MINNEAPOLIS–(BUSINESS WIRE)–Today, Polaris Inc. (NYSE:PII), the global powersports leader, hosted its 2022 Analyst and Investor Day outlining its long-term strategy to accelerate growth, drive profitability and expand its customer base.
“We see a clear opportunity to grow Polaris profitably, showing new customers how motorsports fits into their lives and connecting with current riders who already love our products, while executing our plans to innovate with new category-defining products, increase margins and return capital to shareholders,” said Mike Speetzen, CEO of Polaris Inc. “We have the best team in powersports and we are well positioned to execute our strategy, continuing to setting the bar for our industry while delivering long-term value for our customers and shareholders.”
The Company’s new strategy focuses on six strategic objectives:
Better customer experience: To provide our current and future customers with the best overall experience possible, by fueling and creating new ways to help people fully enjoy the outdoors. This includes dealership interactions for service and delivery as well as trusted products and services. We are also expanding our new business models like Adventures and Adventures Select which encourage more diverse groups of people to experience the outdoors.
Inspirational brands: We’ll bring to life the brands our owners are proud to be associated with and excited to showcase and share with friends and family. Brands that continue to be seen as authentic, unique, engaging and simply fun to discover and that support our Think Outside mindset.
Driver-driven innovation: We listen and learn directly from our customers to deliver high-quality products, experiences and services that matter most to them. While innovation has been in our DNA from the start, our electrification and connected vehicle initiatives represent an incredible opportunity to exceed customer expectations in powersports and the recent launch of the Ranger XP Kinetic is the prime example of how we plan to lead in these areas. areas.
Agile and efficient operations: As a global powersports leader, we leverage our global scale along with lean operations and talented people to deliver the most responsive and customer-centric levels of service in powersports.
Better team, better culture: Our team and our culture are what make it possible to achieve our goals. We are focused on hiring, developing and retaining the best people, constantly challenging them with new opportunities and high expectations. Our team and culture combine to create a competitive advantage that allows us to deliver industry-leading innovation, support our customers and dealers, and drive long-term growth.
Designed for good: A fundamental belief that as a global powersports leader, we have a responsibility to be good stewards for our industry, our employees, our riders, our communities and the outdoors. Along with our unwavering commitment to safety and ethics, we remain more determined than ever to make a positive impact by being Geared for Good.
Under the theme “Leading from the Frontline,” the Company strengthened its position as a global powersports leader. Highlights of today’s Analyst and Investor Day presentation included these long-term strategic goals:
Grow the Polaris Powersports customer base by 50% over the next ten years, building on an already large base of existing owners.
Deepen customer insight through increased investment in insights and how customers interact with the Polaris brand.
Increase access to motorsports through new business models and entry experiences with Polaris Adventures and Polaris Adventures Select.
Continuous investment in research and development to drive innovation for its drivers, both within the already established capabilities of ICE powertrains and transmissions, fit and finish, ride and handling. handling, and an extensive portfolio of accessories, as well as emerging capabilities, including making Ride Command+ connected technology available across most of its powersports models by 2026 and expanding options for electric vehicles with a strategic and targeted customer-centric approach. Polaris is testing electric prototypes across all of its product platforms, but will purposely market where electrification improves the customer experience.
In addition to supporting organic investment in growth opportunities, Polaris is committed to a capital allocation strategy that prioritizes organic investment, dividend growth, share buybacks and purchases.
Five-year financial objectives
With a strong focus on financial performance, the company outlined its five-year financial goals of mid-single-digit compound annual growth rate in sales, EBITDA margin percentage in the mid to upper teens, return on invested capital in the mid-twenties percent; and a double-digit compound annual growth rate in earnings per share.
2022 financial expectations
Polaris reaffirmed its full-year guidance of total company sales of $9.2-9.5 billion, up 12-15% from 2021, and adjusted earnings per share between $10.10 and $10.40, up 11-14% from last year.
Materials shared at the event, as well as a recording of the presentation webcast, can be viewed on the Polaris Investor Relations website: www.ir.polaris.com.
As a global powersports leader, Polaris Inc. (NYSE:PII) is at the forefront of product breakthroughs and rewarding experiences and services that have invited people to experience the joy of being outdoors. since our founding in 1954. With annual sales of $8.2 billion in 2021, Polaris’ high-quality product line includes the Polaris RANGER®RZR® and Polaris GENERAL™ all-terrain side-by-side vehicles; Athletic® off-road all-terrain vehicles; indian motorcycle® medium and heavy motorcycles; slingshot® motorcycle roadsters; snowmobiles; and deck boats, cruisers and pontoons, including the industry-leading Bennington pontoons. Polaris enhances the riding experience with parts, apparel and accessories, as well as a growing portfolio of aftermarket parts, including Transamerican Auto Parts. Polaris’ presence in adjacent markets includes military and commercial off-road vehicles, quadricycles and electric vehicles. Proudly based in Minnesota, Polaris serves over 100 countries worldwide. www.polaris.com
Except for historical information contained herein, the matters set forth in this presentation and discussed in the related investor presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from such statements. prospective. Potential risks and uncertainties include factors such as: the severity and duration of the COVID-19 pandemic and the resulting impact on the Company’s business, supply chain and global economy; the Company’s ability to successfully implement its manufacturing and supply chain operations expansion initiatives; the Company’s ability to successfully source necessary parts and materials and the Company’s ability to manufacture and deliver products to dealers to meet growing demand and to restore dealer inventory levels to optimal levels ; continued growing consumer demand for the Company’s products; competitors’ product offerings, promotional activities and pricing strategies; ability to innovate and market new products (including the ability to market electric vehicles currently in the testing phase); economic conditions affecting consumer spending; disruptions in manufacturing facilities; acquisition integration costs; product recalls and/or warranty costs; product redesign costs; the impact of changes in the Polaris stock price on incentive compensation plan costs; exchange rate fluctuations; environmental and product safety regulatory activity; weather effects; commodity costs; transportation costs and tariff costs (tariff relief or ability to mitigate tariffs); changes to international trade policies and agreements; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; performance of affiliate partners; tax policy changes; relationships with dealers and suppliers; and the general economic, social and political environment. Investors are also urged to consider other risks and uncertainties discussed in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to anyone to provide updates to its forward-looking statements.