This presentation was the culmination of the Tuck Bridge Program for Summer 2010 (Session B)

1. Firm Valuation

3. Our value: $31.49

4. Market Value: $25.68

5. Brand loyalty and recognition worldwide

6. History of surviving economic downturns

7. Large amount of cash on hand in 20092

9. Marketing

10. Financial Analysis

11. Strategic Outlook

12. Valuation3

13. H-D Sells Motorcycles and Provides Captive Financing 4 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

15. Marketing

16. Financial Analysis

17. Strategic Outlook

18. Valuation5

19. Marketing the American Dreamthrough Brand Image All figures are presented in 000’s " We're not dependent on advertising or other traditional marketing techniques…They're selling transportation. We're selling dreams and lifestyle. There's a big difference.“ –Ken Schmidt 6 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

20. Marketing the American DreamDemographics Median Income Over Time ($ 000’s) 7 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

21. Marketing the American DreamPromotional Strategy 8 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

22. Global Market Share 9 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

23. H-D Geographic Segmentation by Total Revenue 12.2% 14.6% 9.7% 8.7% 13.1% 10.7% 15.0% 14.7% 14.7% 79.6% 74.7% 70.4% 70.6% 10 10 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

24. H-D Accounts for 22.3% of the U.S. Motorcycle Market Share 22.3% 11 Company Overview - Marketing - Financial Analysis - Strategic Outlook - Valuation

26. Marketing

27. Financial Analysis

28. Strategic Outlook

29. Valuation12

30. H-D ROA Decreased Significantly over the Last Two Years 13 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

31. H-D Pure Play Approach 14 Harley-Davidson Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

34. Marketing

35. Financial Analysis

36. Strategic Outlook

37. Valuation16

38. Projected Effects of Re-structuring and Demographic Changes Forecasting 17 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

40. Consolidate plants in Wisconsin and Pennsylvania

41. Discontinue domestic transportation and fleet operation

42. Costs of re-structuring

43. Initial cost increases:

44. Total one-time charges of $430 to $460 M into 2012

45. Long-term cost cuts:

46. Annual ongoing savings of $240 to $260 M18 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

47. Projected Effects of Re-structuring and Demographic Changes Forecasting 19 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

48. H-D Needs to Focus on Younger Consumers as Baby Boomers Age Average Age Forecasting 20 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

49. Global Motorcycle Market Outlook and Growth Global Market ($B) Global Growth 21 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

50. Increasing International Dealerships 22 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

51. Increasing International Sales 23 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

53. Marketing

54. Financial Analysis

55. Strategic Outlook

56. Valuation24

57. Parameters and Assumptions 25 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

58. The Model 26 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

59. Scenarios 27 Company Overview -Marketing- Financial Analysis - Strategic Outlook - Valuation

61. Our value: $31.49

62. Market Value: $25.68

63. Brand loyalty and recognition worldwide

64. History of surviving economic downturns

65. Large amount of cash on hand in 200928

66. 29

67. Appendix 30

68. Sensitivity Analysis 31

69. WACC Calculation 32

70. The Model (Full) 33

71. History of Performance in Economic Downturns Motorcycle manufacturing titan Harley-Davidson (NYSE:HOG) nearly went bankrupt in the early 1980s when deteriorating product quality and competition from less expensive imports flattened operating results. A successful management buyout in 1981, an initial public offering in 1986 and a wildly successful campaign to market to baby boomers sent the company's stock soaring high for a few decades thereafter. http://stocks.investopedia.com/stock-analysis/2009/Harley-Davidson-Living-Low-On-The-Hog-HOG-PII-HMC0130.aspx But this isn’t Harley-Davidson’s first rodeo. It has demonstrated the ability to withstand the peaks and valleys of the unpredictable global marketplace before. The Motor Company has a habit of adopting the right strategies at the right time. The year before The Great Depression struck, the Harley-Davidson name was first stitched on a leather jacket. Now H-D merchandise is its third leading seller behind motorcycle sales and parts and accessories. In 1932, it came out with its first Servi-Car, a three-wheeler with a large cargo area in the rear. The Servi-Car helped them make it through the Depression and remained in production until 1973. http://www.motorcycle-usa.com/568/2312/Motorcycle-Article/Harley-Has-a-History-of-Survival-.aspx 34

72. Correlation between HOG and S&P 500 2004-2010 r = 0.667 Monthly Change in S&P 500 (%) Monthly change in HOG (%) 35

73. H-D Beta Sensitivity and Competitor Betas 36

74. Age of baby boomers between 1990 and 2015 37

75. Inventory 38

77. Strong growing middle class

79. Motorcycle Market Share by Total Revenue 40 9.7% 1.4%

80. Motorcycles for New Demographics 41 Iron 883 for younger riders XR1200X introduced in Europe

81. H-D Manufacturing & Assembly Plants Worldwide 42 Manufacturing Plants: United States Tomahawk, WI Menomannee Falls, WI Wauwatosa, WI Assembly Plants: United States York, PA Kansas City, MO International: Manaus, Brazil Malaysia Singapore Indonesia (India pending)