Lci Industries · NYSE:LCII
Lci Industries — Drew Industries — Investor Presentation (February 2012)
41 slides from Lci Industries's investor presentation, Feb 13, 2012
Slide 1: Drew Industries Incorporated
Drew Industries Incorporated (NYSE: DW) Exhibit 99.4 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 contains certain “forward-looking statements" within the meaning of the Pivate Securities Litigation Reform Act of 1995 with respect to financial condition, resulls of operations, business strategies, operating efficiencies or synergies. competitive posit
Slide 3: Section I: Overview
SECTION | Overview
Slide 4: Drew's Products - Components for RVs and Manufactured Homes
Drew's Products - Components for RVs and Manufactured Homes $681 Million of Net Sales for the12 Months Ended December 31, 2011 Rv RV Chassis, Both Products: $19 million $67 million Sp 38 millon Th Other Products: $6 million 1% RV Segment Windows and Doors: $126 million
Slide 5: Drew's Segments — LTM 12/2011
Drew's Segments — LTM 12/2011 Net Sales - $681 million Segment Operating Profit - $58 million
Slide 6: Financial Performance
Financial Performance Net Sales and EBITDASO (in mitions) Net Sales = RV Segment net salesme MH Segment net sales —= EBITDASO EBITDASO 100 $750 srs 500 250 200120022003 002005 2008-2007 ©2008 2009 zat (1) EBIDASO is operating profit plus depreciation, amortization, goodwillimpaiment and stock-based
Slide 7: Section II: Industries
SECTION II Industries
Slide 8: RV Market
RV Market TOWABLE RVS (Approximately 907% of Drew's RV Segment net sales) Treveltraler Fthwhesltovelvalee @ 90% of industry 2010 unit sales a ix 62% of 2010 wholesale dollar ae ae - sales, or $4.3 billion Traveltrailer wth Sport utity RV Retail cost $4,000 to $100,000 per ieiieaiealashagd joy Howler
Slide 9: How RVs Are Used
How RVs Are Used © More economical family vacations > Typical RV family vacation is 23 to 59 percent less expensive for a family of four © Shift in U.S. culture toward more RV-related activities > College and NFL football games > NASCAR events > More active, shorter, “greener”, & family oriented vac
Slide 10: RVs - Industry Wholesale Shipments
RVs - Industry Wholesale Shipments Approximately 90% of Drew's RV Segment net sales are for Travel Trailers and 5!" Wheel RVs Drew's tn Unt” Net Sates Us {usin hoon Sle mers) a so eer ante ; sco recat et fn ra 40 300 200 100 a ee S (1) Projection for 2012s the latest pubished by the RVIA (November 2
Slide 11: Recent RV Industry Trends
Recent RV Industry Trends Travel Trailers and 5" Wheel RVs, Drew's primary RV market 300,000 275,000 250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 Dealer Inventory Change 226,387 242,900 pay 495,311 (1) 85.10 486,010 164,254 138,309) 2008 2009 2010 2011 (41,287) (25,95
Slide 12: Manufactured Housing (MH) Market
Manufactured Housing (MH) Market i) Cost per sq. ft. is $41 for MH vs. $84 for site-built homes Average retail price of $63,100 for a 1,530 sq. ft. MH 9 million manufactured homes across the U.S. Improved quality, appearance and safety Studies have shown that MHs built since 1995 sustain no more dam
Slide 13: MH — Industry Production
MH — Industry Production Industry Units. 400 350 200 150 100 [Units in thousands, Dollars in milions) == Mult-Sections sm Single-Section mm Drew's MH net sales There are no industry forecasts for the manufactured housing industry. Drew's Net Sales $250 $225
Slide 14: MH: Favorable Factors
MH: Favorable Factors 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 DREW: © D
Slide 15: Section III: Strategy
SECTION Ill Strategy
Slide 16: Business Strategy
Business Strategy = Strategic acquisitions = New product introductions = Market share growth = Operational efficiencies * Diversification to related industries © This strategy accomplished through = Outstanding customer service * Motivating management through strong profit incentives * Low cost manu
Slide 17: Acquisition Criteria
Acquisition Criteria Drew is a disciplined and patient acquirer Gain market share or add products from other suppliers through acauisitions Seek products or technologies that we can expand through our nationwide customer base and factory network Become an even more extensive supplier to our customer
Slide 18: New Product Introductions
New Product Introductions ‘ACQUIRE ‘AcaUIRE HOME-SIYLE: Coac ster: > Inlroduce Expanding fumiture for Adding electric PS RVLOCK remote Jf RVs in Northwest market r locking product slept octichon 9 locking produc — motorhomes ary do wary Technotocies: Expanding towable RV Ls AcQuiRE chassis and slide
Slide 19: What Drew Has Done - Expanding Our Growth Potential
What Drew Has Done - Expanding Our Growth Potential 2008 = RV Entry Doors $3 millon 2008/2011 - RV Furniture and Matiresses $_ 200 million 72009 = Manufactured Housing ("MH") Entry Doors $_25milion "2009 - Focus on MH Replacement Windows $_20milion 2010 Level-Up™ System for Fifth: Wheel RVs $ Smilio
Slide 20: 2011 Acquisitions
2011 Acquisitions Purchase Historical (Sin millions) Price Sales Description Home-Style!”) § 73)18 2 ]EESSp eters’ Wale $ 6.0]/$ 12 | Sopmeetecanoeai teen EA Technologies § 198)$ 42 |SsSeessess Starquest!) S M2|8 @ [Este Ss tora Ista) S 0S 9 =a ‘Gass and Class © motorhome RVs. Total $ 504/$ 91 {1} P
Slide 21: Content Per New Towable RV
Content Per New Towable RV - Approximately 90% of RV Segment net sales are for Travel Trailers and Fifth-Wheel RVs - 100% market share in existing products would yield $4,500 to $5,000 per Towable RV - Growth in RV “features” drives content increases $2,308 RVSegment 2001 2002 2003 2004 2005 2006-20
Slide 22: RV Segment Net Sales by Type
RV Segment Net Sales by Type 2011- $571 Million $11 million /-$32 million 6% $17 milion, 2%, % 2010 - $477 Million $17 milion. $12 million $16 million ONE bal "Travel Trailer & Fith-Whee! - O&M Motorhome - OEM Aftermarket "other "Travel Trailer & Fith-Whee! - O&M Motorhome - OEM = Aftermarket "other
Slide 23: Content Per New Manufactured Home
Content Per New Manufactured Home - 100% market share in existing products would yield $3,600 to $4,000 per home - Affordability of the homes constrains content growth $1,666 $1,450 $1,429 51330 $1,373 $1,281 $1,333 2001 2002 2003-2004 2005 2006-2007 «2008-2009 2010-2011 Sections perhome 1.77 181 18
Slide 24: MH Segment Net Sales by Type
MH Segment Net Sales by Type 2011- $110 Million $13 million 12%. $16 million 15%, 2010 - $96 Million ‘$10 million 10 $17 million 7 18% OEM Aflermerket Other
Slide 25: Compensation Plans
Compensation Plans Aggregate 2010 Compensation of Key Executives By Component Cash vs. Equity 31% Perfommance-Gaved ® Stock Options m Salary & Other Cosh "Cosh
Slide 26: Section IV: Operating Results
SECTION IV Operating Results
Slide 27: Operating Results
Operating Results Three Months Ended December 31, FINANCIAL PERFORMANCE S ns, 11 Change Net Sales $ 106.2) $ 159.6 50% Operating Profit $ 46) $ 59 28% % of Sales 4.3% 3.7% Net Income $ 31) $ 41 31% Diluted EPS $ 0.14) $ 0.18 29%
Slide 28: Operating Results
Operating Results Twelve Months Ended December 31, FINANCIAL PERFORMANCE (Ss ns, 11 Change Net Sales $ 572.8) $ 681.2 19% Operating Profit $ 45.4) $ 485 7% % of Sales 7.9% 7.1% Net Income $ 28.0} $ 30.1 7% Diluted EPS $ 1.26) $ 1.34 6% -2-
Slide 29: Results By Segment
Results By Segment Three Months Ended December 31, FINANCIAL PEEORMANCE (Sin ns) 2010 2011 Change Net Sales: RV Segment $ 86.5} $ 131.0 51% MH Segment $19.7) $ 28.6 45% Operating Profit: RV Segment") $ 64) $ 53 -16% MH Segment $ 13] $ 3.0 124% Operating Profit as a Percentage of Net Sales: RV Segmen
Slide 30: Results By Segment
Results By Segment Twelve Months Ended December 31, FINANCIAL PERFORMANCE (Sin ns) 2010 2011 Change Net Sales: RV Segment $ 477.2| $ 570.6 20% MH Segment $ 95.6) $ 110.5 16% Operating Profit: RV Segment $ 44.4) $ 45.7 3% MH Segment $ 96) $ 12.0 25% Operating Profit as a Percentage of Net Sales: RV S
Slide 31: Net Sales Compared to Pre-Recession Levels
Net Sales Compared to Pre- Recession Levels PRANCIAL PERFORMANCE 2007- 2011 ($ in millions) Impact of industry-wide shipments: | Motorhomes - 55% decline (143) jfactured Housing Subtotal - Impact of industry Declines (162.0) (1) Includes market share growth, new product introductions, acquisitions,
Slide 32: Debt Position
Debt Position FINANCIAL PERFORMANCE Cash Utilized for Acquisitions Cash and Net During the YTD (Sin milions) Debt Investments Cash/(Debt) Period 12/31/08 | $ 9 $9 $ : $29 12/31/09 | $ = $ 65 $ 65 $ 2 12/31/10 | $ - $ 440) $ 440) $ 22 12/31/11 | $ - $ 7 $ 7 $ 50 Ul) On December 26,2010, the Company p
Slide 33: Balance Sheet
Balance Sheet FINANCIAL PERFORMANCE (Sin millions) 12/31/08 __ 12/31/09 __ 12/31/10 _ 12/31/11 Total Assets $ 311 $ 288 $ 307 $ 351 Total Debt $ 9 $ - $ - $ - Cash & Investments $ 9 $ 65 $ 44 $ 7 Stockholders’ Equity $ 259 $ 244 $ 243" |$ 277 RATIOS. Days Sales in A/R") 15 days 14days | 13days | 17
Slide 34: Cash Flow
Cash Flow FINANCIAL PERFORMANCE Significant use of cash items since December 31, 2007 $42 million $33 million
Slide 35: Financial Strength
Financial Strength FINANCIAL PERFORMANCE 12/31/08 12/31/09 12/31/10 12/31/11 Retum on Equity 6%) 2%) 1% 11% Retum on Assets 4%) 22) % 9% Total Debt to Equity 0.00 0.00 0.00 0.00 Total Debt to EBITDA" 0.20 0.00 0.00 0.00 (1) EBITDA is operating profit plus depreciation, amortization and goodwill impa
Slide 36: The Future
The Future Increasing RV content RV recovery from recession Demographic tailwind Expanding into adjacent industries © ®G® 6 © Affordable housing recovery
Slide 37: Stock Price History
Stock Price History = Drew has 22 million shares outstanding and a market capitalization of approximately $600 million as of February 9, 2012 2000 2001 2002 2003 2004 2005 2006 2007 10/5/07 2008 (December 31, unless noted) $27 $6 3/9/08 2009 2010 2011 2/9/12
Slide 38: Analyst Coverage
Analyst Coverage Avondale Partners, LLC Bret Jordan — (617) 314-0487 CJS Securities Dan Moore = (914) 287-7600 Sidoti & Company, LLC Scott Stember - (212) 453-7017 Thompson Research Group Kathryn Thompson - (615) 891-6206
Slide 39: Thank you!
Thank you! For more information contact: Fredric M. Zinn President and CEO 914-428-9098 fred@drewindustries.com Joseph S. Giordano Ill CFO & Treasurer 914-428-9098 joe@drewindustries.com OR VISIT OUR WEBSITE: www.drewindustries.com > 4
Slide 40: Reconciliation of Operating Profit to EBITDA and EBITDASO
Reconciliation of Operating Profit to EBITDA and EBITDASO FINANCIAL PERFORMANCE (Sinmitions)’ 200120022003 2004 2005-2006 200720082007 -—«2010 2011 ee, m3|$ 2/3 33)/$ 0]s s77/$ s53]$ 660|$ 199|$ (354 |$ 452/5 485 (se eats 73/8 78/s 93]s 120] 157|s i76|s i7a]s wes }$ 171) 205 fester : -|s -|s -|s -|s
Slide 41: Reconciliation of Segment Results to Consolidated
Reconciliation of Segment Results to Consolidated FnANcin PeRPORUANCE (Sin millions) 12 Months Ended Net Sales: RV Segment $ 491.8 | $368.1] § 3125] $ 477.2|$ 5706 MH Segment 1768 142.4 85.3 95.6 110.5 Total Net Sales $ 668.6 | $5105 | $ 397.8] $ 5728|$ 681.2 Operating Profit: RV Segment $ 60.1]$ 24
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