Harley-Davidson, Inc. (NYSE:HOG) Q4 2022 Earnings Conference Call February 2, 2023 9:00 AM ET

Company Participants

Shawn Collins – Director-Investor Relations

Jochen Zeitz – Chief Executive Officer

Ryan Morrissey – President-LiveWire

Gina Goetter – Chief Financial Officer

Edel O’Sullivan – Chief Commercial Officer

Conference Call Participants

Craig Kennison – Baird

Robbie Ohmes – Bank of America

Fred Wightman – Wolfe Research

Joseph Altobello – Raymond James

James Hardiman – Citi

David MacGregor – Longbow Research

Gerrick Johnson – BMO Capital Markets

Jamie Katz – Morningstar

Operator

Thank you for standing by, and welcome to the Harley-Davidson’s Fourth Quarter and Year-end 2022 Earnings Conference Call. Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to Shawn Collins. Thank you. Please go ahead.

Shawn Collins

Thank you. Good morning. This is Shawn Collins, the Director of Investor Relations at Harley-Davidson. You can access the slides supporting today’s call on the Internet at the Harley-Davidson Investor Relations website. As you might expect, our comments will include forward-looking statements that are subject to business risks, that could cause actual results to be materially different. Those risks include, among others, matters we have noted in our latest filings with the SEC.

Joining me this morning are Harley-Davidson’s Chief Executive Officer, Jochen Zeitz; in addition, Chief Financial Officer, Gina Goetter is with us and also LiveWire President, Ryan Morrissey. In addition, Harley-Davidson’s Chief Commercial Officer, Edel O’Sullivan will join for the Q&A portion of today’s call.

With that, let me turn it over to our CEO, Jochen Zeitz, Jochen?

Jochen Zeitz

Thank you, Shawn, and good morning, everyone. As we conclude the second year of the Hardwire, our five-year strategic plan to drive profitable growth, Harley-Davidson delivered a strong finish to the year. We are pleased with our performance for 2022 with the execution of our strategic pillars, driving an 8% increase in revenue and a 14.1% increase in total HDI net income.

Through the foundational work of the Rewire and the execution of our Hardwire strategic plan, we have changed our overall approach and focus as a business from prioritizing unit growth at all costs, to a more holistic view on profitable growth of motorcycles, parts and accessories, apparel and licensing and Harley-Davidson Financial Services.

This strategy contributed significantly to the increase in our margin to 13.9% at HDMC excluding LiveWire, compared to 7.6% in 2019 with a three-point margin expansion and a much more effective and efficient allocation of our resources, leading to an EPS growth of 18% to $4.96 despite all the supply challenges that we had to face throughout the year.