Slide 1: Drew Industries Incorporated
EXHIBIT 99.1 Drew Industries Incorporated (NYSE: DW) A Leading National Supplier of a Wide Variety of Components for RVs and Manufactured Homes
Slide 2: Forward-Looking Statements
° Forward-Looking Statements This presentation contains certain “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive po
Slide 3: Overview
SECTION | Overview
Slide 4: Drew's Products - Components for RVs and Manufactured Homes
Drew's Products - Components for RVs and Manufactured Homes $573 Million of Net Sales for the12 Months Ended December 31, 2010 RV Furniture and ; Bath Products: Mattresses: MH Chassisand $20 million $49 million Chassis hon \ $25 million $4 million —~ RV Chassis, Slide-outs and Other Chassis Parts: $
Slide 5: Drew's Segments — LTM 12/2010
Drew's Segments — LTM 12/2010 Net Sales - $573 million MH = $96 million 17% RV = $477 million 83% 90+% for towable RVs Segment Operating Profit - $54 million
Slide 6: Financial Performance
Financial Performance sales Sales and EBITDA (in mitions) er == RV Segment sales == MH Segment sales == EBITDA sim $750 $729 2001-2002, 2003-2004 «2005-2006. 2007S 2008S 2009S (2010 18 (1) EBITDA is operating profit plus depreciation, amortization and goodwill impairment (see page 34).
Slide 7: Industries
SECTION II Industries
Slide 8: RV Market
RV Market TOWABLE RVS (90+% of Drew's RV Segment revenues) Co) sae Travel trailer Fitth-wheel traveltrailer ~@ 90% of industry 2010 unit sales Ph ® 69% of 2009 wholesale dollar 4 ae sales, or $2.8 billion ® Retail cost $4,000 to $100,000 per unit. Average about $24,000 Travel trailer with Sport util
Slide 9: How RVs Are Used
How RVs Are Used © More economical family vacations > Typical RV family vacation is less expensive ® Shift in U.S. culture toward more RV-related activities > College and NFL football games _ > NASCAR events > More active, shorter, “greener”, & family oriented vacations
Slide 10: RVs - Industry Wholesale Shipments
RVs - Industry Wholesale Shipments Industry 90*% of Drew's RV product sales are for Travel Trailers and 5" Wheel RVs prew’s Units Sales (Units in thousands, Sales in millions) 500 $500 ravel Trailers & 5% Wheat Other Towables 1 Motorhomes MH Drow’s RV Sales 400 $400 300 | $300 200 $200 ‘ot 9 $100 :
Slide 11: Recent RV Industry Trends
Recent RV Industry Trends Units Travel Trailers and 5" Wheel RVs, Drew’s primary RV market 300,000 All data includes both US and Canada. 275,000 mam Wholesale mmm Retail 250,000 226,387 228,000 199,200 200.000 } 485,109 186,010 175,000 164,254 150,000 138,300) 125,000 100,000 75,000 50,000 25,000 0
Slide 12: Manufactured Housing (MH) Market
Manufactured Housing (MH) Market ® Cost per sq. ft. is $41 for MH vs. $84 for site-built homes Average retail price of $63,100 for a 1,530 sq. ft. MH 9 million manufactured homes across the U.S. Improved quality, appearance and safety Studies have shown that MHs built since 1995 sustain no more dama
Slide 13: MH Industry Production
MH Industry Production Industry Drew's Units (Units in thousands, Dollars in millions) Sales 400 m= Multi-Sections === Single-Section === Drew's MH Sales $250 SPE Pee SEE EeEDB There are no industry forecasts for the manufactured housing industry. 12.
Slide 14: MH: Favorable Factors
MH: Favorable Factors INDUSTRY: tO} Demand — Demand for quality, affordable housing is likely to increase — Baby boomers retiring in increasing numbers — Dealer and manufacturer inventory levels are reasonable ® Availability of financing is still an issue DREW: @® Drew remains profitable in MH Segme
Slide 15: Strategy
SECTION Ill Strategy
Slide 16: Business Strategy
Business Strategy Ze profitability and return on assets thr = Strategic acquisitions = New product introductions = Market share growth = Operational efficiencies © This strategy accomplished through = Outstanding customer service Motivating management through strong profit incentives Low cost manufa
Slide 17: Acquisition Criteria
Acquisition Criteria Drew is a disciplined and patient acquirer Gain market share or add products from other suppliers through asset acquisitions Complimentary to our core RV (including specialty trailers) and MH markets Seek products or technologies that we can expand through our nationwide custome
Slide 18: New Product Introductions
New Product Introductions Acquire Introduce Coacu Step: Began RVLOCK remote Began Adding electric steps Production of locking product Production of for motorhomes aby coor axles for form towable RVs Acquire HOME- y Acquire ee ScHwint : , furniture for RVs Adding wall-slide inNortiweat mechanism and
Slide 19: What Drew Has Done - Acquisitions and Growth
What Drew Has Done - Acquisitions and Growth New Market New Product Potential 2008 — RV Entry Doors $ 25 million 2008/2011 — RV Furniture and Mattresses $ 150 million 2009 — QuickBite™ Coupler $ 3-5 million 2009 — Manufactured Housing ("MH") Entry Doors $ 25 million 2009 — Focus on MH Replacement Wi
Slide 20: Content Per New Towable RV
Content Per New Towable RV - 90+% of RV Segment sales are for Travel Trailers and Fifth-Wheel RVs - 100% market share in existing products would yield $4,500 to $5,000 per Towable RV - Growth in RV “features” drives content increases RV Segment 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 opera
Slide 21: Content Per New Manufactured Home
Content Per New Manufactured Home - 100% market share in existing products would yield $3,600 to $4,000 per home - Affordability of the homes constrains content growth $1,666 $1,450 $1,430 2001 2002 2003 2004 2005 2006 2007 + 2008 + 2009 «= 2010 MH Segment operating profit margin 10.4% 10.7% 10.5% 1
Slide 22: What Drew Has Done - Cost Reductions
What Drew Has Done - Cost Reductions Consolidated more than 35 production facilities into other existing facilities since 2006, improving operating efficiencies ® Cautiously added back $2 million of annualized fixed costs as demand improved. ® These facility consolida ions, along with reductions in
Slide 23: What Drew Has Done - Strengthened Balance Sheet
What Drew Has Done - Strengthened Balance Sheet Cash and (Sin millions) Debt Investments Net Cash 12/31/08! $9 $9 a2 12/31/09 $- $ 65 $ 65 12/31/10 $- $440) $ 44i (1) The Company completed four acquisitions in 2010 which utilized $22 million in cash. in addition, on December 28, 2010, a special divi
Slide 24: Operating Results
SECTION IV Operating Results
Slide 25: Operating Results
Operating Results Year Ended December 31, FINANCIAL PERFORMANCE Adjusted Adjusted 2010 (Sin millions, except EPS) 2007 2008) ~——-200912) 2010 vs. Adj. 2009 Net Sales") $ 668.6)$ 5105|$ 3978|/$ 5728 AA Operating Profit (Loss) $ 660|$ 278/$ 184) $ 45.4 147% % of Sales 99% 5.4% 46% 79% Net Income (Loss
Slide 26: Results By Segment
Results By Segment Year Ended December 31, FINANCIAL PERFORMANCE Adjusted Adjusted 2010 (in millions) 2007 2008 (2) 2009 @) 2010 vs. Adj. 2009 Net Sales!”): RV Segment | $ 491.8 |$ 368.1 |$ 3125 ]$ 477.2 53% MHSegment | $ 1768 |$ 1424 /$ 853 |$ 95.6 12% Operating Profit: RVSegment |$ 60.1/$ 254 /$ 2
Slide 27: Operating Results
Operating Results Three Months Ended December 31, FINANCIAL PERFORMANCE Adjusted (Sin millions, except EPS) 2009) 2010 Change Net Sales $ 104.6) $ 106.2 2% Operating Profit”! $ 76) $ 46 -39% % of Sales 7.2% 4.3% Net Income $ 44) $ 3.1 -29% Diluted EPS $ 0.20| $ 0.14 -29% (1) Refer to page 37 for adj
Slide 28: Results By Segment
Results By Segment Three Months Ended December 31, RINANGIal PERFORMANCE Adjusted ($ in millions) 20091) 2010 Change Net Sales: RV Segment $ 844) $ 865 2% MH Segment $ 20.2) $ 19.7 -2% Operating Profit: RV Segment $ 7.5| $ 6.4 -15% MH Segment $ 1.7| $ L3 -21% Operating Profit as a Percentage of Net
Slide 29: Balance Sheet
Balance Sheet FINANCIAL PERFORMANCE (Sin millions) 12/31/08 12/31/09 12/31/10 Total Assets $ 311 |$ 288 |$ 307 Total Debt $ 9 |$ - |$ i Cash & Investments $ 9 |$ 65 |$ 44 Stockholders’ Equity $ 259 |$ 244 |$ 243 RATIOS Days Sales in AIR” 15 days | 14 days | 12 days Inventory Turns”) 4.] turns | 4.8
Slide 30: Financial Strength
Financial Strength FINANCIAL PERFORMANCE 12/31/07 12/31/08 12/31/09 12/31/10 Return on Equity 17% 6%12) 2%") 11% Return on Assets 12% 4% (2) 2%") 9% Total Debt to Equity 0.1 0.0 0.0 0.0 Total Debt to EBITDA") 0.3 0.2 0.0 0.0 (1) EBITDA is operating profit plus depreciation, amortization and goodwill
Slide 31: The Future
The Future Increasing RV Content RV recovery from recession Demographic tailwind Exploring related industries © © © © © Affordable housing
Slide 32: Stock Price History
Stock Price History = Drew has 22 million shares outstanding and a market capitalization of approximately $510 million as of February 28, 2011 $6 2000 2001 2002 2003 2004 2005 2006 2007 10/5/07 2008 3/9/09 2009 2010 2/28/11 (December 31, unless noted) a1
Slide 33: Analyst Coverage
Analyst Coverage Avondale Partners, LLC Bret Jordan — (617) 314-0487 CJS Securities Torin Eastburn — (914) 287-7600 Janney Montgomery Scott LLC Liam D. Burke — (202) 955-4305 Sidoti & Company, LLC Scott Stember - (212) 453-7017 Thompson Research Group Kathryn Thompson — (615) 891-6206 -32-
Slide 34: Thank you!
Thank you! For more information contact: Fredric M. Zinn President and CEO 914-428-9098 fred@drewindustries.com Joseph S. Giordano III CFO & Treasurer 914-428-9098 joe@drewindustries.com OR VISIT OUR WEBSITE: www.drewindustries.com
Slide 35: Reconciliation of Operating Profit to EBITDA
Reconciliation of Operating Profit to EBITDA FINANCIAL PERFORMANCE (in millions) 2001 2002-2003 = 2004— 2005-2008 += 2007, = 200820092010 ey $ 23/3 22|/3 343|/$ 440|$ 577|/$ 553|/$ 4660/3 199] $ (956) |$ 452 pepreecien $84 73 78/$ 931$ 120 18.7 17.6 wa}$ 185 | $ 17.4 a $ - . ales -|$ = s = 6.5 | $ 4
Slide 36: Reconciliation of Adjusted Results to Actual
Reconciliation of Adjusted Results to Actual ee: (Sin millions) Year Ended 12/31/08 Year Ended 12/31/07 ‘Actual | Adjust ‘Aetual | Adjust() | Adjusted a [sos [s = [sav] Selling, General & Seirinerainie Ep erees 7 a Operating Profit (Loss) 80 % of Sales. ae (1) Excludes certain “extra expenses” recor
Slide 37: Reconciliation of Segment Adjusted Operating Profit to Actual
Reconciliation of Segment Adjusted Operating Profit to ACTUAL fic: reconmance (Sin millions) Year Ended 12/31/08 Year Ended 12/31/09 ‘Actual | Adjust) | Adjusted ‘Actual | Adjust | Adjusted js o2 [so [sa | (1) Excludes certain “extra expenses” recorded by the Company during 2009 and 2008 due to the
Slide 38: Reconciliation of Adjusted Results to Actual
Reconciliation of Adjusted Results to Actual ee: Three Months Ended 12/31/09 Actual | Adjust ‘Achal selling, General & ‘Administrative Expenses a a cores Operating Profit 3 080% of Sales ae ee e [ous [sons oo|s om] Twelve Months Ended 12/31/09 (Sin millions) (1) Excludes certain “extra expenses” rec
Slide 39: Reconciliation of Segment Adjusted Operating Profit to Actual
Reconciliation of Segment Adjusted Operating Profit to ACTUAL fic: reconmance (Sin millions) Three Months Ended 12/31/07?) Twelve Months Ended 12/31/0970) ‘Actual_|| Adjust Operating Profit (Loss): MH Segment (1) Excludes certain “extra expenses” recorded by the Company during 2009 due to the unprec
Slide 40: Reconciliation of Segment Results to Consolidated
Reconciliation of Segment Results to Consolidated FINANCIAL PERFORMANCE (S in millions) 12 Months Ended Net Sales: RV Segment $ 491.8 )$ 368.1 |$ 3125 |} $ 477.2 MH Segment 176.8 142.4 85.3 95.6 Total Net Sales $ 668.6 |$ 5105 |$ 3978 |$ 5728 Operating Profit: RV Segment $ 60.1 )$ 24.6 | $ 15.7 | $