THOR Industries, Inc. · NYSE:THO
THOR Industries — Q1 FY2023 Earnings Presentation
20 slides from THOR Industries's earnings presentation, December 2022
Slide 1: First Quarter of Fiscal 2023 Financial Results
FIRST QUARTER OF FISCAL 2023 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: First Quarter Fiscal 2023 Highlights
FIRST QUARTER FISCAL 2023 HIGHLIGHTS Resilient Financial Performance Continues in a Shifting Market Net sales of $3.1 billion in 1Q23, down from a fiscal first quarter record of $4.0 billion in the prior-year period ▪ Towable production continued to be actively managed to align to retail demand ▪ Co
Slide 4: First Quarter of Fiscal Year 2023
FIRST QUARTER OF FISCAL YEAR 2023 NORTH AMERICAN INDEPENDENT DEALER INVENTORY OF THOR PRODUCTS 131,500 122,300 Net Sales 101,500 $3.1 billion 82,400 (1) (21.5)% 60,200 (2) (2) 10/31/18 10/31/19 10/31/20 10/31/21 10/31/22 NA Motorized Inventory Units $1.12 bn (2) Includes units of Tiffin products sub
Slide 5: North American Towable Segment
($ millions) NORTH AMERICAN NET SALES ò TOWABLE SEGMENT Decreased 41.2%* driven by a $2,240.8 decrease in unit shipments, partially offset by net selling price increases and $1,317.8 First Quarter of a change in product mix Fiscal 2023 1QFY22 1QFY23 NORTH AMERICAN TOWABLE KEY DRIVERS GROSS PROFIT MA
Slide 6: North American Motorized Segment
($ millions) NORTH AMERICAN NET SALES ñ MOTORIZED SEGMENT Increased 21.5%* driven primarily by $1,123.5 an increase in unit shipments due to $925.0 continuing independent dealer First Quarter of restocking of certain motorized Fiscal 2023 products, and net selling price increases, partially offset b
Slide 7: European Segment
($ millions) NET SALES ò EUROPEAN SEGMENT Decreased 20.3%* driven by a 19.3% decrease in unit shipments due $633.0 primarily to continuing chassis supply $504.3 First Quarter of constraints, as the decrease due to the Fiscal 2023 foreign exchange rate decline of 14.4% was essentially offset by net s
Slide 8: Strong Financial Position
STRONG FINANCIAL POSITION (1) OPERATING CASH FLOW TOTAL LONG-TERM DEBT ($ millions) ABL Other ($ millions) $85.0 $70.9 $94.0 TLB Total Long- Unsecured Notes Term Debt $1,099.2 $500.0 $1,755.1 $41.8 1QFY22 1QFY23 Capital Expenditures $43.2 $55.9 (2) (2) LIQUIDITY ($ millions) SELECTED FINANCIAL RATIO
Slide 9: Capital Management
CAPITAL MANAGEMENT CAPITAL ALLOCATION PRIORITIES Invest in THOR’s business ▪ Capex spending of $55.9 million in 1Q23 Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.45 ▪ Represents 13th consecutive year of dividend increases Reduce the Company's debt obligations ▪ Reduced debt with
Slide 10: Fast + Flexible + Focused Business Model
FAST + FLEXIBLE + FOCUSED BUSINESS MODEL Positions THOR to Outperform the Industry in Fiscal 2023 FAST & FLEXIBLE LONG-TERM FOCUS Variable Cost Structure Strategic Growth Opportunities ü Labor and variable costs managed to production § Identify and invest in high ROI capital projects levels § Accele
Slide 11: Key Assumptions: Full-Year Fiscal 2023 Guidance
FULL-YEAR FISCAL KEY ASSUMPTIONS 2023 GUIDANCE $11.5 – $12.5B ▪ North American wholesale shipments aligned with the NET SALES RVIA’s December 2022 forecasted shipment range for calendar 2023 (between 379,200 and 403,600 units) 14.2% – 14.9% ▪ European shipment volumes anticipated to remain GROSS PRO
Slide 12: 1Q 2023 Key Takeaways
1Q 2023 KEY TAKEAWAYS THOR continues to deliver strong financial results while adjusting to dynamic market conditions Variable cost structure and experienced management teams to help maintain sustainable gross margin performance through market volatility Fast, flexible and focused business model to
Slide 13: Appendix
Go Everywhere. Stay Anywhere” 13
Slide 14: 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 $16.3B FY22 NET SALES • Customer-centric NET SALES BY SE
Slide 15: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP NORTH AMERICAN EUROPEAN Travel Trailers Fifth Wheels Class A Class C Class B All RV Segments CATEGORY 20.7% MARKET 41.8% 38.1% (1) 43.2% SHARE 54.4% 52.4% MARKET POSITION (1) #1 #1 #1 #1 #1 #2 (1) As of calendar YTD September 30, 2022. Data reported by Statistical Surveys,
Slide 16: RV Industry Overview: North America
RV INDUSTRY OVERVIEW North America RV WHOLESALE MARKET TRENDS (UNITS 000's) YTD Shipments (Units) 5-year CAGR (2016 - 2021): 6.9% Sept. 2022 Sept. 2021 Unit Change % Change 415,594 452,637 (37,043) (8.2)% 600.2 504.6 483.7 495.3 430.7 406.1 430.4 370.0 384.5 390.4 356.7 374.2 391.4 321.2 320.9 353.5
Slide 17: RV Industry Overview: Europe
RV INDUSTRY OVERVIEW Europe (1) EUROPEAN INDUSTRY UNIT REGISTRATIONS BY COUNTRY Caravans Motorcaravans Total Country CYTD September 30, % CYTD September 30, % CYTD September 30, % 2022 2021 Change 2022 2021 Change 2022 2021 Change Germany 21,110 21,705 (2.7) % 56,901 68,540 (17.0) % 78,011 90,245 (1
Slide 18: Consumer Trends Support Long-Term RV Industry Growth
CONSUMER TRENDS SUPPORT LONG-TERM RV INDUSTRY GROWTH Supported by Real Data from RVers increase in RV Interest in the RV lifestyle ~50% related website traffic when continues to exceed pre- comparing October pandemic levels 2022 to October (1) 2019 of current towable RV utilization remains ~80% owne
Slide 19: Quarterly Adjusted EBITDA Reconciliation
QUARTERLY ADJUSTED EBITDA RECONCILIATION ($ in thousands) TTM Fiscal Quarters 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 TTM Net Income $244,803 $ 265,635 $ 346,018 $ 281,787 $ 137,423 $1,030,863 Add Back: Interest Expense, Net 20,720 24,507 22,289 22,576 22,807 92,179 Income Taxes 68,039 80,618 116,389 56,
Slide 20: Investor Relations Contact
INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294-7724 www.thorindustries.com