THOR Industries, Inc. · NYSE:THO

THOR Industries — Investor Presentation (February 2012)

34 slides from THOR Industries's investor presentation, February 2012

  1. Slide 1: Thor Industries, Inc.

    INDUSTRIES, INC. a a «* o. ts y | www.thorindustries.com sm

  2. Slide 2: Forward Looking Statements

    2 Forward Looking Statements  This presentation contains forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ

  3. Slide 3: Who is THOR

    3 Who is THOR  The world‘s largest manufacturer of recreation vehicles • Founded in 1980 by Wade Thompson & Peter Orthwein with acquisition of Airstream, Inc. • #1 in overall RV 38% of market* • #1 in Travel Trailers 33% of market* • #1 in Fifth Wheels 54% of market* • #2 in Motor Homes 20% of mark

  4. Slide 4: THOR's 2012 Product Range

    4 THOR’s 2012 Product Range Trailers F2011 Sales Fifth Wheels Bus Group $415,066 15% Motor Homes Motorized RV $363,026 13% Buses Towable RV $1,977,416 72% Ambulances

  5. Slide 5: THOR's Brands: RV

    THOR’s Brands: RV RSTREAI CO cee ompary, QW PAOR — w= (e@) =< INDUSTRIES, INC. THO piste] NYSE

  6. Slide 6: THOR's Brands: Bus Group

    THOR’s Brands: Bus Group GOSHEN COACH | SJC INDUSTRIES WR Thor Industries Commercial Bus Division gif ‘Sustaining Life on “EETAOF -3 INDUSTRIES, INC. NYSE

  7. Slide 7: Why Invest in THOR

    7 Why Invest in THOR  Disciplined, Profitable Growth • Profitable every year since inception • $2.76 billion sales in F2011, up 21% from $2.28 billion sales in F2010 • $1.27 billion sales 1st Half F2012, up 12% from $1.13 billion last year • Outperforming competition in all businesses  Sustainable

  8. Slide 8: What Makes THOR Different

    8 What Makes THOR Different  The best business model: • Entrepreneurial and decentralized • No ivory tower: over 8,000 employees, only 40 in corporate staff • Decision-making driven by the customer • Big, but nimble • Best management team in the business, as proven by sustained performance  The in

  9. Slide 9: Strength Through Adversity

    9 Strength Through Adversity  Sold, consolidated and/ or relocated underperforming operations  Reduced inventory and strengthened balance sheet  Executed structural cost and realignment initiatives while continuing to improve operational effectiveness and efficiencies  Expanded RV leadership by

  10. Slide 10: THOR's Competitive Advantages in New Era

    10 THOR’s Competitive Advantages in New Era  Focus on assembly - not heavy manufacturing • Limited vertical integration – only where it makes sense • Flexibility – performance in any market condition • Low overhead costs • High return on assets employed  Strong market share in all RV reportable se

  11. Slide 11: Corporate Integrity

    11 Corporate Integrity  Simple compensation philosophy: • Mainly cash compensation, without a cap, based on pre-tax income • Minimal stock options, restricted stock  No golden parachutes  No ‗pro forma‘ earnings. Net income, not some phony version thereof  No off-balance sheet assets or liabilit

  12. Slide 12: Recreation Vehicle Segment

    12 Recreation Vehicle Segment

  13. Slide 13: Current Conditions: RV

    13 Current Conditions: RV  Consolidation within very competitive environment • Many competitors closed or have been sold • Top three RV competitors account for 78% of industry units • ―Flight to quality‖ – consumers, dealers, lenders all seek to do business with strong companies like Thor  Industr

  14. Slide 14: RV: State of Balance

    14 RV: State of Balance  Dealers  Consumers • Continued optimism • Better access to retail credit • Right-sized inventory • Improving confidence • Smaller base of dealers • Lower interest rates • Access to wholesale credit • Great demographic trends • Financial health • Will shorten trips to reduc

  15. Slide 15: THOR RV Dealer Inventory: Units (000's)

    Jan 08 51.9 Feb 08 53.6 Mar 08 55.3 Apr 08 53.2 May 08 49.6 Jun 08 46.4 Jul 08 41.9 Aug 08 39.9 Sep 08 38.3 Oct 08 37.1 Nov 08 36.3 Dec 08 36.2 Jan 09 35.2 Inventory figures do not include Heartland RV Feb 09 35.8 Mar 09 35.8 Apr 09 34.9 May 09 32.5 Jun 09 30.3 Jul 09 26.8 Aug 09 26.3 Sep 09 27.1 Oc

  16. Slide 16: THOR's RV Competitive Advantage

    16 THOR’s RV Competitive Advantage U.S. Retail Registrations (units, excluding fold-downs) YTD 11/30/11 Y/E 12/31/10 Y/E 12/31/09 Y/E 12/31/08 TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE % % % % THOR* 65,211 38.0 64,197 37.5 45,246 29.4 59,577 28.3 Forest River** 50,214 29.3 46,640 27.2 34,489 2

  17. Slide 17: The RV Market Ahead

    17 The RV Market Ahead  Dealer restocking completed as of September, 2010  Dealer inventories remain appropriate for consumer demand  ―Now, it‘s all about the retail consumer‖ 2009 2010 2011 2012 Industry Retail 205,000 units 226,682 units ~236,000 units ~243,000 units Sales* (+10.6%) (est. +4%)

  18. Slide 18: Heartland Acquisition

    18 Heartland Acquisition  Acquired Heartland RV September 16, 2010  #4 RV manufacturer – all towable RVs  Fastest growing company in the industry for last 5 years  Excellent fit • Purchasing & other synergies • Hard-charging management team • More growth ahead • New market opportunities

  19. Slide 19: Bus Segment

    19 Bus Segment

  20. Slide 20: THOR Bus

    20 THOR Bus  #1 in $1 billion industry  38% market share*  Leader in low cost, fuel efficient transit, alternative fuel  Success in 40-ft. low floor bus industry  Best sales and service network  90% of our buses have certified 5-year life. Must be replaced  Certified ISO 9001. World class qua

  21. Slide 21: Current Conditions: Bus

    21 Current Conditions: Bus  Mid-size buses are the most cost effective, common sense mass transportation • Vastly superior fuel economy, lower up front and operating costs  Transit bus cost is 80% federally funded  Federal transit funding has historically grown at 5-9% annual rate  2012 opportun

  22. Slide 22: Current Conditions: Ambulance

    22 Current Conditions: Ambulance  Acquired SJC Industries March 1, 2010  #2 Ambulance builder in $600 million industry  McCoy Miller / Marque Brands  Included in Bus Segment  Ambulance market is challenging – tight funding for EMS/Fire Depts.  Long term growth trends driven by demand for emerg

  23. Slide 23: THOR - Key Takeaways

    23 THOR - Key Takeaways  Profitable every year since inception  Successfully weathered a severe downturn  Aggressive cost-cutting and investment now position Thor for significant growth and margin improvement  #1 or #2 RV market share in all reportable segments  Rock-solid balance sheet. Signif

  24. Slide 24: Appendix: Financial & Market Data

    24 Appendix: Financial & Market Data

  25. Slide 25: Sales ($ millions)

    25 Sales ($ millions) $3,066 $2,856 $2,754 $2,558 $2,641 $2,188 $2,277 $1,571 $1,522 $1,245 $1,269 $1,133 $822 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012 Years ended 7/31

  26. Slide 26: Net Income ($ millions)

    26 Net Income ($ millions) $163.4 $134.7 $119.1 $110.1 $106.3 $104.5 $92.7 $78.6 1st Quarter F‘12 $51.2 $26.7 $23.7 $22.4 $17.1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q 2011 1Q 2012 Years ended 7/31

  27. Slide 27: E.P.S.

    27 E.P.S. $2.89 $2.42 $2.10 $2.08 $1.83 $1.92 $1.67 $1.38 1st Quarter F‘12 $0.94 $0.56 $0.44 $0.41 $0.31 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q 2011 1Q 2012 Years ended 7/31

  28. Slide 28: Comments on 1st Quarter Financial Results

    28 Comments on 1st Quarter Financial Results  Solid results continue in both RV and Bus • 11% sales increase in RV, 11% increase in Bus too.  Competitive RV promotional environment persisted, particularly in beginning of Q1 prior to Open House. Discounting effect on gross margin.  RV dealers wait

  29. Slide 29: Margin Analysis

    0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 Margin Analysis 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 NBT Margin Gross Margin 4Q 2009 Operating Margin 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q

  30. Slide 30: Average Selling Price Trends

    $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $90,000 $70,000 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 Average Selling Price Trends 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012

  31. Slide 31: Quarterly Thor RV Unit Shipments

    31 Quarterly Thor RV Unit Shipments 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

  32. Slide 32: Thor RV Retail Market Share

    32 Thor RV Retail Market Share TT/FW Retail Share* Class A/C Retail Share* 40.3% 39.0% 30.8% 30.5% 30.4% 31.2% 20.4% 17.4% 16.2% 14.1% 13.9% 14.9% 2006 2007 2008 2009 2010 2011 YTD** * US Statistical Surveys, measured at CY end **Calendar year to date, November, 2011

  33. Slide 33: RV Market Wholesale Trends: Units (000's)

    1974 295.8 1975 339.6 1976 405.0 1977 373.1 1978 389.9 1979 199.2 1980 107.2 2012-2013: Thor Estimates 1981 133.6 1982 140.6 1983 196.6 1984 215.7 1985 186.9 1986 189.9 1987 211.7 1988 215.8 1989 187.9 1990 173.1 1991 163.1 Historical Data: Recreation Vehicle Industry Association, Calendar years. 19

  34. Slide 34: www.thorindustries.com

    INDUSTRIES, INC. a a «* o. ts y | www.thorindustries.com sm

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