Slide 1: A Leading National Supplier of a Wide Variety of Components for RVs and Manufactured Homes
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 may contain certain “forward-looking statements” within the meaning of the Frivate Securities Litigation Reform Act of 1995 with respect to financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive p
Slide 3: About Drew Industries
About Drew Industries A leading national manufacturer of quality components for Recreational Vehicles (RV) and Manufactured Homes (MH)
Slide 4: Company Overview
Company Overview ® Headquartered in White Plains, New York — 11 employees ® 36 manufacturing facilities in the U.S. ® Approximately 3,600 employees nationwide ® Organic growth from 2001 through 6/30/08 was nearly $100 million, excluding price increases and acquisitions
Slide 5: Financial Performance
Financial Performance Sales and EBITDA (in millions) = RY Segment sales me MH Segment sales =e EBITDA rp st0° 3750 500 250 2001 2002 2003 2004 2005 2006 2007 LT™™ e/08 1) 2001-LTM June 2008 EBIDTA CAGR = 16%. EBITDA is operating profit plus depreciation and amortization (see page 38).
Slide 6: Drew's Companies
Drew’s Companies ® Kinro, Inc. - Acquired 1980 > Aluminum windows for RVs Doors for RVs and MHs Aluminum and vinyl windows and screens for MHs Bath and shower units, and sinks for MHs and RVs Exterior panels for RVs ® Lippert Components, Inc. - Acquired 1997 > > Chassis and chassis parts for RVs and
Slide 7: Drew's Management Team
Drew’s Management Team . INNOVATIVE & Highly respected and EXPERIENCED experienced management: MANAGEMENT »Leigh J. Abrams, CEO 35+ years >Fredric M. Zinn, President 25+ years Leigh Abrams David L. Webster, CEO, Chairman 30+ years LIPPERT Jason D. Lippert, CEO, Chairman 13+ years Excellent managemen
Slide 8: Drew's Segments — LTM 6/30/08
Drew's Segments — LTM 6/30/08 Revenues - $621 million MH = $14 million : 21%
Slide 9: Drew's Products
Drew’s Products Sales - $621 million 12 Months Ended June 30, 2008 RV Chassis, Slide-outs and Other Chassis Parts: $299 million 9 MH Windows ana 11% Screens: $69 million 10% MH Chassis and Chassis Parts: $62 million 4% MH ond RV Bath Products: $23 million 7 Specialty Trailers: T™% $20 million | Vand
Slide 10: Supplier to Industry Leaders
Supplier to Industry Leaders Outstanding customer service and national coverage, with 36 production facilities (approximately 3.0 million sq. ff.), make us a key partner with our customers, including: > Fleetwood (NYSE: FLE) > Skyline (NYSE: SKY) > Coachmen (NYSE: COA) > Forest River (owned by Berks
Slide 11: Business Strategy
Business Strategy © Increase sales and profitability through > > > Market share growth New product introductions Strategic acquisitions Operational efficiencies ® This strategy accomplished through > > Outstanding customer service Motivating management through profit incentives and training programs
Slide 12: Content Per Vehicle - RV
Content Per Vehicle - RV Peak potential is $2,700 to $3,000 per RV 90+% of RV Segment sales are for Towable RVs | ys: aby 426 (re) 31.048 2001 ' 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | LTM Operating 6/30/08 profit margin 87% 10.0% 11.6% 98% 9.7% 8.6% 128% 11.7% {1) Excludes sales of specialty trai
Slide 13: Content Per Home - MH
Content Per Home - MH Peak potential is $3,400 to $3,700 per home 2001 2002-2003 2004 2005 2006 = 2007 L™ Operating 6/30/08 Profit margin 10.8% 10.9% 10.8% 10.5% 10.6% 91% 8.5% 8.9% See Page 22 for Industry Information
Slide 14: Acquisition Criteria
Acquisition Criteria ® Drewis a disciplined and patient acquirer ® Target price less than 6 times pro forma EBITDA ® Immediately accretive ® Complementary to our core RV (including specialty trailers) and MH markets ® Seek to acquire products or technologies that we can introduce through our nationw
Slide 15: Acquisition History — Acquisitions
Acquisition History — 21 Acquisitions STRATEGIC ACQUISITIONS 1980 — 2005 May 2007 Jun ‘COACH STEP July 2008 i SEATING Kinro (1980) Hop TECHNOLOGY and Lippert : Components (1997) peepee i Annual sales of bissisy January 2007 gprs EQUA-HEX ENGINEERING Annual sles petits Custom best ayer Annual sales o
Slide 16: Seating Technology
Seating Technology © ® © Furniture products primarily for towable RVs, including folding sofas for toy hauler RVs, a full line of upholstered furniture, mattresses, decorative pillows, wood-backed valances and quilted soft good products Excellent reputation in the RV industry Fragmented, regional in
Slide 17: Investments
Investments ® Kinro and Lippert have extensive R&D departments ® Since January 1998 > Invested over $153 million in plant and equipment > Invested over $163 million for acquisitions > Invested $26 million for stock repurchases at an average price of $5.32 per share through June 30, 2008 ® These inve
Slide 18: RV Market
RV Market TOWABLE RVS (90+% of Drew's RV Segment revenues) Travel trailer ca . Fifth wheel travel trailer pe aS Travel roller with Sport utllty RV expandable ends "Toy Hauler” “iy Folding camping troiler Truck camper 84% of industry 2007 unit sales 47% of 2007 wholesale dollar sales, or $5.5 billion
Slide 19: RVs - Industry Wholesale Shipments
RVs - Industry Wholesale Shipments 90+% of Drew's current RV product sales are for Travel Trailers and 5'" Wheel RVs Travel Trailers & Sth Wheel 1 Other Towables | Motorhomes: (Thousands of Vehicles) a 218) aq (218) 370 224 1998 ©1999» 20002001 «2002-2003. 2004 «2005-2006» 2007-2008, Drew's RV Sales
Slide 20: Trends In RV Market
Trends In RV Market STRONG LONG-TERM GROWTH ® Positive Demographic Trends “oe” >» Americans 50 and over are a prime market for RVs >» According to March 2004 census projections, there are expected to be 20 million more people over 50 by 2014 ® Industry Advertising Campaign > Target Market 25 and ove
Slide 21: How RVs Are Used
How RVs Are Used STRONG LONG-TERM GI © Shift in U.S. culture toward more RV-rela activities > College and NFL football games > NASCAR events > “Toy Haulers” ® More economical family vacations > Typical RV family vacation up to 74% less expensive ® Many RVs are “parked” over the long-term as second h
Slide 22: MH — Industry Production
MH — Industry Production [Homes in thousands, Dollars in millions} 400 3250 = Multi-Sections sem Single-Section mmm Drew's MH Sales $225 aso s220 3200 200 3175 250 3150 200 - $125 3100 150 375 100 350 60 325 ° 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 = {]) Includes approximately 3,5
Slide 23: Manufactured Housing (MH) Market
Manufactured Housing (MH)Market © ® ® ® © ® STRONG LONG. Cost per sq. ft. is $39 for MH vs. $91 for site-built homes Average retail price of $62,300 for a 1,595 sq. ft. MH 9 million manufactured homes across the U.S. Improved quality, appearance and safety Studies have shown that MHs built since 199
Slide 24: MH: Industry Financing Trends
MH: Industry Financing Trends STRONG LONG-TERM GROWTH is . PROSPECTS Improved lending practices Conventional financing more common than chattel; improves collateral Subprime market woes could help MH Recently passed legislation increased FHA insured chattel loan limits (home only)on manufactured hom
Slide 25: MH: Other Favorable Factors
MH: Other Favorable Factors STRONG LONG-TER: PRC apr is Affordability and quality Baby Boomers retiring in increasing numbers Dealer and manufacturer inventory levels are reasonable Favorable HUD code revisions Improved industry image > Advertising campaign is needed Berkshire investments
Slide 26: Drew's Ownership and Governance
Drew's Ownership and Governance ® Executives and Directors currently own 10% ® Included in S&P SmallCap 600 Index and Russell 2000 Index
Slide 27: Financial Performance
Financial Performance ® Stock Price History > Drew has 22 million shares outstanding and a market capitalization of approximately $340 50 million as of August 6, 2008 “$1 $8 2000 2001 2002 2003 2004 2005 2006 © ©10/5/07 2007 8/6/08 | (December 31 unless noted)
Slide 28: Operating Results
Operating Results FINANCIAL PERFORMANCE Year Ended December 31, (except as noted) (Sin millions, except EPS) 2007 LIM i 2006 2007"? ys 2006 6/30/08” Sales $729 $669 -8% $621 Operating Profit | $57.7 | $553 | $66.0 | +19% | $59 % of Sales 8.6% 7.6% 9.9% 9.5% Net Income $33.6 $31.0 $39.8 +28% $35.9 Di
Slide 29: Results By Segment
Results By Segment FINANCIAL PERFORMANCE (Sin millions) 31/06 Netsales | . | | RV Segment $ 447.7 $ 508.8 $491.8 -3% $464.0 MHSegment | $ 221.5 $220.4 | $1768 -20% | $156.9 Operating Profit RVSegment | $ 43.3 $ 43.6 $ 63.) +45% | $ 54.3 MHSegment | $ 23.5 $ 20.1 $ 15.1 -25% | $ 14.0 Operating Profit
Slide 30: Results By Segment
Results By Segment FINANCIAL PERFORMANCE (Sin millions) 12 Months Ended Net Sales: RV Segment $ 447.7 $ 508.8 $491.8 $ 464.0 MH Segment 221.4 220.4 1768 156.9 Total Net Sales $ 669.1 $ 729.2 $668.6 | $6209 Operating Profit: RV Segment $ 43.3 $ 43.6 $ 63.1 $ 543 MH Segment 23.5 20.1 18.1 14.0 Total S
Slide 31: Operating Results
Operating Results Three Months Ended June 30, (Sin millions, except EPS) 200 FINANCIAL PERFORMANCE Sales since the latter part of 2006 have been negatively impacted sales $184.5 $150.5 -18% Operating Profit $21.0 $ 15.5 -26% % of Sales 11.4% 10.3% Net lncome $ 12.6 $ 9.2 -27% Diluted EPS $ 0.57 $ 0.
Slide 32: Results By Segment
Results By Segment Three Months Ended June 30, FINANCIAL PERFORMANCE (Sin millions) 2007 Netsales RV Segment $134.0 $111.3 -17% MH Segment $ 50.6 $ 39.2 -22% Operating Profit RV Segment $ 19.9 $ 13.0 -35% MH Segment | $ 52 $ 46 | -12% Operating Profit as a Percentage of Net Sales RV Segment | 14.9%
Slide 33: Balance Sheet
Balance Sheet FINANCIAL PERFORMANCE (Sin milions) 12/31/05 12/31/08 12/31/07 6/30/08 | Total assets $307 $311 $346 $352 Total debt $ 73 $ 56 $ 27 $ 20 Invested cash $ - $ 3 $ 53 $ 41 Stockholders’ equity | $168 | $205 | $252 $267 RATIOS Days sales in accounts 21 days | lédays | 15days | 17 days rece
Slide 34: Financial Strength
Financial Strength FINANCIAL PERFORMANCE 12/31/05 12/31/06 12/31/07 6/30/08 Return on Equity Return on Assets 12% 9% 12% 10% Total Debt to Equity Total Debt to EBITDA" 04 0.3 0.1 0.1 11 08 0.3 0.3 1) EBITDA is operating profit plus depreciation and amortization (see page 40)
Slide 35: Peer comparison
Peer comparison FINANCIAL PERFORMANCE ling Drew (DW) 99 | Champion (CHB) N/A 97 2% | Fleetwood (FLE) N/A N/A (1%) Monaco (MNC) | N/A N/A 0% Spartan (SPAR) 44 65 14% Thor (THO) 87 15.4 11% Winnebago (WGO) | 141 | 344 | 5% i Source: Capital IQ, August 6, 2008, except forward P/E, which is provided by
Slide 36: Analyst Coverage
Analyst Coverage Avondale Partners, LLC Kathryn Thompson — (615) 467-5637 CJS Securities Mitch O'Brien — (914) 287-7600 RBC Capital Markets Edward Aaron — (303) 595-1127 Sidoti & Company, LLC Scott Stember — (212) 453-7017 wae
Slide 37: Thank you!
Thank you! For more information contact: Leigh J. Abrams Chief Executive Officer 914-428-9098 leigh@drewindustries.com Fredric M. Zinn President 914-428-9098 fred@drewindustries.com OR VISIT OUR WEBSITE: www.drewindustries.com 9.
Slide 38: Reconciliation of Operating Profit to EBITDA
Reconciliation of Operating Profit to EBITDA FINANCIAL PERFORMANCE LIM (Sin millions) 2001 2002 + 2003 2004 + 2005 2006 + 2007 4/30/08 Operating | $203| $272] $343| $440| $57.7] $953) $060] $589 Depreciation & Amortization | $ 84) $7.3) $78) $93] $120) $15.7) $17.6] $167 EBITDA. $28.7| $36.5) $42.1)