Investor Presentation November 28, 2016 www.thorindustries.com - PowerPoint PPT Presentation

Investor Presentation November 28, 2016 www.thorindustries.com

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 Industries, Inc., 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 from our expectations. Factors which could cause materially different results include, among others, raw material and commodity price fluctuations, material or chassis supply restrictions, legislative and regulatory developments, the impact of rising interest rates on our operating results, the costs of compliance with increased governmental regulation, legal and compliance issues including those that may arise in conjunction with recent transactions, the potential impact of increased tax burdens on our dealers and retail consumers, lower consumer confidence and the level of discretionary consumer spending, interest rate fluctuations and the potential economic impact of rising interest rates, restrictive lending practices, management changes, the success of new product introductions, the pace of obtaining and producing at new production facilities, the pace of acquisitions, the potential loss of existing customers of acquisitions, the integration of new acquisitions, our ability to retain key management personnel of acquired companies, the loss or reduction of sales to key dealers, the availability of delivery personnel, asset impairment charges, cost structure changes, competition, the impact of potential losses under repurchase agreements, the potential impact of the strengthening U.S. dollar on international demand, general economic, market and political conditions and the other risks and uncertainties discussed more fully in ITEM 1A of our Annual Report on Form 10-K for the year ended July 31, 2016 and Part II, Item 1A of our quarterly report on Form 10-Q for the period ending October 31, 2016. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this presentation or to reflect any change in our expectations after the date of this presentation or any change in events, conditions or circumstances on which any statement is based, except as required by law. 2

TABLE OF CONTENTS First Quarter 2017 Update – Page 4 Thor Basics: An Introduction to the Company – Page 16 Appendix 1: Investor Q&A – Page 31 Appendix 2: Financial and Market Data – Page 52 3

First Quarter 2017 Update 4

FIRST QUARTER KEY MESSAGES Jayco integration has been smooth with significant contributions to consolidated financial results We see no signs of a slowdown in the industry and expect continued favorable growth over the coming year We are judiciously expanding capacity to meet strong demand We continue to execute on a strategic plan which focuses on strong performance and long-term results 5

A RECORD START TO THE YEAR Record revenues and earnings for the first quarter of fiscal 2017 Revenues grew 65.8% to $1.71 billion from $1.03 billion in the first quarter of fiscal 2016  Towable revenues grew 62.6% to $1.21 billion  Motorized revenues grew 83.8% to $461.5 million  Jayco added $467.1 million to revenues in the quarter Markets remain strong with backlogs doubling to $2.11 billion Gross profit up 55.5% to $236.8 million from $152.2 million, although gross margins were modestly impacted by Jayco Net income grew 55.9% to $78.7 million, or $1.49 per diluted share from $50.5 million, or $0.96 per diluted share a year ago Consumers and dealers remain positive, supporting the outlook for continued growth in fiscal 2017 6

A RECORD START TO THE YEAR Bob Martin – Thor President & CEO: “Fiscal 2017 began like fiscal 2016 ended, with continued robust performance throughout the Company. The strong revenue and earnings growth reflects the ongoing enthusiastic reception of our product offerings by dealers and consumers alike, as well as our ability to effectively manage our growth and integrate acquisitions successfully. Starting with our Dealer Open House in September, our new products have been incredibly well received, with strong year-over- year sales and backlog growth. With continued dealer optimism and steady economic conditions, we believe 2017 will be one of the strongest years for wholesale shipments for the industry since the 1970s. The Jayco integration has gone very smoothly, as illustrated by their meaningful contribution to our revenues and gross profit. We also made good progress on expanding capacity in a disciplined way to meet the strong demand for our products. New facilities or production lines at Dutchmen, Heartland, Highland Ridge, Jayco and Thor Motor Coach ramped up during the first quarter and we are evaluating additional projects to increase capacity where necessary. The need to meet such strong demand is a true testament to our entire team and the great network of dealers, who are important partners in our success.” 7

FIRST QUARTER 2017 KEY STATS – INCOME STATEMENT Net Income Net Sales (Continuing Ops., $ millions) (Continuing Ops., $ millions) $4,582 $258.0 $4,007 $3,525 $202.0 $3,242 $175.5 $2,640 $151.7 $111.4 $1,709 $78.7 $1,030 $50.7 FY12 FY13 FY14 FY15 FY16 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY16 FY17 YTD YTD YTD YTD Gross Margin Diluted EPS (Continuing Ops.) (Continuing Ops.) 15.9% $4.91 14.8% $3.79 13.9% $3.29 13.9% $2.86 13.3% 13.1% $2.07 12.1% $1.49 $0.97 FY12 FY13 FY14 FY15 FY16 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY16 FY17 YTD YTD YTD YTD YTD – First Quarter ended October 31. 8

FIRST QUARTER 2017 KEY STATS – BALANCE SHEET Cash & Investments Working Capital Operating Cash Flow ($ Millions) ($ Millions) ($ Millions) $469.0 $473.3 $431.5 $341.2 $289.3 $404.9 $397.5 $373.8 $365.2 $237.3 $247.9 $220.0 $209.9 $183.5 $179.3 $161.7 $145.1 $149.3 $118.8 $18.9 $1.3 FY12 FY13 FY14 FY15 FY16 1Q16 1Q17 FY12 FY13 FY14 FY15 FY16 1Q16 1Q17 FY12 FY13 FY14 FY15 FY16 1Q16 1Q17 9

FIRST QUARTER REFLECTS CONTINUED RECORD PERFORMANCE Three Months Ended October 31, 2016 2015 % Chg. Net Sales $ 1,708.5 $ 1,030.4 65.8% Gross Profit 236.8 152.2 55.5% % of Sales 13.9% 14.8% SG&A 102.3 68.5 49.5% % of Sales 6.0% 6.6% Income Before Tax (cont. ops.) $ 115.8 $ 77.7 49.1% % of Sales 6.8% 7.5% Income Taxes 37.1 27.0 Net Income $ 78.7 $ 50.5 55.9% $ 1.49 $ 0.96 55.2% Diluted EPS 10 Amounts in millions, except per share data

FIRST QUARTER 2017 RESULTS FROM CONTINUING OPERATIONS UP DOUBLE DIGITS Net Income Net Sales RV Backlog Diluted EPS ($ Millions) ($ millions) ($ millions) $1.49 $1,708.5 $78.7 $2,106.8 $0.96 $1,030.4 $50.5 +55% +66% +56% $1,051.0 +100% FY16 FY17 FY16 FY17 FY15 FY16 FY16 FY17 Peter B. Orthwein, Thor Executive Chairman : “With what I believe is the best team in the business, we have continued to execute our strategic plan and deliver solid growth while maintaining extremely prudent capital allocation objectives. We will continue to focus on both our short and long-term initiatives to provide Thor the ability to grow in fiscal 2017 and beyond. With a stable or improved economy, including job and income growth, we are optimistic that demand from consumers and dealers will drive another year of impressive growth for the RV industry. Our challenge, as it has been over the past several years, will be to develop new products and produce them in the volumes necessary to meet demand and with the quality our customers expect, while generating solid returns for our shareholders. We are confident that our team, operating approach and financial discipline position us well to achieve this.” 11

FIRST QUARTER 2017 – SEGMENTS ALL SHOW STRONG RESULTS Income from Continuing Operations before Income Taxes: 1Q17 1Q16 Recreational Vehicles Towables $ 94,173 $ 63,224 Motorized 28,923 21,653 Total Recreational Vehicles 123,096 84,877 Other, net* 6,378 2,656 Corporate (13,674) (9,842) Total $ 115,800 $ 77,691 * Other represents the operations of the Company's Postle subsidiary. Postle manufactures and sells aluminum extrusions and specialized component products to RV and other manufacturers. The growth in income from continuing operations before income taxes was generated from each of the Company's operating segments. 12