THOR Industries, Inc. · NYSE:THO

THOR Industries — Investor Presentation (December 2006)

34 slides from THOR Industries's investor presentation, December 2006

  1. Slide 1: Driving For Excellence

    Driving For Excellence www.thorindustries.com 2006

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This presentation contains forward­looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Investors are cautioned that forward­looking statements are inherently uncertain. A number of factors could cause actual results to differ mate

  3. Slide 3: Driving For Excellence

    ­ Driving For Excellence • #1 in two markets, RVs and Buses. • Cash of $207 million on 10/31/06 and zero debt. • Generates substantial cash. • Profitable every year since inception; only company. • $3.066 billion sales in fiscal 2006. • Increased annual per­share dividend payout rate from $.02 to $.

  4. Slide 4: Company History

    Company History • Founded in 1980 • Built from scratch • IPO 1984, NYSE 1986 • Largest builder of RVs ­ 29% of industry ­ 90% of sales • Largest builder of mid­size buses ­ 38% of industry ­ 10% of sales

  5. Slide 5: Sales ($ millions)

    Sales ($ millions) ­4% $3,066 $3,000 $2,558 $2,500 Excluding $75 million of $2,188 extraordinary hurricane relief sales last year, sales were up $2,000 6% $1,571 $1,500 $1,245 $822 $761 $1,000 $728 $500 $0 2001 2002 2003 2004 2005 2006 3 m o nths 3 m o nths 10/31/05 10/31/06 Years ended 7/31

  6. Slide 6: Product Revenue Breakout

    PRODUCT REVENUE BREAKOUT 10% 5% 14% Class Cs Class As BUS MOTORIZED 2% Park Models 5th Wheels Travel Trailers 35% TOWABLES Buses 71% ­ fastest growing and most stable RV segment 34%

  7. Slide 7: Net Income ($ millions)

    Net Income ($ millions) $ 200 ­25% $172.5 $ 150 $121.8 $106.1 $ 100 $78.6 $51.2 $43.4 $ 50 $32.6 $26.7 $0 2001 2002 2003 2004 2005 2006 3 mont hs 3 mont hs 10/ 31/ 05 10/ 31/ 06 Years ended 7/31

  8. Slide 8: E.P.S.

    E.P.S. ­23% $3.05 $3.00 $2.15 $2.25 $1.85 $1.50 $1.38 $.94 $.77 $0.75 $.56 $.59 $0.00 2001 2002 2003 2004 2005 2006 3 mont hs 3 mont hs 2005 2006 Years ended 7/31

  9. Slide 9: Backlog ($ millions)

    BACKLOG ($ millions) (as of October 31) 2006 2005 % change RV Towables $120 $252 ­52% Motorized 68 81 ­16% Sub­total 188 333 ­ 43% Bus 218 140 +55% Total $406 $473 ­14%

  10. Slide 10: RV Sales ($ millions)

    RV Sales ($ millions) 29% Market Share $2,751 $2,800 ­7% $2,400 $2,308 TOWABLES $2,174 12% $1,973 TOWABLES $2,000 Market Share Excluding $75 million of $1,742 extraordinary hurricane related revenues, RV sales $1,600 $1,354 TOWABLES were up 5%. $1,434 $1,200 TOWABLES $973 $1,126 MOTORIZED MOTORIZED

  11. Slide 11: RV Income Before Taxes ($ millions)

    RV Income Before Taxes ($millions) $300 $270.3 TOWABLES $242.9 $225 $193.2 $173.0 TOWABLES $150 TOWABLES $144.9 $168.6 ­29% $122.7 TOWABLES $110.7 $77.5 $69.8 $75 $49.7 TOWABLES MOTORIZED MOTORIZED $61.4 TOWABLES $25.3 MOTORIZED $28.1 MOTORIZED $24.6 $27.4 $43.6 $12.0 MOTORIZED MOTORIZED $8.3 $6.1 $

  12. Slide 12: Bus Sales ($ millions)

    Bus Sales ($ millions) 38% Market Share 37% Market Share $316 $292 $300 $271 $250 $217 $215 +16% $200 $92 $100 $79 $0 2001 2002 2003 2004 2005 2006 3 months 3 months 10/31/05 10/31/06 Years ended 7/31

  13. Slide 13: Bus Income Before Taxes ($ millions)

    Bus Income Before Taxes ($ millions) $30 $20.2 $20 $15.0 + 51% $12.3 $9.6 $9.4 $10 $7.5 $2.0 $3.0 $0 2001 2002 2003 2004 2005 2006 3 months 3 months 2005 2006 Years ended 7/31

  14. Slide 14: U.S. RV Industry Shipments

    U.S. RV Industry Shipments • Industry shipments up 3.9% in 2005 to 384,400 units, a record. • Travel trailers and fifth wheels (93% of our RV unit sales) up 10.5% in 2005. • Motor homes down 14.5% in 2005. • Travel trailer and fifth wheels units +10.2% through 10/31/06. • Motor home units ­10.5% thr

  15. Slide 15: Favorable Demographic Trends

    Favorable Demographic Trends • Baby Boomers (55­64) are industry “sweet spot”. • 78 million with discretionary wealth and leisure time. • Want the freedom that RVing offers. • 27% of U.S. population is over 55. Controls 75% of U.S.financial wealth. • Growing by 350,000 monthly.

  16. Slide 16: Baby Boomers

    BABY BOOMERS • 55­64 age group will grow 48% between now and 2010. That is 5 times the expected 9% growth of the total population. +48% 50% 40% 30% 20% +9% 10% 0% Total Population 55­64 Age Group *U.S. Census Bureau, 2000

  17. Slide 17: Thor - Taking Advantage of Positive RV Growth Factors

    Thor ­ Taking Advantage of Positive RV Growth Factors • Major upgrade and expansion of physical plant. – Added over 3.7 million sq. ft. of state­of­the­art manufacturing space in last 5 years. • Spent $30 million in fiscal 2006 and $48 million in fiscal 2005 in capital projects. – Keystone plant of

  18. Slide 18: Thor RV Innovation

    Thor RV Innovation Keystone Montana Dutchmen Grand Junction Four Winds Mandalay­diesel motor home CrossRoads Zinger

  19. Slide 19: Thor RV Innovation

    Thor RV Innovation Airstream International Travel Trailer with high design interior appealing to younger buyers.

  20. Slide 20: U.S. RV Industry

    U.S. RV Industry Retail registrations (units) THOR’S PURCHASING LEVERAGE 9 months ended 9/30/06 SHARE TOTAL* 2006 2005 Thor 68,145 28.9% 27.4% Forest River 34,129 14.5% 14.0% Fleetwood 19,707 8.3% 10.3% Jayco 19,075 8.1% 7.7% Monaco 12,824 5.4% 6.3% Coachmen 7,836 3.3% 4.6% Winnebago 7,752 3.3% 3.3%

  21. Slide 21: U.S. Mid-Size Bus Industry

    U.S. Mid­Size Bus Industry • Mid­size buses are the most cost effective, common sense mass transportation. – Vastly superior fuel economy. – Much lower up front and operating costs. • Up 11% in 2005 to 12,395 units versus 11,196 units in 2004 and is up 9.3% in the first 9 months of 2006. • Industry

  22. Slide 22: Thor Bus Leads the Industry

    Thor Bus Leads the Industry • #1 in $900+ million industry. • 38% market share. • Larger than next two competitors combined. • Leader in low cost, fuel efficient transit, alternative fuels. • Entered 40­ft. low floor bus industry.

  23. Slide 23: Thor Bus Leads the Industry

    Thor Bus Leads the Industry • Profits are improving. • Best sales and service network. • 90% of our buses have certified 5­year life. Must be replaced. October 31, 2006 backlog up 55%. • Sales in fiscal 2005 were up 16%. • Sales in fiscal 2006 were up 26%. • Sales in Q1 2007 were up 16%. • Certified

  24. Slide 24: Thor Bus Innovation

    Thor Bus Innovation 40 ft. low­floor Axess Aero Elite 35 ft. low­floor E­Z Rider II Max Aerotech

  25. Slide 25: Corporate Integrity

    Corporate Integrity • No excessive compensation, stock options, or restricted stock for Chairman or Vice Chairman. • Compensation philosophy simple: – Pay key people primarily cash, without a cap, based on income before taxes. – Stock options, restricted stock, etc. minimal. About 1¢ per share. • No

  26. Slide 26: Thor Highlights

    Thor Highlights 3 Months Ended 10/31/06 SALES NET INCOME E.P.S. $1,000 $100 $1.00 $761 $.77 $728 $.59 $500 $50 $43.4 $.50 $32.6 $761 $728 $0 $0 $.00 2005 2006 2005 2006 2005 2006 ­4% ­25% ­23% $ millions, except E.P.S.

  27. Slide 27: Major Goals

    Major Goals • Expanding #1 position in our two industries, highly profitably. • Not satisfied. No complacency, raising the bar. • 20% net income growth per year. 15% sales growth. • Continued margin improvement. – Increased revenues. – Purchasing leverage. – Cost reductions. • Increase shareholder v

  28. Slide 28: Stock Performance

    Stock Performance As of December 7, 2006 5 year MARKET CAPITALIZATION Price (000) Growth** •THO +373% $ 2,470,000* •WGO + 106% $ 1,100,000 •COA + 2% $ 171,000 •MNC ­ 30% $ 406,000 •FLE ­ 21% $ 528,000 •NVH ­ 57% $ 44,000 •S&P 500 + 21% N/A ** Adjusted for stock splits and dividends. * Thor market ca

  29. Slide 29: Unsurpassed Growth Record

    Unsurpassed Growth Record Over the past 5 years: • Sales have grown at an average compound rate of 31%. • Net income has grown at an average compound rate of 47%. • E.P.S. has grown at an average compound rate of 41%.

  30. Slide 30: Late Breaking News

    LATE BREAKING NEWS • Thor travel trailer and fifth wheel retail sales up 2.9% through September 2006. Industry down 1.1%. Market share is 32.1%, up from 31.0%. • Thor motor home retail sales down less than 1% through October 2006. Industry segment down 11.5%. Thor motorized market share 14.2% vs. 12

  31. Slide 31: Class A Unit Retail Sales October

    Class A Unit Retail Sales October Month YTD change 2006 2005 change 2006 2005 Thor Gas +15% 226 197 + 8% 2,521 2,337 Diesel + 9% 76 70 +12% 869 775 Total +13% 302 267 + 9% 3,390 3,112 Share up 13.4% 10.2% up 12.4% 9.6% Winnebago Gas ­21% 235 297 ­24% 2,770 3,668 Diesel ­23% 124 162 ­13% 1,410 1,629

  32. Slide 32: More Late Breaking News

    MORE LATE BREAKING NEWS • Gasoline prices down over 50¢ per gallon. • Difficult comparisons with last year for towables. • $114 million of hurricane related business in 6 months ended 1/31/06. $75 million in Q1 and $38 million in Q2. • Hurricane related sales last year increased EPS by 19¢. • Tighte

  33. Slide 33: Continuing Strong, Profitable Growth

    Continuing Strong, Profitable Growth • Way out performing competition in both segments of RV industry. • Market leader in our two industries. – RV in a growth phase and will continue to be a major cash generator. – Bus has turned the corner and is in an upward trend. • Unmatched RV purchasing power.

  34. Slide 34: Driving For Excellence

    Driving For Excellence www.thorindustries.com 2006

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