Auction Academy PresentationJuly 16th – Spokane, WA

Presenter Dave Woods

Harley Davidson, Inc. Vision

We fulfill dreams inspired by the many roads of the world by providing remarkable motorcycles and extraordinary customer experiences. We fuel the passion for freedom in our customers to express their own individuality.

Harley Davidson, Inc. Mission

We ride with our customers and apply this deep connection to every market we serve to create superior value for all of our stakeholders.

Harley Davidson, Inc. Legacy

In 1903 William Harley, Arthur Davidson and Walter Davidson built their first motorcycle in a wooden shed in the backyard of the Davidson home in Milwaukee, WI.

From these humble beginnings Harley Davidson has now grown to a global company with one of the strongest brands in the world.

Just recently, Harley Davidson announced Project LiveWire – the very first Harley electric motorcycle.

Harley Davidson Financial Services, Inc.

Captive Finance Company for Harley Davidson Motor Company

Formed in 1993

Operations in Plano, TX, Carson City, NV and Chicago, IL

HDFS Remarketing – Auction Objectives

Maximize resale values of all bikes sold at auction to help mitigate HDFS credit losses and protect the integrity of the H-D brand.

Support H-D dealer network by offering diverse and creative auction sales channels to help dealers source pre-owned bikes.

Support HDFS portfolio growth with strategic plans and auction offerings designed to provide H-D dealers with the first opportunity to purchase HDFS repossessions.

HDFS recognizes the importance of establishing and maintaining a strong relationship with our Auction partners and currently utilizes a variety of auction partners and locations to remarket our product.

WA

OR

CA

ID

MT

NV

ND

WY

UT

AZNM

CO

NE

SD

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL IN

KY

TN

MS GAAL

FL

MA

CT

NH

VT

MI

OH

PA

NY

ME

VA

NC

SC

- RI

NJ

MD- DE

AK

- HI

HDFS Auction Site Map

WV

* Effective 01/21/13

So. Cal

HDFS Remarketing – Repo Volume

HDFS Repossession volume has dropped significantly over the past few years

HDFS Remarketing - Sales Channels

Live open sales Live closed sales Special event guest sales Multi-venue simulcast-only sales Harley Davidson Dealer Exchange

(HDDX) – HDDX is a mid-stream H-D branded “eBay” style website offering HDFS inventory in a closed environment 24/7x365 administered by National Powersport Auctions

HDFS / Auction Partners – Core Competencies

Pickup and transport of units

Detail and presentation of units

Lineup and run order

Reconditioning

CR grading

Marketing

Special promotions

HDFS CR Grading Scale

0-5 CR grading scale at all non-NPA auction venues– NPA utilizes a more complex, wider-grading range

HDFS Auctions - Additional Information

All HDFS live sales are attended by one of our Auction Representatives who establish our reserve prices.

H-D product often has extensive customization so our Auction Reps must have strong H-D product knowledge and background.

HDFS utilizes hybrid auction sales model depending on the venue – bikes are either staged using a mobile auction block or driven thru the lane similar to a car auction.

HDFS Auction – Key Metrics 2013

Simulcast purchase rate for all live sales 42%Conversion Rate 91%Authorized H-D dealer purchase rate 42%Average Loss per unit sold $5,116Average $ spent per unit on reconditioning $69

Q & A

???