Financial Report Fiscal Second Quarter 2019 Ended April 30, 2019 N - PowerPoint PPT Presentation

RE V G RO U P, INC . Financial Report Fiscal Second Quarter 2019 Ended April 30, 2019 N Y S E : R E V G June 6, 2019

Cautionary Statement & Non-GAAP Measures Disclaimers Note Regarding Non-GAAP Measures REV Group reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, m anagement believes that the evaluation of REV Group’s ongoing operating results may be enhanced by a presentation of Adjusted EBITDA an d Adjusted Net Income, which are non-GAAP financial measures. Adjusted EBITDA represents net income before interest expense, income taxes, depreciation and amortization as adjusted for certain non-recurring, one-time and other adjustments which REV Group believes are not indicative of its underlying operating performance. Adjusted Net Income represents net income, as adjusted for certain items that we believe are not indicative of our ongoing operating performance. REV Group believes that the use of Adjusted EBITDA and Adjusted Net Income provides additional meaningful methods of evaluating certain aspects of its operating performance from period to period on a basis that may not be otherwise apparent under GAAP when used in addition to, and not in lieu of, GAAP measures. See the Appendix to this presentation (and our other filings with the SEC) for reconciliations of Adjusted EBITDA and Adjusted Net Income to the most closely comparable financial measures calculated in accordance with GAAP. Cautionary Statement About Forward-Looking Statements This presentation contains statements that REV Group believes to be “forward - looking statements” within the meaning of the Priva te Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “strives,” “goal,” “seeks,” “projects,” “intends,” “forecasts,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. They appear in a number of places th roughout this presentation and include statements regarding REV Group’s intentions, beliefs, goals or current expectations concerning, amon g other things, its results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate, inc luding REV Group’s outlook for the full-year fiscal 2019. REV Group’s forward -looking statements are subject to risks and uncertainties, including those highlighted under “Risk Factors” and “Cautionary Note Regarding on Forward - Looking Statements” in REV Group’s public filings with the SEC an d the other risk factors described from time to time in subsequent quarterly or annual reports on Forms 10-Q or 10-K, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which only speak as of the date of this presentation. REV Group does not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, expect as required by applicable law. 2

Second Quarter Fiscal 2019: Summary Organic Sales Growth Cash Flow Focus Top-line growth and stronger Net cash used in operating sales mix in Commercial and activities was $39.2 million, Recreation segments down over 10% year-over-year Backlog Growth F&E Production Ramp Continued strong end-market F&E production ramp up demand in F&E & Commercial caused inefficiencies leading segments witnessed by solid to lower sales growth in backlog Supply Chain Stabilized RV Market Conditions Recreation backlog down Supply chain has stabilized primarily due to softer Class A with lead time improvement RV market 3

Second Quarter Fiscal 2019: Supplier Lead Time Supplier lead time (weeks) 35 30 25 20 Pumps 15 10 Driver Seats Cylinders 5 Tanks -resourced Sheet Metal, Filters Bus Seats 0 Sep-17 Dec-17 Apr-18 Jul-18 Oct-18 Feb-19 May-19 Aug-19 4

Second Quarter Fiscal 2019: Other Highlights Positive Backlog Trends Order growth ($millions) • Total backlog of $1.4 billion up 9.5% year-over-year $1,391 $1,392 $1,500 $1,271 Guidance $169 $225 $1,250 $240 • Adjusting 2019 expectations for GAAP net income $1,000 $436 $428 • $397 Reiterating 2019 expectations for net sales, Adjusted $750 Net Income, Adjusted EBITDA, and net cash provided $500 by operating activities $787 $738 $634 $250 Shareholder Return $0 • Repurchased 495,475 shares during the second quarter Q2'18 Q1'19 Q2'19 for total consideration of $5.3 million F&E Commercial Recreation 5

Second Quarter Fiscal 2019: FDNY Award • Awarded new 5-year contract with the F&E Backlog Trends Fire Department of New York to provide ($millions) approximately 400 ambulance units $1,000 FDNY – Awarded post Q2’19 end, additive to $800 backlog $600 • Approximate total contract value of $160 $400 $787 $738 million $634 $200 • Anticipate shipping units mid fiscal 2020 $0 Q2'18 Q1'19 Q2'19 6

Second Quarter Fiscal 2019: Segment Highlights F&E Revenue Commercial Revenue Recreation Revenue ($millions) ($millions) ($millions) $300 $300 $300 $250 $250 $250 $200 $200 $200 $150 $150 $150 $100 $100 $100 $50 $50 $50 $0 $0 $0 • • Supply chain issues • Performance of Class B, LA County contract began concluded in latter half of Super C, and towable to ship as planned second quarter brands more than offset • Benefited from NYC Transit weak Class A RV demand • Ramp up in fire truck Authority contract • production led to Strategic actions also led to • Mix shift toward school and inefficiencies fewer Class A unit sales transit bus drove strong • • We believe F&E is well RV market and dealer top-line growth positioned for improved network adjusting from second half performance peak levels 7 ¹ For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation.

Second Quarter Fiscal 2019: Consolidated 2Q’19 Results Net Sales Adjusted EBITDA $700 $40 $36.1 14% $ 608.9 $ 615.0 $34.0 $600 12% $30 $500 10% ($millions) ($millions) $400 8% $20 $300 6% 5.9 % 5.6 % $200 4% $10 $100 2% $0 $0 0% Q2 Q2 Q2 Q2 FY2018 FY2019 FY2018 FY2019 • Net sales of $615.0 million, increased 1.0% year-over-year Adjusted EBITDA 1 of $36.1 million, up 6.2% compared to prior year quarter • • Adjusted EBITDA margin of 5.9%, up versus 5.6% last year 8 ¹ For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation.

Second Quarter Fiscal 2019: Segment Highlights 1 F&E Adj. EBITDA Commercial Adj. EBITDA Recreation Adj. EBITDA ($millions) ($millions) ($millions) $30 $30 $30 10% 10% 10% $25 $25 $25 8% 8% 8% $20 $20 $20 6% 6% 6% $15 $15 $15 4% 4% 4% $10 $10 $10 2% 2% 2% $5 $5 $5 $0 0% $0 0% $0 0% • • • Adjusted EBITDA down to $15.1 Adjusted EBITDA up 54.7% Adjusted EBITDA grew 36.2% million due to inefficiencies year-over-year, to $14.7 million year-over-year, to $17.3 million from ramp up in fire capacity, • Improved mix of higher margin - Higher volumes of more delayed shipments of fire buses and terminal trucks profitable Class B and Super trucks and residual impact of C product • Adjusted EBITDA margin was material and supply chain 8.6% versus 6.0% last year - Improved profitability for issues at one ambulance facility Class A models • Adjusted EBITDA margin was • Adjusted EBITDA margin was 6.1% versus 8.7% last year 8.7% versus 6.4% last year 9 ¹ For a reconciliation of net income (loss) to Adjusted Net Income and Adjusted EBITDA, see the Appendix to this presentation.

Capital Allocation Summary $70.0 $60.7 $60.0 $50.0 $40.0 ($millions) $30.0 $19.7 $19.0 $20.0 $11.6 $9.4 $10.0 $0.0 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 CAPEX Dividend *M&A Share Repurchase • Capital expenditures of $3.1 million for Q2 2019 • Repurchased 495,475 shares ($5.3 million) under the Company’s share repurchase authorization 10 *M&A total includes JV activity

Full Year Fiscal 2019 Outlook Reaffirmed Fiscal 2019 Guidance Reaffirming prior Net Sales: $2.4 to $2.6 billion guidance, except adjustment to GAAP Adjusted EBITDA: $150 to $170 million Net Income Net Cash provided by Top-line growth of ~5% $110 to $130 million operating activities: Adjusted Net Income: $66 to $84 million Long-term target continues to be >10% EBITDA margins Net Income : $31 to $51 million Capital expenditures of $25 to $30 million, interest expense of $30 to $32 million, effective tax rate of 25 percent to 27 percent 11