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WheelsOfGrace.com | Volume 10 Issue 3 | 25 first in a broad, no-clutch "twist and go" portfolio of electric two- wheelers designed to establish the company as the leader in the electrification of the sport. LiveWire will be followed by additional models through 2022 to broaden the portfolio with lighter, smaller and even more accessible product options to inspire new riders with new ways to ride. Broader Access Harley-Davidson will advance its market delivery approach and meet today's customer needs by: • Creating high-engagement customer experiences across all retail channels – including improving and expanding the company's global digital capabilities by evolving the Harley- Davidson.com experience to integrate with and enhance the dealership retail experience for existing and new customers. • Establishing strategic alliances with global leading e-commerce providers to extend access to Harley-Davidson to a pool of millions of potential new customers. • New retail formats -- including smaller, urban storefronts globally to expose the brand to urban populations and drive sales of the expanded Harley-Davidson product portfolio and expand international apparel distribution. Stronger Dealers Harley-Davidson's world-class dealer network is an integral part of the company's accelerated strategy and critical to overall success. The company will implement a performance framework to significantly enhance the strength of the dealer network and the customer experience, enabling the best-performing and most entrepreneurial dealers to drive innovation and success for themselves and Harley-Davidson -- while providing the premium customer experience the brand is known for across an increasingly diverse product and customer base. "Harley-Davidson is iconic because we've never been static," said Levatich. "In moving forward, we are tapping into the spirit that drove our founders back in 1903 and every one of the employees and dealers who rose to the challenges faced along the way. Our plan will redefine existing boundaries of our brand – reaching more customers in a way that reinforces all we stand for as a brand and as a company and we can't wait to kick it into gear." Watch a video highlighting key elements of Harley-Davidson's More Roads to Harley-Davidson in the Wheels Of Grace eMag Volume 10 Issue 3 at www.WheelsOfGrace.com. Funding & Financials In addition to building riders, the company expects More Roads to Harley-Davidson to create more value, stabilize and strengthen the existing business, improve Harley-Davidson Motor Company Return on Invested Capital (ROIC), increase revenue and earnings, and allow the company to return more cash to shareholders. The accelerated strategy will require significant investment to change the trajectory of the business globally, and the company plans to fund it entirely through comprehensive cost reduction and reallocation of previously planned investment and resources including operating investment through 2022 of $450 to $550 million and capital investment through 2022 of $225 to $275 million. In total, the company plans More Roads to Harley-Davidson to generate more than $1 billion of incremental annual revenue in 2022 as compared to 2017. The company believes its accelerated strategy is in line with and reinforces its objectives to drive revenue growth and expand operating margins. The company expects to fund strategic opportunities while maintaining its current investment and return profile and capital allocation strategy. Harley-Davidson's funding principles will focus on stabilizing and strengthening the existing business, enhancing the premium brand, and investments in profitable, growth-oriented projects. We expect these principles, along with a disciplined capital allocation focus, will allow Harley-Davidson to execute with improved cost competitiveness and overhead efficiencies. Visit Harley-Davidson's Web site at www.harley-davidson.com. WheelsOfGrace.com Volume 10 Issue 3 25