3700 West Juneau Avenue
Milwaukee, Wisconsin 53208
March 29, 2019
Dear Fellow Shareholders,
In July we announced the More Roads to Harley-Davidson plan an acceleration of our strategy to build the next generation of Harley-Davidson riders, grow
motorcycling and return our business to growth through 2022. Our execution is on track, and we met or exceeded all stated plan milestones in 2018. We are energized that were getting new and different people to stand up and take notice of
Our current riders remain deeply engaged in the brand and tell us they too are excited at the direction we are headed. Its clear that the
groundwork for an exciting future is being built in real time.
The More Roads to Harley-Davidson plan addresses the challenges of today and the opportunities ahead
of us through three growth catalysts: new products, broader access and stronger dealers.
We continue to demonstrate our clear commitment to the passions and preferences of our current riders. Our 2019 motorcycles are hands down our best ever we
launched new models and debuted rider confidence, performance and infotainment features.
Our commitment to lead the electrification of motorcycling is also clear.
In 2018, our first electric Harley-Davidson model, LiveWire made its debut, and we also provided a public glimpse of our broader electric portfolio.
before the first LiveWire is in the hands of the first owner, we are reaping the strategic value of this extraordinary motorcycle. The buzz is captivating and inspiring new people about whats possible from Harley-Davidson and why riding
is an exciting and emotionally charged activity filled with adrenaline and fun.
We are accelerating our progress to grow Harley-Davidsons reach and relevance by aligning our efforts in an integrated way, to attract and increase value for new
and different consumers and meet people where they are and how they want to engage.
In line with our plans to reach more urban dwellers and expand in emerging
markets, 23 Harley-Davidson apparel stores were opened in high foot traffic areas throughout Asia in 2018. These stores offer a unique line of branded apparel, which we know is a gateway into Harley-Davidson. In our sample survey, over
75 percent of shoppers said it was their first visit to any Harley-Davidson store and over 60 percent were under 34 years old.
In 2018, we also launched
eCommerce in the U.S. (Amazon) and in China (T-Mall) and enhanced our eCommerce store on H-D.com. In 2018, total eCommerce sales were up 32 percent.
We are building an integrated multi-channel retail experience that todays consumers expect and providing consumers an inspiring and convenient way to connect with
In an environment of rapidly
increasing customer expectations, we and our dealers must be prepared. Our dealers are critical as they bring the spirit of Harley-Davidson motorcycling to life each and every day.
We are emphasizing dealer capabilities, and we significantly increased support and incentives under a performance framework. Part of this work includes creating
conditions to enable dealer growth and improve the customer experience.
Stronger Dealers means optimizing our network composition, providing more meaningful support
tailored to individual dealers needs and expanding our international footprint. In 2018, 56 international dealerships were opened.