Annual Shareholder Meeting May 20, 2010

Transcription

1 Annual Shareholder Meeting May 20, 2010

2 Safe Harbor Statement These materials include forward-looking statements. These statements are based on the current expectations of Garmin Ltd. and are naturally subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements containing words such as "proposed" and intends or intended and "expects" or "expected". By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. These factors include those discussed or identified in the filings by Garmin Ltd. with the U.S. Securities and Exchange Commission in its Annual Report on Form 10-K. Garmin Ltd. does not undertake any obligation to update publicly or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. 1

3 2009 Business Highlights Celebrated our 20 th anniversary of providing best-in-class products Continued to invest and innovate, gaining market share and growing earnings through a recessionary period Revenue of $2.95B EPS of $3.50, up 1% (up 3% without FX) Strong Outdoor/Fitness segment performance with 10% revenue increase up to $469 million 16.6M Units Shipped During 2009 More than 65M total units shipped since inception Global Leader in Navigation Market Share According to independent market research, Garmin has achieved a global PND market share of 36% in 2009 Garmin has maintained a strong #1 PND position in North America and a #2 market position in Europe Strengthened our position in all other markets that we serve 2

4 2009 Profitability and Cash Flow The depressed global economy impacted our business but we emerged as strong as ever due to improved profitability Solid 49% Gross Margin and 27% Operating Margin for the full year an improvement of 450 and 250 basis points, respectively Generated over $1 billion of free cash flow Debt-free with nearly $2 billion cash and marketable securities Paid $150 million in cash dividends during 2009 and a special $300 million dividend in April

5 Auto/Mobile Product Launches 4 nüvi 1200, 1300, 1400 Family Slimmer form factor and pedestrian navigation Public transit content enabled by our CityXplorer maps nüvi 1690 with nülink! Dynamic content service Wirelessly connects to our exclusive nülink! service providing internet based local search, traffic, weather, fuel prices, flight status and more nüvi 465T Designed specifically for the trucking market Garmin-Asus handsets nüvifone G60 launched in the US with AT&T nüvifone M20 (Windows Mobile) launched in various Asian markets nüvifone M10 (Windows Mobile) launched in Asia and Europe

6 Outdoor/Fitness Product Launches Forerunner 310XT Waterproof multi-sport solution for the triathlete Built-in base map with optional street maps Edge 500 Tracks speed, distance, time, GPS position, elevation, calories burned, altitude, climb and descent Approach G5 Garmin s first branded handheld designed specifically for the golfer Dakota Handhelds Touch-screen functionality to the mid-range price point for outdoor Features include 3-axis compass, barometric altimeter and wireless data sharing 5

7 Aviation Product Launches G3X and G500 glass cockpit systems Introduced for experimental, light sport and small aircraft aera Portable line with touch-screen designed for use in both the aircraft and the automobile Four models with a full range of features and functions to meet the need of every pilot GTS Traffic Advisory Systems Appealing to both OEM and retrofit customers WAAS-enabled GPS navigation for the helicopter market 6

8 Marine Product Launches Announcement of OEM relationships Fairline, Gulf Craft and Regal VHF / AIS Flagship marine radio for OEMs and high-end boat market AIS features four built-in receivers to allow identification and location of large vessels GPSMAP 6000/7000 Breakthrough in marine mapping graphics Appeals to larger boats and yachts GPSMAP inch touch-screen chartplotter Delivers technology to the entry-level boater previously reserved for the luxury market 7

9 Stock Performance Total Shareholder Return Garmin 54% S&P 22% NASDAQ 44% 8

10 Worldwide PND Market Share 9 Source: Canalys Data

11 10 Financial Results

12 11 Shareholder Return

13 12 Shareholder Returns

14 13 Segment Revenue

15 14 Segment Revenue

16 15 Operating Expenses

17 16 Cash Flow

18 17 Margin by Segment

19 Q1 Income Statement ($ Millions) Q Q Change Revenue (1%) Gross Profit % Gross Margin % 53.6% 44.9% 870 bps Advertising (26%) SG&A % R&D % Total Operating Expense % Operating Income % Operating Margin % 19.3% 13.3% 600 bps Other Income/(Expense) (38) 2 NA Income Tax 8 11 (27%) Net Income (24%) EPS (GAAP) (21%) Pro-Forma EPS (excl. FX) % Units Shipped (k) 2,137 2,416 (12%) 18

20 Balance Sheet ($ Millions) FY 2008 FY 2009 Q Cash & Marketable Securities 973 1,860 1,993 Accounts Receivable Inventory Deferred Income Taxes Prepaid Assets Property, Plant & Equipment Other Assets / Goodwill Total Assets 2,934 3,826 3,552 Accounts Payable Other Accrued Liabilities Income Taxes Payable Dividend Payable Deferred Revenue Deferred Income Taxes Shareholders Equity 2,226 2,836 2,555 Total Liabilities / Equity 2,934 3,826 3,552 19

21 20 Garmin Revenue

22 Investment Rationale Long-term growth opportunities within all four segments of our diversified business model Continued innovation and world class technology required to compete in the growing Location Based Services (LBS) industry Future opportunities in the emerging mobile handset and Automotive OEM markets Solid business execution by management Excellent operational and financial metrics Ability to scale the business to match market demand Very high return on capital (> 50%) Strong free cash flow and no debt creates flexible use of cash: Future acquisitions Stock repurchase Cash dividends Capital expenditures 21

23 Annual Shareholder Meeting