Winnebago Industries12 7-11
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
218
On Slideshare
218
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. December 7, 2011
  • 2. Forward-Looking StatementsThis presentation contains forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995.Investors are cautioned that forward-looking statements areinherently uncertain. A number of factors could cause actualresults to differ materially from these statements. These factorsare contained in the Company’s filings with the Securities andExchange Commission over the last 12 months, copies of whichare available from the SEC or from the Company upon request.2
  • 3. CORPORATE ANDRV INDUSTRY OVERVIEW
  • 4. Winnebago Industries Overview Revenues by Product Class Fiscal 2011 Founded in 1958 IPO 1966, NYSE 1970 Leading manufacturer of high-quality motor homes, travel trailers and fifth wheels Manufacturing facilities located in Iowa and Indiana Nonunion workforce of 2,130 as of August 27, 2011 North American dealer network of approximately 225 motorized and 170 towable locations Executive management team with average of 25 years RV manufacturing experience4
  • 5. 5 Motorized Family Tree Winnebago Industries manufactures three brands ofClass A, B and C motor homes: Winnebago, Itasca and Era 73 floorplans available in 2012 – 40% new Class B M.S.R.P. (Base) ERA $ 94,100 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 $ 92,600 - $112,400 Sightseer/Sunova $123,000 - $129,200 Adventurer/Suncruiser $148,000 - $167,200 Class A – Diesel Via/Reyo $121,700 - $123,800 Journey/Meridian $224,800 - $271,100 Tour/Ellipse $350,400 - $356,000 5
  • 6. RV Industry Class A & C U.S. Retail Market Share (Percent as reported by Statistical Surveys, Inc. CYTD/September 2011) Top 5 Manufacturers = 85.7%6
  • 7. Winnebago Industries Retail Market Share (As reported by Statistical Surveys, Inc. by calendar year) Through September 30, Calendar Year U.S. Retail Motorized: 2011 2010 2010 2009 2008 Class A gas 22.3% 23.2% 23.7% 22.9% 23.2% Class A diesel 17.5% 14.2% 15.2% 11.4% 8.1% Total Class A 20.2% 18.7% 19.5% 16.6% 15.3% Class C 17.1% 17.2% 17.9% 22.7% 22.8% Total Class A and C 18.8% 18.0% 18.8% 19.1% 18.3% Class B 6.0% 17.8% 15.9% 18.1% 3.5% Through September 30, Calendar Year Canadian Retail Motorized: 2011 2010 2010 2009 2008 Class A gas 17.0% 15.1% 14.9% 13.8% 18.4% Class A diesel 18.8% 9.4% 9.9% 7.0% 5.3% Total Class A 17.7% 12.5% 12.6% 10.0% 12.4% Class C 16.0% 14.1% 13.8% 9.5% 19.5% Total Class A and C 16.8% 13.4% 13.2% 9.8% 15.7% Through September 30, Retail Towable: U.S. Canada Travel trailer 0.6% 0.4% Fifth wheel 0.4% 0.5% Total Towables 0.6% 0.4% * The states of Maine and Minnesota are experiencing delays. Year to date through September, rentals accounted for 1,957 units, up 25% compared to 1,570 CYTD/September 2010.7
  • 8. What Differentiates Us? Our Brands Why we have such Evidence of our significant brand brand strength: strength: Top quality Prevalent use of our product in TV and in Longevity in the industry movies First to mass produce motor homes in an automotive assembly-line manufacturing Winnebago is synonymous style for “motor home” Exceptional aftermarket sales and service support Based on survey, Winnebago has 90% brand Strong dealer network recognition8
  • 9. What Differentiates Us? Vertical IntegrationWhy we are vertically integrated: • Our location • We have more control over our quality • It provides more flexibilityVertical integration processes: • Aluminum extrusion • Cabinetry/wood working • Soft goods (furniture, curtains, upholstery) • Vacuum • Rotational molding • Steel fabrication • Panel lamination • Multiple painting processes • Fiberglass manufacturing9
  • 10. What Differentiates Us? Quality Why we have a corporate 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 199710
  • 11. Winnebago Industries Towables Why SunnyBrook RV? • Quality reputation • Good product line with both travel trailer and fifth wheel choices • Good fit with Winnebago Industries Strategy: • 0.5% market share as of August 2011, which we plan to grow • Retain SunnyBrook brand and refresh offerings • Develop and market Winnebago brand travel trailer and fifth wheel trailer • New Winnebago ONE introduced in August 2011 • New Winnebago Five Lite fifth wheel introduced in September 201111
  • 12. Towable Family TreeWinnebago Industries Towables manufactures travel trailers and fifth wheel trailers under the SunnyBrook and Winnebago brand name 66 floorplans available in 2012 M.S.R.P. (Base) Travel Trailers SunnyBrook: Sunset Creek Sport* $16,400 - $22,700 Sunset Creek* $22,700 - $25,000 Harmony $16,900 - $26,900 Brookside $22,900 - $24,400 Raven* $25,700 - $26,800 Bristol Bay $35,100 - $37,100 Winnebago: ONE* $25,400 – 27,200 Fifth Wheels SunnyBrook: Brookside $29,000 - $33,600 Harmony* $30,200 - $34,100 Raven* $31,800 - $34,100 Bristol Bay $35,100 - $47,700 Winnebago: Lite Five* $30,200 - $34,100 * New/Redesigned for 2012 12
  • 13. Current RV Market Environment Economic conditions: • Consumer sentiment rose in November; however consumer confidence levels still low • Housing market appears to be still bottoming, foreclosure rates increased in October 2011 • Continued stock market volatility Financing conditions: • 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 • Interest rates at historic low levels13
  • 14. Winnebago Industries’ OutlookRetail sales key driver to improvement in motor home market • Winnebago Industries’ motor home retail demand consistent for the last three fiscal years (range of 4,100 – 4,500 units) • Continue to keep production schedule in line with end retail demand • Ample motor home capacity available with 10,500 to 12,200 units per year depending on mixTowable market is a substantial new revenue and earnings opportunity • Towable market significantly larger than motorized market • Current towable capacity of approximately 8,000 units14
  • 15. Financial Overview
  • 16. 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% 14.1% 13.4% 15.0% 12.4% 13.8% $1,000.0 12.1% 11.4% $992.0 $864.4 $870.2 10.0% $825.3 $845.2 $800.0 5.8% 8.0% 5.8% 5.0% $671.7 $604.4 $600.0 0.0% $496.4 $449.5 -5.0% $400.0 -10.0% $211.5 $200.0 -15.0% -14.5% $0.0 -20.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenues Gross Profit (Deficit)16
  • 17. Winnebago Industries Recovery We saw improvement during Fiscal 2011 in both net revenues and in our operating performance. • Increased revenues of 7.9% allowed for greater absorption of fixed costs and labor efficiencies: • Average selling price of our motor homes increased 6.7% due to an improved mix of higher-priced Class A product sold • Revenues also included eight months of towable product sales of $16.7 million as a result of SunnyBrook Manufacturing acquisition • Operating income of $11.3 million as compared to $520,000 in FY2010. • Retail registrations in Fiscal 2011 were up 10% compared to prior year17
  • 18. EBITDA/Free Cash Flow (Fiscal Year In Millions) Free cash flow is defined as cash flow from operating activities less capital expenditures.18
  • 19. Dealer Inventory of Winnebago Industries Product (Class A, B & C - Fiscal Year)19
  • 20. Winnebago Industries Shipments, Retail Activity and Dealer Inventory Motor Home Towable As of Quarter End As of Quarter End Wholesale Retail Dealer Order Wholesale Retail Dealer Order Deliveries Registrations Inventory Backlog Deliveries Registrations Inventory Backlog1st Quarter 2010 794 921 1,567 1,5212nd Quarter 2010 1,109 654 2,022 1,1593rd Quarter 2010 1,366 1,388 2,000 9354th Quarter 2010 1,164 1,120 2,044 818Fiscal 2010 4,433 4,0831st Quarter 2011 1,115 1,093 2,066 698 - - - -2nd Quarter 2011 909 796 2,179 957 85 100 891 1513rd Quarter 2011 1,283 1,394 2,068 642 326 189 1,028 1644th Quarter 2011 1,088 1,198 1,958 681 365 426 967 293Fiscal 2011 4,395 4,481 776 715 • Wholesale deliveries essentially flat in Fiscal 2011 • Acquired Towables during 2nd quarter of Fiscal as compared to 2010 which resulted in a similar 2011. level of dealer inventory. • Re-designed existing brands and developed the • Retail registrations up 10% in Fiscal 2011 over Raven product during spring and summer. 2010, and 8% higher than Fiscal 2009. • Began bringing Winnebago product offerings to market late summer. 20
  • 21. Winnebago Industries Backlog As of Change August 27, 2011 August 28, 2010 % Units % Units % Units Change Class A gas 230 33.2% 272 33.2% (42) (15.4%) Class A diesel 177 26.0% 218 26.7% (41) (18.8%) Total Class A 407 59.8% 490 59.9% (83) (16.9%) Class B 71 10.4% - - 71 100.0% Class C 203 29.8% 328 40.1% (125) (38.1%) (1) Total motor home backlog 681 100.0% 818 100.0% (137) (16.7%) Travel trailer 187 63.8% Fifth wheel 106 36.2% (1) Total towable backlog 293 100.0% Total approximate backlog revenue dollars (in 000s): Motor home $ 74,704 $ 82,773 ($8,069) (9.7%) Towable 6,669 - (1) Our backlog includes all accepted orders from dealers to be shipped within the next six months. Orders in backlog can be canceled or postponed at the option of the purchaser at any time without penalty and, therefore, backog may not necessarily be an accurate measure of future sales.21
  • 22. Summary
  • 23. Winnebago Industries AdvantagesOur Brand • Highest brand recognition in the industryVertical Integration • Increased profitability in times of high volumeQuality Reputation • Quality Circle Award winner 16 consecutive years • Best in Class aftermarket service supportSustainability • Successfully managed through previous industry downturns during our 53-year history • Strong balance sheet ($69.3 million in cash and no long-term debt) • Continued focus on new product development and potential diversification for future growth23
  • 24. www.winnebagoind.com
  • 25. Appendices• Motor Home Industry: Wholesale and Retail• Towable Industry: Wholesale and Retail• Motor Home Industry Wholesale Shipments & Retail Registrations• Recreation Vehicle Industry Shipment History• Motor Home Sales vs. New Single Family Home Starts• RV Deliveries Compared with Index of Consumers’ Buying Attitudes• Winnebago Industries’ Products25
  • 26. 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 (In units) 2010 2009 Increase Change 2010 2009 Increase 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 5,500 4,300 1,200 27.9% 4,600 4,200 400 9.5% Total 25,200 13,200 12,000 90.9% 23,800 21,900 1,900 8.7% Increase Increase (In units) 2011 2010 (Decrease) Change 2011 2010 (Decrease) Change 1st quarter 6,900 5,700 1,200 21.1% 5,100 4,900 200 4.1% 2nd quarter 7,800 7,800 - 0.0% 8,000 8,300 (300) (3.6)% 3rd quarter 5,300 6,200 (900) (14.5)% 6,000 6,000 - 0.0% (4) October 2,000 2,000 - 0.0% 2,000 (3) (4) November 1,600 1,600 - 0.0% 1,400 (3) (4) December 1,500 1,900 (400) (21.1)% 1,200 Total 25,100 25,200 (100) (0.4)% 19,100 23,800 (100) (0.5)% (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 Surveys for the U.S. and Canada combined, rounded to the nearest hundred. Maine and Minnesota are experiencing delayed reporting. (3) Based upon forecasted 2011 Class A, B and C wholesale shipments as reported by RVIA in the Roadsigns Fall 2011 issue. (4) Statistical Surveys has not issued a projection for 2011 retail demand.26
  • 27. Towable Industry: Wholesale and Retail US and Canada Travel Trailer & Fifth Wheel Industry Industry Shipments (1) Retail Registrations (2) 2010 2009 Increase Change 2010 2009 Increase Change 1st quarter 49,300 24,800 24,500 98.8% 31,100 28,900 2,200 7.6% 2nd quarter 62,300 34,600 27,700 80.1% 69,400 60,000 9,400 15.7% 3rd quarter 48,600 41,500 7,100 17.1% 57,200 49,900 7,300 14.6% 4th quarter 39,000 37,400 1,600 4.3% 28,300 25,300 3,000 11.9% Total 199,200 138,300 60,900 44.0% 186,000 164,100 21,900 13.3% Increase Increase 2011 2010 (Decrease) Change 2011 2010 (Decrease) Change 1st quarter 54,200 49,300 4,900 9.9% 33,400 31,100 2,300 7.4% 2nd quarter 66,000 62,300 3,700 5.9% 74,800 69,400 5,400 7.8% 3rd quarter 47,500 48,600 (1,100) (2.3)% 58,500 57,200 1,300 2.3% (4) October 16,300 13,600 2,700 19.9% 12,500 (3) (4) November 12,000 10,900 1,100 10.1% 9,200 (3) (4) December 11,000 14,500 (3,500) (24.1)% 6,500 Total 207,000 199,200 7,800 3.9% 166,700 186,000 9,000 5.7% (1) Towable wholesale shipments as reported by RVIA, rounded to the nearest hundred. (2) Towable retail registrations as reported by Statistical Sureys for the US and Canada combined rounded to the nearest hundred. Maine and Minnesota are experiencing delayed reporting. (3) Based upon forecasted 2011 Towable wholesale shipments as reported by RVIA in the Roadsigns Fall 2011 issue. (4) Statistical Surveys has not issued a projection for 2011 retail demand.27
  • 28. Monthly Motor Home Industry Wholesale Shipments & Retail Registrations (January 2008 – August 2011)28
  • 29. Recreation Vehicle Industry Shipment History (In Thousands – Calendar Year)Towables Motorized * Estimates for 2011/201229
  • 30. Motor Home Sales Vs. New Home Starts (Private Homes) (In Millions) (In Thousands)30
  • 31. 31
  • 32. 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.32
  • 33. 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.33
  • 34. Winnebago Industries’ Products Fifth Wheel A towable RV mounted on wheels and designed to be towed by a motorized vehicle by means of a towing mechanism that is mounted above or forward of the tow vehicle’s rear axle. Travel Trailer A towable RV mounted on wheels and designed to be towed by a motorized vehicle that is constructed with a roof and sidewalls made of rigid materials.34