Exhibit 99.1
Scott W. Wine, Chairman & CEO Raymond James Institutional Investors Conference March 3, 2015 POLARIS INDUSTRIES INC.
7,800 Employees Worldwide 14 Manufacturing Locations 5 Research & Development Centers of Excellence 1,850 Dealers In North America 1,400 Dealers Outside North America 380,000 Units Shipped Worldwide in 2014 100 Countries – Polaris Products Sold IR March 2015 2
Polaris at a Glance – Key Financial Metrics IR March 2015 $1,991 $2,657 $3,210 $3,777 +19% $4,480 $147 $228 $312 $381 $454 NET INCOME UP 9% TO 12% 2010 2011 2012 2013 2014 2015 Guidance Sales Guidance Net Income* 2014 - 5th Straight Year of Exceptional Financial Performance SALES UP 9% TO 12% EPS* $2.14 +40% $7.22 TO $7.42 UP 9% TO 12% 5-Year CAGR Sales +23% EPS* 34% $3.20 +50% $4.40 +38% $5.40 +23% $6.65 +23% *from continuing operations IR March 2015 3
Vision & Strategy Strategic Objectives VISION STRATEGY Fuel the passion of riders, workers and outdoor enthusiasts around the world by delivering innovative, high quality vehicles, products, services and experiences that enrich their lives. Polaris will be a highly profitable, customer centric, $8B global enterprise by 2020. We will make the best off-road and on-road vehicles and products for recreation, transportation and work supporting consumer, commercial and military applications. Our winning advantage is our innovative culture, operational speed and flexibility, and passion to make quality products that deliver value to our customers. Best in Powersports PLUS Global Market Leadership Strong Financial Performance Growth through Adjacencies LEAN Enterprise is Competitive Advantage 5-8% annual organic growth 33% of Polaris revenue $2B from acquisitions & new markets Significant Quality, Delivery & Cost Improvement Sustainable, profitable growth Net Income Margin 10% Guiding Principles Performance Priorities Best People, Best Team Safety & Ethics Always Customer Loyalty Growth Margin Expansion Product & Quality Leadership LEAN Enterprise GROW SALES $8 Billion by 2020 12% CAGR INCREASE NET INCOME 10% of Sales by 2020 13% CAGR IR March 2015 4
Leading market share gainer in 2014 Largest product launch in history – 21 new models Executed ATV RFM in Q4, 2014 2015 Sales Guidance* – Up mid-single digits % Building Upon Clear Market Share Lead in ORV *2014 sales reclassified to exclude Defense and Commercial Sales in 2015 2014 Sales $2,909M up 15% Off-Road Vehicles IR March 2015 5
Strong season-to-date share gains thru January Snow mixed – West & East strong, Midwest weak MY’14 quality improved – #2 in NPS 2015 sales guidance – down mid-single digits % Growing Market Share and Quality Performance 800 Switchback® Pro-S 2015 Snowmobile of the Year 2014 Sales $322M up 7% NEW 2016 800 Pro-RMK® 155 ON THE AXYS® PLATFORM IR March 2015 6
Launched Scout, Roadmaster, Magnum & Slingshot Dealers signed Indian 190/120 (signed/retailing) Slingshot ~380 Victory ~450 2nd half 2014 paint/capacity challenges improving 2015 sales guidance – up 50% to 65% Amazing Products & Launches – Big Opportunity! $500M Motorcycle Sales anticipated in 2015 2014 Sales $349M up 59% IR March 2015 7
Growing House Brands; Leveraging Aftermarket Brands PG&A Sales by Category & Product Line Innovation ongoing 400 new accessories 200 new apparel items Expanded SMART implementation Leveraging aftermarket brand portfolio 2015 sales guidance - up high-teens % Aftermarket Brand Portfolio Growing House Brands; Leveraging Aftermarket Brands House Brand Portfolio 60,000+ SKUs 2,500+ SKUs 2,000+ SKUs 1,000+ SKUs Accessories Motorcycles Small Vehicles Other Garments Snow Parts Off-Road Vehicles 2014 Sales $742M up IR March 2015 8
Work & Transportation New Organization Work & Transportation, Military Focus on growth outside Powersports Execute M&A initiatives to accelerate growth 2015 sales guidance up 10% to 15% Military New Global Adjacent Market Structure Will Drive Synergies, Focus & Growth 2014 reclassified to include Defense and Commercial Sales 2014 Sales $273M up 24% (Small Vehicles + Commercial + Military) IR March 2015 9
EMEA Asia Pacific Latin America Global Market Leadership 2014 Sales by Geography Strong Sales Growth & Market Share Opportunities EMEA market share gains in ORV, motorcycle, snow and Aixam Poland plant producing and shipping Eicher-Polaris JV Personal Utility Vehicle set to launch Q2 2015 2015 sales guidance up low-single digits % Int’l Canada United States 2014 Sales $685M up 16% Manufacturing Plant in Jaipur, India Specialized Sports Equipment LLC in Dubai-UAE IR March 2015 10
FY 2014 FY 2015 Guidance LEAN Enterprise is Competitive Advantage Gross Profit Margin New E.V.P. of Operations, Engineering and Lean to drive efficiency/quality Spirit Lake liquid paint output improving daily Additional capacity coming in Q2 2016, Huntsville, Alabama – Lean at start-up 2015 Gross Margin guidance up in spite of 100 bps currency headwind Closer Integration of Engineering & Manufacturing Processes Focus is Key to Continuous Improvement -23 bps 29.4% Flat to Up +20 bps 29.4% to 29.6% 600,000 square foot SxS Manufacturing Plant $150M Investment IR March 2015 11
Catalysts for Growth ORV Momentum: Innovation, execution, lifestyle brands Two $1B brands and growing Motorcycle Breakthrough: Indian bikes & dealers; Victory performance & positioning Slingshot: Unparalleled interest, unique opportunity Global Adjacent Markets: Leadership to accelerate growth International Markets: tough, but opportunities abound Hammerhead, Eicher JV, Poland, etc. Customer Excellence: Omni-channel mandate for service & growth Pucel / LEAN Investment: Margin expansion, cash flow & speed IR March 2015 12
Appendices Slide 5-Year Financial Performance 16 N.A. Retail Sales & Dealer Inventory – Full Year 2014 17 New Product Introductions (MY’15 & Early MY’16) 18 Slingshot 19 2015 Full Year Detailed Guidance 20 2015 Gross Profit Margin Guidance 21 Major Foreign Currencies for Polaris 22 Balance Sheet and Liquidity Profile 23 Global Manufacturing Operations 24 Customer Profiles 25 IR March 2015 14
Return on Invested Capital Return on Assets 5-Year Financial Performance Sales & Net Income Return on Shareholder Equity Dividends (per share) 5-Year Total Return 16% 20% 23% 24% 24% 4% 7% 9% 13% 9%
9% 6% 6% 7% 6% 2010 2011 2012 2013 2014 33% 41% 42% 42% 42% 6% 12% 15% 21% 14% 11% 12% 7% 8% 6% 2010 2011 2012 2013 2014 $1,991 $2,657 $3,210 $3,777 $4,480 $2.14 $3.20 $4.40 $5.40 $6.65 2010 2011 2012 2013 2014 Sales EPS* 662% 178% 115% 85% 71% Polaris Peer Avg. S&P Midcap 400 S&P 500 DJIA 40% 46% 45% 71% 53% 2010 2011 2012 2013 2014 5-Year CAGR Sales = 23% Net Income* = 35% Polaris Peer Average (ACAT, BC, DE, HOG, WGO, TTC) S&P 500 Average $0.80 $0.90 $1.48 $1.68 $1.92 $2.12 2010 2011 2012 2013 2014 2015 5-year dividend payout $457 million Dividends increased 20% per year compounded annually for the past 5 years Expectation Dec. 31, 2009 – Dec. 31, 2014 From Continuing Operations IR March 2015 15
2013 2014 N.A. Retail Sales & Dealer Inventory – FY 2014 Dealer Inventory Up, but Remains Appropriate, Opportunities Exist N.A. Dealer Inventory N.A. Powersports Market Share & Retail Sales Polaris N.A. retail 13% for Q4 and 12% FY 2014 vs. 2013 Gained share in ORV, motorcycles and snowmobiles season-to-date Polaris year-end 2014 N.A. dealer inventory 16% vs. 2013 ORV high-teens % driven primarily by new models and market segments; ATVs moving to RFM Indian motorcycles ; Victory year-over-year; Slingshot began shipping in November 2014; stockouts Snowmobiles and Small Vehicles single-digits % ATV dealers using RFM process beginning Q4 2014 2010 2011 2012 2013 2014 Polaris Industry +5% +12% Consolidated Market Share in Units Using Total Motorcycle Industry Retail Sales Market Share 4% Existing Models 8% New models/ categories 4% New Dealers 16% Total Increase +16% IR March 2015 16
NEW MY’15 & Early ’16 Products Industry-Leading Products in All Categories PG&A Over 400 NEW Accessories; >200 NEW Apparel XP 1000 High Lifter Edition 900 TRAIL, 50” S 900, 60” 900 XC EDITION XP 4 1000 XP 1000 XP 1000 ACE 570 ETX X2 570 TOURING 570 SP TOURING XP 1000 ETX 570 570 FULL SIZE CREW 570 CREW 570 FULL SIZE XP900 MAGNUM ROADMASTER SLINGSHOT / SLINGSHOT SL SCOUT DARKHORSE 4 900 CREW 900-6 DIESEL HST IR March 2015 17
Unveiled July 2014 2 models: Base & Premium (SL) $19,999 - $23,999 MSRP (U.S.) 380 dealers signed and committed Shipments began in November 2014 Extremely high initial interest 1 billion media impressions in first 4 weeks Retailed 1,000 Units in Nov/Dec 2014 Assembly in Spirit Lake, Iowa IR March 2015 18
METRIC GUIDANCE Sales Components Off-Road Vehicles Up mid-single digits % (reclassified 2014 actuals) Snowmobiles Down mid-single digits % Motorcycles Up 50% to 65% Global Adjacent Markets Up 10% to 15% (reclassified 2014 actuals) PG&A Up high-teens % InternationalUp low-single digits % Total Company sales Up 9% to 12% Gross profit margin Flat to Up 20 bps Operating expenses (% of sales) About flat Income from financial services Up low-single digits % Income taxes 34.5% to 35.0% of pretax income Net income Up 9% to 12% EPS, diluted $7.22 to $7.42 (+9% to +12%) IR March 2015 19
2015 Gross Profit Margin Guidance METRIC Actual FY 2014 Guidance FY 2015 Prior period 29.7% 29.4% Production volume/capacity Product cost reduction efforts Commodity costs Currency rates Higher selling prices Product mix New plant start-up costs Warranty costs Depreciation/Tooling amortization Sales promotional costs Contract dispute charge in 2013 N/A Current period 29.4% 29.4% to 29.6% Change -23 bps Flat to Up +20 bps Improvement to gross profit margin % Impairment to gross profit margin % Neutral to gross profit margin % IR March 2015 20
Significant Impact in 2014, Pressure Expected to Persist into 2015 Major Foreign Currencies for Polaris Currency Approximate Exposure in Avg. Rate 2013 to 2014 to 2014 Avg. Rate in Jan. 2015 FY 2015 Exposure Hedged* Impact 2015 vs. 2014 Canadian Dollar (CAD) Long $400M -7% -10% 10%Negative Euro (EUR) Net Long $150M Flat -15% 0% Negative Australian Dollar (AUD) Long $75M -7% -10% 10% Negative Norwegian Kroner (NOK) Long $50M -6% -20% 0% Negative Swedish Krona (SEK) Long $50M -5% -20% 0% Negative Mexican Peso (MXN) Short $50M -4% -8% ~66% Positive Japanese Yen (JPY) Short $50M -8% -15% 66% Positive Balance Sheet Re-measurement Long Negative Positive 0% PositiveNet Impact to Gross Profit Negative Approximate Financial Impact Q4 2014 Actual FY 2014Actual 2015 Expectations Sales (2%) (1%) (2%) Gross Margin % (150 bps) (100 bps) (100 bps) *As of Jan. 2015 IR March 2015 21
Balance Sheet and Liquidity Profile $ In millions (except per share and rate data) FY 2014 Fav / (UnFav)FY 2013 2015 Full Year Guidance Cash $137.6 49% Increase Debt / Capital lease obligations $226.1 21% Unchanged Credit facility $350.0 Flat Unchanged Factory inventory $565.7 (35%) Improved Turns Capital expenditures $205.1 8% $250M Depreciation and amortization $127.5 38% Increase about 25% from 2014 Operating cash flow from continuing operations $529.3 6% Increase at higher % than net income Dividend (per share) $1.92 14% Increase 10% over 2014 Polaris Acceptance receivables $1,141.1 23% About flat with 2014 Retail credit – Volume – Approval rate – Penetration rate $903.7 58% 32% 16% Flat Flat Rates stable IR March 2015 22
Global Manufacturing Operations Adding Capacity to Supply Future Consumer Demand Current Polaris MFG Locations Future Polaris MFG Location Monterrey MEXICO SxS, Engines Spirit Lake & Milford IOWA Motorcycles, SxS, ACE, GEM Roseau MINNESOTA Snow, ATV, SxS Osceola WISCONSIN Engines Bourran FRANCE Goupil Chanas & Aix-les-Bains FRANCE Aixam Mega Opole POLAND ATV, SxS Jaipur INDIA Eicher JV Huntsville ALABAMA (2016) SxS Cuyahoga Falls OHIO Kolpin Riverside, CALIFORNIA Pro Armor Shanghai, CHINA (Feb. 18, 2015) Hammerhead IR March 2015 23
Customer Profiles OFF-ROAD VEHICLES MOTORCYCLES SNOWMOBILES Avg. Age 49 43 44 47 52 25 to 55 42 Income $100k $100k $90k $90k $100-$125k $150k $90k Male / Female 95% / 5% 90% / 10% 90% / 10% 75% / 25% 90% / 10% 90% / 10% 90% / 10% Primary Usage Mostly Work Farming/Ranching Property Maint. Rec/Trail Hunt Mostly Play Rec/Trail Dunes Property Work & Play Rec/Trail Property Maint. Hunt Rec/Trail Hunt Utility Cruising Day trips Around town Commute Cruising Day tripsAround town Commute Recreation on & off trail IR March 2015 24
Except for historical information contained herein, the matters set forth in this document, including but not limited to management’s expectations regarding 2015 sales, shipments, margins, net income and cash flow, the opportunities for expansion and diversification of the Company’s business and the Company’s guidance on earnings per share from continuing operations are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as product offerings, promotional activities and pricing strategies by competitors; manufacturing operation initiatives; acquisition integration costs; warranty expenses; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; performance of affiliate partners; changes in tax policy and overall economic conditions, including inflation, consumer confidence and spending and relationships with dealers and suppliers. Investors are also directed to consider other risks and uncertainties discussed in our 2014 annual report and Form 10-K filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements. The data source for retail sales figures included in this presentation is registration information provided by Polaris dealers in North America and compiled by the Company or Company estimates. The Company must rely on information that its dealers supply concerning retail sales, and other retail sales data sources and this information is subject to revision. IR March 2015 25