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Garmin Ltd. 02 July 2008

Update Report – 1Q 08 Results

Consumer outlook deteriorates but scope for growth remains

NASDAQ BUY Fundamental research indicates a 32% upside in the NASDAQ common stock over the next 6-24
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months. to thethefull
have calculated report
target freeonoffundamental
price based charge at factors, using a weighted average
Common of target prices obtained using DCF and comparative valuation methodologies.
http://www.iirgroup.com/researchoracle/viewreport/show/20166
Stock
Ticker: GRMN
Target price: US$56.79
We reiterate the NASDAQ common stock a BUY with a 6-24 month target price of US$56.79 per share.
Current price: US$42.94

European BUY The European stock is expected to appreciate 56% over the next 6-24 months as the 32%
fundamental upside is augmented by 24 percentage points upside purely attributable to the
Stock anticipated appreciation of the US dollar against the Euro over the same period. We are reverting to a
6-24 month investment horizon as we no longer expect a significant currency impact on the European
Ticker: GRMN.F1 stock over 6-12 months2.
Target price: €42.07
Current price: €27.03 We reiterate the European stock a BUY, with a 6-24 month target price of €42.07.

Supervisor: Nirav Shah

Analyst: Aakash N. Singh
Editor: Heloise Capon
Global Research Director:
Satish Betadpur, CFA
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com

Next news due:

2Q 08 results, 30 July 2008
Report summary
Garmin Ltd. (Garmin) reported strong 1Q 08 results, primarily driven by y-o-y growth in the
Automotive/Mobile and Marine segments. Although revenues were marginally below expectations,
operating margin was significantly above our estimate in 1Q 08, despite a y-o-y decline, primarily due
to lower-than-anticipated Cost of Goods Sold (COGS). We believe the company’s leadership in the
Portable Navigation Device (PND) market and anticipated continued increase in global demand for
PND products during FY 2008, despite the limiting affect of global economic downturn on consumer
spending, will drive revenue growth, going forward. We have revised our estimates downwards given
the company’s cautious outlook going forward in view of the ongoing downturn of the US economy.
However, we believe at current levels the NASDAQ common stock trades below its fundamental value
and therefore view it as an attractive investment opportunity.

Currency impact for US investors

The company reports in US dollars. Earnings forecasts are therefore also expressed in US dollars. As a
result the impact of currency movements on the price of the NASDAQ common stock is assumed to be
neutral. Where specific currency risks are identified these will be highlighted in the report.

Currency impact on European Stock

The impact by itself of the anticipated currency movement on the European stock (now €27.03),
without considering changes in share price, is positive and expected to be2:
Over 6 months: €25.56
Over 12 months: €28.63
Over 24 months: €31.81

Page 1 Refer to page 4 for footnotes