Polaris 2011 Annual Report Download - page 5

DEAR FELLOW SHAREHOLDERS
The veracity of Mike Trihey’s words is
evident in our 2011 performance. We again
demonstrated the power that comes when
this deep and talented team concentrates
on a clear set of objectives. Our successes
over the past three years are the result of
the hard work and dedication of our 4,000+
employees worldwide partnering with our
dealers, distributors and suppliers, all
aligned towards challenging goals and stretch
objectives to deliver outstandingresults.
We set out to be the Best in Powersports
PLUS and, for the third consecutive year,
we gained market share in every business
unit while advancing our existing position
as the world’s leading Powersports company.
We sought out Growth Through Adjacencies
to diversify and strengthen Polaris. Between
the 137percent growth in Polaris Defense,
the 65percent growth of our Bobcat partner-
ship, and the acquisitions of GEM® and
Goupil Industrie that solidified our entry into
the emerging small electric vehicles space,
we found avenues into new markets that
concurrently enhanced our core business.
We set Global Market Leadership as a
priority, and demonstrated that commitment
by establishing a new European Head-
quarters in Rolle, Switzerland, while driving
39 percent growth within a challenging
European economy. We also formed a
new business unit solely focused on Asia
Pacific and Latin America that created
profitable growth in China and a 45percent
expansionoverall.
Our diversification initiatives rest on a strong
foundation, thanks to our efforts to ensure
Operational Excellence, which has become
a competitive advantage for Polaris. While
many businesses might struggle to meet a
24percent increase in sales volume, our
team not only met the growth challenge
efficiently, they did so while building a
state-of-the-art assembly plant in Monterrey,
Mexico. The new facility was completed on
time and on budget, and delivered more
than 22,000 high-quality vehicles in its first
yearofoperation.
By staying focused and successfully
executing these four Strategic Objectives,
we also accomplished our fifth, Sustainable,
Profitable Growth, as we delivered a second
consecutive year of record financial results.
We were pleased by our financial perfor-
mance and the 46percent total shareholder
return it generated, but numbers are only
part of the Polaris story. Our focus is not just
on annual targets and short-term results.
We also concentrate on steadily building
and refining our infrastructure to ensure we
can sustain and improve upon our products
and services — for customers, dealers,
shareholders and all Polarisstakeholders.
We are proud of our performance, though
we remain hungry and humbled by the
challenge of reaching our ultimate goal:
to become a highly profitable, $5billion
global enterprise by 2018. Fortunately,
stretch goals motivate this Polaris team,
which is not a group to bet against! There
isa competitive, innovative, winning culture
here. And, as we build on that foundation
with acquisitions of talent, equipment and
synergistic companies, we find our capacity
for growthrapidlyexpanding.
BEST IN POWERSPORTS PLUS
5–8 ANNUAL ORGANIC GROWTH
GROWTH THROUGH ADJACENCIES
200–500 MILLION GROWTH
GLOBAL MARKET LEADERSHIP
>25 OF REVENUE
OPERATIONAL EXCELLENCE
>200 BPS OPERATING MARGIN
IMPROVEMENT
STRONG FINANCIAL PERFORMANCE
PROFITABLE GROWTH
>9.5 NET INCOME MARGIN
$5BILLION IN SALES
1 0 NET INCOME
MARGIN
3–5 YEAR STRATEGIC OBJECTIVES
GOALS BY 2019GOALS BY 2018
“When I joined Polaris in 2008, one of our senior engineering
leaders cautioned that I should be careful what I asked for,
because Polaris employees were like a buzz saw: ‘If you
line us up, we can cut through anything.’ — Scott Wine
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