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Wgo+3 28-11
 

Wgo+3 28-11

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    Wgo+3 28-11 Wgo+3 28-11 Presentation Transcript

    • March 28-29, 2011
    • Forward-Looking StatementsThis presentation contains forward-looking statementswithin the meaning of the Private Securities LitigationReform Act of 1995. Investors are cautioned thatforward-looking statements are inherently uncertain. Anumber of factors could cause actual results to differmaterially from these statements. These factors arecontained in the Company’s filings with the Securitiesand Exchange Commission over the last 12 months,copies of which are available from the SEC or from theCompany upon request.2
    • Corporate andRV Industry Overview
    • Winnebago Industries Overview Revenues by Product Class Founded in 1958 (Trailing 12 Months – 2/11) IPO 1966, NYSE 1970 Leading manufacturer of high-quality motor homes Other Manufacturing facilities 7% Class located in Iowa A Gas Nonunion workforce of Class C approximately 2,000 as of 30% August 28, 2010 27% North American dealer Class network of approximately 230 locations A Class B Diesel Executive management team with average of 24 years RV 1% 35% manufacturing experience 44
    • Motorized Family TreeWinnebago Industries manufactures three brands of Class A, B and C motor homes: Winnebago, Itasca and ERA 68 floorplans available in 2011 – 45% new M.S.R.P.(Base) Class C Access/Impulse $68,700 – $85,800 Access Premier*/Impulse Silver* $82,900 – $92,700 Aspect/Cambria $88,300 – $93,200 View/View Profile/Navion/Navion iQ $96,900 – $102,000 Class A – Gas Vista/Sunstar $90,700 – $108,800 Sightseer/Sunova $115,000 – $132,200 Adventurer/Suncruiser $142,900 – $165,400 Class A – Diesel Via/Reyo $129,500 – $130,900 Journey Express/Meridian V Class $211,400 – $219,200 Journey/Meridian $250,500 – $258,100 Tour*/Ellipse* $296,400 – $332,900 5 * New/Redesigned for 2011
    • Exciting New 2011 Products Top-of-the-line Class A diesel Winnebago Tour and Itasca Ellipse were redesigned inside and out for 2011. A new triple-slide 42-foot tag axle model also joins the lineup for 2011 bringing the offerings to four. Itasca Ellipse The most fuel efficient Class A motor home in the industry, the Winnebago Via and Itasca Reyo, now have a new 25Q floorplan; the first double slide Class A motor home on a Mercedes Sprinter chassis. Winnebago Via6
    • Exciting New 2011 Products New Winnebago Access Premier and Itasca Silver models include exterior and interior appointments that take these coaches to the next level. Winnebago Access Premier Winnebago View Profile and Navion iQ feature a new 24G floorplan featuring two slideout rooms, the first Sprinter-based Class C with this offering. Navion iQ7
    • RV Industry Class A & C Retail Market Share (Percent as reported by Statistical Surveys, Inc. Calendar 2010) Top 5 Manufacturers = 72.4% 88
    • RV Industry Class A & C Retail Market Share (Percent as reported by Statistical Surveys, Inc. CYTD/January 2011) Top 5 Manufacturers = 71.8% 99
    • Winnebago Industries Retail Market Share U.S. 2011/Jan 2010 2009 2008 2007 Class A gas 25.5% 23.5% 22.9% 23.2% 21.9% Class A diesel 16.0% 14.3% 11.4% 8.1% 8.9% Total Class A 20.8% 18.9% 16.6% 15.3% 15.2% Class C 19.5% 17.6% 22.7% 22.8% 24.0% Total Class A and C 20.3% 18.3% 19.1% 18.3% 18.5% Class B 0.0% 18.3% 18.1% 3.5% 0.0% Canada 2011/Jan 2010 2009 2008 2007 Class A gas 15.8% 17.3% 13.8% 18.4% 16.6% Class A diesel 15.0% 11.2% 7.0% 5.3% 6.3% Total Class A 15.4% 14.5% 10.0% 12.4% 11.9% Class C 8.0% 19.9% 9.5% 19.5% 18.3% Total Class A and C 12.5% 17.3% 9.8% 15.7% 14.4% As reported by Statistical Surveys, Inc. by calendar year10
    • What Differentiates Us?The Winnebago brand Why we have such significant brand strength:  Top quality  Longevity in the industry  First to mass produce motor homes in an automotive assembly- line manufacturing style  Exceptional aftermarket sales and service support  Strong dealer network Evidence of our brand strength:  Prevalent use of our product in TV and in movies  Winnebago is synonymous for “motor home”  Based on survey, Winnebago has 90% brand recognition11
    • What Differentiates Us? Vertical Integration  Why we are vertically integrated:  Our remote location  Have more control over our quality  Provides flexibility  Vertical integration processes:  Aluminum extrusion  Cabinetry/wood working  Soft goods (furniture, curtains, upholstery)  Vacuum formed plastics  Rotational molding  Steel fabrication  Panel lamination  Multiple painting processes  Fiberglass manufacturing12
    • What Differentiates Us? Quality  Why we have a culture of quality:  Essential to customer satisfaction  Dedicated and experienced employees  Tone at the top  Extensive testing processes and equipment  Evidence of our quality:  Only RV manufacturer to receive Quality Circle Award as part of Dealer Satisfaction Index Program from RVDA every year since 1996  Only RV manufacturer to receive Ford Motor Company “Fully Meets” Classification as part of their Truck Quality Program every year since the program’s inception in 199713
    • Winnebago Industries Towables  Why acquired SunnyBrook RV:  Quality reputation  Good product line with both travel trailer and fifth wheel choices  Good fit with Winnebago Industries  Strategy:  Retain SunnyBrook brand  Develop and market Winnebago brand travel trailer and fifth wheel trailer  Ranked #19 in market share, which we plan to grow14
    • Towable Family TreeWinnebago Industries Towables manufactures travel trailers and fifth wheel trailers under the SunnyBrook brand name 60 floorplans available in 2011 M.S.R.P.(Base) Travel Trailers Edgewater $14,000 – $22,000 Harmony $14,000 – $25,000 Sunset Creek $17,000 – $25,000 Brookside $20,000 – $25,000 Bristol Bay $27,000 – $35,000 Fifth Wheels Harmony $24,000 – $ 30,000 Brookside $25,000 – $ 35,000 Bristol Bay $32,000 – $ 50,000 Titan - SURV $45,000 – $ 55,000 Westpointe $80,000 – $100,00015 * New/Redesigned for 2011
    • Towable Products Fifth Wheel West Pointe Travel Trailer Sunset Creek16
    • Current RV Market Environment  Economic conditions stabilize:  Consumer confidence still lagging, but trending in the right direction  Unemployment levels appear to have stabilized and job growth appears to be starting  Financing conditions stabilize:  Existing wholesale and retail players are focused on partnering with strong manufacturers  Marketplace is more competitive and rational – retail and wholesale  Dealer inventory turns are appropriate and aged inventory significantly reduced  Interest rates at historic low levels17
    • Outlook We believe that retail sales will be the key driver to sustain our recovery and for continued growth  Results from most Fall and Winter Shows significantly better than last year  We continue to review retail activity to ensure our production schedule is in line with end retail demand  Ample available physical capacity despite facility consolidation; motor home capacity estimated to be 10,500 to 12,200 units per year depending on mix; towable capacity approximately 8,000 units While primary goal is profitability, it is important to “give back” to employees who worked so hard throughout the recession.  Didn’t pass on health care premium increases to employees in January 2011  Restored salaries reduced in March of FY2009 effective March of FY2011  Stock granted to key management in March of FY 2011 Diversification:  We continue to analyze additional diversification opportunities18
    • Financial Overview
    • Revenues/Gross Profit (Fiscal Year – Revenues in Millions, Gross Profit as Percent of Net Revenues) $1,200.0 20.0% $1,114.2 14.6% 15.0% $1,000.0 14.1% 13.4% 13.8% 12.4% 12.1% 11.4% $992.0 9.8% $864.4 $870.2 10.0% $825.3 $845.2 $800.0 5.8% 5.8% 5.0% $671.7 2.8% $604.4 $600.0 0.0% $449.5 -5.0% $400.0 -10.0% $211.5 $230.3 $191.5 $200.0 -15.0% -14.5% $0.0 -20.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 First 6 First 6 Months Months 2010 2011 Revenues Gross Profit (Deficit)20
    • Winnebago Industries Recovery Significant improvement noted in the first six months of FY2011 due to the following:  Added volume which resulted in greater fixed cost absorption and improved labor efficiencies  Increased average selling price of our product of 10.3% due to an increased mix of higher-priced Class A product sold  Reduced discounting and retail programs due to reasonable dealer inventory levels and improved retail registrations, which were up 20% as compared to prior year As a result, we saw significant improvements throughout Fiscal 2011 in both net revenues and in our operating performance.21
    • EBITDA/Free Cash Flow (Fiscal Year In Millions) Free cash flow is defined as cash flow from operating activities less capital expenditures.22
    • Dealer Inventory of Winnebago Industries Product (Class A, B & C - Fiscal Year)23
    • Winnebago Industries: Motor Home Shipments, Retail Activity and Dealer Inventory As of Quarter End Wholesale Retail Dealer Order (In units and presented in fiscal quarters) Deliveries Registrations Inventory Backlog 3rd Quarter 2009 620 1,214 2,324 382 4th Quarter 2009 605 1,235 1,694 940 1st Quarter 2010 794 921 1,567 1,521 2nd Quarter 2010 1,109 654 2,022 1,159 Rolling 12 months (March 2009 through Feb 2010) 3,128 4,024 3rd Quarter 2010 1,366 1,388 2,000 935 4th Quarter 2010 1,164 1,120 2,044 818 1st Quarter 2011 1,115 1,093 2,066 698 2nd Quarter 2011 909 796 2,179 957 Rolling 12 months (March 2010 through Feb 2011) 4,554 4,397 Wholesale Retail Dealer Order Key Comparisons: Deliveries Registrations Inventory Backlog Rolling 12 month comparison (Feb 2011 to Feb 2010) 1,426 373 45.6% 9.3% 2nd quarter 2011 as compared to 2nd quarter 2010 (200) 142 157 (202) -18.0% 21.7% 7.8% -17.4% 2nd quarter 2011 as compared to 1st quarter 2011 (206) (297) 113 259 -18.5% -27.2% 5.5% 37.1%24
    • Winnebago Industries Backlog As Of February 26, 2011 February 27, 2010 Increase (1) (1) Units % Units % (Decrease)Class A gas 253 26.4% 372 32.1% -119 -32.0%Class A diesel 157 16.4% 263 22.7% -106 -40.3%Total Class A 410 42.8% 635 54.8% -225 -35.4%Class B 82 8.6% 16 1.4% 66 412.5%Class C 465 48.6% 508 43.8% -43 -8.5% Total motor home backlog (2) 957 100.0% 1,159 100.0% -202 -17.4%Fifth wheel 87 57.6% — —% 87Travel trailer 64 42.4% — —% 64 (2) Total towable backlog 151 100.0% — —% 151(1) Percentages may not add due to rounding differences.(2) We include in our backlog all accepted purchase orders from dealers to be shipped w ithin the next six months.Orders in backlog can be cancelled or postponed at the option of the purchaser at any time w ithout penalty and,therefore, backlog may not necessarily be an accurate measure of future sales.25
    • Summary
    • Industry Growth Opportunities Positive Demographic Trends  Baby Boom market of 78 million Americans continues to grow 350,000 per month  Ages of motor home owners continue to broaden with younger buyers coming into the market as young as 35 and older owners remaining healthy and active in RV lifestyle  Trade cycle is 5 to 7 years – 2004 was the peak year for motor home retail purchases  Married unemployment (February 2011 Dept. of Labor Statistics) has run at 5.6%, vs. 8.9% for singles – nearly 90% of our owners are married Go RVing  Successful national advertising campaign  Target of Baby Boomers w/kids and Empty Nesters27
    • Winnebago Industries Advantages Our Brand  Highest brand recognition in the industry Vertical Integration  Increased profitability in times of high volume Quality Reputation  Quality Circle Award winner 15 consecutive years  Best in Class aftermarket service support Sustainability  Successfully managed through previous industry downturns during our 52-year history  Strong balance sheet ($62.8 million in cash and no long-term debt)  Continued focus on new product development and potential diversification for future growth28
    • www.winnebagoind.com
    • Appendices Motor Home Industry: Wholesale and Retail Motor Home Industry Wholesale Shipments & Retail Registrations Motor Home Industry Shipment History – Class A, B and C Winnebago Industries’ Products30
    • Motor Home Industry: Wholesale and Retail US and Canada Industry Class A, B & C Motor Homes Industry Shipments (1) Retail Registrations (2) Calendar Year Calendar Year Increase Increase 2010 2009 (Decrease) Change 2010 2009 (Decrease) Change 1st quarter 5,700 2,400 3,300 137.5% 4,900 4,800 100 2.1% 2nd quarter 7,800 3,200 4,600 143.8% 8,300 7,100 1,200 16.9% 3rd quarter 6,200 3,300 2,900 87.9% 6,000 5,800 200 3.4% 4th quarter 5,600 4,300 1,300 30.2% 4,500 4,200 300 7.1% Total 25,300 13,200 12,100 91.7% 23,700 21,900 1,800 8.2% Increase Increase 2011 2010 (Decrease) Change 2011 2010 (Decrease) Change January 2,000 1,500 500 33.3% 1,200 1,200 - 0.0% February 1,900 2,000 (100) (5.0)% 1,600 March 2,600 2,200 400 18.2% 2,100 2nd quarter 7,800 7,800 - 0.0% 8,300 3rd quarter 6,800 6,200 600 9.7% 6,000 4th quarter 5,900 5,600 300 5.4% 4,500 (3) Total 27,000 25,300 1,700 6.7% 23,700 (1) Class A, B and C wholesale shipments as reported by RVIA, rounded to the nearest hundred. (2) Class A, B and C retail registrations as reported by Statistical Sureys for the US and Canada rounded to the nearest hundred. (3) Statistical Surveys has not issued a projection for 2010 retail demand.31
    • Motor Home Industry Wholesale Shipments & Retail Registrations (January 2008 – January 2011) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Wholesale (A,B,C) Retail (A,B,C)32
    • Motor Home Industry Shipment History (Class A, B & C in Thousands – Calendar Year) * Estimates for 201133
    • Winnebago Industries’ Products Class A - Gas Conventional motor homes constructed directly on medium-duty truck chassis, which include a gas-powered engine and drivetrain components. Class A - Diesel Conventional motor homes constructed directly on medium-duty truck chassis, which include a diesel-powered engine and drivetrain components.34
    • Winnebago Industries’ Products Class C Mini motor homes built on van-type (cutaway) chassis. Class B Panel-type truck to which RV manufacturer adds any two of the following conveniences: sleeping, kitchen and toilet facilities, also 110- volt hookup and freshwater.35