Polaris: At-A-Glance: Motorcycle

We entered the motorcycle market in 1998 with a V-twin cruiser. The Victory V92C created a new niche in the market by combining the styling and power of a traditional cruiser with the superior handling of a sportbike.
PRIMARY COMPETITORS:

Harley Davidson
Honda
Kawasaki
Suzuki
Yamaha

1998 OVERVIEW

We rolled out the first Victory on July 4, 1998, and kept production numbers low to ensure quality. We sold slightly more than 1,000 units in our debut year. Demand at the dealerships continues to exceed expectations, reflecting a strong U.S. motorcycle market that experienced a 17 percent growth rate in 1998. To respond to demand, we increased the number of Victory dealers from 160 to 250 during 1998.

HIGHLIGHTS OF THE YEAR:

Named Cycle World’s “Cruiser Motorcycle of the Year.”
Showcased Victory in Europe at Intermot, the European motorcycle show.
Created significant awareness for the Victory brand.

OUTLOOK

We move into 1999 with a strong backlog of orders, so we expect sales to increase significantly over 1998. We foresee Victory contributing modestly to earnings by 2000. The U.S. motorcycle market is expected to remain strong with 11 to 15 percent annual growth for the next several years. We expect Victory sales to become a significant part of our overall business over the coming years as we expand internationally and extend the model line to include all four segments of the market — cruisers, touring, sportbikes and standard motorcycles.

Forward-looking statements made herein contain certain important factors that could cause results to differ materially from those anticipated. See Management’s Discussion and Analysis of Financial Condition and Results of Operation.

© 1999 Polaris Industries Inc.





		We entered the motorcycle market in 1998 with a V-twin cruiser. The Victory V92C created a new niche in the market by combining the styling and power of a traditional cruiser with the superior handling of a sportbike. PRIMARY COMPETITORS: Harley Davidson Honda Kawasaki Suzuki Yamaha 1998 OVERVIEW We rolled out the first Victory on July 4, 1998, and kept production numbers low to ensure quality. We sold slightly more than 1,000 units in our debut year. Demand at the dealerships continues to exceed expectations, reflecting a strong U.S. motorcycle market that experienced a 17 percent growth rate in 1998. To respond to demand, we increased the number of Victory dealers from 160 to 250 during 1998. HIGHLIGHTS OF THE YEAR: Named Cycle World’s “Cruiser Motorcycle of the Year.” Showcased Victory in Europe at Intermot, the European motorcycle show. Created significant awareness for the Victory brand. OUTLOOK We move into 1999 with a strong backlog of orders, so we expect sales to increase significantly over 1998. We foresee Victory contributing modestly to earnings by 2000. The U.S. motorcycle market is expected to remain strong with 11 to 15 percent annual growth for the next several years. We expect Victory sales to become a significant part of our overall business over the coming years as we expand internationally and extend the model line to include all four segments of the market — cruisers, touring, sportbikes and standard motorcycles. Forward-looking statements made herein contain certain important factors that could cause results to differ materially from those anticipated. See Management’s Discussion and Analysis of Financial Condition and Results of Operation.

		© 1999 Polaris Industries Inc.