Polaris 2006 Annual Report Download - page 10

PAGE 6 2006 POLARIS INDUSTRIES INC. ANNUAL REPORT
The international sales opportunity remains
significant for Polaris. We can improve our
distribution in several existing markets, and see
growth in emerging markets, as well. Combined,
we should see approximately $50 million of
sales growth outside of North America.
The remaining sales growth will come from
entering two adjacent markets. These are
markets that we currently do not serve, but are
opportunities where we can apply our brand and
technology to create customer value. The first
opportunity is the military market. For the past
few years, we have been working with military
customers on a small scale—learning the market
niches and developing products to deliver the
mission. Based on this early success, we
believe there is a credible, sizable opportunity
for our vehicles in a number of different
military and government applications. We look
to generate $50 million to $75 million in
annual sales in the military market by 2009.
The other adjacent market opportunity is
under development and will be announced in
the future.
LAUNCHING THE NEXT
RANGER SUCCESS
Sales of our RANGER utility vehicles have been so
successful that we extended our family of side-by-side
(SxS) performance vehicles to include a big bore sport
model — the new RANGER RZR . It competes in the
rapidly growing recreational segment of the SxS utility
market, and pairs our legendary razor-sharp RANGER
performance with a Sportsman®800 EFI engine for
faster acceleration than the category market leader.
SEGMENT: Big Bore/Sport Utility
TARGET AUDIENCE: Hunters, Big Bore ATV and
Sport SxS riders
COMPETITORS: Yamaha, Arctic Cat, other Big Bore ATVs
POLARIS DIFFERENTIATORS: 30 percent more horse-
power, 25 percent more suspension travel with
dual anti-sway bars for better handling, and a trim
50 inches wide (the only trail-capable SxS)
WORLDWIDE SIDE-BY-SIDE UTILITY VEHICLE MARKET
65% Utility (20% growth in 2006*)
20% Commercial/Industrial (flat growth in 2006*)
15% Recreational (45% growth in 2006*)
Utility segment of the total SxS market is the largest segment today. But the fastest-growing
segment is recreational— where the RANGER RZR is expected to aggressively compete.
* Estimated