THOR Industries, Inc. · NYSE:THO
THOR Industries — Q1 FY2018 Earnings Presentation
34 slides from THOR Industries's earnings presentation, Nov 27, 2017
Slide 1: Investor Presentation
INVESTOR PRESENTATION NOVEMBER 27, 2017 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: Thor Operating Entities
Thor Operating Entities THOR INDUSTRIES | | | | CNAIRSTREAM ==> & Jayco Ke Pestle WI) THOR @’ |e — Highland ivin’ Lite & corncun | e7Highland | © Livin’ tite ee STARCRAFT.s” > a HEARteaND CO ease” —/ ™ PN ‘Hh, Rae ax Dutchmen es THOR | INDUSTRIES g
Slide 4: Table of Contents
Table of Contents Overview and Current Industry Conditions 5 First Quarter 2018 Update 16 Appendix: Financial & Market Data 23 4
Slide 5: Overview and Current Industry Conditions
Overview and Current Industry Conditions 5
Slide 6: Thor – Strong Investment Appeal
Thor – Strong Investment Appeal » Solid growth company throughout its 37-year history – 27.9% compounded annual five-year EPS growth* o Balance of organic growth and accretive acquisitions » Market leader in a growing industry – Recreational Vehicle (RV) shipments projected to grow 11.4% in calendar
Slide 7: Solid Economic Fundamentals Support Continued RV Industry Growth
Solid Economic Fundamentals Support Continued RV Industry Growth » High consumer confidence » Favorable employment and wage trends » Continued gains in household wealth » Historically low interest rates » Wide credit availability for both wholesale and retail » Stable fuel prices and wide availabili
Slide 8: Consumer Trends Support Continued RV Industry Growth
Consumer Trends Support Continued RV Industry Growth Consumers identified as “Active Family 40% = 129M Adventurers,” “Adult Adventurers” or “Nature Lovers” = Most likely groups to own or rent an RV in the future * 38% = 49M Potential first-time buyers have investigated purchase or visited an RV show
Slide 9: Trends Driving Growth: Demographics
Trends Driving Growth: Demographics » +3.4 MILLION new households » Latino, African American, Asian and MORE POTENTIAL RV have started camping since 2014 * other ethnicities represented 39% BUYERS ** of new campers in 2016; 26% of all » Gen X and Millennials made up campers * 72% of campers in 2016
Slide 10: Trends Driving Growth: Lifestyle
Trends Driving Growth: Lifestyle Recreational sports Camping Wide variety of uses » $887 billion spent on “outdoor » In 2016, 37.1 million U.S. households » Tailgating at spectator sports, from recreation” in 2016* camped at least once during the year, college and professional football to and 22% of
Slide 11: Trends Driving Growth: Affordability, Flexibility & Convenience
Trends Driving Growth: Affordability, Flexibility & Convenience Benefits of RV Travel » RV vacations offer greater savings over those taken » The ability to go where you want, when you want, with few using a personal car or airline, staying in a hotel or restrictions or limitations is precisely what
Slide 12: Health of the RV Channel
Health of the RV Channel Dealer Inventory Levels: » Overall dealer inventory levels remain healthy » Total days in inventory at dealers are stable » Average age of RV inventory on dealer lots remains low » Used inventory levels remain low, supporting trade-in values and demand for new RVs Wholesale
Slide 13: Opportunities for Continued Growth – Product Innovations & Manufacturing
Opportunities for Continued Growth – Product Innovations & Manufacturing » Continuous investments in new products, features and floorplans ◦ Short product development cycle enables us to introduce new models every year, reinforcing the consumer trade-in cycle » Organic growth through continued inves
Slide 14: Opportunities for Continued Growth – Further Market Penetration
Opportunities for Continued Growth – Further Market Penetration » Expanded Thor marketing efforts ◦ Marketing to younger families and more diverse consumer segments ◦ Go Your Own Way™ Campaign launched September 2017 Growth Levers » Geographic expansion ◦ Recent new and expanded campuses added over
Slide 15: 2017 Dealer Open House
2017 Dealer Open House » We hosted our 8th annual Dealer Open House September 18-21, 2017, in Elkhart, Indiana. Show highlights included: ◦ Record attendance ◦ Record orders ◦ Dealers highly optimistic regarding remainder of 2017 and calendar 2018 ◦ Numerous product introductions or redesigns with a
Slide 16: First Quarter 2018 Update
First Quarter 2018 Update THIOR | INDUSTRIES
Slide 17: First Quarter Key Messages
First Quarter Key Messages » All-time record quarterly revenues and profit » Double-digit sales growth in both segments – towables (+33.7%) and motorized Strategic (+22.8%) » Execution of our strategic plan Execution » Capacity expansions » Q1 year-over-year margin enhancement » Market share gains –
Slide 18: First Quarter 2018 Results Up Double Digits
First Quarter 2018 Results Up Double Digits Net Sales Gross Profit Net Income Diluted EPS ($ millions) ($ millions) ($ millions) $333.2 $128.4 $2,231.7 $2.43 $1,708.5 $236.8 $78.7 $1.49 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 » All-time record quarterly sales and net income » Gross p
Slide 19: First Quarter 2018 – Towables
First Quarter 2018 – Towables » Continued mix shift Net Sales Gross Profit toward more ($ millions) ($ millions) affordably-priced travel trailers $1,618.5 $256.7 » Market share $1,210.9 $175.0 continued to improve through September 2017, with U.S. Q1FY17 Q1FY18 Q1FY17 Q1FY18 Towable Towable share S
Slide 20: First Quarter 2018 – Motorized
First Quarter 2018 - Motorized » Continued mix shift toward Net Sales Gross Profit more affordably-priced ($ millions) ($ millions) Class C and gas Class A motorhomes $566.6 » Market share momentum $461.5 $63.9 $51.4 continued through September 2017, with Motorized U.S. Class A and C market Q1FY17 Q
Slide 21: Key Stats – Q1
Key Stats – Q1 (As of or For the Quarters Ended October 31) Income Statement Net Sales Net Income Gross Margin Diluted EPS ($ millions) ($ millions) $1,708.5 $2,231.7 $128.4 13.9% 14.9% $78.7 $1.49 $2.43 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 Balance Sheet & Working Capital Cash & Cash Equivalents
Slide 22: Historical Key Stats
Historical Key Stats (As of or For the Fiscal Years Ended July 31) Income Statement Net Sales Gross Margin Net Income Diluted EPS (Continuing Ops., $ millions) (Continuing Ops.) (Continuing Ops., $ millions) (Continuing Ops.) $111.4 $151.7 $175.5 $202.0 $258.0 $374.3 $2,640 $3,242 $3,525 $4,007 $4,5
Slide 23: Appendix: Financial & Market Data
Appendix: Financial & Market Data 23
Slide 24: Thor’s RV Product Range
Thor’s RV Product Range Specialty Trailers Travel Trailers Fifth Wheels includes camping trailers, truck hitch to a specially mounted hitch in hitch to the bumper of the tow vehicle; campers and horse trailers with living the bed of a pickup truck; retail price <$10,000 - $150,000 quarters; retail p
Slide 25: Seasonal Shipment Patterns
Seasonal Shipment Patterns 60,000 50,000 40,000 Units 30,000 20,000 10,000 0 * Source: Statistical Surveys, Inc., U.S. and Canada ** Source: Recreation Vehicle Industry Association Retail * Wholesale ** 25
Slide 26: RV Wholesale Market Trends (Units 000s)
1980 106.9 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 1992 203.4 Historical Data: Recreation Vehicle Industry Association (RVIA) 1993 227.8 (Units 000s) 1994 259.5 1995 247.2 1996 247.5 1997 254.5 1998 292.7 1999 321.2 200
Slide 27: RV Wholesale Market Towable Trends (Units 000s)
1980 78.4 1981 98.1 1982 99.4 1983 127.1 1984 133.7 1985 118.1 1986 122.1 1987 137.9 1988 142.9 1989 126.7 1990 120.8 1991 121.1 1992 156.5 Historical Data: Recreation Vehicle Industry Association (RVIA) 1993 176.5 1994 201.3 1995 194.3 1996 192.2 1997 199.5 1998 229.1 1999 249.6 2000 239.1 2001 207
Slide 28: RV Wholesale Market Motorized Trends (Units 000s)
1980 28.5 1981 35.4 1982 41.2 1983 69.5 1984 82.0 1985 68.7 1986 67.7 1987 73.7 1988 72.8 1989 61.1 1990 52.3 1991 41.9 1992 46.9 Historical Data: Recreation Vehicle Industry Association (RVIA) 1993 51.3 1994 58.2 1995 52.8 1996 55.3 1997 55.1 1998 63.5 1999 71.5 2000 61.0 2001 49.2 2002 60.4 2003 6
Slide 29: Consumer Confidence
Consumer Confidence 140 120 100 80 60 40 20 0 Historical Data: The Conference Board, Consumer Confidence Survey ® 29
Slide 30: RV Industry Demand
RV Industry Demand » Industry retail demand has shifted toward lighter-weight, more affordably-priced towables and gas Class A and Class C motorhomes as consumers seek value » Wholesale units typically outpace retail in the early part of the calendar year; historically sales become more balanced as
Slide 31: Thor Dealer Inventory
Thor Dealer Inventory » Dealers remain confident with orders reflecting normal ordering patterns » Dealers are beginning to build inventory in advance of the spring selling season » Dealer inventory levels in general are appropriate, to slightly low, for current conditions in both towable and motori
Slide 32: RV Industry Retail Market Share
RV Industry Retail Market Share YTD 9/30/17 Y/E 12/31/16 Y/E 12/31/15 Y/E 12/31/14 Total Share % Total Share % Total Share % Total Share % THOR* 184,795 48.5% 195,973 47.4% 178,520 47.6% 160,663 48.9% Forest River** 131,851 34.6% 144,909 35.1% 132,923 35.4% 112,979 34.4% Grand Design 14,121 3.7% 11,
Slide 33: Thor RV Retail Market Share Trend (Units)
Thor RV Retail Market Share Trend (Units) Towable Retail Share* Class A/C Retail Share* Class B Retail Share* 54.9% 53.7% 51.3% 49.7% 48.9% 49.7% 41.7% 37.8% 32.8% 31.0% 29.4% 25.4% 22.1% 21.9% 22.1% 18.3% 16.7% 14.5% 2012 2013 2014 2015 2016 2017 YTD *Source: Statistical Surveys Inc., U.S. and Cana
Slide 34: www.thorindustries.com
www.thorindustries.com