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View Annual Report THE SPIRIT OF ADVENTURE Old Town® | Canoes, touring Necky™ | Touring, recreational Escape® | Recreational electric watercraft and recreational kayaks and whitewater kayaks WATERCRAFT Ocean Kayak™ | Sit-on-top kayaks Carlisle® | Paddles and oars Extrasport™ | Personal flotation devices and wearable paddle gear Minn Kota® | Electric trolling motors, Humminbird® | Sonar and GPS marine batteries, chargers and electronics marine accessories Our market-leading brands MARINE ELECTRONICS are known worldwide for outstanding quality and performance. ® SCUBAPRO | Under water breathing UWATEC™ | Underwater dive DIVING regulators, BCs, masks, computers and fins, snorkels and suits gauges Eureka!® | Camping tents, camping gear, Silva® | Compasses and gauges specialty commercial and military tents Cover photograph by Samuel C. Johnson OUTDOOR EQUIPMENT C H A I R M A N ’ S L E T T E R Throughout the excitement and challenges of At the same time, we demon- wrist computer and UWATEC™ vation—in our products, in our strate our long-term commitment Smart TEC and Aladin™ TEC marketing, in our business model. 2004, Johnson Outdoors held steady on our by investing more resources computers. That also means continuous than ever to enhance our unique investment in understanding our ultimate resolve: We are committed to ensuring insight into the consumer, and Marine Electronics. Our markets and consumers, building ® sustainable growth and profi tability through to stay on the cutting edge of integration of Humminbird , on superior insight to create suc- research and development in a leading global fishfinder brand, cessful product “firsts” like those continuous, meaningful innovation. our industry. finished ahead of schedule, shown elsewhere in this report. while the Maxxum™ from Minn A LOOK BACK Kota® generated record sales. While the proposed merger Watercraft. We restructured to Now our disciplined team is between Johnson Outdoors Inc. In 2004, we achieved double-digit remove cost and complexity and driving forward to capture new and JO Acquisition Corporation improvements in net income, increase flexibility in this busi- growth opportunities as we build was not approved, the go-private earnings and sales, while strength- ness, treating people right when on Minn Kota® strengths and analysis gave us valuable financial ening our business through a sig- our decisions meant a change in Humminbird® potential. planning and strategic business nificant acquisition and continued their lives. Watercraft is now the insights on which we will build focus on creating a lean, flexible right size, with the right systems The Marine Electronics group as we continue as a publicly organization. and processes and the right team. saw nine months of exceptional traded company. Our investments have resulted wholesale and retail sales. While Our acquisition of Humminbird in a change for the better, as this fourth quarter sales softened due Looking ahead, there may never brand fishfinders and consumer business will be stronger and to retail uncertainty regarding the be a perfect year when all the electronics gave us an important more competitive going forward. economy, happily, early season trends are in our favor. We live growth platform for leading-edge We are on the upswing. orders for fiscal 2005 are strong. by the principle that the economy technology, and a model to follow should not be an excuse for why in the future. We continue to invest in new Outdoor Equipment. Military business is bad, nor should it be products, which drove about 30 tent sales drove excellent perfor- the reason for why business is Our alliance with sports rack percent of Watercraft sales this year. mance; however, with contracts good. We can’t let trends dictate manufacturer Thule Inc. high- We’ve created a totally new market and emergency orders slowing, our future. We can take charge of lights our creativity in stimulat- segment with our breakthrough we do not expect the same results our destiny by out-innovating our ing our markets — creativity all Escape® brand “flip the switch and in 2005. Our focus is creating competition. our businesses demonstrated in go” small electric boats. Excitement better balance across all Outdoor delivering market-winning new also surrounds the Old Town® Equipment segments, and this At Johnson Outdoors, we choose products that drove a third of Dirigo kayak, with enhanced will take time. Commercial tent to innovate—and succeed. Our sales this year. comfort and control features; sales were up, albeit from a small people and our brands are second the Ocean™ Kayak SideKick, a base. Consumer camping—tents, to none. Our ability to turn ideas Our emphasis on enhanced seat-and-a-half kayak for an adult sleeping bags, compasses and into winning products has never systems points up the power of and a child or a large pet; and our other accessories—was flat, been greater, and our commit- our innovative business model, new Extrasport™ accessories and suggesting declines here may ment to our deeply-held values enabling us to create a more “comfort-fit” seating. have leveled and it’s time to grow. has never been stronger. efficient, productive organization. Again, our ability to innovate Diving. We took a hard look at this and reinvigorate our markets is Our possibilities and potential are global business and began taking crucial. We are combining new endless. The future is ours for the action to rejuvenate our market, designs and new technology making. capitalizing on Diving’s synergies with exciting new alliances and and strengths. Breakthrough prod- cutting-edge market research to ucts and marketing programs are ensure new product success. key to growing sales and gaining Helen P. Johnson-Leipold market share. We are working to A LOOK AHEAD Chairman and reinvigorate our dealers’ business Johnson Outdoors seeks long-term, Chief Executive Officer and consumer base with new prod- sustainable growth and profit- ucts like the Scubapro® Xtender ability through continuous inno- An Old Town® Canoe fi rst, created by Sam Johnson in Plastic boats The lifeblood of our business the 1970s, that is now a half-a-billion-dollar market Underwater SCUBAPRO® innovation, still considered breathing For Johnson Outdoors, the key to growth and profi tability is revolutionary decades after its introduction regulator Electric Minn Kota® has become the fi shing enthusiast’s best trolling motors friend and the market leader —continuous innovation that is meaningful to our consumers. Escape® “fl ip the switch and go” boats bring a Small electric- completely new experience and add comfort, powered boats convenience and ease to water recreation That keeps us a clear step ahead of the competition. That empowers us to take charge of our future. And our greatest Wireless Humminbird® breakthrough technology has captured fi shfi nder the attention of fi shing enthusiasts around the world source of innovation is our people, whose passion and A fi rst for people with disabilities, developed by The Freedom Eureka!® using universal design concepts to make the creativity have led to many important product “firsts.” tent outdoor experience more accessible to more people Extrasport™ innovation that brings “the most Extrasport™ comfort in the water” to kayakers and other paddlers life preserver while earning U.S. Coast Guard safety approval Modern-day UWATEC™ Air X Nitrox took underwater computer dive computer technology to new heights in the 1990s Easy-to-use The Escape® patented rigging system opened sailing sailboats to a broader market Wireless CoPilot from Minn Kota® introduced hands-free remote steering steering from the fi shing rod, wrist or belt MANY MORE TO COME Certain matters discussed in the Chairman’s Letter 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 2004 Form 10-K for a discussion of uncertainties and risks associated with these statements. www.johnsonoutdoors.com Johnson Outdoors Inc. 555 Main Street Racine, Wisconsin 53403-1015 USA (262) 631-6600 A TRIBUTE TO OUR FOUNDER Where the Adventure Began WHEN SAM JOHNSON JOINED JOHNSON WAX Though Sam’s consideration may have in 1954, all the company’s products were been unspoken, it did not go unrecognized. wax-based. With a passion for innovation Fortune called him “corporate America’s and a willingness to take calculated risks, leading environmentalist” when he was Sam expanded the family business to new inducted into the U.S. National Business products in new markets, turning a small Hall of Fame. He held seven honorary wax company into a multi-billion-dollar doctoral degrees and received numerous family of international companies. international awards recognizing his busi- ness, environmental and philanthropic As part of that growth, Sam established contributions, including the Charles A. Johnson Outdoors in 1970—and soon Lindbergh Award for balancing techno- created the plastic boat industry through logical advancement and environmental Old Town Canoe®. Though the world preservation; the Experimental Aircraft economy was in disarray, Sam knew there Association’s Freedom of Flight Award were always consumers looking for higher for his contributions to aviation; and the price value. He knew more affordable, Lifetime Environmental Award from the more convenient plastic boats would United Nations Environment Programme. be just what they wanted. Today plastic boats are a half-billion-dollar market, and Sam was a founding member of the Johnson Outdoors is the number one seller. World Business Council for Sustainable Development, and was named in 1993 to In the 35 years since our founding, the U.S. President’s Council on Sustainable Johnson Outdoors has grown into a lead- Development. From 1990 to 2000, he ing provider of innovative, top-quality served on the Board of Governors for recreation products that make it easy for The Nature Conservancy, acting the last people to have fun in the great outdoors. two years as Chairman of the Board of We continue to employ the quintessential Governors.
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