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2006 POLARIS INDUSTRIES INC. ANNUAL REPORT PAGE 5
GETTING BACK TO GREAT
Our new three-year plan has three specific
financial objectives for 2009:
• $2.2 billion in sales
• $150 million in net income
• $4.25 earnings per share
To achieve these financial objectives, we will
employ three clear strategies: 1) winning in
the core, 2) delivering operational excellence,
and 3) generating $500 million of new
business by entering new segments of our
existing businesses, as well as the military
market and one new adjacent market.
Winning in the core means strengthening our
ATV and snowmobile businesses. It means
gaining market share in a declining market with
better products, more and better advertising,
and more effective marketing. It means fighting
harder—and fighting to win.
Delivering operational excellence means
becoming the most efficient manufacturer in
the powersports industry, just as Toyota has
become the most efficient manufacturer in
the automobile industry. Historically, we have
had strong manufacturing operations, but
we believe we can find an entirely new level
of performance. Just as Toyota is using the
back end of its business to its competitive
advantage, we think we can find new levels
of quality and productivity to help us win.
We have made excellent progress in improving
quality across most product lines over the
last several years, and we continue to target
industry-leading quality in every segment.
Finally, we are looking to develop a lean
enterprise, driven by simple, robust product
designs and a lean supply chain.
Generating $500 million of sales growth
between now and 2009. Both
RANGER
and
Victory have been rapidly growing and should
continue to grow through new products, by
entering new segments, by expanded distribution
and through overall market growth. The new
RANGER RZR
™ (highlighted on page 6) will be
our first entry into the rapidly growing
recreational side-by-side market, and the new
Victory Vision line (highlighted on page 2)
will attack the luxury touring motorcycle
segment. Both
RANGER
and Victory should
deliver $100 million to $150 million of growth
over the next three years.