2. 2
This presentation includes certain statements that are “forward looking” statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). These forward looking statements involve uncertainties and risks. There can be
no assurance that actual results will not differ from our expectations. Factors which
could cause materially different results include, among others, 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, the level of
state and federal funding available for transportation, interest rate increases,
restrictive lending practices, recent management changes, the success of new
product introductions, the pace of acquisitions, asset impairment charges, cost
structure improvements, competition and general economic 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, 2012 and Part II, Item 1A of our Quarterly Report on
Form 10-Q for the period ended April 30, 2013. 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.
Forward Looking Statements
3. 3
The sole owner of operating subsidiaries that represent the world’s largest
manufacturer of recreation vehicles
• Founded in 1980 by Wade Thompson & Peter Orthwein with the acquisition
of Airstream, Inc.
• #1 in overall RV 36.1% of market*
• #2 in Travel Trailers 32.8% of market*
• #1 in Fifth Wheels 51.3% of market*
• #1 in Motorhomes 25.3% of market**
The sole owner of operating subsidiaries that combined represent one of the largest
manufacturers of mid-size buses in North America - 34% of market***
Approximately 8,800 employees****
96 facilities in 7 US states****
6.1 million square feet under roof****
Who is THOR
Source: *Statistical Surveys, Inc., YTD U.S. and Canada units YTD March 2013, excluding fold-
downs **Motorhomes includes Class A, B and C *** MSBMA, YTD December 2012 **** as of
July 31, 2012
4. 4
Travel Trailers
Fifth Wheels
Motor Homes
Buses
THOR’s Product Range
Towable
RV
$2,285,863
74%
Motorized
RV
$353,935
12%
Bus Group
$444,862
14%
FY2012 Sales*
* Fiscal year ended July 31, 2012
7. 7
Disciplined, Profitable Growth
• Profitable every year since 1980
• All time record $3.1 billion sales FY2012, up 12% from FY2011
• $2.8 billion sales in FY2011, up 21% from $2.3 billion sales in FY2010
• FY2012 Net Income of $121.7 million, up 15% from FY2011
• FY2012 EPS of $2.26, up 18% from $1.92 in FY2011
Sustainable Business Model
• Profitably weathered a severe downturn
• Increased capital investments position Thor for growth and margin improvement
over the long term
Solid Balance Sheet
• Cash and cash equivalents of $137.5 million on April 30, 2013
• Operations historically generate significant cash
• Solid history of dividends, increased from $0.15 to $0.18 at the beginning of
FY13
Why Invest in THOR
8. 8
Proven business model:
• Entrepreneurial and decentralized
• No ivory tower: approximately 8,800 employees, only 40 in corporate staff*
• Decision-making driven by the customer
• Big, but nimble
• Best management team in the business, as proven by sustained performance
An innovator in each of its business segments
Significant RV & Bus market leadership:
• Best positioned in towable RVs, historically fastest growing area
• #1 in Motorhomes, poised for continued growth
• Well positioned in the bus segment to drive complementary growth in luxury
market
Strong balance sheet to support growth and shareholder returns
What Makes THOR Different
* as of July 31, 2012
9. 9
Focus on assembly - not heavy manufacturing
• Limited 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 all RV reportable segments
• Provides scale and purchasing power
• Low cost producer
Balance sheet supports acquisitions and organic growth
Meaningful, strategic capacity
Diversified lineup of innovative product offerings
Preferred partnership in retail/wholesale financing
Strength to pay warranty and honor repurchase agreements, important to dealers and
consumers
THOR’s Competitive Advantages
11. 11
Currently a very competitive environment
• Top three RV competitors account for 77.4% of industry units*
• “Flight to quality” – consumers, dealers, lenders all seek to do
business with strong companies like Thor
Industry better balanced today
Pricing & promotional environment remains competitive
Consumer confidence better than last year, recent improvements in April
Wholesale and Retail lenders are prudent - applying “healthy discipline”
RV buyers seek the “power of choice” – want variety in brands and models
Industry Conditions: RV
*Source: Statistical Surveys, Inc., U.S. YTD March 2013
15. 15
Dealers
• Continued optimism
• Right-sized inventory
• Smaller base of dealers
• Access to wholesale credit
• Financial health
RV: State of Balance
RV 2013 2012 % change
Towables $440 $346 +27%
Motorized $210 $102 +106%
TOTAL $650 $448 +45%
Backlog: April 30 ($ millions)
Consumers
• Better access to retail credit
• Confidence better
• Low interest rates
• Great demographic trends
• Will shorten trips to reduce
fuel usage
16. 16
THOR RV Dealer Inventory
• Total Dealer inventory remains appropriate for current conditions
• Dealer inventory at April 30, 2013 up 14.4% compared with April 30,
2012, in line with 15.2% RV sales growth in the fiscal third quarter.
• Lenders still comfortable with current dealer inventory turns and
current credit line utilization, turns have increased resulting in
reduction in average age of units on dealers’ lots
2013 2012 % change
RV 64,899 56,734 +14.4%
Dealer Inventory: April 30 (units)
17. 17
Dealer inventories remain appropriate for consumer demand
“Now, it’s all about the retail consumer”
Wholesale & Retail units should be fairly balanced going forward
The RV Market Ahead
* Statistical Surveys, inc., includes US and Canada. 2009, 2010, 2011 & 2012 Actual, excluding camping trailers
** RVIA wholesale shipments excluding camping trailers and truck campers
Calendar Year
2009 2010 2011 2012
Industry Retail
Sales*
189,328 units 213,074 units
(+12.5%)
232,970 units
(+9.3%)
251,201 units
(+7.8%)
Industry
Wholesale
Shipments**
151,500 units 224,400 units
(+48.1%)
237,762 units
(+6.0%)
271,078 units
(+14.0%)
19. 19
One of the largest players in a $1 billion industry
34% market share*
A leader in low cost, fuel efficient transit, alternative fuel
Success in 40-ft. low floor bus industry
Top-quality sales and service network
Majority of our buses have certified 5-year life. Must be replaced regularly
Certified ISO 9001. World class quality
Acquired Krystal Infinity, LLC, in October 2012, a manufacturer of luxury coaches with
revenues of approximately $30 million annually
Acquired Federal Coach in December 2012, a premier luxury coach manufacturer with
revenues of approximately $25 million annually
THOR Bus
* MSBMA –YTD December 2012
20. 20
Mid-size buses are the most cost effective, common sense mass transportation
Transit bus cost is generally 80% federally funded
2013 opportunities
• Transit customers must replace buses
• New products in luxury market to enhance revenues with better margin
opportunity
• New Advantage product completed Altoona testing
Current Conditions: Bus
2013 2012 % change
Bus $200 $215 -7%
Bus Backlog: April 30 ($ millions)
21. 21
Thor’s management team recently developed a three-year strategic plan focused on
growth and margin improvement
The Strategic Plan was developed using a bottoms-up approach involving each of the
Company’s operating subsidiaries and management teams
Key elements of growth include product innovation and capacity expansion – targeting
mid- to high-single-digit growth
Key elements of margin expansion include improved product quality, value added
content and features, and volume leverage – targeting 200 basis points of gross margin
improvement over the planning horizon
RV Expansion
On June 3, Thor acquired the RV production facilities in Wakarusa, Indiana formerly
operated by Navistar to expand motorized production to meet current demand and to
vertically integrate RV paint operations
Nearly one million square feet of production space and 35 paint booths on 150 acres
Final transition plans to be implemented when the seller exits, which is expected late this
summer
Three-Year Strategic Plan
22. 22
Consolidated sales for the third quarter of fiscal 2013 were $1.05 billion, up 13% from $926.5 million
in the third quarter last year, based on strength in recreational vehicle (RV) sales. Net income for the
third quarter was $43.8 million, up 6% from $41.3 million in the prior-year third quarter. Diluted
earnings per share (EPS) for the third quarter was $0.82, up 5% from $0.78 in the third quarter last
year.
Included in net income and EPS for the third quarter of fiscal 2013 were non-cash goodwill and
intangible asset impairment charges of approximately $11.5 million. This included a $4.7 million
intangible asset impairment charge triggered by the expected sale of the net assets associated with
Company’s ambulance product line, and a $6.8 million goodwill impairment charge relating to the bus
segment reporting unit which historically included the ambulance product line. These charges reduced
EPS by $0.15 for the quarter. Excluding these items, EPS would have been $0.97 for the quarter.
Total RV segment sales were $929.8 million, up 15% from $807.2 million in the third quarter last year.
RV segment income before tax was $77.6 million, up 31% from $59.2 million in the prior-year period.
Towable RV sales were $742.5 million, up 9% from $680.5 million in the prior-year period. Income
before tax was $62.5 million, up 22% from $51.1 million in the third quarter last year. Towable RV
income before tax increased to 8.4% of revenues from 7.5% a year ago, as a result of increased
volumes and specific actions taken to improve operating efficiencies.
Motorized RV sales were $187.3 million, up 48% from $126.7 million in the prior-year third quarter.
Income before tax was $15.1 million, up 86% from $8.1 million last year. As a percent of revenues,
motorized RV income before tax rose to 8.1% of revenues from 6.4% a year ago, driven by improved
product mix, volumes and enhanced operating efficiencies.
Bus segment sales were $119.4 million, up slightly from $119.3 million in the third quarter last year.
Income before tax was a loss of $7.7 million, compared to income of $2.8 million in the third quarter
last year. Bus segment income before tax was unfavorably impacted by the non-cash impairment
charges relating to goodwill and intangibles of approximately $11.5 million.
Comments on 3rd Quarter 2013 Results
23. 23
Profitable every year since inception
Successfully weathered a severe downturn
Two growing businesses – RV and Bus
Increased capital investments position Thor for growth and margin improvement over
the long term
#1 overall RV market share
Rock-solid balance sheet. Significant cash and cash generation
Diversified and innovative products
Strong consumer, dealer and lender relationships
Experienced Team
THOR - Key Takeaways
25. 25
No golden parachutes
No ‘pro forma’ earnings. We report net income, not adjusted earnings to cover up
performance
Consistent focus on shareholder value
Simple compensation philosophy:
• Mainly cash compensation, without a cap, based on pre-tax income – a true pay
for performance philosophy
• Shift focus from stock options to restricted stock units
Corporate Integrity
26. 26
THOR’s RV Competitive Advantage
Source: Statistical Surveys, Inc., U.S. YTD March 2013
* Includes Palomino, Coachmen, Prime Time, Shasta and Dynamax
** Fleetwood adjusted to include Navistar RV for 2010-13 with the purchase of Navistar’s
RV business in May 2013.
U.S. Retail Registrations (units, excluding fold-downs)
Total Share % Total Share % Total Share % Total Share %
THOR 15,989 36.0% 72,988 36.3% 67,278 36.6% 64,837 37.3%
Forest River* 14,348 32.3% 60,322 30.0% 52,856 28.8% 46,788 26.9%
Jayco 4,022 9.1% 21,413 10.7% 20,048 10.9% 17,784 10.2%
Winnebago 1,496 3.4% 6,223 3.1% 4,852 2.6% 5,180 3.0%
Fleetwood** 1,014 2.3% 4,482 2.2% 4,363 2.4% 5,334 3.1%
Subtotal 36,869 83.0% 165,428 82.3% 149,397 81.3% 139,923 80.4%
All Others 7,525 17.0% 35,544 17.7% 34,386 18.7% 34,023 19.6%
Grand Total 44,394 100.0% 200,972 100.0% 183,783 100.0% 173,946 100.0%
YTD 3/31/13 Y/E 12/31/12 Y/E 12/31/11 Y/E 12/31/10
27. 27
Sales ($ millions)
Fiscal years ended July 31, Year to date ended April 30
$822
$1,245
$1,571
$2,188
$2,558
$3,066
$2,856
$2,641
$1,522
$2,277
$2,756
$3,085
$2,196
$2,666
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD '12 YTD '13
28. 28
Net Income ($ millions)
Fiscal years ended July 31, Year to date ended April 30
$26.7
$51.2
$78.6
$104.5
$119.1
$163.4
$134.7
$92.7
$17.1
$110.1 $106.3
$121.7
$77.4
$94.6
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD '12 YTD '13
29. 29
Diluted EPS
Fiscal years ended July 31, Year to date ended April 30
$0.56
$0.94
$1.37
$1.81
$2.09
$2.87
$2.41
$1.66
$0.31
$2.07
$1.92
$2.26
$1.43
$1.78
2001* 2002* 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD '12 YTD '13
*Adjusted for 2-for-1 stock split
30. 30
3rd Quarter Financial Summary
2013 2012 % Change
Net Sales 1,049.2 926.5 13.2%
Gross Profit 133.8 109.5 22.2%
% of Sales 12.8% 11.8%
SG&A 57.8 47.0 23.0%
% of Sales 5.5% 5.1%
Impairment of goodwill
and intangible assets 11.5 0.0 n/a
% of Sales 1.1% 0.0%
All Other 1.9 1.3
Income Before Tax 62.6 61.2 2.3%
% of Sales 6.0% 6.6%
Income Taxes 18.8 19.9
Net Income 43.8 41.3 6.1%
Diluted EPS 0.82$ 0.78$ 5.1%
Order Backlog
Towables 439.5 345.9 27.1%
Motorized 210.1 102.5 105.0%
Buses 199.6 215.2 -7.2%
Total 849.2 663.6 28.0%
*Amounts in thousands except per share data
Net Sales by segment:
• Towables +9.1%, motorized
+47.8%, bus up slightly
Income before tax by segment:
• Towables 8.4%, up from 7.5%
• Volume leverage and actions
to improve operating efficiency
• Motorized 8.1%, up from 6.4%
• Volume leverage
• Bus (6.4%), down from 2.4%
• Includes $11.5 million in
impairment of goodwill and
intangible assets
• Tax rate impact, resolution of state
tax matters
• EPS of $0.82, net of $0.15 impact
of non-cash impairment charges
