Thor Industries, Inc. · NYSE:THO
Thor Industries — Merger or Acquisition (September 2018)
21 slides from Thor Industries's merger presentation, Sep 18, 2018
Slide 1: Thor's Acquisition of Erwin Hymer Group Creates The Premier Global RV Manufacturer
Thor’s Acquisition of Erwin Hymer Group Creates The Premier Global RV Manufacturer
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking information related to Thor Industries, Inc., and the acquisition of the Erwin Hymer Group (EHG), that is based on current expectations and involves substantial risks and uncertainties that could cause actual results, performance,
Slide 3: Thor has agreed to acquire Erwin Hymer Group
3 Thor has agreed to acquire Erwin Hymer Group (“EHG”) for an enterprise value of approximately €2.1 billion, with the purchase price to be funded with cash and equity. Equity consideration will consist of approximately 2.3 million shares of Thor. Thor is the #1 manufacturer in North America with ov
Slide 4: Strategic rationale
4 Strategic rationale Creates the #1 Global RV Manufacturer with a Leading Portfolio of Brands, Dealer Network and Global ReachEstablishes a Leading Position in Growing European RV Market with a Complementary and Geographically Diverse Product PortfolioSignificant Mutual Benefits Derived from Sharin
Slide 5: Erwin Hymer Group key statistics
5 Erwin Hymer Group key statistics 1957HYMER FAMILY BEGAN Recreational vehicle production ~62Kunits sold in FYE 2018 24Renowned brands €2.5BForecasted fy18 sales ~7,300Dedicated team members in 2018 9RV Production facilities in Germany, UK, Italy and Canada ~1,200Dealers across 35 countries ~29%Euro
Slide 6: Erwin Hymer Group overview
6 Erwin Hymer Group overview Motor Caravans68% Campervans17% Caravans15% By type3 €2.0bn 1 EHG’s FYE 08/31/17; 2 Total revenues; 3 Vehicle revenues only, excludes revenues from accessories, services, rental, and others; 4 Exchange rate of USD / EUR:1.16 Vehicles 90% Owndealerships 4% By segment2 Acc
Slide 7: Select EHG brands
7 Select EHG brands Notes: Brands ordered alphabetically; CB – Class B campervan; M – Class A / C; T – Towable; Exchange rate of USD / EUR:1.16Excludes UK brands (Elddis, Xplore, Compass, and Buccaneer) and off-road accessories (Cliffride and American Fastbacks) Segment Products Price (€k) Price ($k
Slide 8: Product line-up spans across multiple price points and categories
8 Product line-up spans across multiple price points and categories Motorized recreational vehiclesPrice range1:€32,000–€180,000$37,100–$208,800 Towable recreational vehiclesPrice range1:€8,700–€45,000$10,100–$52,200 Motorized recreational vehicle on van chassisPrice range1:€32,000–€90,000$37,100–$1
Slide 9: EHG distribution network
Number of active vehicle dealerships¹ by country (FY2016/17) ² RoW Bad Waldsee 9 EHG distribution network Distributes vehicle brands through approximately 1,200 retail dealerships worldwide, across 35 countries Notes: ¹ Number may vary within a small range due to limited fluctuations in the dealer b
Slide 10: Snapshot of combined company
10 Snapshot of combined company Adds scale Diversifies exposure across geographies Enhances end market product mix Notes: Exchange rate of USD / EUR:1.16; Revenue based on FYE 7/31/2017 for Thor and FYE 8/31/2017 for EHG Revenue ($mm) Revenue (%) Revenue (%) Based on 2017 Actual Results
Slide 11: European RV industry
11 European RV industry 2017 European RV market share (by sales) 2017 Europe RV market overview (€bn) €6.1bn 65% 21% 14% Motorcaravan Caravan Campervan Source: Company information, leading consulting firm 7% CAGR 9% CAGR 4% CAGR 4% CAGR 33% CAGR 12% CAGR
Slide 12: Strong growing European RV market
12 Strong growing European RV market Source: CIVD; European Commission; World Bank; Leading consulting firm Motorhomes New vehicle registrations by type (’000) 3.7 3.0 1.4 1.1 (0.1) 2.8 2.7 2.0 2.9 3.0 3.0 3.9 2.2 1.4 1.3 2.6 2.1 3.3 3.1 0.5 (4.4) 2.1 1.7 (0.4) 0.3 1.7 2.3 1.9 2.2 % GDP Growth +8.2%
Slide 13: EHG has a long track record of industry-leading product innovation
EHG has a long track record of industry-leading product innovation 13 1960’s 1970’s 1980’s 1990’s 2000’s 2010’s 1968Wheel housing refrigerator 1966Crank handle skylights 1976Pull-down double bed for motorcaravans 1975 - 76Pop-top roof for campervans 1986First OEM to guarantee 6 years waterproofness
Slide 14: EHG management team
EHG management team 14 CEO since August 2015Prior experience with Zumtobel, Assa Abloy and Baumgartner & Partner CFO since September 2017Prior experience with Bizerba, Spheros, Sennheiser and Kosta CSO since December 2017Held EHG management positions since 2008Prior experience with MAN and Neoplan C
Slide 15: Transaction overview
15 TransactionHighlights Transaction overview Enterprise value of approximately €2.1 billion, with the purchase price to be funded with cash and equity. Equity consideration will consist of approximately 2.3 million shares of Thor. EHG’s EBITDA: Estimated FY18 EBITDA, as adjusted of €235 million¹; F
Slide 16: Synergies expected to create meaningful additional value
16 Synergies expected to create meaningful additional value Engineering & DesignR&D and Technology MarketingHuman Resources Strategies Thor has a Proven Track Record of Generating Significant Acquisition Related Synergies Thor and EHG to Mutually Benefit from Sharing of Best Practices Leveraging Man
Slide 17: Thor Industries capital strategy
17 Thor Industries capital strategy Invest in Organic Growth InitiativesReduce Outstanding DebtOpportunistically Fund Acquisitions in Global RV Industry – both Core and Adjacencies Return Capital to Shareholders with Predictable Dividend Growth and Share Repurchase Strong cash flow supports a balanc
Slide 18: Key investment highlights
18 Key investment highlights Leading European RV manufacturer Strong management team with proven ability to grow the business and deliver innovative products Diversified geographic exposure to fast-growing European RV market Well-recognized brands with a highly complementary product portfolio Global
Slide 19: Thor Industries
THOR INDUSTRIES THOR | INDUSTRIES 19 a
Slide 20: Appendix
APPENDIX THOR | INDUSTRIES 20
Slide 21: EHG history
EHG history 21 0 1957 1990 1991 1996 1998 2000 2004 2005/6 2011 2018 1 CMC Founded by Erwin Hymer in 1980; 2 Manufacturer of recreational vehicles for Carado and Sunlight brands 2013 Successful delisting of Hymer AG and return to 100% Hymer family ownership as a prerequisite to merge CMC Caravan and
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