Polaris 2011 Annual Report Download - page 7

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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
marketshare
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 andopportunity
Indian Motorcycle work continues;
excitementgrows
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%;
EMEAup 37%
Strengthened EMEA & AP/LA teams
China leading BICs; profitable in
2ndyear
International growth of $120 million to 16% of overallrevenue
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 130bps
Factory productivity >9%
improvement
Monterrey >22,000 vehicles;
>19,000 engines produced
Operating margins up 210bps
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 3years
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
record8.6%
Sales up $709 million or 37% to record $2.66 billion
Net income up $110 million or 94% to record $228million
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
$3.86billion
3