Slide 1: Investor Presentation June 5, 2017
www.thorindustries.com Investor Presentation June 5, 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes certain statements that are “forward looking” statements within the meaning of the U . S . Private Securities Litigation Reform Act of 1995 , Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act
Slide 3: Table of Contents
TABLE OF CONTENTS Current Industry Conditions – Page 4 Third Quarter 2017 Update – Page 8 Appendix: Financial and Market Data – Page 19 3
Slide 4: Strong Fundamentals Support Continued RV Industry Growth
STRONG FUNDAMENTALS SUPPORT CONTINUED RV INDUSTRY GROWTH 4 Continued favorable macro environment Low interest rates Stable fuel prices and wide availability Wide credit availability Favorable employment and wage trends Strong consumer confidence 38% = 49M POTENTIAL FIRST - TIME BUYERS HAVE INVESTIGA
Slide 5: Trends Driving Growth: Demographics
TRENDS DRIVING GROWTH: DEMOGRAPHICS 5 MORE POTENTIAL RV BUYERS ** POPULATION: DRIVERS: +159% 2X SINCE 1970 YOUNGER CONSUMERS ARE ATTRACTED TO THE RV LIFESTYLE * ▪ +3.4 MILLION new households have started camping since 2014 ▪ Gen X and Millennials helping to drive this growth – making up 72% of campe
Slide 6: Trends Driving Growth: Lifestyle
TRENDS DRIVING GROWTH: LIFESTYLE 6 Recreational sports ▪ $887 billion spent on “outdoor economy” in 2016* ▪ Trend toward getting more active and leading healthier life style ▪ Youth sports leagues and tournaments ▪ More people enjoying various recreational activities that support RV sales growth Cam
Slide 7: Health of the RV Channel
HEALTH OF THE RV CHANNEL 7 Dealer Inventory Levels ▪ Overall dealer inventory levels remain healthy ▪ Total days in inventory at dealers are stable ▪ Average age of RV inventory on dealer lots remains low ▪ Used inventory levels remain low, supporting trade - in values and demand for new RVs Wholesa
Slide 8: Third Quarter 2017 Update
oe THIRD QUARTER 2017 iNDUSTaIES UPDATE
Slide 9: Third Quarter Key Messages
THIRD QUARTER KEY MESSAGES 13 th consecutive quarter of record revenues and record net income from continuing operations for the applicable quarter Strong growth in revenues, both organically and from acquisitions Double - digit organic sales growth in both segments – towables and motorized Consolid
Slide 10: CEO Third Quarter Overview
CEO THIRD QUARTER OVERVIEW Bob Martin – Thor President & CEO: “We continue to see strength in the RV market, as dealers and consumers remain optimistic and the prospects for continued industry growth remain strong. RVs provide exceptional value to consumers, allowing them to enjoy time with family a
Slide 11: Third Quarter 2017 Results Up Double Digits
THIRD QUARTER 2017 RESULTS UP DOUBLE DIGITS 11 Record results for the third quarter Gross profit up, though gross margins were lower due primarily to acquisition impact and market driven changes in product mix Strength in the spring retail shows and dealer lot activity has continued, as new consumer
Slide 12: Third Quarter 2017 – Towables
THIRD QUARTER 2017 – TOWABLES 12 Continued mix shift toward more affordably priced travel trailers Market share continued to improve through March 2017, with U.S. Towable share increasing from 47.6% to 48.2% while Canadian towable share remained stable at 57.2%* Demand remains strong. Towable backlo
Slide 13: Third Quarter 2017 – Motorized
THIRD QUARTER 2017 – MOTORIZED 13 Continued mix shift toward more affordably priced Class C and gas Class A motorhomes Market share momentum continued, with U.S. Class A and C market share increasing from 37.8% to 43.4% and Canadian Class A and C market share increasing from 37.9% to 50.5%* Demand r
Slide 14: Third Quarter Jayco Impact
THIRD QUARTER JAYCO IMPACT $1,498.7 $1,791.0 $516.5 $569.1 $0 $500 $1,000 $1,500 $2,000 $2,500 Revenues Backlog Revenues & Backlog Jayco had a significant, positive impact on the third quarter: • Added $516.5 million in revenues • Added $66.1 million to gross profit, but dilutive to gross profit mar
Slide 15: Year-to-Date 2017 Key Stats – Income Statement
YEAR - TO - DATE 2017 KEY STATS – INCOME STATEMENT 15 $2,640 $3,242 $3,525 $4,007 $4,582 $3,289 $5,312 FY12 FY13 FY14 FY15 FY16 FY16 YTD FY17 YTD Net Sales (Continuing Ops., $ millions) $2.07 $2.86 $3.29 $3.79 $4.91 $3.33 $4.83 FY12 FY13 FY14 FY15 FY16 FY16 YTD FY17 YTD Diluted EPS (Continuing Ops.)
Slide 16: 2017 Key Stats – Balance Sheet and Cash Flow
2017 KEY STATS – BALANCE SHEET AND CASH FLOW 16 $220.0 $237.3 $289.3 $183.5 $209.9 $247.3 $189.4 FY12 FY13 FY14 FY15 FY16 3Q16 3Q17 Cash & Investments ($ Millions ) $373.8 $469.0 $473.3 $397.5 $365.2 $532.8 $492.9 FY12 FY13 FY14 FY15 FY16 3Q16 3Q17 Working Capital ($ Millions ) $118.8 $145.1 $149.3
Slide 17: Investing in Future Growth
INVESTING IN FUTURE GROWTH 17 $10,063 $24,305 $30,406 $42,283 $51,976 $39,411 $79,456 $0 $20,000 $40,000 $60,000 $80,000 $100,000 FY12 FY13 FY14 FY15 FY16 FY16 YTD FY17 YTD Thousands Capital Expenditures $190,263 $170 $10,718 $86,092 $194,486 $557,651 $0 $125,000 $250,000 $375,000 $500,000 $625,000
Slide 18: Executive Chairman Third Quarter Comments
EXECUTIVE CHAIRMAN THIRD QUARTER COMMENTS 18 Peter B. Orthwein, Thor Executive Chairman : “The growth in new consumers entering our core markets has been essential to the strong results and continued optimism we have at Thor. As we continue to strategically build on our strengths in product innovati
Slide 19: Appendix: Financial and Market Data
19 APPENDIX: FINANCIAL AND MARKET DATA
Slide 20: RV Wholesale Market Trends
RV WHOLESALE MARKET TRENDS (UNITS 000S) 20 583.0 528.8 295.8 339.6 441.1 413.9 389.9 199.2 106.9 133.6 140.6 196.6 215.7 186.9 189.9 211.7 215.8 187.9 173.1 163.1 203.4 227.8 259.5 247.2 247.5 254.5 292.7 321.2 300.1 256.8 311.0 320.8 370.1 384.4 390.5 353.5 237.0 165.6 242.3 252.3 285.8 321.2 356.8
Slide 21: RV Wholesale Market Towable Trends
RV WHOLESALE MARKET TOWABLE TRENDS (UNITS 000S) 21 466.2 399.8 226.9 243.0 285.0 253.7 232.7 135.1 78.4 98.1 99.4 127.1 133.7 118.1 122.1 137.9 142.9 126.7 120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.6 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 152.4 217.1 227.5 257.6 282.8
Slide 22: RV Wholesale Market Motorized Trends
RV WHOLESALE MARKET MOTORIZED TRENDS (UNITS 000S) 22 118.8 129.0 68.9 96.6 156.1 160.2 157.2 64.1 28.5 35.4 41.2 69.5 82.0 68.7 67.7 73.7 72.8 61.1 52.3 41.9 46.9 51.3 58.2 52.8 55.3 55.1 63.5 71.5 61.0 49.2 60.4 62.0 71.7 61.4 55.8 55.4 28.4 13.2 25.2 24.8 28.2 38.4 44.0 47.3 54.7 57.7 1972 1973 19
Slide 23: RV Industry Demand
RV INDUSTRY DEMAND Industry retail demand has shifted toward more light - weight, affordably priced towables and gas Class A and Class C motorhomes as consumers seek value Wholesale units typically outpace retail in the early part of the calendar year; historically sales become more balanced as we r
Slide 24: Thor Dealer Inventory
THOR DEALER INVENTORY Dealers remain confident with orders reflecting normal ordering patterns Orders generally expected to reflect 1 - for - 1 replacement as units are sold at retail Dealer inventory remains appropriate for current conditions in both towable and motorized Lenders are comfortable wi
Slide 25: RV Industry Retail Market Share
RV INDUSTRY RETAIL MARKET SHARE 25 Total Share % Total Share % Total Share % Total Share % THOR* 39,871 47.8% 195,973 47.4% 178,520 47.6% 160,663 48.9% Forest River** 28,325 34.0% 144,909 35.1% 132,923 35.4% 112,979 34.4% Grand Design 3,187 3.8% 11,717 2.8% 7,000 1.9% 4,174 1.3% Winnebago 2,478 3.0%
Slide 26: Thor RV Retail Market Share Trend
THOR RV RETAIL MARKET SHARE TREND (UNITS) 26 54.9% 53.7% 51.3% 49.7% 48.9% 48.7% 25.4% 29.4% 31.0% 32.8% 37.8% 43.7% 16.7% 22.1% 21.9% 22.1% 18.3% 17.3% 2012 2013 2014 2015 2016 2017 YTD Towable Retail Share* Class A/C Retail Share* Class B Retail Share* *Source: Statistical Surveys Inc., U.S. and C
Slide 27: Thor Industries
THOR INDUSTRIES www.thorindustries.com