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® | 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 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 took underwater 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. Most recently, he was a director new product development model Sam of the World Resources Institute. created. We take to heart his innovation- driven business strategy: “New products, In his book The Essence of a Family new geographies, and every few years, an Enterprise, Sam wrote, “A good leader SAMUEL CC. JOHNSON believed business acquisition.” We pursue his commitment builds an organization infused with sound to serving employees, customers, the principles and values, indelibly locked into should serve a higher purpose and be environment and the communities where the intellect and soul of all.” His focus on managed for the next generation. The we do business. innovation continues to guide Johnson Outdoors toward leadership in the global SAMUEL C. JOHNSON 1928–2004 man known by all as simply “Sam” leaves “I believe that making a better place goes outdoor recreation industry. His strategic beyond providing jobs,” Sam once said. vision continues to fuel our drive toward a legacy of visionary leadership, remark- “It means being a worthy neighbor who sustainable, long-term growth and profi t- able success and great humanitarianism. cares about the neighborhood. It means ability. And his overriding principle— adding an unspoken dimension of decency “Do the right thing”—is indelibly locked and consideration to the community.” into the soul of our enterprise. Ocean Kayak™ Carlisle ® Black Magic Paddle Extrasport™ Eagle PFD Prowler 15 WATERCRAFT

Necky™ OrbitFish

Old Town® Old Town ® Necky™ Dirigo Charles River Manitou Sport

Extrasport™ Ocean Kayak™ Drytop SideKick

O u r B r a n d s WATERCRAFT

Johnson Outdoors has a vision: This year’s new Escape electric- to own the water within a quarter powered boats are the fi rst mile of shore. And we have the real innovation in the marine passion to realize that vision. industry in years. Using a clean AN ADVENTURE IN PADDLING - Our watercraft brands reflect and quiet patented Minn Kota® a rich tradition of innovation, electric propulsion system, this OCEAN KAYAK, NECKY from the fi rst elegant wooden line of recreational watercraft canoes to sleek space-age- brings new ease on the water AND OLD TOWN composite kayaks to fun-time to a whole new market for Escape ® peddle and patio boats to light- Johnson Outdoors. Chaise Lounger , durable accessories. D I V N G

MK17/R390 MK25 X650

Cobalt and Hi-Viz TM Yellow Twin Jet Fins Aladin Computer Console

Knighthawk Smart TEC Wrist Aladin TEC Wrist

Classic Sport BC

Ventana Mask Phoenix

O u r B r a n d s DIVING

Some dive to get away from the Our products are designed for world, others to get closer to it. comfort and safety to provide a Whatever the reason, divers are lifetime of reliable performance underwater adventurers exploring for the recreational and pro- the amazing hidden realm beneath fessional technical diver alike. SCUBAPRO® UWATEC - the waves. Deep down they want Our elite global dealer network and need the best. Johnson has unparalleled expertise, DEEP DOWN ONLY THE BEST WILL DO. Outdoors sees they get it. Our ensuring SCUBAPRO® UWATEC SCUBAPRO® UWATEC brands consumers of outstanding are global leaders in innovative products and world-class service. recreational . EverFlex K2 Digital Compass OUTDOOR EQUIPMENT

Wild Basin

Twister Solar Shade

Extreme Coldweather Freedom Military Tent

O u r B r a n d s Evolution OUTDOOR EQUIPMENT Commercial Tent

When the great outdoors beckons, kudos as the fi rst-ever camping Eureka!® brand tents can meet tent especially for people with every challenge. Specialty disabilities. The K-2 XT pro- commercial and military tents, tected world-famous adventurer camping gear and Silva® com- Pasquale Scaturro from Africa’s EUREKA!® - passes round out Outdoor Equip- extreme heat, rain and insects ment Group’s product portfolio as he fi lmed and solved “The TURNING THE OUTDOORS INTO at Johnson Outdoors. Mystery of the Nile” — the new A WELCOME ADVENTURE Field & Stream named the IMAX hit. New this year: solar lightweight, durable Zeus 4EXO shade day-shelters to add com- “2004 Best of the Best” for fort and cool from the backyard camping. The Freedom received to the beach. Vantage Vector MK-330 Charger MARINE ELECTRONICS

Riptide Autopilot

Maxxum Pro

SmartCast RF35

Matrix 97

O u r B r a n d s MARINE ELECTRONICS

In 2004, Johnson Outdoors in trolling and specialty electric added Humminbird® to the motors, delivering “Anywhere. Marine Electronics Group, estab- Anytime.” performance. Work MINN KOTA® - lishing it alongside the ever- has begun in earnest to lever- popular Minn Kota® fl agship. age the strength of Minn Kota® ANYWHERE. ANYTIME. The addition of this well-known and Humminbird® to create fi shing and marine electronics a formidable presence in the ® brand gives us even stronger marine electronics marketplace. HUMMINBIRD - top-of-mind presence among Two iconic brands. One focused SIMPLY. CLEARLY. BETTER. 987c serious anglers. Minn Kota® vision. A future of boundless enjoys the mantle of leadership opportunity. BOARD OF DIRECTORS MANAGEMENT PERSPECTIVE

HELEN P. JOHNSON-LEIPOLD, 47 Chairman and Chief Executive Officer. On behalf of the Company’s people and In fi scal 2004 Johnson Outdoors achieved double-digit growth in net Director since 1994. ® sales, income and earnings. The Humminbird acquisition, strong Also Chairman of Johnson Financial Group, military tent sales and record growth in Motors offset declines in Director of S.C. Johnson & Son, Inc. and each of us individually, we, the Directors Watercraft and Diving. Investment in innovation contributed to a JohnsonDiversey, Inc., growth in margins, as system integration and restructuring efforts helped to improve operating efficiency. This year’s emphasis on of Johnson Outdoors, express our deepest

expense control, inventory management and accounts receivable THOMAS F. PYLE, JR., 63 reflects our continued focus on cash management. We ended the Vice Chairman of the Board. and most humble appreciation of Samuel year with cash reserves of nearly $70 million. Director since 1987. Chairman, The Pyle Group. Also Director of Sub Zero Corporation. We remain committed to strengthening the competitiveness of our Curtis Johnson for the enduring contribu- businesses long-term. Maintaining a healthy balance sheet, with sub- stantial liquidity, provides us the fl exibility to pursue that objective. tions he made to this Company and its Jervis B. Perkins Paul A. Lehmann JOHN M. FAHEY, JR., 52 Director since 2001. President and Chief Executive Officer reputation throughout the world; for the and Chairman of the Executive Committee President and Vice President and of the Board of Trustees of the National Chief Operating Offi cer Chief Financial Offi cer Geographic Society. Also Director of Jason Foundation for Education. inspiring and visionary example he set for

GREGORY E. LAWTON, 53 each of us; for showing us the joy to be Director since 1997. President and Chief Executive Officer (thousands, except per share data) 2002 2003 2004 and Director of JohnsonDiversey, Inc. found by simply being alive; and for the Also Director of General Cable Corporation and Superior Metal Products, Inc. 200Operating Results 4 gift of having known such an honest and Net sales $342,532 $315,892 $355,274

Gross profi t 141,054 127,989 147,618 TERRY E. LONDON, 55 Operating profi t 19,751 11,613 19,128 Director since 1999. compassionate man. President of London Partners LLC. Also Director of Pier 1 Imports, Inc. Diluted earnings From a resolution passed on December 8, 2004 (1) per common share $ 3.59 $ 0.63 $ 0.99 by the Board of Directors of Johnson Outdoors.

Diluted average common Summary Financial Information shares outstanding 8,430 8,600 8,774

Capitalization Total debt $ 88,253 $ 77,473 $ 67,019 Shareholders’ equity 124,145 144,194 160,644 SAMUEL C. JOHNSON Total debt to total capital 41.6% 35.0% 29.4% Director since 1970. Chairman of Johnson Financial Group (1) Includes a gain on sale of subsidiary of $2.65 per diluted share. and Chairman Emeritus of SAMUEL C. JOHNSON 1928–2004 S.C. Johnson & Son, Inc.