FISCAL YEAR & FOURTH QUARTER FISCAL 2022 FINANCIAL RESULTS

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FORWARD-LOOKING STATEMENTS

This presentation includes certain statements that are "forward-looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made based on management's current expectations and beliefs regarding future and anticipated developments and their effects upon THOR, and inherently involve uncertainties and risks. These forward-looking statements are not a guarantee of future performance. We cannot assure you that actual results will not differ materially from our expectations. Factors which could cause materially different results include, among others: the impact of inflation on the cost of

our products as well as on general consumer demand; the effect of raw material and commodity price fluctuations, and/or raw material, commodity or chassis

supply constraints; the impact of war, military conflict, terrorism and/or cyber-attacks, including state-sponsored or ransom attacks; the impact of sudden or significant adverse changes in the cost and/or availability of energy or fuel, including those caused by geopolitical events, on our costs of operation, on raw material prices, on our independent dealers or on retail customers; the dependence on a small group of suppliers for certain components used in production, including chassis; interest rate fluctuations and their potential impact on the general economy and, specifically, on our profitability and on our independent dealers and consumers; the extent and impact from the continuation of the COVID-19pandemic, along with the responses to contain the spread of the virus, or its variants, by various governmental entities or other actors, which may have negative effects on retail customer demand, our independent dealers, our supply chain, our labor force, our production or other aspects of our business; the ability to ramp production up or down quickly in response to rapid changes in demand while also managing costs and market share; the level and magnitude of warranty and recall claims incurred; the ability of our suppliers to financially support any defects in their products; legislative, regulatory and tax law and/or policy developments including their potential impact on our independent dealers, retail customers or on our suppliers; the costs of compliance with governmental regulation; the impact of an adverse outcome or conclusion related to current or future litigation or regulatory investigations; public perception of and the costs related to environmental, social and governance matters; legal and compliance issues including those that may arise in conjunction with recently completed transactions; lower consumer confidence and the level of discretionary consumer spending; the impact of exchange rate fluctuations; restrictive lending practices which could negatively impact our independent dealers and/or retail consumers; management changes; the success of new and existing products and services; the ability to maintain strong brands and develop innovative products that meet consumer demands; the ability to efficiently utilize existing production facilities; changes in consumer preferences; the risks associated with acquisitions, including: the pace and successful closing of an acquisition, the integration and financial impact thereof, the level of achievement of anticipated operating synergies from acquisitions, the potential for unknown or understated liabilities related to acquisitions, the potential loss of existing customers of acquisitions and our ability to retain key management personnel of acquired companies; a shortage of necessary personnel for production and increasing labor costs and related employee benefits to attract and retain production personnel in times of high demand; the loss or reduction of sales to key independent dealers; disruption of the delivery of units to independent dealers; increasing costs for freight and transportation; the ability to protect our information technology systems from data breaches, cyber- attacks and/or network disruptions; asset impairment charges; competition; the impact of losses under repurchase agreements; the impact of the strength of the U.S. dollar on international demand for products priced in U.S. dollars; general economic, market and political conditions in the various countries in which our products are produced and/or sold; the impact of changing emissions and other related climate change regulations in the various jurisdictions in which our products are produced, used and/or sold; changes to our investment and capital allocation strategies or other facets of our strategic plan; and changes in market liquidity conditions, credit ratings and other factors that may impact our access to future funding and the cost of debt.

These and other risks and uncertainties are discussed more fully in Item 1A of our Annual Report on Form 10-K for the year ended July 31, 2022.

We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this presentation or to reflect any change in our expectations after the date hereof or any change in events, conditions or circumstances on which any statement is based, except as required by law.

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RECORD 2022 OPERATING AND FINANCIAL PERFORMANCE

CONSOLIDATED

NET SALES

$16.31 BILLION

GROSS PROFIT

MARGIN

17.2%

DILUTED EPS $20.59

NET CASH FROM

OPERATIONS

$990.3 MILLION

FISCAL YEAR 2022 HIGHLIGHTS

Delivered record financial results, achieving highest net sales, gross margin, net income and net cash from operations in THOR's history

Exhibited resiliency of THOR's business model and effectiveness of our management teams as we outperformed throughout fiscal year 2022 in spite of significantly different market conditions from quarter to quarter

Demonstrated solid operational execution as we managed through supply chain challenges and worked to replenish North American towable dealer inventory levels

Became the market share leader in the North American Class B motorhome category, thus becoming the market share leader in every North American RV product category in which THOR participates

Acquired Airxcel, a leading supplier of OEM and aftermarket RV parts and accessories

Returned $260 million of capital to shareholders via dividends and share repurchases

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FISCAL YEAR 2022 RECAP

Net Sales

$16.31 BILLION (1) (2)

+32.4% (3)

European

$2.89 bn

Other

NA Motorized

(9.8)%

$0.78 bn

$3.98 bn

+246.7%

+49.1%

NA Towables

$8.66 bn

+39.2%

Gross Margin

Diluted EPS

Net Cash from Operations

17.2%

$20.59

$990.3 MILLION

+180 bps (3)

+73.8% (3)

FISCAL 2022 RESULTS

Delivered strongest net sales and profitability performance

in THOR's history

  • Record wholesale shipments of 328,557 units to meet strong consumer demand and restock channel inventory levels
  • Maximized profitability by successfully navigating through supply chain constraints and managing inventory levels
  • Strengthened our market leading product portfolio with the introduction of additional Class B motorhome products
  • Diversified and grew THOR's revenue streams with acquisition of Airxcel

FISCAL 2022 CAPITAL DEPLOYMENT

Balanced, flexible and opportunistic approach to drive

long-term shareholder value

  • Capex spending of $242.4 million
  • Regular quarterly dividends of $94.9 million
  • Strengthened balance sheet through term loan principal payments of $332.9 million
  • Completed $745.3 million acquisition of Airxcel
  • Repurchased 1.9 million shares for $165.1 million
  1. Includes $501.1 million of net sales from Airxcel

(2)The addition of the Tiffin Group, acquired on December 18, 2020, accounted for $505.5 million or 4.1% of the 32.4% increase

  1. As compared to fiscal year 2021

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FOURTH QUARTER OF FISCAL YEAR 2022

Net Sales

$3.82 billion (1)

+6.4% (2)

Gross Margin

17.5%

+90 bps (2)

Diluted EPS

$5.15

+25.0% (2)

NORTH AMERICAN INDEPENDENT DEALER

138,500

INVENTORY OF THOR PRODUCTS

127,000

103,400

63,900

58,300

7/31/21(3)

7/31/22(3)

7/31/18

7/31/19

7/31/20

NA Motorized

Inventory Units

$1.02 bn

(3) Includes units of Tiffin products subsequent to the December 2020 acquisition of the Tiffin Group

26.8%

RV BACKLOG OF

NA Towables

$8.76 BILLION

(48.0)%

$1.80 bn

47.0%

European

$3,559.1

$0.81 bn

21.1%

$4,014.7

$2,753.6

$1,526.0

$9,284.2

$3,436.6

Other

$1,451.6

$0.19 bn

$634.1

$852.7

$2,763.7

$2,571.0

5.1%

$458.8

$767.0

$693.2

07/31/18

07/31/19

07/31/20

(4)

(4)

07/31/21

07/31/22

NA Towables NA Motorized European

(4) Includes Tiffin backlog subsequent to the December 2020 acquisition of the Tiffin Group

  1. Includes $129.6 million of net sales from Airxcel
  2. As compared to the fourth quarter of fiscal year 2021

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Thor Industries Inc. published this content on 28 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2022 10:45:02 UTC.