Lci Industries · NYSE:LCII
Lci Industries — Investor Presentation (February 2025)
27 slides from Lci Industries's investor presentation, Feb 28, 2025
Slide 1: Investor Presentation March 2025
Investor Presentat ion March 2025
Slide 2: Mission Statement
Mission Statement Whenever, Wherever, We make your experience better. Purpose-Driven Innovation Makes Customer and Consumer Experiences Better
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions,
Slide 4: Poised for Strong Long-Term Performance Targets
Poised for Strong Long-Term Performance Targets Growth & Margin Drivers 4 Continued investment toward innovation and R&D Strong focus on aftermarket repair, replacement and upgrade Further development in automotive aftermarket Expanding presence in diversified end-markets through proven playbook Sca
Slide 5: 2025 Should Mark Significant Progress Toward Targets
2025 Should Mark Significant Progress Toward Targets 5 Improving Environment Capitalize on production environment improvements in both RV and Marine Internal Efficiencies Continue to reduce cost structure to create leverage for the next years of growth Effective Integration & Introduction Gain furth
Slide 6: Lippert at a Glance
Recreational Vehicles Automotive Aftermarket International/Europe RV & Marine Aftermarket Utility Trailers Marine Transportation Products Building Products Other Adjacent Lippert at a Glance $5B Presence in Diverse End Markets (2024 Net Sales) A global leader supplying the outdoor recreation and tra
Slide 7: Proven Resilience, Cash Flow, Discipline and Shareholder Returns
95% Free Cash Flow Conversion(1) (Full Year 2024) 34% Total Net Sales Growth (2020 - 2024) 17 Average Senior Management Tenure at LCI (Years) 4.2% Dividend Yield (Full Year 2024) Net Debt to EBITDA(1) (as of 12/31/2024) 1.7x Proven Resilience, Cash Flow, Discipline and Shareholder Returns 50% Conten
Slide 8: How Lippert Wins Across Multiple End Markets
Metal Fabrication & Welding Lamination Glass Fabrication Furniture Manufacturing Power & Motion Systems Electronics Plastics Forming Manufacturing & Engineering Competencies And Create an Unmatched Product Ecosystem Enable Us to Solve Complex Customer Needs E-Coating & Powder Coating How Lippert Win
Slide 9: Lippert's Competitive Moat
Lippert’s Competitive Moat Our success and share gains are driven by scale, expertise, and people Bundling Capabilities Diversified portfolio is an advantage as customers consolidate vendors Customer Proximity Strategically positioned near OEM partners to reduce lag time and costs Customer Service H
Slide 10: Consistent Market Share, Content, and Net Sales Gains Validate Competitive Advantages
Consistent Market Share, Content, and Net Sales Gains Validate Competitive Advantages Adjacencies 2020 2024 Building Products Net Sales $113M $192M 70% Transportation Products Net Sales $137M $197M 44% Utility Trailer Products Net Sales $117M $271M 132% International Net Sales $237M $394M 66% * Mari
Slide 11: Innovation Fueling Market Share and Content Expansion
Innovation Fueling Market Share and Content Expansion Past product launches Recent product launches 2009 5th Wheel Leveling 2004 Trailer Axles 2010 Entry Doors 2020 Appliances 2012 Awnings 2024 Net Sales Contribution $75M $308M Estimated Addressable Market(1) 4K Series Windows Anti-Lock Brakes Helux
Slide 12: Established Leadership Unlocks Cross-Sell Growth and Content Opportunities
$3,390 $5,097 2020 2024 Established Leadership Unlocks Cross-Sell Growth and Content Opportunities NA RV OEM Net Sales Content Per Towable Unit Market leadership in essential products... Fuels bundling in key strategic lines... Positioning Lippert to capture more of the $3 billion of addressable RV
Slide 13: New Market Diversification Expands Opportunities
$7B $2.5B $1.5B $1B $1B New Market Diversification Expands Opportunities & Insulates Against Cyclicality Adjacent Industries OEM & Aftermarket Net Sales Focus on $13 billion of addressable opportunities through: • Innovation • Replace and repair cycles • Acquisitions Key Growth Areas Proven RV OEM p
Slide 14: Aftermarket Segment Growth Enhancing Diversified Positioning
1.6M Views on Tech Support Seminars Aftermarket Segment Growth Enhancing Diversified Positioning Fostering dealer relationships through trainings to improve knowledge and preference toward Lippert products Dealer Training Creating products our customers want to improve the lifestyle Innovation Acqui
Slide 15: M&A Driving Additional Upside to $5B Revenue Target
To ta l S al es ($ B) $—B $2.0B $4.0B $6.0B Building Products Transportation Products Europe Utility Trailers Marine RV Windows, Chassis Motion Power Systems Axles, Cut & Sew Aftermarket ElectronicsPlastics Furniture Awnings 1956 Founded as B&L Industries, supplying metal roofing to the MH industry
Slide 16: Trusted by Blue Chip Industry Leaders
Lippert's commitment to delivering high-quality components, on- time delivery and exceptional aftermarket support enables Alliance RV to provide best-in-class products to our dealer network across North America Lippert's outstanding customer service, willingness to innovate, strong relationship with
Slide 17: Anticipated Strong RV Recovery Ahead
Historically the RV market rebounds by an average of 101% over the 4-8 years following a shipment downturn Anticipated Strong RV Recovery Ahead RV Industry Showing Signs of Recovery • First YoY retail growth in 40 months in 4Q24 • Dealer inventories at or near historic lows • Many dealers reporting
Slide 18: Optimized Operations Boosting Profitability
Optimized Operations Boosting Profitability 11% Negatives 3% 2022 • 37% RV shipment decline • Lower commodity-linked selling prices • Fixed costs deleverage Operating Margin: 2023 Positives • Lower material & freight costs • Aftermarket mix impact • Lower warranty costs • Facility consolidation • Ov
Slide 19: A Visionary Leadership Team Driving Long-Term Growth
A Visionary Leadership Team Driving Long-Term Growth Jason Lippert President & Chief Executive Officer Time with Lippert: 29+ Years Ryan Smith Group President of North America Jamie Schnur Group President of Aftermarket Lillian Etzkorn Chief Financial Officer Time with Lippert: 18+ Years Time with L
Slide 20: Strategic Capital Deployment Driving Shareholder Value
Strategic Capital Deployment Driving Shareholder Value Historical Use of Cash Forward-Looking Capital Allocation Priorities • Strategic Acquisitions to expand presence in existing markets • Reinvestment back into the business • Returning value to shareholders • Reducing Leverage Strong History of Ca
Slide 21: Historical Financials
Historical Financials 21 ($ B ill io ns ) Net Sales 2022 2023 2024 2027 Target $— $2.0 $4.0 $6.0 ($ B ill io ns ) G ross M argin Gross Profit & Margin 2022 2023 2024 2016 (Peak %) $— $0.5 $1.0 $1.5 —% 10% 20% 30% ($ M ill io ns ) O perating M argin Operating Profit & Margin 2022 2023 2024 2016 (Peak
Slide 22: Growth Pillars Support Sustainable Organic Growth
Growth Pillars Support Sustainable Organic Growth Investing in R&D & Innovation Investing in Automation & Efficiency Expanding Content in RV OEM Growing Share in Adjacent Markets $3.7B 2024A Net Sales $5.0B 2027 Target Revenue 10% 3 Year CAGR Growing Share in Aftermarket 22
Slide 23: Appendix
Appendix
Slide 24: Consolidated Income Statements
Appendix 24 ($ in millions except per share data) 2018 2019 2020 2021 2022 2023 2024 Net Sales $ 2,476 $ 2,371 $ 2,796 $ 4,473 $ 5,207 $ 3,785 $ 3,741 Operating Profit $ 199 $ 200 $ 223 $ 398 $ 553 $ 123 $ 218 % of Sales 8.0% 8.4% 8.0% 8.9% 10.6% 3.3% 5.8% Net Income $ 149 $ 147 $ 158 $ 288 $ 395 $
Slide 25: Consolidated Balance Sheets
Appendix 25 ($ in millions) 2018 2019 2020 2021 2022 2023 2024 Cash & Equivalents $ 15 $ 35 $ 52 $ 63 $ 47 $ 66 $ 166 Accounts Receivable 122 200 269 320 214 215 200 Inventory 341 394 494 1,096 1,030 768 737 Other Assets 766 1,234 1,483 1,809 1,956 1,910 1,792 Total Assets $ 1,244 $ 1,863 $ 2,298 $
Slide 26: Reconciliation of Non-GAAP Measures
26 Appendix Reconciliation of Non-GAAP Measures EBITDA Twelve Months Ended December 31, ($ in thousands) 2024 2023 2022 Net income $ 142,867 $ 64,195 $ 394,974 Interest expense, net 28,899 40,424 27,573 Provision for income taxes 46,471 18,809 130,481 Depreciation and amortization 125,693 131,768 12
Slide 27: Industry Statistics Summary
— Appendix LCI Industries Industry Statistics Summary TOTAL RECREATIONAL VEHICLES (RV) [ Retail Units @ Dealer Inventory Impact, iM ‘Yip Worth YD 493.268 17,5660 28% 448,626, 2a? 4 460,322 21,426 21426 46,731 432,875 25.979 20% 47 405 z MT (674) 78,600 -54% 399.966 37,646 -23% 86,051 423,367 (E777)
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