THOR Industries, Inc. · NYSE:THO
THOR Industries — Investor Presentation (June 2013)
33 slides from THOR Industries's investor presentation, Jun 6, 2013
Slide 1: Thor Industries
wh Tg pt Nad 9 ae " — INDUSTRIES Ky atin ias , » 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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward looking
Slide 3: Who is THOR
Who is THOR The sole owner of operating subsidiaries that represent the world’s largest manufacturer of recreation vehicles • Founded in 1980 by Wade Thompson & Peter Orthwein with the acquisition of Airstream, Inc. • #1 in overall RV 36.1% of market* • #2 in Travel Trailers 32.8% of market* • #1
Slide 4: THOR's Product Range
THOR’s Product Range Travel Trailers FY2012 Sales* Fifth Wheels Bus Group $444,862 14% Motor Homes Motorized RV $353,935 12% Towable RV Buses $2,285,863 74% * Fiscal year ended July 31, 2012 4
Slide 5: THOR Subsidiaries: RV
THOR Subsidiaries: RV : adventure, inspired by ROSS O AD ® st AIRSTREAM CROSSROADS _& Dutchmen (acme (() THOR MOTOR COACH INDUSTRIES
Slide 6: THOR's Subsidiaries: Bus Group
THOR’s Subsidiaries : Bus Group 6
Slide 7: Why Invest in THOR
Why Invest in THOR Disciplined, Profitable Growth • Profitable every year since 1980 • All time record $3.1 billion sales FY2012, up 12% from FY2011 • $2.8 billion sales in FY2011, up 21% from $2.3 billion sales in FY2010 • FY2012 Net Income of $121.7 million, up 15% from FY2011 • FY2012 EPS of $2
Slide 8: What Makes THOR Different
What Makes THOR Different Proven business model: • Entrepreneurial and decentralized • No ivory tower: approximately 8,800 employees, only 40 in corporate staff* • Decision-making driven by the customer • Big, but nimble • Best management team in the business, as proven by sustained performance
Slide 9: THOR's Competitive Advantages
THOR’s Competitive Advantages Focus on assembly - not heavy manufacturing • Limited vertical integration – only where it makes sense • Flexibility – performance in any market condition • Low overhead costs • High return on assets employed Strong market share in all RV reportable segments • Provi
Slide 10: Recreation Vehicles
Recreation Vehicles _—_. ——s is
Slide 11: Industry Conditions: RV
Industry Conditions: RV Currently a very competitive environment • Top three RV competitors account for 77.4% of industry units* • “Flight to quality” – consumers, dealers, lenders all seek to do business with strong companies like Thor Industry better balanced today Pricing & promotional envi
Slide 12: RV Market Wholesale Trends: Units
12 1974 295.8 1975 339.6 1976 441.1 1977 413.9 1978 389.9 1979 199.2 1980 107.2 estimate as of Spring 2013 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 1993 227.8 Historical Data: Recreation Vehicle Industry Assoc
Slide 13: RV Market Motorized Wholesale Trends: Units
13 1974 68.9 1975 96.6 1976 156.1 1977 160.2 1978 157.2 1979 64.1 (000’s) 1980 28.5 estimate as of Spring 2013 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 1993 51.3 Historical Data: Recreation Vehicle Industry Association, C
Slide 14: RV Market Towable Wholesale Trends: Units
14 1974 126.3 1975 150.6 1976 189.7 1977 167.9 1978 159.8 1979 90.2 (000’s) 1980 49.1 1981 58.1 1982 59.5 1983 82.8 1984 85.3 1985 75.4 1986 78.2 1987 86.2 1988 89.6 1989 82.9 1990 80.4 truck campers, Calendar year 2013: RVIA estimate as of Spring 2013 1991 77.6 1992 102.6 1993 113.6 1994 128.3 Hist
Slide 15: RV: State of Balance
RV: State of Balance Dealers Consumers • Continued optimism • Better access to retail credit • Right-sized inventory • Confidence better • Smaller base of dealers • Low interest rates • Access to wholesale credit • Great demographic trends • Financial health • Will shorten trips to reduce fuel u
Slide 16: THOR RV Dealer Inventory
THOR RV Dealer Inventory • Total Dealer inventory remains appropriate for current conditions • Dealer inventory at April 30, 2013 up 14.4% compared with April 30, 2012, in line with 15.2% RV sales growth in the fiscal third quarter. • Lenders still comfortable with current dealer inventory turns and
Slide 17: The RV Market Ahead
The RV Market Ahead Dealer inventories remain appropriate for consumer demand “Now, it’s all about the retail consumer” Wholesale & Retail units should be fairly balanced going forward Calendar Year 2009 2010 2011 2012 Industry Retail 189,328 units 213,074 units 232,970 units 251,201 units Sal
Slide 18: Buses
Buses
Slide 19: THOR Bus
THOR Bus One of the largest players in a $1 billion industry 34% market share* A leader in low cost, fuel efficient transit, alternative fuel Success in 40-ft. low floor bus industry Top-quality sales and service network Majority of our buses have certified 5-year life. Must be replaced
Slide 20: Current Conditions: Bus
Current Conditions: Bus Mid-size buses are the most cost effective, common sense mass transportation Transit bus cost is generally 80% federally funded 2013 opportunities • Transit customers must replace buses • New products in luxury market to enhance revenues with better margin opportunity •
Slide 21: Three-Year Strategic Plan
Three-Year Strategic Plan Thor’s management team recently developed a three-year strategic plan focused on growth and margin improvement The Strategic Plan was developed using a bottoms-up approach involving each of the Company’s operating subsidiaries and management teams Key elements of grow
Slide 22: Comments on 3rd Quarter 2013 Results
Comments on 3rd Quarter 2013 Results Consolidated sales for the third quarter of fiscal 2013 were $1.05 billion, up 13% from $926.5 million in the third quarter last year, based on strength in recreational vehicle (RV) sales. Net income for the third quarter was $43.8 million, up 6% from $41.3 mil
Slide 23: THOR - Key Takeaways
THOR - Key Takeaways Profitable every year since inception Successfully weathered a severe downturn Two growing businesses – RV and Bus Increased capital investments position Thor for growth and margin improvement over the long term #1 overall RV market share Rock-solid balance sheet. Si
Slide 24: Appendix: Financial & Market Data
Appendix: Financial & Market Data
Slide 25: Corporate Integrity
Corporate Integrity No golden parachutes No ‘pro forma’ earnings. We report net income, not adjusted earnings to cover up performance Consistent focus on shareholder value Simple compensation philosophy: • Mainly cash compensation, without a cap, based on pre-tax income – a true pay for perf
Slide 26: THOR's RV Competitive Advantage
THOR’s RV Competitive Advantage U.S. Retail Registrations (units, excluding fold-downs) YTD 3/31/13 Y/E 12/31/12 Y/E 12/31/11 Y/E 12/31/10 Total Share % Total Share % Total Share % Total Share % THOR 15,989 36.0% 72,988 36.3% 67,278 36.6% 64,837 37.3% Forest River* 14,348 32.3% 60,322 30.0% 52,856 2
Slide 27: Sales ($ millions)
Sales ($ millions) Fiscal years ended July 31, Year to date ended April 30 $3,066 $3,085 $2,856 $2,756 $2,641 $2,666 $2,558 $2,188 $2,277 $2,196 $1,571 $1,522 $1,245 $822 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD '12 YTD '13 27
Slide 28: Net Income ($ millions)
Net Income ($ millions) Fiscal years ended July 31, Year to date ended April 30 $163.4 $134.7 $119.1 $121.7 $110.1 $106.3 $104.5 $92.7 $94.6 $78.6 $77.4 $51.2 $26.7 $17.1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD '12 YTD '13 28
Slide 29: Diluted EPS
Diluted EPS Fiscal years ended July 31, Year to date ended April 30 $2.87 $2.41 $2.26 $2.09 $2.07 $1.92 $1.81 $1.78 $1.66 $1.37 $1.43 $0.94 $0.56 $0.31 2001* 2002* 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD '12 YTD '13 *Adjusted for 2-for-1 stock split 29
Slide 30: 3rd Quarter Financial Summary
3rd Quarter Financial Summary 2013 2012 % Change Net Sales 1,049.2 926.5 13.2% Net Sales by segment: Gross Profit 133.8 109.5 22.2% % of Sales 12.8% 11.8% • Towables +9.1%, motorized SG&A 57.8 47.0 23.0% +47.8%, bus up slightly % of Sales 5.5% 5.1% Income before tax by segment: Impairment of goodwil
Slide 31: Quarterly Thor RV Unit Shipments
31 0 10,000 20,000 25,000 30,000 35,000 40,000 15,000 5,000 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 Quarterly Thor RV Unit Shipments 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q20
Slide 32: Thor RV Retail Market Share: Units
Thor RV Retail Market Share: Units TT/FW Retail Share* Class A/C Retail Share* Class B Retail Share* 40.3% 39.0% 38.6% 38.0% 30.4% 31.2% 29.2% 25.9% 21.9% 20.0% 20.0% 17.4% 17.0% 18.2% 16.2% 13.9% 14.9% 14.6% 7.9% 5.3% 3.1% 2007 2008 2009 2010 2011 2012 2013 YTD * US Statistical Surveys, measured at
Slide 33: www.thorindustries.com
wh Tg pt Nad 9 ae " — INDUSTRIES Ky atin ias , » www.thorindustries.com