Polaris 2011 Annual Report Download - page 7
Download and view the complete annual report
Please find page 7 of the 2011 Polaris annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.STRATEGIC OBJECTIVES
HERE’S HOW WE’RE DOING AGAINST THE LONG-TERM PLAN:
3-YEAR
PROGRESS
We’re three years into a 10-year plan to achieve our strategic goals of
$5 billion in sales and 10 percent net income margin by the year 2018.
OBJECTIVE 3–5-YEAR GOAL 2011 ACTIONS 3-YEAR PROGRESS (2009-2011)
BEST IN
POWERSPORTS
PLUS
5–8% annual
organic growth
Extended #1 market share in ORV
Victory growth profitably accelerated
Snowmobiles clear #2 in
marketshare
10% annual organic growth
83 new vehicles
PG&A >1,000 new products
#1 Side-by-sides with 40+% market share
#2 Snowmobiles market share
#2 Motorcycles market share
GROWTH THROUGH
ADJACENCIES
$200–500
million growth
Polaris Defense and Bobcat
sales up significantly
Small Electric Vehicles gained
traction andopportunity
Indian Motorcycle work continues;
excitementgrows
Organic:
Defense team and business expanded
Bobcat partnership launch successful
Acquisitions and Investments:
Swissauto: tremendous powertrain competitive advantage
Indian: iconic motorcycle brand with huge potential
GEM: leadership in North American electric people movers
Goupil: leadership in European electric light-duty haulers
Brammo: access to innovative electric vehicle technology
GLOBAL MARKET
LEADERSHIP
>25% of total
company revenue
International sales up 39%;
EMEAup 37%
Strengthened EMEA & AP/LA teams
China leading BICs; profitable in
2ndyear
International growth of $120 million to 16% of overallrevenue
EMEA growth of 28%; Headquarters established
Australia/New Zealand growth of 122%
China, India and Brazil subsidiaries established
OPERATIONAL
EXCELLENCE
>200 bps
operating margin
improvement
Gross profit margins up 130bps
Factory productivity >9%
improvement
Monterrey >22,000 vehicles;
>19,000 engines produced
Operating margins up 210bps
Manufacturing realignment: excellent execution
Flexible manufacturing: 29% volume decline in 2009;
56%volume increase in 2010-2011
2+ acquisition integrations completed
Manufacturing productivity up >7% for each of past 3years
Inventory turns increased 18%
Operating margins up 380 bps
STRONG FINANCIAL
PERFORMANCE
Sustainable,
profitable growth
and net income
margin >9.5%
Sales up 33%
Net income up 55%; EPS up 50%
Net income margin up 120 bps to
record8.6%
Sales up $709 million or 37% to record $2.66 billion
Net income up $110 million or 94% to record $228million
Net income margin up 260 bps to record 8.6%
Total shareholder return up 330% on December 31, 2011
Market capitalization increased $2.92 billion to record
$3.86billion
3