring Cruiser Bagger E Cruiser Bagger Touring 2013 N.A cc Industry down -2% YTD Cruiser Industry up 2% YTD Bagger & Touring down 3% YTD Victory Flat to Industry 2

3 2013 N.A cc Competitive Summary Rank Manufacturer Strategy Share Trend 1 Harley Aspiration Brand Most Complete Product Line-up Huge Installed Owner Base 2 Victory Modern American Styling High Owner Satisfaction 3 Metrics Trusted Brands Breadth of Distribution Bases 4 Triumph Historical Brand Victory Holding Share In Soft Market Conditions 3

4 Victory Strategy 1. Strengthen Victory Brand 2. Frequent Product News 3. Lean Operations 4. International Sales Growth 5. Expand Global Distribution Presence 4

5 Strengthen Victory Brand Partnerships: MMA, Gunny, Sixx Sense Bold Store Branding: Store Upgrades Complete Merchandising standards New Apparel & Accessories: Core Range Seasonal Collection Consistent Brand Execution 5

6 Victory Product News Down $1,000 Down $3,000 Down $1,000 Cross Country 8-Ball MSRP: $17,999 Ness Cross Country MSRP: $22,999 High-Ball (cast wheels, headlight) MSRP: $13,499 Judge 2.0 (bars, pegs, seat, side cover) MSRP: $13,999 Down $2,000 Down $2,500 Cross Roads 8-Ball MSRP: $15,999 Jackpot MSRP: $15,999 High-Ball Flames (graphics) MSRP: $14,499 FACTORY CUSTOM PAINT Six Bikes & FCP 6

7 Lean Operations Retail Flow Management Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Bike Delivery to Dealers in Business Days Bike Delivery to Dealers in 18 Business Days 10 Days Complete Profiles One Time Initial Fill of Dealer Profiles, Support Retail Sell Thru Fill Profile Stockouts based on Retail Sell-Thru Victory Business Model Change Impact: Inventory Healthy and more evenly dispersed, working to improve turns Stock Outs Reduced YOY stockouts by 74%, stronger segment representation Lead-time Reduction Servicing dealers within 10 days, 97% promise date obtainment Transition to Refinement 7

8 Victory International Retail Sales Other Aus/NZ UK Norway Sweden Aus/NZ France Spain Finland Germany Norway Sweden other Spain Finland Germany Sweden Aus/NZ Italy Italy UK UK UK France Spain Finland Germany Norway Sweden Aus/NZ Italy UK International Gaining Share 8

9 Expand Victory Global Distribution 600+ Int l Int'l Int'l Int'l Int'l N.A. N.A. N.A. N.A. N.A New Victory Dealership Tokyo, Japan Growing N.A. & International Distribution 9

10 Motorcycle Only Sales Force Investing in Motorcycle Division Growth 10

11 Indian Strategy 1. Build a Premium Indian Brand 2. Frequent Premium Product News 3. Lean Operations 4. International Sales Growth 5. Build Premium Global Distribution 11

12 Brand Positions Bikes Riders Victory Motorcycle Harley-Davidson Indian Motorcycle Modern Performance Riding & Handling Independent spirit Intense Energy Classic Customization Image conscious Non-conformists Classic Power & Craftsmanship Self-assured Genuine Brand Bold/Progressive About the Ride Escapism Brotherhood Authenticity Pride & Stand Apart The Harley Davidson logo and images are trademarks of H-D U.S.A. LLC which has no affiliation with, endorsement by, or association of any kind with Indian Motorcycles, Victory Motorcycles or Polaris Industries, Inc. American Motorcycle Brands 12

13 Global Motorcycle Sales Performance Riders Distance Riders Classic American Riders Image Riders Novice Riders $4+ Billion (all Motorcycles) Victory & Indian Appeal to Industry s Largest Segments 13

14 Premium Brand Rider Community Online Service Event/ In-Person After Sales Products Follow Up Processes Benefits Comprehensive Customer Experience 14

15 All New 2014 Chief Facebook comments the price is killer! Price Comments Great price. Can t wait to test ride one! CyrilHuzeBlog.com I m pleasantly (really) surprised at the starting price point. This is a good thing for Harley riders as well. HDForums.com I was thinking that if they make a Scout at a good price I might try to pick one up. But at $19K for a Chief I might consider picking one up. Facebook comments LOVE the silhouette. Silhouette Comments lines have stayed true to the past without losing sight of the future. CyrilHuzeBlog.com The bike looks magnificent in the silhouette, and the pricing is right on par with the HD Softail range. Well done Indian... HDForums.com Can't wait to see the whole bike and hear it run. Chrome switch housings and some other goodies can be seen and come stock Launching at Sturgis 15

16 Lean Operations Retail Flow Management Unique Dealer Profiles SIOP Tracking and Planning Daily Ordering Process Production Scheduling and Logistics Planning Judge, 11 Classic / Custom, 24 Material Flow Design Safety Stock Planning V13TW36EC, WH :9, Ship Date: 4/30/ V13DW36ES, WH :9, Ship Date: 5/05/2012 Same Process as Victory 16

17 Premium Global Distribution Network Arlen Ness Dublin, CA 17

18 Premium Global Distribution Network Top MSA Focused Global Distribution at Launch N.A. Source of Dealers HD Other Auto Pwrspt Victory & Polaris Top MSA Focused N.A. Basic Tenets Consistent Brand Image Higher Investment levels and operational requirements Dealer Count Less than Victory Distribution Going to Plan 18

19 Indian Motorcycle Launch History Channel Top Shows First Ever History Channel Bike Week Sponsorship 19

20 Video Racing Vignette 20

21 Indian Chief Reveal Party Most Famous Intersection In Motorcycling North Junction Main Sturgis Motorcycle Museum 21

22 Video Jackpine Gypsy Vignette 22

23 Demos & Shows Motorcycle Events & Dealership Demos 23

24 Indian Motorcycle Sturgis August 3rd 24

25 POLARIS INDUSTRIES INC. ANALYST & INVESTOR MEETING Q & A Steve Menneto VP Motorcycles July 30, 2013