Johnson Outdoors
Annual Report 2005

Plain-text annual report

and Passion. with Innovation OWn the Adventure Johnson Outdoors Inc. 555 Main Street Racine, Wisconsin 53403-1015 USA (262) 631- 6600 www.johnsonoutdoors.com Business group overviews Included......... T h e S p i r i T o f A d v e n T u r e © 2004 by Permission of Imogene P. Johnson. All Rights Reserved, Courtesy of Johnson Keland Management, Inc.Summary Financial InformationDivingMarine Electronics Outdoor EquipmentWatercraft l e t t e r t O s h a r e h O l d e r s In 35 years, Johnson Outdoors has Smart innovation, featuring a grown from a single brand into a nearly meaningful difference and a clear diving We are transforming our businesses downriggers will add more depth streamlining, simplifying and and expand penetration for our improving efficiency with improved $400 million global organization. value, gives us a vital competitive one by one to enhance profitability. marine electronic portfolio of profitability as our goal. We have Today we are building on our rich edge and helps grow our customers’ This year, we turned our focus leading brands. heritage of continuous innovation to business. Coupled with smart deliver sustainable growth and investment, innovation expands enhanced shareholder value long-term. our technology horizon, our markets, to Diving, where European restructuring to improve operating efficiency is well underway. Outdoor equipment Consumer camping continues to a clear vision of the future with a firm, focused commitment to build upon our impressive history of product firsts. our brand equities, and yields We are consolidating four European be a challenging market segment, Revenue growth in 2005 measurable results. The effect on surpassed the industry. Total sales growth is clear: for the last three years, distribution centers into one central location, installing an and so we continue to work on Innovation helps to protect our delivering new products to bring margins, reduces the impact of were up seven percent over last year, new products have accounted for more integrated ERP system to capture excitement to this mature market. unpredictable markets and enhances than 25 percent of annual revenues. synergies, and implementing a The commercial tent segment growth regardless of economic Watercraft Complexities and redundancies have been reduced and operating efficiency has improved, although we have yet to reap the full benefit of simplification efforts. In five years, we have consolidated 16 Watercraft sites into five. Equally dramatic is the increased speed-to- market resulting from streamlined development and production. In 2005, new products drove double-digit growth in sales among our leading domestic and European customers. Our new-to-the-world Escape® electric watercraft achieved regional rollout goals and will expand nationally in 2006. Ocean Kayak® grew share in the exploding kayak fishing market, where sales have doubled in each driven by our rapid integration of Humminbird® and a company- wide renaissance of innovation. We are confident in the steps we have taken to create a more efficient, productive organization. of the past four years. And Old Town® will roll out sturdy hydrolite boats that are 20 percent lighter Our investments to spur and than competitor models, for the sustain profitable growth are growing female and baby-boomer transforming Johnson Outdoors, segments, further building upon this even as we return to our essential year’s successful DirigoTM kayak and core: market-leading innovation. Charles RiverTM canoe introductions. true global business model while remains flat, though our big tent trends. Our passion for both the supporting regional customers. expertise opened the door to lucrative, outdoors and our products is the high-margin military contracts over catalyst for innovation, which, At the same time, we are driving the past five years. The unpredict- coupled with efficient processes new product innovation to help ability of military sales makes and sophisticated research and rebuild momentum in the market, cost-efficient “right-sizing” a technology, has created a pipeline such as simpler, easier-to-use moving target. We are striving for brimming with new ideas and computers for the recreational diver, more military orders, while driving new products aimed squarely at and new underwater breathing regulators and diving gear for both novices and enthusiasts. Meanwhile, this year’s worldwide UWATEC® AladinTM dive computer launch is on track to be the most successful in Johnson Outdoors history. growth in other segments with new products, such as new Silva® digital instruments for skiers, runners and rollerbladers, and new Eureka!® solar-powered tents. market growth sectors. We are excited about the future for the next 35 years and beyond! We welcome you as our partners in this adventure. looking ahead We will continue working hard Sincerely, marine electronics Eighteen months ago we became to manage rising commodity and compliance costs, seeking purchas- a formidable competitive force ing leverage and raising prices if in the marine market with two great brands – Minn Kota® and Humminbird®. In 2005, sales in this division increased 32 percent warranted. Even more important, we remain focused on knowing our Helen P. Johnson-Leipold consumers and our markets better Chairman and —and turning that unique insight Chief Executive Officer due to fast and efficient integration into award-winning products. and new product innovation. We will continue to build on our brand equities, using the Minn Kota® name to expand and grow at home, and leveraging the strength of Humminbird® overseas. The recently acquired Cannon® The last five years have seen a transformation of Johnson Outdoors unmatched in our 35-year history. We are striving to optimize our business structure, processes and balance sheet, J O H N S O N O U T D O O R S – O U R P E O P L E Nando Zucchi Sergio Angelini Judy Douglas Josh Whitney T U R N I N G P A S S I O N I N T O I N N O V A T I O N (cid:39) (cid:54) (cid:38) (cid:45) (cid:42) (cid:47) (cid:40) (cid:1) (cid:40) (cid:51) (cid:48) (cid:56) (cid:53) (cid:41)(cid:1) Here are just a few examples of the powerful results Johnson Outdoors achieves through our employees’ passion for outdoor recreation and keen business insight. In a culture that encourages original thinking, aided by sophisticated R&D, we create innovative products that drive business growth and create long-term, sustainable value. Nando Zucchi G E N E R A L M A N A G E R , P A D D L E S P O R T S “If you don’t paddle, if you don’t know how the experience is supposed to look and feel, there’s no way you’ll get close enough to discover the consumer’s unmet needs.” Nando Zucchi practices what he preaches, kayaking in the someone designed a prod- uct for the way they want to use it,” Nando says. The Cornell MBA, who once built a wooden kayak in his garage, also emphasizes designing a product for the way it will be manufactured. In 2005, the DirigoTM generated 25 percent of Old Town® kayak sales, morning before work, often the most successful kayak with other Johnson Outdoors launch in the brand’s history. employees. Their trips inspire innovations like the popular Old Town® DirigoTM. “We’d go out paddling and see how uncomfortable beginners looked,” Nando Sergio Angelini G E N E R A L M A N A G E R , U W A T E C Sergio Angelini learned to scuba dive when taking breaks from researching says. “We heard consumers nuclear power plant safety talk about not liking to at the University of California. have their knees under the At Johnson Outdoors, cockpit, about fears of he combines his Ph.D in being trapped.” The DirigoTM mechanical engineering lets paddlers put their knees with his diving experience. in the center of the cockpit For example, he says, “I once while still ‘wearing the lost a dive sonar because boat.’ “People can’t believe I thought I’d put it in my buoyancy compensator (BC) pocket, but missed.” That Judy Douglas D I R E C T O R O F M A R K E T I N G , M A R I N E E L E C T R O N I C S lifting trolling motors in and out of the water on an ideas,” he says. Developing the new Silva® digital inspired a patented Johnson G R O U P all-day fishing trip. “Even instruments, he adds, “I Outdoors BC with more The childhood trips Judy accessible pockets. Personal Douglas took with her the macho guys started to complain.” Minn Kota® haven’t worn an analog watch for more than a year.” That perspectives are invaluable parents to a northwoods product developers turned experience makes a vital in product development, cabin have morphed into frustration into success with difference. On one eight- Sergio says. “We’re not getaways with her own the Maxxum ProTM trolling hour hike, Josh tested speed designing from a spec sheet. children, and one thing is motor. “It has a gas-assist and distance gauges built into We know what’s necessary constant: fishing. “Our five- cylinder, like an SUV a heart rate monitor worn on underwater.” Employees year-old is a fanatic,” Judy hatchback,” Judy explains. a rubber strap around the are encouraged to keep says. She and her team have Consumers love it—and chest. “This was summer on their diving equipment at turned a love of fishing into Judy says that’s no accident. the East coast—hot, humid the office, pursue advanced a marketable, competitive “When you have a team of and uncomfortable,” Josh certification and participate advantage with retailers, people who fish, you know says. He came back to work in team diving trips—all to writers and TV personalities what ideas will work.” with a design change: hikers produce unique products. “Without innovation, we might as well shut down,” spreading the word about Minn Kota®, Humminbird® and Cannon®. Like other Josh Whitney P R O D U C T M A N A G E R , S I L V A interested in only the speed and distance data can now remove the center of the strap Sergio says, adding that a Johnson Outdoors innovators, Josh Whitney augments his and wear it on a belt loop or focus is on rapidly changing Judy knows good things passion for recreation with an in a pocket. “That change electronics. “Compare cell happen when something MBA and a bachelor’s degree earned us placement with phones from ten years ago goes wrong. “It’s the in mechanical engineering, major retailers,” Josh says. to new ones with all the frustration you experience and he enjoys bringing work He adds, “Me-too products features,” he says. “We’re with a product that makes home. “Every day after work have no chance of succeeding; making the same advances in you think ‘This has got to I do some outdoor activity for long-term stability, we our dive computers. People change!’” she says. She —running, skiing, in-line have to innovate.” expect it, and we deliver.” points to the hassle of skating. That’s when I get my I N N O V A T I O N I N A C T I O N (cid:40)(cid:69)(cid:76)(cid:76)(cid:79)(cid:12) My name is James Allen and I am a fishing guide on Lake Texoma. I guide full time and fish all year long. I was fishing one of my “hot spots” yesterday, and was anchored down because it was kind of windy. When we decided to leave, I tried pulling in the anchor, but it was hung on something… This is the same spot [where] I lost another anchor last week, and I thought it was another tree limb or log or something like that. Imagine my surprise when I pulled up a 55-pound thrust trolling motor! I could tell that it had been down for a while because there was mud all over it, and moss had started to grow on it. The handle still turned pretty easily, as did the blade, so I took it back to my starting battery, and hooked it up. Guess what—it worked on the first try! I am going to take it apart and let it dry out, but it looks like I have another trolling motor in my arsenal. I’ve always used Minn Kota but really never had a preference of brands until now. If your product holds up this well under these conditions, then I am a customer for life…This more than makes up for the anchor I lost last week. Thanks again, James A. Blue Water Striper Guide Service Lake Texoma, Oklahoma (cid:50)(cid:37)(cid:35) (cid:37)(cid:46) (cid:52)(cid:44)(cid:57) (cid:12) (cid:0) (cid:41) (cid:0) (cid:37)(cid:54) (cid:33) (cid:35) (cid:53) (cid:33)(cid:52)(cid:37)(cid:36) (cid:0) (cid:34) (cid:50)(cid:37)(cid:35) (cid:37)(cid:46) (cid:52)(cid:44)(cid:57) (cid:12) (cid:0) (cid:41) (cid:0) (cid:37)(cid:54) (cid:33) (cid:35) (cid:53) (cid:33)(cid:52)(cid:37)(cid:36) (cid:0) (cid:34) (cid:50)(cid:37)(cid:35) (cid:37)(cid:46) (cid:52)(cid:44)(cid:57) (cid:12) (cid:0) (cid:41) (cid:0) (cid:37)(cid:54) (cid:33) (cid:35) (cid:53) (cid:33)(cid:52)(cid:37)(cid:36) (cid:0) (cid:34) (cid:50)(cid:37)(cid:35) (cid:37)(cid:46) (cid:52)(cid:44)(cid:57) (cid:12) (cid:0) (cid:41) (cid:0) (cid:37)(cid:54) (cid:33) (cid:35) (cid:53) (cid:33)(cid:52)(cid:37)(cid:36) (cid:0) (cid:34) (cid:12) (cid:0) (cid:45)(cid:12) (cid:0) (cid:45) as Hurricane Katrina headed for the Gulf Coast. In my haste to leave…I tied my Old Town Charles River canoe to a tree and left it. As you have seen on TV, the wall of water associated with this storm was 22+ feet high and driven by Category 4 winds. Well, the RV park was decimated…The entire park was under 22 feet of water! It was only yesterday, September 10, that I was able to return to try to find my beloved Charles River. Well, far back in the brush, tangled among the fallen trees and debris…I could see the two ends of my canoe. A neighbor and I dug and pulled and finally pried it from the rubble. Unbe- lievably, it was not only in one piece, it barely had a scratch on it! …Little in the park withstood the onslaught of this killer storm, but my Old Town canoe made it through to float down another river. Thank you, thank you for a product that uplifted my day. Even as I praise you and the fine products you manufacture, I am reminded of the terrible devastation I see as I walk thru Biloxi, and I realize how fortunate I am. I have always felt the Royalex was the most durable boat to buy; now I have an amazing story to illustrate the facts. Terry N. Parkers Landing Biloxi, MS R E C O G N I T I O N Over the past five years, Johnson Outdoors brand innovation has been recognized by some of the most respected names in (cid:40)(cid:73)(cid:0)(cid:37)(cid:85)(cid:82)(cid:69)(cid:75)(cid:65)(cid:1)(cid:1)(cid:0) I am a geology major at the University of South- outdoor recreation. ern Indiana, Evansville. And as a summer course, seven students and one instructor embarked on a 16-day field excursion to do some mapping in the Dakotas. Our first night out, May 12, we camped at the Badlands National Park in South Dakota. Of the eight tents set up, two were Eurekas. I have the Eureka Apex 2XTA, and my instructor, Dr. Jim Durbin, has the civilian version of your military combat tent. A winter storm came screaming through the Great Plains around 4:30 in the morning, with (estimated) 70-mile-an-hour straightline wind gusts, sleet, thunder and lightning. Our group thunder and lightning. Our group awakened to the sound of awakened to the sound of snapping tent poles and snapping tent poles and flapping, tearing taffeta. flapping, tearing taffeta. Not a good noise to hear in the middle of the night, during a winter storm, while stuck in the Badlands, trust me… To make a long story short, the next morning, the two Eurekas were the only tents that remained undamaged, dry inside, and habitable. So, again…a hearty THANK YOU from this lowly undergraduate geology student. I love my tent, and I love that my instructor knows I was the only student smart enough to bring great gear. Hopefully, in addition to saving my butt on the Plains, Eureka will get me an “A” in the class!! Sincerely, Elizabeth R. Fairfield, IL “Best-of-the-Best” Minn Kota® & Eureka!® Outside Magazine Eureka!® & Necky® International Convention of Allied Sportfishing Trades Minn Kota® Scuba Lab Top Performer Scubapro® Marine Aftermarket Marine Aftermarket Accessories Trade Show Humminbird® Paddler Magazine Paddler Magazine Old Town®, Ocean® & Necky® OUR FAMILY OF INNOVATIVE QUALITY BRANDS www.johnsonoutdoors.com Certain matters discussed in the Chairman’s Letter are “forward-looking statements” intended to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Please see “Forward Looking Statements” in the 2005 Form 10-K for a discussion of uncertainties and risks associated with these statements. Johnson Outdoors Inc. 555 Main Street Racine, Wisconsin 53403-1015 USA (262) 631- 6600 Nasdaq: JOUT T T F F A A R R C C R R E E T T A A W W S S C C I I N N O O R R T T C C E E L L E E E E N N I I R R A A M M G G N N I I V V I I D D T T N N E E M M P P I I U U Q Q E E R R O O O O D D T T U U O O ® ® ® ® ® ® M A N A G E M E N T P E R S P E C T I V E In fiscal 2005, the addition of Humminbird® and a renewed emphasis on innovation in every division drove an increase in revenues that out- paced the industry. A strong line-up of new products represented nearly a third of total company revenues, more than off-setting an anticipated drop in military tent sales. Profits were down compared to last year due to unusual or one-time costs in both fiscal years. Excluding these items in both years, profits in fiscal 2005 would have increased. And we ended the year with a strong cash position*, providing us the financial flexibility to execute our strategic growth plans. We are committed to ever stronger, more competitive businesses and to ensuring sustained profitable growth and enhanced shareholder value long-term. Helen P. Johnson-Leipold Helen P. Johnson-Leipold D David W. Johnson Chairman and Chief Executive Officer Vice President and Chief Financial Officer *On October 3, 2005, Johnson Outdoors Inc. announced a cash acquisition of the assets of the Cannon® and Bottomline® brands which reduced fiscal 2005 cash reserves by an estimated $10 million. (thousands,except per share data) Operating Results Operating Results Net sales Gross profit Operating profit Diluted earnings per common share Diluted average common shares outstanding Capitalization Operating Results 2003 2004 2005 In its filings with $315,892 $355,274 $380,690 147,618 156,354 127,989 11,613 19,128 15,532 that the Company the U.S. Securities & Exchange Commission, Johnson Outdoors Inc. and its auditors reported $ 0.63 $ 0.99 $ 0.81 8,600 8,774 8,795 maintained effective internal controls over its financial reporting as of September 30, 2005. Total debt $ 77,473 $ 67,019 $ 50,800 Shareholders’ equity $144,194 $160,644 $166,434 Total debt to total capital 35.0% 29.4% 23.4% N O I T A M R O F N I L A I C N A N I F Y R A M M U S Financial Highlights Strategic Growth Plan Summary 35 Years of Continuous Growth Board of Directors Transformation Strategy Corporate Officers S T R A T E G I C G R O W T H P L A N S U M M A R Y L O N G - T E R M G O A L Our vision for growth is to expand our markets, our brand equities and our technology horizon. I N N O V A T I O N shareholder value DISCIPLINED PORTFOLIO TARGETED MARKET MANAGEMENT EXPANSION OPERATING ORGANIZATIONAL EFFICIENCY EFFECTIVENESS and sustainable profitable growth Long-term (cid:20)(cid:22)(cid:1)(cid:58)(cid:70)(cid:66)(cid:83)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:36)(cid:80)(cid:79)(cid:85)(cid:74)(cid:79)(cid:86)(cid:80)(cid:86)(cid:84)(cid:1)(cid:40)(cid:83)(cid:80)(cid:88)(cid:85)(cid:73) 1 9 7 0 – 2 0 0 5 : 1 3 . 5 % C O M P O U N D A N N U A L G R O W T H I N R E V E N U E . DRIVING SUCCESS THROUGH INNOVATION Since Sam Johnson founded Johnson Outdoors 35 years ago, we’ve emphasized innovation in both our products and our business model...always seeking profitable, long-term growth. STOCK APPRECIATION* – Nasdaq: JOUT 2000-2005 * Based on JOUT year-end stock price 190% R E V E N U E I N M I L L I O N S $ 3 0 0 m i l l i o n $ 2 0 0 m i l l i o n $ 1 0 0 m i l l i o n 1970 Company founded by Sam Johnson REVENUE $ 5.2 million 0 1 9 7 0 JWA 1990 Initial Public Offerings completed and Jack Wolfskin® added to business portfolio REVENUE $311 Million ® ® 1980 Minn Kota®, Old Town®, Eureka!® and Scubapro® brands comprise the business portfolio REVENUE $119 Million ® ® ® ® 2000 Ocean®, UWATEC®, Necky®, Escape® , Carlisle®, Silva® and Extrasport® brands added to the business portfolio REVENUE $346 Million 2005 Transformation almost completed. Humminbird® and Cannon® brands added to portfolio and non-strategic fishing reel and apparel brands divested. REVENUE $381 Million 170% 150% 130% 110% 90% 70% 50% 30% 10% -10% 1 9 8 0 1 9 9 0 2 0 0 0 2 0 0 5 2000 2001 2002 2003 2004 2005 Board of Directors Helen P. Johnson-Leipold, 48 Chairman and Chief Executive Officer. Director since 1994. Also Chairman of Johnson Financial Group, Director of S.C. Johnson & Son, Inc. and JohnsonDiversey, Inc. Thomas F. Pyle, Jr., 64 Vice Chairman of the Board. Director since 1987. Chairman, The Pyle Group. Also Director of Sub-Zero Corporation Gregory E. Lawton, 54 Director since 1997. President and Chief Executive Officer and Director of JohnsonDiversey, Inc. Also Director of General Cable Corporation and Superior Metal Products, Inc. Terry E. London, 56 Director since 1999. President of London Partners LLC. Also Director of Pier 1 Imports, Inc. John M. Fahey, Jr., 53 Director since 2001. President and Chief Executive Officer and Chairman of the Executive Committee of the Board of Trustees of the National Geographic Society. Also Director of Jason Foundation for Education. W. Lee McCollum, 56 Director since 2005. Executive Vice President and Chief Financial Officer of S.C. Johnson & Son, Inc. Also Director of Johnson Bank, Sigma-Aldrich Corporation and Cofresco Frischhalteprodukte GmbH. T r a n s F o r M aT i o n s T r a T E G y since 2000, Johnson outdoors has transformed and optimized our business at every level, returning to the core of who we are... Future growth strategy defined Upgraded processes and systems a n i n n o vaT i o n L E a d E r . Streamlined network model Broader channel penetration Strategic portfolio management Strong, capable team assembled Clear vision defined and renewed innovation focus Helen Johnson-Leipold named Chairman and CEO C o r P o r a T E o F F i C E r s Jervis B. Perkins President & Chief Operating Officer david W. Johnson Vice President & Chief Financial Officer susan E. Love Vice President & Chief Information Officer Kevin J. Mooney Vice President – Worldwide Human Resources alisa d. swire Vice President – Business Development & Legal Affairs Helen P. Johnson-Leipold Chairman & Chief Executive Officer Cynthia a. Georgeson Vice President – Worldwide Communication Mark E. Leopold Group Vice President – Watercraft Kelly T. Grindle Group Vice President – Marine Electronics William s. Kelly Group Vice President – Outdoor Equipment Joseph B. stella Group Vice President - Diving O U T D O O R E Q U I P M E N T T N E M P I U Q E R O O D T U O ATV Garage Firefly™ Inline skate speedometer Ski speedometer O U T D O O R E Q U I P M E N T From family fun to high adventure, Mt. Kilimanjaro, and housed at-risk urban Eureka!® and Silva® answer the call of the youth in Big City Mountaineer mentoring great outdoors. Consumer Reports ranked trips into backwoods America. Silva®, known the Eureka!® TitanTM among the best for family for quality compasses, introduced digital camping, and Newsweek told consumers to performance instruments that track speed, “grab it” for fall excursions. The rugged distance and heart rate for runners, skiers Eureka!® Timberline® Outfitter 4 was the tent and rollerbladers. Specialty tents round of choice for Patagonia Adventure Expeditions’ out the Outdoor Equipment Group portfolio, ecologically friendly treks along Chile’s Aysen providing Eureka!® quality and value to Glacier Trail. Eureka!® protected expeditions rental and military markets. across Nepal’s Everest region and up Tanzania’s Eureka!® Silva®– Turning the outdoors into a welcome adventure Run speedometer D I V I N G X650 MK17 T- Force G N I V I D Twinjet Futura Nexus D I V I N G When Miramax Pictures explored the AladinTM dive computers hit dive stores amazing underwater world for their highly around the world. This sophisticated yet acclaimed documentary “Deep Blue,” they easy-to-use series accommodates a broad knew deep down they needed the best. range of diving skills, and is on track to be That’s why they chose Scubapro® and the most successful dive computer global UWATEC® diving equipment. Global leaders launch in Johnson Outdoors history. On tap in innovative recreational diving equipment, for 2006 is a full range of new Scubapro® Scubapro® and UWATEC® design products for regulators and diving gear for new and avid maximum comfort and performance to divers alike. Our elite global dealer network provide a lifetime of enhanced underwater stands ready with outstanding products and experiences. This year, the new UWATEC® world-class service to meet every diver’s needs. ScubaPro®, Uwatec®– Deep down, only the best will do. Smart Z™ Everflex™ W A T E R C R A F T ® ® ® T F A R C R E T A W Chaise Lounge Manitou™ Prowler™ Cayuga™ Venus™ W A T E R C R A F T Pro Expedition Dirigo™ As consumer paddling rebounds, the a grueling 12.5 mile race across Long Island Watercraft divison is ready—more stream- Sound; and the Old Town® DirigoTM,Paddler lined, more efficient, and more innovative. Magazine recreational kayak of the year. In 2005, our brands set sales records at major Extrasport® added comfort to kayak seating consumer sport shows, while strong new and apparel. Carlisle® introduced high- products drove double-digit sales growth performance carbon and fiberglass paddles. in the U.S. and Europe. Necky® was official And Escape® unique electric-powered kayak of Primal Quest®, the world’s toughest recreational watercraft saw test market expedition adventure race; the Old Town® demand outpace availability— a good sign CayugaTM, official boat of “Kayak for a Cause,” for the 2006 national rollout. Escape®, Ocean Kayak®, Necky® and Old Town® – For adventure on the water Enchantment carbon Magic carbon S C I N O R T C E L E E N I R A M M A R I N E E L E C T R O N I C S Humminbird® 987 sonar 787 sonar 383 sonar Edge™ Riptide™ Pro Maxxum Pro™ MK 345 on-board battery charger M A R I N E E L E C T R O N I C S The addition of the Humminbird® brand brands. Field and Stream® named Minn Kota® drove record 2005 sales and profits for the Maxxum ProTM 2005 “best of the best” for its Minn Kota®– Anywhere. Anytime. Marine Electronics Group. Minn Kota® has nearly unique Lift-Assist motor stowing technology. doubled market share since 2000, increasing The Humminbird® 987c, with side imaging and distribution and sales through innovation picture-like quality, received top innovation Humminbird®– Simply. Clearly. Better. and targeted marketing. We’re leveraging our honors at MAATS, a premier marine trade expertise to do the same for Humminbird®, show. With newly added Cannon® downriggers, this year delivering growth in the U.S. and for controlled depth fishing, we now compete even stronger leadership overseas. Innovation in five marine electronics segments—a $350 also generated awards for these powerhouse million marketplace opportunity. O U R I N S P I R A T I O N Nowhere is the S P I R I T O F A D V E N T U R E more apparent S a m J o h n s o n than in the life of our founder, Sam Johnson. For seven decades, Sam explored life to the fullest. Whether in the world of business, or a world of wonder in some far off exotic land, Sam’s spirit of adventure serves as a constant beacon for both how we run our business and how we live our lives. Here is a rare glimpse into Sam’s p a s s i o n f o r a d v e n t u r e a s s e e n t h r o u g h h i s o w n e y e s. C o m m o n L o o n S a m u e L C . J O h n S O n Lake Owen, Wisconsin S c h o o l o f S n a p p e r s S a m u e L C . J O h n S O n Papua, new Guniea 1999 P i t c h e r P l a n t S a m u e L C . J O h n S O n mt. Kinabalu, malaysia 1994 M a c h u P i c h u S a m u e L C . J O h n S O n machu Pichu, Peru N a m e k a g o n R i v e r S a m u e L C . J O h n S O n Lake Owen area, Wisconsin C u t l e a f M a p l e S A M U E L C . J O H N S O N Racine, Wisconsin © 2004 by Permission of Imogene P. Johnson. All Rights Reserved, Courtesy of Johnson Keland Management, Inc. 

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