Garmin 2015 Annual Report Download - page 2

Dear Shareholder,
2015 was a challenging year for most global companies, and Garmin was
no exception. The strong U.S. dollar reduced the U.S. dollar value of the
revenue we generate outside the United States. Geopolitical confl icts
negatively impacted demand for our products in key markets such as
Russia and Eastern Europe. Lower oil prices—something we love as
consumers—had a negative impact on our sales to oil-producing markets.
Stock market volatility dampened enthusiasm in segments that are linked
to asset appreciation. Finally, competition intensifi ed across many of our
business segments, which led to signifi cant changes in the market. With
all of the challenges we faced, one could wonder if there was any good
news to celebrate. The answer is YES, and plenty of it:
• Our revenue was down 2% for the year, but performed well despite
the strong U.S. dollar. Unit deliveries were up 7% over 2014.
• Our aviation, fi tness, marine, and outdoor segments grew 9% on a
combined basis during 2015, and grew 13% on average over the past
three years as a direct result of our investments in these segments.
• We delivered highly anticipated products and technologies. Wrist-based
heart rate has become the must-have feature for fi tness watches and
activity trackers. Fitness delivered three new product families with
wrist-based heart rate in 2015 including models with our own Elevate™
heart rate technology. Outdoor leveraged the momentum of the
wearable market with the highly successful fēnix® 3. Marine launched
a signifi cant number of game-changing products resulting in increased
market share. Aviation delivered several key aircraft certifi cations
during the year, including the new Cessna Latitude and HondaJet.
CLIFF PEMBLE
|
PRESIDENT AND CEO
Finally, our auto segment delivered strong profi tability in mature market
conditions allowing us to invest in new opportunities for the future.
Our relationship with Honda Motor Co. expanded, resulting in Garmin
navigation being available on most Honda models around the globe.
In addition, our relationship with Daimler continues to expand with
the introduction of the new 2017 Mercedes E-Class.
• Our Beat Yesterday
™
campaign was a resounding success that delivered
increased interest in our products and our brand.
• We expanded our operational footprint with a new factory in China
and acquisitions that will bring new products and technologies to
our portfolio.
Looking forward to 2016, we understand that we cannot control the macro
environment in which we operate. Instead, we choose to focus on our
mission, which is creating superior products that play an essential role
in our customers’ lives. We have a strong lineup of products across all of
our business segments, which enable our customers to pursue the active
lifestyles that they love. Our aviation, fi tness, marine and outdoor segments
are once again forecasted to deliver strong growth, while our auto segment
remains a healthy source of profi ts.
I want to thank our shareholders for your interest in Garmin. We look
forward to 2016 and the many exciting opportunities it presents.
LETTER FROM THE CEO