Harley-Davidson, Inc.Harley-Davidson, Inc.Corporate Plan PresentationCorporate Plan Presentation

20102010

Board of DirectorsBoard of Directors Human Resources Manager (HRM)Human Resources Manager (HRM)

Jennifer TimmonsJennifer Timmons Chief Financial Officer (CFO)Chief Financial Officer (CFO)

Drew LisenoDrew Liseno Chief Marketing Officer (CMO)Chief Marketing Officer (CMO)

Michael CarignanMichael Carignan Chief Operating Officer (COO)Chief Operating Officer (COO)

Kenneth UpsallKenneth Upsall Chief Information Officer (CIO)Chief Information Officer (CIO)

Belinda A. SanchezBelinda A. Sanchez

Mission Statement (HRM)Mission Statement (HRM)

Our mission is to simply fulfill dreams Our mission is to simply fulfill dreams through the experiences of through the experiences of motorcycling, by providing to motorcycling, by providing to motorcyclists and to the general motorcyclists and to the general public an expanding line of public an expanding line of motorcycles, branded products and motorcycles, branded products and services in selected market services in selected market segments.segments.

Vision Statement (HRM)Vision Statement (HRM)

Our Vision states, “Across Our Vision states, “Across countries Harley-Davidson aims countries Harley-Davidson aims to be an action-oriented, to be an action-oriented, employee focused company employee focused company creating beneficial situations for creating beneficial situations for stakeholders and everyone who stakeholders and everyone who we do business with.”we do business with.”

Harley-Davidson, Inc. Code of Harley-Davidson, Inc. Code of Conduct Conduct

Directed by HDirected by HRMRMThis Code of Conduct – along with This Code of Conduct – along with Harley-Davidson’s five overarching Harley-Davidson’s five overarching Values encourage Intellectual Values encourage Intellectual Curiosity within our actions:Curiosity within our actions:

To Tell the Truth, Be Fair, Keep Your To Tell the Truth, Be Fair, Keep Your Promises, Respect the Individual, and Promises, Respect the Individual, and provides a strong and time-tested provides a strong and time-tested framework to guideframework to guide . .

Harley-Davidson, Inc. Harley-Davidson, Inc. Financial Code of Conduct (HRM)Financial Code of Conduct (HRM)

1. I will act honestly and ethically in all my professional relationships.1. I will act honestly and ethically in all my professional relationships. 2. I will endeavor to avoid all conflicts of interests and in any case will immediately 2. I will endeavor to avoid all conflicts of interests and in any case will immediately

and fully disclose to the General Counsel of Harley-Davidson, Inc. any transaction or and fully disclose to the General Counsel of Harley-Davidson, Inc. any transaction or relationship that reasonably could be expected to give rise to an actual or apparent relationship that reasonably could be expected to give rise to an actual or apparent conflict of interest between the Company and me.conflict of interest between the Company and me.

3. I will ensure, to the best of my knowledge, the timely and understandable 3. I will ensure, to the best of my knowledge, the timely and understandable disclosure of information that is accurate, complete, objective, and relevant in all disclosure of information that is accurate, complete, objective, and relevant in all reports and documents filed with or submitted to the Securities and Exchange reports and documents filed with or submitted to the Securities and Exchange Commission or in other public communications that the Company makes.Commission or in other public communications that the Company makes.

4. I will endeavor to comply with all rules and regulations of federal, state, 4. I will endeavor to comply with all rules and regulations of federal, state, provincial and local governments, and other appropriate private and public provincial and local governments, and other appropriate private and public regulatory agencies.regulatory agencies.

5. I will act in good faith, responsibly, with due care, competence and diligence, 5. I will act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing my independent judgment to be without misrepresenting material facts or allowing my independent judgment to be subordinated.subordinated.

6. I will respect the confidentiality of information acquired in the course of my work 6. I will respect the confidentiality of information acquired in the course of my work and will not disclose such information, except when authorized or otherwise legally and will not disclose such information, except when authorized or otherwise legally obligated to disclose it. I will not use confidential information acquired in the course obligated to disclose it. I will not use confidential information acquired in the course of my work for my personal advantage.of my work for my personal advantage.

Financial Code of ConductFinancial Code of Conduct7. I will maintain skills important and relevant to the Company’s needs.7. I will maintain skills important and relevant to the Company’s needs.8. I will promote ethical behavior as a responsible partner among peers in my work8. I will promote ethical behavior as a responsible partner among peers in my workenvironment and community.environment and community.

9. I will responsibly use and exercise reasonable control over all assets and9. I will responsibly use and exercise reasonable control over all assets andresources employed or entrusted to me.resources employed or entrusted to me.

10. I understand that I am obligated to report questionable accounting or auditing10. I understand that I am obligated to report questionable accounting or auditingmatters or any violations to this Code to the General Counsel of Harley- Davidson, matters or any violations to this Code to the General Counsel of Harley- Davidson, Inc. or the Chairman of the Audit Committee of the Board of Directors of Harley-Inc. or the Chairman of the Audit Committee of the Board of Directors of Harley-Davidson, Inc. If I report questionable accounting or auditing matters to the Davidson, Inc. If I report questionable accounting or auditing matters to the General Counsel of Harley-Davidson, Inc. and I deem that my report has not General Counsel of Harley-Davidson, Inc. and I deem that my report has not received an appropriate response, I am required to report these matters to the received an appropriate response, I am required to report these matters to the Chairman of the Audit Committee of the Board of Directors of Harley-Davidson,Chairman of the Audit Committee of the Board of Directors of Harley-Davidson,Inc. I also understand that I can anonymously report questionable accounting or Inc. I also understand that I can anonymously report questionable accounting or auditing matters or any violations of this Code as provided in the Company’s Code auditing matters or any violations of this Code as provided in the Company’s Code of Business Conduct.of Business Conduct.

11. I understand that if I violate the principles of this Code, the Company may take11. I understand that if I violate the principles of this Code, the Company may takedisciplinary actions against me. Disciplinary actions may range from a verbal disciplinary actions against me. Disciplinary actions may range from a verbal warning to dismissal or referral for criminal prosecution, depending upon the warning to dismissal or referral for criminal prosecution, depending upon the situation.situation.

Harley-Davidson, IncHarley-Davidson, Inc..Financial Code of ConductFinancial Code of Conduct

12. I recognize that these principles and obligations are in 12. I recognize that these principles and obligations are in addition to those set forth in the Company’s Code of addition to those set forth in the Company’s Code of Business Conduct and any other code that I have sworn to Business Conduct and any other code that I have sworn to uphold which governs my professional and ethical conduct. uphold which governs my professional and ethical conduct. I also understand that I can anonymously report I also understand that I can anonymously report questionable accounting or auditing matters or any questionable accounting or auditing matters or any violations of this Code or the Company’s Code of Business violations of this Code or the Company’s Code of Business Conduct as provided in the Company’s Code of Business Conduct as provided in the Company’s Code of Business Conduct.Conduct.

Harley-Davidson, IncHarley-Davidson, Inc..Employment overview by HRMEmployment overview by HRM

•Just like the V-Twin beats at the heart of every bike we produce, the Harley-Just like the V-Twin beats at the heart of every bike we produce, the Harley-Davidson culture strongly propels our company to the successful heights we Davidson culture strongly propels our company to the successful heights we enjoy today. The H-D culture provides employees with continued enjoy today. The H-D culture provides employees with continued opportunities for growth and professional development because we believe opportunities for growth and professional development because we believe that people are our only long term competitive advantage. Our culture that people are our only long term competitive advantage. Our culture believes in providing high customer satisfaction by supplying products and believes in providing high customer satisfaction by supplying products and services that delight customers and offer value. And, our culture values and services that delight customers and offer value. And, our culture values and promote employee development, diversity, and leadership excellence. To promote employee development, diversity, and leadership excellence. To us, our culture is as strong as the iron and steel we put into our bikes, and us, our culture is as strong as the iron and steel we put into our bikes, and shines as bright as the chrome.shines as bright as the chrome.•Among other things, the values encourage employees to push back on all Among other things, the values encourage employees to push back on all levels of decisions and take calculated, measured risks in their work—a way levels of decisions and take calculated, measured risks in their work—a way of operating termed “freedom with fences." These efforts are underscored of operating termed “freedom with fences." These efforts are underscored by Harley-Davidson’s commitment to employee development and lifelong by Harley-Davidson’s commitment to employee development and lifelong learning, which includes numerous training programs and opportunities. learning, which includes numerous training programs and opportunities. Finally, a performance-management and succession-planning process that Finally, a performance-management and succession-planning process that annually brings together all senior leaders within each functional area to annually brings together all senior leaders within each functional area to discuss employee performance, bench strength, and potential ensures that discuss employee performance, bench strength, and potential ensures that employees’ talents are visible not just to their own supervisors, but to all employees’ talents are visible not just to their own supervisors, but to all managers within their area and across other functional areas.managers within their area and across other functional areas.

Harley-Davidson, Inc.Harley-Davidson, Inc.Employee Benefits directed by HRMEmployee Benefits directed by HRM

While becoming an employee of Harley-Davidson not only do we promise a While becoming an employee of Harley-Davidson not only do we promise a long-term rewarding career for you but we will provide you the following long-term rewarding career for you but we will provide you the following coverage and advancements in order for you to better your current life style. coverage and advancements in order for you to better your current life style. We seek employment opportunities for those who are only the best, We seek employment opportunities for those who are only the best, committed, and driven to become apart of our family oriented and wicked committed, and driven to become apart of our family oriented and wicked friendly staff.friendly staff. Medical Plan Medical Plan Prescription Drug Plan Prescription Drug Plan Dental Plan Dental Plan Vision Plan Retirement Plan – 401(k) and/or Pension Plan Vision Plan Retirement Plan – 401(k) and/or Pension Plan Life InsuranceLife Insurance Disability Benefits Disability Benefits Employee AssistanceEmployee Assistance Plan Flexible Spending Accounts Plan Flexible Spending Accounts Vacation and Holidays Vacation and Holidays Tuition reimbursement Tuition reimbursement Harley-Davidson Stock Purchase PlanHarley-Davidson Stock Purchase Plan Discounts and/or Financing on Company products Discounts and/or Financing on Company products Wellness Resources Wellness Resources Variable Compensation ProgramsVariable Compensation Programs

Harley-Davidson, IncHarley-Davidson, Inc..Strategic Approach directed by HRMStrategic Approach directed by HRM

Harley-Davidson Inc. designs, manufactures and markets heavyweight Harley-Davidson Inc. designs, manufactures and markets heavyweight motorcycles, parts, accessories, collectibles and riding apparel. motorcycles, parts, accessories, collectibles and riding apparel.

Harley-Davidson Inc. also provides through Harley-Davidson Financial Harley-Davidson Inc. also provides through Harley-Davidson Financial Services, named Eagle mark Financial Services, financing services Services, named Eagle mark Financial Services, financing services programs to dealers and retail customers. Harley-Davidson Inc. states, programs to dealers and retail customers. Harley-Davidson Inc. states, “We fulfill dreams through the experience of motorcycling, by providing to “We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments”. and branded products and services in selected market segments”.

The steps we plan to take provide us the direction to plan continued and The steps we plan to take provide us the direction to plan continued and increasing demand with goals directed towards specific motorcycles, increasing demand with goals directed towards specific motorcycles, merchandising, licensing, and assigned locations.merchandising, licensing, and assigned locations.

Continuing the level of high quality products Harley-Davidson Inc. Continuing the level of high quality products Harley-Davidson Inc. produces.produces.

Improve the information system network. Improve the information system network. Be a high performance company financially and establishing Harley-Be a high performance company financially and establishing Harley-

Davidson Inc. as a pioneer in co-determination practicesDavidson Inc. as a pioneer in co-determination practices..

Harley-Davidson, Inc.Harley-Davidson, Inc.Time Line from 2000-2010Time Line from 2000-2010

2000 The FXSTD Softail® Deuce™ is introduced to the immediate delight of riders and the 2000 The FXSTD Softail® Deuce™ is introduced to the immediate delight of riders and the motorcycle media.   The 2000 model year Softail® models are outfitted with the Twin Cam motorcycle media.   The 2000 model year Softail® models are outfitted with the Twin Cam 88B™ engine, a counter-balanced version of the Twin Cam 88.   Fuel injection is unveiled as a 88B™ engine, a counter-balanced version of the Twin Cam 88.   Fuel injection is unveiled as a feature new to the Softail line of motorcycles for the 2001 model year.     Buell introduces the feature new to the Softail line of motorcycles for the 2001 model year.     Buell introduces the Blast®, a single-cylinder motorcycle, for the 2000 model year. The Blast receives excellent Blast®, a single-cylinder motorcycle, for the 2000 model year. The Blast receives excellent reviews. It's introduced in tandem with the Rider's Edge® Academy of Motorcycling, a reviews. It's introduced in tandem with the Rider's Edge® Academy of Motorcycling, a beginner's rider course available through Harley-Davidson and Buell dealerships.   beginner's rider course available through Harley-Davidson and Buell dealerships.  

2001 The VRSCA V-Rod® is introduced for the 2002 model year. Inspired by the VR-1000 racing 2001 The VRSCA V-Rod® is introduced for the 2002 model year. Inspired by the VR-1000 racing motorcycle, the V-Rod is Harley-Davidson's first motorcycle to combine fuel injection, overhead motorcycle, the V-Rod is Harley-Davidson's first motorcycle to combine fuel injection, overhead cams and liquid cooling, and delivers 115 horsepower.   Harley-Davidson Racing announces the cams and liquid cooling, and delivers 115 horsepower.   Harley-Davidson Racing announces the latest addition to the team: 17 year old Jennifer Snyder, the first woman to win a national event latest addition to the team: 17 year old Jennifer Snyder, the first woman to win a national event in the Formula USA National Dirt Track Series.   Harley-Davidson announces expansions at the in the Formula USA National Dirt Track Series.   Harley-Davidson announces expansions at the Product Development Center (Milwaukee), as well as Tomahawk, WI, and York, PA, facilities.     Product Development Center (Milwaukee), as well as Tomahawk, WI, and York, PA, facilities.    

2002 The all-new Buell® Firebolt® storms onto the scene.   The Open Road Tour debuts in 2002 The all-new Buell® Firebolt® storms onto the scene.   The Open Road Tour debuts in Atlanta, GA, in July to celebrate the upcoming Harley-Davidson 100th Anniversary.   Atlanta, GA, in July to celebrate the upcoming Harley-Davidson 100th Anniversary.  

2003 Buell Motorcycle Company unleashes the Lightning® XB9S.   More than 250,000 people 2003 Buell Motorcycle Company unleashes the Lightning® XB9S.   More than 250,000 people come to Milwaukee for the final stop of the Open Road Tour and the Harley-Davidson 100th come to Milwaukee for the final stop of the Open Road Tour and the Harley-Davidson 100th Anniversary Celebration and Party.   Anniversary Celebration and Party.  

2004 For the 2004 model year, the Sportster® family models receive rubber engine mounting, 2004 For the 2004 model year, the Sportster® family models receive rubber engine mounting, a new frame, and a wider rear tire. Some Sportster® models receive a redesigned gas tank.   a new frame, and a wider rear tire. Some Sportster® models receive a redesigned gas tank.   The FLHRSI Road King® Custom is introduced. With its low rear suspension and wide The FLHRSI Road King® Custom is introduced. With its low rear suspension and wide handlebars, the FLHRSI brings a beach look to a classic Harley-Davidson motorcycle.   Andrew handlebars, the FLHRSI brings a beach look to a classic Harley-Davidson motorcycle.   Andrew Hines of the Screamin' Eagle®/Vance & Hines Harley-Davidson drag racing team clinches his Hines of the Screamin' Eagle®/Vance & Hines Harley-Davidson drag racing team clinches his first NHRA PowerAde Pro Stock Motorcycle Championship at age 21, the youngest champion in first NHRA PowerAde Pro Stock Motorcycle Championship at age 21, the youngest champion in NHRA history.   NHRA history.  

Harley-Davidson, IncHarley-Davidson, Inc..Time Line 2000-2010Time Line 2000-2010

2005 The XL 883L Sportster® 883 Low brings a lowered seating position to the 2005 The XL 883L Sportster® 883 Low brings a lowered seating position to the Sportster® line.   The FLSTNI Softail® Deluxe adds a sleek look to the Softail® Sportster® line.   The FLSTNI Softail® Deluxe adds a sleek look to the Softail® line and a paint scheme reminiscent of 1939 Harley-Davidson motorcycles. line and a paint scheme reminiscent of 1939 Harley-Davidson motorcycles. Also, the FLSTSC/I Softail® Springer® Classic revives looks from the late Also, the FLSTSC/I Softail® Springer® Classic revives looks from the late 1940s.  1940s.  

Andrew Hines wins his second straight NHRA Powerade Pro Stock Motorcycle Andrew Hines wins his second straight NHRA Powerade Pro Stock Motorcycle Championship. G.T. Tonglet, also of the Screamin' Eagle®/Vance & Hines Championship. G.T. Tonglet, also of the Screamin' Eagle®/Vance & Hines Harley-Davidson team, places second.   Harley-Davidson and the Muscular Harley-Davidson team, places second.   Harley-Davidson and the Muscular Dystrophy Association (MDA) mark the 25th anniversary of their partnership.     Dystrophy Association (MDA) mark the 25th anniversary of their partnership.    

2006 The first of the 6-speed transmissions are made available on 2006 model 2006 The first of the 6-speed transmissions are made available on 2006 model year Dyna™ motorcycles. Also joining the Dyna™ family is the FXDB/I Street year Dyna™ motorcycles. Also joining the Dyna™ family is the FXDB/I Street Bob™.   The 2006 model year includes the all-new FLHX/I Street Glide™, a Bob™.   The 2006 model year includes the all-new FLHX/I Street Glide™, a lower profile touring motorcycle.   Harley-Davidson unveils plans for an all-new lower profile touring motorcycle.   Harley-Davidson unveils plans for an all-new museum in Milwaukee, scheduled for opening in 2008.   Harley-Davidson museum in Milwaukee, scheduled for opening in 2008.   Harley-Davidson appoints Beijing Feng Huo Lun (FHL) as the first authorized Harley-Davidson appoints Beijing Feng Huo Lun (FHL) as the first authorized Harley-Davidson dealer on mainland China.    dealer on mainland China.    

2007 Eddie Krawiec joins the Screamin’ Eagle/Vance & Hines Harley-Davidson 2007 Eddie Krawiec joins the Screamin’ Eagle/Vance & Hines Harley-Davidson NHRA Pro Stock Team.   Kenny Coolbeth wins his second consecutive AMA Flat NHRA Pro Stock Team.   Kenny Coolbeth wins his second consecutive AMA Flat Track Twins Championship.   The XL 1200N Nightster arrives on the scene with Track Twins Championship.   The XL 1200N Nightster arrives on the scene with black rims, fork gaiters, and side mount license plate holder.   black rims, fork gaiters, and side mount license plate holder.  

Harley-Davidson, Inc.Harley-Davidson, Inc.Time line 2000-2010Time line 2000-2010

Announced for the 2008 model year, the new FXCWC Rocker introduces Harley-Announced for the 2008 model year, the new FXCWC Rocker introduces Harley-Davidson’s first swing arm-mounted rear fender and 2-into-1 Trick seat.   2008 The Davidson’s first swing arm-mounted rear fender and 2-into-1 Trick seat.   2008 The Touring family now has an all new frame, providing longer wheelbase, lower seating Touring family now has an all new frame, providing longer wheelbase, lower seating position and better maneuverability.   The all new Harley-Davidson Museum opens position and better maneuverability.   The all new Harley-Davidson Museum opens in Milwaukee on July 12. Located at 6th and Canal streets, the Museum showcases in Milwaukee on July 12. Located at 6th and Canal streets, the Museum showcases hundreds of classic and custom motorcycles, interactive exhibits and never-before-hundreds of classic and custom motorcycles, interactive exhibits and never-before-seen films and photographs.   In keeping with tradition, hundreds of thousands of seen films and photographs.   In keeping with tradition, hundreds of thousands of riders from around the world converge on Milwaukee to celebrate Harley-riders from around the world converge on Milwaukee to celebrate Harley-Davidson’s 105th Anniversary. Riders and dealers raise more than $6.7 million for Davidson’s 105th Anniversary. Riders and dealers raise more than $6.7 million for MDA. Entertainment includes the Foo Fighters and Bruce Springsteen. That same MDA. Entertainment includes the Foo Fighters and Bruce Springsteen. That same weekend, HOG marks 25 years with its own party.   Kenny Coolbeth clinches his weekend, HOG marks 25 years with its own party.   Kenny Coolbeth clinches his third consecutive Grand National Championship. On the drag strip, Eddie Krawiec third consecutive Grand National Championship. On the drag strip, Eddie Krawiec wins the fourth NHRA Pro Stock title for Harley-Davidson in five yearswins the fourth NHRA Pro Stock title for Harley-Davidson in five years

2009 Harley-Davidson announces expansion into India.     The AMA Flat Track team 2009 Harley-Davidson announces expansion into India.     The AMA Flat Track team wins yet another Grand National Championship, this time with Jared Mees at the wins yet another Grand National Championship, this time with Jared Mees at the top.     The 2009 model year brings the first three-wheeler for public purchase in top.     The 2009 model year brings the first three-wheeler for public purchase in the new FLHTCUTG Tri Glide Ultra Classic. Also new is the history-inspired Cross the new FLHTCUTG Tri Glide Ultra Classic. Also new is the history-inspired Cross Bones, a bobbed factory custom.Bones, a bobbed factory custom.

2010 The XL Forty-Eight is introduced, recalling the raw, custom Sportsters of 2010 The XL Forty-Eight is introduced, recalling the raw, custom Sportsters of earlier days.   Seth Enslow on a Harley-Davidson XR1200 breaks the world record earlier days.   Seth Enslow on a Harley-Davidson XR1200 breaks the world record for a long distance motorcycle jump on a Harley-Davidson at 183.7 feet. Previously, for a long distance motorcycle jump on a Harley-Davidson at 183.7 feet. Previously, the record was proudly held by Bubba Blackwell (1999) and Evel Kneivel (1975).the record was proudly held by Bubba Blackwell (1999) and Evel Kneivel (1975).

Marketing – Latin Marketing – Latin AmericaAmerica

Marketing – Latin AmericaMarketing – Latin America

Marketing - EuropeMarketing - Europe

Map Of Harley Locations in Map Of Harley Locations in USUS

Financial GoalsFinancial Goals Harley Davidson has a bright future Harley Davidson has a bright future

in the motorcycle industry and is in the motorcycle industry and is looking to grow sales not just in the looking to grow sales not just in the U.S. but also in Asia, Latin America U.S. but also in Asia, Latin America and Europe as well.and Europe as well.

Here are our financial goals that go Here are our financial goals that go along with our yearly plan.along with our yearly plan.

Year 1 Financial GoalsYear 1 Financial Goals Keep U.S. sales from decreasingKeep U.S. sales from decreasing From 2007 to 2008 they decreased 13%From 2007 to 2008 they decreased 13% Increases Sales for general merchandising Increases Sales for general merchandising

& licensing.& licensing. Increase sales for parts & accessories.Increase sales for parts & accessories.

Year 3 Financial GoalsYear 3 Financial Goals Increase sales by 25% from previous year.Increase sales by 25% from previous year. Work on manufacturing efficiency to Work on manufacturing efficiency to

decrease prices.decrease prices.

Year 5 Financial GoalsYear 5 Financial Goals Increase Sales in Asia by 10%Increase Sales in Asia by 10% Increase Sales in Europe by 10%Increase Sales in Europe by 10% Maintain overall sales with higher Maintain overall sales with higher

profitability due to new marketing profitability due to new marketing techniquestechniques

Financial StatementsFinancial Statements

2006 2007 2008 2009 2011 2013 CommentsNET REVENUEH-D Motorcycle 4,553,561 4,446,637 4,278,241 4,278,241 5,124,655 4,278,241Parts & Accessories 862,251 868,297 858,748 870,000 1,000,000 1,000,000 Increase sales for 2009General Merchandise 277,490 305,435 313,835 320,000 600,000 600,000 Increase sales for 2009Buell Motorcycle 102,227 100,534 123,086 123,086 250,000 275,000 Increase sales by 10% in Europe & Asia for 2013Defense & Other 5,157 5,945 20,397 20,397 40,000 40,000TOTAL 5,800,686 5,726,848 5,594,307 5,611,724 7,014,655 7,039,655 Keep U.S. Sales from Decreasing in 2009

Increase sales by 25% from 2009 for 2011Gross Profit 2,232,847 2,114,100 1,930,819 1,930,819 1,930,819 1,930,819HDMC Operating Expense 823,857 883,457 964,429 1,200,000 1,000,000 1,000,000 Increase Marketing & Promotions in 2009, eliminate certain locations within U.S. for 2011HDMC Operating Income 1,408,990 1,230,643 966,390 966,390 966,390 966,390HDFS Operating Income 210,724 212,169 82,765 82,765 82,765 82,765Corporate Operating Expense 22,561 17,251 20,131 50,000 50,000 50,000 Increase Marketing & Promotions 2009Total Operating Income 1,597,153 1,425,561 1,029,024 1,029,024 1,029,024 1,029,024Investment Income 27,087 22,258 9,495 9,495 9,495 9,495Interest Expense - - 4,542 4,542 4,542 4,542Income before Provision for Taxes 1,624,240 1,447,819 1,033,977 1,033,977 1,033,977 1,033,977Provision for Income taxes 581,087 513,976 379,259 379,259 379,259 379,259Net Income from Continuing Ops 1,043,153 933,843 654,718 654,718 654,718 654,718Net Income (Loss) from Disc Ops - - - - - -Extraordinary Items - - - - - -NET INCOME 1,043,153 933,843 654,718 654,718 654,718 654,718

Basic/Primary EPCS $3.94 $3.75 $2.80 $2.80 $2.80 $2.80Diluted EPCS $3.93 $3.74 $2.79 $2.79 $2.79 $2.79Weighted Average Shares:

Basic 264,453 249,205 234,225 234,225 234,225 234,225Diluted 265,273 249,882 234,477 234,477 234,477 234,477

Dividends Paid: $0.81 $1.06 $1.29 $1.29 $1.29 $1.29Domestic Revenue 4,629,895 4,206,427 3,853,242 3,853,242 3,853,242 3,853,242International Revenue 1,170,791 1,520,421 1,741,065 1,741,065 1,741,065 1,741,065

5,800,686 5,726,848 5,594,307 5,594,307 5,594,307 5,594,307

Harley Davidson Income Statement (In Thousands)

2013 2011 2009 2008 2007(Decrease)

Increase % Change Goal based on planNorth America RegionUnited States 218,939 218,939 251,772 -32833 -15% Keep US sales from dropping (2009)Canada 16,502 14,779 1723 10% Increase sales world wide 25% by year 3Total North American Region 294,158 235,441 266,551 -31110 -13%

Europe Region (Includes Middle East and Africa)Europe 40,725 38,866 1859 5%Other 4,317 3,436 881 20%Total Europe Region 54,910 45,042 42,302 2740 6%

Asia Pacific RegionJapan - 14,654 13,765 889 6% Increase Asian sales 10% in year 5Other - 10,595 9,689 906 9%Total Asia Pacific Region 34,515 31,377 25,249 23,454 1795 7%

Latin America Region 7,844 8,037 5,467 2570 32%Projected Increases in Retail Sales 392,211 Total Worldwide Retail Sales 388,289 313,769 337,774 -24005 -8%

Harley-Davidson Motorcycle Retail SalesHeavyweight (651+ cc)

CIO – Objectives & GoalsCIO – Objectives & Goals

For Research and Development (R&D) For Research and Development (R&D) Year 1:Year 1: implement customer surveys (via website, implement customer surveys (via website,

email, and sales receipts). Get the customers email, and sales receipts). Get the customers opinions of what works and what they would opinions of what works and what they would like to see.like to see.

CIO – Goals & ObjectivesCIO – Goals & Objectives

R&D – Year 3R&D – Year 3 Compile, analyze, and implement new ideas Compile, analyze, and implement new ideas

from customer surveys. After seeing what the from customer surveys. After seeing what the customers want the organization to improve customers want the organization to improve upon can test market some of the upon can test market some of the improvements.improvements.

CIO – Goals & ObjectivesCIO – Goals & Objectives

R & D – Year 5R & D – Year 5 Hold trade shows and conventions in the Hold trade shows and conventions in the

international markets (i.e. Latin America, international markets (i.e. Latin America, Europe, and Asia). Get our product out there Europe, and Asia). Get our product out there and present it in a laid-back and fun venue to and present it in a laid-back and fun venue to the consumer and entrepreneur (franchise).the consumer and entrepreneur (franchise).

Q & AQ & A