Thor investor presentation 11.30.2015 final

www.thorindustries.com

INVESTOR PRESENTATION MARCH 7, 2016

2

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 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, loss or

reduction of sales to key dealers, the pace of acquisitions, the potential loss of existing customers of

acquisitions, the integration of new acquisitions, the availability of delivery personnel, asset impairment

charges, cost structure changes, competition, impact of potential losses under repurchase obligations, 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 and Part II, Item 1A of our quarterly report on Form 10-

Q for the period ending January 31, 2016. We disclaim any obligation or undertaking to disseminate any

updates or revisions to any forward looking statements contained in this presentation or to reflect any change

in our expectations after the date of this presentation or any change in events, conditions or circumstances on

which any statement is based, except as required by law.

3

THOR AT A GLANCE

Founded in 1980 by Wade Thompson & Peter Orthwein with

the acquisition of Airstream, Inc.

One of the world’s largest manufacturers of recreational

vehicles representing a broad range of major brands

Two major business segments include:

• Towable RVs such as travel trailers, fifth wheels and specialty trailers

• Motorized RVs which include Class A, B and C motorhomes

Operations in 148 facilities* located in Indiana, Michigan,

Ohio and Oregon

Products sold through independent retail distributors

primarily in the U.S. and Canada

Historically strong cash flow and solid balance sheet

Approximately 10,450 employees*

Listed on the NYSE under ticker THO

$1,849

$2,340 $2,640

$3,242 $3,525

$4,007

FY10 FY11 FY12 FY13 FY14 FY15

Net Sales

(continuing operations, $ millions)

$1.72 $1.66 $2.07

$2.86 $3.29

$3.79


Diluted EPS

(continuing operations)

*as of July 31, 2105

4

THOR’S RV PRODUCT RANGE

Travel Trailers

(hitch to the bumper of the

tow vehicle)

Fifth Wheels

(hitch to a specially mounted

hitch in the bed of a pickup

truck)

Specialty Trailers

(includes camping trailers,

truck campers and horse

trailers with living quarters)

Towable RV's

$3,096.4 77%

Motorized RV's

$870.8 22%

Other$39.6 1%

FY2015 Sales*

Towable RV Segment Products

Class A Motorhomes

(fully enclosed, bus style

motorhome)

Class B and C Motorhomes

(B – van motorhomes, C –

living area built on van or

pickup chassis)

Motorized RV Segment Products

*Fiscal Year ended July 31,

2015, in millions

5

CONSISTENT GROWTH IN

EARNINGS

$1.72 $1.66

$2.07

$2.86

$3.29

$3.79

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


Diluted EPS, Continuing Ops.

$91.2 $91.6

$111.4

$151.7

$175.5

$202.0

$0

$50

$100

$150

$200

$250


Net Income, Continuing Ops., $ Millions

6

REGULAR QUARTERLY

DIVIDENDSFiscal years ended July 31,

$0.10

$0.15

$0.18

$0.23

$0.27

$0.30


*In addition to regular quarterly dividends, Thor paid special dividends of $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.

7

THOR OPERATING ENTITIES –

STRONG BRANDS

8

STRATEGIC VISION FOR

GROWTHAt 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

9

THOR COMPETITIVE ADVANTAGES

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 (#1 in motorized, #2 in towables)*• Provides scale and purchasing power• Low cost, high volume producer – generates improved margin

Solid balance sheet

Meaningful increases in production capacity during FY14 and FY15

Diversified lineup of innovative product offerings

Strong relationships with wholesale financing providers

Excellent relationships with dealers, lenders and consumers based on financial strength

to provide warranty and honor repurchase agreements

*Source: Statistical Surveys, Inc., U.S. and Canada, year-to-date through December, 2015.

10

INVESTING IN THE FUTURE -

CAPACITY

$12,767

$33,698

$10,442

$24,190

$30,438

$43,055

$0

$10,000

$20,000

$30,000

$40,000

$50,000


Th

ou

sa

nd

s

Capital Acquisitions

$19,756

$99,562

$170 $10,718

$86,092

$194,486

$0

$50,000

$100,000

$150,000

$200,000

$250,000


Th

ou

sa

nd

s

Business Acquisitions

11

CORPORATE INTEGRITY

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

12

RV INDUSTRY CONDITIONS

REMAIN POSITIVE

Although consumer confidence has softened somewhat since the beginning of 2016, it

remains at the highest levels since the recession. Final results fell to 91.7 in February from

92.0 in January. This compares with 95.4 a year ago.*

Consumer sentiment was boosted by expectations of improving wages and continued

modest inflation, as the consumers’ outlook for their personal financial situation reached its

best level in ten years. Consumers are expecting a somewhat slower expansion with

some concern about how the slowdown in GDP growth will affect employment growth.*

Recreation Vehicle Industry Association (RVIA) forecast in March 2016 that calendar 2016

wholesale shipments for all RV categories should increase to 381,800 units, or an increase

of 2.0% over calendar year 2015.**

Pricing and promotional environment remains competitive, but generally improved over

prior year.

Domestic travel offers fewer risks than international travel at a more compelling value.

Lower fuel prices make RV travel increasingly attractive for consumers.

*Source: University of Michigan final Consumer Sentiment Index for February 2016

**Source: RVIA Roadsigns Spring 2016

13

CONSUMER TRENDS:

GROWING RV POPULARITY

Leisure travel such as camping continues to be popular

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).

Favorable demographics

Baby boomers (a prime RV target market for many years) represent 24% of the population

and a target market as they reach retirement age and have more time for travel.

Generation X and Millennials offer future opportunities as they seek more active outdoor

experiences with their families.

Increasingly diverse potential customer base – Hispanic, African American, Asian and

other ethnicities grew from 12% in 2012 to 23% in 2014.

Younger campers (25-34 age) are a growing market – from 18% in 2012 to 23% in 2014.

New applications – broader usage

Growth in use at extreme sporting events, youth sports leagues and tournaments, dog and

craft shows, and collegiate sports activities for alumni and fans.

*Source: Kampgrounds of America (KOA) 2015 North American Camping Report

14

POSTLE ALUMINUM ACQUISITION ENSURES

SUPPLY OF KEY MATERIAL COMPONENT

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.

15

SECOND QUARTER REFLECTS

STRONG PERFORMANCE

Three Months Ended January 31,

2016 2015 % Chg.

Net Sales $975.1 $852.4 14.4%

Gross Profit 148.8 102.0 45.9%

% of Sales 15.3% 12.0%

SG&A 67.4 54.3 24.1%

% of Sales 6.9% 6.4%

Income Before Tax (cont. ops.) $65.9 $44.1 49.3%

% of Sales 6.8% 5.2%

Income Taxes 20.6 13.9

Net Income (cont. ops.) $45.2 $30.3 49.2%

Diluted EPS (cont. ops.) $0.86 $0.57 50.9%

Amounts in millions, except per share data

16

QUARTER 2016 RESULTS FROM CONTINUING

OPERATIONS UP DOUBLE DIGITS

Bob Martin – Thor President & CEO:

“Our second-quarter results reflect the success of our operating strategy, the popularity of Thor’s products and the breadth of our RV dealer

base. We drove improvements in cost management and operational efficiencies which, along with favorable product mix and lower material

costs, allowed us to achieve significant growth in margins and overall profits. Recent acquisitions and capital investments continued to be

accretive and contributed to Thor’s record second-quarter and first-half results. The retail market remains positive as evidenced by strong

attendance and sales at the early spring retail shows and Thor’s dealers continue to be optimistic about future sales. Our dealers’ success

and favorable outlook suggests the continuation of industry growth in most segments, and we are ramping up production at the new

western facility that is on track to begin producing and shipping units by the end of the fiscal third quarter.”

Peter Orthwein – Thor Executive Chairman:

“We posted the strongest first half of any fiscal year in the history of our Company, driven by the outstanding performance of our team of

employees, management and dealers. We are optimistic about the future of Thor and plan to continue to build on the foundation of our

strategic growth plan based on acquisitions and capacity expansion to deliver solid returns to our shareholders.”

$852.4

$975.1

FY15 FY16

Net Sales ($ millions)

+14%

$30.3

$45.2

FY15 FY16

Net Income (Continuing Ops.)

+49%$0.57

$0.86

FY15 FY16

Diluted EPS (Continuing Ops.)

+51%

$942.1

$1,105.2

FY15 FY16

RV Backlog ($ millions)

+17%

Note: Second quarter 2016 Results include three months of Cruiser and DRV Luxury Suites, acquired effective January 1, 2015 compared with one

month in the second quarter of 2015, and Postle acquired May 1, 2015.

17

KEY TAKEAWAYS

Profitable every year since our founding in 1980 – 35 years of

profitability

We are primarily assemblers, not manufacturers

Variable cost structure provides flexibility in cyclical industry

Known as innovators in the industry

Strong market share in all main RV product categories

Rock-solid balance sheet – history of returning cash to

shareholders

Strong consumer, dealer and lender relationships

Experienced team


Appendix: Financial and Market Data

19

INVESTOR Q&A: QUARTER AND YEAR-TO-

DATE OPERATING RESULTS

Sales for the quarter were up significantly from the prior year, which you reported then was a

very strong quarter. What were the drivers of the sales growth and do you anticipate the Q3 and

Q4 to realize similar growth rates?

• Revenues in the quarter were driven by growth in our markets, recent acquisitions, positive weather

conditions and a shift in deliveries of certain motorized rental units earlier in the year. Continued

strength in the RV market and a healthy dealer channel should result in continued, more modest RV

revenue growth in the second half of the fiscal year.

What were the drivers of Q2 and year to date gross margin improvements? Is the improvement

sustainable?

• Improvements in gross margins were due primarily to favorable changes in product mix,

improvements in material and warranty costs and improved operating efficiencies compared to the

prior year. Growth in gross profit margins will become more challenging as improvements in material

costs and warranty expenses that were realized in the second half of fiscal 2015 create difficult

comparisons for the second half of 2016. In addition, certain benefits to gross margins, specifically

the impact of the retroactive reinstatement of tariff rebates on certain imported raw material, which

had a significant positive impact on gross margins in the fourth quarter of fiscal 2015, will not repeat

in the fourth quarter of fiscal 2016.

20


DATE OPERATING RESULTS (CONTINUED)

What was the source of the Q2 impairment charge? How do you determine if there is an

impairment charge?

• Despite the year-to-date strength of the combined RV operating results, the Company incurred a non-

cash, pre-tax goodwill impairment charge of $9.1 million, representing an after-tax EPS impact of

$0.11 per share, related to a specific towable reporting unit based on an impairment analysis of that

specific unit’s recent and future forecasted operating results. The $9.1 million charge represents the

full impairment of the goodwill related to this reporting unit.

• Annually, or more frequently if events or circumstances warrant, the Company reviews the goodwill of

all reporting units which carry goodwill. Goodwill is reviewed for potential impairment by applying a

fair-value based test to the applicable reporting units. Fair value is determined by a discounted cash

flow model, and is subject to significant management judgment. If an impairment is determined to

exist, we will take the charge in the quarter it is determined.

• As of January 31, 2016, the Company carried $303.5 million of goodwill, with $260.6 million of the

goodwill related to the towable RV Segment and $42.9 million of goodwill related to the “Other” non-

reportable segment.

21



What was the impact of new acquisitions on Q2 and year to date sales and pre-tax income?

• Cruiser RV, LLC and DRV, LLC (CRV/DRV) were acquired effective January 1, 2015, therefore the

second quarter of 2015 included only one month of activity from these entities compared to a full three

months in the second quarter of 2016. The increase in the total towables net sales for the second

quarter of 2016 of $23.2 million was primarily due to the inclusion of the additional two months of

activity of CRV/DRV. Likewise, the increase in the total towables net sales for the six month period

ended January 31, 2016 over the corresponding period in 2015 was primarily due to the inclusion of

the additional 5 months of activity of CRV/DRV.

• In addition to CRV/DRV, the Company acquired Postle Aluminum Company, LLC in the fourth quarter

of fiscal 2015, effective May 1, 2015, therefore the second quarter of 2016 includes three months of

activity from Postle with no corresponding activity in the second quarter of 2015. The operating results

of Postle for the three and six month periods ended January 31, 2016 are included in the “Other”

segment information of Footnote 4, “Business Segments,” of the Notes to the Condensed

Consolidated Financial Statements (unaudited).

What was the impact of new RV acquisitions to January 31, 2016 backlogs and dealer inventory?

• The reported backlogs and dealer inventory at January 31, 2015 and January 2016 both include

information related to the CRV/DRV acquisition and therefore are comparable statistics.

22



What factors are causing Corporate selling, general and administrative expenses to increase for

both the quarter and year to date periods?

• For the quarter, Corporate selling, general and administrative expenses increased $1.8 million to

$10.2 million. This increase is primarily due to an increase in compensation costs, as bonuses

increased $0.7 million in correlation with the increase in income from continuing operations before

income taxes compared to the prior year and stock-based compensation increased $0.6 million. The

stock-based compensation increase is due to increasing income over the past three years, as the

stock awards generally vest ratably over a three-year period. The remaining $0.5 million increase is

due to increases related to workers’ compensation and product liability reserves and charitable

contributions, partially offset by a decrease in deferred compensation expense.

• For the year-to-date period, Corporate selling, general and administrative expenses increased $3.3

million to $20.0 million. This increase is primarily due to an increase in legal and professional service

fees of $1.6 million, largely attributable to professional service fees incurred related to the

development of long-term strategic growth initiatives and increased sales and marketing initiatives. In

addition, compensation costs also increased, as bonuses increased $1.2 million in correlation with the

increase in income from continuing operations before income taxes compared to the prior year and

stock-based compensation increased $1.4 million. The stock-based compensation increase is due to

increasing income over the past three years, as the stock awards generally vest ratably over a three-

year period. Costs related to workers’ compensation and product liability reserves increased $0.5

million. These increased costs were partially offset by a decrease in deferred compensation expense

of $1.1 million.

23



Why are amortization of intangible assets costs up for the quarter and year-to-date periods?

• The increase in amortization expense is related to the additional intangible assets recognized as a

result of the recent acquisitions of CRV/DRV and Postle in the second and fourth quarters of fiscal

2015, respectively. Estimated amortization expense for fiscal 2016 and future periods is noted in

Footnote 8 of the Notes to the Condensed Consolidated Financial Statements.

Why is there a sizeable increase in Other expense for the quarter and year-to-date periods?

• The Other expense line on the income statement primarily relates to the market value of the

Company’s deferred compensation plan assets depreciating in the current year periods as compared

to an appreciation in those assets, thus generating income, in the prior year. The equal and offsetting

change in the related deferred compensation liability is reported within the selling, general and

administrative expense line at Corporate as noted previously.

Has the Postle acquisition met expectations?

• Although the aluminum market as a whole has been impacted by falling raw aluminum prices, which in

turn generally has a negative impact on Postle’s operating results, Postle has met our expectations

and is providing incremental net income before tax to Thor.

24

INVESTOR Q&A: BALANCE SHEET AND CASH

FLOW

Net income for the six months of 2016 was $95 million vs 2015 of $68 million, an increase of $27

million, yet cash provided by operating activities was essentially flat year over year. Why?

• Net income plus non-cash expenses (primarily depreciation, amortization, impairment charges, deferred

income tax provision and stock-based compensation) provided a total of $130.3 million of operating

cash for the six months ended January 31, 2016. Working capital used $78.4 million of operating cash

during that period, primarily due to larger than usual seasonal increases in accounts receivable and

inventory in correlation with the increase in sales, production levels and backlog, partially offset by an

increase in accounts payable. In addition, required income tax payments exceeded income tax

provisions during the period.

25

INVESTOR Q&A: BALANCE SHEET AND CASH

FLOW

What are your priorities for cash utilization?

• Our priorities for cash utilization remain consistent – our first priority is to support and grow our core RV

business, both organically and through acquisitions. For the full year fiscal 2016 we anticipate spending

nearly $50 million in purchases of property, plant and equipment. This figure includes sizeable

expansions at Airstream; Heartland – including their new facility in Nampa, Idaho as well as expansions

in Elkhart and Howe, Indiana; Keystone; Thor Motor Coach and KZ. In fiscal 2015, we spent

approximately $194 million on acquisitions, including nearly $50 million on acquisitions directly related to

our core RV business. The acquisitions have contributed meaningfully to our recent success and offer

great potential to do the same for our shareholders in the longer term.

• Our second priority is on maintaining and growing our regular dividend rate over time. The Company

increased its previous regular quarterly dividend of $0.27 per share to $0.30 per share in October 2015.

In October 2014, the Company increased its previous regular quarterly dividend of $0.23 per share to

$0.27 per share.

• Our third priority for the use of cash is for strategic share repurchases or special dividends, as

determined by the Company’s Board.

26

INVESTOR Q&A: MARKET CONDITIONS AND

COMPETITION

What is the current state of the Canadian RV market? What do you anticipate the market will be

like for the remainder of calendar 2016?

• The Canadian market is still challenging as we see continued volatility in the value of the Canadian

dollar relative to the U.S. dollar. Since we sell our products to Canadian dealers priced in U.S.

dollars, this creates an upward pressure on prices in local currency which has an adverse impact on

demand. As a result, total Canadian retail registrations as reported by Statistical Surveys, Inc., fell

12.9% for the full calendar year 2015, with towables decreasing 12.0% and motorized decreasing

26.7%. Other factors impacting the Canadian market include increased job losses, an economic

recession and tighter lending practices. However, even with these negative headwinds, we are

seeing some areas of improvement in certain geographies and lean, healthy dealer inventory levels

in the channel.

Have you seen any signs of a slowdown in demand for RVs?

• At this point, we have not seen any indications of a slowdown in demand at the dealer or retail level

in the U.S. Despite the recent volatility in the stock market, consumers remain positive, as the

impact of lower fuel prices, increasing job creation and lower unemployment have helped consumer

confidence to remain strong. This positive consumer confidence is met with improved product

offerings in our industry and, combined, these factors have driven continued growth surpassing the

growth rate of the broader economy.

27


COMPETITION

Describe the current competitive environment, is there much discounting going on?

• The RV industry is always competitive, but in the past year or two, we have seen less of the more

extreme discounting than we have seen in prior years, with pockets of more aggressive discounting

on certain high-end products.

Have you seen any softness in markets that have been heavily impacted by the oil industry?

• The largest state with exposure to the oil industry is Texas, which, based on retail registration data

from Statistical Surveys, accounted for 31,656 units in 2015, which was up 8.5% for the year. At this

point, we have not seen signs of reduced demand in the large metro regions of Texas, though we

continue to monitor the situation closely.

What is the current state of Dealer sentiment and Dealer inventory levels?

• Dealers in general remain optimistic regarding calendar 2016. Early season shows on average have

been well attended with very solid sales volume. Dealer orders are generally expected to reflect a 1-

for-1 replacement as units are sold at retail. Dealer inventory remains appropriate for current

conditions in both towables and motorized.

28


COMPETITION

Do we anticipate further RV industry consolidation?

• Although a significant amount of consolidation has already happened within the industry since the

last recession, we do believe that opportunities remain for additional consolidation within the

industry. Consolidation in our industry does not threaten the competitive environment as years of

consolidation have evidenced. So, even with more consolidation, we are confident that the

competitive environment that drives innovation and improved product offerings throughout our

industry will continue. In addition, we have seen a number of new or returning entrants to the RV

manufacturer base since the recession as well. As these new entrants grow, there may be additional

consolidation.

Are we at the peak for shipments?

• We do not believe we are at the peak for shipments. As an industry, we are impacted by many

macro-economic factors such as consumer confidence, interest rates and credit availability,

employment levels, inflation rate, and a number of other factors. Currently, many of these macro-

economic factors remain favorable. In addition, a positive future outlook for the RV segment is

supported by favorable demographics – both as more people reach the age brackets that historically

have accounted for the bulk of the retail RV sales as well as an influx of younger consumers that are

attracted to the RV lifestyle. These younger consumers in particular are generally attracted to lower

and moderately priced entry-level products and are, in part, fueling additional growth in the industry

beyond historical levels. In addition, RVIA recently updated their forecast for calendar 2016 and are

now projecting 2% growth, to 381,800 units.

29

INVESTOR Q&A: OUTLOOK

What is the status of the new Heartland plant in Idaho?

• The Heartland facility in Idaho is progressing according to our original timeline. We are ramping up

production at the new western facility that is on track to begin producing and shipping units by the

end of the fiscal third quarter. The Nampa facility will produce travel trailers to meet the strong

demands of the West Coast dealers of our Heartland subsidiary.

What is your outlook for the rest of the year?

• Continued strength in the RV market and a healthy dealer channel should result in continued, but

more modest RV revenue growth in the second half of the fiscal year. Growth in gross profit margins

will become more challenging as improvements in material costs and warranty expenses that were

realized in the second half of fiscal 2015 will create difficult comparisons for the second half of 2016.

In addition, certain benefits to gross margins, specifically the impact of the retroactive reinstatement

of tariff rebates on certain imported raw material, which had a significant positive impact on gross

margins in the fourth quarter of fiscal 2015, will not repeat in the fourth quarter of fiscal 2016. Finally,

the effective income tax rate will likely remain higher on a year-over-year basis, compared with the

relatively low rate in the second half of fiscal 2015.

30

INVESTOR Q&A: OUTLOOK

Thor has lost market share in calendar 2015. Why have you lost market share and what does the

Company plan on doing to address or reverse the losses?

• From a share perspective, we have gained significant market share in motorized, which has been

partially offset by some decreases in towable share, most notably in high-end fifth wheels and some

travel trailers. Market share is certainly a key metric that we monitor for all our product categories –

however, it is not the only metric. Overall, we generally try to take a balanced approach to growing or

maintaining market share and growing or maintaining gross margin. The RV industry is extremely

competitive and pricing discipline can come at the expense of market share for all participants,

including the largest. We have developed a variety of new products that we believe address the

largest and fastest growing segments of the market, which should help to improve share as they

penetrate the broader market.

What is your strategic plan for future acquisitions?

• We have established a very disciplined approach to acquisitions to ensure we remain focused on the

factors that provide the greatest likelihood to a successful acquisition and that will provide long-term

value to our shareholders. We are opportunistic in our approach and seek willing sellers at a

reasonable sales price. We also seek companies with strong management teams. We remain

focused on acquisition opportunities within or adjacent to the RV industry.

31

RV WHOLESALE MARKET

TRENDS (UNITS 000s)

29

5.8

33

9.6

44

1.1

41

3.9

38

9.9

19

9.2

10

6.9 1

33

.6

14

0.6

19

6.6 21

5.7

18

6.9

18

9.9 211

.7

21

5.8

18

7.9

17

3.1

16

3.1

20

3.4 2

27

.8

25

9.5

24

7.2

24

7.5

25

4.5

29

2.7 3

21

.2

30

0.1

25

6.8

311

.0

32

0.8

37

0.1

38

4.4

39

0.5

35

3.5

23

7.0

16

5.6

24

2.3

25

2.3

28

5.8

32

1.2

35

6.8 37

4.2

38

1.8

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6 (

e)

Historical Data: Recreation Vehicle Industry Association, Calendar year 2016: RVIA estimate as of Spring RV Roadsigns, published in March 2016

32

RV MARKET MOTORIZED

WHOLESALE TRENDS (UNITS 000s)

68

.9

96

.6

15

6.1

16

0.2

15

7.2

64

.1

28

.5 35

.4 41

.2

69

.5

82

.0

68

.7

67

.7 73

.7

72

.8

61

.1

52

.3

41

.9 46

.9 51

.3 58

.2

52

.8

55

.3

55

.1

63

.5 71

.5

61

.0

49

.2

60

.4

62

.0

71

.7

61

.4

55

.8

55

.4

28

.4

13

.2

25

.2

24

.8 28

.2

38

.4 44

.0

47

.3

49

.0

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6 (

e)


33

RV MARKET TOWABLE

WHOLESALE TRENDS (UNITS 000s)

22

6.9 24

3.0

28

5.0

25

3.7

23

2.7

13

5.1

78

.4

98

.1

99

.4

12

7.1

13

3.7

11

8.1

12

2.1 13

7.9

14

2.9

12

6.7

12

0.8

12

1.1

15

6.5 1

76

.5

20

1.3

19

4.3

19

2.2

19

9.5

22

9.1 2

49

.6

23

9.1

20

7.6

25

0.6

25

8.9

29

8.3

32

3.0

33

4.5

29

8.1

20

8.6

15

2.4

21

7.1

22

7.5

25

7.6

28

2.8

31

2.8 32

6.9

33

2.8

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6 (

e)


34

RV INDUSTRY DEMAND

Industry retail demand has shifted toward more light-weight towables

and gas Class A and Class C motorhomes as consumers seek value

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

Calendar Year

2012 2013 2014 2015

Industry Retail

Registrations*

262,805 units

(+6.8%)

301,481 units

(+14.7%)

328,866 units

(+9.1%)

369,883 units

(+12.5%)

Industry

Wholesale

Shipments**

285,749 units

(+13.2%)

321,127 units

(+12.4%)

356,735 units

(+11.1%)

374,246 units

(+4.9%)

* Statistical Surveys, Inc., includes US and Canada. 2012, 2013, 2014 & 2015 Full Year Actual

** RVIA wholesale shipments for full years 2012, 2013, 2014 & 2015

35

THOR BACKLOG AND DEALER

INVENTORYDealers remain confident with orders reflecting a shift toward more normal ordering patterns

Orders generally expected to reflect 1-for-1 replacement as units are sold at retail

Backlogs reflect the inclusion of Cruiser/DRV for both periods

Backlog: January 31 ($000s),

2016 2015 % Change

Towables $708,408 $626,052 13.2%

Motorized $396,839 $316,008 25.6%

Total RV $1,105,247 $942,060 17.3%

Dealers inventory remains appropriate for current conditions in both towable and motorized

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

Dealer Inventory: January 31, (units)

2016 2015 % Change

RV 78,000 76,440 2.0%

36

RV INDUSTRY RETAIL MARKET

SHARE

Total Share % Total Share % Total Share % Total Share %

THOR* 127,528 34.5% 119,089 36.2% 115,572 38.3% 102,780 39.1%

Forest River** 131,198 35.5% 112,979 34.4% 99,822 33.1% 81,873 31.2%

Jayco*** 49,650 13.4% 41,574 12.6% 37,942 12.6% 33,803 12.9%

Winnebago 11,857 3.2% 10,395 3.2% 8,661 2.9% 7,053 2.7%

Grand Design 6,967 1.9% 4,174 1.3% 813 0.3% - 0.0%

Gulfstream 4,743 1.3% 4,562 1.4% 4,882 1.6% 5,410 2.1%

Subtotal 331,943 89.8% 292,773 89.1% 267,692 88.8% 230,919 88.0%

All Others 37,940 10.2% 36,093 10.9% 33,789 11.2% 31,886 12.0%

Grand Total 369,883 100.0% 328,866 100.0% 301,481 100.0% 262,805 100.0%

Y/E 12/31/14 Y/E 12/31/13 Y/E 12/31/12Y/E 12/31/15

Source: Statistical Surveys, Inc., U.S. and Canada

* Thor adjusted to include historical results of Livin’ Lite, Bison Coach, K-Z, Inc., Cruiser RV and DRV Luxury Suites for all periods presented ** Forest River includes Palomino,

Coachmen, Prime Time, Shasta and Dynamax *** Jayco adjusted to include historical results of Open Range

37

THOR RV RETAIL MARKET SHARE

TREND (CALENDAR YEAR, UNITS)

41.2% 40.9% 41.2%40.2%

37.9%

35.8%

17.8%

19.5% 20.0%

23.3%23.9%

25.1%

12.4%

14.4%

16.7%

22.1% 21.9%22.5%

2010 2011 2012 2013 2014 2015

Towable Retail Share* Class A/C Retail Share* Class B Retail Share*

*Source: Statistical Surveys Inc., U.S. and Canada, calendar year 2010-15. Historical results adjusted to include results of Heartland, Livin’ Lite, Bison Coach, K-Z,

Inc., Cruiser RV and DRV Luxury Suites for all periods presented.

38

QUARTERLY THOR RV UNIT

SHIPMENTS

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1Q2006 1Q2007 1Q2008 1Q2009 1Q2010 1Q2011 1Q2012 1Q2013 1Q2014 1Q2015 1Q2016

Thor investor presentation 11.30.2015 final

Investor Relations

Transcript of Thor investor presentation 11.30.2015 final