Slide 1: drewindustries.com / lippertcomponents.com
drewindustries.com eens | OO: ERT lippertcomponents.com
Slide 2: Forward-looking statements
This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Comp
Slide 3: Management Team
JASON LIPPERT, CEO > 20+ years with Drew prew INDUSTRIES INCORPORATED Management Team SCOTT MERENESS, PRESIDENT > 20+ years with Drew > Average tenure of Drew’s members of senior managementis 14+ years with the company
Slide 4: Financial Performance: Net Sales and EBITDA
> Financial Performance Net Sales === RV Segment net sales © MH Segmentnet sales == EBITDA EBITDA ae Net Sales and EBITDA "(in mitionsy saa07 $1,200 SEH t $140 $1,000 sor $800 gp oa p $669 ) $669 $600 $298 3 t $400 ae oe g = B iH E | eon 09 So's avs 15} ozs zeus 2: $0 2001 2002 | 2003 2004 2008 2008
Slide 5: RV Towable and Aftermarket sales
RV Towable $428 $498 $653 $728 Aftermarket Total $573 $681 $901 $1,016 $1,191 $1,307 LTM2015 percentage growth is compared to 2013
Slide 6: Sales growth analysis
Sales for the 12 months ended December 31, 2010 compared to the LIM 06/15. Both periods exclude the Company's net sales of components for Towable RVs, which Novernies mconronateo made up 75% and 69% of consolidated net sales, respectively.
Slide 7: Sales growth: acquisitions, organic and industry
1) Sales for acquistions represent the tring hveWe month sales at the date of acquistion. Any post acquistion change is included in organic orindustry accordingly. ) Organic growth consists primary of gains in market share, price increases, increased adjacent industry sales and new product sales. ©)
Slide 8: RV and Manufactured Housing Industries
RV and Manufactured Housing Industries
Slide 9: RVs - Industry Wholesale Shipments
> RVs - Industry Wholesale Shipments (Compared to Drew’s Performance) ingust Approximately 76% of Drew’s RV Segment net sales are for Travel Trailer and 5 Wheel RVs yor euies 800 T $1,400 Industry unitsin thousands, net sales in millions) t = Notorhomes | other Towables msi,i92 + 81200 cn Travel Tra
Slide 10: RV Shipments vs Federal Interest Rate
Thousands of Units > RV Shipments - RV Shipments 2 |__ RV Shipments vs Federal ie aso | TR =. I_\___InterestRate 7~\, = = || A eeuival plas zo {| — He paNjamm\ =f | = x0 || Nf 2 iva a V m0 | x rae EE 150 vi % pa ro dA VY =a \ Fr pa 2 z 2 LS & PEEP LEELL ILLS SSS SSD PC CLPPO LOR O DESO PORE ae we se
Slide 11: Lippert Components product range
@o 9 ©~e@ Doors ‘AWNINGS i ware FURNITURE ELECTRONICS FURRION » > ELECTRONICS winpows ‘SHOWERS. & SINKS SLIDE-OUTS ‘SUSPENSION x ENHANCEMENTS AXLES: STEPS CHASSIS lippertcomponents.com -10-
Slide 12: Manufacturing capabilities
Fabric and Electronics and Steel and Lamination Steel and Motion- Woodworking Plastic Forming Aluminum and Glass Aluminum Systems Fabrication Fabrication Welding
Slide 13: Towable RVs and Motorhomes
Towable RVs (Approximately 76% of Drew's RV Segmentnet sales) _o— Motorhomes (Approximately 7% of Drew's RV Segmentnet sales) of industry 2014 unit sales of 2014 wholesale dollar sales, or $9.4 billion Retail cost $4,000 to $100,000 per unit. Average about $30,000 of industry 2014 unit sales of 2014
Slide 14: Camper households
[EE 54,, ii Tent Campers _ Aim 25.0 milion wd i] 14... i N\21% } Active Campers . — RV Campers ys 46.2 million- ~~ 9.7 million —~\21% = Cabin Campers = 9.7 million = * Estimates based on 108 million households. All other (4%) 1.8 milion. 59», Camp Every Year 27.4 million 11% Camp Every Other Year 48
Slide 15: RV Camper Market Survey
> RV Camper Market Survey Equipment Plan to Purchase or Upgrade* ET con Tent Total Camping Households by Age *Note: Campers are allowed to select more than one type of upgrade or purchase.
Slide 16: Typical RV family vacation
Typical RV family vacation is 23 to 59 percentless expensive for a family of four College and NFL football games NASCAR events More active, shorter, “greener”, & family oriented vacations The number of consumers between the ages of 55 and 70 is projected to total 56 million by 2020, 27 percent highe
Slide 17: RV Industry Trends
> RV Industry Trends Travel Trailer and 5 Wheel RVs, Drew’s primary RV market Units SD Wholesale == Retail 300 298.9 (Units in thousands} ae ( 1 oa 277.0 250.8 = e 242.9 poe E 2129 222.8 199.2 eee 200 495.1 186.0 175 164.3 161.1 1707 163.6 148.3 150 138.3 125 100 75 50 25 0” 2008 2008 2010 2011 2012
Slide 18: Number of U.S. Households that Own an RV
> Number of U.S. Households that Own an RV (in Millions) 10 6 | ‘i = Ld = . E B| 1980 1984 1988 1993 1997 2001 2005 2011 Statistics provided by RV Consumer Demographic Profile — 2011
Slide 19: Demographics
> Demographics Number of U.S. households that own an RV 7.9 million 8.9 million Household ownership rates of RVs 80% 85% Average age of all RVs 12.7 years 14.2years Average time consumers have owned their 6.6 years 8.4 years current RV Age of typical RV owner A9 years A8 years Average income of RV o
Slide 20: Manufactured Housing - Industry Production
> Manufactured Housing — Industry Production (Compared to Drew's Performance) Industry _ a, Drew’s Gate (Industry unitsin thousands, net sales in millions} Ne cues _ Multi-Sections === Single-Section Drew's MH Segment 250 net sales $250 $221 $990 200 193 $200 ate $177 168 ee a 131, 431 $142 $150 $13
Slide 21: What's Next
- International RV What's Next... + Innovation/RD + Aftermarket RV + Adjacent Markets - Acquisitions - Additional North American RV Growth/Content
Slide 22: International RV Markets
| International RV Markets
Slide 23: Research and Development
Slide 24: RV Aftermarket Opportunity
Slide 25: Marine, Bus, Truck, Fleet, Cargo
Marine Bus Truck Fleet Cargo
Slide 26: Expanding addressable market
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Slide 27: Recent acquisitions
Innovative Design Solutions!) $ 35.9 $19 eae USShoreaoncation ‘a wide variety of RV applications Power Gear & Kwikee $ 35.5 BY leveingsysters.sideoutsandstepe EA Technologies Sees iba oribien sae ‘and power coating services Signature Seating!) $16.0 = $ 16 Neferecafmonutccturer primary pontoon bocla
Slide 28: Acquisition Discipline and History
Acquisition Discipline and History Have made 36 acquisitions over the past 15 years We are experienced at integrating acquisitions Acquisitions have come in the form of intellectual property, small start ups and larger businesses 6 out of last 7 acquisitions have had substantial revenue outside our
Slide 29: Addressable market opportunities
0 BB BB B Interna ional (1) Amounts represent the estimated size of the addressable market, excluding the Company’s current net sales to those markets.
Slide 30: Additional growth opportunities from our core
> Additional growth opportunities emanating from our core POTENTIAL SOURCES OF GROWIH Capabilities Core Industries: Business é Core of 2 Extensions % Adjacencies Core extensions vary on one dimension from existing core business and can be managed within the existing operating model Lowest execution
Slide 31: Content Per New Towable RV
> Content Per New Towable RV -Approximately 76% of RV Segment net sales are for Travel Trailer and Fifth-Wheel RVs - 100% market share in existing products would yield an estimated $5,500 per Towable RV “Growth in RV “features” drives content increases ase so.ens 52.726 $2,690 $2,716 2001 2002 2003
Slide 32: Content Per New Motorhome RV
> Content Per New Motorhome RV -Approximately 7% of RV Segment net sales are for Motorhome RVs yet $1,728 - 100% market share in existing \5\ 0% $1,544 products would yield an estimated e772 $5,500 per Motorhome RV rv? a cont $1,227 $1,252 roe) arene pk $669 "t a I | li | TE 2005 2009 2010 2011 «201
Slide 33: Supplemental Schedules
Supplemental Schedules
Slide 34: Operating Results - Three Months Ended June
> Operating Results Three Months Ended June 30 FINANCIAL PERFORMANCE (in millions, except EPS) 2015 Net Sales $ 362.1 Operating Profit $ 33.6 % of Sales 9.3% Net Income $ 20.9 Diluted EPS $0.85) prew million, or diluted EPS of $0.77. 2014) Change $ 321.8 13% $ 31.1 8% 9.7% $ 19.8 6% $ 0.82 4% (1) Ex
Slide 35: Operating Results - Six Months Ended June
> Operating Results Six Months Ended June 30 FINANCIAL PERFORMANCE (in millions, except EPS) 2015 Net Sales $723:5 Operating Profit $ 65.5 % of Sales 91% Net Income $ 40.9 Diluted EPS Sy ilyey/ prew million, or diluted EPS of $1.43. 2014) Change $ 607.2 19% So 2572 15% 9A% $ 36.0 14% $ 1.48 12% (1)
Slide 36: MH Segment / RV Segment
MH Segment RV Segment
Slide 37: Six Months: RV and MH Segments
Six Months | RV Segment MH Segment RV Segment
Slide 38: Debt Position
> Debt Position FINANCIAL PERFORMANCE Cash and Net Cash eater ae (in millions) Debt Investments (Debt) YTD Period 12/31/11 $ - $ Zz $ 7 $ 50 12/31/12 $ = $ 100) $ 100) $ 1 12/31/13 $ - $ 66 $ 66 $ 5 12/31/14 $ 16 ® = $ (16) $ 107 06/30/15 $ 80 $ 12 $ (68)8) $ 41'4) (1) On December 20, 2012, the Comp
Slide 39: Balance Sheets
> Balance Sheets ($ in millions, 12/31/11 12/31/12 1/13 12/31/14 06/30/15 1 Total Assets col be 374 $ 453 $ 544 $ 634 Total Debt $ - $ - $ - $ 16 $ 80 Cash & Investments $ a $ 104) $ 66 $ - $ (2 Stockholders’ Equity $- 27 $ 2848 $ 3144 $ 395 $ 396!5) Days Sales in a/R" 17 days 14 days 16 days 15 day
Slide 40: Cash Flow
> Cash Flow FINANC! ERFORMANCE Acquisitions (20)* $242 million Capital expenditures $156 million Special dividends $173 million Stock repurchases $ 2million Total $ 573 million *On August7, 2015, the Company acquired the business and certain assets of Signature Seating, the purchase price of $16 mil
Slide 41: Cash Flow
> Cash Flow mmm Dividends Capital Expenditures: FINANCIAL PERFORMANCE = Acquisitions 5149 $160 * Operating Cash Flow - $140 $120 $100 $80 $65 . $15 $60 $10 $40 a8 S45 $42 $20 $5 $33 $24 =— $0 2009 2010 2011 2012 2013 (1) 2014 YTD 06/15 (2) Operating cash flow from 2009 fo present [$ in millions} [1]
Slide 42: Financial Strength
> Financial Strength FINANCIAL PERFORMANCE 12/31/11 12/31/12 12/31/13 12/31/14 06/30/15 Return on Equity 11% 13% 16% 17% 18% Return on Assets 9% 10% 12% 12% 12% Weey eine 0.00 0.00 0.00 0.04 0.20 Equity oe se 0.00 0.00 0.00 0.12 0.56 (1) EBIDA is operating profit plus depreciation and amortization.
Slide 43: EBIDA and EBITDA
$93 $120 $157 $175 $171 $185 $171 $205 $257 $326 $375 | EBIDA $287 $265 $421 $533 $69.7 $710 $885 $425 $279 5 $69.0 $838 «$1058 = $128.1 $1433 $5.1 $27.1 $26.1 $223 $88 $101 $243 $320 $326 = $425 $39.2 -42-
Slide 44: Net Sales and Operating Profit by Segment
Net Sales: RV Segment $ 5706 $ 7809 $ es z $ 1,074. 2 $ 1,191 o MH Segment 110.6 120.2 12 116. TS. Operating Profit: RV Segment $ 47.2 $ 68.2 MH Segment Sale of extrusion assets _ Total Operating Profit $ $ 78.3 $ 955 $ 1058 _ -43-
Slide 45: Stock Price History
> Stock Price History Drew has 24.1 million shares outstanding and a market capitalization of approximately $1.3 billion as of August 21, 2015 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8/21/15 + Datesnoted above are as of December 31, unless noted. + Stock prices above ar
Slide 46: Analyst Coverage
> Analyst Coverage a Citi Research > Gregory Badishkanian — (212) 816-2720 a CJS Securities > Dan Moore — (914) 287-7600 a” CL King & Associates > Scott Stember — (212) 364-1806 ” Thompson Research Group > Kathryn Thompson — (615) 891-6206