Income Statements (2006-2008)

(in thousands, except per share amounts)

2008 2007 2006 Forecast Basis 2009 2010 2011

Net Revenue (12% ave sales)
H-D motorcycle 4,278,241 4,446,637 4,553,561 Revenue x 1.12 4,791,630 5,366,626 6,010,621
Parts & Accessories 858,748 868,297 862,251 Revenue x 1.12 961,798 1,077,213 1,206,479
General Merchandise 313,835 305,435 277,490 Revenue x 1.12 351,495 393,675 440,916
Buell Motorcycle 123,086 100,534 102,227 Revenue x 1.12 137,856 154,399 172,927
Defense and Other 20,397 5,945 5,157 Revenue x 1.12 22,845 25,586 28,656
TOTAL 5,594,307 5,726,848 5,800,686 6,265,624 7,017,499 7,859,599 Total Production Budget
Cost of Sales 3,663,488 3,612,748 3,567,839 Ratio COS/Total Revenue 4,103,107 4,595,479 5,146,937 13,845,523
Gross Profit 1,930,819 2,114,100 2,232,847 2,162,517 2,422,019 2,712,662 Total Marketing Cost
HDMC Operating Expense 964,429 883,457 823,857 Ratio OE/Total Revenue 1,080,160 1,209,780 1,354,953 911,223
HDMC Operating Income 966,390 1,230,643 1,408,990 1,082,357 1,212,240 1,357,708
HDFS Operating Income 82,765 212,169 210,724 Ratio OI/Total Revenue 92,697 103,820 116,279
Corporate Operating Expense 20,131 17,251 22,561 Ratio COE/Total Revenue 22,547 25,252 28,283
Total Operating Income 1,029,024 1,425,561 1,597,153 1,152,507 1,290,808 1,445,705
Investment Income 9,495 22,258 27,087 Rate decrease = - 0.57 4,083 1,756 755
Interest Expense 4,542 - - Same as 2008 4,542 4,542 4,542
Income Before Provision for Taxes 1,033,977 1,447,819 1,624,240 1,152,048 1,288,021 1,441,918
Provision for Income Taxes 379,259 513,976 581,087 Tax Rate = 0.37 426,258 476,568 533,509
Net Income from Continuing Ops 654,718 933,843 1,043,153 725,790 811,453 908,408
Net Income (Loss) from Disc Ops - - -
Extraordinary Items - - -
Net Income 654,718 933,843 1,043,153 725,790 811,453 908,408
Basic/Primary Earnings per common share 2.8 3.75 3.94
Diluted Earnings per common share 2.79 3.74 3.93
Weighted Ave Shares:
Basic 234,225 249,205 264,453
Diluted 234,477 249,882 265,273
Dividends Paid 1.290 1,060 0.81
Domestic Revenue 3,853,242 4,206,427 4,629,895
International Revenue 1,741,065 1,520,421 1,170,791
5,594,307 5,726,848 5,800,686
Harley-Davidson Balance Sheets Current Totql Revenue Total Revenue Forecast
2008 2009 2010 2011
(all numbers in thousands) 5,594,307 6,265,624 7,017,499 7,859,599

Period Ending 31-Dec-08 31-Dec-07 Forecast Basis

Assets
Current Assets
Cash and Cash Equivalents 593,558 402,854 Ratio CACE/Total Revenue 664,785 744,559 833,906
Short Term Investments 3,822,426 2,475 Ratio STI/Total Revenue 4,281,117 4,794,851 5,370,233
Net receivables 419,585 2,641,058 Ratio NR/Total Revenue 469,935 526,327 589,487
Inventory 400,908 348,697 Ratio I/Total Revenue 449,017 502,899 563,247
Other Current Assets 141,404 71,230 Ratio OCA/Total Revenue 158,372 177,377 198,662
Total Current Assets 5,377,881 3,467,314 6,023,227 6,746,014 7,555,536
Long Term Investments 817,102 845,044 Rate decrease = -0.033 790,138 764,063 738,849
Property Plant and Equipment 1,094,487 1,060,590 Depreciation = 5% 1,039,763 987,775 938,386
Goodwill 138,579 61,401 Rate increase = 1.26 313,189 707,806 1,599,642
Intangible Assets - -
Accumulated Amortization - -
Other Assets 112,336 167,881 Same as 2008 112,336 112,336 112,336
Deferred Long Term Asset Charges 288,240 54,376 Same as 2008 288,240 288,240 288,240
Total Assets 7,828,625 5,656,606 8,566,892 9,606,234 11,232,988
Liabilities (0) (0) (0) Additional funds needed
Current Liabilities 543,308
Accounts Payable 525,727 450,361 Ratio AP/Total Revenue 588,814 659,472 738,609 830,168
Short/Current Long Term Debt 1,762,152 1,154,369 Same as 2008 1,762,152 1,762,152 1,762,152 1,402,120
Other Current Liabilities 315,878 300,349 Financing Source 859,186 1,689,354 3,091,474 2,775,596
Total Current Liabilities 2,603,757 1,905,079 3,210,152 4,110,978 5,592,235
Long Term Debt 2,176,238 980,000 Same as 2008 2,176,238 2,176,238 2,176,238
Other Liabilities 933,027 396,036 Same as 2008 933,027 933,027 933,027
Deferred Long Term Liability Charges - -
Minority Interest - -
Negative Goodwill - -
Total Liabilities 5,713,022 3,281,115 6,319,417 7,220,243 8,701,500
Stockholder's Equity
Misc. Stocks Options Warrants - -
Redeemable Preferred Stock - -
Preferred Stock - -
Common Stock 3,357 3,352 Rate increase = 0.001 3,360 3,364 3,367
Retained Earnings 6,458,778 6,117,567 Rate increase = 0.056 6,820,470 7,202,416 7,605,751
Treasury Stock -4,670,802 -4,420,394 Rate increase = 0.057 (4,937,038) (5,218,449) (5,515,900)
Capital Surplus 846,796 812,224 Rate increase = 0.043 883,208 921,186 960,797
Other Stockholders'Equity -522,526 -137,258 Same as 2008 (522,526) (522,526) (522,526)
Total Stockholders' Equity 2,115,603 2,375,491 2,247,474 2,385,991 2,531,489
Net Tangible Assets 1,977,024 2,314,090

Total Liability and Networth 7,828,625 8,566,892 9,606,234 11,232,989

 Year Sales One Period Growth Rate
2006 5800686
2007 5726848 -0.013
2008 5594307 -0.023
Average -0.018
2009 Forecast 5493965 Not acceptable

EXHIBIT 3
Retail Sales % Change Global Sales (2008/2007 less US sales)
North America Region -11.7 8828 0.10
Europe Region 6.5
Asia Pacific Region 7.7
Latin America Region 47

Average 12.375
say 12%