MILWAUKEE, May 10, 2022
/PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson")
(NYSE:HOG) will host its 2022 Investor Day at the Harley-Davidson
Museum in Milwaukee, WI today.
"We have a clearly defined vision and strategy that we
believe will capture profitable growth opportunities. Despite the
macro challenges, we are already seeing the proof points of The
Hardwire and, today, we are taking it to the next level," said
Jochen Zeitz, Chairman, CEO and
President, Harley-Davidson. "In motorcycling, when you want to
get more out of an engine, you upgrade it by adding a Stage II kit,
that is what we are doing with our Hardwire strategy, tuning the
engine of our business for improved acceleration and increased
performance."
2022 Outlook – Reaffirmed
For the full year 2022, the Company reaffirms its initial
guidance and continues to expect:
- HDMC revenue growth of 5 to 10%
- HDMC operating income margin of 11 to 12%
- HDFS operating income to decline by 20 to 25%
- Capital investments of $190
million to $220 million
The "Hardwire Stage II" financial targets
2021-2025E include:
- HDMC Revenue growth CAGR from 2021 to 2025E: +5% to +7%
- HDMC Operating Margin: 15% by 2025
- HDFS Operating Income growth CAGR from 2021 to 2025E: -3%
to -5%
- HDFS Operating Income growth CAGR from 2022E to 2025E:
+3% to +5%
HDMC Revenue 2021-2025E guidance excludes LiveWire One branded
motorcycles and includes HD branded Motorcycles, Parts &
Accessories, Apparel & Licensing, and Experiences.
In addition, the "Hardwire Stage II" includes consolidated
financial targets at Harley-Davidson, Inc. (HDI) for
2021-2025E:
- Revenue CAGR for combined HDMC & LiveWire: +9% to +11%
- Operating Margin for combined HDMC & LiveWire: 12% by
2025
- Capital Expenditures for HDMC & LiveWire:
$250 - $300
million per year
- Targeting $400 million of cost
productivity for HDMC by 2025
Presentation Materials
Materials shared at this event, along with a recording of the
presentation webcast, can be found after the meeting on
Harley-Davidson's Investor website
at http://investor.harley-davidson.com/news-and-events/events-and-presentations.
Cautionary Note Regarding Forward-Looking Statements
This press release relates to the company's strategic plan, The
Hardwire, including Hardwire Stage II. The company intends that all
statements in this press release concerning the company's plan,
including without limitation its plans, objectives and
expectations, future financial and other results it seeks to
attain, the new product introductions it contemplates, and its
views of market opportunities and benefits and other matters
resulting from the company's strategy in this press release are
"forward-looking statements" intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Without limitation, the 2021-2025
financial targets included in this press release are
forward-looking statements. These forward-looking statements
are subject to certain risks and uncertainties that are likely to
cause actual results to differ materially, unfavorably or
favorably, from those anticipated as of the date of this press
release (May 10, 2022). Certain of
such risks and uncertainties are described below, and others are
listed in Item 1A. Risk Factors, of the company's Quarterly Report
on Form 10-Q for the quarter ended March 27,
2022 as well as in Item 1A. Risk Factors of the company's
Annual Report on Form 10-K for the year ended December 31, 2021the company's April 27, 2022 earnings press release.
Shareholders, potential investors, and other readers should
consider these factors in evaluating, and not place undue reliance
on, the forward-looking statements. The forward-looking statements
in this press release are made as of the date of this press
release, and the company disclaims any obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
The company's ability to meet the objectives, milestones,
outlooks, targets, and goals noted in this press release depends
upon, among other factors, the company's ability to: (i) execute
its business plans and strategies, including The Hardwire and
Hardwire Stage II, including each of the pillars of the plan; (ii)
the evolution of LiveWire as a standalone brand, including the
proposed separation of LiveWire into a separate business of the
company through the combination of LiveWire and AEA-Bridges Impact
Corp. ("ABIC") and realize the expected business benefits from the
combination of LiveWire with ABIC (the "Business Combination"),
which may be affected by, among other things: (1) the ability of
LiveWire to: (a) execute its plans to develop, produce, market, and
sell its electric vehicles; (b) achieve profitability, which
is dependent on the successful development and commercial
introduction and acceptance of its electric vehicles, and its
services, which may not occur; (c) adequately control the costs of
its operations as a new entrant into a new space; (d) develop,
maintain, and strengthen its brand; (e) execute its plans to
develop, produce, market, and sell its electric vehicles; and (f)
effectively establish and maintain cooperation from its retail
partners, largely drawn from the company's traditional motorcycle
dealer network, to be able to effectively establish or maintain
relationships with customers for electric vehicles; (2)
competition; and (3) other risks and uncertainties indicated from
time to time in the final prospectus of ABIC, including those under
"Risk Factors" therein, and other documents filed or to be filed
with the SEC by the company, LW EV Holdings, Inc. (HoldCo) or ABIC;
(iii) manage supply chain and logistics issues, including quality
issues, availability of semiconductor chip components and the
ability to find alternative sources of those components in a timely
manner, unexpected interruptions or price increases caused by
supplier volatility, raw material shortages, war or other
hostilities, including the conflict in Ukraine, or natural
disasters, and longer shipping times and increased logistics costs,
including by successfully implementing pricing surcharges; (iv)
develop and introduce products, services and experiences on a
timely basis that the market accepts, that enable the company to
generate desired sales levels and that provide the desired
financial returns, including successfully implementing and
executing plans to strengthen and grow its leadership position in
Grand American Touring, large Cruiser and Trike, grow its
complementary businesses, including Parts & Accessories and
Apparel & Licensing, and evolve as a global lifestyle brand;
(v) manage and predict the impact that new, reinstated or adjusted
tariffs may have on the company's ability to sell products
internationally, and the cost of raw materials and components,
including the temporary lifting of the Section 232 steel and
aluminum tariffs and incremental tariffs on motorcycles imported
into the EU from the U.S., between U.S. and EU, which expires on
December 31, 2023; (vi) successfully carry out its global
manufacturing and assembly operations; (vii) continue to develop
the capabilities of its distributors and dealers, effectively
implement changes relating to its dealers and distribution methods
and manage the risks that its dealers may have difficulty obtaining
capital and managing through changing economic conditions and
consumer demand; (viii) accurately analyze, predict, and react to
market demand, changing market conditions and attributes of the
population of motorcycle riders; and (ix) perform in a manner that
enables the company to benefit from market opportunities while
competing against existing and new competitors.
In particular:
- The statements in this press release relating to the
company's strategic plan, The Hardwire and Hardwire Stage II,
particularly the 2021-2025 financial targets and other potential
results from the plan, generally represent only the company's
goals, aims, and objectives regarding the plan and potential
results from the plan.
- While many statements use language that might imply a level
of certainty about the likelihood that the company will attain
these goals, aims, and objectives, it is possible that the company
will not attain them in the timeframe noted or at all.
- By their nature, the risk and uncertainty associated with
these goals, aims, and objectives are greater than that associated
with near-term guidance, and should not be construed as
guidance.
Therefore, investors should construe these statements
regarding The Hardwire and Hardwire Stage II only as goals, aims,
and objectives rather than promises of future performance or
absolute statements.
### (HOG-F)
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SOURCE Harley-Davidson, Inc.