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Investor Presentation | June 2017 1
Investor Presentation
June 2017
Investor Presentation | June 2017 2
Forward Looking Statements
Cautionary Statement Regarding Forward-Looking Information
This presentation document may contain 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. A number of factors could cause actual results to differ materially from
these statements, including, but not limited to increases in interest rates, availability of credit, low consumer confidence, availability of labor, significant
increase in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a slowdown in the economy, increased material
and component costs, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing
products, new product introductions by competitors, the effect of global tensions, integration of operations relating to mergers and acquisitions activities,
risks relating to the integration of Grand Design RV, and risks related to compliance with debt covenants and leverage ratios. Additional information
concerning certain risks and uncertainties that could cause our actual results to differ materially from that projected or suggested is contained in Item 1A
Risk Factors in Part I of the Company’s Annual Report on Form 10-K and in the Company's other filings with the Securities and Exchange Commission
(SEC), 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.
Investor Presentation | June 2017 3
Presenters / Attendees
Mike Happe – President & Chief Executive Officer
Bryan Hughes – Vice President & Chief Financial Officer
Ashis Bhattacharya – Vice President, Strategic Planning &
Business Development
Investor Presentation | June 2017 4
6.4%
8.8%
FY 2016 LTM*
Winnebago Industries Snapshot
Transformation into Broader, More
Diversified and Profitable Company
$975
$1,568
FY 2016 LTM*
Greater Scale (Revenue $MM)
Balanced Revenue Base
91%
9%
56%
44%
Motorized
Towable
LTM*FY 2016
Enhanced Profitability (Adjusted EBITDA Margin)
WORKFORCE
of over 4,000 highly skilled
employees with significant
industry expertise
BROAD AND DIVERSIFIED
lineup of innovative RV products
including motorhomes, travel trailers
and fifth wheel towable trailers
STRONG RELATIONSHIPS
with leading suppliers and service
providers to deliver a differentiated
customer experience
DEALER NETWORK
featuring strong relationships with
the leading motorized and towable
RV dealers across North America
FACILITIES
in Iowa, Indiana and Oregon with executive
office in Minneapolis-St. Paul, provide a
strong operational footprint
*Pro Forma LTM through 5/27/2017; see Appendix for Non-GAAP Reconciliation
LEADING BRAND EQUITY
synonymous with quality and history;
combining the industry’s most iconic
brand with its fastest-growing one
Investor Presentation | June 2017 5
• Industry leader with iconic brand, known for quality and innovation since 1958
• Strong and growing North American dealer network
• Improved scale and balanced portfolio across motorized and towable RVs
• Established brand identity with broad awareness
• Well positioned in large, attractive markets: Motorhomes $5.6B, Towable RVs $8.6B1
• Favorable economic and demographic trends driving industry growth
• Transforming Winnebago Industries into a larger company with a broader product offering
• Company-wide focus on driving operational excellence and profitable growth
• New vision focused on building premier outdoor lifestyle company
• Focus on enhancing operating leverage through greater efficiencies and continuous improvement
• Attractive margin profile drives strong free cash flow
• Capital allocation priorities: invest in organic growth; repay debt from recent acquisition; return cash to shareholders through
dividend and share repurchase
Investment Summary
Industry Leader
Compelling Growth
Opportunity
Clear Strategic Plan
Strong Financial Profile
WELL-POSITIONED TO DELIVER LONG-TERM SHAREHOLDER VALUE
(1) Calendar year 2016 RVIA Data
Investor Presentation | June 2017 6
Evolving for the Future
Enhanced Leadership and
Organizational Structure
Executive Leadership Team blends
significant RV industry experience with
proven new talent
Establishing best practices and culture
of consistent performance
Expanded Minneapolis-St. Paul office
facilitating improved collaboration and
access to major market
Renewed Strategic Focus
Transforming Winnebago Industries
into a larger company with a
broader product offering
Company-wide focus on driving
operational excellence and
profitable growth
New vision focused on building
premier outdoor lifestyle company
Significant Improvements
to Scale, Diversification,
Profitability and Talent
Successful integration of and continued
strong performance from Grand
Design acquisition
Significant share position in both
Motorized and Towable markets
More disciplined approach to
capital allocation
ENHANCED LEADERSHIP, STRATEGY AND SCALE POSITION WINNEBAGO INDUSTRIES FOR SUCCESS NOW AND IN THE FUTURE
Investor Presentation | June 2017 7
Broader, more balanced portfolio
with runway for growth
Combining two brands: the RV
industry’s most iconic brand and its fastest-
growing brand
Committed to investing in Grand Design
portfolio expansion to maintain momentum
Acquisition Progressing Ahead of Expectations
Completion of Grand Design acquisition creates
winning multi-brand platform
Significantly enhanced
financial profile
Strong momentum as Grand Design
continues to outperform
Margin, EPS and cash flow expansion
On pace to exceed total annual run-rate
cost synergies of $7 million, phased
in over three years
Establish critical relationships
between Winnebago and Grand
Design team members
Substantial integration progress focused on:
IT, Finance, HR and Strategic Sourcing
functions
Facilitating information sharing and
establishment of best practices
Grand Design leadership involved in
multiple aspects of Winnebago’s business
BALANCED FINANCIAL CULTURAL
Investor Presentation | June 2017 8
To help our customers explore
the outdoor lifestyle, enabling
extraordinary experiences as
they travel, live, work and play.
Our Purpose
To be the trusted leader in outdoor
lifestyle solutions by providing
unmatched innovation, quality and
service in the industries we engage.
Our Vision
Investor Presentation | June 2017 9
Popularity of Outdoor Lifestyle
of U.S. households went
camping at least once in 2016
Over a Quarter of U.S. Households Camp
Multiple Times per Year
new U.S. households became
campers over the last 3 years
Source: Kampgrounds of America (KOA) 2016 camping report.
74%
Occasional or
non-campers
26%
Camp 2+
times/year
61%
3.4M
32 million households
Investor Presentation | June 2017 10
Driver Growth and RV Penetration
Source: RVIA
Percentage of RV Owners Among U.S. Households
STRONG CONSUMER CONFIDENCE, HISTORICALLY LOW INTEREST RATES AND LOW FUEL PRICES DRIVING INDUSTRY GROWTH
5.0%
5.9% 5.8% 5.8%
6.5%
6.9%
7.9%
8.9%
9.3%
1980 1984 1988 1993 1997 2001 2004 2011 2015
159%
increase in number of consumers
the number of drivers
2x
Population Trends
(U.S. since 1970)
Investor Presentation | June 2017 11
13%
87%
Motorized Towable
39%
61%
Motorized Towable
RV Category Growth
13.2 25.2 24.8 28.2 38.4 44.0 47.3 54.8 62.6 66.8
21.9 24.1 24.0 25.8
33.5
39.3
45.0
50.3
2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E
Wholesale shipments Retail Registrations
152.5 217.1 227.5 257.6 282.8 312.8 326.9 376.0 409.5 420.4
164.1 186.0 205.9 224.5
256.7 280.6
317.6
352.5
2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E
Wholesale shipments Retail Registrations
Motorized Unit Volumes
(North America, in thousands)
Towable Unit Volumes
(North America, in thousands)
Industry Unit Split
Industry Revenue Split
Note: As of calendar year end
Source: RVIA 2016 Industry Profile; 2017 and 2018 represent RVIA estimates as of 6/5/2017
Towable data includes Travel Trailers, Fifth Wheels, Folding Campers and Truck Campers
14%
CAGR
12%
CAGR
Source: RVIA 2016 Industry Profile
Source: RVIA 2016 Industry Profile
Investor Presentation | June 2017 12
Growth Across Broad Range of Demographics
Source: U.S. Bureau of the Census; Kampgrounds of America
Strong Core Boomer Demographic New Demographics Adopting Outdoor Lifestyle
0
20,000,000
40,000,000
60,000,000
80,000,000
2010 2020 2030
Age 65–74 Age 75–85 Age 85+
All Campers
New Campers
34% 28% 28% 10%
44% 28% 17% 11%
By Age
Millennials Gen X Boomer Mature
77% 8% 8% 5%
60% 18% 11% 10%
By Ethnicity
Caucasian/
White
African
American/
Black
Hispanic/
Latino
Asian/
Pacific
Islander
Other
All Campers
New Campers60+ Years Old
nearly half of Winnebago’s
customers
65+ Years Old
U.S. population is expected to grow
69% between 2012 and 2030
STRONG CORE MARKET WITH ATTRACTIVE OPPORTUNITY TO PENETRATE ADDITIONAL DEMOGRAPHICS
Investor Presentation | June 2017 13
Favorable Economic Indicators
GOOD CAUTION TROUBLE
Interest Rates
Fuel Availability
Wholesale & Retail Credit
Wages & Employment
Dealer Inventories
Consumer Debt
Fuel Prices
New Private Housing Starts
Consumer Sentiment
Sources: US Department of Commerce, US Treasury, Dun & Bradstreet, Center for Microeconomic Data
Investor Presentation | June 2017 14
Clear Strategic Priorities
Elevate Excellence
in Operations
Drive Higher Levels of Safety,
Quality, and ProductivityStrengthen and Expand
Core RV Business
Reenergize Motorized; Invest in
Towable Growth
2
1
Build a High
Performance Culture
Create Unique Blend of
Leadership, Accountability
and Giving
3
Expand to New,
Profitable Markets
Investigate Diversification –
Inside & Outside of RVs
5
Leverage Innovation
& Digital Engagement
Create Connected Customer
Advocacy
4
Investor Presentation | June 2017 15
Strong, Diverse and Focused Team
Enhanced Team Structure
provides defined business
unit focus coupled with
enterprise-level accountability
Driving Lean Business
practices and operational
efficiencies across the
organization
New Executive Office
in Minneapolis-St. Paul Winnebago has greater
access to strategic resources needed to position the
company for future growth
Name Title Experience
EXECUTIVE LEADERSHIP TEAM
Michael Happe CEO 19 years at Toro; track record of success in strategic development, brand and product management
Bryan Hughes VP & CFO Strategic and financial expertise and public company leadership as Ecolab’s SVP & Corporate Controller
Brian Hazelton VP & GM of Motorhomes Customer-centric leader with track record of financial and market results; Former CEO at Schwing Americas
Don Clark President of Grand Design 30+ years RV industry experience at Grand Design, Thor and Keystone RV
Scott Degnan VP & GM of Towables 30+ years RV industry experience at Fleetwood, National RV, Coachmen and Winnebago Motorized
Chris West VP of Operations Career of manufacturing and supply chain leadership and change management expertise at Joy Global and AGCO
Ashis Bhattacharya VP of Strategic Planning and Development Track record of strategic planning success at Honeywell, Moog, Motorola Solutions and Bain & Co.
Jeff Kubacki VP & CIO CIO experience; Extensive digital transformation leadership at Westinghouse, Alliant Techsystems & Ecolab
Bret Woodson VP of Administration Joined Winnebago in 2015; more than two decades at Corbion and Sara Lee
Scott Folkers VP & General Counsel Joined Winnebago in 2010; nearly two decades as in-house General Counsel at John Morrell & Co. and Winnebago
BOARD ENHANCEMENTS
Robert Chiusano Appointed Chairman June 2016 Director since 2008; former COO, Commercial Systems for Rockwell Collins
Richard Moss Appointed Director Feb 2017 CFO, Hanesbrands
John Murabito Appointed Director April 2017 EVP & Chief Human Resources Officer, Cigna Corporation
STRATEGIC ADVISORS
Bill Fenech & Ron Fenech Strategic Advisors Each has 30+ years RV industry experience at Grand Design, Thor and Keystone RV
Investor Presentation | June 2017 16
$886 $872
2016 LTM*
Motorized Segment Overview
38%
23%
18%
7% 6% 4% 4%
Thor Forest River Winnebago Rev Group Tiffin Newmar Other
Market Share Revenue
($mm)
Source: Statistical Surveys, Inc.
Percent as reported for North America for rolling 12 months (April 2016 – March 2017)
Grow and leverage
flagship brand equity and
increase understanding
of end customer
Invest in product
innovations to reverse
market share dilution and
increase value across
streamlined portfolio
Implement a dealer
channel strategy focused
on alignment with stronger
partners
Key Strategies
$57
$49
2016 LTM*
Adjusted EBITDA
($mm)
*LTM as of 5/27/17; August fiscal year end *Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for
Non-GAAP Reconciliation
Investor Presentation | June 2017 17
$89
$696
2016 LTM*
Towable Segment Overview
50%
36%
5%
1%
8%
Thor Industries Forest River Winnebago Gulfstream
Coach
Other
Market Share Revenue
($mm)
Key Strategies
$5
$88
2016 LTM*
Adjusted EBITDA
($mm)
Continue integration of
Grand Design, sharing
best practices and
improving margins
Deliver above-trend growth
in mid-premium categories
across both Winnebago
and Grand Design brands
Expand Towable
production capacity to
meet and enable future
demand
*Pro Forma LTM as of 5/27/17; August fiscal year endSource: Statistical Surveys, Inc.
Percent as reported for North America for rolling 12 months (April 2016 – March 2017)
*Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for
Non-GAAP Reconciliation
Investor Presentation | June 2017 18
Leading Brand Equity In RV Industry
Recognized by Statistical Surveys, Inc. as top motorhome
brand each year since 1974
Reputation for quality craftsmanship, smart design and
functionality
Best-in-class aftermarket sales and service support
Constant innovation of new products and floorplans
Recent customer awards:
39%
34%
32%
29%
24%
Winnebago
Peer A
Peer B
Peer C
Peer D
Industry-Leading Consideration Among Potential RV Buyers
TWO VIBRANT RV BRANDS
American icon synonymous with
RV industry
Fastest-growing RV manufacturer
Rating among all RV brands
in 2016 Dealer Satisfaction
Index (DSI) for Quality,
Parts, Warranty and Sales
#1 86%
Net promoter score for
Grand Design as compared
to 31% average for all other
towable RV brands
Source: 2016 RVDA Dealer Satisfaction Index
Source: 2017 Company Brand Study
Investor Presentation | June 2017 19
Strong Dealer Network
Broad coverage in both
Motorized and Towable
Segments
Strong commitment
to dealers that can carry
most lines
Service partnership
critical to exceeding
customer expectations
STRONG NORTH AMERICAN NETWORK OF NEARLY 300 MOTORIZED AND 300 TOWABLE DEALER LOCATIONS
Investor Presentation | June 2017 20
Innovative New Products: Motorized
Winnebago Vista
New floor plans with attractive
entry-level price points
Winnebago Paseo
Innovative new Ford Transit based
product offering with appeal to
active outdoor enthusiasts
CLASS A CLASS B
ACTIVE PROJECTS UNDERWAY TO ADDRESS VALUE CHALLENGES AND UNMET CUSTOMER NEEDS
Winnebago Spirit
New floor plan provides large livability in a
compact and easy to drive package
CLASS C
Winnebago Forza
Diesel offering with high-value entry point
Winnebago Navion
New floor plans, including Murphy bed option
Investor Presentation | June 2017 21
Innovative New Products: Towable
Grand Design Solitude
Updated flagship, offering luxury
extended stay
Grand Design Imagine
Towing light without compromise
FIFTH WHEEL TRAVEL TRAILER
Winnie Drop
Retro tear drop with modern amenities
EXPANDING PORTFOLIO TO BROADEN PRODUCT OFFERING
Winnebago Minnie Series
New interior styling with broad array of features
Investor Presentation | June 2017 22
Operational Enhancements
Operational Excellence Capacity Expansion
• Four key areas of focus: Safety, Quality, Velocity and
Productivity
• Goals are to improve employee engagement, customer
satisfaction, throughput, profitability and working capital within
existing operations
• Put in place a robust Sales, Inventory and Operations Planning
(SIOP) process to match customer demand
• Implement and deploy Lean Tools to create a continuous
improvement culture (Strategy deployment, 6S Visual
Management, Plan for Every Part (PFEP), Value Stream
analysis and Performance Management)
• Intense focus on strategic sourcing across the enterprise (value
focus – cost, innovation, quality, working capital, risk)
• Leverage operations excellence, work flow analysis, material
flow and other tools to increase throughput across all locations
• Capacity across the business is being analyzed, and
appropriate investments will be made where needed
• West Coast:
 Diesel production is being set up on the West Coast in Junction City,
OR at the former Country Coach plant
 Plant setup is on plan, and first units are rolling out of the plant
• Iowa:
 New line added to Lake Mills for Class B vans; Charles City transitioned
to new Class C assembly
 With diesel production moving to the West Coast, more capacity has
opened up in Forest City – capacity constraints that had previously
restricted Class A Motorhome production have been alleviated
 Dedicated capacity for Class B and Class C continues to expand
• Indiana:
 Capacity expansion plans underway for both Winnebago and Grand
Design towable brands
 Production already underway from Grand Design’s new Imagine travel
trailer line
Investor Presentation | June 2017 23
55
28
13
25
CY 2007 CY 2008 CY 2009 CY 2010
Equipped To Navigate a Downturn
298
209
153
217
CY 2007 CY 2008 CY 2009 CY 2010
Towable Wholesale Shipments
in thousands
Source: Recreational Vehicle Industry Association
Motorized Wholesale Shipments
in thousands
Key differences
Balanced portfolio of towables and motorhomes
Improved operating leverage
Product line rationalization
Thoughtful vertical integration
Flexible, efficient labor force
Evolving and favorable demographic trends
Expanded entry level product offering
Source: Recreational Vehicle Industry Association
Investor Presentation | June 2017 24
Digital Transformation Initiatives
• CIO Jeff Kubacki is leading the process of Digital Transformation across the enterprise
focused on:
 Improved and Closer Customer Relationships
 Data-Driven Operations Excellence
 Business Intelligence
• The intent is to create a more data-driven, fact-based business culture at Winnebago
Industries, with optimized functionality across the system
 Business Intelligence tools will help to give Winnebago managers the data they need in the right place and at the right time
to make effective business decisions
• One of the critical areas of focus is completion of ongoing ERP project
Investor Presentation | June 2017 25
Free Cash Flow1,2
($mm)
Financial Highlights
$803
$945 $977 $975
$1,568
2013 2014 2015 2016¹ LTM*
$85
$104 $105 $113
$222
2013 2014 2015 2016 LTM*
$46
$63 $60 $62
$138
2013 2014 2015 2016 LTM*
Adjusted EBITDA
($mm)
$6 $13
$29 $28
$99
2013 2014 2015 2016 LTM*
*Pro Forma LTM as of 5/27/17; August fiscal year end
1In 2016 WGO exited the aluminum extrusion and bus manufacturing segment which generated $26mm of revenue in 2015 and $6mm in 2016 *Pro Forma LTM as of 5/27/17; August fiscal year end
*Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for Non-GAAP Reconciliation
*Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for Non-GAAP Reconciliation
1 Defined as cash from operations less capital expenditures
2 Includes capex of $3.3mm and $7.8mm in FY15 and FY16, respectively, for new ERP system; FY16 includes purchase of Junction City, OR
facility for approximately $10mm
Margin 5.7% 6.7% 6.1% 6.4%
Margin 10.5% 11.0% 10.7% 11.6%
Consolidated Net Revenue
($mm)
Gross Profit
($mm)
14.1%
8.8%
Investor Presentation | June 2017 26
Recent 3Q FY2017 Performance
$272
$476
Q3 2016 Q3 2017
Net Revenue
3Q FY 2017 ending May 27, 2017
Q3 revenues were up 75% year over year, reflecting continued success
in the Towables market, including the acquisition of Grand Design
Revenue growth was driven by the addition of $196.9 million in revenue
from Grand Design and strong organic growth from Winnebago-branded
Towable products
Motorized deliveries fell 4.3% year over year while ASP increased 2.6%
due to shifting product mix
$30
$71
Q3 2016 Q3 2017
Margin 14.9%11.1%
Gross Profit
Performance Summary
Growth - 75% Growth - 134%
Gross profit increased 134% year over year and
gross margin improved 380 bps in the quarter
Gross profit increase driven by favorable inclusion of Grand Design
products within overall sales mix
Highest gross margin level in nearly a decade with
further opportunity to expand
Investor Presentation | June 2017 27
Strong & Flexible Balance Sheet
• Paid down debt by $43 million in 3Q
 Debt-to-equity ratio of 68.9%
 Debt/EBITDA ratio of 1.79x, ahead of acquisition plan
 Repaid asset-backed loan in 3Q
• Reduced working capital by nearly $67 million YTD
• Expected CapEx of $5-7 million for FY2017
• Approximately $149 million in liquidity
 $24 million remaining cash on hand
 $125 million capacity on credit facility
Investor Presentation | June 2017 28
Capital Allocation Priorities
• Invest in new products, capacity expansion, technology improvements, productivity and innovation
• Maintain disciplined approach to pursuing M&A opportunities
• Prioritize de-levering the business immediately following the acquisition of Grand Design
• Goal is for leverage to be less than 1.5x Debt/EBITDA by FYE 2018
• Committed to delivering consistent and growing dividend payments
 Quarterly cash dividends—$0.10/share
• $2.6 million remaining under existing share repurchase authorization
SIGNIFICANT FREE CASH FLOW1 ENABLES DELEVERAGING WHILE SUPPORTING FUTURE GROWTH INITIATIVES
Invest in
the Business
Return Capital to
Shareholders
Pay Down
Debt
1 Defined as cash from operations less capital expenditures, see Appendix for Non-GAAP Reconciliation
Investor Presentation | June 2017 29
Investment Summary
INDUSTRY
LEADER
COMPELLING GROWTH
OPPORTUNITY FOR SALES
AND PROFITABILITY
CLEAR STRATEGIC
PLAN
STRONG FINANCIAL
PROFILE
Investor Presentation | June 2017 30
Appendix
Investor Presentation | June 2017 31
Non-GAAP Reconciliation
Invest in
the Business
Pay Down
Debt
The Company has provided non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as information supplemental and in
addition to the financial measures presented in the accompanying presentation that are calculated and presented in accordance with GAAP. Such non-GAAP
financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial
measures presented in the presentation. The non-GAAP financial measures in the accompanying presentation may differ from similar measures used by other
companies.
The following table reconciles revenue to pro forma revenue: The following table reconciles net income to adjusted EBITDA:
(1) Represents Grand Design for the period from March 1, 2016 through November 7, 2016 (acquisition date of November 8, 2016)
(2) EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Examples of items excluded from Adjusted EBITDA include the postretirement
health care benefit results from terminating the plan and the transaction costs related to our acquisition of Grand Design. We believe EBITDA and Adjusted EBITDA provide meaningful supplemental information
about our operating performance because they exclude amounts that we do not consider part of our core operating results when assessing our performance.
(In thousands) LTM as of 5/27/17
Motorized Revenue
Winnebago Industries, Inc. $ 872,383
Grand Design Pro Forma (1) -
Motorized Revenue 872,383
Towables Revenue
Winnebago Industries, Inc. 483,053
Grand Design Pro Forma (1) 213,061
Towables Revenue 696,114
Consolidated Revenue $ 1,568,497
(In thousands) 2013 2014 2015 2016 LTM as of 5/27/17
Net income $ 31,953 $ 45,053 $ 41,210 $ 45,496 $ 59,553
Interest expense - - 10 - 11,571
Provision for income taxes 13,141 19,624 18,324 20,702 29,797
Depreciation 4,764 3,997 4,513 5,745 6,789
Amortization of intangibles - - - - 22,577
EBITDA 49,858 68,674 64,057 71,943 130,287
Postretirement health (3,567) (4,573) (4,073) (6,124) (26,389)
Legal settlement - - - (3,400) (650)
Transaction costs - - - 355 6,730
Non-operating income (696) (768) (115) (457) (400)
Winnebago Industries, Inc. Adjusted EBITDA (2) 45,595 63,333 59,869 62,317 109,578
Grand Design Pro Forma Adjusted EBITDA (1) (2) - - - - 28,046
Adjusted EBITDA (2) $ 45,595 $ 63,333 $ 59,869 $ 62,317 $ 137,624
Investor Presentation | June 2017 32
Non-GAAP Reconciliation (continued)
Invest in
the Business
Pay Down
Debt
The Company has provided non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as information supplemental and in
addition to the financial measures presented in the accompanying presentation that are calculated and presented in accordance with GAAP. Such non-GAAP
financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial
measures presented in the presentation. The non-GAAP financial measures in the accompanying presentation may differ from similar measures used by other
companies.
The following table reconciles cash flow from operations to free cash flow:
(1) Represents Grand Design for the period from March 1, 2016 through November 7, 2016 (acquisition date of November 8, 2016)
(2) We believe Free Cash Flow is a meaningful measure because it incorporates the capital expenditures that contribute to generating cash from operations
(In thousands) 2013 2014 2015 2016 LTM as of 5/27/17
Cash from operations $ 10,238 $ 23,236 $ 45,183 $ 52,746 $ 88,355
Capital expenditures (4,422) (10,476) (16,573) (24,551) (14,363)
Winnebago Industries, Inc. Free Cash Flow (2) 5,816 12,760 28,610 28,195 73,992
Grand Design Pro Forma Free Cash Flow (1) (2) - - - - 24,902
Free Cash Flow $ 5,816 $ 12,760 $ 28,610 $ 28,195 $ 98,894

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WGO Investor Presentation - June 2017

  • 1. Investor Presentation | June 2017 1 Investor Presentation June 2017
  • 2. Investor Presentation | June 2017 2 Forward Looking Statements Cautionary Statement Regarding Forward-Looking Information This presentation document may contain 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. A number of factors could cause actual results to differ materially from these statements, including, but not limited to increases in interest rates, availability of credit, low consumer confidence, availability of labor, significant increase in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a slowdown in the economy, increased material and component costs, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, integration of operations relating to mergers and acquisitions activities, risks relating to the integration of Grand Design RV, and risks related to compliance with debt covenants and leverage ratios. Additional information concerning certain risks and uncertainties that could cause our actual results to differ materially from that projected or suggested is contained in Item 1A Risk Factors in Part I of the Company’s Annual Report on Form 10-K and in the Company's other filings with the Securities and Exchange Commission (SEC), 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. Investor Presentation | June 2017 3 Presenters / Attendees Mike Happe – President & Chief Executive Officer Bryan Hughes – Vice President & Chief Financial Officer Ashis Bhattacharya – Vice President, Strategic Planning & Business Development
  • 4. Investor Presentation | June 2017 4 6.4% 8.8% FY 2016 LTM* Winnebago Industries Snapshot Transformation into Broader, More Diversified and Profitable Company $975 $1,568 FY 2016 LTM* Greater Scale (Revenue $MM) Balanced Revenue Base 91% 9% 56% 44% Motorized Towable LTM*FY 2016 Enhanced Profitability (Adjusted EBITDA Margin) WORKFORCE of over 4,000 highly skilled employees with significant industry expertise BROAD AND DIVERSIFIED lineup of innovative RV products including motorhomes, travel trailers and fifth wheel towable trailers STRONG RELATIONSHIPS with leading suppliers and service providers to deliver a differentiated customer experience DEALER NETWORK featuring strong relationships with the leading motorized and towable RV dealers across North America FACILITIES in Iowa, Indiana and Oregon with executive office in Minneapolis-St. Paul, provide a strong operational footprint *Pro Forma LTM through 5/27/2017; see Appendix for Non-GAAP Reconciliation LEADING BRAND EQUITY synonymous with quality and history; combining the industry’s most iconic brand with its fastest-growing one
  • 5. Investor Presentation | June 2017 5 • Industry leader with iconic brand, known for quality and innovation since 1958 • Strong and growing North American dealer network • Improved scale and balanced portfolio across motorized and towable RVs • Established brand identity with broad awareness • Well positioned in large, attractive markets: Motorhomes $5.6B, Towable RVs $8.6B1 • Favorable economic and demographic trends driving industry growth • Transforming Winnebago Industries into a larger company with a broader product offering • Company-wide focus on driving operational excellence and profitable growth • New vision focused on building premier outdoor lifestyle company • Focus on enhancing operating leverage through greater efficiencies and continuous improvement • Attractive margin profile drives strong free cash flow • Capital allocation priorities: invest in organic growth; repay debt from recent acquisition; return cash to shareholders through dividend and share repurchase Investment Summary Industry Leader Compelling Growth Opportunity Clear Strategic Plan Strong Financial Profile WELL-POSITIONED TO DELIVER LONG-TERM SHAREHOLDER VALUE (1) Calendar year 2016 RVIA Data
  • 6. Investor Presentation | June 2017 6 Evolving for the Future Enhanced Leadership and Organizational Structure Executive Leadership Team blends significant RV industry experience with proven new talent Establishing best practices and culture of consistent performance Expanded Minneapolis-St. Paul office facilitating improved collaboration and access to major market Renewed Strategic Focus Transforming Winnebago Industries into a larger company with a broader product offering Company-wide focus on driving operational excellence and profitable growth New vision focused on building premier outdoor lifestyle company Significant Improvements to Scale, Diversification, Profitability and Talent Successful integration of and continued strong performance from Grand Design acquisition Significant share position in both Motorized and Towable markets More disciplined approach to capital allocation ENHANCED LEADERSHIP, STRATEGY AND SCALE POSITION WINNEBAGO INDUSTRIES FOR SUCCESS NOW AND IN THE FUTURE
  • 7. Investor Presentation | June 2017 7 Broader, more balanced portfolio with runway for growth Combining two brands: the RV industry’s most iconic brand and its fastest- growing brand Committed to investing in Grand Design portfolio expansion to maintain momentum Acquisition Progressing Ahead of Expectations Completion of Grand Design acquisition creates winning multi-brand platform Significantly enhanced financial profile Strong momentum as Grand Design continues to outperform Margin, EPS and cash flow expansion On pace to exceed total annual run-rate cost synergies of $7 million, phased in over three years Establish critical relationships between Winnebago and Grand Design team members Substantial integration progress focused on: IT, Finance, HR and Strategic Sourcing functions Facilitating information sharing and establishment of best practices Grand Design leadership involved in multiple aspects of Winnebago’s business BALANCED FINANCIAL CULTURAL
  • 8. Investor Presentation | June 2017 8 To help our customers explore the outdoor lifestyle, enabling extraordinary experiences as they travel, live, work and play. Our Purpose To be the trusted leader in outdoor lifestyle solutions by providing unmatched innovation, quality and service in the industries we engage. Our Vision
  • 9. Investor Presentation | June 2017 9 Popularity of Outdoor Lifestyle of U.S. households went camping at least once in 2016 Over a Quarter of U.S. Households Camp Multiple Times per Year new U.S. households became campers over the last 3 years Source: Kampgrounds of America (KOA) 2016 camping report. 74% Occasional or non-campers 26% Camp 2+ times/year 61% 3.4M 32 million households
  • 10. Investor Presentation | June 2017 10 Driver Growth and RV Penetration Source: RVIA Percentage of RV Owners Among U.S. Households STRONG CONSUMER CONFIDENCE, HISTORICALLY LOW INTEREST RATES AND LOW FUEL PRICES DRIVING INDUSTRY GROWTH 5.0% 5.9% 5.8% 5.8% 6.5% 6.9% 7.9% 8.9% 9.3% 1980 1984 1988 1993 1997 2001 2004 2011 2015 159% increase in number of consumers the number of drivers 2x Population Trends (U.S. since 1970)
  • 11. Investor Presentation | June 2017 11 13% 87% Motorized Towable 39% 61% Motorized Towable RV Category Growth 13.2 25.2 24.8 28.2 38.4 44.0 47.3 54.8 62.6 66.8 21.9 24.1 24.0 25.8 33.5 39.3 45.0 50.3 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E Wholesale shipments Retail Registrations 152.5 217.1 227.5 257.6 282.8 312.8 326.9 376.0 409.5 420.4 164.1 186.0 205.9 224.5 256.7 280.6 317.6 352.5 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E Wholesale shipments Retail Registrations Motorized Unit Volumes (North America, in thousands) Towable Unit Volumes (North America, in thousands) Industry Unit Split Industry Revenue Split Note: As of calendar year end Source: RVIA 2016 Industry Profile; 2017 and 2018 represent RVIA estimates as of 6/5/2017 Towable data includes Travel Trailers, Fifth Wheels, Folding Campers and Truck Campers 14% CAGR 12% CAGR Source: RVIA 2016 Industry Profile Source: RVIA 2016 Industry Profile
  • 12. Investor Presentation | June 2017 12 Growth Across Broad Range of Demographics Source: U.S. Bureau of the Census; Kampgrounds of America Strong Core Boomer Demographic New Demographics Adopting Outdoor Lifestyle 0 20,000,000 40,000,000 60,000,000 80,000,000 2010 2020 2030 Age 65–74 Age 75–85 Age 85+ All Campers New Campers 34% 28% 28% 10% 44% 28% 17% 11% By Age Millennials Gen X Boomer Mature 77% 8% 8% 5% 60% 18% 11% 10% By Ethnicity Caucasian/ White African American/ Black Hispanic/ Latino Asian/ Pacific Islander Other All Campers New Campers60+ Years Old nearly half of Winnebago’s customers 65+ Years Old U.S. population is expected to grow 69% between 2012 and 2030 STRONG CORE MARKET WITH ATTRACTIVE OPPORTUNITY TO PENETRATE ADDITIONAL DEMOGRAPHICS
  • 13. Investor Presentation | June 2017 13 Favorable Economic Indicators GOOD CAUTION TROUBLE Interest Rates Fuel Availability Wholesale & Retail Credit Wages & Employment Dealer Inventories Consumer Debt Fuel Prices New Private Housing Starts Consumer Sentiment Sources: US Department of Commerce, US Treasury, Dun & Bradstreet, Center for Microeconomic Data
  • 14. Investor Presentation | June 2017 14 Clear Strategic Priorities Elevate Excellence in Operations Drive Higher Levels of Safety, Quality, and ProductivityStrengthen and Expand Core RV Business Reenergize Motorized; Invest in Towable Growth 2 1 Build a High Performance Culture Create Unique Blend of Leadership, Accountability and Giving 3 Expand to New, Profitable Markets Investigate Diversification – Inside & Outside of RVs 5 Leverage Innovation & Digital Engagement Create Connected Customer Advocacy 4
  • 15. Investor Presentation | June 2017 15 Strong, Diverse and Focused Team Enhanced Team Structure provides defined business unit focus coupled with enterprise-level accountability Driving Lean Business practices and operational efficiencies across the organization New Executive Office in Minneapolis-St. Paul Winnebago has greater access to strategic resources needed to position the company for future growth Name Title Experience EXECUTIVE LEADERSHIP TEAM Michael Happe CEO 19 years at Toro; track record of success in strategic development, brand and product management Bryan Hughes VP & CFO Strategic and financial expertise and public company leadership as Ecolab’s SVP & Corporate Controller Brian Hazelton VP & GM of Motorhomes Customer-centric leader with track record of financial and market results; Former CEO at Schwing Americas Don Clark President of Grand Design 30+ years RV industry experience at Grand Design, Thor and Keystone RV Scott Degnan VP & GM of Towables 30+ years RV industry experience at Fleetwood, National RV, Coachmen and Winnebago Motorized Chris West VP of Operations Career of manufacturing and supply chain leadership and change management expertise at Joy Global and AGCO Ashis Bhattacharya VP of Strategic Planning and Development Track record of strategic planning success at Honeywell, Moog, Motorola Solutions and Bain & Co. Jeff Kubacki VP & CIO CIO experience; Extensive digital transformation leadership at Westinghouse, Alliant Techsystems & Ecolab Bret Woodson VP of Administration Joined Winnebago in 2015; more than two decades at Corbion and Sara Lee Scott Folkers VP & General Counsel Joined Winnebago in 2010; nearly two decades as in-house General Counsel at John Morrell & Co. and Winnebago BOARD ENHANCEMENTS Robert Chiusano Appointed Chairman June 2016 Director since 2008; former COO, Commercial Systems for Rockwell Collins Richard Moss Appointed Director Feb 2017 CFO, Hanesbrands John Murabito Appointed Director April 2017 EVP & Chief Human Resources Officer, Cigna Corporation STRATEGIC ADVISORS Bill Fenech & Ron Fenech Strategic Advisors Each has 30+ years RV industry experience at Grand Design, Thor and Keystone RV
  • 16. Investor Presentation | June 2017 16 $886 $872 2016 LTM* Motorized Segment Overview 38% 23% 18% 7% 6% 4% 4% Thor Forest River Winnebago Rev Group Tiffin Newmar Other Market Share Revenue ($mm) Source: Statistical Surveys, Inc. Percent as reported for North America for rolling 12 months (April 2016 – March 2017) Grow and leverage flagship brand equity and increase understanding of end customer Invest in product innovations to reverse market share dilution and increase value across streamlined portfolio Implement a dealer channel strategy focused on alignment with stronger partners Key Strategies $57 $49 2016 LTM* Adjusted EBITDA ($mm) *LTM as of 5/27/17; August fiscal year end *Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for Non-GAAP Reconciliation
  • 17. Investor Presentation | June 2017 17 $89 $696 2016 LTM* Towable Segment Overview 50% 36% 5% 1% 8% Thor Industries Forest River Winnebago Gulfstream Coach Other Market Share Revenue ($mm) Key Strategies $5 $88 2016 LTM* Adjusted EBITDA ($mm) Continue integration of Grand Design, sharing best practices and improving margins Deliver above-trend growth in mid-premium categories across both Winnebago and Grand Design brands Expand Towable production capacity to meet and enable future demand *Pro Forma LTM as of 5/27/17; August fiscal year endSource: Statistical Surveys, Inc. Percent as reported for North America for rolling 12 months (April 2016 – March 2017) *Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for Non-GAAP Reconciliation
  • 18. Investor Presentation | June 2017 18 Leading Brand Equity In RV Industry Recognized by Statistical Surveys, Inc. as top motorhome brand each year since 1974 Reputation for quality craftsmanship, smart design and functionality Best-in-class aftermarket sales and service support Constant innovation of new products and floorplans Recent customer awards: 39% 34% 32% 29% 24% Winnebago Peer A Peer B Peer C Peer D Industry-Leading Consideration Among Potential RV Buyers TWO VIBRANT RV BRANDS American icon synonymous with RV industry Fastest-growing RV manufacturer Rating among all RV brands in 2016 Dealer Satisfaction Index (DSI) for Quality, Parts, Warranty and Sales #1 86% Net promoter score for Grand Design as compared to 31% average for all other towable RV brands Source: 2016 RVDA Dealer Satisfaction Index Source: 2017 Company Brand Study
  • 19. Investor Presentation | June 2017 19 Strong Dealer Network Broad coverage in both Motorized and Towable Segments Strong commitment to dealers that can carry most lines Service partnership critical to exceeding customer expectations STRONG NORTH AMERICAN NETWORK OF NEARLY 300 MOTORIZED AND 300 TOWABLE DEALER LOCATIONS
  • 20. Investor Presentation | June 2017 20 Innovative New Products: Motorized Winnebago Vista New floor plans with attractive entry-level price points Winnebago Paseo Innovative new Ford Transit based product offering with appeal to active outdoor enthusiasts CLASS A CLASS B ACTIVE PROJECTS UNDERWAY TO ADDRESS VALUE CHALLENGES AND UNMET CUSTOMER NEEDS Winnebago Spirit New floor plan provides large livability in a compact and easy to drive package CLASS C Winnebago Forza Diesel offering with high-value entry point Winnebago Navion New floor plans, including Murphy bed option
  • 21. Investor Presentation | June 2017 21 Innovative New Products: Towable Grand Design Solitude Updated flagship, offering luxury extended stay Grand Design Imagine Towing light without compromise FIFTH WHEEL TRAVEL TRAILER Winnie Drop Retro tear drop with modern amenities EXPANDING PORTFOLIO TO BROADEN PRODUCT OFFERING Winnebago Minnie Series New interior styling with broad array of features
  • 22. Investor Presentation | June 2017 22 Operational Enhancements Operational Excellence Capacity Expansion • Four key areas of focus: Safety, Quality, Velocity and Productivity • Goals are to improve employee engagement, customer satisfaction, throughput, profitability and working capital within existing operations • Put in place a robust Sales, Inventory and Operations Planning (SIOP) process to match customer demand • Implement and deploy Lean Tools to create a continuous improvement culture (Strategy deployment, 6S Visual Management, Plan for Every Part (PFEP), Value Stream analysis and Performance Management) • Intense focus on strategic sourcing across the enterprise (value focus – cost, innovation, quality, working capital, risk) • Leverage operations excellence, work flow analysis, material flow and other tools to increase throughput across all locations • Capacity across the business is being analyzed, and appropriate investments will be made where needed • West Coast:  Diesel production is being set up on the West Coast in Junction City, OR at the former Country Coach plant  Plant setup is on plan, and first units are rolling out of the plant • Iowa:  New line added to Lake Mills for Class B vans; Charles City transitioned to new Class C assembly  With diesel production moving to the West Coast, more capacity has opened up in Forest City – capacity constraints that had previously restricted Class A Motorhome production have been alleviated  Dedicated capacity for Class B and Class C continues to expand • Indiana:  Capacity expansion plans underway for both Winnebago and Grand Design towable brands  Production already underway from Grand Design’s new Imagine travel trailer line
  • 23. Investor Presentation | June 2017 23 55 28 13 25 CY 2007 CY 2008 CY 2009 CY 2010 Equipped To Navigate a Downturn 298 209 153 217 CY 2007 CY 2008 CY 2009 CY 2010 Towable Wholesale Shipments in thousands Source: Recreational Vehicle Industry Association Motorized Wholesale Shipments in thousands Key differences Balanced portfolio of towables and motorhomes Improved operating leverage Product line rationalization Thoughtful vertical integration Flexible, efficient labor force Evolving and favorable demographic trends Expanded entry level product offering Source: Recreational Vehicle Industry Association
  • 24. Investor Presentation | June 2017 24 Digital Transformation Initiatives • CIO Jeff Kubacki is leading the process of Digital Transformation across the enterprise focused on:  Improved and Closer Customer Relationships  Data-Driven Operations Excellence  Business Intelligence • The intent is to create a more data-driven, fact-based business culture at Winnebago Industries, with optimized functionality across the system  Business Intelligence tools will help to give Winnebago managers the data they need in the right place and at the right time to make effective business decisions • One of the critical areas of focus is completion of ongoing ERP project
  • 25. Investor Presentation | June 2017 25 Free Cash Flow1,2 ($mm) Financial Highlights $803 $945 $977 $975 $1,568 2013 2014 2015 2016¹ LTM* $85 $104 $105 $113 $222 2013 2014 2015 2016 LTM* $46 $63 $60 $62 $138 2013 2014 2015 2016 LTM* Adjusted EBITDA ($mm) $6 $13 $29 $28 $99 2013 2014 2015 2016 LTM* *Pro Forma LTM as of 5/27/17; August fiscal year end 1In 2016 WGO exited the aluminum extrusion and bus manufacturing segment which generated $26mm of revenue in 2015 and $6mm in 2016 *Pro Forma LTM as of 5/27/17; August fiscal year end *Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for Non-GAAP Reconciliation *Pro Forma LTM as of 5/27/17; August fiscal year end; see Appendix for Non-GAAP Reconciliation 1 Defined as cash from operations less capital expenditures 2 Includes capex of $3.3mm and $7.8mm in FY15 and FY16, respectively, for new ERP system; FY16 includes purchase of Junction City, OR facility for approximately $10mm Margin 5.7% 6.7% 6.1% 6.4% Margin 10.5% 11.0% 10.7% 11.6% Consolidated Net Revenue ($mm) Gross Profit ($mm) 14.1% 8.8%
  • 26. Investor Presentation | June 2017 26 Recent 3Q FY2017 Performance $272 $476 Q3 2016 Q3 2017 Net Revenue 3Q FY 2017 ending May 27, 2017 Q3 revenues were up 75% year over year, reflecting continued success in the Towables market, including the acquisition of Grand Design Revenue growth was driven by the addition of $196.9 million in revenue from Grand Design and strong organic growth from Winnebago-branded Towable products Motorized deliveries fell 4.3% year over year while ASP increased 2.6% due to shifting product mix $30 $71 Q3 2016 Q3 2017 Margin 14.9%11.1% Gross Profit Performance Summary Growth - 75% Growth - 134% Gross profit increased 134% year over year and gross margin improved 380 bps in the quarter Gross profit increase driven by favorable inclusion of Grand Design products within overall sales mix Highest gross margin level in nearly a decade with further opportunity to expand
  • 27. Investor Presentation | June 2017 27 Strong & Flexible Balance Sheet • Paid down debt by $43 million in 3Q  Debt-to-equity ratio of 68.9%  Debt/EBITDA ratio of 1.79x, ahead of acquisition plan  Repaid asset-backed loan in 3Q • Reduced working capital by nearly $67 million YTD • Expected CapEx of $5-7 million for FY2017 • Approximately $149 million in liquidity  $24 million remaining cash on hand  $125 million capacity on credit facility
  • 28. Investor Presentation | June 2017 28 Capital Allocation Priorities • Invest in new products, capacity expansion, technology improvements, productivity and innovation • Maintain disciplined approach to pursuing M&A opportunities • Prioritize de-levering the business immediately following the acquisition of Grand Design • Goal is for leverage to be less than 1.5x Debt/EBITDA by FYE 2018 • Committed to delivering consistent and growing dividend payments  Quarterly cash dividends—$0.10/share • $2.6 million remaining under existing share repurchase authorization SIGNIFICANT FREE CASH FLOW1 ENABLES DELEVERAGING WHILE SUPPORTING FUTURE GROWTH INITIATIVES Invest in the Business Return Capital to Shareholders Pay Down Debt 1 Defined as cash from operations less capital expenditures, see Appendix for Non-GAAP Reconciliation
  • 29. Investor Presentation | June 2017 29 Investment Summary INDUSTRY LEADER COMPELLING GROWTH OPPORTUNITY FOR SALES AND PROFITABILITY CLEAR STRATEGIC PLAN STRONG FINANCIAL PROFILE
  • 30. Investor Presentation | June 2017 30 Appendix
  • 31. Investor Presentation | June 2017 31 Non-GAAP Reconciliation Invest in the Business Pay Down Debt The Company has provided non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the accompanying presentation that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the presentation. The non-GAAP financial measures in the accompanying presentation may differ from similar measures used by other companies. The following table reconciles revenue to pro forma revenue: The following table reconciles net income to adjusted EBITDA: (1) Represents Grand Design for the period from March 1, 2016 through November 7, 2016 (acquisition date of November 8, 2016) (2) EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit results from terminating the plan and the transaction costs related to our acquisition of Grand Design. We believe EBITDA and Adjusted EBITDA provide meaningful supplemental information about our operating performance because they exclude amounts that we do not consider part of our core operating results when assessing our performance. (In thousands) LTM as of 5/27/17 Motorized Revenue Winnebago Industries, Inc. $ 872,383 Grand Design Pro Forma (1) - Motorized Revenue 872,383 Towables Revenue Winnebago Industries, Inc. 483,053 Grand Design Pro Forma (1) 213,061 Towables Revenue 696,114 Consolidated Revenue $ 1,568,497 (In thousands) 2013 2014 2015 2016 LTM as of 5/27/17 Net income $ 31,953 $ 45,053 $ 41,210 $ 45,496 $ 59,553 Interest expense - - 10 - 11,571 Provision for income taxes 13,141 19,624 18,324 20,702 29,797 Depreciation 4,764 3,997 4,513 5,745 6,789 Amortization of intangibles - - - - 22,577 EBITDA 49,858 68,674 64,057 71,943 130,287 Postretirement health (3,567) (4,573) (4,073) (6,124) (26,389) Legal settlement - - - (3,400) (650) Transaction costs - - - 355 6,730 Non-operating income (696) (768) (115) (457) (400) Winnebago Industries, Inc. Adjusted EBITDA (2) 45,595 63,333 59,869 62,317 109,578 Grand Design Pro Forma Adjusted EBITDA (1) (2) - - - - 28,046 Adjusted EBITDA (2) $ 45,595 $ 63,333 $ 59,869 $ 62,317 $ 137,624
  • 32. Investor Presentation | June 2017 32 Non-GAAP Reconciliation (continued) Invest in the Business Pay Down Debt The Company has provided non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the accompanying presentation that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the presentation. The non-GAAP financial measures in the accompanying presentation may differ from similar measures used by other companies. The following table reconciles cash flow from operations to free cash flow: (1) Represents Grand Design for the period from March 1, 2016 through November 7, 2016 (acquisition date of November 8, 2016) (2) We believe Free Cash Flow is a meaningful measure because it incorporates the capital expenditures that contribute to generating cash from operations (In thousands) 2013 2014 2015 2016 LTM as of 5/27/17 Cash from operations $ 10,238 $ 23,236 $ 45,183 $ 52,746 $ 88,355 Capital expenditures (4,422) (10,476) (16,573) (24,551) (14,363) Winnebago Industries, Inc. Free Cash Flow (2) 5,816 12,760 28,610 28,195 73,992 Grand Design Pro Forma Free Cash Flow (1) (2) - - - - 24,902 Free Cash Flow $ 5,816 $ 12,760 $ 28,610 $ 28,195 $ 98,894