Polaris 2007 Annual Report Download - page 10

SIX POLARIS INDUSTRIES INC.
A LETTER FROM THE CEO AND COO (CONT.)
Military: We invested in a dedicated team with extensive military
sales experience and pursued this opportunity aggressively. It is
beginning to pay off with our largest military contract to date,
$18 million, received during 2007. While our Polaris Defense
business is still relatively small, we’re supplying custom products
(see details at right) to more than 20 military agencies around
the world, and we expect to continue to see rapid growth for the
foreseeable future.
International: In the next 10 years, we want to transition from
being a North American company with a small international
presence to a truly global company. This year, we took another
key step in that direction by moving international leadership out
of our corporate headquarters and closer to our international
markets. We promoted one of our talented employees to be our
first non-U.S. international general manager, and assigned key
non-U.S. regional managers. We also launched a subsidiary in
Germany, Europe’s third-largest ATV market. These changes will
continue to drive an already successful international business.
Our teams and products are strong, and in 2007, we gained
market share in Europe in both ATVs and snowmobiles, while
total international sales grew 11 percent. With the RANGER RZR
being launched in these markets in 2008, we’re confident in our
aggressive international sales projections.
Additional Adjacent Markets: While we are not yet ready to
disclose our next adjacency, we have identified, selected and
dedicated internal resources to this new opportunity. The
following areas demonstrate the kinds of opportunities we are
exploring for the company for future growth: more global, more
products designed for on-road use, and more products or
distribution opportunities outside the powersports industry.
In summary, we’re proud of our performance in 2007. We got the
company back on track and gained momentum. 2008 is expected
to be even better than 2007. Our focus for 2008 remains consistent:
Win in the core, deliver operational excellence, and grow our
business. We’ll continue to deliver game-changing products,
dominate the fast-growing side-by-side vehicle market, and begin
to transform our core businesses through operational excellence.
Finally, we will continue to explore adjacent long-term market
opportunities that will diversify us into a more global and more
on-road company with a reach that extends beyond powersports.
We remain committed to our 2009 goals, but rest assured there
are no rose-colored glasses at Polaris. We know the journey won’t
be easy. We expect that our markets and the economy will
continue to get tougher in the short term, so we’ll have to work
harder and execute better. But our vision is clear, our focus is
unmatched, and our 3,200 employee-owners are committed to
being the very best in the industry.
Thomas C. Tiller – Chief Executive Officer
Bennett J. Morgan – President and Chief Operating Officer
NUMBER OF MILITARY AGENCY
CUSTOMERS TO DATE:
•20
NEW PRODUCTS:
• MV800 4X4, based on our ATV platform
(pictured at right)
• MVRS, based on our RANGER platform
(pictured above)
CUSTOM FEATURES:
• Available with either a 40 horsepower gasoline
engine or a Polaris Patriot Engine, which runs
on JP8, the U.S. military’s standard fuel
• High-capacity fuel tank
• Completely sealed power train that can ford
up to 30 inches of water
• Steel exoskeleton
• Run-flat tires
• NATO litter rack attachments
• Modular attachments for ancillary equipment,
tools and containers
ADJACENT MARKETS:
MILITARY
MVRS 4x4