Polaris 2004 Annual Report Download - page 8

Polaris Industries Inc.4
culture is critical, but from France to Australia, we have already
found people whose integrity, love for the product and competitive
fire are as strong as in Roseau and Osceola.
One big idea. As we advance our powertrain and chassis technology,
we’re not just improving features or developing new models. We’re
also working on ideas that can create or transform a market. When
the ATV evolved to a stable four-wheel platform twenty years ago,
it changed the life and productivity of every farmer, rancher and
hunter who once depended on a tractor, horse or pickup for work
that couldn’t be done on foot. Our next big idea should do no less.
World-class technology. In April 2005, our new Polaris Technology
Center opens with approximately 300 people dedicated to designing
the best powersports products in the world. This investment — the
largest in the Company’s history — will accelerate development of
broadly appealing vehicles with more sophisticated and reliable
subsystems and clean, fuel-efficient engines. Located just north of
Minneapolis, this state-of-the-art facility will help us to continue to
attract and retain the best-qualified people in the world, who will
design and produce the highest quality products in the world.
Productivity. Our industry is extremely cost-competitive, with global
players eager to take our business and these pressures will only
increase in the future. We plan to stimulate sustainable cost reductions
throughout our operations and supplier base to help offset many of
these pressures. We will aggressively seek improvements to our
cost structure that yield savings without affecting the customer. For
example, extending the production planning horizon helps us reduce
the number of platforms and use more common components. More
disciplined logistics solutions — such as improvements in packing and
moving materials, products and spare parts — can offset transportation
costs. Global sourcing in Asia helps reduce the costs of some price-
sensitive entry-level ATV models. And we’re streamlining the sales
process to increase customer face time and reduce travel time.
Best team. Polaris has always had the best, most-productive
workforce in the industry, but perhaps the most exciting realization
for all of us is what happens as we become even better. Success
fosters more success, creating a snowball effect that will dramatically
distinguish us from the rest of the industry. Today, for example, we
attract the best engineering graduates for our entry-level training
program. For every opening, we have overwhelming interest. Through
project work and rotational assignments, we teach them leadership
as well as specific product technologies. In five years, they’ll be
leading sections of the company, not just project teams. Our most
important, sustainable competitive advantage is attracting, developing
and retaining the best people in the industry.
As we begin a new half century, I remain humbled by the
proud legacy of this Company and excited about its great potential.
It should be a great next 50 years.
Thomas C. Tiller – President and Chief Executive Officer
THE GOALS
• Grow $3 billion by 2009
• Expand net margins
to nine percent
• Build a dominant brand
with industry-leading product
quality and distribution
ACHIEVED BY
Product innovation
• Build strength and share in
existing strong businesses —
dominance mindset in ATVs,
snowmobiles, and utility vehicles
• Waves of new products —
planned and executed flawlessly
• Gradually build powertrain
capability to control our destiny
• Expand PG&A and
Financial Services through
integrated offerings
Growth initiatives
• A leaner, stronger, more
profitable dealer network —
1,500–1,700 in North America
• A bigger, stronger Victory
motorcycle business
• Global expansion — focused
in Europe first
• At least one “big” product idea
derived from existing technology
• World-class technology
development
• Relentless focus on productivity to
fuel our growth — global sourcing
• The best team in the powersports
industry, fueled with a consuming
passion for the customer, the
dealer and the ride