Thor Industries, Inc. · NYSE:THO
Thor Industries — Investor Presentation (December 2018)
24 slides from Thor Industries's investor presentation, Dec 6, 2018
Slide 1: Investor Presentation December 6, 2018
INVESTOR PRESENTATIONDECEMBER 6, 2018
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 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193
Slide 3: Table of Contents
Overview & Current Industry Conditions 4First Quarter 2019 Update 11Appendix: Financial & Market Data 17 Table of Contents
Slide 4: Overview & Current Industry Conditions
Overview & Current Industry Conditions
Slide 5: Driving Operational Excellence
Driving Operational Excellence 38-year record of profitability – 23.3% compounded annual five-year EPS growth (1) Balance of organic growth and accretive acquisitions Global leader in a growing industry – Recreational Vehicle (RV) shipments grew 17.2% in calendar 2017 to 504,599 units, representing
Slide 6: Effectively Managing Through Inventory Correction
Effectively Managing Through Inventory Correction Flexing Production Capitalizing on Variable Cost Structure Continuing to Invest with a Long-term Focus Benefiting from our variable cost structure, and our ability to reduce working capital with lower production and reduced overall costs in conjuncti
Slide 7: Healthy RV Channel Dealer Inventory Approaching Normalized Levels
Healthy RV Channel Dealer Inventory Approaching Normalized Levels:Following inventory shortages in FY17, dealers ordered aggressively in early FY18 Although retail demand grew modestly, that growth was not sufficient to bring dealer inventory levels down Thor responded by reducing production levels
Slide 8: Driving Global Growth: Erwin Hymer Acquisition
Driving Global GrowthErwin Hymer Acquisition Creates the #1 global RV manufacturer with a leading portfolio of brands, dealer network and global reachEstablishes a leading position in growing European RV market with a complementary and geographically diverse product portfolioSignificant mutual benef
Slide 9: Snapshot of Combined Company
Snapshot of Combined CompanyBased on 2018 Actual Results Adds Scale Balances Product Mix Broadens Global Footprint + + + = = = Revenue ($mm) Revenue % Revenue % / / / Note: Converted at USD/EUR FX rate of 1.16; Thor financials as of 7/31/18; EHG financials as of 8/31/18
Slide 10: Capitalizing on Opportunities to Drive Continued Growth: TH2 Joint Venture
Formed TH2 joint venture in 3Q18, with Thor investment to date of $50.4 million, to introduce new products and services focused on enhancing the enjoyment, safety, connectivity and convenience of RV ownership, while reinforcing loyalty to Thor brandsProviding innovation solutions to an ever-widening
Slide 11: First Quarter 2019 Update
. ; - ~ ~« % "First Quarter 2019 Update THOR | INDUSTRIES
Slide 12: First Quarter Overview
First Quarter Overview Making Progress on Strategic Execution Maintaining Optimistic Outlook Helping dealers right size their inventory through increased promotional efforts to support dealersExecuting on our strategic planAcquisition of Erwin Hymer Group (EHG) to provide platform for long-term grow
Slide 13: First Quarter 2019 Key Financial Metrics
First Quarter 2019 Key Financial Metrics Sales reduced to more normalized levels for 1Q19, reflecting historical sequential decrease from fourth quarter — prior year exhibited highly unusual increase from fourth quarter Gross profit down due to elevated levels of promotions and discounts, elevated w
Slide 14: First Quarter 2019 Towable Segment
First Quarter 2019Towable Segment Sales of travel trailers and fifth wheels decreased by 23.4% and 17.2%, respectively Market share down slightly through September 2018, with U.S. Towable share decreasing from 48.7% to 48.5%, and Canadian Towable share down from 55.4% to 53.2%*Backlog decrease due i
Slide 15: First Quarter 2019 Motorized Segment
Sales of Class A and Class C decreased by 10.0% and 35.7%, respectively U.S. Class A and C market share through September 2018 increased from 41.7% to 43.2%*Canadian Class A and C market share increased from 41.3% to 44.8% through September 2018*Backlog decreased in part due to ongoing dealer invent
Slide 16: First Quarter Key Stats
First Quarter Key StatsAs of or for the Fiscal Quarters Ended October 31 Income Statement Balance Sheet & Cash Flow * Includes $57.1M in acquisition-related costs. ** Includes $1.02 in unfavorable EPS impact from acquisition-related costs.
Slide 17: Appendix: Financial & Market Data
Appendix: Financial & Market Data
Slide 18: Thor Operating Entities
Thor Operating Entities Joint Venture Pending Acquisition* * Acquisition of EHG expected to close near the end of the calendar year.
Slide 19: Thor's RV Product Range
Thor's RV Product Range Towable Segment Motorized Segment Note: Retail prices noted above are general ranges. Class Afully enclosed, bus-style motorhome; retail price $80,000 - $700,000 Class Cliving area built on van or pickup chassis;retail price $80,000 - $250,000 Class Bvan motorhomes;retail pri
Slide 20: Consumer Trends
Consumer TrendsPotential RV Buyers 77 Million Households Camping Each Year Consumers Interested in RVs Target KOA study shows that 77 million households are camping in 2017, an increase of 6 million from 2014 and they are camping more often.(1)One fourth of campers use an RV, but 44% of those campin
Slide 21: RV Industry Overview
Industry retail demand has seen a resurgence in some higher-end Class A motorhomes and fifth wheels while entry level consumers continue to seek lighter-weight, more affordably-priced towables and gas Class A and Class C motorhomes Wholesale units typically outpace retail in the early part of the ca
Slide 22: RV Industry Overview: Wholesale Market Trends
RV Industry Overview RV Wholesale Market Trends (Units 000's) Towable RV Wholesale Market Trends (Units 000's) YTD Shipments (Units) Sept 2018 Sept 2017 Unit Change % Change 378,718 377,995 723 +0.2% 5-year CAGR: 12.0% YTD Shipments (Units) Sept 2018 Sept 2017 Unit Change % Change 333,253 330,662 2,
Slide 23: RV Industry Overview: Retail Market Share and Dealer Inventory
RV Industry Overview Thor RV Retail Market Share Trend (1) Dealer Inventory of Thor Products RV Industry Retail Market Share (1) Source: Statistical Surveys Inc., U.S. and Canada, calendar years 2014-17, 2018 YTD through September; Thor historical results adjusted to include results of Jayco, Livin'
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