Slide 1: drewindustries.com
© drewindustries.com lippertcomponents.com
Slide 2: Passionate about winning
passionate about © 8 i] a o winning: team play with trust “9; 5 honesty « integrity » candor rr Caring about = people © 5
Slide 3: Watch the video
Watch the vided
Slide 4: 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 5: Management Team
JASON LIPPERT, CEO 20+ years with Drew (tg) | INDUSTRIES INCORPORATED. Management Team SCOTT MERENESS, PRESIDENT 20+ years with Drew DAVID SMITH, CFO Average tenure of Drew’s members of senior managementis 14+ years with the company
Slide 6: Financial Performance
Financial Performance Net Sales — O€Mnet sales” Aftermarket net sales” = EBITDA” EBITDA $1,600 a y $250 Net Sales and EBITDA (in mitiions) T $1,403 | $1,400 | I $200 1,191 $1,200 $ { 1,127 $1,016 S t $1,000 T $977 | $150 $800 t | ssoo ¢ $573 f $100 $400 : + $50 $200 j. — a = — = $0 2010 2011 2012 20
Slide 7: Net sales by segment
OEM Towable $427 $660 $725 $836 Aftermarket OEM Motorhome International Total $573 $681 $901 $1,016 $1,191 $1, 403 $1,543 © 19% 32% 13% AT 18% 18% _ me . + LIM 2016 percentage growth is compared to LIM 2015. | + Prior periods have been recast to conform to the Company's new reportable segments.
Slide 8: Non-OEM Towable RV Net Sales
($ in millions) Non-OEM Towable RV Net Sales oe $543. CAGR $500 32% $400 23% $300 $200 $146 19% $100 =: $0 2010 LIM 6/16 ™=OEM Adjacent Industries = Aftermarket ™§OEMRV Motorhome — m international Sales for the year ended December 31, 2010 compared to the last twelve months ended June 30, 2016. Both
Slide 9: Sales growth from acquisitions, organic and industry
» ¢) Sales for acquistions represent the traling twelve month sales at the date of acquétion. Any post-acquistion change_is included in organic or industry accordingly. Organic growth consistsprimariy of gains in market share, pre increases and new product sales. Industry growth represents the incre
Slide 10: OEM and Aftermarket Industries
OEM and Aftermarket Industries
Slide 11: RVs - Industry Wholesale Shipments
RVs - Industry Wholesale Shipments (Compared to Drew’s Performance) tngustY Approximately 71% of Drew’s OEM Segment net sales are for Travel Trailer and 5 Wheel RVS jer ecies Industry unitsin thousands, net sales in millions) 800 $1,200 $1,108 mm Motorhomes $1,025 -™ a) Other Towables . andi Travel
Slide 12: RV Wholesale Shipments
Thousands of Units RV Wholesale Shipments RV Shipments RV Shipments vs Federal Interest Rate \ \ Nua Vv NV RV Shipments Annual hange Thousands of Units Thousands of Units RV Shipments vs Consumer Confidence ° e 2 = = 5 8 Ss £ Charts updated up through June 2016. <o cS
Slide 13: Product range of RV components
ad » eS FURRION Doors APPLIANCES awnings @ tes FURNITURE ES ELECTRONICS FURRION ) ELECTRONICS winpows ‘SHOWERS & SINKS SLIDE-OUT ma MECHANISMS , 4 SUSPENSION =¥ 4 ENHANCEMENTS AXLES. LEVELING STEPS CHASSIS eee lippertcomponents.com -12-
Slide 14: Manufacturing capabilities
Fabric and Electronics and Steel and Lamination Steel and Motion- Woodworking Plastic Forming Aluminum and Glass Aluminum Systems Fabrication Fabrication Welding
Slide 15: Towable RVs and Motorhomes
Towable RVs (Approximately 71% of Drew’s OEM Segmentnet sales) _o— &¢@ Motorhomes (Approximately 7% of Drew's. OEM Segmentnet sales) of industry 2015 unit sales of 2015 wholesale dollar sales, or $9.7 billion Retail cost $4,000 to $100,000+ per unit. Average about $30,000 of industry 2015 unit sales
Slide 16: RV campers and camping households
(EP 59,, Hye Tent Campers _ Aili 27.5 million | 7 re a RV C: Py cic] SF em Tr piste 18, = Cabin Campers => 8.4 million a) | prew * Estimates based on 106 million households. All other (1%) 0.5 milion. 60% Camp Every Year 28.6 million 10% Camp Every Other Year 48 million 30% Camp Occasionally 14.0 mi
Slide 17: RV consumer trends
+ Typical RV family vacation is 23 to 59 percentless expensive for a family of four The number of consumers between the ages of 55 and 70 is projected to total 56 million by 2020 Generation X and Millennials are a source of industry growth mainly in the entry- level market College and NFL football g
Slide 18: RV Industry Trends
RV Industry Trends Units Travel Trailer and 5" Wheel RVs, Drew’s primary RV market 317 p25 Wholesale sms Retail 559 ou 300 (Units in thousands) 275 Bee 250 226 225 199 200 | 18 186 120 99 175 164 171 168 150 138 125 100 75 50 25 07 2008 2009 2010 ©2011 2012 2013 2014 2015 «YTDeMs ©yTDEI6 Estimated D
Slide 19: Number of U.S. Households that Own an RV
Number of U.S. Households that Own an RV (in Millions) 10 6 ii = LJ 2 : Le e 1980 1984 1988 1993 1997 2001 2005 2011 © | previ Statistics provided by RV Consumer Demographic Profile — 2011
Slide 20: 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 own
Slide 21: What's Next
International RV What's Next... + Innovation/R&D +. Aftermarket OEM Adjacent Markets - Acquisitions - Additional Addressable Market
Slide 22: International RV Markets
| International RV Markets
Slide 23: oO
oO
Slide 24: Slide 24
Slide 25: Marine Bus Truck Fleet Cargo
Marine Bus Truck Fleet Cargo
Slide 26: New Products & Acquisitions
New Products & Acquisitions | i i r 3 2016 i 3 : ISNOLLMMOS NOISSA JALWAONNI auINDOW |< > & oe c: ‘ab fi Pp ro § 2 2 a a = = ir 2012 ©2013 201
Slide 27: Recent acquisitions
EA Technologies heptiaubieniate anitouae iat naat taal coating services Signature Seatinge Horst otherness ate Flair Interiors Monufacturerof RV furniture and mattresses which added approximately $35 million in net sales for the LIM ended June 30, 2016. [1] In July 2015 the Company entered into the
Slide 28: Acquisition Discipline and History
Acquisition Discipline and History © | onew! Have made nearly 40 acquisitions over the past 16 years Weare experienced at successfully integrating acquisitions Acquisitions have come in the form of intellectual property, small start ups and larger businesses 6 out of last 10 acquisitions have had su
Slide 29: RV Content
RV Content $1,460 (1}, Amounts [in milions) represent Management's estimate of the size of the addressable market, excluding the Company's current net sales to those markets. (2) Furrion includes products to be released during 2016 and 2017.
Slide 30: Content Per New Towable RV
Content Per New Towable RV + Approximately 71% of OEM Segment net sales are for Travel Trailer and Fifth-Wheel OEMs + 100% market share in existing products would yield 4 yer’ an estimated $7,400 per Towable RV us $2,987 ¢9 91988013 cae z + In 2016, Travel Trailer unit volume is up 14% yly due inte
Slide 31: Content Per New Motorhome RV
Content Per New Motorhome RV Approximately 7% of OEM Segment net sales are for Motorhome OEMs 100% market share in existing products would yield an estimated eS $6,000 per Motorhome RV $208 Increase $330 Increase 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LIM‘I5LIM ‘16 previ At indu
Slide 32: Supplemental Schedules
Supplemental Schedules
Slide 33: Operating Results - Three Months Ended June
Operating Results Three Months Ended June 30 FINANCIAL PERFORMANCE 6 ions, except EPS) 2016 2015 Change Net Sales $ 440.8 $ 362.1 22% Operating Profit $ 594 $ 33.6 77% % of Sales 13.5% 93% Net Income $ 37.6 $ 209 80% Diluted EPS isl] Wisi 78%
Slide 34: Operating Results - Six Months Ended June
Operating Results Six Months Ended June 30 FINANCIAL PERFORMANCE 6 ions, except EPS) 2016 2015 Change Net Sales $ 863.6 $ 723.5 19% Operating Profit $ IIS $: 165:5 76% % of Sales 13.3% 9.0% Net Income $ 73.5 $ 40.9 80% Diluted EPS Se 96 be 167i 77%
Slide 35: Three Months segment results
Three Mont! OEM Segment $ 406.9 §$
Slide 36: Six Months segment results
Six Months | OEM Segment
Slide 37: Debt Position
Debt Position (CIAL PERFORMANCE (Sin millions) 12/31/11 $ 12/31/12 12/31/13 12/31/14 12/31/15 06/30/16 Cash and Net Cash eerie Investments (Debt) the Period $ 7 $ i $ 50 100) 100) 1 66 66 5 Z (16)2) 107 12 (38)®) Al 72, 2914) 37 On December 20, 2012, the Company paid a special dividend of $2.00 per
Slide 38: Cash Flow
Cash Flow ($ in millions) FINANCIAL PERFORMANCE Acquisitions (23) $ 281 Capital expenditures 184 Dividends 188 Stock repurchases 2 Total S$ 655 @ | previ (1) Includes 2016 YTD acquisifions totaling $36.9 milion. <O7r
Slide 39: Cash Flow
Cash Flow FINANCIAL PERFORMANCE $192 $200 . mm Dividends Capital Expenditures = Acquisitions + Operating Cash Flow $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 2009 2010 2011 2012 © 2013(1) +2014 2015 LTM6M6 YTD 66 Operating cash flow from 2009 to present ($ in millions) (1) Cash dividend of $2.00 pe
Slide 40: Balance Sheets
Balance Sheets FINANCIAL PERFORMANCE ($ in mi Nn: 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 @Q22016 Total Assets So Sol $e S745 be 453, $ 544 $ 623 $ 758 Total Debt = 7 7 16 50 50 Cash & Investments i 10 66 = 2 Te, Stockholders’ Equity 277 28413) 3144) 395 43915) 50316) Days Salesin A/R'"” 17 day
Slide 41: Financial Strength
Financial Strength FIN IA\ (12 months ended) 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 06/30/16 Return on Equity 11% 13% 16% 17% 18% 24% Return on Assets 9% 10% 12% 12% 12% 16% Return on Invested Capitalt 20% 22% 28% 26% 25% 34% Total Debt to Equity 0.00 0.00 0.00 0.04 0.11 0.10 Total Debt to EBI
Slide 42: Reconciliation of Operating Profit to EBITDA
Reconciliation of Operating Profit to EBITDA FINANCIAL PERFORMANCE (S in millions) 15 LTM 6/16 ecraing $ 485 $ 581 $ 783 |$ 955 § 1163 § 1659 Profit De presanonis: 205 27 2275 326 Ab 44.0 Amortization EBITDA 690 838 1058 1281 1579 2099 Capital eee 943|| 320|| 426 42.5, 29.0 273 © | onew! .
Slide 43: Segment Net Sales and Operating Profit
_ Segment Net Sales: OEM § 651A § 8659 -$ 976.5 $% 141270 $ 1,300.1 $ 1,422.9 Aftermarket DoF 35.2 39.1 63.8 103.0 120.3 Segment Operating Profit: | OEM Aftermarket
Slide 44: Stock Price History
Stock Price History Drew has 24.6 million shares outstanding and a market capitalization of approximately $2.5 billion as of August 18, 2016 $100 $28 $26 $27 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 8/18 previ + Dates noted above + Stock prices above f December 31,
Slide 45: 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 ” Sidoti & Company ” Thompson Research Group > Kathryn Thompson — (615) 891-6206