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FINANCIAL NEWS 14 NOVEMBER 2016 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com US INDEXES OF INTEREST Index Price Price Percent 52-week 52-week Index Ticker 09/26/16 08/22/16 Change High Low Dow Jones Industrial Average DJII 18,122.46 18,529.42 -2.2% 18,668.44 15,450.56 S&P 500 SPX 2,149.52 2,182.64 -1.5% 2,193.81 1,810.10 OUTDOOR POWER EQUIPMENT INDEX COMPONENTS Stock Price Price Percent Annual Annual Company Ticker 09/26/16 08/22/16 Change High Low Briggs & Stratton Corporation BGG $18.48 $19.15 -3.5% $24.48 $15.47 Caterpillar CAT $82.39 $83.59 -1.4% $84.73 $56.36 Deere & Company DE $83.59 $87.96 -5.0% $88.63 $70.16 Douglas Dynamics, Inc. PLOW $31.22 $32.11 -2.8% $32.80 $16.89 Honda Motor Co. Ltd. HMC $29.16 $30.97 -5.8% $33.87 $24.03 Polaris Industries PII $74.37 $92.00 -19.2% $124.39 $67.80 Terex TEX $23.42 $23.95 -2.2% $25.57 $13.62 Textron, Inc. TXT $39.44 $40.78 -3.3% $43.93 $30.68 The Toro Company TTC $47.05 $49.13 -4.2% $49.50 $32.35 Source: FactSet, Wells Fargo Securities, LLC On Aug. 17, 2016, Briggs & Stratton Corporation announced fi nancial results for its fourth fi scal quarter ended July 3, 2016. ■ Fourth quarter net sales were $502 million. Net sales decreased $32 million or 6.0 percent before currency impacts due to cooler-than-normal spring weather in North America and Europe. ■ Fourth quarter net income was $5.3 million; adjusted net income was $20.1 million. Fourth quarter diluted earnings per share was $0.12; adjusted diluted earnings per share was $0.46. ■ Fiscal 2016 net sales were $1.81 billion. Net sales decreased $65 million or 3.4 percent before currency impacts due to a $25-million reduction in jobsite products sales and lower sales caused by cool spring weather in North America and Europe, as well as economic uncertainty in many international markets, including Europe. ■ Fiscal 2016 net income was $26.6 million or $0.60 per diluted share; adjusted net income was $55.0 million or $1.25 per diluted share. ■ Repurchased $37.4 million in shares under the share repurchase program and paid $23.6 million in dividends to shareholders during fi scal 2016. ■ Announced a quarterly dividend increase of 4 percent to $0.14 per share — the third increase in three consecutive years. ■ Fiscal 2017 revenues estimated to increase to a range of $1.84 billion to $1.89 billion. ■ Fiscal 2017 earnings per share estimated to be $1.26 to $1.41, including $0.11 to $0.14 per share relating to additional investments to upgrade the company's ERP system and its commercial mowing capacity expansion. This also includes additional pension expense and negative foreign currency for a combined impact of $0.09 per share, as well as a higher income tax expense of approximately $0.08 per share as the income tax rate returns to normal levels. "Our fi scal fourth quarter sales were impacted by cooler-than- normal temperatures in North America and Europe," commented Todd J. Teske, chairman, president and chief executive offi cer of Briggs & Stratton Corporation. "Industry shipments in April and May were down signifi cantly when compared to last year as the cooler weather impacted retail sell through. We believe that retail sell through has improved in the latter part of June and into July in both regions such that elevated channel inventories at the end of our fi scal year are reducing to more normal levels. "Compounding this was the impact of global economic uncertainty, which has challenged consumer confi dence and made goods exported to international markets relatively more expensive also impacting demand. In the U.S., commercial lawn and garden continues to be a bright spot for our business. Our Ferris brand of commercial mowers and Billy Goat both achieved record sales, and we grew our commercial engine sales as well. Our team has delivered superior products during a time when higher- end residential and multi-family housing has experienced strong growth. While we have observed slower growth of entry-level housing to date, we have positioned ourselves well by delivering new and innovative products with features to attract new home buyers as they enter the market and to encourage existing home owners to replace their equipment to make work easier." Briggs & Stratton Corporation reports fourth quarter results