2. 2
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 1934, as amended.
These forward looking statements are made based on management’s current expectations and
beliefs regarding future and anticipated developments and their effects upon Thor Industries, Inc.,
and inherently involve uncertainties and risks. These forward looking statements are not a guarantee
of future performance. There can be no assurance that actual results will not differ from our
expectations. Factors which could cause materially different results include, among others, raw
material and commodity price fluctuations, material or chassis supply restrictions, legislative and
regulatory developments, the costs of compliance with increased governmental regulation, legal
issues, the potential impact of increased tax burdens on our dealers and retail consumers, lower
consumer confidence and the level of discretionary consumer spending, interest rate fluctuations
and the potential economic impact of rising interest rates, restrictive lending practices, management
changes, the success of new product introductions, the pace of obtaining and producing at new
production facilities, the pace of acquisitions, the potential loss of existing customers of acquisitions,
the integration of new acquisitions, the impact of the divestiture of the Company’s bus business, the
availability of delivery personnel, asset impairment charges, cost structure changes, competition, the
potential impact of the strengthening of the U.S. dollar on international demand, general economic,
market and political conditions and the other risks and uncertainties discussed more fully in ITEM 1A
of our Annual Report on Form 10-K for the year ended July 31, 2015. We disclaim any obligation or
undertaking to disseminate any updates or revisions to any forward looking statements contained in
this release or to reflect any change in our expectations after the date of this release or any change
in events, conditions or circumstances on which any statement is based, except as required by law.
Forward Looking Statements
3. 3
Founded in 1980 by Wade Thompson & Peter Orthwein with the acquisition
of Airstream, Inc.
The sole owner of operating subsidiaries that, combined, represent one of the world’s
largest manufacturers of recreational vehicles
• #2 in overall RV 34.5% of market*
• #2 in Travel Trailers 34.4% of market*
• #1 in Fifth Wheels 46.2% of market*
• #2 in Motorhomes 24.6% of market**
Approximately 10,450 employees***
Operations through 148 facilities in 4 US states***
8.8 million square feet under roof***
Who is THOR
Source: *Statistical Surveys, Inc., YTD U.S. and Canada units through June 2015
**Motorhomes includes Class A, B and C, Statistical Surveys, Inc., YTD U.S. and Canada units through June 2015
*** as of July 31, 2015
4. 4
Travel Trailers
Fifth Wheels
Specialty Trailers
THOR’s RV Product Range
Towable
RV's
$3,096.4
77%
Motorized
RV's
$870.8
22%
Other
$39.6
1%
FY2015 Sales*
*Fiscal year ended July 31, 2015,
sales, continuing operations ($ in
millions)
Class A
Class B & C
Towable RV Segment Products
Motorized RV Segment Products
6. 6
At Thor we strive to provide RV consumers with superior products and services
through innovative solutions which enhance the enjoyment of the RV lifestyle
Our decentralized operating structure and independent operating subsidiaries foster
an entrepreneurial spirit and an unending focus on the needs of the users of our
products – resulting in our drive to lead the industry with innovation, product quality
and customer service
Our focus requires that we make decisions based on the long-term success of our
Company:
• While we strive to lead the industry in market share, we will not strive for market
share at the expense of quality or without regard to bottom-line impact
• Growth is important, but this is a business of relationships, and we realize that
the key to long-term sustainable sales growth rests in the strength of our
relationships with consumers, dealers and suppliers
• Our relationship with shareholders is important ― profits are a key driver to our
long-term success
• The path to long-term success is seldom straight, so our leaders manage in a
way that moves us closer to our goals, even though it might impact our results in
the short term
THOR’s Strategic Vision
7. 7
Disciplined, Profitable Growth
• Profitable every year since 1980 – 35 years without an annual loss, even during the
recession of 2007-09
• All-time record $4.0 billion sales from continuing operations in FY2015, up 14% from
$3.5 billion sales in FY2014, which was up 9% from FY2013
• FY2015 net income from continuing operations of $202.0 million, up 15% from FY2014
• FY2015 diluted EPS from continuing operations of $3.79, up 15% from $3.29 in
FY2014, FY2015 total diluted EPS of $3.74, up 12% from $3.35 in FY2014
Sustainable Business Model
• Successfully weathered a severe downturn in 2007-09 and remained profitable
• Recent capital investments position Thor for growth and margin improvement over the
long term
Solid Balance Sheet
• On July 31, 2015, cash and cash equivalents of $183.5 million
• Operations historically generate significant cash
• Strong history of returning cash to shareholders through dividends and share
repurchases
− Regular quarterly dividend increased from $0.23 to $0.27 at the beginning of FY15
− Repurchased 1 million shares for $60 million in May 2015
Why Invest in THOR
8. 8
Proven business model:
• Entrepreneurial and decentralized
• No ivory tower: approximately 10,450 employees, only 46 in corporate staff*
• Decision-making driven by the needs of the customer
• Big, but nimble – highly responsive to changes in demand
• Best management team in the business, as proven by sustained performance
An innovator in each of its business segments
Long-term RV market leadership:
• Strong position in towable RVs, historically highest volume area
• #2 in Motorhomes, poised for continued growth as the market continues to grow
• Well positioned as a leading innovator in the RV market to meet the demands of
dealers and consumers
Strong balance sheet to support long-term growth and shareholder returns
What Makes THOR Different
* as of July 31, 2015
9. 9
No golden parachutes
No ‘pro forma’ earnings. We report net income, not adjusted earnings to cover up
performance
Consistent focus on shareholder value
Simple compensation philosophy:
• Mainly cash compensation based on pre-tax income – a true pay-for-
performance philosophy
• Restricted stock units also awarded based on performance to provide broader,
long-term focus on overall Company results
Corporate Integrity
10. 10
Primary focus on assembly:
• Vertical integration – only where it makes sense
• Flexibility – performance in any market condition
• Low overhead costs
• High return on assets employed
Strong market share in the primary RV categories – Travel Trailers, Fifth Wheels and
Motorized:
• Provides scale and purchasing power
• Low cost, high volume producer – generates improved margin
Balance sheet supports acquisitions and organic growth
Meaningful increases in production capacity during FY14 and FY15
Diversified lineup of innovative product offerings
Strong relationships with wholesale financing providers
Strength to pay warranty and honor repurchase agreements, which is important to
dealers, lenders and consumers
THOR’s Competitive Advantages
11. 11
Market is competitive and very entrepreneurial:
• Thor and Forest River account for 70.6% of industry retail sales*
• Thor’s strength is a resource – since the recession, consumers, dealers
and lenders seek to do business with the strongest players in the market
Industry better balanced today for supply and demand
Pricing and promotional environment remains competitive, but generally
improved over prior year
Consumer confidence has softened as we head into Fall. Preliminary results
fell to 85.7 in September 2015 from 91.9 in August, but rose modestly from
84.6 a year ago. Consumer sentiment was affected by recent market volatility
as well as consumers being less optimistic about jobs and wage growth**
Wholesale and Retail lenders are prudent - applying “healthy discipline”
RV buyers seek the “power of choice” – want variety in brands and models
RV Industry Conditions
*Source: Statistical Surveys, Inc., U.S. and Canada YTD June 2015
** Source: University of Michigan preliminary Consumer Sentiment Index for September 2015
12. 12
A recent review of trends by Kampgrounds of America (KOA) revealed some interesting trends among
RV consumers:
Approximately 46.2 million households in North America are active campers, but only 9.7 million, or
21% of them, are RV campers. The remaining campers primarily use tents or cabins, which makes
them a solid target market for the RV industry (58% of RV owners started as tent campers).
Baby Boomers (a prime RV target market for many years) represent 24% of the population. While
we are focused on meeting the need of Boomers, we are also looking to the future and developing
products to meet the needs of Generation X and Millennials as they seek more active outdoor
experiences with their families.
Specific trends impacting the future RV market:
• Increasingly diverse potential customer base – Hispanic, African American, Asian and other
ethnicities accounted for 23% of campers in the 2014 survey compared with 12% in 2012.
• While older consumers continue to camp, younger campers have been growing – the 25-34
year old cohort increased from 18% of campers in the 2012 survey to 23% of campers in the
2014 survey, many of whom camp in tents.
• Younger consumers still want technology available even as they “unplug” when camping.
• RVs address several key needs of consumers, including spending more time with friends and
family and enjoying the great outdoors in an affordable and environmentally conscious way.
• RV consumers continue to develop new ways of utilizing their RVs. Whether used for
extreme sports, youth sports leagues and tournaments, attending dog shows or craft shows,
RVs are versatile.
The RV Consumer
16. 16
Dealers
• Continued optimism
• Right-sized towable inventory
• Appropriate motorized inventory
• Access to wholesale credit
• Financial health
• Pragmatic approach to orders
ahead of Fall Open House
RV: State of Balance
RV 2015 2014 % change
Towables $304.0 $296.8 2.4%
Motorized $270.0 $241.3 11.9%
TOTAL $574.0 $538.1 6.7%
Backlog: July 31 ($ millions)
Consumers
• Availability of retail credit
• Historically low interest rates
• Great demographic trends
• Renewed focus on family
vacations
• Looking for value when
considering vacation options
17. 17
THOR RV Dealer Inventory
Total Dealer inventory remains appropriate for current conditions, in
both the towable and motorized segments.
Dealer inventory at July 31, 2015, was up 6% compared with July 31,
2014, which supports current industry retail trends. Increase due in
part to inventory of acquisitions which were not included in prior year.
Lenders still comfortable with current dealer inventory turns and
current credit line utilization; year-over-year turns have increased
modestly, resulting in a slight reduction in average age of Thor units on
dealers’ lots.
2015 2014 % change
RV 67,753 64,012 +5.8%
Dealer Inventory: July 31 (units)
18. 18
Retail demand has driven rebound in towables and motorized
Wholesale units typically outpace retail in the early part of the calendar year;
historically sales become more balanced as we reach the peak retail selling season
The RV Market Ahead
* Statistical Surveys, inc., includes US and Canada. 2012, 2013 & 2014 Full Year Actual, YTD though June 2015
** RVIA wholesale shipments for full years 2012, 2013 & 2014, YTD through June 2015
Calendar Year
2012 2013 2014 2015 YTD
Industry Retail
Registrations*
262,805 units
(+6.8%)
301,399 units
(+14.7%)
326,168 units
(+8.2%)
193,252 units
(+11.2%)
Industry
Wholesale
Shipments**
285,749 units
(+13.2%)
321,127 units
(+12.4%)
356,735 units
(+11.1%)
202,653 units
(+5.5%)
19. 19
On May 1, 2015 Thor acquired Postle Aluminum, based in Elkhart, Indiana, for
approximately $144 million in cash, net of cash acquired.
Postle generated sales of approximately $220 million in calendar 2014, and we expect the
acquisition to be accretive to earnings. Approximately 30% of total sales are to Thor
subsidiaries and approximately 75% of total sales were to the RV industry. The remaining
sales are to the specialty truck and trailer, cargo, marine and fencing industries.
Postle produces a variety of aluminum extrusions, specialized components and powder
coating and painting services.
The current management team will continue to lead the company as a separate Thor
subsidiary.
Acquisition of Postle Aluminum
20. 20
On January 5, 2015, Thor’s Heartland RV subsidiary acquired towable RV maker Cruiser
RV (CRV) and luxury fifth wheel maker DRV Luxury Suites, both based in Howe,
Indiana, for total net cash consideration of $47.5 million.
CRV produces light-weight laminated travel trailers targeting the fast-growing entry- to
mid-priced segments of the market while DRV is a leader in high-end luxury fifth wheels,
including some custom units that complement Heartland’s luxury fifth wheel brands. CRV
and DRV generated approximately $135 million in combined sales for calendar 2014.
With locations about 30 miles from Heartland’s main complex, CRV and DRV offer
opportunities for expanded production for Heartland while drawing from a talented labor
pool in an adjacent county.
Acquisition of Cruiser RV and DRV Luxury Suites
21. 21
In mid-fiscal 2013, Thor’s management team developed a three-year Strategic Plan focused
on growth and operational improvement. Key Milestones to achieving the plan:
Mid-single-digit top line growth through FY17 driven by organic growth, strategic
expansion of production and capacity, as well as opportunistic acquisitions.
Dedication to maintaining strong relationships with our dealers to sharpen our focus on
providing the best product to the customer.
Enhance our understanding of our end consumers and their needs with greater
interaction through social media and direct communication channels.
Expansion of a continuous improvement process designed to positively affect product
quality and operating efficiency.
By the end of FY15, we have achieved 170 basis points of the original 200 basis point
gross margin improvement target set in the original plan with a goal of achieving pre-
recession levels of gross margin in the low-14% range.
Strategic Plan Update
22. 22
Slight decreases in both motorized and towable sales resulting from the pull forward of demand into the fiscal second and third quarters as dealers
ordered earlier in FY15 following the delays caused by harsh winter weather and driver shortages in FY14. With the addition of Postle, total sales from
continuing operations rose 2%, to $1.06 billion in the fourth quarter.
Net income from continuing operations for the fourth quarter was $69.0 million, up 3% from $66.8 million in the prior-year fourth quarter. Diluted earnings
per share (EPS) from continuing operations for the fourth quarter was $1.31, up 5% from $1.25 in the fourth quarter last year. EPS in the fourth quarter of
fiscal 2015 reflects the impact of the 1 million share repurchase completed on May 15, 2015.
Including discontinued operations from Thor’s former Bus business, net income was $69.0 million, up 4% from $66.6 million in the fourth quarter of fiscal
2014. Diluted EPS including discontinued operations was $1.31, up from $1.25 in the fourth quarter last year.
In the fourth quarter of fiscal 2014, the Company benefitted from a gain on the sale of property as well as a lower effective tax rate due to the settlement
of various uncertain state tax positions. These benefits were partially offset by incremental costs for amortization and inventory revaluation related to the
acquisition of K-Z. The net impact of these items on fourth quarter 2014 results was approximately $0.12 per diluted share. In the fourth quarter of fiscal
2015, the Company benefitted from the retroactive reinstatement of tariff rebates on certain imported raw material as well as a more modest decrease in
effective tax rate due to the settlement of various uncertain state tax positions, partially offset by the incremental cost of amortization and inventory
revaluation related to the acquisition of Postle. The net impact of these items on fourth quarter 2015 results was approximately $0.17 per diluted share.
Towable RV revenue in the quarter was $802.2 million, down 3% from last year given the pull forward of demand and more challenging comparisons in
the prior year. Fourth-quarter towable income before tax was $85.7 million, up 2% from $84.0 million last year. Towable RV income before tax for the
fourth quarter was 10.7% of revenues compared with 10.2% a year ago partially due to the reinstatement of tariff rebates on certain imported raw
material.
Motorized sales decreased slightly from $217.8 million to $216.4 million for the fourth quarter of 2015. Income before tax was $19.9 million, up 33% from
$15.0 million last year. As a percent of revenues, motorized RV income before tax increased to 9.2% of revenues from 6.9% a year ago, due mainly to
improved labor and warranty costs relative to the elevated levels in the fourth quarter of fiscal 2014, as well as the reinstatement of tariff rebates
mentioned earlier.
Total backlog increased 7% to $574.0 million. Towable backlog increased 2% to $304.0 million while motorized backlog increased 12% to $270.0 million.
Comments on 4th Quarter 2015 Results
23. 23
Profitable every year since our founding in 1980 – 35 years of profitability
Successfully weathered a severe downturn in 2007-09 while remaining profitable
Recent capital investments position Thor for growth and margin improvement over
the long term
#2 overall RV market share in North America*
Rock-solid balance sheet. Significant cash on hand and historic cash generation –
history of returning cash to shareholders
Diversified and innovative products
Strong consumer, dealer and lender relationships
Experienced team
THOR - Key Takeaways
* Statistical Surveys, Inc., YTD U.S. and Canada units YTD June 2015
29. 29
Regular Quarterly Dividends
Fiscal years ended July 31
$0.07
$0.10
$0.15
$0.18
$0.23
$0.27
2010 2011 2012 2013 2014 2015
In addition to regular quarterly dividends, Thor paid special dividends of $0.50 per share in FY11, $1.50 in FY13 and $1.00 in
FY14. The declaration of future dividends and the establishment of the per share amounts, record dates and payment dates
for any such future dividends are subject to the determination of the Board, and will be dependent upon future earnings, cash
flows and other factors.
30. 30
4th Quarter Financial Summary
2015 2014 % Change
Net Sales $1,058.2 $1,043.3 1.4%
Gross Profit 171.3 152.8 12.1%
% of Sales 16.2% 14.6%
SG&A 69.7 59.7 16.8%
% of Sales 6.6% 5.7%
All Other 4.1 1.4
Income Before Tax 97.5 91.7 6.3%
% of Sales 9.2% 8.8%
Income Taxes 28.5 24.9
Net Income (cont. ops.) 69.0 66.8 3.3%
Diluted EPS (cont. ops.) $1.31 $1.25 4.8%
Order Backlog
Towables 304.0 296.8 2.4%
Motorized 270.0 241.3 11.9%
Total 574.0 538.1 6.7%
*Amounts in millions except per share data
Net Sales by segment:
• Towables -3%, motorized -1%
Income before tax by segment:
• Towables 10.7%, up from 10.2%
• Gross margins improved from
reinstatement of tariff rebates on
certain imported raw material
• Motorized 9.2%, up from 6.9%
• improved labor and warranty
costs relative to the elevated
levels in the 4Q14, as well as the
reinstatement of tariff rebates
mentioned earlier
• EPS from continuing operations of
$1.31, up from $1.25 in fourth quarter
of 2014
