Thor Industries, Inc. · NYSE:THO
Thor Industries — Q2 2019 Earnings Presentation
27 slides from Thor Industries's earnings presentation, Mar 6, 2019
Slide 1: Investor Presentation March 6, 2019
www.thorindustries.com INVESTOR PRESENTATION MARCH 6, 2019
Slide 2: Forward Looking Statements
2 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 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange A
Slide 3: Table of Contents
3 Second Quarter 2019 Update ……………………………………………. . 4 Overview & Current Industry Conditions ………………………………… 12 Appendix: Financial & Market Data ………………………………………. 16 Table of Contents
Slide 4: Second Quarter 2019 Update
Pi a ~<r re | é Second Quarter 2019 Update
Slide 5: Second Quarter Overview
5 Second Quarter Overview Taking Action to Strategically Address Current Conditions While Also Optimistic on Long - Term Growth Opportunities • Helping North American dealers right - size their inventory by adjusting volumes to meet current demand and reduce delivery lead times • Executing on our lo
Slide 6: Second Quarter 2019 Key Financial Metrics
6 Second Quarter 2019 Key Financial Metrics • Sales reduced to more normalized levels for our second quarter, reflecting historical seasonal patterns — prior year exhibited highly unusual strength in the first half of the fiscal year. Current year sales also impacted by ongoing dealer inventory redu
Slide 7: Second Quarter 2019 Towable Segment
7 Second Quarter 2019 Towable Segment • Sales of travel trailers and fifth wheels decreased by 35.4% and 36.4%, respectively • Gross profit was adversely impacted by lower sales levels, increased discounting and incentives, as well as slightly increased warranty costs • Market share down slightly fo
Slide 8: Second Quarter 2019 Motorized Segment
8 • Sales of Class A and Class C decreased by 32.5% and 34.6%, respectively • Gross profit fell in the fiscal second quarter as a result of reduced sales levels and reduced fixed overhead absorption for the quarter • U.S. Class A and C market share for calendar year 2018 increased from 41.2% to 42.5
Slide 9: Second Quarter Key Stats
9 Second Quarter Key Stats Fiscal Quarters Ended January 31 Income Statement Balance Sheet & Cash Flow * Includes $42.1M in acquisition - related costs. ** Includes $0.75 in unfavorable EPS impact from acquisition - related costs.
Slide 10: Erwin Hymer Group Acquisition Driving Global Growth
10 Erwin Hymer Group Acquisition Driving Global Growth • Transaction closed on February 1, 2019, integration teams already engaged in Germany • Creates the #1 global RV manufacturer with a leading portfolio of brands, dealer network and global reach • Establishes a leading position in growing Europe
Slide 11: Snapshot of Combined Company Based on FY 2018 Results
11 Snapshot of Combined Company Based on FY 2018 Results Adds Scale Balances Product Mix Broadens Global Footprint + + + = = = Revenue ($billions) Revenue % Revenue % / / / Notes: 4Q CY2018 average exchange rate of USD / EUR 1.14; Revenue based on FYE 7/31/2018 for Thor (audited) and FYE 8/31/2018 f
Slide 12: Overview & Current Industry Conditions
12 Overview & Current Industry Conditions
Slide 13: Long-Term Operational Excellence
13 Long - Term Operational Excellence • 38 - year record of profitability – 23.3% compounded annual five - year EPS growth (1) ◦ Balance of organic growth and accretive acquisitions • Experienced leadership – c urrent Thor management team has an average of almost 20 years in the RV industry, leading
Slide 14: Effectively Managing Through North American Dealer Inventory Correction
14 Effectively Managing Through North American Dealer Inventory Correction Flexing Production and Costs Dealers Making Progress on Inventory Levels Continuing to Invest with a Long - term Focus • Dealer inventory levels showed solid progress in right - sizing inventory as total dealer inventory went
Slide 15: Healthy North American RV Channel
15 Healthy North American RV Channel Dealer Inventory Approaching Normalized Levels: • Following inventory shortages in FY17, dealers ordered aggressively in early FY18 • Although retail demand grew modestly in calendar 2018, that growth was not sufficient to bring dealer inventory levels down • Tho
Slide 16: Appendix: Financial & Market Data
16 Appendix: Financial & Market Data
Slide 17: Thor Operating Entities
17 Thor Operating Entities As of February 1, 2019 Joint Venture
Slide 18: Thor's RV Product Range
18 Thor's RV Product Range Towable Segment Motorized Segment Note: Retail prices noted above are general ranges. Class A fully enclosed, bus - style motorhome; retail price $80,000 - $750,000 Class C living area built on van or pickup chassis; retail price $80,000 - $250,000 Class B van motorhomes;
Slide 19: EHG's RV Product Range
19 Motorized Recreational Vehicles : van motorhomes on van chassis Retail selling price: € 44,000 – € 85,000; $ 50 , 000 – $ 100 , 000 EHG's RV Product Range Caravans Note: Retail prices noted above are general ranges. Towable Recreational Vehicles : hitch to the bumper of the tow vehicle Retail sel
Slide 20: TH2: Enhancing the RV Experience
20 • Formed TH2 joint venture in 3Q18, with Thor investment to date of $53.9 million, to introduce new products and services focused on enhancing the enjoyment, safety, connectivity and convenience of RV ownership, while reinforcing loyalty to Thor brands • Providing innovation solutions to an ever
Slide 21: North American Consumer Trends
21 North American Consumer Trends Potential RV Buyers 77 Million Households Camping Each Year Consumers Interested in RVs Target • KOA study shows that 77 million households camped in 2017, an increase of 6 million from 2014, and they camped more often (1) • One fourth of campers use an RV, but 44%
Slide 22: RV Industry Overview - North America
22 • Industry retail demand continued to grow in 2018, though the pace of growth moderated from the unusually high double - digit increases in 2016 and 2017. Consumers continue to value RVs as a flexible option for spending leisure time outdoors with friends and family • Wholesale units typically ou
Slide 23: RV Industry Overview - North America Wholesale Market Trends
23 RV Industry Overview - North America RV Wholesale Market Trends (Units 000's) Towable RV Wholesale Market Trends (Units 000's) YTD Shipments (Units) Dec 2018 Dec 2017 Unit Change % Change 483,672 504,599 (20,927) (4.1)% YTD Shipments (Units) Dec 2018 Dec 2017 Unit Change % Change 426,087 441,961
Slide 24: RV Industry Overview - Thor Retail Market Share Trend
24 RV Industry Overview - North America Thor RV Retail Market Share Trend (1) Dealer Inventory of Thor Products RV Industry Retail Market Share (1) (1) Source: Statistical Surveys Inc., U.S. and Canada, calendar years 2014 - 2018; Thor historical results adjusted to include results of Jayco for all
Slide 25: RV Industry Overview - Europe
25 RV Industry Overview - Europe Source: European Caravan Federation (ECF), calendar years 2017 - 18 Country Touring Caravans Motor Caravans Leisure Vehicles - Total 2017 2018 Change % 2017 2018 Change % 2017 2018 Change % Austria 940 956 1.7 % 1,230 1,480 20.3 % 2,170 2,436 12.3 % Belgium 1,157 1,1
Slide 26: RV Industry Overview New Vehicle Registrations by Continent
26 Sources: CIVD; Statistical Surveys RV Industry Overview New Vehicle Registrations by Continent ('000)
Slide 27: THO
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