Polaris 2013 Annual Report Download - page 6

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But just as many of our customers value
performance and handling over paint schemes
and chassis designs, we pay as much attention
to developing efficient and effective business
processes as we do the resulting numbers.
We constantly strive to increase our products’
performance, and we are relentless about applying
that same focus to accelerate improvement across
every aspect of our rapidly diversifying business.
2013 was a good year for Polaris, but every one
of us knows that we must, and will, execute
muchbetter.
This report highlights the exciting progress
we’re making toward our strategic objectives,
from launching the amazing RZR XP® 1000 and
the awesome Indian® Chieftain™ to expanding
our global footprint via the construction of new
assembly plants in India and Poland. However,
one simple number—10.1 percent—best
represents the progress we’ve made over the
past five years. In 2009, we set a goal to expand
net income margin from 6percent to 10percent
by 2018. With typical Polaris vigor, our teams
relentlessly pursued margin opportunities:
they moved plants and lowered product costs,
improved productivity and leveraged overhead,
value engineered vehicles, and capturedprice.
Achieving our net margin goal five years early, in
conjunction with our accelerated revenue growth,
coincides nicely with the exponential expansion
our market capitalization has undergone. While
we’re certainly pleased with our progress, there are
clear justifications for our intense motivation to be
better: wemust improve project execution, quality
and speed; lower inventories and warranty costs;
and generate significant returns on numerous
investments that have, in some cases, diluted our
margins over the pastfewyears.
Fundamental to our success is an unrelenting
focus on achieving our five strategic objectives.
(See Objectives on Page 5.) By most any measure,
Polaris’ performance has been outstanding over
the past four years. But as our business evolves,
our vision, strategy statements, guiding principles
and performance priorities also evolve, and
continue to provide the North Star that guides our
investment decisions and execution.
THE BEAUTY OF THE POLARIS VEHICLES GRACING THESE PAGES NICELY
COMPLEMENTS THE RECORD NUMBERS AND PROPERLY SLOPED GRAPHS THAT
ALSO REPRESENT OUR BUSINESS. FOR THE FOURTH CONSECUTIVE YEAR, OUR
TALENTED AND DEDICATED EMPLOYEES LEVERAGED INNOVATION AND PLAIN
HARD WORK TO GENERATE RECORD SALES AND EARNINGS GROWTH.
DEAR SHAREHOLDERS,
SCOTT W. WINE & BENNETT J. MORGAN
02
SHAREHOLDER LETTER