THOR Industries, Inc. · NYSE:THO
THOR Industries — Investor Day (June 2022)
99 slides from THOR Industries's investor day presentation, Jun 27, 2022
Slide 1: Welcome to Investor Day 2022
Welcome to Investor Day 2022 June 27, 2022 Jackson Center, Ohio
Slide 2: Overview
Overview Mark Trinske Vice President of Investor Relations 2 THOR Investor Day 2022
Slide 3: Agenda
Agenda Welcome 9:00 am Peter Orthwein,THOR Industries Co-founder & Chairman Emeritus Opening Remarks Bob Martin, Chief Executive Officer THOR’s People Journey Ken Julian, Senior Vice President of Administration & Human Resources Who We Are and How We’ve Performed Todd Woelfer, ChiefOperating Officer
Slide 4: 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 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193
Slide 5: Welcome
Welcome Peter Orthwein THOR Co-founder and Chairman Emeritus THOR Investor Day 2022 draft v22 - 6.13.22
Slide 6: History of THOR
History of THOR 6 THOR Investor Day 2022
Slide 7: Opening Remarks
Opening Remarks Bob Martin President and Chief Executive Officer THOR Investor Day 2022 draft v22 - 6.13.22
Slide 8: Welcome
Welcome NEW STATE-OF-THE-ART NEW MANUFACTURING AIRSTREAM AIRSTREAM FACILITY FACILITY HERITAGE CENTER 8 THOR Investor Day 2022
Slide 9: Leadership Team with Extensive RV Industry Experience
Leadership Team with Extensive RV Industry Experience Bob Martin Colleen Zuhl Todd Woelfer Ken Julian Trevor Gasper President & Chief Senior Vice President & Senior Vice President & Senior Vice President of Senior Vice President, General Executive Officer Chief Financial Officer Chief Operating Offi
Slide 10: Senior Operations Management
Senior Operations Management Long-term History of Successfully Operating Through Up and Down Business Cycles THOR Company Presidents & Years Industry Experience Jeff Rutherford, Airxcel – 27 Darin Elswick, CrossRoads – 30 Kyle Kwasny, Dutchmen – 18 Alex Leopold, Erwin Hymer Group – 7 Ryan Juday, Hea
Slide 11: Our Forecast History: 2025 Financial Goals and Actual Performance
Our Forecast History: 2025 Financial Goals and Actual Performance 2025 Goals (Announced in Oct. 2019) April 30, 2022 NET SALES $14.0B $16.1B (1) GROSS MARGIN 16.0% 17.0% (1) CUMULATIVE NET CASH FROM OPERATIONS $3.0B >$1.7B (2) (FY 20 – FY 25) (1) TTM as of April 30, 2022 (2) Cumulative FY 20 – April
Slide 12: Our Vision: 5-Year Performance Projections
Our Vision: 5-Year Performance Projections By the end of Fiscal Year 2027, THOR projects: At THOR, we have consistently NET SALES $20B taken a long-term view of our business. Whether considering 17% SUSTAINABLE GROSS investments in new plants, MARGIN acquisitions or our people, we make decisions we
Slide 13: THOR's People Journey
THOR’s People Journey Ken Julian Senior Vice President of Administration and Human Resources 13 THOR Investor Day 2022 13
Slide 14: Shareholder Value Through Our People Journey
Shareholder Value Through Our People Journey EMPLOYER OF CHOICE Our Purpose and People Focused Open and Honest Living Our Core Values Commitments Feedback THOR Investor Day 2022 14
Slide 15: Our People Journey: The Pathway to be the Employer of Choice
Our People Journey… The Pathway to be the Employer of Choice SAFE/COMPLIANT WORK ENVIRONMENT INCLUSIVE WORKPLACE WELLNESS/ WELL-BEING DIVERSE AND EQUITABLE INITIATIVES PEOPLE DEVELOPMENT THOR Investor Day 2022 15
Slide 16: Who We Are and How We've Performed
Who We Are and How We’ve Performed Todd Woelfer Senior Vice President and Chief Operating Officer Colleen Zuhl Senior Vice President and Chief Financial Officer 16 THOR Investor Day 2022
Slide 17: Strong Cash Generation and ROIC = Long-Term Shareholder Value
FREE CASH FLOW (1) WHO WE ARE ($ millions) $434 $398 $378 EXPERIENCED GROWTH-ORIENTED TEAM $304 $328 LEADING BRANDS CASH GENERATION FOCUS FY17 FY18 FY19 FY20 FY21 CUSTOMER-CENTRIC INNOVATION 18.0% (1) FIVE YEAR ROIC (FY 2017-2021) 42 YEARS OF UNINTERRUPTED PROFITABILITY Strong Cash Generation and RO
Slide 18: THOR Overview: The Global RV Industry Leader
THOR Overview: The Global RV Industry Leader OUR ESSENCE Under One Sky OUR PURPOSE >30,000 397 ~3,500 Inspiring and empowering (1) (1) (1) FOUNDED IN 1980 EMPLOYEES FACILITIES WORLDWIDE INDEPENDENT DEALERSHIP people to Go Everywhere. Stay Anywhere.TM LOCATIONS $16.1B $1.1B $1.8B TTM NET INCOME TTM N
Slide 19: Leadership Positions Within Each of Our Product Categories
Leadership Positions Within Each of Our Product Categories N O R T H A M E R I C A N E U R O P E A N Travel Trailers Fifth Wheels Class A Class C Class B All RV Segments CATEGORY MARKET 18.0% SHARE (1) 40.4% 43.6% 39.9% 50.9% 54.2% MARKET POSITION (1) #1 #1 #1 #1 #1 #2 (1) As of calendar YTD April 3
Slide 20: Market Leadership Position Established by Key Competitive Advantages
Market Leadership Position Established by Key Competitive Advantages CONSUMER-CENTRIC EXPERIENCED & PROVEN UNRIVALED SCALE INNOVATION FOCUS MANAGEMENT TEAM FAST, FLEXIBLE & FOCUSED STRONG PEOPLE & COMMUNITY DECENTRALIZED BUSINESS BALANCE SHEET 20 THOR Investor Day 2022
Slide 21: Fast + Flexible + Focused
Fast + Flexible + Focused Our decentralized business model and highly variable cost structure = 40+ years of profitability and strong cash flow from operations FA S T FLEXIBLE FOCUSED Decentralized business model Focus on assembly, not heavy Our business model is focused allows us to quickly adapt t
Slide 22: THOR's History of Strong Financial Performance
THOR’s History of Strong $18,000 $1,200 Financial Performance $16,000 $1,000 $14,000 SUCCESSFUL HISTORY OF MANAGING Net income attributable to THOR ($ millions) (1) THROUGH DOWN CYCLES (1) $12,000 $800 • THOR has generated a net profit in Net Sales ($ millions) $10,000 every fiscal year since its fo
Slide 23: Management Team has Delivered Outstanding Growth
Management Team has Delivered Outstanding Growth 9-YEAR CAGR FY 2012 (1) FY 2021 CHANGE (2012-2021) Net Sales $3.1B $12.3B +299% 16.6% Gross Profit $ $356.8M $1,895.0M +$1,538.2M 20.4% Gross Margin % 11.6% 15.4% +382 bps Net Income attributable to THOR $121.7M $659.9M +442% 20.7% Adjusted EBITDA (2)
Slide 24: Successful History of Acquisitions
Successful History of Acquisitions 2014 2015 2016 2018 2019 2020 2021 NBT PERFORMANCE SINCE PRE-ACQUISITION(1) ($ millions) Pre-acquisition period FY 21 KZ Postle Cruiser/DRV Jayco EHG Tiffin 20.3% 15.6% 13.8% 7.5% 5.5% 8.7% 6.6% 5.5% 4.8% 4.4% 3.6% 2.5% FY 14 FY 21 FY 15 FY 21 FY 15 FY 21 FY 16 FY
Slide 25: Favorable Debt Profile
Favorable Debt Profile TOTAL DEBT (1) ($ millions) FAVORABLE DEBT MATURITY PROFILE ABL Other $100 $82 • Term Loan B (TLB) due in FY26 – current weighted average interest rates of 4.59% (USD tranche) (floating and fixed) and TLB Unsecured Notes Total Debt 3.00% (EUR tranche) (floating, not hedged) $1
Slide 26: Excellent Liquidity with Strong Cash Flow from Operations
5-year cumulative cash flow Excellent Liquidity with from operations of $2.5B $989 Strong Cash Flow from 5-year cumulative cash flow from operations of $1.0B Operations $541 $526 $508 $467 $419 $341 THOR EMPLOYS A CONSERVATIVE $233 $248 BALANCE SHEET STRATEGY FOCUSED ON: $122 $145 $149 $101 $115 $11
Slide 27: THOR's Strategic Approach to Leveraging Our Scale
THOR’s Strategic Approach to Leveraging Our Scale DEALER RELATIONS PRODUCT VENDOR DEVELOPMENT RELATIONS & INNOVATION BEST-IN-CLASS SOURCING PROCESSES 27 THOR Investor Day 2022
Slide 28: Innovation Focus has Always been Core to THOR's Success
Innovation Focus has Always been Core to THOR’s Success • Business Model Innovation • Roadpass Digital • Data Strategy • Strategic Partnerships PENDING PATENT APPLICATIONS LIVE PATENTS 121 35 200 97% of these have been issued of these have been filed since 2020 since 2017 28 THOR Investor Day 2022
Slide 29: Leading the RV Industry in our ESG Initiatives
Leading the RV Industry in our ESG Initiatives ENVIRONMENTAL SOCIAL GOVERNANCE • In 2020, THOR became a signatory to the “Business • Comprehensive DE&I program across the Continual focus on: Ambition for 1.5’C” with a commitment to achieve organization that includes greater diversity in • Board comp
Slide 30: Key Highlights of THOR's ESG Leadership
Key Highlights of THOR’s ESG Leadership KEY ACCOMPLISHMENTS THOR is driving ESG and DEI commitment EHG became the first major RV OEM to Significant investment in ESG-focused initiatives through the RV industry and overarching operate net neutral GHG emissions late in our including: outdoor economy a
Slide 31: Who We Are Recap
Who We Are Recap Experienced leadership team that has delivered 1 growth oriented results Business model that has prospered through all 2 market conditions Strong cash flow generation matched with favorable 3 debt profile creates strong liquidity 4 Market share leader with leading brands Focused peo
Slide 32: THOR's Strategic Framework to Drive Long-Term Growth
THOR’s Strategic Framework to Drive Long-Term Growth Todd Woelfer Senior Vice President and Chief Operating Officer Colleen Zuhl Senior Vice President and Chief Financial Officer 32 THOR Investor Day 2022
Slide 33: Our Strategic North Star
Our Strategic North Star Our strategy will lean into our scale as we invest in opportunities to grow our earnings, drive important initiatives including ESG and DE&I, and create true competitive advantage in a changing world. Our strategy will thereby enable us to continue to improve our Company and
Slide 34: Maximizing Shareholder Value through Disciplined Capital Allocation
Maximizing Shareholder Value through Disciplined Capital Allocation A balanced approach to capital allocation • We will continue to actively and prudently manage our balance sheet and our liquidity to ensure maximum flexibility LIQUIDITY and minimize risks, creating a strong buffer and increased bus
Slide 35: Enterprise-wide Focus on Operational Excellence
Enterprise-wide Focus on Operational Excellence Product Quality Production Capacity Focus areas to drive best-in-class dealer and user Automation experience Employee Retention Brand Quality 35 THOR Investor Day 2022
Slide 36: THOR's Strategic Approach to Automation
THOR’s Strategic Approach to Automation • Improved Operating Efficiency THOR’s automation strategy • Improved Quality holistically looks at our global operations that could • Increased Capacity and Growth benefit from automation rather than a series of use cases that are adopted • Freeing Up Human C
Slide 37: Automation Case Study: Laminated Sidewall Line
Automation Case Study: Laminated Sidewall Line THOR LAMINATED SIDEWALL LINE OUTCOMES BACKGROUND • Robotic milling, routing and welding delivers best-in-class Reduced rework and direct efficiency and quality labor High frequency of warranty • Automated material handling to reduce non-value add labor
Slide 38: THOR's Strategic Approach to Innovation
THOR’s Strategic Approach to Innovation THOR is dedicated to leading the industry in innovation THOR is focused on innovation strategies that will deliver enterprise value THOR is making investments to deliver innovation with the right market timing 38 THOR Investor Day 2022
Slide 39: Strategic Vision to Establish North American Aftermarket and Service Business
Strategic Vision to Establish North American Aftermarket and Service Business (1) GROWTH LEVERS • Airxcel acquisition adds aftermarket parts distribution service utilizing a rapid delivery system (1) • Nationwide system of service centers of qualified RV technicians • Roadpass Digital platform Signi
Slide 40: Digital a Key Piece to THOR's Strategic Trajectory
Digital a Key Piece to THOR’s Strategic Trajectory 6M ROADPASS NEW REGISTERED USER GROWTH Now that Roadpass Digital has gained a critical mass of users, for THOR it will: • Create a pathway to monetization 2015 2016 2017 2018 2019 2020 2021 2022 • Be a key driver of THOR’s aftermarket and service st
Slide 41: Investing to Attract and Retain RV Consumers
Investing to Attract and Retain RV Consumers Increasing RV Lifestyle Broad Consumer Reach Connected Strategic Empowerment Participation Through Diversified Technology of Digital Assets Product Offering 41 THOR Investor Day 2022
Slide 42: Guiding Principles to our TechNexus Partnership
Guiding Principles to our TechNexus Partnership A portfolio of opportunities for THOR by building: • Teams of entrepreneurs that are focused on driving value and aligning strategic partnerships that matter to THOR… • With a diversified view that enables identification of new technologies, new busine
Slide 43: Unlocking Value in Data
Unlocking Value in Data Internal Documents and Governance Productivity Dealer Enhancement Communications THOR’s Data Personalized Quality Value-Creation Customer Experience Opportunities Digital Product Commerce Development Innovation THOR Has Entered Into an Arrangement With a Proven Data Analytics
Slide 44: A History and Commitment to Return Meaningful Capital to Shareholders
A History and Commitment to Return Meaningful Capital to Shareholders QUARTERLY DIVIDENDS • 10 year CAGR of 11.8% as dividends 12 $0.43 $0.41 $0.40 $0.39 increased from $0.15 to $0.43 quarterly $0.37 $0.33 Dividends Paid special dividends of $1.50 in FY 13 $0.30 • $0.27 CONSECUTVE $0.23 and $1.00 in
Slide 45: THOR's Strategic Approach to Acquisitions
THOR’s Strategic Approach to Acquisitions GROW CORE BUSINESSES AND STRENGTHEN THOR’S POSITIONING IN RV INDUSTRY HOW WE ADD VALUE Strategic Filters Additional Strategic Filters • Revenue diversification • Growth capital • Complementary product offering • Geographic expansion • Best practices • New pr
Slide 46: Strategic Framework Recap
Strategic Framework Recap Key elements to strategic growth Continuous margin improvement through operational 1 excellence initiatives 2 Proven and time-tested M&A strategy Centrally led innovation and data strategies focus on 3 creating competitive advantages Aftermarket and service strategies creat
Slide 47: North American Operations Update
North American Operations Update Matt Zimmerman North American RV Group Manager 47 THOR Investor Day 2022
Slide 48: North American RV Industry Leader
North American RV Industry Leader N O R T H A M E R I C A N TO WA B L E Class C 16 COMPANIES 14.3% Class B 3.9% Travel 140+ BRANDS Trailers $8.9B Class A 42.7% 11.8% TOP 10 MODELS IN FY 2021 NET SALES 28 RESPECTIVE PRODUCT CATEGORIES Fifth Wheels ~2,200 DEALERS 27.3% #1 >250 FACILITIES NORTH AMERICA
Slide 49: THOR's Progressive Decentralized Model
THOR’s Progressive Decentralized Model Centralized guidance focused on: • Disciplined production • Distribution model • Variable cost structure • Best practices 49 THOR Investor Day 2022
Slide 50: Strategic Priorities – North America
Strategic Priorities – North America INDUSTRY-LEADING OPERATIONAL QUALITY FOCUS SUPERIOR PRODUCT EXCELLENCE CUSTOMER EXPERIENCE Foundational Set of Principles that Enhance our Market-leading Position 50 THOR Investor Day 2022
Slide 51: Industry-Leading Product
Industry-Leading Product Consumer-centric driven innovation focused on: • New products in fast growing categories 60% • Differentiating features and technologies of THOR products are standard with, or capable of being powered • Catering to younger first-time buyers by solar and battery technology •
Slide 52: Best-in-Class Operational Excellence
Best-in-Class Operational Excellence Centralized oversight leads to: INVENTORY MANAGEMENT • Protection of margins • Increased market share • Preserving brand value • Enhancing dealer relationships DISTRIBUTION "SMART GROWTH" STRATEGY 52 THOR Investor Day 2022
Slide 53: Investing in Quality
Investing in Quality PEOPLE TOOLS PROCESSES 200+ DSI awards received since 2010 53 THOR Investor Day 2022
Slide 54: Focused on Delivering a Superior Customer Experience
Focused on Delivering a Superior Customer Experience CONNECTING CUSTOMERS 1 WITH EXPERIENCES 2 ELIMINATE ANXIETY 3 CUSTOMER CARE • Concierge service • Owner apps • Rapid-response fleets • Community • Reservations • Expedited parts and services • Digital tools • Branded POIs • Extended customer servi
Slide 55: Strong History of Market Share Leadership
Strong History of Market Share Leadership #1 (1) (1) 40.4% TOWABLES MARKET SHARE MOTORIZED MARKET SHARE TRAVEL TRAILERS (2) 47.7% 49.2% 43.6% 45.1% 44.3% 44.7% FIFTH WHEELS (2) 41.4% 40.8% 40.1% INDUSTRY LEADER 50.9% IN ALL SEGMENTS (4) CLASS A (2) 39.9% (3) (3) (3) (2) (3) (3) (3) CLASS B (2) (2) C
Slide 56: North American Outlook
North American Outlook • Calendar year 2022 retail projected to be a top six year on record for the North American RV industry RETAIL • Record numbers of millennials and Gen Xers entering the lifestyle • Towable inventory levels normalized with very healthy aging of product DEALER INVENTORY • Motori
Slide 57: Our Long-Term Optimism is Supported by Real Data from RVers
Our Long-Term Optimism is Supported by Real Data from RVers 95% of new RVers 97% of lightweight owners 97% 68% of current RV owners are happy with their are happy with their intend to repurchase a purchase (1) purchase (1) of B van owners new RV in the next are happy with their 5 years (2) units (1)
Slide 58: North American Key Takeaways
North American Key Takeaways 1 #1 in every product category in which we we participate with leading, iconic brands 2 THOR’s progressive decentralized business model is the foundation to its success 3 Highly profitable segments through best-in-class operational excellence, innovation and quality 4 We
Slide 59: Operating in the THOR Family of Companies – An Airstream Perspective
Operating in the THOR Family of Companies – An Airstream Perspective Bob Wheeler President and Chief Executive Officer, Airstream 59 THOR Investor Day 2022 draft v22 - 6.13.22
Slide 60: Airstream Business Update
Airstream Business Update • Dealer inventories at 23% of optimal DEMAND • 75% of production units retail sold • Lead times between 36 and 50 weeks • 725K sq. ft. facility opened 1/2020 • 675K sq. ft. of manufacturing space, offices, PRODUCTION and Heritage Center • Motorhomes upgraded as well • Supp
Slide 61: Airstream's Strategic Goals
Airstream’s Strategic Goals 01 Increase Output 02 Invest in a Digital Future (CDP) 03 Quality Management System 04 Culture of Engagement 61 THOR Investor Day 2022
Slide 62: Benefits of Operating in THOR's Progressive Decentralized Model
Benefits of Operating in THOR’s Progressive Decentralized Model 62 THOR Investor Day 2022
Slide 63: European Operations Update
European Operations Update Troy James Senior Vice President of International Business Operations 63 THOR Investor Day 2022 63
Slide 64: Erwin Hymer Group at a Glance
Erwin Hymer Group at a Glance Net Sales ($ millions) FY20 $2,485 FY21 $3,200 (2) TTM FY22 $3,051 Motorhomes Other > 9,000 (1) NBT ($ millions) 10.9% Employees Caravan FY20 $10 9.1% FY21 $117 $3.2B Campervan TTM FY22 $88 (2) 55.6% FY 2021 NET SALES 21 (1) Brands 24.4% EBITDA(³) ($ millions) FY20 $118
Slide 65: Erwin Hymer Group
Erwin Hymer Group ACCESSORY AND SERVICE PRODUCT BRANDS BRANDS 65 THOR Investor Day 2022
Slide 66: Production Portfolio
Sassenberg (DE) Production Portfolio Brands: LMC, Bürstner, Dethleffs, Eriba, Carado Products: Consett (UK) Brands: Xplore, Elddis, Buccaneer, Compass Products: Bad Waldsee (DE) Brands: Hymer, Eriba Consett Products: Polch (DE) Brands: Niesmann+Bischoff Products: Sassenberg Isny (DE) Nova Sól Brands
Slide 67: Products
PRODUCTS 67 THOR Investor Day 2022
Slide 68: Product Portfolio – Recreational Vehicles
Product Portfolio – Recreational Vehicles A full product range is offered across all market categories and segments URBAN VEHICLES CAMPERVANS MOTORHOMES CARAVANS 68 THOR Investor Day 2022
Slide 69: Product Portfolio – Complementary Business
Product Portfolio – Complementary Business Complementary Customer and Margin Enhancement focused business units MULTICHANNEL ACCESSORIES WHOLESALE BRAND TECHNICAL ACCESSORIES RENTAL 69 THOR Investor Day 2022
Slide 70: Market Evolution
MARKET EVOLUTION 70 THOR Investor Day 2022
Slide 71: Market Evolution
Urban Vehicle Campervan Market Evolution Motorhome Caravan Market situation is a direct result of difficulties in the supply chains - not a drop in retail demand 350,000 317,230 300,000 +54.1% -7.7% 284,520 260,958 25.1% 250,000 236,927 240,750 28.0% 212,216 30.3% 202,170 200,000 190,389 32.1% 34.5%
Slide 72: Market Share Evolution
Market Share Evolution Motorhome Market Share 34.1% 35.2% 34.6% 35.3% 37.1% 35.5% 35.5% 30.1% Market leader in the Motorhome segment CY 15 CY 16 CY 17 CY 18 CY 19 CY 20 CY 21 CY 22 YTD Fastest growing Campervan manufacturer Campervan Market Share 10.5% 12.9% 12.9% in the industry since 2018 9.1%
Slide 73: Sales
SALES 73 THOR Investor Day 2022
Slide 74: Dealer Network
Dealer Network Unrivalled network of 1,100 dealers including 400 exclusive EHG dealers Others 17.0% Italy 2.8% Netherlands 3.0% Great Britain 4.3% 9.5% 63.4% France Germany Active dealers >80% of EHG sales are to 5 countries (1) per country: 0 - 50 > 50 > 100 74 > 300 (1) FY 21 THOR Investor Day 202
Slide 75: Dealer Inventory Levels
Dealer Inventory Levels -34.0% Historically low dealer inventory levels Motorhomes 39.0% across all core European markets and product segments Most core market inventory levels are 19.0% 18.0% significantly lower than the rest of Europe Campervans 14.0% 5.0% 7.0% Dealer inventory is not expect
Slide 76: Driven to Exceed Expectations
DRIVEN TO EXCEED EXPECTATIONS 76 THOR Investor Day 2022
Slide 77: Driving Gross Margin Expansion
Driving Gross Margin Expansion 200BPS DRIVERS of gross margin expansion • Pricing to offset cost inflation • Innovation focused on product differentiation 15.8 % • Operational excellence 13.8 % • Value analysis and cost engineering • Production orientated and lean principles • Global and dual sourci
Slide 78: Strategic Priorities
Strategic Priorities OPERATIONAL INNOVATION & PRODUCTS & EXCELLENCE DIGITAL PRICING Supply Chain: diversification Innovation: new product Products: accelerate new and continuous cost-reduction development focused on product introductions and initiatives differentiation and improved expand segments p
Slide 79: Operational Framework for Excellence and Enhanced Profitability
Operational Framework for Excellence and Enhanced Profitability VALUE ANALYSIS AND GLOBAL AND MULTIPLE SOURCING COST ENGINEERING Diversify our supply chain Offset inflation-related costs with Drive efficiencies and cost savings continuous improvement processes initiatives within supply chain a
Slide 80: Operations – Strategic New Location
Operations – Strategic New Location Rationale: Enhanced margin opportunity and expanded product offering Berlin Strategic Location: Nova Sól, Poland Special Economic Zone Nova Sól Approximately 125 miles away from our Neustadt i. S. 125 miles location in Neustadt, Germany Proximity to Stel
Slide 81: Innovation
Innovation • Unlocking new customer segments with innovative travel concepts and patented designs • Intuitive, Convenient, Connected: connectivity solutions for the Caravan and Motorhome of today and tomorrow • Strategic Global Cooperation and development with chassis OEM’s for the electrified futur
Slide 82: Innovation for the Leisure Experience
Innovation for the Leisure Experience 82 THOR Investor Day 2022
Slide 83: Key Takeaways
Key Takeaways Top line expected to return when the supply chain normalizes as demand remains strong and 1 dealer inventory levels remain at historically low levels Strong focus on operational excellence through diversified and strategic sourcing, standardization, 2 and lean implementation to optimiz
Slide 84: Our Vision: Market Outlook, Downside Scenario and Updated Five-Year Goals
Our Vision: Market Outlook, Downside Scenario and Updated Five-Year Goals to Create Shareholder Value Todd Woelfer Senior Vice President and Chief Operating Officer Colleen Zuhl Senior Vice President and Chief Financial Officer 84 THOR Investor Day 2022
Slide 85: Long-Term Outlook Favorable, Macro Environment Will Shape FY2022 and FY2023
Long-Term Outlook Favorable, Macro Environment Will Shape the Balance of Fiscal Year 2022 and Fiscal Year 2023 MACRO FACTORS CADENCE • Expect demand to be muted by macro factors for the remainder of FY 22 and into the beginning of FY 23, but believe it to DEMAND be temporary as the underlying dynami
Slide 86: A Look at a Downside Scenario
A Look at a Downside Scenario ASSUMPTIONS AND DRIVERS NET SALES $10.7B • Assumes a decrease of approximately 35% from TTM sales GROSS MARGIN 14.0% LEVERS WE CAN PULL DURING A DOWNTURN ADJUSTED EBITDA (1) $900M • Production rates • Quickly consolidate production plants ADJUSTED EBITDA % 8.4% • Headco
Slide 87: THOR's Past Results Demonstrate its Resilience in Down Markets
THOR's Past Results Demonstrate its Resilience in Down Markets NORTH AMERICAN INDUSTRY (2) THOR NORTH AMERICAN PERFORMANCE (1) WHOLESALE SHIPMENTS FY 08 FY 09 FY 10 350,000 Shipments SALES ($ THOUSANDS) $2,224,955 $1,115,006 $1,848,549 300,000 down 53% THOR has maintained 250,000 UNITS 84,751 45,465
Slide 88: Our Vision: 5-Year Performance Projections
Our Vision: 5-Year Performance Projections ASSUMPTIONS AND DRIVERS By the end of Fiscal Year 2027, THOR projects: • Calendar year 2027 North American retail projected to be between 585,000 and 630,000 units for the RV industry NET SALES $20B • Maintain market share leadership positions with continue
Slide 89: Closing Remarks
Closing Remarks Bob Martin President and Chief Executive Officer THOR Investor Day 2022
Slide 90: Key Takeaways
Key Takeaways Strong and experienced leadership team with a proven track record of managing through 1 business cycles Market-leading position in both North America and Europe with focused strategy to expand the 2 leadership position and grow operating results Strategic growth initiatives in automati
Slide 91: Q&A Session
Q&A Session All Presenters 91 THOR Investor Day 2022
Slide 92: Appendix
Appendix 92 THOR Investor Day 2022
Slide 93: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted EBITDA Fiscal Year Ended July 31, TTM Ending ($ in thousands) 2012 2019 2020 2021 April 30, 2022 Net Income $ 121,739 $ 132,465 $ 221,384 $ 660,870 $ 1,087,778 Add Back: Interest Expense, Net (3,205) 60,032 104,206 93,545 86,475 Income Taxes 58,952 52,201
Slide 94: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Debt Leverage As of and for the Twelve Months Ended ($ in thousands) July 31, 2019 July 31, 2020 July 31, 2021 April 30, 2022 Total long-term debt, net, less current portion $ 1,885,253 $ 1,652,831 $ 1,594,821 $ 1,983,596 Plus: Current portion 17,370 13,817 12
Slide 95: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Downturn Scenario - Adjusted EBITDA ($ in thousands) Downturn Scenario Net Income $ 365,000 Add Back: Interest Expense, Net 86,000 Income Taxes 115,000 Depreciation and Amortization 290,000 EBITDA $ 856,000 Add Back: Stock-Based Compensation Expense 44,000 Adjuste
Slide 96: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures European Segment EBITDA Fiscal Year Ending Fiscal Year Ending TTM Ending ($ in thousands) July 31, 2020 July 31, 2021 April 30, 2022 Income Before Income Taxes $ 9,850 $ 116,576 $ 80,121 Add Back: Interest Expense, Net 4,783 4,555 2,744 Depreciation and Amortizati
Slide 97: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Free Cash Flow Fiscal Year Ended July 31, ($ in thousands) 2017 2018 2019 2020 2021 Net Cash Flows Provided by Operating Activities $ 419,333 $ 466,508 $ 508,019 $ 540,941 $ 526,482 Less: Capital Expenditures 115,027 138,197 130,224 106,697 128,835 Free Cash Flows
Slide 98: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ROIC % FY17 - FY21 ($ in thousands) 5-Year Average Income Before Income Taxes (1) $ 498,312 July 31, 2016 July 31, 2021 Invested Capital Total Stockholders' Equity $ 1,265,222 $ 2,948,106 Add Back: Long-term Debt 360,000 1,594,821 Deferred Income Tax Liabilities,
Slide 99: Thank You
THANK YOU Investor Day 2022 Mark Trinske Vice President of Investor Relations Mike Cieslak, CFA Investor Relations Manager ir.thorindustries.com