Johnson Outdoors Inc. Annual Report 2008

FY2008 Annual Report · Johnson Outdoors Inc.

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Johnson Outdoors Inc.
2008 Annual Report

Our Mission and Vision
our vision is to own the outdoor adventure with innovation
and passion. our mission is to be the innovation leader; bring
excitement and growth to our markets; and build a strong,
talented team with exceptional passion.

Letter from Our CEO ······················································· 3-4
[ dive ] ·········································································· 5-9

SCuBApro® – uWAteC® – SeeMAn™

[ fish ] ······································································· 10-14

Minn Kota® – Humminbird® – Cannon® – GeonAV®

[ paddle ] ·································································· 15-19

necky® – old town® – ocean Kayak™
lendal® – Carlisle® – extrasport®

[ camp ] ···································································· 20-23

eureka!® – tech4o® – Silva®

Outside Magazine “Best Places to Work” ························· 24
Community Involvement ·············································· 25-27
Management Perspective ················································· 28
2008 Financial Reports ··················································· 29
Board of Directors ···························································· 30
Resources ········································································· 31
2008 FORM 10-K ···························································· 32

Certain matters discussed in this report are “forward-looking statements” intended
to be covered by the safe harbor provisions for forward-looking statements contained
in the private Securities litigation reform Act of 1995. please see “Forward looking
Statements” in the 2008 ForM 10-K for a discussion of uncertainties and risks
associated with these statements.
© 2008 Johnson outdoors Inc.

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In Our Chairman’s Words

Innovation is the core of who we are. It gives us the ability to
compete on quality and price/value, rather than price alone,
helping to sustain market leadership even during tough
economic times.

this report showcases the groundbreaking, game-changing
products that drive sales and open new markets. You’ll also
meet four Johnson outdoors innovators who bring fresh
thinking to the way we develop new products, manage
production, go to market and grow our business. they
represent the many employees throughout our organization
dedicated to meaningful innovation in everything we do.

the economic downturn emphasized the value of our efforts
over the past five years to make Johnson outdoors more
efficient and effective. We once again outperformed our
peers as many of our brands held or gained share against the
competition. Strengthened and streamlined processes and
systems helped ease the downturn’s effects.

even so, the weak economy outweighed positive gains from
the first half of the year, for results that compared unfavorably
to the prior year. We believe our markets will rebound with the
economy, and when that occurs, we will be stronger and better
positioned for growth. We remain excited about the future of
Johnson outdoors.

the economy affected some markets and brands more than
others, particularly the marine marketplace and Minn Kota®,
our flagship profit engine. We responded with mid-season

dealer programs, consumer promotions and scaled-back
production to reduce inventory in every operation. Aggressive,
comprehensive plans are in place to improve efficiency across
the organization, while a targeted 20 percent SKu reduction
in each business will focus resources appropriately and drive
simplification.

Going forward, operations will be structured to operate
efficiently through our industry’s cyclical valleys, while
maintaining the flexibility to ramp up efficiently for its peaks.
restructuring in Diving and outdoor Gear achieved this
balance, with efforts underway in Marine electronics and
Watercraft to manage staffing accordingly. ultimately, we will
be a leaner, yet more agile manufacturer.

equally important, as innovation leaders, we are strongly
positioned for the industry’s upswing and long-term,
profitable growth.

Marine Electronics A slumping u.S. boat market
dragged down Minn Kota sales this year. exports were up
significantly year-over-year, but not enough to overcome
lower domestic volume. Humminbird® continued its strong
growth trajectory, powered by the appeal of its revolutionary
patent-pending Side Imaging® sonar. We are prudently
enhancing Marine electronics’ presence in europe through
our acquisition of GeonAV® and a business model that
leverages existing assets and partnerships, investing only
where needed to maximize growth opportunities.

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Diving the new Galileo Sol took world markets by storm,
while supply chain optimization brought new sophistication
to our SCuBApro® and uWAteC® manufacturing. our
newly redesigned high-efficiency facility in Indonesia is
projected to yield strong improvement to operating profits
in the years ahead.

Watercraft Solid sales across paddle sport brands in the
first six months could not offset slowed restocking orders
in the second half of the fiscal year. results from an
independent strategic study conducted this year provide
good insight on what we must do to enhance Watercraft’s
bottom-line performance long-term.

Outdoor Gear the constant ebb and flow in military orders,
coupled with the realities of special-event tent order cycles,
led to restructuring of Binghamton operations in June.
Consumer tent sales grew, driven by our innovative wired
tents as well as the trend for stay-at-home vacations.

the online channel continues to grow in size and importance
to our markets, and we have a win-win e-commerce model
that benefits our retailers by giving them the opportunity to

fulfill online consumer orders. Direct-to-consumer e-marketing
programs are also strengthening consumer relationships while
capturing important insights necessary for us to beat the
competition in the rapidly growing e-marketplace.

Johnson outdoors lives and breathes innovation, which is why
our brands continued to gain market share this year. In 2008,
for the fifth year in a row, new products contributed a third or
more to total company revenues. And we have a full pipeline
of new product ideas and concepts for years to come.

Despite the current economic climate, our excitement for
the future is undiminished. We have strong brands and the
foundation to support profitable growth when our markets
rebound. And we have a remarkable asset in our people. their
passion fuels our innovation. they drive our success. I am very
pleased that Johnson outdoors is their “workplace of choice,”
as recognized by Outside Magazine.

long-term, we will deliver increasing shareholder value through
sustainable, profitable growth. We will delight our customers
and consumers. We will build on the strengths of our team. And
we will own the outdoor adventure with innovation and passion.

Helen Johnson-Leipold
Chairman & Chief executive officer

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For tom Conrardy, innovation starts with a look at the numbers. Can goods be
moved faster? Can overhead be reduced? Can waste be cut? “I look at the things
we do day-to-day and try to get a better result by doing something different.”

[ dive ]

The Innovator

tom’s measured approach
has been key in transforming
Diving’s supply chain into a
strategic asset. He and his
team looked at the brands’

two underused manufacturing plants and decided to do something radically
different: focus the Switzerland facility on r&D and centralize manufacturing
in Indonesia.

“By keeping manufacturing close to the supply source, you cut the cost of goods
and increase speed to market,” tom says. “reinventing our plant also gave us
the chance to design it for success.”

that meant evaluating every step of the manufacturing process, looking for ways
to streamline. “For instance, making printed circuit boards for dive computers
requires expensive equipment and inventory, and it’s not our core competency,”
tom says. “We found a supplier who could do it better and more cost-effectively.”

the shortened supply chain and state-of-the-art manufacturing facility are
delivering numbers tom likes: “All indications are that this will have a positive
effect on Diving’s profitability.”

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Tom Conrardy
Director of Global Operations – Diving

“

Seeing the supply chain as an asset led us to be
innovative in the way we manufacture and distribute.
In the long run, that will give us a strategic edge.

”

Enhance the Adventure

through technological innovation and in-depth consumer
knowledge, our Diving brands take the sport to a whole new level.

· SCUBAPRO®, a global leader in innovative diving equipment,
was named best brand of the year 2008 by Dive Magazine
readers for its comprehensive product line

· UWATEC® once again has revolutionized diving with an easy-to-
use dive computer—this time, the Galileo® Sol, which in 2008
helped drive a 22 percent increase in Diving sales

· Seemann™, offering top-quality gear at reasonable prices for

divers of all abilities, delivered profitable growth in Germany and
gives us a channel to the rest of europe

Building on a year of streamlining and enhancing operations at the
local, regional and global levels, Johnson outdoors Diving is ready to
open new worlds in 2009 and beyond.

™

[ dive ]

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Extra-large dot matrix display
delivers vital dive information in
custom, easy-to-read format

[ dive ]

Infrared technology means software
upgrades can be downloaded easily
via the Internet

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Digital compass with bearing
memory, unaffected by tilt, makes
diving navigation simple

At the Heart of
Innovation
Galileo Sol by uWAteC is at the center of
a revolution in dive computer science. It’s
the first and only dive computer to integrate a
heart rate monitor, better measuring workload
to help calculate true remaining bottom time.

the completely new Galileo platform supports an
incredible array of features, with intuitive menus that
make it incredibly easy to use—creating an underwater
experience that divers will love.

What Women (Divers) Want
Meticulously designed and tailored for women, the Bella buoyancy compensator from SCuBApro
provides a perfect fit for a growing market segment.

the Bella was developed using a new, SCuBApro-exclusive wraparound air bladder. unlike
traditional bladders, which extend away from the torso when inflated, Bella’s bladder retains its
cradle-like shape even when fully inflated. the result is a gentle hug that gives the diver optimum
comfort and control at every level.

Monprene® pads in backpack
and shoulder area absorb weight
and enhance comfort

Zippered cargo pockets and
conveniently placed D-rings make
it easy to carry accessories, maps
and dive charts

Hip indents are contoured
to the female form

[ dive ]

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Propulsion Beyond Compare
the Seawing nova from SCuBApro combines paddle fin power and maneuverability
with a split fin’s effortless efficiency. Its articulated joint, like that of a whale or a dolphin,
lets the blade pivot, reducing drag while maximizing thrust.

traditional fins force divers to find a middle ground between kick strength and efficiency.
Innovative technology takes the Seawing nova beyond compromise, beyond compare.

Ergo2 footpocket and rigid Power Plate
deliver ultimate power transmission with less
leg strain and maximum foot comfort

Pivot control technology maintains
the most efficient angle of attack
across all kicking strengths

Space-age Monprene®
elastomer is lightweight and
virtually indestructible

[ dive ]

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Kathy Dutton already was a multi-tasker when she joined Johnson outdoors as
an intern 12 years ago. even as she earned her marketing degree, “I did market
research on the side, for all the brands.” She continued as a multi-faceted

The Innovator

employee, moving up through
administration, product
coordination, and marketing.

now Kathy helps Marine
electronics brands connect

with today’s multi-taskers. She is Johnson outdoors’ first interactive media
marketing manager.

[ fish ]

“When people watch tV, they’re also texting or surfing the Internet,” she says. “If
they read a magazine, they’re listening to music, too.” As consumers shift to more
interactive media, Kathy looks for innovative ways to meet them on their terms.

High-tech methods include the redesigned Humminbird® website, where visitors
can check out videos on Side Imaging® sonar or download fishfinder software
updates. But Kathy says the humble contact information form is equally vital.
“We’re building a consumer database to strengthen relationships with people
who use our products, and people who are interested in them.”

Kathy is also tasked with sharing insights into new media across the organization.
A big assignment, yes, but she sees it as yet another chance to grow—and to
keep Johnson outdoors growing profitably.

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Kathy Dutton
Interactive/Web Marketing Manager – Marine Electronics

“

Anglers use Humminbird fishfinders to navigate
through the water. We reinforce the feel of that
experience by making our website easy to navigate.

”

Change the Landscape

[ fish ]

Johnson outdoors continues to reshape Marine electronics’ market with
revolutionary products.

· Minn Kota®, the world leader in electric trolling motors, this year

introduced both the Fortrex™, its toughest-ever bow-mount motor,
and the traxxis™, with every component freshly designed for extreme
performance

· Humminbird®, building on market enthusiasm for its Side Imaging®
sonar, is moving into ice fishing with the ICe Flasher Series™, named
best new electronic fishing product at ICASt 2008

· Cannon® enhanced its full line of downriggers with new trolling system
accessories, including rod holders featuring a patent-pending pistol-
grip design

transformational vision and keen consumer insight keep Marine electronics’
brands first to the market and first in the market, year after year.

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Bigger Screen, Massive Appeal
Humminbird amazed anglers with its breakthrough fishfinders featuring Side Imaging
sonar—and its new 1100 Series™ literally expands the appeal.

the professional-grade 1197c SI Combo offers the largest-ever screen for anglers—a
massive 10.4 inch diagonal, full-color, sunlight-viewable display. Its picture-like images
reveal bottom structures and fish beneath the boat and up to 240 feet on either side.
Advanced sonar GpS and Humminbird’s built-in uniMap™ cartography complete a
very attractive picture.

Biggest-ever 10.4 inch diagonal
full-color SVGA display makes it
easy to see what’s under and
around the boat

Zoom feature enables multi-level
magnification of images on Side
Imaging® screen

Fifty-channel GPS includes full mapping
capability on the built-in UniMap™

Traditional 2D sonar with DualBeam PLUS™
200kHz/83kHz transducer offers exceptional
detail over a wide area

[ fish ]

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Humminbird’s ICE 55 Flasher captured Best of
Show honors in electronics at the 51st annual
International Convention of Allied Sportfishing
Trades show—our second such win in three years

Industry-first backlit LCD
display inside the flasher
dial includes digital depth
and an easy-to-read
automatic depth scale

Exclusive Target Line lets anglers
mark a precise depth in the water
column, so they know just how far
to lower their jig

Exclusive six-color fiber optic
display delivers real-time sonar
response, with increased detail for
greater distinction among targets

Ice Fishing’s Hot New Must-Have
Humminbird takes ice fishing digital with the all-new ICe Flasher Series. three
models help anglers determine water depth, identify baitfish and bottom structure
and find the fish they want to catch.

exclusive features include a six-color fiber optic display and all-new lCD screen that
withstands below-zero temperatures. the ICe 55 model also lets users mark hot
fishing depths, with a unique purple target line showing where to lower their jig.

[ fish ]

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Advancing the Strong, Silent Type
the toughest, most durable bow-mount trolling motor ever makes barely a whisper in
the water. Fortrex, new from Minn Kota, features an innovative Mono-Arm mount that
eliminates metal-to-metal contact and uses unique composite materials to improve
ruggedness and reduce motor wear and noise.

precision engineering assures Fortrex will perform in the most extreme conditions,
trouble-free—giving anglers a motor they can rely on, day after day, year after year.

Exclusive Counter Tension Stabilizer technology
uses an integrated spring arm that applies force
in both the stowed and deployed positions—
reducing steering torque, eliminating motor play
and fish-spooking noise

Extruded, anodized aluminum Mono-Arm
operates with no metal-to-metal contact. One
hinge point and rear pivot bearing make for less
wear, longer life and quieter operation

Patented Bowguard 360°™ breakaway
system protects the boat and motor, with
an updated design that offers easy motor
removal with just one cap screw

[ fish ]

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Build a prototype kayak. Study every inch, looking for ways to improve it. Get
ideas from other designers, from marketing, from consumers. Build a new
prototype, and repeat.

The Innovator

“Innovation is not a matter
of brilliant insight. It’s an
evolutionary process based on
critical evaluation,” says Gary
Seaman. “We go through four

or five prototypes and 20 to 50 little improvements. By the end, you have a boat
with a lot of innovation.”

[ paddle ]

For instance, when he was laying out the deck for the prowler trident™, our
popular family of ocean Kayak™ fishing kayaks, Gary noted the design brief
called for two hatches and space for a bait tank.

“I cut up an original prowler and played with the different configurations. It
occurred to me we could put a hatch higher up in the console, right in front
of the seat. I checked it out with the other designers, and mocked it up.” that
evolved into the rod pod™—a storage hatch that paddling anglers love for its
easy access.

And that’s the point of innovation: creating products consumers love. “Innovation
leads to a product of higher value,” Gary says. “It makes people want to buy it.”

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“

We can accelerate a product’s natural evolution
by thinking critically. that can put Johnson outdoors
two or three years ahead of the competition.

”

Gary Seaman
R&D Designer and Technician – Watercraft

Discover the Headwaters

Behind each of our Watercraft brands stand the innovators who direct the market.
their passion for performance drives breakthrough designs, winning industry awards
and consumer loyalty.

[ paddle ]

· Necky®, Old Town® and Ocean Kayak™ create kayaks and canoes to please anglers,

explorers, world-class competitors and families in search of fun

· Lendal® and Carlisle® paddles, built for performance, durability and ease, empower

beginners and enthusiasts alike to handle whatever the water throws at them

· Extrasport® life vests and accessories deliver the ultimate in quality and comfort,

enhancing paddlers’ time on the water

Find the headwaters of invention at Johnson outdoors—and see how our appeal ripples
out to the industry’s horizons.

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More Comfort and Fun for Everyone
the newest family of kayaks from old town delivers outstanding comfort, stability and
versatility to a wide variety of paddlers. the Vapor™ series includes a ladder of choices,
from standard models to the feature-rich Vapor 12Xt.

Vapor kayaks offer a large cockpit for comfortable access; lightweight, durable construction;
and a design that promotes smooth tracking and paddling. It all adds up to more enjoyable
day trips, nature watching or easy family time on the water.

Padded thigh braces,
combined with adjustable
foot pegs, offer a custom fit
and superior control

Molded-in cockpit tray includes
convenient cup holder

Stern day well with
hinged cover keeps
gear handy

Comfort Flex XT padded seat
includes an adjustable back rest
to enhance time on the water

[ paddle ]

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Delivering Smooth, Easy Power
Carlisle puts magic in kayakers’ hands—the powerful Magic plus touring paddle. Beginners
and pros alike can produce smooth, efficient strokes, thanks to a responsive fiberglass
shaft, plus fiberglass-reinforced polypropylene blades that pull through the stroke with no
excess flutter.

push-button breakdown lets paddlers adjust blade feathering for right- or left-handed
control. And two-piece construction makes it easy for the Magic plus to vanish into
storage at the end of the day.

Fiberglass-filled polypropylene
blades deliver durability

Lightweight, flexible fiberglass shaft
includes ergonomic grip to enhance
control and reduce fatigue

Rubber drip rings help
keep hands and lap dry

[ paddle ]

Asymmetrical, slightly
spooned blade promotes
powerful, efficient strokes

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Sculpted Gaia®
foam is non-PVC

Perfect Fit for the Market
the extrasport ebb personal flotation
device makes it easy for paddlers to add
comfort and safety to every adventure.

extrasport’s patented retroGlide™
shoulder adjustment system, combined
with the ebb’s sculpted foam design,
ensures a custom fit for women as well
as men. Gaia® pVC-Free Foam won’t
break down in a wet environment. And
the no-bulk design leaves arms free
for a full day of paddling.

Neoprene-covered
adjustable waist belt
prevents ride-up

Patented RetroGlide™ adjustment
system delivers custom fit with no rigid
buckles or straps around the neck

Mesh sides enhance
heat management

[ paddle ]

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He likes his days to be “crazy and full.” He likes to learn things. He loves it when
customers look at his work and say “Wow!”

The Innovator

trent nelson qualifies new
products to be sure they’re
right for Johnson outdoors
markets. His job can take him
on a run to test a wristwatch
heart rate monitor, on a search

through international safety standards to guide construction of a new tent light
bracket, or on a trip to watch customers try a prototype commercial tent doorway.

At every step, he asks questions. lots of them. “How will people use a product?
Could someone break it or hurt themselves? Can it be produced cost-effectively?”
But trent says he can’t find the answers alone. “You need an experienced
team—not just a bunch of renegades—or you won’t come up with a product the
customer wants.”

Coming up with those products, he says, keeps Johnson outdoors growing. “If
the production floor is slow, that’s difficult for the company. If r&D is slow, the
company’s up a creek! With new products we can open up new categories and
new markets.”

[ camp ]

Trent Nelson
Hard Goods Designer – Outdoor Gear

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When we set out to make a lighter, more cost-effective
commercial tent door frame, we took our original concept
to a local company that makes doors. Bringing in experts
helps us feel comfortable that we have a well-built,
qualified item that’s safe for customers to use.

”

“

Connect with Power

our outdoor Gear brands help families, adventurers and fitness
enthusiasts get in touch with nature, improving their experience and
increasing demand for our products.

· Eureka!® invites families to camp in comfort, with new-to-the-world

n!ergy™ wired tents and e! power™ accessories catalyzing sales growth

[ camp ]

· Tech4O® digital products help people at all fitness levels track their

performance, drawing buyers with new features such as heart monitor
and pC capabilities

· Silva® creates compasses on a platform of unsurpassed accuracy,
keeping our customers—and our innovation—moving in the right
direction

It’s a powerful product mix that makes the great outdoors a more
welcoming place…and connects Johnson outdoors to success.

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Winning with Convenience
Building on the success of its popular n!ergy tents—the first-ever fully wired tents—
eureka! is introducing additional accessories to offer campers the comforts of home.

Drawing on the clean, quiet electric power of the portable e! power battery pack, now
available in both 7Ah and 18Ah ratings, these accessories make it easier for families
to have fun in the great outdoors.

The E! Power™ Wet/Dry Vacuum helps keep your N!ergy™
tent and campground area clean—and can also inflate
airbeds and water toys. It delivers 50 minutes of run time
with the 7Ah E! Power™ Pak

Maintenance-free E! Power™ Pak2 18Ah sealed
lead-acid battery lets campers watch DVDs,
charge cell phones and enjoy extended run time
for E! Power™ accessories

Bright, efficient 12-volt LED Plug-in Light with 3 LEDs
invites campers to read or play games, making it easy
to direct light with the adjustable head. On low, it
functions as area lighting or a nightlight. It delivers
300 hours of run time with the 7Ah E! Power™ Pak

[ camp ]

Simple, safe Bug Zapper helps control
flying insects, day and night. With the
7Ah E! Power™Pak, it provides eight hours
of continuous relief from mosquitoes,
lawn moths, flies, wasps and gnats

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Next-Generation Performance
Fitness enthusiasts and outdoor adventurers have a new high-tech companion to guide
them toward their goals. the traileader pro, from tech40, syncs with a pC to track
workouts over time.

this easy-to-use watch adds heart rate monitoring to the speed, distance, calorie
measurement, altimeter, barometer, compass and thermometer capabilities. precise
accelerometer technology drives the traileader, and its users, to success.

Personal computer link makes it easy to
download data and measure individual
progress toward fitness goals

Simplified menu navigation
reveals vital information at
the touch of a button

Advanced accelerometer technology
drives extremely accurate heart rate
monitoring and speed and distance
measurement

[ camp ]

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Johnson Outdoors Named
a Top U.S. Workplace

In its first-ever Best places to Work,
Outside Magazine named Johnson
outdoors third among large companies
that make it easy for employees to
balance productivity with an active,
eco-conscious lifestyle.

the magazine and the Best Companies Group spent a year collecting employer information
and reviewing independent confidential employee surveys to name 30 winners—10 each in three
size categories.

Johnson outdoors was recognized for its close-knit culture, community support, employee
programs like the Sons & Daughters scholarships, and encouraging employees to enjoy the
outdoors with the its free try our products program.

Outside’s findings matched those of our 2008 employee opinion survey, in which ratings in 16 of
the 17 categories were nearly 17% above the manufacturing norm. the results from both surveys
help us focus recruiting and retention programs.

What Our Employees Told Outside Magazine

“ overall, Johnson outdoors offers the best of both worlds…a company where
employees feel secure and well-valued, plus challenged and excited in their work. ”

outdoors. We are focused on doing the right things long-term…for the people, the

“ We are focused on helping customers have a better experience enjoying the
communities and the businesses. ”

“ Johnson outdoors rocks! ”

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Granting a Final Wish

When a dying mother sought a real home for her family, our family
helped unite a community to grant her wish.

Sonya Barclay battled breast cancer for four years before learning
early in 2008 that it had spread throughout her body. “I just want a
home that my children are safe and secure in, and if I were to leave this
earth, know that my husband and my four kids are safe,” the old town,
Maine resident said in May.

But rising medical and living expenses left the family with no money to
repair their battered trailer.

then lana phillips, old town Canoe human resources manager, swung
into action. She and another of Sonya’s friends called the local media—
and the donations poured in. old town Canoe raffled off a kayak and
paddle and outfitted the entire Barclay family with kayaks, life jackets
and paddles.

twenty-one days later, a new home stood on the Barclays’ lot. lana
says the community’s response was overwhelming. “We thought we
would have to go door-to-door, but everybody came to us,” she said.

Sonya lost her battle with cancer August 27, having seen her family
safe in their new home. “It was built out of love, compassion,” she told
CBS news correspondent Steve Hartman in June. “they knew that we
needed it, and they went ahead and did it.”

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Opening the Outdoors

An innovative kayak helps people with mobility challenges enjoy time
on the water—and Johnson outdoors is proud to support the effort.

Jeff Bach, whose company produces instructional paddling DVDs,
asked if we’d give a kayak to the Wisconsin Department of natural
resources to be modified for adaptive paddling.

We donated an old town Dirigo. It’s now equipped with adjustable
outriggers, for extra stability; a universal chair with raised back and
side supports, for increased balance; and specialized hand braces
on the paddle, for people with limited grip.

Jeff was inspired by Wisconsin Dnr Accessibility Coordinator Andy
Janicki, who heads the Dnr’s “open the outdoors” campaign. Andy,
25, swam competitively and enjoyed backpacking, snowshoeing,
biking and paddling before an accident nearly four years ago left him
paralyzed from the collarbone down.

He encourages anyone with a disability to try the modified kayak. “It’s
an amazing freedom,” says Andy. “Getting around on trails in your
chair, everything’s an obstacle, but there are no obstacles when you’re
out on the water.”

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Blazing a Water Trail

When Johnson outdoors employees led the way to
encourage boating on racine’s root river, the whole
city gained.

Steve Van Dis, Johnson outdoors retail sales manager,
found an appropriate focus when he participated in
leadership racine, a program to cultivate community
leaders. He and his team decided to make racine a
better place to live by helping revitalize and increase
use of the city’s only urban waterway, the root river.

the team coordinated efforts with the grand opening
of the root river environmental education Community
Center. Steve’s team, which grew to include his retail
staff, created the first root river water trail and a new
river mapping system, drawing on funding from the
root-pike Watershed initiative network.

the 4.3 mile water trail was christened May 10. More
than 80 community leaders took to the water in the
education center’s new fleet of canoes and kayaks—
donated by Johnson outdoors.

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Management Perspective

Strategies Focus on Sustainability and Growth

Knowing that the outdoor recreational industry is particularly
volatile in uncertain economic times, Johnson outdoors is
committed to act as necessary to preserve our organization’s
long-term sustainability.

We have moved decisively to increase operational flexibility,
addressing the ebb and flow of our markets. targeted
cost savings programs and spending reductions already
underway are highly strategic, intended to scale our cost
structure to the current environment while maintaining our
competitive position in the coming year and beyond. Key
elements of these plans are:

· $20 million in cost-saving projects
· 26 percent reduction in capital expenditures
· 12 percent reduction in peak working capital

even as we scale back our cost structure, we remain
focused on leveraging our marketing and innovation
expertise to create consumer demand and drive increased
volume. We have tremendous brand equities that held
or gained share throughout 2008, thanks to innovative
new products. this innovation is and will be the heart of
Johnson outdoors.

We are committed to protecting profitability and enhancing
cash flow. We believe in the future of Johnson outdoors,
and are doing the right things to ensure we maintain our
market leadership positions and prepare for growth once
the economy and marketplace rebound.

Sincerely,

Helen Johnson-Leipold
Chairman & Chief executive officer

David W. Johnson
Vice president & Chief Financial officer

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Johnson Outdoors Brands: Leaders in Every Market

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Products

Brands

Diving
SCuBApro®
uWAteC®
SeeMAn™

Motors
Minn Kota®

Fishfinders
Humminbird®

Downriggers
Cannon®

Canoes
old town Canoe®

Kayaks
old town Canoe®
ocean Kayak™
necky®

Family Tents
eureka!®

Field Compasses
Silva®

Net Sales and New Product Contributions

2008 Sales Outpace Market

$355

$381

$396

$432

$421

30% +

– 13%

– 25%

+ 2%

Diving

– 2%

Marine Electronics

+ 1%

Watercraft

– 8%

+ 10%

Outdoor Gear

+ 8%

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

- 0 +

Fiscal Year revenue – In Millions

percentages: new product Contributions

2008 Market Sales

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Board of Directors

Helen P. Johnson-Leipold
Chairman of the Board since 1994. Chairman and Ceo, Johnson outdoors;
Chairman and Director, Johnson Financial Group, Inc.; Director, S.C.
Johnson & Son, Inc. and Johnson Diversey, Inc.

Thomas F. Pyle, Jr.
Vice Chairman of the Board and Director since 1987. Chairman, the pyle
Group; Director, Sub-Zero Corporation; trustee, Wisconsin Alumni research
Foundation; Member, Kennedy Center national Advisory Board.

John M. Fahey, Jr.
Director since 2001. president, Ceo and Chairman of the executive Committee
of the Board of trustees, national Geographic Society; Director, exclusive
resorts; Board Member, Smithsonian national Museum of natural History.

Edward F. Lang
Director since 2006. president of Business operations and Alternate Governor,
nashville predators; Chairman, nashville’s Adventure Science Center; Director,
nashville predators Foundation and nashville Downtown partnership.

Terry E. London
Director since 1999. president, london Broadcasting Company, Inc.;
president, london partners, llC; Managing partner, 41 entertainment lp;
Director, pier 1 Imports.

W. Lee McCollum
Director since 2005. Vice Chairman and Director, Johnson Financial Group,
Inc.; Chairman of the Board and Director, le Groupe Fruits & passion;
Director, Sigma-Aldrich Corporation.

Johnson Outdoors Management Team

Second Row (left to right) David W. Johnson, Joseph B. Stella, Mark e. leopold, Kelly t. Grindle,
WIlliam S. Kelly

Third Row (left to right) Alisa D. Swire, John C. Moon, Sara M. Vidian, Cynthia A. Georgeson

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Helen P. Johnson-Leipold

Edward F. Lang

Thomas F. Pyle, Jr.

Terry E. London

W. Lee McCollum

John M. Fahey, Jr.

Resources

Corporate Secretary
Johnson outdoors Inc.
555 Main Street
racine, WI uSA
53403-1015

to contact the Board of Directors directly, visit:
http://investor.johnsonoutdoors.com/contactBoard.cfm

www.johnsonoutdoors.com

For more information, contact:
Johnson outdoors Inc.
Cynthia Georgeson, Vice president-Worldwide Communication
262-631-6600
cgeorges@johnsonoutdoors.com

Monprene® is a registered trademark of teknor Apex

Sincere thanks to the Johnson outdoors employees who shared their
experiences with us through interviews and photographs.

Designed by: Blackfish Creative, www.kfish.com
Copy editor: Mary Jo thome
product photography: Cory Howe
Cover photography: © 2008 Alex Mustard
resource Coordinator: Kim poehlman

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