Slide 1: A Leading National Supplier of Components for RVs and Manufactured Homes
ff A Leading National Supplier of a Wide Variety of DW Components for RVs and Manufactured Homes NYSE.
Slide 2: Forward-looking statements
This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Comp
Slide 3: Overview
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Slide 4: Drew's Segments – LTM 12/2014
(Cl RV Towable Total $573 $681 «= $901 $1,016 $1,191
Slide 5: Drew's Products
Slide 6: Drew's Segments – LTM 12/2014
Slide 7: Drew's Products — Components for RVs and Manufactured Homes
> Drew’s Products — Components for RVs and Manufactured Homes Net Sales of $1,191 Million for the 12 Months Ended December 31, 2014 RN ene oo RV Chassis, Slide-outs and Mattresses: eres atu il er Chassis Parts: MH Chassis and $133 million : Chassis Parts: $565 million $34 million Other Products: $97
Slide 8: Financial Performance
> Financial Performance Net Sales = RV Segmentnet sales MH Segmentnet sales = EBITDA EBITDA $1,200 CHE Gin He Net Sales and EBITDA ") (in mitions) ] $1,000 if eae $901 i + 100 sn $n9 { $669 $669 $681 t 580 | on B 1.078 = 5) $511 i | s7e1 T $60 y t J $298 $400 eae sr t B $47 + $40 i t $200 t s90 $221
Slide 9: Consolidated Sales Growth
> Consolidated Sales Growth Sales for the twelve months ended D nber 31 for each yé 2009 2010 2011 2012 2013 2014 a) Sales for acquisitions represent the trailing twelve month sales at the date of acquisition. Any post-acquisition change is includedin organic or industry accordingly b) Organic growt
Slide 10: Management Team
& INDUSTRIES INCORPORATED MANAGEMENT TEAM JASON LIPPERT, CEO > 20 years with Drew SCOTT MERENESS, PRESIDENT > 20 years with Drew JOE GIORDANO, CFO & TREASURER > 12 years with Drew > Average tenure of senior management 14+ years with Drew 9.
Slide 11: RV Industry
RV Industry
Slide 12: Towable RVs and Motorhomes
Towable RVs (Approxmately (256 of industry 2014 unit sales RV Segmentnet sales) of 2013 wholesale dollar sales, or $8.1 billion Retail cost $4,000 to $100,000 per unit. Average about $29,000 Motorhomes (Approximately 6% of Drew's RV Segmentnet sales) of industry 2014 unit sales of 2013 wholesale dol
Slide 13: RV Camper Statistics
(BE 5A, tye Tent Campers 3414000 agp Ever Other Year Heel Ai 21,340,800 38. === ; Active Campers RV Campers by 39,520,000- 9,089,600 Cabin Campers 7,508,800 * Estimates based on 104 million households. All other (4%) 1,580,800, Statistics provided by KOA 2014.
Slide 14: RV Family Vacation Trends
+ Typical RV family vacation is 23 to 59 percentless expensive for a family of four * College and NFL football games + NASCAR events + More active, shorter, “greener”, & family oriented vacations The number of consumers between the ages of 55 and 70 is projected to total 56 million by 2020, 27 perce
Slide 15: RVs - Industry Wholesale Shipments
> RVs - Industry Wholesale Shipments Approximately 79% of Drew's RV Segment net sales are for Travel Trailer and 5" Wheel RVs 500 Motorhomes industry units in thousands} © Other Towables: Travel Trailers & 5th Wheels 400 Be 370 384 353 357 324 ae — 300 286 [E3 257 e m= = = 8 166 320 281 os er 299 24
Slide 16: RV Shipments
> RV Shipments Compound Annual Growth Rate from 19 450 18% nee RV Shipments z RV Shipments vs Federal 5 40 5 400 interest Rak ue Ban ess interest Rate eal a Ae B aso 1 e 2 2x0 00 14 A a ee ss 100 oe es 0 LPPPLEEL ELL S SE SEs POO PP POLO DISPOSE oon 450° — Sa ep 2 5 400 A 40% i 5 195 3 350 a i eral
Slide 17: RV Industry Trends
> RV Industry Trends Units 300 275 250 225 200 115 150 125 100 226.4 185.1 184.3, 138.3 Travel Trailer and 5 Wheel RVs, Drew's primary RV market 199.2 298.9 Wholesale === Retail (Units in thousands} 268.0 271.0 ae 250.8 212.9 222.8 206.0 186.0 2008 2009 Dealer inventory (41.3) (26.0) Change 2010 13.
Slide 18: Number of U.S. Households that Own an RV
> Number of U.S. Households that Own an RV (in Millions) 10 9 6 a 7 | 4 | dl | Bs ee a : B | 1980 1984 1988 1993 1997 2001 2005 2011 prew Statistics provided by RVIA Industry Profile 2013. 7
Slide 19: Demographics
> Demographics Number of U.S. households that own an RV 7.9 million 8.9 million Household ownership rates of RVs 80% 85% Average age of all RVs 12.7 years 14.2years Average time consumers have owned their 6.6 years 8.4 years current RV Age of typical RV owner A9 years A8 years Average income of RV o
Slide 20: Our RV Segment
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Slide 21: RVs - Industry Wholesale Shipments (Compared to Drew's Performance)
» RVs - Industry Wholesale Shipments (Compared to Drew’s Performance) Approximately 79% of Drew’s RV Segment net sales are for Travel Trailer and 5" Wheel RVs 800 7 $1.20 (Industry unitsin thousands, net sales in millions) aa == Notorhomes $1,075 Other Towables can Travel Trailers & 5th Wheels 600 ™
Slide 22: Content Per New Towable RV
> Content Per New Towable RV -Approximately 79% of RV Segment net sales are for Travel Trailer and Fifth-Wheel RVs - 100% market share in existing A products would yield an estimated oc $5,000 per Towable RV are - Growth in RV “features” drives ort content increases RV Segment operating 2001 2002 20
Slide 23: Content Per New Motorhome RV
> Content Per New Motorhome RV -Approximately 6% of RV Segment net sales are for Motorhome RVs - 100% market share in existing products would yield an estimated $5,000 per Motorhome RV $31 — $705 RV Segment 2004 operating profit margin 8.2% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8.5% 74%
Slide 24: RV Segment Net Sales by Type
>» RV Segment Net Sales by Type LTM 12/14- $1,075 Million $113 million 11% Sou miken LTM 12/13- $894 Million $68 million 6% > $93 million $844 $25 million 10% million $48 million, 4% 79% 5% $728 million 81% = Travel Trailer & Fifth-Wheel - OEM ™ Motorhome - OEM Aftermarket » Adjacent Industries
Slide 25: Manufactured Housing Industry
SECTION @ Manufactured Housing Industry
Slide 26: Manufactured Housing (MH) Market
> Manufactured Housing (MH) Market a” Cost per sq. ft. is $44 for MH vs: $94 for site-built homes a_ Average retail price of $64,000 for a 1,470 sq. ft. MH a 9 million manufactured homes acrossithe U.S: ” Improved quality, appearance and safety ” Studies have shown MHs built since 1995 sustain no mo
Slide 27: Manufactured Housing — Industry Production
> Manufactured Housing — Industry Production Industry Units 2007 193 {industry units in thousands) _ Multi-Sections === Single-Section 168 2001 2002 2003 2004 2005 2006 2007 2008 ©2009-2010 2011-2012 2013 2014 Mi Share 75% 78% 79% «74% «65% «72% «BKM CGIH:««SOH: SI «53H SIKH Held by Mut-Sections The
Slide 28: MH: Favorable Factors
> MH: Favorable Factors a” Industry 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, as is the weak overall housing market a” Dr
Slide 29: Our Manufactured Housing Segment
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Slide 30: Manufactured Housing — Industry Production (Compared to Drew's Performance)
> Manufactured Housing — Industry Production (Compared to Drew's Performance) Industry a x, Drew's Une Industry units in thousands, net sales in millions) Net ecies - Multi:Sections == Single-Section Drew's MH Segment a net sales $250 S22SRS 20 200 ue $200 pa $177 168 i 450 $142 $160 te 331 $120 $12
Slide 31: Content Per New Manufactured Home
> Content Per New Manufactured Home 100% market share in existing products $1,666 would yield an estimated $4,500 perhome $1,493. 51,465 $1,450 $1,429 $1,368 $1,330 $1,332 Affordability of the homes e® Bae ae constrains content growth - $871 $796 $663 2001 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 32: MH Segment Net Sales by Type
> MH Segment Net Sales by Type LTM 12/14- $116 Million LTM 12/13 - $122 Million $80 million 66% OEM Aftermarket m Adjacent industries
Slide 33: Strategy
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Slide 34: Business Strategy
> Business Strategy a Maximize profitability and return on assets through > New product introductions > Market share growth > Operational efficiencies > Diversification to related industries > Strategic acquisitions a This strategy accomplished through > Outstanding customer service > Motivating man
Slide 35: Expanding Our Growth Potential
> Expanding Our Growth Potential Developed Line of RV Awnings $ 100 milion Doors and Windows for Truck Caps, Horse Trailers and Buses $ 100 milion Cross Sell Existing Products to Boat, Livestock, Equipment, Utility and Cargo Trailer $ 400 milion Markets, as well as Mid-Size and School Buses Sales of
Slide 36: Acquisition Criteria
> Acquisition Criteria a Drew is a disciplined and patient acquirer a Gain market share or add products from other suppliers through acquisitions a Seek products or technologies that we can expand through our nationwide customer base and factory network a Become an even more extensive supplier to ou
Slide 37: New Products & Acquisitions
> New Products & Acquisitions Acaure TRaL AR Began Adding RV production suspension of entry products doors for AcaUiRE RVs Coach Step: ‘Adding electric steps for ‘motorhomes | { v ‘ACQUIRE SEATING AcaurrE TECHNOLOGY: HAPPUAC: ‘Adding furniture Adding for RVs in patented bed AcaurRE Midwest market li
Slide 38: New Products & Acquisitions
> New Products & Acquisitions ACQUIRE ACQUIRE POWER —— ACQUIRE M&M. or GEAR & KWIKEE: Acting “Banding. Adin Tool & ietng sytem commovents fer chassis Die end slideouts and customization axomatn steps pan capabilities ACQUIRE EA PP vou feciwaioces: a ACQUIRE STAR ACQUIRE =xpanding DESIGN: EATECH: tow
Slide 39: EA Technologies
EA Technologies (1) Plus contingent consideration payable on future sales. IDS had annual sales of approximately $19 million in 2013, of which $15 million were to the Company. (2) Plus contingent consideration payable on future sales.
Slide 40: The Future
> The Future Increasing RV content RV industry growth Demographic tailwind Expanding into adjacent industries, aftermarket and international a Affordable housing recovery u MWY
Slide 41: Thank You
Jason D. Lippert Chief Executive Officer JasonL@lci1.com THANK YOU | siveor= . ‘ ScottM@lci1.com For more information contact Joseph S. Giordano Ill CFO & Treasurer Joe@drewindustries.com @ Witter www.drewindustries.com @ Youtube www.lci1.com @ Facebook 574-535-1125
Slide 42: Supplemental Schedules
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Slide 43: Operating Results
> Operating Results Twelve Months Ended December 31, FINANCIAL PERFORM. (Sin millions, except EPS) 2014) 2013) Change Net Sales Sal NGOS ES 1 O1Si6 17% Operating Profit $ 97.5 $ 80.2 22% % of Sales 8.2% 7.9% Net Income $ 63.6 $ 51.3 24% Diluted EPS SS Ai | a Zhe 21% (1) Excludes loss on sale of extr
Slide 44: (1) Facility star-up and realignment costs. as well as higher health insurance, had a
(1) Facility star-up and realignment costs. as well as higher health insurance, had a negative impact on operating profit in 2014 as compared fo 2013. For further information, please refer fo the Company's Form 10-K for the year ended December 43 mconronareo 31, 2014.
Slide 45: Debt Position
> Debt Position (CIAL PERFORMANCE Cash and Net Cash eater ae (Sin milions) Investments (Debt) YTD Period 12/31/10 $ = $ 440) $ 440) $ OD) 12/31/11 $ - $ 7 $ 7 $ 50 12/31/12 ||$ 7 $ 10 $102) $ ] 12/31/13 $ - $ 66 $ 66 $ 5 12/31/14 $ +16 se $ 16)8) $ ie (1) On December 28, 2010, the Company paid a spe
Slide 46: Balance Sheets
> Balance Sheets ($ in millions, 1/12 12/31/13 12/31/14 Total Assets $307 $ 351 374 $453 $ 544 Total Debt $ = $ zs Cash & Investments $ 448) §$ v Stockholders’ Equity $ 243° §$ 277 104 =$ 66 $ = 2844) $ 3146) $ 395 Days Sales in a/R" 12 days 17 days 14 days 16 days 15 days Inventory Turns”) 6.5 turn
Slide 47: Cash Flow
> Cash Flow FINANCIAL PERFORMANCE Acquisitions (18)* $202 million Capital expenditures $142 million Special dividends $125 million Stock repurchases $ 2million Total $ 471 million *On January 16, 2015, the Company acquired the business and certain assets of EA Technologies, the purchase price of $9.
Slide 48: Cash Flow
> Cash Flow mmm Dividends (Capital Expenditures FINANCIAL PERFORMANCE $160 SAcauistions $152 $160 * Operating Cash Flow $140 $140 $120 $120 $100 $100 $85 $80 ae $80 $65 $73] ge $60 $63 $32 $33 $60 $40 so $40 $20 $42 $20 $5 $24 $. # $0 2009 2010 2011 2012 2013 (1) 2014 (2) ‘Cumulative operating cash
Slide 49: Financial Strength
> Financial Strength FINANCIAL PERFORMANCE (12 months en ) 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Return on Equity 11% 11% 13% 16% 17% Return on Assets 9% 9% 10% 12% 12% Mee Diets) 0.00 0.00 0.00 0.00 0.04 Equity ie to 0.00 0.00 0.00 0.00 0.12 (1) EBIDA is operating profit plus depreciation an
Slide 50: Reconciliation of Operating Profit to EBITDA
> Reconciliation of Operating Profit to EBITDA FINANCIAL PERFORMANCE (S in millions) 2010 2011 2012 2013 2014 Operating $45.2 $48.5 $58.1 $78.3 $95.5 Profit Depreciation & Amnoteaton $17.1 $20.5 $25.7 $27.5 $32.6 EBITDA. $62.5 $69.0 $83.8 $1058 $128.1 Capital Expenditures $10.1 $24.3 | $32.0 $32.6 $
Slide 51: Net Sales and Operating Profit by Segment
Net Sales: RV Segment $ 4772 $ see $ 780.9 $ 893.7 §$ wae MH Segment 95.6 110. 120.2 121.9 116, Operating Profit: RV Segment $ : 47.2 MH Segment 12.4 Sale of extrusion assets _ Total Operating Profit 454 § 48.5 § 58.1 $ 783 $ 9559
Slide 52: Stock Price History
> Stock Price History Drew has 24.1 million shares outstanding and a market capitalization of approximately $1.4 billion as of February 28, 2015 2001 2002 2003 2004 2005 2006 10/5/07 2007 2008 3/9/09 2009 2010 2011 2012 2013 2014 2/28/15 prew (December 31, unless noted)
Slide 53: Analyst Coverage
> Analyst Coverage a” Citi Research > Gregory Badishkanian — (212) 816-2720 a CJS Securities > Dan Moore — (914) 287-7600 a” Sidoti & Company, LLC > Scott Stember — (212) 453-7017 ” Thompson Research Group > Kathryn Thompson — (615) 891-6206