THOR Industries, Inc. · NYSE:THO
THOR Industries — FY2022 Earnings Presentation
19 slides from THOR Industries's earnings presentation, Nov 1, 2022
Slide 1: Fiscal Year & Fourth Quarter Fiscal 2022 Financial Results
FISCAL YEAR & FOURTH QUARTER FISCAL 2022 FINANCIAL RESULTS www.thorindustries.com
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: Record 2022 Operating and Financial Performance
RECORD 2022 OPERATING AND FISCAL YEAR 2022 HIGHLIGHTS FINANCIAL PERFORMANCE Delivered record financial results, achieving highest net sales, gross margin, net income and net cash from operations in THOR’s history CONSOLIDATED NET SALES Exhibited resiliency of THOR’s business model and $16.31 BILLION
Slide 4: Fiscal Year 2022 Recap
FISCAL YEAR 2022 RECAP FISCAL 2022 RESULTS Delivered strongest net sales and profitability performance Net Sales in THOR’s history $16.31 BILLION (1) (2) ▪ Record wholesale shipments of 328,557 units to meet (3) +32.4% strong consumer demand and restock channel inventory levels ▪ Maximized profitabi
Slide 5: Fourth Quarter of Fiscal Year 2022
FOURTH QUARTER OF FISCAL YEAR 2022 NORTH AMERICAN INDEPENDENT DEALER INVENTORY OF THOR PRODUCTS 138,500 127,000 Net Sales 103,400 $3.82 billion (1) (2) +6.4% 63,900 58,300 (3) (3) 7/31/18 7/31/19 7/31/20 7/31/21 7/31/22 NA Motorized Inventory Units $1.02 bn (3) Includes units of Tiffin products subs
Slide 6: North American Towable Segment Fourth Quarter of Fiscal 2022
($ billions) NORTH AMERICAN NET SALES ñ TOWABLE SEGMENT $1.73 $1.80 Increased 3.8%* driven by net selling price increases and a change in product mix, largely offset by a decrease in unit Fourth Quarter of shipments Fiscal 2022 4QFY21 4QFY22 NORTH AMERICAN TOWABLE KEY DRIVERS GROSS PROFIT MARGIN ò •
Slide 7: North American Motorized Segment Fourth Quarter of Fiscal 2022
($ millions) NORTH AMERICAN NET SALES ñ MOTORIZED SEGMENT Increased 24.5%* driven primarily by net selling price increases and changes $1,024.8 $823.1 in product mix Fourth Quarter of Fiscal 2022 4QFY21 4QFY22 NORTH AMERICAN MOTORIZED KEY DRIVERS GROSS PROFIT MARGIN ñ 18.0% • Strong order backlog of
Slide 8: European Segment Fourth Quarter of Fiscal 2022
($ millions) NET SALES ò EUROPEAN SEGMENT Decreased 16.8%* driven by a 14.0% decrease in unit shipments due $969.9 $806.7 primarily to chassis supply shortages Fourth Quarter of and a decrease in foreign exchange Fiscal 2022 rates 4QFY21 4QFY22 Net sales decreased 4.4% on a constant-currency basis E
Slide 9: Strong Financial Position
STRONG FINANCIAL POSITION (1) OPERATING CASH FLOW TOTAL LONG-TERM DEBT ($ millions) ABL Other ($ millions) $100 $76 $990.3 TLB Total Long- Unsecured Notes Term Debt $1,124 $500 $1,800 $526.5 $351.4 $352.7 4QFY21 FY21 4QFY22 FY22 Capital Expenditures $47.7 $128.8 $71.7 $242.4 (2) (2) LIQUIDITY ($ mil
Slide 10: Capital Management
CAPITAL MANAGEMENT NET CASH FROM OPERATIONS AND CAPITAL EXPENDITURES ($ millions) $990 $541 $526 $508 $467 $419 $341 $248 $242 $145 $149 $138 $130 $129 $119 $115 $107 $30 $42 $52 $10 $24 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Net Cash from Operations Capital Expenditures CASH PRIORIT
Slide 11: Fiscal Year 2023 Priorities
FISCAL YEAR 2023 PRIORITIES NAVIGATE NEAR-TERM VOLATILITY • Employ variable cost structure ◦ Adjust production rates FAST & FLEXIBLE ◦ Continuous cost control • Optimize dealer inventory levels ◦ Demand pull-through focus on towable production to maintain appropriate levels ◦ Mitigate motorized supp
Slide 12: Appendix
APPENDIX 12
Slide 13: THOR Overview: Who We Are
THOR OVERVIEW The Global RV Industry Leader WHO WE ARE • Experienced growth- oriented team FOUNDED IN ~32,000 >400 ~3,500 1980 EMPLOYEES (1) FACILITIES WORLDWIDE (1) INDEPENDENT DEALERSHIP LOCATIONS (1) • Leading brands • Cash generation focus $16.3B FY22 NET SALES • Customer-centric NET SALES BY SE
Slide 14: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP NORTH AMERICAN EUROPEAN Travel Trailers Fifth Wheels Class A Class C Class B All RV Segments CATEGORY 20.7% MARKET 41.5% 43.5% 39.9% (1) SHARE 52.9% 53.7% MARKET POSITION (1) #1 #1 #1 #1 #1 #2 (1) As of calendar YTD June 30, 2022. Data reported by Statistical Surveys, Inc i
Slide 15: RV Industry Overview: North America
RV INDUSTRY OVERVIEW North America RV WHOLESALE MARKET TRENDS (UNITS 000's) YTD Shipments (Units) 5-year CAGR (2016 - 2021): 6.9% June 2022 June 2021 Unit Change % Change 323,831 300,267 23,564 +7.8% 600.2 504.6 483.7 498.8 430.7 406.1 430.4 419.0 370.0 384.5 390.4 356.7 374.2 321.2 320.9 353.5 321.
Slide 16: RV Industry Overview: Europe
RV INDUSTRY OVERVIEW Europe (1) EUROPEAN INDUSTRY UNIT REGISTRATIONS BY COUNTRY Caravans Motorcaravans Total Country CYTD June 30, % CYTD June 30, % CYTD June 30, % 2022 2021 Change 2022 2021 Change 2022 2021 Change Germany 14,217 14,111 0.8 % 40,985 48,728 (15.9) % 55,202 62,839 (12.2) % The Compan
Slide 17: Consumer Trends Support Continued Long-Term RV Industry Growth
CONSUMER TRENDS SUPPORT CONTINUED LONG-TERM RV INDUSTRY GROWTH Supported by Real Data from RVers 95% of new RVers are happy 97% of lightweight owners 97% 68% of current RV owners (1) with their purchase are happy with their intend to repurchase a (1) purchase of B van owners are new RV in the next 5
Slide 18: Quarterly Adjusted EBITDA Reconciliation - FY 2022
QUARTERLY ADJUSTED EBITDA RECONCILIATION - FY 2022 ($ in thousands) 1QFY22 2QFY22 3QFY22 4QFY22 FY22 Net Income $ 244,803 $ 265,635 $ 346,018 $ 281,787 $ 1,138,243 Add Back: Interest Expense, Net 20,720 24,507 22,289 22,576 90,092 Income Taxes 68,039 80,618 116,389 56,575 321,621 Depreciation and Am
Slide 19: Investor Relations Contact
INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294-7724 www.thorindustries.com