Slide 1: Investor Presentation September 27, 2017
www.thorindustries.com INVESTOR PRESENTATION SEPTEMBER 27, 2017 www.thorindustries.com
Slide 2: Forward Looking Statements
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 Act
Slide 3: Table of Contents
Table of Contents Overview and Current Industry Conditions 4 Fourth Quarter 2017 Update 14 Appendix: Financial & Market Data 22 3
Slide 4: Overview and Current Industry Conditions
4 Overview and Current Industry Conditions
Slide 5: Thor – Strong Investment Appeal
Thor – Strong Investment Appeal » Solid growth company throughout its 37 - year history – 27.9% compounded annual five - year EPS growth* o Balance of organic growth and accretive acquisitions » M arket leader in a growing industry – RV shipments projected to grow 11.4% in calendar 2017, and a five
Slide 6: Solid Economic Fundamentals Support Continued RV Industry Growth
Solid Economic Fundamentals Support Continued RV Industry Growth 6 Continued Favorable Macro Environment » High consumer confidence » Favorable employment and wage trends » Continued gains in household wealth » Low interest rates » Wide credit availability for both wholesale and retail » Stable fuel
Slide 7: Consumer Trends Support Continued RV Industry Growth
Consumer Trends Support Continued RV Industry Growth 7 THE OPPORTUNITY : If an additional 1% of potential first - time buyers interested in new RVs enter the RV lifestyle, that represents the potential for an additional 166,000 units in an industry that is projected to produce 479,700 units** in cal
Slide 8: Trends Driving Growth: Demographics
Trends Driving Growth: Demographics 8 » + 3.4 MILLION new households have started camping since 2014 * » Gen X and Millennials made up 72 % of campers in 2016 * » Younger campers looking for affordable recreation experiences » Interested in trying different accommodations, including RVs » Latino, Af
Slide 9: Trends Driving Growth: Lifestyle
Trends Driving Growth: Lifestyle 9 Recreational sports » $887 billion spent on “outdoor recreation” in 2016* » Trend toward getting more active and leading a healthier lifestyle » Growing use of RVs with youth sports leagues and tournaments Camping » In 2016, 37.1 million U.S. households camped at l
Slide 10: Health of the RV Channel
Health of the RV Channel 10 Dealer Inventory Levels: » Overall dealer inventory levels remain healthy » Total days in inventory at dealers are stable » Average age of RV inventory on dealer lots remains low » Used inventory levels remain low, supporting trade - in values and demand for new RVs Whole
Slide 11: Opportunities for Continued Growth – Product Innovations & Manufacturing
Opportunities for Continued Growth – Product Innovations & Manufacturing 11 Growth Levers » Continuous investments in new products, features and floorplans ◦ Short product development cycle enables us to introduce new models every year, reinforcing the consumer trade - in cycle » Organic growth thro
Slide 12: Opportunities for Continued Growth – Further Market Penetration
Opportunities for Continued Growth – Further Market Penetration 12 Growth Levers » Expanded Thor marketing efforts ◦ M arketing to younger families and more diverse consumer segments » Geographic expansion ◦ Recent new or expanded campuses in Idaho to serve West Coast demand » Opportunistic acquisit
Slide 13: 2017 Dealer Open House
2017 Dealer Open House » We hosted our 8 th annual Dealer Open House September 18 - 21, 2017, in Elkhart, Indiana. Show highlights include: ◦ Record attendance ◦ Record orders ◦ Dealers highly optimistic regarding remainder of 2017 and calendar 2018 ◦ Numerous product introductions or redesigns with
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Slide 15: Fourth Quarter Key Messages
Fourth Quarter Key Messages 15 Strategic Execution Robust Consumer Demand Outlook » 14th quarter of record revenues from continuing operations for the applicable quarter » Strong growth in revenues, both organically and from acquisitions » Double - digit organic sales growth in both segments – towab
Slide 16: Fourth Quarter 2017 Results Up Double Digits
Fourth Quarter 2017 Results Up Double Digits 16 » Record fourth - quarter results » Gross profit up, though gross margins were lower due primarily to market driven changes in product mix and acquisition impact » Strength at retail shows and dealer lot activity has continued, as new consumers embrace
Slide 17: Fourth Quarter 2017 Towable Segment
Fourth Quarter 2017 17 Towable Segment » Continued mix shift toward more affordably - priced travel trailers » Market share continued to improve through June 2017, with U.S. Towable share increasing from 48.0% to 48.6% while Canadian Towable share remained stable at 56.1%* » Demand remains strong -
Slide 18: Fourth Quarter 2017 Motorized Segment
Fourth Quarter 2017 18 Motorized Segment » Continued mix shift toward more affordably - priced Class C and gas Class A motorhomes » Market share momentum continued through June 2017, with U.S. Class A and C market share increasing from 36.7% to 41.6% and Canadian Class A and C market share increasin
Slide 19: Strategic Actions Affecting Near-Term Gross Margins
Strategic Actions Affecting Near - Term Gross Margins 19 » Thor’s consolidated margin for Q4 was impacted by our decision to maximize earnings by capitalizing on market trends and focusing product mix to entry - level buyers o We anticipate entry - level buyers will adopt the RV lifestyle and trade
Slide 20: Fourth Quarter Jayco Impact
Fourth Quarter Jayco Impact 20 » Jayco had a significant, positive impact on the fourth quarter, given three months of results in Q4 FY17 vs. one in Q4 FY16: ◦ Incremental $399.1 million in revenues ◦ Incremental $63.2 million to gross profit, but dilutive to gross profit margin as expected » Jayco
Slide 21: Key Stats Fiscal Years Ended July 31
$111.4 $151.7 $175.5 $202.0 $258.0 $374.3 FY12 FY13 FY14 FY15 FY16 FY17 Net Income (Continuing Ops., $ millions) $2,640 $3,242 $3,525 $4,007 $4,582 $7,247 FY12 FY13 FY14 FY15 FY16 FY17 Net Sales (Continuing Ops., $ millions) Key Stats (As of or For the Fiscal Years Ended July 31) 21 $2.07 $2.86 $3.2
Slide 22: Appendix: Financial & Market Data
Appendix: Financial & Market Data 22
Slide 23: Seasonal Shipment Patterns
Seasonal Shipment Patterns 23 0 10,000 20,000 30,000 40,000 50,000 60,000 Units Retail * Wholesale ** * Source: Statistical Surveys, Inc., U.S. and Canada ** Source: Recreation Vehicle Industry Association
Slide 24: RV Wholesale Market Trends
RV Wholesale Market Trends (Units 000s) 24 106.9 133.6 140.6 196.6 215.7 186.9 189.9 211.7 215.8 187.9 173.1 163.1 203.4 227.8 259.5 247.2 247.5 254.5 292.7 321.2 300.1 256.8 311.0 320.8 370.1 384.4 390.5 353.5 237.0 165.6 242.3 252.3 285.8 321.1 356.8 374.2 430.7 479.7 491.2 1980 1981 1982 1983 198
Slide 25: RV Wholesale Market Towable Trends
RV Wholesale Market Towable Trends (Units 000s) 25 78.4 98.1 99.4 127.1 133.7 118.1 122.1 137.9 142.9 126.7 120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.6 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 152.4 217.1 227.5 257.6 282.7 312.8 326.9 376.0 419.5 429.3 1980 1981 1982 198
Slide 26: RV Wholesale Market Motorized Trends
RV Wholesale Market Motorized Trends (Units 000s) 26 28.5 35.4 41.2 69.5 82.0 68.7 67.7 73.7 72.8 61.1 52.3 41.9 46.9 51.3 58.2 52.8 55.3 55.1 63.5 71.5 61.0 49.2 60.4 62.0 71.7 61.4 55.8 55.4 28.4 13.2 25.2 24.8 28.2 38.4 44.0 47.3 54.7 60.2 61.9 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 19
Slide 27: RV Industry Demand
RV Industry Demand » Industry retail demand has shifted toward more lightweight, affordably - priced towables and gas Class A and Class C motorhomes as consumers seek value » Wholesale units typically outpace retail in the early part of the calendar year; historically sales become more balanced as w
Slide 28: Thor Dealer Inventory
Thor Dealer Inventory » Dealers remain confident with orders reflecting normal ordering patterns » Orders generally expected to reflect 1 - for - 1 replacement as units are sold at retail » Dealer inventory generally remains appropriate for current conditions in both towable and motorized » Lenders
Slide 29: RV Industry Retail Market Share
Total Share % Total Share % Total Share % Total Share % THOR* 118,891 48.2% 195,973 47.4% 178,520 47.6% 160,663 48.9% Forest River** 85,774 34.8% 144,909 35.1% 132,923 35.4% 112,979 34.4% Grand Design 8,909 3.6% 11,717 2.8% 7,000 1.9% 4,174 1.3% Winnebago 7,621 3.1% 13,093 3.2% 12,143 3.2% 10,395 3.
Slide 30: Thor RV Retail Market Share Trend
Thor RV Retail Market Share Trend (Units) 30 54.9% 53.7% 51.3% 49.7% 48.9% 49.5% 25.4% 29.4% 31.0% 32.8% 37.8% 41.6% 16.7% 22.1% 21.9% 22.1% 18.3% 14.9% 2012 2013 2014 2015 2016 2017 YTD Towable Retail Share* Class A/C Retail Share* Class B Retail Share* *Source: Statistical Surveys Inc., U.S. and C
Slide 31: THO
THO i i Piso} www.thorindustries.com Fra