Thor Industries, Inc. · NYSE:THO
Thor Industries — Investor Presentation (March 2018)
34 slides from Thor Industries's investor presentation, Mar 7, 2018
Slide 1: Investor Presentation March 7, 2018
Investor Presentationmarch 7, 2018 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 3 Joint Venture
Slide 4: Table of Contents
Table of Contents Overview and Current Industry Conditions 5Second Quarter 2018 Update 16 Appendix: Financial & Market Data 23 4
Slide 5: Overview and Current Industry Conditions
5 Overview and Current Industry Conditions
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*Balance of organic growth and accretive acquisitionsMarket leader in a growing industry – Recreational Vehicle (RV) shipments grew 17.2% in calendar 2017 to a record lev
Slide 7: Solid Economic Fundamentals Support Continued RV Industry Growth
Solid Economic Fundamentals Support Continued RV Industry Growth 7 Continued Favorable Macro Environment High consumer confidenceFavorable general employment and wage trendsContinued gains in household wealthLow interest rate environmentWide credit availability for both wholesale and retailStable fu
Slide 8: Consumer Trends Support Continued RV Industry Growth
Consumer Trends Support Continued RV Industry Growth 8 The Opportunity: If an additional 1% of potential first-time buyers interested in new RVs enter the RV lifestyle, that represents the potential for an additional 166,000 units in an industry that recorded 504,599 units** in calendar 2017. ** Sou
Slide 9: Trends Driving Growth: Demographics
Trends Driving Growth: Demographics 9 +3.4 million new households have started camping since 2014 * Gen X and Millennials made up 72% of campers in 2016 *Younger campers looking for affordable recreation experiencesInterested in trying different accommodations, including RVs Latino, African American
Slide 10: Trends Driving Growth: Lifestyle
Trends Driving Growth: Lifestyle 10 Recreational sports$887 billion spent on “outdoor recreation” in 2016*Trend toward getting more active and leading a healthier lifestyleGrowing use of RVs with youth sports leagues and tournaments CampingIn 2016, 37.1 million U.S. households camped at least once d
Slide 11: Trends Driving Growth: Affordability, Flexibility & Convenience
Trends Driving Growth: Affordability, Flexibility & Convenience 11 * Source: RVIA 2016 Industry Profile Benefits of RV TravelRV vacations offer greater savings over those taken using a personal car or airline, staying in a hotel or rental home, and eating in restaurants, regardless of duration, dist
Slide 12: Health of the RV Channel
Health of the RV Channel 12 Dealer Inventory Levels:Overall dealer inventory levels remain healthyTotal days in inventory at dealers are appropriate for current industry conditionsAverage age of RV inventory on dealer lots remains lowUsed inventory levels remain low, supporting trade-in values and d
Slide 13: Opportunities for Continued Growth – Product Innovations & Manufacturing
Opportunities for Continued Growth – Product Innovations & Manufacturing 13 Growth Levers Continuous investments in new products, features and floorplansShort product development cycle enables us to introduce new models every year, reinforcing the consumer trade-in cycleOrganic growth through contin
Slide 14: Opportunities for Continued Growth – Further Market Penetration
Opportunities for Continued Growth – Further Market Penetration 14 Growth Levers Expanded Thor marketing effortsMarketing to younger families and more diverse consumer segmentsGo Your Own Way™ Campaign launched September 2017Geographic expansion Recent new and expanded campuses added over the last t
Slide 15: Opportunities for Continued Growth – Investing in Adjacent RV Categories
Opportunities for Continued Growth –Investing in Adjacent RV Categories 15 Growth Levers Formed joint venture (TH2) with leading tourism and RV company, Tourism Holdings Ltd., (thl) – dedicated to providing benefits of digital connectivity to the worldwide RV marketplace Objective to deliver an indu
Slide 16: Second Quarter 2018 Update
16 Second Quarter 2018 Update
Slide 17: Second Quarter Key Messages
Second Quarter Key Messages 17 Strategic Execution Robust Consumer Demand Outlook All-time record 2nd quarter revenues and profit Double-digit sales growth in both segments – Towables (+26.9%) and Motorized (+17.9%)Execution of our strategic planCapacity expansionsQ2 year-over-year margin enhancemen
Slide 18: Second Quarter 2018 Results Up Double Digits
Second Quarter 2018 Results Up Double Digits 18 All-time record 2nd quarter sales and net income Gross profit up, primarily attributable to the increase in sales, and also operating efficiencies attained in the past year, primarily by JaycoSecond quarter diluted EPS of $1.51, up 22.8%. As a result o
Slide 19: Second Quarter 2018 – Towables
Second Quarter 2018 – Towables 19 Towable Segment Continued mix shift toward more affordably-priced travel trailers and fifth wheelsMarket share continued to improve through December 2017, with U.S. Towable share increasing from 48.0% to 48.5%, while Canadian Towable share fell slightly from 55.4% t
Slide 20: Second Quarter 2018 – Motorized
Second Quarter 2018 - Motorized 20 Motorized Segment Continued mix shift toward more moderately-priced Class C and gas Class A motorhomesMarket share momentum continued through December 2017, with U.S. Class A and C market share increasing from 37.8% to 41.2% and Canadian Class A and C market share
Slide 21: Key Stats – 2Q
Key Stats – 2Q(As of or For the Quarters Ended January 31) 21 +24.1% Income Statement Balance Sheet & Working Capital 40 basis point increase * For the fiscal years ended July 31
Slide 22: Historical Key Stats
Historical Key Stats (As of or For the Fiscal Years Ended July 31) 22 5-year CAGR: 22.4% Income Statement Balance Sheet & Cash Flow 5-year CAGR: 28.7%
Slide 23: Appendix: Financial & Market Data
Appendix: Financial & Market Data 23
Slide 24: Thor's RV Product Range
Thor’s RV Product Range 24 Towable Segment Motorized Segment Class Bvan motorhomes;retail price $150,000 - $250,000 Class Cliving area built on van or pickup chassis;retail price $50,000 - $250,000 Class Afully enclosed, bus-style motorhome; retail price $70,000 - $700,000 Travel Trailershitch to th
Slide 25: Seasonal Shipment Patterns
Seasonal Shipment Patterns 25 ** Source: Statistical Surveys, Inc., U.S. and Canada** Source: Recreation Vehicle Industry Association Dec-17
Slide 26: RV Wholesale Market Trends
RV Wholesale Market Trends (Units 000s) 26 Historical Data: Recreation Vehicle Industry Association (RVIA)(e) Calendar year 2018 represents most recent RVIA estimate as of Winter RV Roadsigns, published in December 2017 5-year CAGR: 12.0%
Slide 27: RV Wholesale Market Towable Trends
RV Wholesale Market Towable Trends (Units 000s) 27 Historical Data: Recreation Vehicle Industry Association (RVIA)(e) Calendar year 2018 represents most recent RVIA estimate as of Winter RV Roadsigns, published in December 2017
Slide 28: RV Wholesale Market Motorized Trends
RV Wholesale Market Motorized Trends (Units 000s) 28 Historical Data: Recreation Vehicle Industry Association (RVIA)(e) Calendar year 2018 represents most recent RVIA estimate as of Winter RV Roadsigns, published in December 2017
Slide 29: Consumer Confidence
Consumer Confidence 29 Historical Data: The Conference Board, Consumer Confidence Survey ®
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 valueWholesale units typically outpace retail in the early part of the calendar year; historically sales become more balanced as we re
Slide 31: Thor Dealer Inventory
Thor Dealer Inventory Dealers optimistic about calendar 2018 demand, with inventories at appropriate levels to support the spring selling seasonDealers indicating their strategic preference to carry more inventory to satisfy demand on a timely basisLenders are comfortable with current dealer invento
Slide 32: RV Industry Retail Market Share
RV Industry Retail Market Share 32 ** Source: Statistical Surveys, Inc., U.S. and Canada** Thor adjusted to include historical results of Jayco, Livin’ Lite, Bison Coach, K-Z, Inc., Cruiser RV, and DRV Luxury Suites for all periods presented ** Forest River includes Palomino, Coachmen, Prime Time, S
Slide 33: Thor RV Retail Market Share Trend
Thor RV Retail Market Share Trend (Units) 33 * Source: Statistical Surveys Inc., U.S. and Canada, calendar years 2012-17. Historical results adjusted to include results of Jayco, Livin’ Lite, Bison Coach, K-Z, Inc., Cruiser RV and DRV Luxury Suites for all periods presented. Note: Towable market sha
Slide 34: www.thorindustries.com
i i www.thorindustries.com Fv