Slide 1: Second Quarter of Fiscal 2023 Financial Results
www.thorindustries.com SECOND QUARTER OF FISCAL 2023 FINANCIAL RESULTS
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
Slide 3: Second Quarter Fiscal 2023 Highlights
SECOND QUARTER FISCAL 2023 HIGHLIGHTS Resilient Performance in a Challenging Market Environment 3 Net sales of $2.3 billion in 2Q23, down from a fiscal second quarter record of $3.9 billion in the prior - year period ▪ Macroeconomic conditions continued to contribute to softening retail demand and s
Slide 4: Second Quarter Fiscal Year 2023 Backlog and Dealer Inventory
$948.1 $5,253.6 $10,442.9 $1,153.0 $639.9 $812.0 $784.4 $2,916.4 $4,232.5 $1,848.1 $1,142.0 $2,644.2 $3,051.5 $3,055.7 NA Towables NA Motorized European (3) Includes Tiffin backlog subsequent to the December 2020 acquisition of the Tiffin Group 01/31/19 01/31/20 01/31/21 European $0.65 bn 27.6% NA M
Slide 5: North American Towable Segment
($ millions) $1,985.1 $829.8 2QFY22 2QFY23 19.0% 6.4% 2QFY22 2QFY23 NET SALES Decreased 58 . 2 % * driven by a 64 . 6 % decrease in unit shipments in part due to independent dealers restocking their inventory in the prior - year, partially offset by net selling price increases and a change in pr
Slide 6: North American Motorized Segment
NET SALES Decreased 24 . 4 % * driven primarily by a 26 . 3 % decrease in unit shipments, partially offset by net selling price increases and a change in product mix ($ millions) $976.8 $738.6 2QFY22 2QFY23 16.0% 14.5% 2QFY22 2QFY23 GROSS PROFIT MARGIN Decreased 150 basis points* driven prim
Slide 7: European Segment
EUROPEAN KEY DRIVERS • Net sales decreased 3.5% on a constant - currency basis • Strong order backlog of $3.1 billion • Independent dealer inventory levels generally remain below normalized levels NET SALES Decreased 10 . 6 % * driven by a 15 . 3 % decrease in unit shipments due primarily to con
Slide 8: Strong Financial Position
TOTAL LONG - TERM DEBT / TTM EBITDA (3) 1.3x TOTAL LONG - TERM DEBT / TTM ADJUSTED EBITDA (3) 1.2x STRONG FINANCIAL POSITION ($ millions) $256.3 $298.1 $91.3 $185.3 2QFY23 FY23 YTD OPERATING CASH FLOW TOTAL LONG - TERM DEBT (1) ($ millions) (1) Total debt obligations as of January 31, 2023 inclusive
Slide 9: Capital Management Priorities and Fiscal Year 2023 Actions
CAPITAL MANAGEMENT PRIORITIES AND FISCAL YEAR 2023 ACTIONS Invest in THOR’s business ▪ Capex spending of $101.0 million YTD Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.45 in October 2022 ▪ Represents 13th consecutive year of dividend Reduce the Company's debt obligations ▪ Reduc
Slide 10: Full-Year Fiscal 2023 Guidance
FULL - YEAR FISCAL 2023 GUIDANCE KEY ASSUMPTIONS ▪ Full - year guidance was revised to reflect market softness experienced in our second quarter and our expectation that macroeconomic pressures will persist through the balance of our fiscal year ▪ 2 HFY 23 North American wholesale shipments aligned
Slide 11: Key Takeaways
KEY TAKEAWAYS THOR delivered a financially resilient 2 Q 23 performance in a challenging market environment, generating positive results and net cash flow from operations Variable cost model and proactive, disciplined production approach positions our operating companies and independent dealer partn
Slide 12: Appendix
‘APPENDIX ~ — ————.
Slide 13: THOR Overview: The Global RV Industry Leader
THOR OVERVIEW The Global RV Industry Leader WHO WE ARE • Experienced growth - oriented team • Leading brands • Cash generation focus • Customer - centric innovation • 42 years of uninterrupted profitability FOUNDED IN 1980 ~32,000 EMPLOYEES (1) >400 WORLDWIDE FACILITIES (1) ~3,500 INDEPENDENT DEALER
Slide 14: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP ( 1 ) As of calendar YTD December 31 , 2022 . Data reported by Statistical Surveys, Inc is based on official state and provincial records . This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or p
Slide 15: Towable RV Wholesale Market Trends
120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.7 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 217.1 227.6 152.4 257.6 282.8 312.8 326.9 442.0 376.0 426.1 359.4 389.6 544.0 434.9 282.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2
Slide 16: European Caravan and Motorcaravan Registrations
Country Caravans CYTD December 31, 2022 2021 % Change Motorcaravans CYTD December 31, 2022 2021 % Change Total CYTD December 31, 2022 2021 % Change Germany 24,478 24,718 (1.0)% 66,507 81,420 (18.3)% 90,985 106,138 (14.3)% France 7,330 7,446 (1.6)% 24,611 30,822 (20.2)% 31,941 38,268 (16.5)% U.K. 13,
Slide 17: Consumer Trends Support Long-Term RV Industry Growth
17 Repurchase intentions indicate “stickiness” of RV lifestyle Consumer satisfaction among RV owners is very strong RV utilization remains high Interest in the RV lifestyle continues to exceed pre - pandemic levels ~47 % CONSUMER TRENDS SUPPORT LONG - TERM RV INDUSTRY GROWTH Supported by Real Data f
Slide 18: Quarterly Adjusted EBITDA Reconciliation
18 QUARTERLY ADJUSTED EBITDA RECONCILIATION ($ in thousands) TTM Fiscal Quarters Net Income 2QFY22 $ 265,635 3QFY22 $ 346,018 4QFY22 $ 281,787 1QFY23 $ 137,423 2QFY23 $ 25,806 TTM $ 791,034 Add Back: Interest Expense, Net 24,507 22,289 22,576 22,807 25,633 93,305 Income Taxes 80,618 116,389 56,575 4
Slide 19: Investor Relations Contact
www.thorindustries.com INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294 - 7724