POWERFUL RULES THE WORLD

SYMBOL OF POWER BE READY

FOR THE JOURNEY OF POWER

YOUR GUIDEDEV LOHAN

In the Beginning…• It all started in Milwaukee, Wisconsin in 1903 when William,

Walter, and Arthur Davidson, along with William S. Harley, created the first Harley-Davidson in their family shed.

• In 1907, the Harley-Davidson Motor Company was Incorporated.

• Both WWI & WWII spurred growth for the company due to the militaries demand for HD’s economical motorcycles.

• After WWII, the improved American economy, and higher demands for Harley-Davidson bikes encouraged the company to expand its efforts and purchase additional manufacturing capacity.

• In 1969, after over sixty years of success and growth, Harley-Davidson merged with the American Machine and Foundry Company (AMF).

Still Growing…• As the 1970’s roll around,

the company responds to the “Customizing Craze” by introducing new models.

• In 1984, Harley-Davidson goes public, and by 1987, is listed on the NYSE.

• By the end of the 1990’s, Harley-Davidson buys up Buell Motorcycle Company, and expands its business.

• Currently, Harley-Davidson continues to experience growth in all areas of sales and production.

The Business NYSE: HDI

• Manufacturer of motorcycles and motorcycle

parts and accessories.• 8,900 Employees

• “Harley-Davidson, Inc. is an action-oriented, international company, a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders. Harley-Davidson believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities.”

- Harley-Davidson “Vision”

Human resourceHarley-Davidson, Inc.

Workforce is extremely loyal 98% retention rate Sense of intense pride People want to work there Workforce has grown primarily from inside.

Environment before 2007

Human resourceHarley-Davidson, Inc.

Workforce maturity stellar growth would not last forever, impending retirement of the baby boom generation, to cultivate new streams of talent, to maintain high degrees of employee engagement, to find ways to leverage the workforce into increased

global competitiveness.

Then why Harley need HR reforms

Accenture model-Workforce and HR Performance are a top Executive Priority…

Key HR Initiatives

14%

11%

12%

11%

6%

64%

65%

66%

68%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Improving the delivery of HR services

Improving employee engagement with/advocacyfor the company

Facilitating organizational change

Improving the adaptability of the business to newopportunities

Improving worker productivity

Satisfaction with Progress Importance

©Accenture 2004 All Rights Reserved. Patent Pending. 8

Source: The Accenture High-Performance Workforce Study 2004

…Yet few executives are highly satisfied with their progress on these initiatives

High Performance businesses are characterized by leading edge human capital capabilities.

9©Accenture 2004 All Rights Reserved. Patent Pending.

Human Capital Efficiency

Workforce Adaptability

Workforce Performance

Talent Management

Ability to ChangeEmployee Engagement

Leadership Capability

High PerformanceFramework

HighPerformanceAnatomy

MarketFocus

DistinctiveCapabilities

Human CapitalCapabilities*

* Tier 3 of Accenture’s Human Capital Development Framework

The Accenture Human Capital Development Framework is a tool to measure how well companies master these critical Human Capital

Capabilities

©Accenture 2004 All Rights Reserved. Patent Pending. 10

Productivity Quality Innovation Customers

Key Performance Drivers

Business Results

Human Capital Processes

Competency Management

Career Development

Performance Appraisal Succession Planning Recruiting Workforce

PlanningWorkplace Design

Rewards and Recognition

Employee Relations

Human Capital Strategy

Learning Management

Knowledge Management

Human Capital Infrastructure

Human Capital Capabilities

Tier 1

Tier 2

Tier 3

Tier 4

Workforce Performance

Employee Engagement Workforce Adaptability Ability to

ChangeTalent Management

LeadershipCapability

Human Capital Efficiency

Workforce Performance

Employee Engagement Workforce Adaptability Ability to

ChangeTalent Management

LeadershipCapability

Human Capital Efficiency

Change Management

Revenue Growth

ROIC or ROE (FS only)

Total Return to Shareholders Future Value Illustrative Business Measures

Human resourceHarley-Davidson, Inc.

Actionable appraisal plan HR information system-audit and strategies, HR infrastructure Workforce planning, rewards and recognition Maintain high degrees of employee engagement, Leverage the workforce into increased global

competitiveness.

After effect of Accenture

The Road AheadWith brand new models introduced in market, Harley-Davidson expects continued success throughout the coming year.

There are several economical concerns that the company will continue to keep in mind:

• Rising fuel prices that may impact sales• Rising interest rates

• Lowered consumer confidence

However, based on the growth that Harley-Davidson has experienced over the past decade, as well as the intrinsic valuation and ROE analysis, it is clear that this company is in it for the long haul.

THANK YOU