Harley Davidson 2014 report

1. Harley
Davidson
2014 Report
1

2. Ontario
2
Sarnia
London
Niagara-on-the-LakeWindsor
Ontario
Thunder Bay
Sudbury
Kingston
Ottawa
Peterborough
Kitchener
Oakville
Mississauga
Barrie
Toronto
Oshawa
Harley-Davidson
has 18 retailers in Ontario
Pembroke
HawkesburyOwen Sound

3. Ontario: Demographics
Ontario has a population of 12,851,821 in 2011
Between the 2006 and 2011 Censuses, Canada’s
population grew 1.86 million or 5.9 per cent
About 37 per cent of the national growth occurred in
Ontario. Ontario population grew 5.7 per cent,
modestly lower than the national growth rate
Ontario residents had a median age of 40.4 years
which is slightly younger than the median age of
40.6 for Canada
3
12,851,821
POPULATION
2011
SOURCE: Statistics Canada
17,400,000
POPULATION PROJECTION
2036
SOURCE: Durham Region Planning
5.7%
ANNUAL GROWTH RATE
2006 - 2011
SOURCE: Statistics Canada
40.4
YEARS
MEDIAN AGE
2011
SOURCE: Statistics Canada

4. Ontario: Demographics
A majority of locations where Harley-Davidson retailers are located
have experienced slower growth than Ontario between 2006 – 2011
4
%change
2006-2011
Ontario 5.7%
9.2 9.1
7.7
6.7
5.7 5.6
4.7
3.7 3.5
2.9
2.1
1.6
0.9
0.5
-0.5
-1.1 -1.1 -1.3-2
0
2
4
6
8
10
Toronto
Ottawa
Oshawa
Mississauga
Kitchener
Barrie
Kingston
London
Pembroke
Blenheim
Peterborough
Sudbury
Sarnia
Niagara-on-the-lake
OwenSound
ThunderBay
Hawkesbury
Windsor
City

5. 25.9%
VISIBLE MINORITIES
2006
SOURCE: Statistics Canada
Ontario: Demographics
5
Women who make up over 51% of the population and
men made up 49% of the population
24% of men are between 25 – 59 years of age
25% of females are between 25 – 59 years of age
1 in 4 Ontarians is a member of a visible minority
South Asians, Chinese and Blacks accounted for 65.1%
of the visible minority market share
The vast majority of visible minority live in urban centers
49% 51%
POPULATION – BY GENDER
2011
SOURCE: Statistics Canada
FEMALEMALE

6. $34,084
PRIMARY HOUSEHOLD
INCOME PER CAPITA 2011
SOURCE: Statistics Canada
2.6
AVERAGE HOUSEHOLD SIZE
2011
SOURCE: Statistics Canada
$132,876
HOUSEHOLD DEBT
Ontario: Demographics
6
Net worth of Ontarians $464,693 an increase of 8.2%
over last year
Primary household income per capita in Ontario was
$34,084 compared with $33,759 for Canada
The average household size in Ontario was 2.6
persons in 2011, compared to the Canadian average
household size of 2.5 persons
In Ontario, the proportion of total private households
with only one person has increased over time, while
the proportion of larger households (five or more
persons) has decreased
Average consumer’s total debt (not including
mortgages) has increased nearly $200 to $27,131 (Q2,
2013)
Ontarian’s experienced an increase in total debt of
1.84% over Q2 2012
$27,131
AVERAGE CONSUMER’S
TOTAL DEBT

7. 6.5%
Q2 2013
UNEMPLOYMENT RATE
OSHAWA
Ontario: Economic
7
The most recent data, released in Q2 2013 for Ontario
shows that the size of the labour force has increased 1.2%
over Q2 2012
Over the past year, the province added just over 105,000
jobs, out of which 78,200 were full-time positions and
27,400 were part-time. When comparing the second quarter
of 2013 to that of 2012, the province’s unemployment,
participation and employment rates have all remained at
around the same level
During that period, the unemployment rate decreased from
7.8% to 7.5%, while the participation rate remained
unchanged
Unemployment rates among young people (15-24) is worse
than the Rust Belt states like Indiana and Ohio; only Illinois
and New York fared worse than Ontario
Young men fared worse than women, with 18.4%
unemployment rates versus 15.4% for women
LABOUR FORCE
Q2 2013
7,431,300
YOUTH (15 - 24)
Q2 2013
16.4%

8. SOURCE: Statistics Canada
POPULATION WITH POST-
SECONDARY EDUCATION
UNEMPLOYMENT RATE FOR
ADULTS WITHOUT PSE
Ontario: Economic
8
The percentage of the population aged 15
years and over with college, trade, or post-
secondary certification or a university degree
was 53.9% in Ontario compared to 53.6% in
Canada
Unemployment rates for adults with Post
Secondary Education was 5.6% compared
to 8.6% for adults without PSE
53.9%
8.6%

9. Ontario: Real Estate
9
Housing starts in the Ontario region were
trending at 63,785 units in October, compared
to 60,207 in September, according to Canada
Mortgage and Housing Corporation (CMHC)
The trend in Ontario starts is now pointing up
suggesting that more strength can be expected
in the months to follow
Ontario home prices managed to grow above
the general rate of inflation during the early part
of 2013. The average selling price during Q1
2013 was $393,170 which was a 2.4% increase
over the first quarter of 2012
Mortgage rates to see modest and gradual
increases, but will remain low
$393,170
AVERAGE MLS HOME PRICE
HOME STARTS
OCTOBER 2013
62,785
1 YEAR MORTGAGE
Q1 2013
3%
5 YEAR MORTGAGE
Q1 2013
5.21%

10. Average consumer non-mortgage
debt continues to rise
Average consumer non-mortgage debt increased nearly $200 to $27,131
an increase of 3.4% over the same quarter last year; this comes one
quarter after its first quarterly decline in nearly 2 years
Average consumer non-mortgage debt also continues to rise in Ontario;
Ontarians have added $1,729 in non-mortgage debt since Q2 2010
10Source: TransUnion, Q2 2013
AVERAGE TOTAL CONSUMER DEBT (EXCLUDING MORTGAGE)
NATIONAL AVERAGE
0.00
10,000.00
20,000.00
30,000.00
Q2 2010 Q2 2011 Q2 2012 Q2 2013

11. Total consumer debt increases were
seen across all categories
Consumer debt increased across all four categories; installment
loans and auto captives saw the largest quarter over quarter
increases with 5.52% and 3.37% respectively
Auto consumer debt has increased by nearly 29% since Q2 2010
11
Source: TransUnion, Q2, 2013
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
Credit Cards Line of Credit Installment Loan Auto Captives
Q2 2010 Q2 2011 Q2 2012 Q2 2013

12. The farther west you live in Canada,
the higher the debts
The farther west you live in Canada, the more likely you are to have larger
debts; British Columbians had the highest level of consumer debt in the
second quarter at $38,672
The increase in average debt was consistent throughout Canada, with all
provinces experiencing increases from a low in Ontario of 1.84% to a high in
Alberta of 7.70% over the previous Quarter
12
Source: TransUnion, Q2 2013
PROVINCES WITH THE HIGHEST TO LOWEST CONSUMER DEBT
$38,672
BC
$36,150
AB
$28,706
SK
$25,914
ON
$23,765
NB
$20,371
MB
$19,455
QC
◄HIGHEST
LOWEST►
VS

13. Delinquency rates remain low across
all major categories
Delinquency rates remain low across all categories, a positive sign
that Canadian’s are able to manage their debt
13
Source: TransUnion, Q2 2013
0.24%
-25.0%
-18.0%
CREDIT CARDS
0.17%
-7.5%
-10.4%
LINES OF CREDIT
1.14%
-3.59%
-7.7%
INSTALLMENT LOANS
0.10%
-4.39%
13.1%
AUTO CAPTIVES
DELINQUENCY LEVELS CONTINUE TO REMAIN LOW
ACROSS ALL MAJOR PRODUCT
Q2 2013
QUARTERLY
PERCENT CHANGE
YEARLY PERCENT
CHANGE

14. Retail: Mackie Harley Davidson,
Oshawa Ontario
14

15. Retail: Mackie Harley Davidson,
Oshawa Ontario (Sept. ‘13 vs. Sept. ‘12)
15
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS 1% - 21%
$1,002,894
$884,275
-12%
2012 2013
166 167
1%
2012 2013
53 46
19 16
34 30
2012 2013 2012 2013
20.46%
17.96%
text
text
text
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used

16. Retailer: Thunder Bay Harley
Davidson (Sept. ‘13 vs. Sept. ‘12)
16
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+55%)
$314,351
$370,201
+18%
2012 2013
57 52
-9%
2012 2013
20
20
8 3
12 17
2012 2013 2012 2013
21.05%
32.69%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

17. Retailer: Fox Harley Davidson,
Owen Sound (Sept. ‘13 vs. Sept. ‘12)
17
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+3%)
$778,976
$708,635
-9%
2012 2013
64 57
-11%
2012 2013
45
39
21 17
24 22
2012 2013 2012 2013
32.50%
38.60%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

18. Retailer: Duke’s Harley Davidson,
Blenheim (Sept. ‘13 vs. Sept. ‘12)
18
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+45%)
$423,150
$511,461
21%
2012 2013
38 30
-21%
2012 2013
26 26
19 18
7 8
2012 2013 2012 2013
18.42%
26.67%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

19. Retailer: Clare’s Harley Davidson,
Niagara-on-the-Lake (Sept. ‘13 vs. Sept. ‘12)
19
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (-7%)
$1,137,789
$1,083,840
-5%
2012 2013
134 131
-2%
2012 2013
65 65
20 24
45 41
2012 2013 2012 2013
33.58% 31.30%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

20. Retailer: Kitchener Harley Davidson,
Kitchener (Sept. ‘13 vs. Sept. ‘12)
20
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+24%)
$1,000,580
$1,311,539
31%
2012 2013
129 121
-6%
2012 2013
59
71
23 29
36 42
2012 2013 2012 2013
27.91% 34.71%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

21. Retailer: Motosport Plus Harley
Davidson, Kingston (Sept. ‘13 vs. Sept. ‘12)
21
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+7%)
$1,003,337
$1,027,395
+2%
2012 2013
103
93
-10%
2012 2013
58
52
26 21
32 31
2012 2013 2012 2013
31.07% 33.30%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

22. Retailer: Rocky’s Harley Davidson,
London, Ontario (Sept. ‘13 vs. Sept. ‘12)
22
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+47%)
$1,746,107
$2,227,431
+28%
2012 2013
162
149
-8%
2012 2013
88
118
37 49
51 69
2012 2013 2012 2013
31.48%
46.31%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

23. Retailer: Barrie Harley Davidson,
Barrie (Sept. ‘13 vs. Sept. ‘12)
23
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded NUMS (+0.1%)
$1,431,148
$1,526,496
+4%
2012 2013
161
129
-20%
2012 2013
79
90
23 45
56 45
2012 2013 2012 2013
34.78% 34.88%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

24. Retailer: Freedom Harley Davidson,
Nepean (Sept. ‘13 vs. Sept. ‘12)
24
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded NUMS (-20%)
$1,204,635
$975,262
-19%
2012 2013
149
131
-12%
2012 2013
60
52
16 21
44 31
2012 2013 2012 2013
29.53%
23.66%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

25. Retailer: Thunder Road Harley
Davidson, Windsor (Sept. ‘13 vs. Sept. ‘12)
25
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded NUMS (+12.8%)
$268,910
$399,169
+48%
2012 2013
70
82
+17%
2012 2013
16
25
13
17
3
8
2012 2013 2012 2013
4.29% 9.76%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

26. Retailer: Davies Road Harley Davidson,
Richmond Hill (Sept. ‘13 vs. Sept. ‘12)
26
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded NUMS (+9%)
$326,047
$928,448
+12%
2012 2013
155
157
+1%
2012 2013
48 50
18 17
30 33
2012 2013 2012 2013
19.35% 21.02%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

27. Retailer: Goulet Motosport Road Harley
Davidson, Hawkesbury (Sept. ‘13 vs. Sept. ‘12)
27
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded NUMS (-77%)
$449,213
$225,021
-50%
2012 2013
93 93
2012 2013
25
13
12
10
13
3
2012 2013 2012 2013
13.98%
3.23%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

28. Ontario Demographics
28
2.7
3.1
3.4
5.6
6.1
6.4
7
11.8
13.1
16.2
17.2
22.8
47
25.9
0 10 20 30 40 50
Greater Sudbury
Thunder Bay
Peterborough
Blenheim
Kingston
Barrie
Niagara
Oshawa
London
Kitchener
Windsor
Ottawa-Gatineau
Toronto
ONTARIO
Proportion of Visible Minorities,
Ontario - 2011
53.7
52.9
23.7
22.9
22.8
0 10 20 30 40 50 60
Mississauga
Richmond Hill
Ottawa
Windsor
Oakville
Highest Proportion of Visible
Minorities, Ontario CSDs - 2011
1 in 4 Ontarians (25.9%) is a member of a visible minority
South Asians, Chinese and Blacks accounted for 65.1% of the visible minority market share
The vast majority of visible minority live in urban centers

29. Quebec
at a glance
29

30. Quebec – At a Glance
 19 Retailers in Quebec
 100% of Quebec retailers
have less than 15% retail
penetration;
 37% of Quebec retailers
have less than 5% retail
penetration
 47% have seen an increase
in #New funded over 2012
Retailer Location SWR
Sept /13
Retail $ #New
Funded
#Used
Funded
Retail
Penetration
Ville de Quebec 504 $1,191,949 38 25 7.54%
Brossard 288 $1,027,095 23 36 7.99%
Montreal 260 $470,584 10 13 3.85%
Laval 257 $1,082,549 19 46 7.39%
St. Hyacinthe 220 $736,306 20 18 9.09%
Repentigny 206 $872,046 12 39 5.83%
Rimouski 169 $131,093 4 2 2.37%
Becancour 154 $340,494 12 4 7.79%
Saguenay 129 $158,981 3 7 2.33%
Gatineau 120 $580,617 17 14 14.17%
Sherbrooke 116 $308,066 6 10 5.17%
Shawinigan 103 $0 0 0 0%
Valleyfield 87 $126,943 5 1 5.75%
Victoriville 80 $219,526 7 3 8.75%
Val d’Or 77 $218,272 8 3 10.39%
Saint-Marie 72 $173,623 8 0 11.11%
Drummondville 50 $46,982 1 2 2.0%
Sept-Iles 37 $0 0 0 0%
Baie-Comeau 37 $10,500 0 1 0%
Order based on #SWR
30

31. Retailer: Rimouski Harley Davidson,
Rimouski (Sept. ‘13 vs. Sept. ‘12)
31
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (+2.98%)
$63,695
$131,093
+106%
2012 2013
168 169
+1%
2012 2013
4 6
3 2
1 4
2012 2013 2012 2013
0.60% 2.37%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

32. Retailer: Bécancour Harley Davidson,
Bécancour (Sept. ‘13 vs. Sept. ‘12)
32
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (-30%)
$545,064
$340,494
-38%
2012 2013
134
164
+15%
2012 2013
27
16
12
4
15 12
2012 2013 2012 2013
11.19% 7.79%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

33. Retailer: #10 NAME Harley Davidson,
CITY (Sept. ‘13 vs. Sept. ‘12)
33
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (-65%)
$224,927
$158,981
-29%
2012 2013
119
129
+8%
2012 2013
10 10
2 7
8
3
2012 2013 2012 2013
6.72% 2.33%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

34. Retailer: Carrier Harley Davidson,
Drummondville (Sept. ‘13 vs. Sept. ‘12)
34
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (-18%)
$20,045
$46,982
+34%
2012 2013
41
50
+22%
2012 2013
2
3
1
2
1 1
2012 2013 2012 2013
2.44% 2.0%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text

35. Retailer: Harley Davidson,
(Sept. ‘13 vs. Sept. ‘12)
35
Sold Warranty Registered (SWR)
Total # Funded
=0
51
37
-27%
2012 2013
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
text
text
text

36. Retailer: #10 NAME Harley Davidson,
CITY (Sept. ‘13 vs. Sept. ‘12)
36
Total Retail $ Sold Warranty Registered (SWR)
Total # Funded
NUMS (0%)
$0
2012 2013
40 37
-8%
2012 2013
0 1
0 1
0
0
2012 2013 2012 2013
0% 0%
Rank Total
Retail #
Rank SRW #
Rank #New
Funded
Rank NUMS
Text Text Text Text
New
Used
text
text
text
$10,500