Lci Industries · NYSE:LCII
Lci Industries — Investor Presentation (March 2025)
29 slides from Lci Industries's investor presentation, Mar 11, 2025
Slide 1: LCI Industries March 2025
= y @ Lc! INDUSTRIES March 2025
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, profitability, margins, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, pla
Slide 3: Agenda
3 Agenda 4 24 27 I. Company Overview and Investment Highlights II. Financial Overview III. Appendix
Slide 4: Company Overview and Investment Highlights
COMPANY OVERVIEW AND INVESTMENT HIGHLIGHTS
Slide 5: Poised for Strong Long-Term Performance
5 Poised for Strong Long-Term Performance Growth & Margin Drivers Continued investment toward innovation and R&D Strong focus on aftermarket repair, replacement and upgrade Further development in automotive aftermarket Expanding presence in diversified end-markets through proven playbook Scaling app
Slide 6: LCI at a Glance
6 LCI at a Glance ⚫ Leading supplier of highly engineered components primarily to the OEMs of RVs, buses, trailers, trucks, boats, trains, manufactured housing and their related aftermarkets ⚫ LCI has a large product offering including RV slide-outs and chassis, axles, furniture and glass solutions
Slide 7: Industry-Leading Competitive Differentiation Across Multiple Markets
7 Industry-Leading Competitive Differentiation Across Multiple Markets 1 Numbers may not sum to 100% due to rounding; 2 “Serviceable Addressable Market” amounts represent Management’s estimate of the size of the addressable market based on current products and pricing as of Q4 2024, excluding the Co
Slide 8: Track Record of Resilience, Cash Flow, Discipline and Shareholder Returns
8 95% Free Cash Flow Conversion(1) (Full Year 2024) 34% Total Net Sales Growth (2020 - 2024) 17 Average Senior Management Tenure at LCI (Years) 4.2% Dividend Yield (Full Year 2024) Net Debt to EBITDA(1) (as of 12/31/2024) 1.7x Track Record of Resilience, Cash Flow, Discipline and Shareholder Returns
Slide 9: How LCI Wins
9 How LCI Wins Metal Fabrication & Welding Lamination Glass Fabrication Furniture Manufacturing Power & Motion Systems Electronics Plastics Forming Manufacturing & Engineering Competencies And Create an Unmatched Product Ecosystem Enable Us to Solve Complex Customer Needs E-Coating & Powder Coating
Slide 10: LCI's Competitive Moat
10 LCI’s Competitive Moat Our success and share gains are driven by scale, expertise, and people Bundling Capabilities Diversified portfolio is an advantage as customers consolidate vendors Customer Proximity Strategically positioned near OEM partners to reduce lag time and costs Customer Service Ha
Slide 11: Consistent Market Share, Content, and Net Sales Gains Validate Competitive Advantages
11 Consistent Market Share, Content, and Net Sales Gains Validate Competitive Advantages Adjacencies 2020 2024 Building Products Net Sales $113M $192M 70% Transportation Products Net Sales $137M $197M 44% Utility Trailer Products Net Sales $117M $271M 132% International Net Sales $237M $394M 66% * M
Slide 12: Innovation Fueling Market Share and Content Expansion
12 Innovation Fueling Market Share and Content Expansion Past product launches Recent product launches 2009 5th Wheel Leveling 2004 Trailer Axles 2010 Entry Doors 2020 Appliances 2012 Awnings 2024 Net Sales Contribution $75M $308M Estimated Addressable Market(1) 4K Series Windows Anti-Lock Brakes He
Slide 13: Established Leadership Unlocks Cross-Sell Growth and Content Opportunities
13 Established Leadership Unlocks Cross-Sell Growth and Content Opportunities NA RV OEM Net Sales Content Per Towable Unit Market leadership in essential products... Fuels bundling in key strategic lines... Positioning LCI to capture more of the $3 billion of addressable RV OEM opportunity • Axles &
Slide 14: New Market Diversification Expands Opportunities & Insulates Against Cyclicality
14 New Market Diversification Expands Opportunities & Insulates Against Cyclicality Adjacent Industries OEM & Aftermarket Net Sales Focus on $13 billion of total addressable market1 through: • Innovation • Replace and repair cycles • Acquisitions Key Growth Areas Proven RV OEM playbook positions LCI
Slide 15: Aftermarket Segment Growth Enhancing Diversified Positioning
15 1.6M Views on Tech Support Seminars Aftermarket Segment Growth Enhancing Diversified Positioning Fostering dealer relationships through trainings to improve knowledge and preference toward LCI products Dealer Training Creating products our customers want to improve the lifestyle Innovation Acquir
Slide 16: M&A Driving Additional Upside
16 Building Products Transportation Products Europe Utility Trailers Marine RV Windows, Chassis Motion Power Systems Axles, Cut & Sew Aftermarket Electronics Plastics Furniture Awnings 1956 Founded as B&L Industries, supplying metal roofing to the MH industry Acquired Riverdale Steelworks, adding MH
Slide 17: Trusted by Blue Chip Industry Leaders
17 Trusted by Blue Chip Industry Leaders No single customer makes up over 20% of consolidated net sales Diversified Customer Base Steadfast focus on curating long lasting relationships with industry partners Average Tenure of Top Ten Customers15+ yrs I've done business with Jason and his team at LCI
Slide 18: Strong Industry Fundamentals and Dynamics Support Growth
18 Strong Industry Fundamentals and Dynamics Support Growth Increasing demand for motorhomes and towables Growing government investment in infrastructure to support tourism Rising popularity of road trips and use of off-road campers Proliferation of government initiatives for affordable housing Grow
Slide 19: Anticipated Strong RV Recovery Ahead
19 Historically the RV market rebounds by an average of 101% over the 4-8 years following a shipment downturn Anticipated Strong RV Recovery Ahead RV Industry Showing Signs of Recovery • First YoY retail growth in 40 months in 4Q24 • Dealer inventories at or near historic lows • Many dealers reporti
Slide 20: Optimized Operations Boosting Profitability
20 Optimized Operations Boosting Profitability 11% Negatives 3% 2022 • 37% RV shipment decline • Lower commodity-linked selling prices • Fixed costs deleverage Operating Margin: 2023 Positives • Lower material & freight costs • Aftermarket mix impact • Lower warranty costs • Facility consolidation •
Slide 21: A Visionary Leadership Team Driving Long-Term Growth
21 A Visionary Leadership Team Driving Long-Term Growth Jason Lippert President & Chief Executive Officer Time with LCI: 29+ Years Ryan Smith Group President of North America Jamie Schnur Group President of Aftermarket Lillian Etzkorn Chief Financial Officer Time with LCI: 18+ Years Time with LCI: 2
Slide 22: Strategic Capital Deployment Driving Shareholder Value
22 Strategic Capital Deployment Driving Shareholder Value Historical Use of Cash Capital Allocation Priorities • Strategic Acquisitions to expand presence in existing markets • Reinvestment back into the business • Returning value to shareholders • Reducing Leverage Strong History of Cash Returns •
Slide 23: LCI is a Unique Investment Opportunity
23 Strong industry fundamentals support continued growth Proven business resilience, strong cash flow generation and financial discipline driving shareholder returns Established competitive moat with ability to withstand economic downturns New market diversification and aftermarket segment growth ex
Slide 24: Financial Performance
FINANCIAL PERFORMANCE
Slide 25: Historical Operating Performance
25 Historical Operating Performance $276 $321 $511 $682 $255 $344 11.6% 11.5% 11.4% 13.1% 6.7% 9.2% $- $20 0 $40 0 $60 0 $80 0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $2,371 $2,796 $4,473 $5,207 $3,785 $3,741 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $539 $706 $1,043 $1,273 $776 $880 2
Slide 26: Fourth Quarter and Full Year 2024 Highlights
26 Fourth Quarter and Full Year 2024 Highlights 1 EBITDA is a non-GAAP measure. See appendix for a reconciliation to the nearest GAAP measure; 2 For the twelve months ended December 31, 2024 ⚫ Full year operating profit margin of 5.8%, up 250 bps year-over year ⚫ Lowered material costs through suppl
Slide 27: Appendix
APPENDIX
Slide 28: LCI Operates in a Large and Growing Outdoor Recreational Market
28 LCI Operates in a Large and Growing Outdoor Recreational Market Increased customer engagement in recreational boating activities is reshaping industry Consumer spending and access to credit spur boat purchases Increased boat customization and premium components Expansion of propulsion technologie
Slide 29: Reconciliation of Non-GAAP Measures
29 Reconciliation of Non-GAAP Measures EBITDA, free cash flow, and free cash flow conversion are non-GAAP performance measures included to illustrate and improve comparability of the Company's results from period to period. EBITDA is defined as net income before interest expense, provision for incom