Thor Industries, Inc. · NYSE:THO
Thor Industries — Investor Day (June 2022)
99 slides from Thor Industries's investor day presentation, Jun 29, 2022
Slide 1: Welcome to Investor Day 2022
Welcome to Investor Day 2022 June 27, 2022 Jackson Center, Ohio
Slide 2: Overview
2 THOR Investor Day 2022 Mark Trinske Vice President of Investor Relations Overview
Slide 3: Agenda
3 THOR Investor Day 2022 Agenda 9:00 am Welcome Peter Orthwein ,THOR Industries Co - founder & Chairman Emeritus Opening Remarks Bob Martin , Chief Executive Officer THOR’s People Journey Ken Julian, Senior Vice President of Administration & Human Resources Who We Are and How We’ve Performed Todd Wo
Slide 4: Forward Looking Statements
Forward Looking Statements 4 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 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange
Slide 5: Welcome
Welcome Peter Orthwein THOR Co - founder and Chairman Emeritus THOR Investor Day 2022 draft v22 - 6.13.22
Slide 6: History of THOR
6 THOR Investor Day 2022 History of THOR
Slide 7: Opening Remarks
Opening Remarks Bob Martin President and Chief Executive Officer THOR Investor Day 2022 draft v22 - 6.13.22
Slide 8: Welcome
8 THOR Investor Day 2022 Welcome NEW MANUFACTURING FACILITY NEW STATE - OF - THE - ART AIRSTREAM FACILITY AIRSTREAM HERITAGE CENTER
Slide 9: Leadership Team with Extensive RV Industry Experience
Leadership Team with Extensive RV Industry Experience THOR Investor Day 2022 9 Bob Martin Colleen Zuhl Todd Woelfer Ken Julian Trevor Gasper President & Chief Senior Vice President & Senior Vice President & Senior Vice President of Senior Vice President, General Executive Officer Chief Financial Off
Slide 10: Operating Leadership and Company Presidents
Matt Zimmerman North American RV Group Manager Years with THOR: 21 Years Industry Experience: 25 Senior Operations Management Long - term History of Successfully Operating Through Up and Down Business Cycles THOR Investor Day 2022 10 Troy James Senior Vice President of International Business Operati
Slide 11: Our Forecast History: 2025 Financial Goals and Actual Performance
NET SALES $ 14.0 B $ GROSS MARGIN 16.0 % CUMULATIVE NET CASH FROM OPERATIONS (FY 20 – FY 25) $ 3.0 B >$ Our Forecast History: 2025 Financial Goals and Actual Performance THOR Investor Day 2022 11 2025 Goals ( Announced in Oct. 2019 ) (1) TTM as of April 30, 2022 (2) Cumulative FY 20 – April 30, 2022
Slide 12: Our Vision: 5-Year Performance Projections
NET SALES $ 20 B SUSTAINABLE GROSS MARGIN 17 % EPS $ 27.00 CUMULATIVE NET CASH FROM OPERATIONS (FY 23 – FY 27) $ 6 B + REDUCED GREENHOUSE GAS (GHG) EMISSIONS by 40 % Our Vision: 5 - Year Performance Projections THOR Investor Day 2022 12 By the end of Fiscal Year 2027, THOR projects: At THOR, we ha
Slide 13: THOR's People Journey
THOR’s People Journey Ken Julian Senior Vice President of Administration and Human Resources 13 THOR Investor Day 2022 13
Slide 14: Shareholder Value Through Our People Journey
THOR Investor Day 2022 Shareholder Value Through Our People Journey Our Purpose and Commitments People Focused Open and Honest Feedback EMPLOYER OF CHOICE Living Our Core Values 14
Slide 15: Our People Journey: The Pathway to be the Employer of Choice
SAFE/COMPLIANT WORK ENVIRONMENT WELLNESS/ WELL - BEING INITIATIVES PEOPLE DEVELOPMENT INCLUSIVE WORKPLACE DIVERSE AND EQUITABLE Our People Journey… The Pathway to be the Employer of Choice THOR Investor Day 2022 15
Slide 16: Who We Are and How We've Performed
Who We Are and How We’ve Performed Todd Woelfer Senior Vice President and Chief Operating Officer Colleen Zuhl Senior Vice President and Chief Financial Officer 16 THOR Investor Day 2022
Slide 17: Who We Are
WHO WE ARE EXPERIENCED GROWTH - ORIENTED TEAM LEADING BRANDS CASH GENERATION FOCUS CUSTOMER - CENTRIC INNOVATION 42 YEARS OF UNINTERRUPTED PROFITABILITY $304 $328 $378 $434 $398 FY17 FY18 FY19 FY20 FY21 FREE CASH FLOW (1) ($ millions) Strong Cash Generation and ROIC = Long - Term Shareholder Value F
Slide 18: THOR Overview: The Global RV Industry Leader
THOR Overview: The Global RV Industry Leader THOR Investor Day 2022 18 68.7% 16.1% 9.7% 5.2% 0.3% United States Germany Other Europe Canada Other NET SALES BY COUNTRY (1) 53.4% 23.5% 19.0% 4.1% North American Towables North American Motorized European Other NET SALES BY SEGMENT (2) OUR ESSENCE Under
Slide 19: Leadership Positions Within Each of Our Product Categories
Leadership Positions Within Each of Our Product Categories CATEGORY N O R T H A M E R I C A N E U R O P E A N All RV Segments Travel Trailers Fifth Wheels Class A Class C Class B MARKET SHARE (1) 40.4% 43.6% 50.9% 54.2% 39.9% 18.0% MARKET POSITION (1) # 1 # 1 # 1 # 1 # 1 # 2 (1) As of calendar YTD A
Slide 20: Market Leadership Established by Key Competitive Advantages
Market Leadership Position Established by Key Competitive Advantages CONSUMER - CENTRIC INNOVATION FOCUS UNRIVALED SCALE EXPERIENCED & PROVEN MANAGEMENT TEAM FAST, FLEXIBLE & FOCUSED DECENTRALIZED BUSINESS PEOPLE & COMMUNITY STRONG BALANCE SHEET 20 THOR Investor Day 2022
Slide 21: Fast + Flexible + Focused
Fast + Flexible + Focused Our decentralized business model and highly variable cost structure = 40+ years of profitability and strong cash flow from operations THOR Investor Day 2022 21 Our highly variable cost structure allowed us to maintain strong liquidity and positive cash flow from operations
Slide 22: THOR's History of Strong Financial Performance
THOR’s History of Strong Financial Performance THOR Investor Day 2022 22 $0 $200 $400 $600 $800 $1,000 $1,200 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 TTM FY22 (2) Net income attributable to THOR
Slide 23: Management Team has Delivered Outstanding Growth
Management Team has Delivered Outstanding Growth 23 THOR Investor Day 2022 FY 2012 (1) FY 2021 CHANGE 9 - YEAR CAGR (2012 - 2021) Net Sales $ 3.1 B $ 12.3 B + 299 % 16.6 % Gross Profit $ $ 356.8 M $ 1,895.0 M +$ 1,538.2 M 20.4 % Gross Margin % 11.6 % 15.4 % + 382 bps Net Income attributable to THOR
Slide 24: Successful History of Acquisitions
Successful History of Acquisitions NBT PERFORMANCE SINCE PRE - ACQUISITION (1) ($ millions) 4.8% 13.8% FY 14 FY 21 KZ 2014 2015 2016 2018 2019 2020 2021 Sales % Increase 154.7% 53.3% 131.0% 25.0% 18.2% 5.2% 8.7% 20.3% FY 15 FY 21 Postle 6.6% Pre - acquisition period Cruiser/DRV 15.6% FY 15 FY 21 5.5
Slide 25: Favorable Debt Profile
2.6x 1.9x 1.0x 0.9x July 31, 2019 July 31, 2020 July 31, 2021 TTM as of April 30, 2022 TOTAL NET DEBT LEVERAGE (3) TLB $1,347 Unsecured Notes $500 ABL Other $100 $82 Total Debt $2,029 TOTAL DEBT (1) ($ millions) Favorable Debt Profile THOR Investor Day 2022 25 FAVORABLE DEBT MATURITY PROFILE • Term
Slide 26: Excellent Liquidity with Strong Cash Flow from Operations
Cash on hand $329.3 Available credit under ABL $870.0 Total Liquidity $1,199.3 LIQUIDITY (1) ($ millions) THOR EMPLOYS A CONSERVATIVE BALANCE SHEET STRATEGY FOCUSED ON: • Strong operating cash flow generation • Top tier accounts receivable aging • A/R generally exceeds A/P – provides cash flow in a
Slide 27: THOR's Strategic Approach to Leveraging Our Scale
THOR’s Strategic Approach to Leveraging Our Scale SOURCING VENDOR RELATIONS DEALER RELATIONS PRODUCT DEVELOPMENT & INNOVATION BEST - IN - CLASS PROCESSES 27 THOR Investor Day 2022
Slide 28: Innovation Focus has Always been Core to THOR's Success
Innovation Focus has Always been Core to THOR’s Success • Business Model Innovation • Roadpass Digital • Data Strategy • Strategic Partnerships 35 of these have been issued since 2020 LIVE PATENTS 97% of these have been filed since 2017 28 THOR Investor Day 2022 121 200 PENDING PATENT APPLICATIONS
Slide 29: Leading the RV Industry in our ESG Initiatives
• In 2020, THOR became a signatory to the “Business Ambition for 1.5’C” with a commitment to achieve net - neutral carbon emissions on or before 2050 and has since pledged to reduce its carbon emissions by 50% on or before 2030 • In Fiscal Year 2021, EHG became the first major RV OEM to achieve carb
Slide 30: Key Highlights of THOR's ESG Leadership
Key Highlights of THOR’s ESG Leadership Significant investment in ESG - focused initiatives including: • Solar power initiatives in both products and operations • Electrification of products and operations • Alternatives to gas - powered generators • Comprehensive studies in product weight reduction
Slide 31: Who We Are Recap
Who We Are Recap RV Industry Leader Driven to Expand Its Leadership Position Over the Next Five Years 1 2 3 4 5 Experienced leadership team that has delivered growth oriented results Business model that has prospered through all market conditions 31 THOR Investor Day 2022 Strong cash flow generation
Slide 32: THOR's Strategic Framework to Drive Long-Term Growth
THOR’s Strategic Framework to Drive Long - Term Growth Todd Woelfer Senior Vice President and Chief Operating Officer Colleen Zuhl Senior Vice President and Chief Financial Officer 32 THOR Investor Day 2022
Slide 33: Our Strategic North Star
Our Strategic North Star 33 THOR Investor Day 2022 Our strategy will lean into our scale as we invest in opportunities to grow our earnings, drive important initiatives including ESG and DE&I, and create true competitive advantage in a changing world. Our strategy will thereby enable us to continue
Slide 34: Maximizing Shareholder Value through Disciplined Capital Allocation
Maximizing Shareholder Value through Disciplined Capital Allocation A balanced approach to capital allocation SHAREHOLDER DISTRIBUTIONS • Dividends • Share Repurchases DEBT PAYMENTS SUPPORT OPERATIONS ACQUISITIONS AND GROWTH OPPORTUNITIES LIQUIDITY • We will continue to actively and prudently manage
Slide 35: Enterprise-wide Focus on Operational Excellence
Enterprise - wide Focus on Operational Excellence Product Quality Production Capacity Automation Employee Retention Brand Quality Focus areas to drive best - in - class dealer and user experience 35 THOR Investor Day 2022
Slide 36: THOR's Strategic Approach to Automation
THOR’s Strategic Approach to Automation • Improved Operating Efficiency • Improved Quality • Increased Capacity and Growth • Freeing Up Human Capital • Greater Customer Satisfaction • Improved Retention THOR’s automation strategy holistically looks at our global operations that could benefit from au
Slide 37: Significant Opportunity to Automate Assembly Process
Significant Opportunity to Automate Assembly Process Across Enterprise BACKGROUND High frequency of warranty claims associated with laminated walls Having a uniform process is critical to achieving consistency and preventing delamination Automation Case Study: Laminated Sidewall Line • Robotic milli
Slide 38: THOR's Strategic Approach to Innovation
THOR’s Strategic Approach to Innovation THOR is dedicated to leading the industry in innovation THOR is focused on innovation strategies that will deliver enterprise value THOR is making investments to deliver innovation with the right market timing 38 THOR Investor Day 2022
Slide 39: Strategic Vision to Establish North American Aftermarket and Service Business
GROWTH LEVERS • Airxcel acquisition adds aftermarket parts distribution service utilizing a rapid delivery system • Nationwide system of service centers of qualified RV technicians • Roadpass Digital platform Strategic Vision to Establish North American Aftermarket and Service Business Significant G
Slide 40: Digital a Key Piece to THOR's Strategic Trajectory
Digital a Key Piece to THOR’s Strategic Trajectory Now that Roadpass Digital has gained a critical mass of users, for THOR it will: • Create a pathway to monetization • Be a key driver of THOR’s aftermarket and service strategies • Provide the greatest source of data of RVers short of KOA • Offer ne
Slide 41: Investing to Attract and Retain RV Consumers
Investing to Attract and Retain RV Consumers Broad Consumer Reach Through Diversified Product Offering Increasing RV Lifestyle Participation Connected Technology Strategic Empowerment of Digital Assets 41 THOR Investor Day 2022
Slide 42: Guiding Principles to our TechNexus Partnership
Guiding Principles to our TechNexus Partnership 42 THOR Investor Day 2022 A portfolio of opportunities for THOR by building: • Teams of entrepreneurs that are focused on driving value and aligning strategic partnerships that matter to THOR… • With a diversified view that enables identification of ne
Slide 43: Unlocking Value in Data
Unlocking Value in Data THOR’s Data Value - Creation Opportunities Dealer Communications Personalized Customer Experience Product Development Innovation Digital Commerce Quality Internal Documents and Governance Productivity Enhancement THOR Has Entered Into an Arrangement With a Proven Data Analyti
Slide 44: A History and Commitment to Return Meaningful Capital to Shareholders
A History and Commitment to Return Meaningful Capital to Shareholders THOR Investor Day 2022 44 $0.15 $0.18 $0.23 $0.27 $0.30 $0.33 $0.37 $0.39 $0.40 $0.41 $0.43 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 QUARTERLY DIVIDENDS CONSECUTVE YEARS OF DIVIDEND HIKES 12 Planning to Return Over $
Slide 45: THOR's Strategic Approach to Acquisitions
THOR’s Strategic Approach to Acquisitions • Complementary product offering • New product and technology differentiation • Expand dealer base • Build additional scale • Strong operating companies with strong management teams Strategic Filters Additional Strategic Filters • Revenue diversification • G
Slide 46: Strategic Framework Recap
Strategic Framework Recap Key elements to strategic growth draft v22 - 6.13.22 1 2 3 4 5 Continuous margin improvement through operational excellence initiatives Proven and time - tested M&A strategy Centrally led innovation and data strategies focus on creating competitive advantages Aftermarket an
Slide 47: North American Operations Update
North American Operations Update Matt Zimmerman North American RV Group Manager 47 THOR Investor Day 2022
Slide 48: North American RV Industry Leader
16 COMPANIES 140+ BRANDS TOP 10 MODELS IN 28 RESPECTIVE PRODUCT CATEGORIES ~2,200 DEALERS >250 FACILITIES N O RTH A M ERI C A N T O W A B LE North American RV Industry Leader THOR Investor Day 2022 48 3.9% $ 8.9 B FY 2021 NET SALES (1) In which the Company participates N O RTH A M ERI C A N M O T O
Slide 49: THOR's Progressive Decentralized Model
THOR’s Progressive Decentralized Model Centralized guidance focused on: • Disciplined production • Distribution model • Variable cost structure • Best practices 49 THOR Investor Day 2022
Slide 50: Strategic Priorities – North America
Strategic Priorities – North America INDUSTRY - LEADING PRODUCT OPERATIONAL EXCELLENCE QUALITY FOCUS SUPERIOR CUSTOMER EXPERIENCE Foundational Set of Principles that Enhance our Market - leading Position 50 THOR Investor Day 2022
Slide 51: Industry-Leading Product
Industry - Leading Product Consumer - centric driven innovation focused on: • New products in fast growing categories • Differentiating features and technologies • Catering to younger first - time buyers • Supporting work - from - anywhere and alternative camping resources THOR Investor Day 2022 51
Slide 52: Best-in-Class Operational Excellence
Best - in - Class Operational Excellence • Protection of margins • Increased market share • Preserving brand value • Enhancing dealer relationships INVENTORY MANAGEMENT "SMART GROWTH" STRATEGY DISTRIBUTION Centralized oversight leads to: 52 THOR Investor Day 2022
Slide 53: Investing in Quality
Investing in Quality TOOLS PEOPLE PROCESSES DSI awards received since 2010 53 THOR Investor Day 2022 200+
Slide 54: Focused on Delivering a Superior Customer Experience
Focused on Delivering a Superior Customer Experience 1 CONNECTING CUSTOMERS WITH EXPERIENCES • Concierge service • Community • Digital tools • Trip planning 2 ELIMINATE ANXIETY • Owner apps • Reservations • Branded POIs 3 CUSTOMER CARE • Rapid - response fleets • Expedited parts and services • Exten
Slide 55: Strong History of Market Share Leadership
Strong History of Market Share Leadership THOR Investor Day 2022 55 45.1% 41.4% 40.8% 40.1% CY 19 CY 20 CY 21 CY 22 YTD 44.3% 44.7% 47.7% 49.2% CY 19 CY 20 CY 21 CY 22 YTD INDUSTRY LEADER IN ALL SEGMENTS (4) # 1 COLEMAN Fastest Growing Travel Trailer in the Industry JAY FLIGHT #1 Entry - Level Stick
Slide 56: North American Outlook
North American Outlook RETAIL DEALER INVENTORY SUPPLY CHAIN DEALER SENTIMENT • Calendar year 2022 retail projected to be a top six year on record for the North American RV industry • Record numbers of millennials and Gen Xers entering the lifestyle • Towable inventory levels normalized with very hea
Slide 57: Our Long-Term Optimism is Supported by Real Data from RVers
Our Long - Term Optimism is Supported by Real Data from RVers of new RVers are happy with their purchase (1) 98 % of those first time buyers say they will buy again (1) of lightweight owners are happy with their purchase (1) 95 % 97 % 93 % of those owners intend to buy again (1) of B van owners are
Slide 58: North American Key Takeaways
58 North American Key Takeaways #1 in every product category in which we we participate with leading, iconic brands THOR’s progressive decentralized business model is the foundation to its success Highly profitable segments through best - in - class operational excellence, innovation and quality Wel
Slide 59: Operating in the THOR Family of Companies – An Airstream Perspective
Operating in the THOR Family of Companies – An Airstream Perspective Bob Wheeler President and Chief Executive Officer, Airstream draft v22 - 6.13.22 59 THOR Investor Day 2022
Slide 60: Airstream Business Update
Airstream Business Update • Dealer inventories at 23% of optimal • 75% of production units retail sold • Lead times between 36 and 50 weeks • 725K sq. ft. facility opened 1/2020 • 675K sq. ft. of manufacturing space, offices, and Heritage Center • Motorhomes upgraded as well • Supply chain – output
Slide 61: Airstream's Strategic Goals
Airstream’s Strategic Goals Increase Output Invest in a Digital Future (CDP) Quality Management System Culture of Engagement 01 02 03 04 61 THOR Investor Day 2022
Slide 62: Benefits of Operating in THOR's Progressive Decentralized Model
Benefits of Operating in THOR’s Progressive Decentralized Model 62 THOR Investor Day 2022
Slide 63: European Operations Update
European Operations Update Troy James Senior Vice President of International Business Operations THOR Investor Day 2022 63 63
Slide 64: Erwin Hymer Group at a Glance
Erwin Hymer Group at a Glance Other 24.4% Caravan 10.9% Campervan 9.1% 55.6% Motorhomes $ 3.2 B FY 2021 NET SALES $2,485 $3,200 $3,051 FY21 FY20 TTM FY22 Net Sales ($ millions) $118 $249 (2) $216 FY20 FY21 TTM FY22 EBITDA (³) ($ millions) $10 $117 $88 FY20 FY21 TTM FY22 NBT ($ millions) (1) As of Ju
Slide 65: Erwin Hymer Group Brands
Erwin Hymer Group P R O D U C T BRA N D S A C C ESSO R Y A N D SERVI C E BRA N D S 65 THOR Investor Day 2022
Slide 66: Production Portfolio
Consett Sassenberg Neustadt San Casciano Nova Sól Polch Isny Bad Waldsee Established in 2022: Nova Sol (PL) Brands: Carado, Sunlight Products: Sassenberg (DE) Brands : LMC, Bürstner, Dethleffs, Eriba, Carado Products: Consett (UK) Brands: Xplore, Elddis, Buccaneer, Compass Products: Wissembourg Kehl
Slide 67: Products
P RO DUCTS 67 THOR Investor Day 2022
Slide 68: Product Portfolio – Recreational Vehicles
Product Portfolio – Recreational Vehicles URBAN VEHICLES CAMPERVANS MOTORHOMES CARAVANS A full product range is offered across all market categories and segments 68 THOR Investor Day 2022
Slide 69: Product Portfolio – Complementary Business
Product Portfolio – Complementary Business MULTICHANNEL ACCESSORIES WHOLESALE BRAND TECHNICAL ACCESSORIES RENTAL Complementary Customer and Margin Enhancement focused business units 69 THOR Investor Day 2022
Slide 70: Market Evolution
MARKET EVOLUTION 70 THOR Investor Day 2022
Slide 71: Market Evolution
Market Evolution 150,000 50,000 100,000 300,000 200,000 250,000 0 2016 (1) 236,927 27.6% 32.1% 41.6% 240,750 12.7% FC 2022 (2) 43.5% 41.7% 190,389 14.8% 2019 (1) 42.3% 260,958 16.1% 2017 (1) 38.0% 14.2% 43.1% 18.9% 2021 (1) 22.2% 2018 (1) 36.8% 41.7% 25.1% 29.9% 21.5% 30.3% 40.3% 2020 (1) 27.9% 34.8
Slide 72: Market Share Evolution
Market Share Evolution CY 15 CY 16 CY 17 CY 18 CY 19 CY 20 CY 21 Source: CIVD statistics. Market share based on European registrations excluding U.K. CY 15 CY 16 CY 17 Caravan Market Share 7.8% 5.1% CY 22 YTD CY 18 CY 19 CY 20 CY 21 12.9% 4.4% 4.1% 9.1% 10.5% 12.9% 35.5% 37.1% CY 17 CY 18 CY 15 CY 1
Slide 73: Sales
SAL ES 73 THOR Investor Day 2022
Slide 74: Dealer Network
Dealer Network 0 - 50 > 50 > 100 > 300 Active dealers per country: >80% of EHG sales are to 5 countries (1) 63.4% Germany 9.5% France Unrivalled network of 1,100 dealers including 400 exclusive EHG dealers Others 17.0% Italy 2.8% Netherlands 3.0% Great Britain 4.3% 74 THOR Investor Day 2022 (1) FY 2
Slide 75: Dealer Inventory Levels
Dealer Inventory Levels ▪ Historically low dealer inventory levels across all core European markets and product segments ▪ Most core market inventory levels are significantly lower than the rest of Europe ▪ Dealer inventory is not expected to return to normal levels until 2024 5.0% 39.0% 19.0% 05/20
Slide 76: Driven to Exceed Expectations
DRIVEN TO EXCEED E XPEC T A T IO N S 76 THOR Investor Day 2022
Slide 77: Driving Gross Margin Expansion
Driving Gross Margin Expansion DRIVERS • Pricing to offset cost inflation • Innovation focused on product differentiation • Operational excellence • Value analysis and cost engineering • Production orientated and lean principles • Global and dual sourcing • Standardization 200 BPS of gross margin ex
Slide 78: Strategic Priorities
Strategic Priorities OPERATIONAL EXCELLENCE INNOVATION & DIGITAL PRODUCTS & PRICING Innovation: new product development focused on differentiation and improved manufacturing efficiencies Digital: drive conversion and use of data to promote solutions and enhance customer experiences Supply Chain: div
Slide 79: Operational Framework for Excellence and Enhanced Profitability
Operational Framework for Excellence and Enhanced Profitability GLOBAL AND MULTIPLE SOURCING ▪ Diversify our supply chain ▪ Drive efficiencies and cost savings initiatives within supply chain ▪ Relentless focus on cost reduction VALUE ANALYSIS AND COST ENGINEERING ▪ Offset inflation - related costs
Slide 80: Operations – Strategic New Location
Operations – Strategic New Location Berlin Neustadt i. S. Nova Sól 125 miles Rationale: ▪ Enhanced margin opportunity and expanded product offering ▪ Strategic Location: Nova Sól, Poland ▪ Special Economic Zone ▪ Approximately 125 miles away from our location in Neustadt, Germany ▪ Proximity to Stel
Slide 81: Innovation
Innovation • Unlocking new customer segments with innovative travel concepts and patented designs • Intuitive, Convenient, Connected: connectivity solutions for the Caravan and Motorhome of today and tomorrow • Strategic Global Cooperation and development with chassis OEM’s for the electrified futur
Slide 82: Innovation for the Leisure Experience
Innovation for the Leisure Experience 82 THOR Investor Day 2022
Slide 83: Key Takeaways
Key Takeaways 83 THOR Investor Day 2022 1 2 3 4 5 Top line expected to return when the supply chain normalizes as demand remains strong and dealer inventory levels remain at historically low levels Strong focus on operational excellence through diversified and strategic sourcing, standardization, an
Slide 84: Our Vision: Market Outlook, Downside Scenario and Updated Five-Year Goals
Our Vision: Market Outlook, Downside Scenario and Updated Five - Year Goals to Create Shareholder Value 84 Todd Woelfer Senior Vice President and Chief Operating Officer Colleen Zuhl Senior Vice President and Chief Financial Officer THOR Investor Day 2022
Slide 85: Market Outlook: Macro Factors, Demand, Inflation and Supply Chain
MACRO FACTORS CADENCE DEMAND • Expect demand to be muted by macro factors for the remainder of FY 22 and into the beginning of FY 23, but believe it to be temporary as the underlying dynamics support sustained and increased demand for the RV lifestyle • Expect the underlying demand for the RV lifest
Slide 86: A Look at a Downside Scenario
A Look at a Downside Scenario 86 NET SALES $ 10.7 B GROSS MARGIN 14.0 % ADJUSTED EBITDA (1) $ 900 M ADJUSTED EBITDA % 8.4 % NET INCOME $ 365 M EPS $ 6.70 CASH FLOW FROM OPERATIONS $ 640 M THOR Investor Day 2022 ASSUMPTIONS AND DRIVERS • Assumes a decrease of approximately 35% from TTM sales LEVERS W
Slide 87: THOR's Past Results Demonstrate its Resilience in Down Markets
FY 08 FY 09 FY 10 SALES ($ THOUSANDS) $2,224,955 $1,115,006 $1,848,549 UNITS 84,751 45,465 73,770 GROSS MARGIN % 12.7% 10.0% 14.2% NBT ($ THOUSANDS) $145,784 $17,619 $156,232 NBT % 6.6% 1.6% 8.5% FY 18 FY 19 FY 20 FY 21 SALES ($ THOUSANDS) $8,155,015 $6,207,780 $5,530,580 $8,891,319 UNITS 266,220 18
Slide 88: Our Vision: 5-Year Performance Projections
NET SALES $ 20 B SUSTAINABLE GROSS MARGIN 17 % EPS $ 27.00 CUMULATIVE NET CASH FROM OPERATIONS (FY 23 – FY 27) $ 6 B + REDUCED GREENHOUSE GAS (GHG) EMISSIONS by 40 % Our Vision: 5 - Year Performance Projections By the end of Fiscal Year 2027, THOR projects: ASSUMPTIONS AND DRIVERS 88 THOR Investor
Slide 89: Closing Remarks
Closing Remarks Bob Martin President and Chief Executive Officer THOR Investor Day 2022
Slide 90: Key Takeaways
90 Key Takeaways Strong and experienced leadership team with a proven track record of managing through business cycles Market - leading position in both North America and Europe with focused strategy to expand the leadership position and grow operating results Strategic growth initiatives in automat
Slide 91: Q&A Session
Q&A Session 91 THOR Investor Day 2022 All Presenters
Slide 92: Appendix
Appendix 92 THOR Investor Day 2022
Slide 93: Adjusted EBITDA Reconciliation
Adjusted EBITDA is a non - GAAP performance measure included to illustrate and improve comparability of the Company's results from period to period . Adjusted EBITDA is defined as net income before net interest expense, income tax expense and depreciation and amortization adjusted for certain items
Slide 94: Net Debt Leverage
Net Debt Leverage is a non - GAAP measure of the use of debt. The Net Debt Leverage Ratio is calculated by dividing Net Debt (as reconciled above) to Adjusted EBITDA (refer to Adjusted EBITDA reconciliation included within this appendix). The Company uses the Net Debt Leverage ratio (or Net Debt to
Slide 95: Downturn Scenario - Adjusted EBITDA
Adjusted EBITDA is a non - GAAP performance measure included to illustrate and improve comparability of the Company's results from period to period . Adjusted EBITDA is defined as net income before net interest expense, income tax expense and depreciation and amortization adjusted for certain items
Slide 96: European Segment EBITDA
EBITDA is a non - GAAP performance measure included to illustrate and improve comparability of the Company's results from period to period . EBITDA is defined as net income before net interest expense, income tax expense and depreciation and amortization . The Company considers this non - GAAP measu
Slide 97: Free Cash Flow
Free cash flow is a non - GAAP measure of liquidity, calculated by subtracting capital expenditures from net cash flows provided by operating activities . The Company considers free cash flow to be a profitability and liquidity measure that provides useful information to management and investors abo
Slide 98: ROIC
(1) Income Before Income Taxes utilized for the ROIC calculation herein is a calculated five year average based on actual results for the fiscal years ending July 31, 2017 to July 31, 2021. ROIC is calculated using a non - GAAP financial measure . We calculate ROIC by dividing income before income t
Slide 99: Thank You
THANK YOU Investor Day 2022 Mark Trinske Vice President of Investor Relations Mike Cieslak , CFA Investor Relations Manager ir.thorindustries.com