Safe Harbor Statement

These materials include forward‐looking statements. These statements are based on 

the current expectations of Garmin Ltd. and are naturally subject to uncertainty and 

changes in circumstances. Forward‐looking statements include, without limitation, 

statements containing words such as "proposed" and “intends”

or “intended”

and 

"expects" or "expected". By their nature, forward‐looking statements involve risk and 

uncertainty because they relate to events and depend on circumstances that will occur 

in the future. There are a number of factors that could cause actual results and 

developments to differ materially from those expressed or implied by such forward‐

looking statements. Other unknown or unpredictable factors could

cause actual results 

to differ materially from those in the forward‐looking statements. These factors 

include those discussed or identified in the filings by Garmin Ltd. with the U.S. 

Securities and Exchange Commission in its Annual Report on Form 10‐K.  Garmin Ltd. 

does not undertake any obligation to update publicly or revise forward‐looking 

statements, whether as a result of new information, future events or otherwise, except 

to the extent legally required.

1

Key Financial Metrics

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$ in Millions 2004 2005 2006 2007 2008

Revenue $763 $1,028 $1,774 $3,180 $3,494

Revenue Growth 33% 35% 73% 79% 10%

Diluted EPS (GAAP) $0.95 $1.43 $2.35 $3.89 $3.48

Diluted EPS Excl. FX $1.04 $1.37 $2.35 $3.79 $3.69

EPS Growth 22% 32% 72% 61% ‐3%

Return on Invested Capital

3

Shareholder Returns

4

Aviation Growth

5

Future Growth•Grow market share in retrofit and OEM 

markets

•Expand presence in Business Jet (VLJ) market 

•Increase G500, G600 and G3X product line 

penetration into existing general aviation 

(GA) and light sport aircraft (LSA)

•Expand into Part 23/25 market with G3000 

and future offerings

Aviation Segment

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OEM PartnershipsCompetitorsHoneywellAvidyneRockwell Collins

Market shareRetrofit: >80%OEM:  ~70%Portable:  >95%

DistributionRetrofit and handheld products: •600 aviation distributors worldwide•Authorized Garmin sales and service centers 

capable of selling, installing, and servicing 

aviation products

OEM:•G1000 integrated cockpit through major aviation 

manufacturers

Outdoor / Fitness Growth

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Future Growth•Improve outdoor and fitness technology 

through new product introductions with 

enhanced utility

•Expand distribution to additional cycling and 

running stores and expand presence with 

existing retailers

•Distribute golf product into retail and golf 

course channels

•Integrate expanded content into both outdoor 

and fitness products

Outdoor/Fitness Segment

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CompetitorsOutdoor –

MagellanCobra

Bushnell

Fitness – NikePolar

Market shareGreater than 70%

Distribution

Sponsorships

Marine Growth

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Future Growth•Become the vendor of choice in the 

OEM space with complete line of 

marine products

•Offer technology for the large boat 

market

•Improved cartography and data 

content

Marine Segment

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CompetitorsFuruno

Raymarine

Simrad/Lowrance

NavMan/Northstar

Market shareApproximately 25% market share

Distribution

OEM Partnerships

Auto / Mobile Growth

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Future Growth•Continue to grow market share in the global 

PND sector

•Align with GSM wireless carriers to distribute 

Garmin‐Asus nüvifones

•Differentiate products with increased content 

and Location‐based services (LBS)

•Expand Auto OEM business as navigation 

penetration rates increase

Auto/Mobile Segment

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PND CompetitorsTomTom

Magellan (Mitac)Mio (Mitac)

Navman

(Mitac)Navigon

Auto OEM CompetitorsAlpineDelphiHarman

Blauupunkt

Mobile CompetitorsAppleNokiaLG

SamsungRIMMPalmHTC

TelenavNIM

Distribution

OEM Partnerships

Expanding worldwide market share through:• Growth in US market share that currently exceeds 55% share• Retention of European market share• Competition consolidating or exiting the market leading to opportunity to

grow profitable market share

Worldwide PND Market Share

PND ASP Trend

Flat Y-o-Y

Garmin‐Asus nüvifone

Connect… Communicate… Navigate…15

Phones for the location‐based life.

Collaboration Based on Innovation•Garmin‐Asus will collaborate to design, build, and market a line of nüvifones

•Alliance leverages core competencies of each company (navigation

and mobile 

telephony

•Corporate philosophies and visions are closely aligned

Garmin‐Asus nüvifone

Connect… Communicate… Navigate…

•Seamlessly integrated LBS‐centric smartphone

product line

•A state‐of‐the‐art, easy‐to‐use phone•A premium navigation device•Leverages powerful and useful web content for navigation and communication

•nüvifone

product line•All are LBS‐centric smartphones•Different platforms for different users

TravelersSocial CareeristsTechnology Enthusiasts

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Price and Cost

•Pricing declines will moderate due to:•Tier 2 & 3 competitors are squeezed out of 

the market•Enhanced features and functionality are 

brought to market

•Bill of materials (in order of magnitude)•LCD•Nand

flash memory•Map and content licensing•GPS Chipset•Analog IC

Margin compression subsides as BOM declines keep pace with ASP declines.

Operating Expense

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•Long‐term target of 5‐6% of sales

•Continue to invest in R&D to maintain best‐in‐

class technology in all segments

•Currently employee over 1900 engineers and 

engineering associates worldwide

•R&D is heavily weighted toward aviation with 

approximately 35‐40% of total investment focused 

on this segment

Research & Development Advertising, SG&A

•Long‐term target of 11‐13% of sales

•Continue to invest in branding activities through 

print & media ads, sponsorships, and dealer‐blended 

point‐of‐sale efforts 

•Leverage other SG&A components which are driven 

primarily by staffing levels

Long‐Term Business Model

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Net Revenue Growth

+10‐15%

Gross Margin

35 to 37%

R&D

5 to 6%

Advertising

5 to 6%

SG&A

6 to 7%

Operating Margin

17 to 21%

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Q3 Income Statement

($ millions) Q3 2009 Q3 2008 Change

Revenue $781 $870 (10%)

Gross Profit $410 $386 6%

Gross Margin 52.4% 44.3% 810 bps

Advertising $46 $51 (10%)

Other SG&A $71 $68 4%

R&D $56 $53 6%

Total Operating Expense $173 $172 1%

Operating Income $237 $214 11%

Operating Margin 30.3% 24.6% 570 bps

Other Income / (Expense) $20 ($3)Income Tax $42 $40 5%

Net Income $215 $171 26%

Earnings per Share (GAAP) $1.07 $0.82 30%

Pro-Forma EPS (excl. FX and TA gain) $1.02 $0.87 17%

Units Shipped (K) 3,866 3,855 0%

Q3 YTD Income Statement

YTD 2009 YTD 2008 Change

Revenue $1,887 $2,446 (23%)

Gross Profit $957 $1,123 (15%)

Gross Margin 50.7% 45.9% 480 bps

Advertising $103 $147 (30%)

Other SG&A $193 $194 -1%

R&D $167 $156 7%

Total Operating Expense $463 $497 (7%)

Operating Income $494 $626 (21%)

Operating Margin 26.2% 25.6% 60 bps

Other Income / (Expense) $22 $84 (74%)Income Tax $91 $135 (33%)

Net Income $425 $575 (26%)

Earnings per Share (GAAP) $2.12 $2.68 (21%)

Pro-Forma EPS (excl. FX and TA gain) $2.10 $2.47 (15%)

Units Shipped (K) 9,997 10,563 (5%)

($ Millions)

FY Q1 Q2 Q3($ millions) 2008 2009 2009 2009

Cash & Marketable Securities $973 $1,244 $1,505 $1,802Accounts Receivable $741 $420 $519 $574Inventory $425 $353 $323 $373Deferred Income Taxes $50 $61 $59 $53Prepaid Assets $25 $55 $65 $50Property, Plant & Equipment $445 $441 $443 $444Other Assets / Goodwill $266 $220 $230 $221

Total Assets $2,925 $2,794 $3,144 $3,517

Accounts Payable $160 $79 $137 $186Other Accrued Liabilities $300 $204 $273 $363Income Taxes Payable $235 $241 $257 $254Dividend Payable $0 $0 $0 $150Deferred Income Taxes $4 $12 $15 $9Shareholders Equity $2,226 $2,258 $2,462 $2,555

Total Liabilities / Equity $2,925 $2,794 $3,144 $3,517

Balance Sheet

Cash Flow

Fiscal Q1 Q2 Q3 YTD($ millions) 2008 2009 2009 2009 2009

Net Income $733 $49 $162 $215 $426

Depreciation/Amortization $78 $22 $21 $24 $66

Accounts Receivable $206 $318 ($85) ($55) $178

Inventory $83 $59 $30 ($46) $43

Accounts Payable ($236) ($78) $54 $46 $23

Other Cash from Operations ($2) ($71) $74 $109 $112

Net Cash Flow from Operations $862 $299 $256 $293 $848

Investing Activities ($56) ($66) ($234) ($258) ($558)

Financing Activities ($808) ($2) $4 $2 $4

Exchange Rate Changes ($9) ($6) $11 $16 $21

Net Increase/(Decrease) in Cash ($11) $225 $37 $53 $315

Cash at End of Period $697 $922 $959 $1,012 $1,012

Marketable Securities $276 $321 $546 $790 $790Total Cash & Marketable Securities $973 $1,243 $1,505 $1,802 $1,802

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Uses of Cash

• Dividend Payment• Annual 2009 dividend declared and payable in December; $150 million use of cash

• Acquisition opportunities• 10 European distributors and 2 technology acquisitions in 2007‐2008; $190 million use of cash• Continue to evaluate tuck‐in technology and content transactions

• Share buyback program• Completed 17.2 million shares during 2008 and 2009; $674 million use of cash• Outstanding authorization from the Board of Directors for $256

million share repurchase; 

plan expires on December 31, 2009

Why GRMN?

Long‐term growth opportunities within all four segments of our diversified business model

Continued innovation and world class technology required to compete in the growing navigation industry

Future opportunities in the emerging mobile handset and Automotive OEM markets

Solid business execution by management

• Excellent operational and financial metrics

• Ability to scale the business to match market demand

Very high return on capital (~50%)

Strong free cash flow and no debt creates flexible use of cash:

• Future acquisitions

• Stock repurchase

• Cash dividends

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