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CL King Virtual NDR – April 1-2, 2020
Michael Happe
President and CEO
Brian Hazelton
VP/GM Winnebago
Motorhomes
Ashis Bhattacharya
VP Business Development &
Advanced Technology,
GM, Specialty Vehicles
Don Clark
VP, Winnebago Industries,
President, Grand Design RV
Scott Degnan
VP/GM Winnebago
Towables
Bryan Hughes
CFO & VP, IT and
Strategic Planning
Chris West
VP Operations
Bret Woodson
VP Human Resources and
Administration
Stacy Bogart
VP and GC, Corporate
Secretary and Corporate
Responsibility
Steve Heese
VP, Winnebago Industries,
President, Chris-Craft
Dave Miles
Chairman of the Board
CORPORATELEADERSHIP
2
Matt Miller
VP, Winnebago Industries,
President, Newmar
FORWARDLOOKING STATEMENT
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking
statements are inherently uncertain and involve potential risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including,
but not limited to competition and new product introductions by competitors, our ability to attract and retain qualified personnel, increases in market compensation rates, business or
production disruptions, sales order cancellations, risk related to the terms of our credit agreement and compliance with debt covenants and leverage ratios, stock price volatility and
share dilution, disruptions or unanticipated costs from facility expansions, availability of labor, a slowdown in the economy, low consumer confidence, the effect of global tensions,
increases in interest rates, availability of credit, availability of financing for RV and marine dealers, impairment of good will, risk related to cyclicality and seasonality of our business,
slower than anticipated sales of new or existing products, integration of operations relating to merger and acquisition activities generally, our plans to acquire Newmar Corporation
(“Newmar”), risk that our acquisition of Newmar (the “Newmar Acquisition”) will not be completed, the possibility that the Newmar acquisition may not perform as expected or may
not result in earnings growth, difficulties and expenses related to integrating Newmar into our business, possible unknown liabilities of Newmar, significant costs related to the Newmar
acquisition, increased focus of management attention and resources on the Newmar Acquisition, inadequate liquidity or capital resources, inventory and distribution channel
management, our ability to innovate, our reliance on large dealer organizations, significant increase in repurchase obligations, availability and price of fuel, availability of chassis and
other key component parts, increased material and component costs, exposure to warranty claims, ability to protect our intellectual property, exposure to product liability claims,
dependence on information systems and web applications, any unexpected expenses related to the implementation of our Enterprise Resource Planning system, impacts of public
health crises, such as COVID-19, risk related to data security, governmental regulation, including for climate change and risk related to anti-takeover provisions applicable to us.
Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's
filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or from the Company upon request. The Company
disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any changes in the Company's
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.
3
COMPANY OVERVIEW
We help our customers
explore the outdoor lifestyle,
enabling extraordinary
experiences as they travel, live,
work, and play.
We will be the trusted leader in
outdoor lifestyle solutions by
providing unmatched quality,
innovation, and service in the
industries we engage.
To create lifetime advocates
through a relentless focus on
delivering an unsurpassed
customer experience.
OURNORTH STAR
5
Outdoor
lifestyle
brands
Diversified – only
public RV, marine
and specialty
vehicle company
Premium quality,
innovation, and
service
Vision not defined
by one product or
segment
Top talent is a
blend of
Outdoor and
other industry
experience
Significant
growth
runway
OURUNIQUE STORY
6
ENTERPRISESTRATEGIC PRIORITIES
Elevate Excellence
in Operations
Drive Higher Levels of Safety,
Quality, and ProductivityStrengthen and Expand
Core RV Business
Re-energize Motorhome;
Invest in Towable Growth
Build a High-
Performance Culture
Create UniqueBlendofLeadership,
Accountability andGiving
Expand to New,
Profitable Markets
Investigate Diversification –
Inside and Outside of RVs
Leverage Innovation and
Digital Engagement
Create Connected Customer
Advocacy
3
4
5
2
1
7
STRATEGIC TRANSFORMATION
8
WINNEBAGO INDUSTRIES: LEADING PREMIUM BRANDS
9
OPERATIONAL PROFILE
Class A, B, C, and Diesel
Motorhome MFG
North Iowa Region
Towables MFG
Middlebury, IN
Class A, C
Motorhome MFG
Nappanee, IN
Chris-Craft MFG
Sarasota, FL
4.2 million sq ft
under roof on 700 acres
Operating factories in
3 states, 8 campuses
4,700 manufacturing
employees
Vertically integrated
in North Iowa
Motorhome business
10
$113
$223
$300 $307 $328
2016 2017 2018 2019 F20 Q2 TTM
WINNEBAGOINDUSTRIESDELIVERINGSOLIDFINANCIALRESULTS
$975
$1,547
$2,017 $1,986
$2,275
2016 2017 2018 2019 F20 Q2 TTM
WGO IND Net Revenue WGO IND Gross Profit
$ - Millions
$62
$139
$182 $180 $194
2016 2017 2018 2019 F20 Q2 TTM
WGO IND Profit
$ - Millions
% of revenue
Adj EBITDA
$ - millions
% of revenue
WGO IND Free Cash Flow
$28
$83
$55
$93
$164
$0
$50
$100
$150
$200
2016 2017 2018 2019 F20 Q2 TTM
$ - Millions
FCF = Op CF less Cap Ex
10.7%
11.6%
14.4%
14.9%
14.4%
6.1%
6.4%
9.0% 9.0%
8.5%
~2.5X
2016
3X
2016
~6X
2016
~3X
2016
11
CONSISTENTLY OUTPERFORMING THERVMARKET
NORTHAMERICANUNITS-%GROWTHVS.LASTYEAR
Share History:
F16 Y/E: 3.0%
F17 Y/E: 7.1%
F18 Y/E: 8.4%
F19 Y/E: 9.5%
12
____________________
Sources: Statistical Surveys, Inc. through January 2020; not adjusted for month of January typical SSI error of 5-10 ppts
Share: 13.2% 12.0% 10.6%
Share Gain: +2.6 pp +2.0 pp +1.4 pp
organic +1.8 pp +1.3 pp +0.9 pp
NM acquisition +0.8 pp +0.7 pp +0.5 pp
-7.5% -7.2% -7.1%
15.3%
11.7%
7.3%
Trailing 3 months Trailing 6 months Trailing 12 months
Industry WGO IND
• Outdoor Experience Focus
• Multi-Market Growth Platforms
• Premium Brand Portfolio
• QIS Golden Threads
• Business Development Agility
• Guiding Vision & Values
• Integrated Organization
• Talent Versatility
• Holistic Engagement
• Customer-Focused NPD
• 3X Scale
• 4X Profitability
• Capital Allocation Discipline
• Ample Liquidity
• Analytics-based Decisions
STRATEGIC CULTURAL FINANCIAL
POISEDFORMOREPROFITABLE GROWTH
13
FINANCIAL
OVERVIEW
COVID-19 TOPICS
15
Liquidity
Cash $123M
ABL $193M
untapped
Debt
TLB $257M
<3.25x maintenance covenant on secured debt*
<4.25x incurrence covenant on total debt*
Convertible $300M
unsecured debt, no covenants
Dealer Health
CARES Act(Coronavirus Aid, Relief, and Economic Security)
Floor plan lender assistance
WGO assessing risk dealer by
dealer
Note: all figures as of F20 Q2
* Secured debt=TLB; total debt=TLB+Convert; leverage ratio defined as gross debt less cash / TTM adjusted EBITDA (including Newmar pro forma)
CARESAct
16
CARES=Coronavirus Aid, Relief, and Economic Security Act
CAPITAL ALLOCATION &DEBTSTRUCTURE
17
LEVERAGE RATIO HISTORY &EXPECTATIONS
2.7x
1.6x
2.1x
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Target Range Leverage Ratio
Q2
1.9x
Pre-Covid-19
expectations
18
ACQUISITION FINANCIAL FIT
CRITERIA GOAL
GRAND
DESIGN CHRIS-CRAFT NEWMAR
NPV Positive
ROIC Year 3 > WACC TBD TBD
Yield/Margins Accretive
Trend Positive
EPS Year 1 Accretive Cash EPS
Risk Tolerance
Adherence
Leverage ratio < 3.0
19
THEPATHFORWARD
Profitability Strong
Cash Flow
Financial
Flexibility
Sales
Growth
$
20
BUSINESS
DEVELOPMENT
BUSINESSDEVELOPMENT FRAMEWORK
M&A Specialty Vehicles Advanced Technology
22
TARGET ATTRACTIVENESS
▪ Quality, Innovation,
Service Mindset
▪ Management Strength
▪ Workplace Values
▪ Trust
▪ Market Size & Growth
▪ Current Market Position
▪ Growth Runway
▪ Strength/Sustainability of
Business Model
▪ Potential for Synergies
▪ Revenue Growth
▪ Margin Growth
▪ Enterprise Value
▪ Capital Investment
Required
▪ Return Metrics
STRATEGIC CULTURAL FINANCIAL
23
M&ASTRATEGY
GOLDEN THREADS CREATE A COMPETITIVE ADVANTAGE
WINNEBAGO INDUSTRIES
Future
Adjacent
Platform(s)
Motorhome Platform Towables Platform
Marine
Platform
BRAND
POSITIONING
Core Capabilities
DEALERS MANUFACTURING &
DESIGN
LIFESTYLE
INTERSECTION
SUPPLY
CHAIN
CUSTOMER-FIRST
MODEL
24
WINNEBAGO BRAND PORTFOLIO FITSWELLTOGETHERSEGMENT
MOTORHOMES TOWABLES MARINE
PREMIUM
STANDARD
COMPLEMENTARY, PREMIUM OUTDOOR LIFESTYLE BRANDS
OUTDOOR LIFESTYLE MARKET
25
ECONOMIC INDICATORS AND
CONSUMER TRENDS
RVECONOMIC INDICATORS
Sources:
* U.S. Department of Commerce
** U.S. Department of the Treasury
*** Dun & Bradstreet
**** Center for Microeconomic Data
*Interest Rates
*New Private Housing Starts
*Fuel Prices
*Fuel Availability
*Consumer Sentiment
***Wholesale & Retail Credit Availability
*Wages & Employment
**SUV & Light Truck Sales
Dealer Inventories
****Consumer Debt
Covid-19
27
MARINE ECONOMIC INDICATORS
Sources: Info-link, NMMA
U.S. Retail Gas Prices:
$2.32
weekly, week of February 10
Home Prices:
3.5%
YOY, through November 2019
Consumer Confidence Index:
131.6
monthly, for January 2020
U.S. Housing Starts:
21.6% to 4,323,000
R3M YOY through December 2019
NEW
U.S. Manufacturing PMI:
51.9
monthly, for January 2020
Recreational Vehicle
Wholesale Shipments:
-10%
R12M YOY through February 2020
28
49% of Americans, or 146 million people age 6 and over, reported participating in at least one outdoor
activity in 2017
▪ An increase of 1.7 million participants since 2016
▪ Most popular activities: running, fishing, hiking, bicycling, camping
Sources: KOA 2018/2019 North American Camping Report, Outdoor
Recreation Participation Topline Report 2017, 2018 Outdoor Industry
Association Report, * 2016 National Boating Participation Study
Significant
Outdoor
Activity
Participation
High Interest
in Camping
and Boating
Seeking Health
and Wellness
Aspirational: Across all age groups, camping ranked as #1 or #2 most popular aspirational outdoor activity
(i.e. activities that most interest non-participants)
73% of respondents* have gone boating; 36% are active boaters
Of those surveyed, key reasons cited for outdoor activities include
▪ Spending more time with family and friends
▪ Getting exercise and keeping physically fit
▪ Improving overall emotional well-being and health
THECALLOFTHEOUTDOORS ISSTRONG
29
CAMPERS
Growth in Select Diverse RV Buyers
Sources: KOA 2019 North American Camping Report, Statistical Surveys, Inc.
THEGROWTH ANDCHANGE INCAMPING
56%
51%
41%
34%
31%
25%
32%
36%
28%
27%
14%
15%
18%
28%
31%
4%
3%
5%
11%
11%
New Campers in 2018
New Campers in 2017
2018
2015
Census
Millennials Gen Xers Baby Boomers Mature
AGE
62% of U.S. households camp at least occasionally
7.2 million new U.S. households became campers over the last 4 years
(2014-2018)
24% of campers use an RV (compared to 22% average the last 4 years)
23% of new campers in 2018 use an RV as primary accommodation
CLASS B
HISPANIC
+14 pts
since 2017
_________________________________
___
AFRICAN AMERICAN
+14 pts
since 2015
FIFTH WHEEL & TRAVEL TRAILER
HISPANIC
+10 pts
since 2017
_______________________________
_____
AFRICAN AMERICAN
+7 pts
since 2015
2019
2012
30
• Diversity of consumers at all-time high
• Brand & product influencers are
non-traditional
• Story and cause compete with
performance and technology
• Urbanization collides with outdoor
desires
• Desire to individualize is increasing
• Mobility with connectivity
• Outdoors doesn’t only mean recreation
• Sharing economy prevalent
• Millennials are reshaping user experience and
customer service
TRACKING RVCONSUMER TRENDS
31
Consumer
• Wealth relocating
• Less democratic
• Love of outdoor recreation
• Participation holding steady
• 142 million people
• Increased boat-related spending
• Fishing - 2nd most popular
• Broaden appeal to diverse populations
Product
• 50% more expensive than 5 years ago
• Higher horsepower and content demand
• Outboard-powered for saltwater markets
• Sterndrive-powered for fresh water
• Wake-surfing remains niched and growing
• ~95% sold are <26 feet (includes PWCs)
MARINE CONSUMER TRENDS
32
MARINE INDUSTRY PERFORMANCE
33
RECREATIONAL VEHICLE
OVERVIEW
Product
Category
Class A Gas Class A Diesel Class B Class C Travel Trailer Fifth Wheel
Brands
Adventurer, Intent,
Sunstar, Vista
Canyon Star, Bay Star
Forza, Horizon
King Aire (L), Essex (L)
Dutch Star, Ventana,
New Aire, Mountain
Aire
Era, Revel, Travato
Fuse, Minnie Winnie,
Navion, Outlook, Spirit,
View
Imagine, Reflection,
Transcend, Minnie,
Voyage
Momentum, Reflection,
Solitude, Minnie,
Voyage
MSRP $122 - 200k
$258 - 470k
$625 – 980k (L)
$100 - 198k $85 – 160k $21 - 54k $35 - 102k
Description
▪ Built on a heavy
truck chassis
▪ Gas models
▪ Ability to tow a
small vehicle
▪ Built on a heavy
truck chassis
▪ Diesel models
▪ Ability to tow a
small vehicle
▪ Built by adding taller
roof and amenities
to existing van
▪ Easy to maneuver
▪ Built on a medium
truck chassis
▪ Similar features and
amenities to Class
A models
▪ Towed by means of
a hitch attached to
the frame of the
vehicle
▪ Constructed with a
raised forward
section that is
connected to the
vehicle with a
special fifth wheel
hitch
Motorized Towables
Note: All towable models are Grand Design excluding Minnie and Voyage. Towable MSRP range low end based on Winnebago products and high end based on Grand Design products. (L) – luxury
RVSANDCLASSES
35
RVINDUSTRY –WHOLESALE andRETAIL SHIPMENTS
36
As of January, 2020:
Trailing 3 mo vs LY*: -5%
Trailing 6 mo vs LY*: -6%
Trailing 12 mo vs LY*: -6%
* Note: month of January adjusted +6.3pts
vs SSI reporting for usual SSI range of error
(+~5-10 pp)
*
0
10
20
30
40
50
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
RV Wholesale Unit Shipments
2018 2019 2020
As of February, 2020:
Trailing 3 mo vs LY: 8%
Trailing 6 mo vs LY: flat
Trailing 12 mo vs LY: -10%
RVIA (spring 2020)
Calendar 2018 Actual -4%
Calendar 2019 Actual -16%
Calendar 2020 Forecast 1%
WINNEBAGO INDUSTRIES RVSTRATEGIES
Exciting Products
at the Right Price
Dealer Network
Optimization
Exceptional
Service
Embrace
Technology
37
MOTORHOME SEGMENT OVERVIEW
$881 $853 $861
$707
$912
2016 2017 2018 2019 F20 Q2
TTM
Net Revenue
Manufacturing
Transformation
Leveraging Strength
of the Brand
Dealer Channel
Upgrades
Streamlined Product
Portfolio
Exciting New Product
Launches
7.5%
6.6%
4.1% 3.9% 3.9%
2016 2017 2018 2019 F20 Q2
TTM
Adj EBITDA (% of Revenue)
37%
22% 20%
7% 7% 7%
Thor
Industries
Forest River Winnebago
Industries*
Rev Group Tiffin Other
Source: Statistical Surveys, Inc.; percent as reported for North America for rolling 12 months ended January 2020; * WGO includes Newmar
Market Share
38
TOWABLE SEGMENT OVERVIEW
WGO TOW expansion
3 GDRV expansions in 2 years
Strong Topline Growth
Margin Expansion
Dealer and Retail Share
Gains
New Product
Investments
$89
$685
$1,128 $1,179
$1,279
2016 2017 2018 2019 F20 Q2
TTM
Net Revenue
1.9%
13.1% 13.9% 13.7% 13.3%
2015 2016 2017 2018 2019 F20 Q2
TTM
Adj EBITDA (% of Revenue)
Source: Statistical Surveys, Inc.; percent as reported for North America for rolling 12 months ended January 2020
Market Share
47%
36%
9% 8%
Thor Industries Forest River Winnebago
Industries
Other
39
+1.6 pp vs
LY
QUALITY
Consumer-first mindset
Safe and dependable product
Dealer relations built on trust
PATHFORWARD
SERVICE
Industry leading
Key differentiator
Part of our brand equity
INNOVATION
Best style and newest
features, at the right price
Advanced technology
40
MARINE OVERVIEW
Source: SSI, NMMA
An addressable market of
68,000 units worth $5.1B
-10%
-3%
-1%
-11%
-9%
-18%
-4%
4%
-20%
-15%
-10%
-5%
0%
5%
Aluminum Fish Pontoon 11-40ft Fiberglass
Outboard
14-30ft Fiberglass
IO/IB
31-40ft Fiberglass
IO/IB
41-62ft Fiberglass
IO/IB
63-99ft Fiberglass
IO/IB
SkiBoat
BOATSANDCLASSES
SEPTEMBER 2019 LTM USA RETAIL UNIT SALES
Chris-Craft LTM Retail Sales
+16% in units
+24% in $
42
DRIVE SUSTAINABLE, PROFITABLE GROWTH
Accelerate New
Product Development
Strengthen Dealer
Network
Gross Margin
Expansion
CHRIS-CRAFT STRATEGIES
43
THEWINNEBAGO TOUCH
Opportunity to leverage Winnebago resources and expertise to accelerate growth initiatives
Increased
Production
Capacity
Investment by
Winnebago to
support
organic
growth
New Models
in Existing Product
Lines
New sizes with stern
drive or outboard
propulsion
options
Expansion and
Improvement of
Dealer Network
Develop global
dealer network
Entry into
New Boat
Categories
Leverage Chris-Craft
brand into new
categories
and sizes
Brand
Extension
Opportunities
Licensing in adjacent
nautically-inspired
categories
44
NEWMAR
ACQUISITION
Brand Distinction
Class A Product Overlap
NEWMAR –WGO FIT&INTEGRATION
An iconic mid-market brand
that stands for quality, utility,
service and exploring
Full line with unparalleled
brand recognition, broad
dealer support, and a flare for
leading trends
A well-known premium brand
that exemplifies high-end
design and total customer
satisfaction
A high-quality, fully
customizable product focused
on Class A / Super C sold
through renowned dealers
Source: WGO management
Source: www.rvtrader.com (average new vehicle price).
138 165 203 279 354 427 468
623 706
801
979
154
273
411
BayStarSport
Adventure
BayStar
CanyonStar
Forza
VentanaLe
Ventana
Horizon
NewAire
DutchStar
MountainAire
LondonAire
Essex
KingAire
($'000)
Price Points for Sunrise vs Winnebago
(Selected Models)
Sunrise Winnebago
Overall Product Overlap
Luxury
Class A
Diesel
Class A
Gas
Super C Class C Class B
$$ <---> $ $$ <---> $ $$ <---> $ $$ <---> $ $$ <---> $ $$ <---> $
46
NEWMARACQUISITION IMPACT
Greater Scale
(Revenue $mm)
Enhanced
Motorhome
Margins
(EBITDA Margin)
$1,986
$2,647$661
=
=
/
3.9%
5.6%
7.5%
Note: Winnebago Industries data as of Fiscal 2019 and Newmar data as of LTM Jun-2019
47
NEWMARPERFORMANCE JOURNEY
$251
$443
$661
2013 2016 LTM Jun-2019
~18%
CAGR
Revenue Growth
8%
18%
22%
2013 2016 LTM Jun-2019
Newmar’s Class A Diesel Market Share
22%
CAGR
(Dec-YE)
$ - Millions
$16
$29
$55
2013 2016 LTM Jun-2019
~28%
CAGR
Strong Profit Growth
(Dec-YE)
Adj EBITDA
$ - Millions
Unit Volume
Award-Winning Products
48
CORPORATE
RESPONSIBILITY
ESGSTRATEGIC PLANNING
CORPORATE
RESONSIBILITY
ADVISORY TEAM
Cross-Functional
Enterprise-Wide
ESG MATERIALITY
ASSESSMENT
Prioritized ESG Topics
GOAL-SETTING
Baseline-Data
Collected
PUBLISH REPORTS
50
CORPORATERESPONSIBILITY INACTION
ENVIRONMENT
• Long-term sustainability
linked to environment
• Eco-aware innovation
• Sustainable operations
• Minimizing impact
SOCIAL
• Safety
• Human Capital
o High-performance teams
o DEI
o Training and development
• Community
GOVERNANCE
• Board operations
• Ethics and compliance
• Ethics hotline
51
Employees Engaged with Community
• 100% of locations established Community GO teams to support local
communities and engage employees to learn, act, and inspire
• Community GO Awards recognize employee and team volunteers
• GO for Good Campaign supports employee giving
Strategic Nonprofit Partnerships Advance Goals
• 5x increase in community investment since 2015
COMMUNITY ENGAGEMENT
52
THE FUTURE
10% unit market share of
the North American RV
market at the end of
FY2020; compares to 3%
at the end of FY2016.
10% Operating Income
at the end of FY2020;
compares to 8.1% at
the end of FY2017.
10% of FY2020 sales
will come from RV
segments or
businesses we weren’t
in at the end of
FY2017.
Every employee will
be asked to engage in
an activity related to
one of the following
every year:
▪ Safety
▪ Quality
▪ Productivity
▪ Giving
* As communicated at the Company’s Investor Day in November 2017
FY2020GOALS*
MARKET SHARE OPERATING INCOME NEW BUSINESS
CULTURE &
PARTICIPATION
54
FOUNDATION SETFORTHEFUTURE
• Five-year pivot period (2016-2020) transformative – strategically, culturally, and financially
• Long-term focused, but intent on operational discipline and delivering consistent results
• Expansion in leadership breadth, depth, and appeal positions us for future growth
• Increasing strategic clarity around premium portfolio development, QIS (Quality, Innovation, and Service)
Golden Threads, and integrated culture
• Brand trifecta holds promise in core RV Market; Investments underway in organic diversification;
business development possibilities now multi-dimensional
• Next five-year (2025) strategies and goals to be unveiled in October 2020
55
WINNEBAGO INDUSTRIES: LEADING BRANDS
56
WinnebagoInd.com

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CL King Virtual NDR - April 2020

  • 1. CL King Virtual NDR – April 1-2, 2020
  • 2. Michael Happe President and CEO Brian Hazelton VP/GM Winnebago Motorhomes Ashis Bhattacharya VP Business Development & Advanced Technology, GM, Specialty Vehicles Don Clark VP, Winnebago Industries, President, Grand Design RV Scott Degnan VP/GM Winnebago Towables Bryan Hughes CFO & VP, IT and Strategic Planning Chris West VP Operations Bret Woodson VP Human Resources and Administration Stacy Bogart VP and GC, Corporate Secretary and Corporate Responsibility Steve Heese VP, Winnebago Industries, President, Chris-Craft Dave Miles Chairman of the Board CORPORATELEADERSHIP 2 Matt Miller VP, Winnebago Industries, President, Newmar
  • 3. FORWARDLOOKING STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve potential risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including, but not limited to competition and new product introductions by competitors, our ability to attract and retain qualified personnel, increases in market compensation rates, business or production disruptions, sales order cancellations, risk related to the terms of our credit agreement and compliance with debt covenants and leverage ratios, stock price volatility and share dilution, disruptions or unanticipated costs from facility expansions, availability of labor, a slowdown in the economy, low consumer confidence, the effect of global tensions, increases in interest rates, availability of credit, availability of financing for RV and marine dealers, impairment of good will, risk related to cyclicality and seasonality of our business, slower than anticipated sales of new or existing products, integration of operations relating to merger and acquisition activities generally, our plans to acquire Newmar Corporation (“Newmar”), risk that our acquisition of Newmar (the “Newmar Acquisition”) will not be completed, the possibility that the Newmar acquisition may not perform as expected or may not result in earnings growth, difficulties and expenses related to integrating Newmar into our business, possible unknown liabilities of Newmar, significant costs related to the Newmar acquisition, increased focus of management attention and resources on the Newmar Acquisition, inadequate liquidity or capital resources, inventory and distribution channel management, our ability to innovate, our reliance on large dealer organizations, significant increase in repurchase obligations, availability and price of fuel, availability of chassis and other key component parts, increased material and component costs, exposure to warranty claims, ability to protect our intellectual property, exposure to product liability claims, dependence on information systems and web applications, any unexpected expenses related to the implementation of our Enterprise Resource Planning system, impacts of public health crises, such as COVID-19, risk related to data security, governmental regulation, including for climate change and risk related to anti-takeover provisions applicable to us. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or from the Company upon request. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any changes in the Company's 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. 3
  • 5. We help our customers explore the outdoor lifestyle, enabling extraordinary experiences as they travel, live, work, and play. We will be the trusted leader in outdoor lifestyle solutions by providing unmatched quality, innovation, and service in the industries we engage. To create lifetime advocates through a relentless focus on delivering an unsurpassed customer experience. OURNORTH STAR 5
  • 6. Outdoor lifestyle brands Diversified – only public RV, marine and specialty vehicle company Premium quality, innovation, and service Vision not defined by one product or segment Top talent is a blend of Outdoor and other industry experience Significant growth runway OURUNIQUE STORY 6
  • 7. ENTERPRISESTRATEGIC PRIORITIES Elevate Excellence in Operations Drive Higher Levels of Safety, Quality, and ProductivityStrengthen and Expand Core RV Business Re-energize Motorhome; Invest in Towable Growth Build a High- Performance Culture Create UniqueBlendofLeadership, Accountability andGiving Expand to New, Profitable Markets Investigate Diversification – Inside and Outside of RVs Leverage Innovation and Digital Engagement Create Connected Customer Advocacy 3 4 5 2 1 7
  • 9. WINNEBAGO INDUSTRIES: LEADING PREMIUM BRANDS 9
  • 10. OPERATIONAL PROFILE Class A, B, C, and Diesel Motorhome MFG North Iowa Region Towables MFG Middlebury, IN Class A, C Motorhome MFG Nappanee, IN Chris-Craft MFG Sarasota, FL 4.2 million sq ft under roof on 700 acres Operating factories in 3 states, 8 campuses 4,700 manufacturing employees Vertically integrated in North Iowa Motorhome business 10
  • 11. $113 $223 $300 $307 $328 2016 2017 2018 2019 F20 Q2 TTM WINNEBAGOINDUSTRIESDELIVERINGSOLIDFINANCIALRESULTS $975 $1,547 $2,017 $1,986 $2,275 2016 2017 2018 2019 F20 Q2 TTM WGO IND Net Revenue WGO IND Gross Profit $ - Millions $62 $139 $182 $180 $194 2016 2017 2018 2019 F20 Q2 TTM WGO IND Profit $ - Millions % of revenue Adj EBITDA $ - millions % of revenue WGO IND Free Cash Flow $28 $83 $55 $93 $164 $0 $50 $100 $150 $200 2016 2017 2018 2019 F20 Q2 TTM $ - Millions FCF = Op CF less Cap Ex 10.7% 11.6% 14.4% 14.9% 14.4% 6.1% 6.4% 9.0% 9.0% 8.5% ~2.5X 2016 3X 2016 ~6X 2016 ~3X 2016 11
  • 12. CONSISTENTLY OUTPERFORMING THERVMARKET NORTHAMERICANUNITS-%GROWTHVS.LASTYEAR Share History: F16 Y/E: 3.0% F17 Y/E: 7.1% F18 Y/E: 8.4% F19 Y/E: 9.5% 12 ____________________ Sources: Statistical Surveys, Inc. through January 2020; not adjusted for month of January typical SSI error of 5-10 ppts Share: 13.2% 12.0% 10.6% Share Gain: +2.6 pp +2.0 pp +1.4 pp organic +1.8 pp +1.3 pp +0.9 pp NM acquisition +0.8 pp +0.7 pp +0.5 pp -7.5% -7.2% -7.1% 15.3% 11.7% 7.3% Trailing 3 months Trailing 6 months Trailing 12 months Industry WGO IND
  • 13. • Outdoor Experience Focus • Multi-Market Growth Platforms • Premium Brand Portfolio • QIS Golden Threads • Business Development Agility • Guiding Vision & Values • Integrated Organization • Talent Versatility • Holistic Engagement • Customer-Focused NPD • 3X Scale • 4X Profitability • Capital Allocation Discipline • Ample Liquidity • Analytics-based Decisions STRATEGIC CULTURAL FINANCIAL POISEDFORMOREPROFITABLE GROWTH 13
  • 15. COVID-19 TOPICS 15 Liquidity Cash $123M ABL $193M untapped Debt TLB $257M <3.25x maintenance covenant on secured debt* <4.25x incurrence covenant on total debt* Convertible $300M unsecured debt, no covenants Dealer Health CARES Act(Coronavirus Aid, Relief, and Economic Security) Floor plan lender assistance WGO assessing risk dealer by dealer Note: all figures as of F20 Q2 * Secured debt=TLB; total debt=TLB+Convert; leverage ratio defined as gross debt less cash / TTM adjusted EBITDA (including Newmar pro forma)
  • 16. CARESAct 16 CARES=Coronavirus Aid, Relief, and Economic Security Act
  • 18. LEVERAGE RATIO HISTORY &EXPECTATIONS 2.7x 1.6x 2.1x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Target Range Leverage Ratio Q2 1.9x Pre-Covid-19 expectations 18
  • 19. ACQUISITION FINANCIAL FIT CRITERIA GOAL GRAND DESIGN CHRIS-CRAFT NEWMAR NPV Positive ROIC Year 3 > WACC TBD TBD Yield/Margins Accretive Trend Positive EPS Year 1 Accretive Cash EPS Risk Tolerance Adherence Leverage ratio < 3.0 19
  • 22. BUSINESSDEVELOPMENT FRAMEWORK M&A Specialty Vehicles Advanced Technology 22
  • 23. TARGET ATTRACTIVENESS ▪ Quality, Innovation, Service Mindset ▪ Management Strength ▪ Workplace Values ▪ Trust ▪ Market Size & Growth ▪ Current Market Position ▪ Growth Runway ▪ Strength/Sustainability of Business Model ▪ Potential for Synergies ▪ Revenue Growth ▪ Margin Growth ▪ Enterprise Value ▪ Capital Investment Required ▪ Return Metrics STRATEGIC CULTURAL FINANCIAL 23
  • 24. M&ASTRATEGY GOLDEN THREADS CREATE A COMPETITIVE ADVANTAGE WINNEBAGO INDUSTRIES Future Adjacent Platform(s) Motorhome Platform Towables Platform Marine Platform BRAND POSITIONING Core Capabilities DEALERS MANUFACTURING & DESIGN LIFESTYLE INTERSECTION SUPPLY CHAIN CUSTOMER-FIRST MODEL 24
  • 25. WINNEBAGO BRAND PORTFOLIO FITSWELLTOGETHERSEGMENT MOTORHOMES TOWABLES MARINE PREMIUM STANDARD COMPLEMENTARY, PREMIUM OUTDOOR LIFESTYLE BRANDS OUTDOOR LIFESTYLE MARKET 25
  • 27. RVECONOMIC INDICATORS Sources: * U.S. Department of Commerce ** U.S. Department of the Treasury *** Dun & Bradstreet **** Center for Microeconomic Data *Interest Rates *New Private Housing Starts *Fuel Prices *Fuel Availability *Consumer Sentiment ***Wholesale & Retail Credit Availability *Wages & Employment **SUV & Light Truck Sales Dealer Inventories ****Consumer Debt Covid-19 27
  • 28. MARINE ECONOMIC INDICATORS Sources: Info-link, NMMA U.S. Retail Gas Prices: $2.32 weekly, week of February 10 Home Prices: 3.5% YOY, through November 2019 Consumer Confidence Index: 131.6 monthly, for January 2020 U.S. Housing Starts: 21.6% to 4,323,000 R3M YOY through December 2019 NEW U.S. Manufacturing PMI: 51.9 monthly, for January 2020 Recreational Vehicle Wholesale Shipments: -10% R12M YOY through February 2020 28
  • 29. 49% of Americans, or 146 million people age 6 and over, reported participating in at least one outdoor activity in 2017 ▪ An increase of 1.7 million participants since 2016 ▪ Most popular activities: running, fishing, hiking, bicycling, camping Sources: KOA 2018/2019 North American Camping Report, Outdoor Recreation Participation Topline Report 2017, 2018 Outdoor Industry Association Report, * 2016 National Boating Participation Study Significant Outdoor Activity Participation High Interest in Camping and Boating Seeking Health and Wellness Aspirational: Across all age groups, camping ranked as #1 or #2 most popular aspirational outdoor activity (i.e. activities that most interest non-participants) 73% of respondents* have gone boating; 36% are active boaters Of those surveyed, key reasons cited for outdoor activities include ▪ Spending more time with family and friends ▪ Getting exercise and keeping physically fit ▪ Improving overall emotional well-being and health THECALLOFTHEOUTDOORS ISSTRONG 29
  • 30. CAMPERS Growth in Select Diverse RV Buyers Sources: KOA 2019 North American Camping Report, Statistical Surveys, Inc. THEGROWTH ANDCHANGE INCAMPING 56% 51% 41% 34% 31% 25% 32% 36% 28% 27% 14% 15% 18% 28% 31% 4% 3% 5% 11% 11% New Campers in 2018 New Campers in 2017 2018 2015 Census Millennials Gen Xers Baby Boomers Mature AGE 62% of U.S. households camp at least occasionally 7.2 million new U.S. households became campers over the last 4 years (2014-2018) 24% of campers use an RV (compared to 22% average the last 4 years) 23% of new campers in 2018 use an RV as primary accommodation CLASS B HISPANIC +14 pts since 2017 _________________________________ ___ AFRICAN AMERICAN +14 pts since 2015 FIFTH WHEEL & TRAVEL TRAILER HISPANIC +10 pts since 2017 _______________________________ _____ AFRICAN AMERICAN +7 pts since 2015 2019 2012 30
  • 31. • Diversity of consumers at all-time high • Brand & product influencers are non-traditional • Story and cause compete with performance and technology • Urbanization collides with outdoor desires • Desire to individualize is increasing • Mobility with connectivity • Outdoors doesn’t only mean recreation • Sharing economy prevalent • Millennials are reshaping user experience and customer service TRACKING RVCONSUMER TRENDS 31
  • 32. Consumer • Wealth relocating • Less democratic • Love of outdoor recreation • Participation holding steady • 142 million people • Increased boat-related spending • Fishing - 2nd most popular • Broaden appeal to diverse populations Product • 50% more expensive than 5 years ago • Higher horsepower and content demand • Outboard-powered for saltwater markets • Sterndrive-powered for fresh water • Wake-surfing remains niched and growing • ~95% sold are <26 feet (includes PWCs) MARINE CONSUMER TRENDS 32
  • 35. Product Category Class A Gas Class A Diesel Class B Class C Travel Trailer Fifth Wheel Brands Adventurer, Intent, Sunstar, Vista Canyon Star, Bay Star Forza, Horizon King Aire (L), Essex (L) Dutch Star, Ventana, New Aire, Mountain Aire Era, Revel, Travato Fuse, Minnie Winnie, Navion, Outlook, Spirit, View Imagine, Reflection, Transcend, Minnie, Voyage Momentum, Reflection, Solitude, Minnie, Voyage MSRP $122 - 200k $258 - 470k $625 – 980k (L) $100 - 198k $85 – 160k $21 - 54k $35 - 102k Description ▪ Built on a heavy truck chassis ▪ Gas models ▪ Ability to tow a small vehicle ▪ Built on a heavy truck chassis ▪ Diesel models ▪ Ability to tow a small vehicle ▪ Built by adding taller roof and amenities to existing van ▪ Easy to maneuver ▪ Built on a medium truck chassis ▪ Similar features and amenities to Class A models ▪ Towed by means of a hitch attached to the frame of the vehicle ▪ Constructed with a raised forward section that is connected to the vehicle with a special fifth wheel hitch Motorized Towables Note: All towable models are Grand Design excluding Minnie and Voyage. Towable MSRP range low end based on Winnebago products and high end based on Grand Design products. (L) – luxury RVSANDCLASSES 35
  • 36. RVINDUSTRY –WHOLESALE andRETAIL SHIPMENTS 36 As of January, 2020: Trailing 3 mo vs LY*: -5% Trailing 6 mo vs LY*: -6% Trailing 12 mo vs LY*: -6% * Note: month of January adjusted +6.3pts vs SSI reporting for usual SSI range of error (+~5-10 pp) * 0 10 20 30 40 50 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb RV Wholesale Unit Shipments 2018 2019 2020 As of February, 2020: Trailing 3 mo vs LY: 8% Trailing 6 mo vs LY: flat Trailing 12 mo vs LY: -10% RVIA (spring 2020) Calendar 2018 Actual -4% Calendar 2019 Actual -16% Calendar 2020 Forecast 1%
  • 37. WINNEBAGO INDUSTRIES RVSTRATEGIES Exciting Products at the Right Price Dealer Network Optimization Exceptional Service Embrace Technology 37
  • 38. MOTORHOME SEGMENT OVERVIEW $881 $853 $861 $707 $912 2016 2017 2018 2019 F20 Q2 TTM Net Revenue Manufacturing Transformation Leveraging Strength of the Brand Dealer Channel Upgrades Streamlined Product Portfolio Exciting New Product Launches 7.5% 6.6% 4.1% 3.9% 3.9% 2016 2017 2018 2019 F20 Q2 TTM Adj EBITDA (% of Revenue) 37% 22% 20% 7% 7% 7% Thor Industries Forest River Winnebago Industries* Rev Group Tiffin Other Source: Statistical Surveys, Inc.; percent as reported for North America for rolling 12 months ended January 2020; * WGO includes Newmar Market Share 38
  • 39. TOWABLE SEGMENT OVERVIEW WGO TOW expansion 3 GDRV expansions in 2 years Strong Topline Growth Margin Expansion Dealer and Retail Share Gains New Product Investments $89 $685 $1,128 $1,179 $1,279 2016 2017 2018 2019 F20 Q2 TTM Net Revenue 1.9% 13.1% 13.9% 13.7% 13.3% 2015 2016 2017 2018 2019 F20 Q2 TTM Adj EBITDA (% of Revenue) Source: Statistical Surveys, Inc.; percent as reported for North America for rolling 12 months ended January 2020 Market Share 47% 36% 9% 8% Thor Industries Forest River Winnebago Industries Other 39 +1.6 pp vs LY
  • 40. QUALITY Consumer-first mindset Safe and dependable product Dealer relations built on trust PATHFORWARD SERVICE Industry leading Key differentiator Part of our brand equity INNOVATION Best style and newest features, at the right price Advanced technology 40
  • 42. Source: SSI, NMMA An addressable market of 68,000 units worth $5.1B -10% -3% -1% -11% -9% -18% -4% 4% -20% -15% -10% -5% 0% 5% Aluminum Fish Pontoon 11-40ft Fiberglass Outboard 14-30ft Fiberglass IO/IB 31-40ft Fiberglass IO/IB 41-62ft Fiberglass IO/IB 63-99ft Fiberglass IO/IB SkiBoat BOATSANDCLASSES SEPTEMBER 2019 LTM USA RETAIL UNIT SALES Chris-Craft LTM Retail Sales +16% in units +24% in $ 42
  • 43. DRIVE SUSTAINABLE, PROFITABLE GROWTH Accelerate New Product Development Strengthen Dealer Network Gross Margin Expansion CHRIS-CRAFT STRATEGIES 43
  • 44. THEWINNEBAGO TOUCH Opportunity to leverage Winnebago resources and expertise to accelerate growth initiatives Increased Production Capacity Investment by Winnebago to support organic growth New Models in Existing Product Lines New sizes with stern drive or outboard propulsion options Expansion and Improvement of Dealer Network Develop global dealer network Entry into New Boat Categories Leverage Chris-Craft brand into new categories and sizes Brand Extension Opportunities Licensing in adjacent nautically-inspired categories 44
  • 46. Brand Distinction Class A Product Overlap NEWMAR –WGO FIT&INTEGRATION An iconic mid-market brand that stands for quality, utility, service and exploring Full line with unparalleled brand recognition, broad dealer support, and a flare for leading trends A well-known premium brand that exemplifies high-end design and total customer satisfaction A high-quality, fully customizable product focused on Class A / Super C sold through renowned dealers Source: WGO management Source: www.rvtrader.com (average new vehicle price). 138 165 203 279 354 427 468 623 706 801 979 154 273 411 BayStarSport Adventure BayStar CanyonStar Forza VentanaLe Ventana Horizon NewAire DutchStar MountainAire LondonAire Essex KingAire ($'000) Price Points for Sunrise vs Winnebago (Selected Models) Sunrise Winnebago Overall Product Overlap Luxury Class A Diesel Class A Gas Super C Class C Class B $$ <---> $ $$ <---> $ $$ <---> $ $$ <---> $ $$ <---> $ $$ <---> $ 46
  • 47. NEWMARACQUISITION IMPACT Greater Scale (Revenue $mm) Enhanced Motorhome Margins (EBITDA Margin) $1,986 $2,647$661 = = / 3.9% 5.6% 7.5% Note: Winnebago Industries data as of Fiscal 2019 and Newmar data as of LTM Jun-2019 47
  • 48. NEWMARPERFORMANCE JOURNEY $251 $443 $661 2013 2016 LTM Jun-2019 ~18% CAGR Revenue Growth 8% 18% 22% 2013 2016 LTM Jun-2019 Newmar’s Class A Diesel Market Share 22% CAGR (Dec-YE) $ - Millions $16 $29 $55 2013 2016 LTM Jun-2019 ~28% CAGR Strong Profit Growth (Dec-YE) Adj EBITDA $ - Millions Unit Volume Award-Winning Products 48
  • 50. ESGSTRATEGIC PLANNING CORPORATE RESONSIBILITY ADVISORY TEAM Cross-Functional Enterprise-Wide ESG MATERIALITY ASSESSMENT Prioritized ESG Topics GOAL-SETTING Baseline-Data Collected PUBLISH REPORTS 50
  • 51. CORPORATERESPONSIBILITY INACTION ENVIRONMENT • Long-term sustainability linked to environment • Eco-aware innovation • Sustainable operations • Minimizing impact SOCIAL • Safety • Human Capital o High-performance teams o DEI o Training and development • Community GOVERNANCE • Board operations • Ethics and compliance • Ethics hotline 51
  • 52. Employees Engaged with Community • 100% of locations established Community GO teams to support local communities and engage employees to learn, act, and inspire • Community GO Awards recognize employee and team volunteers • GO for Good Campaign supports employee giving Strategic Nonprofit Partnerships Advance Goals • 5x increase in community investment since 2015 COMMUNITY ENGAGEMENT 52
  • 54. 10% unit market share of the North American RV market at the end of FY2020; compares to 3% at the end of FY2016. 10% Operating Income at the end of FY2020; compares to 8.1% at the end of FY2017. 10% of FY2020 sales will come from RV segments or businesses we weren’t in at the end of FY2017. Every employee will be asked to engage in an activity related to one of the following every year: ▪ Safety ▪ Quality ▪ Productivity ▪ Giving * As communicated at the Company’s Investor Day in November 2017 FY2020GOALS* MARKET SHARE OPERATING INCOME NEW BUSINESS CULTURE & PARTICIPATION 54
  • 55. FOUNDATION SETFORTHEFUTURE • Five-year pivot period (2016-2020) transformative – strategically, culturally, and financially • Long-term focused, but intent on operational discipline and delivering consistent results • Expansion in leadership breadth, depth, and appeal positions us for future growth • Increasing strategic clarity around premium portfolio development, QIS (Quality, Innovation, and Service) Golden Threads, and integrated culture • Brand trifecta holds promise in core RV Market; Investments underway in organic diversification; business development possibilities now multi-dimensional • Next five-year (2025) strategies and goals to be unveiled in October 2020 55