These materials include forward-looking statements. These

Transcription

0
Notice
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.
Garmin Overview
Global Supplier of Navigation,
Communication and Information Products
A History of Successful Growth

Profitable every year since the Company’s inception in 1989
World-wide presence and distribution
Vertical integration mitigates risk
Strategic emphasis on market segmentation
Global leader in each market we serve
World-wide employment of nearly 8,000 associates
Four Business Segments – All with Growth Opportunities

Auto/Mobile – PND, OEM and wireless solutions
Aviation - Integrated Flight Decks, panel mount and portable avionics
Outdoor/Fitness - handheld and wearable products
Marine - sonar, radar, weather, 3-D marine cartography, networking
2007 Revenue of at Least $2.90 Billion — up 63%
2007 Earnings per Share of at Least $3.40 — up 45%
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History of Consistent Growth
($ in Millions)
$3,000
Revenue
$2,500
Net Income
$2,000
$1,500
$1,000
6%
3
R:
G
CA
E
NU
E
V
RE
2%
3
R:
G
CA
E
OM
C
IN
T
NE
$500
$0
'00
'01
'02
'03
'04
'05
'06
'07 est.
Profitable every year since the Company first began selling product in 1991.
3
Unit Growth
6,783
7,000
Units (in thousands)
6,000
5,500
5,000
4,000
3,027
3,000
2,066
2,000
1,226
1,319
2000
2001
2,306
1,557
1,000
0
(Units in Thousands)
4
2002
2003
2004
2005
2006
2007 Q3
YTD
Human Resources
7,901
8,000
Garmin North America
Taiwan
Garmin Europe
7,000
6,000
5,000
4,286
4,000
3,034
3,000
2,484
2,020
2,000
1,000
8
45
278
119 334
'89
'90
'91
446
614
908 1,042
759 851
1,297 1,329
1,575
0
(# of Associates)
5
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
YTD
Associate Retention & Compensation
Company wide, Garmin retains ~95% of its
workforce annually
Attract and retain talent through competitive
compensation that is equitable externally and
internally
Reward performance through salary, bonuses,
employee stock purchase program, stock
appreciation rights, retirement plans and
pension, and academic assistance and
professional development
(# of Associates)
6
Markets We Serve
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Automotive / Mobile

Marine

Outdoor / Fitness

Aviation
•
•
•
•
•
•
•
•
•
•
•
•
PND’s
Mobile on and off board applications
OEM aftermarket and factory
Handhelds and chartplotters
Radar, sounders, autopilots, networks
OEM aftermarket and factory
Personal GPS and fitness
Communication devices
Wireless tracking
General aviation GPS products
Communication, radar and autopilots
Revolutionary glass cockpits
Market Diversification
Aviation
Marine
Product Depth
Auto / Mobile
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Market Breadth
Outdoor/Fitness
Vertical Integration
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Garmin’s strategy
• In-house design and manufacturing, distribution, marketing,
sales, customer support
• Control the entire process
• Create jobs
• Utilize inventory as a business tool

Results
• High levels of innovation, flexibility, and responsiveness
• Manage risk
• Reduce cost
• Higher growth and stability
Industry Growth Drivers
GPS is a premier growth industry
Increased
Utility
Improved
Accuracy
Miniaturization
Mapping
Information
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Internet
Growth
Real-Time
Weather and
Traffic Data
Technology
Convergence
Mobile
Computing
Wireless
Connectivity
Innovations and Patents
Garmin is expected to invest $155 million in

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2007 into research and development
Garmin has more than 1,275 engineers
worldwide
324 U.S. and 24 Foreign Patents Issued
188 U.S. and 20 Foreign Pending Applications
Constituent of the Ocean Tomo 300 Patent
Index based on the value of Garmin’s patent
portfolio
Global Presence
Salem, OR
• Aviation R&D
• Aviation Mfg.
• 185 employees
Newport, OR
• Marine R&D
• 25 employees
Calgary, Alberta
• Fitness / Wireless Technology
• 65 employees
UK Headquarters
• Sales and Support
for Europe, Africa
and Middle East
• 225 employees
Tempe, AZ
• Software R&D
• 15 employees
Munich, Germany
• Distribution
• 65 employees
Shijr, Jhongli & LinKou
Taiwan
• Consumer Mfg.
• R&D
• Sales, Distribution, and
Support for the Pacific
Rim
• 5,225 employees
Paris, France
• Distribution
• 60 employees
Olathe, KS (Headquarters)
• Primary R&D Center
• Aviation Mfg. and Certification
• Sales, Distribution, and Support for
the Americas
• 1,980 employees
7,900 total employees
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Chicago, IL Retail Store
• 30 employees
Minneapolis, MN
• Fitness, Wireless R&D
• 25 employees
GARMIN Products Sold
Taiwan Manufacturing
SHIJR
Facilities

Shijr – 260,000 square feet
Jhongli - 250,000 square feet
LinKou - 580,000 square feet
Capacity

Expanded to 37 SMT lines
Annual capacity of 25M units
LCM clean room
Module assembly
Optical enhancement
5,225 Employees

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JHONGLI
QA
Production
Product development
Regional cartography
Regional languages
LINKOU
North American Operations

Approximately 750,000 square feet of
space supporting:
•
•
•
•
•
•
•

Administration
Primary R&D center
Aviation manufacturing
Marketing
America’s customer support
America’s product repair
Warehouse
ISO 9001:2000 certified
OLATHE
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European Operations

Approximately 155,000 square feet of office
and warehouse space

Multi-lingual staff to support EMEA market

Dedicated EU product support

Corporate communications
• Concept, design and production inhouse

Garmin owns distributors in Germany and
France
• Plans to acquire current distributors in
Italy, Spain, and Denmark

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ISO 9001:2000 certified
SOUTHAMPTON
Organic Growth, Acquisition Growth
Organic Growth

New European Headquarters
Southampton, UK (Jan. 2007)
Workforce grew from 84 in Jan. 2006 to 222 in Sept. 2007
Facilities grew from 33,600 sq. ft. to 155,000 sq. ft.
Acquisition Growth
UPS Aviation Technologies
Salem, Oregon (acquired in July 2003)
Expanding from 150 associates to 250 by December 2010
Facilities growing by 66,000 square feet by Q2 2008
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Chicago Retail Showcase
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Located on the “Magnificent Mile”
at the corner of Erie and Michigan
Avenue in Chicago

Three-story, 15,000 square feet
showcase for products and
technologies

World’s first and only retail outlet
dedicated to GPS navigation

Enhance brand awareness and
support existing retail partners

High tech, high touch consumer
experience in one of the highest
foot-traffic retail locations in North
America
Aviation Segment
Leader in the General Aviation Market
Leading Provider of OEM, Retrofit, and
Portable Aviation Equipment to the General
Aviation Market

Over 90,000 430/530 units in service
Over 4,000 G1000 glass cockpits in
service
Over 700 general aviation distributors
worldwide
Strong market share:
• Retrofit: >80%
• OEM: >60%
• Portable: >95%
Partner with Industry-leading Aircraft
Manufacturers: Bell Helicopter, Cessna,
Cirrus, Columbia, Diamond, Embraer,
Eurocopter, Hawker Beechcraft, Honda,
Kodiak, Mooney, Piper, Socata
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Cessna Mustang
Embraer Phenom 100
Marine Segment
Leading Manufacturer of Marine Electronics
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Broad Range of Products – GPS
chartplotters, sonar, radar, real-time
weather, autopilot, networking capabilities,
multi-function displays – including new
touch screen display with intuitive interface

Revolutionary Bluechart g2 “Vision”
Cartography – True 3D mapping views,
detailed satellite imagery

Strong market share in marine electronics
market of > 30%
Outdoor/Fitness Segment
Leading Manufacturer of
Outdoor and Fitness Products

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Broad Range of Products – basic to
advanced navigation features, highsensitivity GPS/WAAS, family radio
service (FRS), dog tracking
Fitness applications including cadence,
heart rate, foot pods, training software
and fitness community
Strong market presence in major retailers
and specialty retailers catering to skilled
enthusiasts - Best Buy, Circuit City, WalMart, Target, REI, Cabela’s, Dick’s, Bass
Pro Shops
Automotive
Global Leader in Portable Navigation Market

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Full Range of Product Offerings – basic to
advanced navigation features
Mobile on and off board applications
Industry-leading features:
Bluetooth hands free
Real-time traffic
Speaks street names
Gas prices
High sensitivity GPS
Movie listings
MP3 player
Weather
Audio books
Safety cameras
Garmin Lock
Discount finder
50% Market share in North America, 20%
Market share in Europe
Highest volume market segment
Variety of price points – sub $199 and up
PND Product Portfolio Strategy
StreetPilot 7200 / 7500
nüvi 200W / 250W
nüvi 200 / 250 / 260 / 270
nüvi 300 / 310 / 350 / 360
StreetPilot c330 / c340
zūmo 450 / 550
nüvi 750 / 760 / 770
nüvi 600 / 610 / 610 / 650 / 660 / 670 / 680
StreetPilot c530 / c550 / c580
Quest / Quest II
More product offerings than any other auto nav manufacturer in the market
today… a business model that WORKS.
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Wireless Solutions
On Board – Garmin Mobile 10, 20, XP (“Thick
Client”)

Intuitive, industry-leading user interface, ready to
navigate out of the box
3D maps and advanced features such as saved
routes and tracks
Rich, full-featured navigation application with
PND-like user experience
Off Board – Garmin Mobile (“Thin Client”)

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Robust Java application with moving map and
fluid, text-to-speech voice guidance
Rich, real-time content - traffic, fuel prices
Sprint “Vision” program available on 34 Java
handsets to date via monthly subscription
Digital Cyclone division expands LBS applications
Legacy of Innovation
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1989 – Company founded by Dr. Min Kao and Gary Burrell

1991 – First product, GPS 100, introduced

1998 – First GPS mapping-enabled mobile phone introduced

1998 – StreetPilot, first portable mapping GPS for automobiles

1999 – eTrex handheld outdoor navigation device introduced

2001 – StreetPilot III, first portable PND with turn-by-turn spoken directions

2002 – First GPS-enabled PDA introduced (iQue)

2002 – First GPS-enabled two-way radios introduced (Rino)

2003 – Groundbreaking G1000 integrated cockpit for general aviation introduced

2003 – First self-contained GPS fitness device introduced (Forerunner)

2004 – Garmin Marine Network integrated system for boats introduced

2005 – Industry-leading “Where To/View Map” simplified user interface introduced

2005 – nüvi, first pocket-sized Personal Travel Assistant
Critical Acclaim

Our Company

“What Garmin has done is nothing short of invent a new consumer
electronics segment.” (US News & World Report, 01.22.07)

Dr. Min Kao built Garmin “…into an industry leader by focusing on
technology innovation and customer needs.” (Investor’s Business Daily,
10.04.07)

Named a Forbes “Global High Performer,” which are “fast-growing,
adroit and well-managed companies that help set the benchmarks for
their respective industries.” (Forbes, 03.29.07)
Listed as one of “America’s 400 Best Big Companies” and “Best of the
Best” in Technology Hardware & Equipment (Forbes, 01.08.07)

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Garmin ranked 22nd “Most wired company in the World” one of the
“masters of innovation and technology.” (Wired Magazine, 03.07)
Dr. Kao ranked #23 of “50 People Who Matter Now” – the most
influential people in technology business today (Business 2.0, 07.07)
Critical Acclaim

Our Products
nüvi 660 and nüvi 350 top-rated PNDs (Leading consumer

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magazine, 10.07)
nüvi 680 rated “Editor’s Choice” (GPS Magazine.com, 02.07.07)
“Quite simply, it is really hard to go wrong with the nüvi 760.”
(GPS Review.net, 10.21.07)
“The nüvi is a strong performer in an increasingly competitive
field.” (BusinessWeek, 01.30.06)
“The StreetPilot [c580] will please both Luddites and tech geeks.”
(Business 2.0, 07.07)
Astro GPS Dog Tracking System named “Best of the Best”
hunting gear (Field & Stream, 09.07)
“…I have never seen an airplane or new avionics system cause
as much excitement as Garmin’s new G1000 glass cockpit
system has.” (Flying, 01.04)
Philanthropy

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Garmin Electrical and Computer Engineering (ECE) Educational
Initiative
Endowed with $10 million from the Kao Family Foundation
Offers 100 college scholarships worth $5,000 per year per
student for those studying electrical and computer
engineering.
Paid internships, housing, and health insurance included
Total package is estimated at $20,000 per year to each
recipient.
Donated GPS units and money to relief effort during Hurricane
Katrina and Asian Tsunami
United Way employee pledge drive with matching donations from
Garmin
Garmin promotes a culture of giving in communities where the
company does business