On Feb. 24, Polaris Inc. hosted its 2022 Analyst and Investor Day, outlining its long-term strategy for achieving accelerated growth, driving profitability and expanding its customer base.
“We see a clear opportunity to profitably grow Polaris, demonstrating to new customers how powersports fit into their lives and connecting with current riders who already love our products, while executing on our plans to innovate with new category-defining products, expand margins and return capital to shareholders,” said Mike Speetzen, Polaris Inc. CEO. “We have the best team in powersports and are well-positioned to execute on our strategy, continuing to set the bar for our industry while delivering long-term value for our customers and shareholders.”
The company’s new strategy emphasizes six strategic objectives:
- Best customer experience: Provide current and future customers with the best possible overall experience, fueling and creating new ways to help people experience the outdoors to the fullest. This includes dealer interactions for service and delivery as well as trusted products and services. Polaris is also expanding its new business models like Adventures and Adventures Select that encourage more diverse groups of people to experience the outdoors.
- Inspirational brands: Polaris will bring to life brands owners are proud to be associated with as well as excited to showcase and share with friends and family — brands that continue to be viewed as authentic, unique, engaging and just fun to experience as well as support the company’s Think Outside mindset.
- Rider-driven innovation: Polaris listens and learns directly from its customers to deliver high-quality products, experiences and services that matter most to them. While innovation has been part of the company’s DNA from the beginning, its electrification and connected vehicle initiatives represent an incredible opportunity to exceed customers’ expectations in powersports, and the recent launch of the Ranger XP Kinetic is the first example of how the company plans to lead in these areas.
- Agile and efficient operations: As a global leader in powersports, the company takes advantage of its global scale as well as lean operations and talented people to deliver the most responsive, customer-centric service levels in powersports.
- Best team, best culture: Polaris’ team and culture are what makes achieving its goals possible. Polaris focuses on hiring, developing and retaining the best people, constantly challenging them with new opportunities and high expectations. Its team and culture combine to create a competitive advantage that enables the company to deliver industry-leading innovation, support its customers and dealers, and drive long-term growth.
- Geared for Good: A core belief that as a global leader in powersports, Polaris has a responsibility to be good stewards for its industry, employees, riders, communities and the outdoors. Along with its unwavering commitment to Safety and Ethics Always, Polaris remains more committed than ever to making a positive impact by being Geared for Good.
Under the theme of “Leading from the Front”, the company reinforced its position as a global powersports leader. Highlights from the Analyst and Investor Day presentation included these long-term strategic targets:
- Expanding Polaris powersports customers by 50% in the next 10 years, building off an already large base of existing owners
- Deepening its customer knowledge through increased investment in insights as well as how customers interact with the Polaris brand
- Increasing access to powersports through new business models and entryway experiences with Polaris Adventures and Polaris Adventures Select
- Polaris is testing electric prototypes broadly across its product platforms but will commercialize purposefully 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 repurchases and acquisitions.
Five-Year Financial Targets
With a strong focus on financial performance, the company highlighted its five-year financial targets of mid-single digit compound annual growth rate in sales, mid- to high-teens percentage EBITDA margin, return on invested capital in the mid-twenties percent and double-digit percent compound annual growth rate in earnings per share.
2022 Financial Expectations
Polaris reaffirmed its full-year guidance of total company sales of $9.2 to $9.5 billion, up 12% to 15% compared to 2021, and adjusted earnings per share between $10.10 and $10.40, up 11% to 14% compared to last year.
Presentation Materials
Materials shared at the event, along with a recording of the presentation webcast, can be found on Polaris’ Investor Relations website: www.ir.polaris.com.
