1. Garmin, Ltd. NASDAQ: GRMN $46
Garmin, Ltd. NASDAQ: GRMN $46.22 (as of 4/5) Initiating Coverage at SELL Price Target = $43.50

2. Agenda Declining Core Business Growth Opportunities Not Enough
Sum-of-the-Parts Valuation

3. Agenda Declining Core Business Growth Opportunities Not Enough
Sum-of-the-Parts Valuation

4. Agenda Declining Core Business Growth Opportunities Not Enough
Sum-of-the-Parts Valuation

5. Personal Navigation Devices
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

6. PND Segment Decline…
$2.6B
$1.5B
millions

7. PND Segment Decline…Not Over
$2.6B
$1.5B
millions
$650MM

8. Disruptive Technology
Google
Android
iPhone
iPad

9. Garmin Stock Price & Events 6/09 – 4/05/2012
GRMN
Nasdaq
End of Day 4/05/2012

10. Google Navigation Announcement & Tom-Tom slashes prices Garmin down 16
Oct 28, 2009
GRMN

11. Q1 2011 Earnings & T-Mobile Deal Garmin Down 14%
May 5, 2010
GRMN

12. GRMN Underperformed the Market
June – Aug 2011
Nasdaq
GRMN

13. Dividends & Growth? Garmin up 67% from 8/11 – 4/05/12
Aug 2011 – Apr. 5, 2012
GRMN
Nasdaq

14. FUTURE

15. PND Segment Incremental EBITDA Erosion ($Mm) Cumulative EBITDA Total
FY 2012E EBITDA
($29)
FY 2013E EBITDA
($65)
FY 2014E EBITDA
($104)
FY 2015E EBITDA
($129)
Cumulative EBITDA Total
($326)
PND
EBITDA
Erosion
-$320 Mm

16. Mixed Product Success
Garmin unsuccessful in markets they do not create
Smartphone “Nuvifone”
Infotainment?
Dominant in markets they create
General Aviation
Runners’ Watch

17. Mixed Product Success
Garmin unsuccessful in markets they do not create
Smartphone “Nuvifone”
Infotainment?
Dominant in markets they create
General Aviation
Runners’ Watch

18. Revenue Contribution (% of Total) Income Contribution (% of Total)
Aviation
Steady cash flows
Market share
80% in retrofit
70% in OEM
Slow growth for General Aviation
Highly entrenched competitors in cargo and commercial
Disproportionate amount of R&D spending
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

19. Revenue Contribution (% of Total) Income Contribution (% of Total)
Aviation
Steady cash flows
Market share
80% in retrofit
70% in OEM
Slow growth for General Aviation
Highly entrenched competitors in cargo and commercial
Disproportionate amount of R&D spending
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

20. Aviation Steady cash flows Market share
80% in retrofit
70% in OEM
Slow growth for General Aviation
Highly entrenched competitors in cargo and commercial
Disproportionate amount of R&D spending

21. Aviation Steady cash flows Market share
80% in retrofit
70% in OEM
Slow growth for General Aviation
Highly entrenched competitors in cargo and commercial
Disproportionate amount of R&D spending

22. Aviation Steady cash flows Market share
80% in retrofit
70% in OEM
Slow growth for General Aviation
Highly entrenched competitors in cargo and commercial
Disproportionate amount of R&D spending

23. Revenue Contribution (% of Total) Income Contribution (% of Total)
Marine
Gained small Marine market share
15%-20% of market
Market is currently in downturn
No signs of short term recovery
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

24. Revenue Contribution (% of Total) Income Contribution (% of Total)
Marine
Gained small Marine market share
15%-20% of market
Market is currently in downturn
No signs of short term recovery
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

25. Aviation & Marine Incremental EBITDA Gain ($Mm)
FY 2012E EBITDA $3
FY 2013E EBITDA
$22
FY 2014E EBITDA
$27
FY 2015E EBITDA
$36
Cumulative EBITDA Total
$88

26. Revenue Contribution (% of Total) Income Contribution (% of Total)
Garmin Outdoor
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

27. Garmin Outdoor Industry leader in product innovation & quality
Highest ASP’s ($223)
75% market share
Healthy Foothold
Slow-growth industry
Unit Sales 2.5% Y/Y

28. Garmin Outdoor Industry leader in product innovation & quality
Highest ASP’s ($223)
75% market share
Healthy Foothold
Slow-growth industry
Unit Sales 2.5% Y/Y

29. Garmin Outdoor Industry leader in product innovation & quality
Highest ASP’s ($223)
75% market share
Healthy Foothold
Slow-growth industry
Unit Sales 2.5% Y/Y

30. Revenue Contribution (% of Total) Income Contribution (% of Total)
Garmin Fitness
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

31. Historical Dominance Industry leader in quality and ASP’s ($219)
Highly profitable
FY 2011 Gross Margins 61%
Few competitors
Nike/TomTom partnership enter space Q2 2011

32. Historical Dominance Industry leader in quality and ASP’s ($219)
Highly profitable
FY 2011 Gross Margins 61%
Few competitors
Nike/TomTom partnership enter space Q2 2011

33. Historical Dominance Industry leader in quality and ASP’s ($219)
Highly profitable
FY 2011 Gross Margins 61%
Few competitors
Nike/TomTom partnership announced Q2 2011

34. Nike + TomTom = Profit Erosion
Nike’s brand name with TomTom as technological competitor will erode customer base
Smartphone Apps and Nike +
Nike advertising campaign will dominate GRMN efforts

35. Nike + TomTom = Profit Erosion
Nike’s brand name with TomTom as technological competitor will erode customer base
Smartphone Apps and Nike +
Nike advertising campaign will dominate GRMN efforts

36. Nike + TomTom = Profit Erosion
Nike’s brand name with TomTom as technological competitor will erode customer base
Smartphone Apps and Nike +
Nike advertising campaign will dominate GRMN efforts

38. FY2012 Will Be Most Costly Year for Fitness Segment

39. Higher Costs + Lower ASP’s  Margin Pressure

40. Outdoor & Fitness Incremental EBITDA Erosion (Mm)
FY 2012E EBITDA
$1.2
FY 2013E EBITDA
($3.6)
FY 2014E EBITDA
($9.5)
FY 2015E EBITDA
($14.0)
Cumulative EBITDA Total
($25.9)

41. Auto OEM / Infotainment Segment
Current Strategy
OEM Software/ maps packages
Chrysler, Dodge, Jeep & VW models
ASPs ~ $130
Operating Margins ~ 20%
1 million units = $26 million in Op. Income
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

42. Auto OEM / Infotainment Segment
Current Strategy
OEM Software/ maps packages
Chrysler, Dodge, Jeep & VW models
ASPs ~ $130
Operating Margins ~ 20%
1 million units = $26 million in Op. Income
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Income Contribution (% of Total)
PND
56.7%
39.6%
Aviation
11.2%
13.4%
Marine
8.5%
12.2%
Outdoor
13.2%
24.2%
Fitness
10.4%
10.5%
Auto OEM 0%

43. Auto OEM / Infotainment Segment
Future Growth Strategy
Fully Integrated Infotainment console
Partnering with Panasonic and Kenwood
Reason for optimism in industry – 10%+ CAGR
Aggressive action in FY2011

44. Auto OEM / Infotainment Segment
Future Growth Strategy
Fully Integrated Infotainment console
Partnering with Panasonic and Kenwood
Reason for optimism in industry – 10%+ CAGR
Aggressive action in FY2011

45. “K2/Everest” Prototype 2012 CES Conference in Las Vegas

46. Economic Forces against Growth
Entrenched Competition with Dominant Market Shares

47. Economic Forces against Growth
Entrenched Competition
Integration, Execution, and Regulatory Risks
Achieving Tier 1 Supplier status
Long sales cycles with Auto Manufacturers
Safety Issues and Concerns
Substitutable / Disruptive Technologies
In-dash bracket + mobile tablet device FREE Navigation App = Value Proposition

48. Economic Forces against Growth
Entrenched Competition
Integration, Execution, and Regulatory Risks
Achieving Tier 1 Supplier status
Long sales cycles with Auto Manufacturers
Safety Issues and Concerns
Substitutable / Disruptive Technologies
In-dash bracket + mobile tablet device FREE Navigation App = Value Proposition

49. Auto OEM / Infotainment Incremental EBITDA Gain ($Mm)
FY 2012E EBITDA -
FY 2013E EBITDA
$30
FY 2014E EBITDA
$44
FY 2015E EBITDA
$54
Cumulative EBITDA Total
$128

50. $136Mm
EBITDA Shortfall!

51. How does Garmin overcome the $136Mm EBITDA shortfall over the next four years?
Innovation: Auto OEM segment
ASPs ~ $400
Operating Margins ~ 10%
1 million vehicle units = $40M Op. Income
Unrealistic market share expectations
$264Mm EBITDA = 6.6 million units
3.3Mm units annually = 65% addressable market share
We project between 15%-20%

52. How does Garmin overcome the $136Mm EBITDA shortfall over the next four years?
Innovation: Auto OEM segment
ASPs ~ $400
Operating Margins ~ 10%
1 million vehicle units = $40M Op. Income
Unrealistic market share expectations
$264Mm EBITDA = 6.6 million units
3.3Mm units annually = 65% addressable market share
Aggressively projecting between 15%-20% share by 2015

53. Valuation Sum-of-the-Parts Most Accurate Method
Different segment markets
Different competitive landscapes
Different growth rates for segments

54. Valuation Sum-of-the-Parts Most Accurate Method
Different segment markets
Different competitive landscapes
Different growth rates for segments

55. Valuation Sum-of-the-Parts Most Accurate Method
Different segment markets
Different competitive landscapes
Different growth rates for segments

56. Segment Contributions to $43.50 Price Target

57. Segment Contributions to $43.50 Price Target

58. Segment Contributions to $43.50 Price Target

59. Segment Contributions to $43.50 Price Target

60. Segment Contributions to $43.50 Price Target

61. Segment Contributions to $43.50 Price Target

62. Segment Contributions to $43.50 Price Target

63. Segment Contributions to $43.50 Price Target
Total $43.62

64. Summary Declining Core Business Growth Opportunities Not Enough
Sum-of-the-Parts Valuation

65. Q & A Appendices Outline Declining Core Growth Opportunities Valuation
Methods
Sensitivity
Analysis
Outline
Declining Core
Stock Graph
Growth Opportunities
Outdoor
Fitness
Aviation
Marine
Infotainment
Valuation
Sum of Parts
Total
Other
Valuations
International
PND/Infotainment
Assumptions
Outdoor/Fitness
Assumptions
Marine Assumptions
Aviation
Assumptions
Pro Forma
Income Statement
Segment Contribution
Summary

66. Valuation Methods PND Aviation Marine Outdoor Fitness
7x TEV/EBITDA multiple
Competitor: TomTom
Aviation
DCF with 0.5% terminal growth rate
Marine
8.4x TEV/EBITDA multiple
Competitors: Johnson Outdoor, Raymarine (FLIR) and Lowrance
Outdoor
DCF with 1% terminal growth rate
Fitness
DCF with 1.5% terminal growth rate
Auto OEM/Infotainment

67. Sensitivity Analysis

68. Other Valuation Methods

69. PND/Infotainment Segment Assumptions
PND BASE ASSUMPTIONS
FY 2012E
FY 2013E
FY 2014E
FY 2015E
Market Share
38%
39.0%
40.0%
ASP $ $ $ $
Change ASP
-6.5%
-8.0%
Change Unit Cost
-10.1%
-10.0%
EBIT Margin
15.0%
14.0%
EBIT Multiple
7.0x
AUTO OEM ASSUMPTIONS
Vehicle Prod Growth
2.5%
USA Manf % Units
32.0%
35.0%
37.0%
19.0%
20.0%
25.0%
Non-US Units (Mm)
0.35
0.5
0.75 1 $ $ $ $
Gross Margin
30.0%
Operating Margin
18.0%
10.0%

70. Outdoor/Fitness Segment Assumptions
Base Assumptions
FY 2012E
FY 2013E
FY 2014E
FY 2015E
Outdoor Unit Sales Growth
4.0%
2.5%
2.0%
Outdoor Average Sales Price Growth
-1.0%
Outdoor COGS as % of Rev
38.0%
Outdoor Advertising Expense as % of Gross Income
9.0%
10.0%
Outdoor S,G, & A Expense as % of Gross Income
22.0%
Outdoor R & D Expense as % of Gross Income
8.5%
Fitness Unit Sales Growth
5.0%
3.5%
Fitness Average Sales Price Growth
-5.0%
Fitness COGS as % of Rev
42.0%
45.0%
48.0%
50.0%
Fitness Advertising Expense as % of Gross Income
14.0%
Fitness S,G, & A Expense as % of Gross Income
24.5%
Fitness R & D Expense as % of Gross Income
16.0%

71. Marine Segment Assumptions
Gross Margins……… %
Operating Margins….25-35%
Sales Growth…………Stagnant to 10%
Acquisition……………Bull Case
Multiple………………..Based on Lowrance/Navico deal
(8.4x forward EBITDA)

72. Aviation Segment Assumptions
Base Case
Bear Case
Bull Case
Growth as % of GA
1.0% 0% 2%
Growth in ASP
$150
$120
$180
COGS as % of Revenue
32%
34%
30%
R&D as % of Revenue
35%
38%

73. Competition Aviation: Honeywell, Rockwell-Collins, Aspen
Marine: FLIR, Navico, Johnson Outdoors
Auto: TomTom, Harman, Continental, Bosch
Fitness: Nike, TomTom, Polar, Timex

74. International Opportunities

75. Pro Forma Income Statement

76. Segment Contributions and Margins
Segment Data (as of FY2011)
Revenue Contribution (% of Total)
Gross Margins
Operating Margins
Income Contribution (% of Total)
PND
56.7%
33.6%
15.0%
39.6%
Aviation
11.2%
67.5%
27.3%
13.4%
Marine
8.5%
57.6%
26.7%
12.2%
Outdoor
13.2%
64.0%
38.7%
24.2%
Fitness
10.4%
58.0%
20.5%
10.5%
Auto OEM 0% -