Current Worldwide ATV Environment
Industry growing but slowing … expect 2003 to show modest single digit growth
Uncertainty of War weakened consumer confidence and ATV sales in Q1
Dealer and factory inventories increased in 1H with industry slowdown
Promotional spending has risen to record levels vs. 2002
Likely to stay at record levels throughout year
Suzuki has emerged as threat and force, Bomber and John Deere growth will
Increase competitive pressure
New product releases driving segment and competitor growth … expect shorter
product life cycles and to win with new product
Land use restrictions “Right to Ride” issues will continue
First time buyers remain very strong at 38% … lots of new users
Industry quality at all time high and improving
Uncertain, Tough, Expensive Market Conditions in 1H
2H and Beyond Look Better – Growth To Be Had