thor investor presentation 6.6.16

www.thorindustries.com

INVESTOR PRESENTATION JUNE 6, 2016

2

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. There can be no assurance 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 costs of compliance with increased governmental regulation,

legal issues, 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, 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, 2015 and Part II, Item 1A of our quarterly report on

Form 10-Q for the period ending April 30, 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.

3

THOR AT A GLANCE

Founded in 1980 by Wade Thompson & Peter Orthwein with

the acquisition of Airstream, Inc.

One of the world’s largest manufacturers of recreational

vehicles representing a broad range of major brands

Two major business segments include:

• Towable RVs such as travel trailers, fifth wheels and specialty trailers

• Motorized RVs which include Class A, B and C motorhomes

Operations in 148 facilities* located in Indiana, Michigan,

Ohio and Oregon

Products sold through independent retail distributors

primarily in the U.S. and Canada

Historically strong cash flow and solid balance sheet

Approximately 10,450 employees*

Listed on the NYSE under ticker THO

$1,849

$2,340 $2,640

$3,242 $3,525

$4,007

FY10 FY11 FY12 FY13 FY14 FY15

Net Sales

(continuing operations, $ millions)

$1.72 $1.66 $2.07

$2.86 $3.29

$3.79


Diluted EPS

(continuing operations)

*as of July 31, 2015

4

THOR’S RV PRODUCT RANGE

Travel Trailers

(hitch to the bumper of the

tow vehicle)

Fifth Wheels

(hitch to a specially mounted

hitch in the bed of a pickup

truck)

Specialty Trailers

(includes camping trailers,

truck campers and horse

trailers with living quarters)

Towable RV's

$3,096.4 77%

Motorized RV's

$870.8 22%

Other$39.6 1%

FY2015 Sales*

Towable RV Segment Products

Class A Motorhomes

(fully enclosed, bus style

motorhome)

Class B and C Motorhomes

(B – van motorhomes, C –

living area built on van or

pickup chassis)

Motorized RV Segment Products

*Fiscal Year ended July 31,

2015, in millions

5

CONSISTENT GROWTH IN

EARNINGS

$1.72 $1.66

$2.07

$2.86

$3.29

$3.79

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00


Diluted EPS, Continuing Ops.

$91.2 $91.6

$111.4

$151.7

$175.5

$202.0

$0

$50

$100

$150

$200

$250


Net Income, Continuing Ops., $ Millions

6

REGULAR QUARTERLY

DIVIDENDSFiscal years ended July 31,

$0.10

$0.15

$0.18

$0.23

$0.27

$0.30


*In addition to regular quarterly dividends, Thor paid special dividends of $1.50 in FY13 and $1.00 in

FY14. The declaration of future dividends and the establishment of the per share amounts, record

dates and payment dates for any such future dividends are subject to the determination of the Board,

and will be dependent upon future earnings, cash flows and other factors.

7

THOR OPERATING ENTITIES –

STRONG BRANDS

8

STRATEGIC VISION FOR

GROWTHAt Thor we strive to provide RV consumers with superior products and

services through innovative solutions which enhance the enjoyment of the RV

lifestyle

Our decentralized operating structure and independent operating subsidiaries

foster an entrepreneurial spirit and an unending focus on the needs of the

users of our products – resulting in our drive to lead the industry with

innovation, product quality and customer service

Our focus requires that we make decisions based on the long-term success of

our Company:

• While we strive to lead the industry in market share, we will not strive for market share at

the expense of quality or without regard to bottom-line impact

• Growth is important, but this is a business of relationships, and we realize that the key to

long-term sustainable sales growth rests in the strength of our relationships with

consumers, dealers and suppliers

• Our relationship with shareholders is important ― profits are a key driver to our long-term

success

• The path to long-term success is seldom straight, so our leaders manage in a way that

moves us closer to our goals, even though it might impact our results in the short term

9

THOR COMPETITIVE ADVANTAGES

Primary focus on assembly:• Vertical integration – only where it makes sense• Flexibility – performance in any market condition• Low overhead costs• High return on assets employed

Strong market share in the primary RV categories – Travel Trailers, Fifth Wheels and

Motorized (#1 in motorized, #2 in towables)*• Provides scale and purchasing power• Low cost, high volume producer – generates improved margin

Solid balance sheet

Meaningful increases in production capacity during FY14 and FY15

Diversified lineup of innovative product offerings

Strong relationships with wholesale financing providers

Excellent relationships with dealers, lenders and consumers based on financial strength

to provide warranty and honor repurchase agreements

*Source: Statistical Surveys, Inc., U.S. and Canada, year-to-date through March, 2016.

10

INVESTING IN THE FUTURE -

CAPACITY

$12,767

$33,698

$10,442

$24,190

$30,438

$43,055

$0

$10,000

$20,000

$30,000

$40,000

$50,000


Th

ou

sa

nd

s

Capital Acquisitions

$19,756

$99,562

$170 $10,718

$86,092

$194,486

$0

$50,000

$100,000

$150,000

$200,000

$250,000


Th

ou

sa

nd

s

Business Acquisitions

11

CORPORATE INTEGRITY

No golden parachutes

No ‘pro forma’ earnings. We report net income,

not adjusted earnings to cover up performance

Consistent focus on shareholder value

Simple compensation philosophy:

• Mainly cash compensation based on pre-tax income – a true pay-

for-performance philosophy

• Restricted stock units also awarded based on performance to

provide broader, long-term focus on overall Company results

12

RV INDUSTRY CONDITIONS

REMAIN POSITIVE

Although consumer confidence has remained range bound since the beginning of 2016, it

remains at the highest levels since the recession. Final results rose to 94.7 in May from

89.0 in April. This compares with 90.7 a year ago.*

Consumers are more optimistic about their financial prospects and anticipate somewhat

lower inflation rates in the future. The main areas of uncertainty for consumers surround

whether the Federal Reserve will increase interest rates over the next few months and the

potential impact of the Presidential election on the overall economy.*

Recreation Vehicle Industry Association (RVIA) forecast in May 2016 that calendar 2016

wholesale shipments for all RV categories should increase to 396,400 units, or an increase

of 5.9% over calendar year 2015.**

Pricing and promotional environment remains competitive, but generally improved over

prior year.

Domestic travel offers fewer risks than international travel at a more compelling value.

Low fuel prices make RV travel increasingly attractive for consumers.

*Source: University of Michigan final Consumer Sentiment Index for May 2016

**Source: RVIA Roadsigns Summer 2016

13

CONSUMER TRENDS:

GROWING RV POPULARITY

Leisure travel such as camping continues to be popular*

Approximately 29.7 million households in North America camp at least once a year, but only

22% of them are RV campers.

The remaining campers primarily use tents or cabins, which makes them a solid target market

for the RV industry.

Favorable demographics*

Baby boomers (a prime RV target market for many years) represent 24% of the population

and are a target market as they reach retirement age and have more time for travel.

Generation X and Millennials offer future opportunities as they seek more active outdoor

experiences with their families.

Increasingly diverse potential customer base – Hispanic, African American, Asian and other

ethnicities grew from 13% in 2012 to 23% in 2015.

Younger campers (25-34 age) are also a growing market – from 18% in 2012 to 23% in 2015.

New applications – broader usage

Growth in use at extreme sporting events, youth sports leagues and tournaments, dog and

craft shows, and collegiate sports activities for alumni and fans.

*Source: Kampgrounds of America (KOA) 2015 North American Camping Report

14

CONSUMER TRENDS:

GROWING RV POPULARITY

Opportunities with Millennials*

Millennials (defined as age 19-35) are camping more, with 58% surveyed indicating they

plan to camp more nights in 2016.

This dempgraphic is camping in groups, as they view camping as an opportunity to spend

time with family and friends.

Younger campers also view camping as a way to reduce stress, escape the pressures of

everyday life, be more active and lead a healthier lifestyle.

Increasing Diversity Among Campers*

Although Hispanic, African American, Asian and other ethnicities accounted for 23% of

campers in 2015, they represented 40% of new campers in 2015 – showing their strong,

long-term growth potential.

These increasingly diverse campers view camping as an affordable vacation option that

allows them to be more active, reduce stress and spend more time with family and friends.

Hispanic campers have grown from 6% to 8% of campers over the past year. Based on

survey responses, they also seem much more likely to continue camping, as they were the

group most likely to say they plan to spend more nights camping in 2016.

*Source: Kampgrounds of America (KOA) 2015 North American Camping Report

15

POSTLE ALUMINUM ACQUISITION ENSURES

SUPPLY OF KEY MATERIAL COMPONENT

On May 1, 2015 Thor acquired Postle Aluminum, based in

Elkhart, Indiana, for approximately $144 million in cash, net

of cash acquired.

Postle generated sales of approximately $220 million in

calendar 2014 and we expect the acquisition to be accretive

to earnings.

Approximately 30% of total sales are to Thor subsidiaries and

approximately 75% of total sales were to the RV industry.

The remaining sales are to the specialty truck and trailer,

cargo, marine and fencing industries.

Postle produces a variety of aluminum extrusions,

specialized components and powder coating and painting

services.

The current management team will continue to lead the

company as a separate Thor subsidiary.

16

THIRD QUARTER REFLECTS

RECORD PERFORMANCE

Three Months Ended April 30,

2016 2015 % Chg.

Net Sales $1,284.1 $1,174.3 9.4%

Gross Profit 201.9 166.6 21.2%

% of Sales 15.7% 14.2%

SG&A 80.8 68.9 17.3%

% of Sales 6.3% 5.9%

Income Before Tax (cont. ops.) $116.3 $94.6 23.0%

% of Sales 9.1% 8.1%

Income Taxes 37.1 31.0

Net Income (cont. ops.) $79.2 $63.6 24.6%

Diluted EPS (cont. ops.) $1.51 $1.19 26.9%

Amounts in millions, except per share data

17

THIRD QUARTER 2016 RESULTS FROM CONTINUING

OPERATIONS UP DOUBLE DIGITS

Bob Martin – Thor President & CEO:“We continued to see the benefits of executing our strategic operating plan in the third quarter, resulting in record sales and bottom-line results. As our

core markets continued to grow, we were able to generate improved margins and profitability based on growth in revenues, improved product mix and

lower material costs. This spring we have visited dealers and attended dealer meetings where we have heard consistent feedback that our dealer

partners are seeing an influx of younger consumers entering our markets, which gives us optimism for the long-term growth of our business and

industry. As we see growth of younger and more ethnically diverse consumers, we continue to invest in new product features and floorplans to meet

their needs. Thor leads in innovation with new technology features that make RVs easier to use and better connected, positioning us to expand our

markets over the long term.”

Peter Orthwein – Thor Executive Chairman: “Since our founding, Thor has pursued strategic growth through acquisitions in markets with the greatest opportunities, followed by investments to

support their growth and long-term success. The record results we posted this quarter illustrate the power of our business model, particularly when

the market is performing as well as it is currently. As we continue to build on our history, we have every reason to be optimistic about the future of

Thor and our industry, particularly as we attract younger families into the RV lifestyle to drive future growth in sales, net income and total returns to our

shareholders.”

$1,174.3 $1,284.1

FY15 FY16

Net Sales ($ millions)

+9%

$63.6

$79.2

FY15 FY16

Net Income (Continuing Ops.)

+25%

$1.19

$1.51

FY15 FY16

Diluted EPS (Continuing Ops.)

+27%

$726.8

$1,056.8

FY15 FY16

RV Backlog ($ millions)

+45%

Note: Third quarter 2016 Results include Postle acquired May 1, 2015.

18

KEY TAKEAWAYS

Profitable every year since our founding in 1980 – 35 years of

profitability

We are primarily assemblers, not manufacturers

Variable cost structure provides flexibility in cyclical industry

Known as innovators in the industry

Strong market share in all main RV product categories

Solid balance sheet – history of returning cash to shareholders

Strong consumer, dealer and lender relationships

Experienced team


Appendix: Financial and Market Data

20

INVESTOR Q&A: THIRD QUARTER AND YEAR-

TO-DATE OPERATING RESULTS

Sales growth for the third quarter of 9.4% decelerated from the first half of the year of 13.0%, what

was different in the first half?

• The growth rate in third quarter revenues was driven by the continued growth in the overall RV

market as well as the solid market acceptance of our numerous new products and features

introduced at Open House last fall. The growth in the Open House over the past several years has

resulted in a shift in revenues earlier in the fiscal year as dealers tend to place more of their orders in

September rather than at Louisville in early December, resulting in deliveries and related revenues

occurring earlier in the fiscal year. In addition, some of the growth in the first half of fiscal 2016 was

due to acquisitions that were not included in prior year figures.

• Compared with the growth in industry wholesale shipments, we have been significantly

outperforming in the motorized segment (36% growth vs. 17% industry growth), and slightly

underperforming in the towable segment (7% growth vs. 10% industry growth). Our performance in

the towable market is driven, in part, by our outsized presence in the fifth wheel segment of the

towables market, which has been much softer than the travel trailer segment of the towables market

so far this calendar year. In travel trailers, we have been nimble in shifting production and growing

our production capacity toward the market trends of lower-cost travel trailers that have been popular

with new, younger consumers entering the market.

21


TO-DATE OPERATING RESULTS (CONTINUED)

What were the drivers of third-quarter and year-to-date gross margin improvements? Is the current

gross margin percentage sustainable?

• Improvements in gross margin were due primarily to favorable changes in product mix and

improvements in material costs compared to the prior year. Growth in gross profit margin will become

more challenging in the fourth quarter as certain benefits to gross margin, specifically the $10 million

impact of the retroactive reinstatement of tariff rebates on certain imported raw material in the fourth

quarter of fiscal 2015, will not repeat in the fourth quarter of fiscal 2016. We believe it is important to

view the sustainability of gross margin rates on an annual basis and we believe our current annual

gross margin rates are sustainable so long as current market and economic conditions remain

positive.

Can you explain the factors that drove the 150 basis-point increase in gross margin in the quarter?

• The increase in overall gross margin was primarily the result of improved gross margin in the Towable

Segment driven primarily by improvements in product mix and material costs as a percent of sales.

For Towable RVs material, labor, freight-out and warranty costs as a combined percentage of

Towable net sales decreased to 78.3% for the three months ended April 30, 2016 compared to 80.0%

for the three months ended April 30, 2015. This decrease in percentage was primarily the result of a

decrease in the material cost percentage of sales due to favorable product mix, selective net selling

price increases and improved material management since the prior year period. Freight-out improved

as a percentage of sales as well.

22

INVESTOR Q&A: QUARTER AND YEAR-TO-

DATE OPERATING RESULTS (CONTINUED)

What factors are causing Corporate selling, general and administrative expenses to increase for

both the quarter and year-to-date periods?

• For the quarter, Corporate selling, general and administrative expenses increased $2.4 million to

$12.1 million for the three months ended April 30, 2016 compared to $9.7 million for the three months

ended April 30, 2015. The increase is primarily due to an increase in compensation costs, as bonuses

increased $0.3 million in correlation with the increase in income from continuing operations before

income taxes compared to the prior year, and stock-based compensation increased $0.6 million. The

stock-based compensation increase is due to increasing income from continuing operations before

income taxes over the past three years, as most stock awards vest ratably over a three-year period. In

addition, deferred compensation expense increased $0.3 million, which relates to the equal and

offsetting increase in net other Corporate income, due to the market value change in the deferred

compensation plan assets. Legal and professional fees also increased $0.7 million, largely attributable

to fees incurred related to strategic growth initiatives and increased sales and marketing initiatives.

23



What factors are causing Corporate selling, general and administrative expenses to increase for

both the quarter and year to date periods (continued)?

• For the year-to-date period, Corporate selling, general and administrative expenses increased $5.7

million to $32.0 million for the nine months ended April 30, 2016 compared to $26.3 million for the nine

months ended April 30, 2015. The increase is primarily due to an increase in legal and professional

service fees of $2.2 million, largely attributable to professional fees incurred related to the

development of long-term strategic growth initiatives and increased sales and marketing initiatives. In

addition, compensation costs also increased, as bonuses increased $1.5 million in correlation with the

increase in income from continuing operations before income taxes compared to the prior year, and

stock-based compensation increased $1.9 million. The stock-based compensation increase is due to

increasing income from continuing operations before income taxes over the past three years, as most

stock awards vest ratably over a three-year period. Costs related to the actuarially determined

workers’ compensation and product liability reserves recorded at Corporate also increased by a total

of $1.0 million. These increases were partially offset by a decrease in deferred compensation expense

of $0.8 million, which relates to the equal and offsetting increase in net other Corporate income due to

the market value change in the deferred compensation plan assets.

24



What has been the impact of the Restricted Stock Unit (RSU) program on SG&A expenses?

• As more fully explained in Note 14 of our quarterly report filed on Form 10-Q with the SEC, total

expense recognized in the three-month periods ended April 30, 2016 and April 30, 2015 for these

restricted stock unit awards and other stock-based compensation was $2.3 million and $1.7 million,

respectively. Total expense recognized in the nine-month periods ended April 30, 2016 and April 30,

2015 for these restricted stock unit awards and other stock-based compensation was $7.0 million and

$5.0 million, respectively. The increase in expense for both periods is due to increasing income from

continuing operations before income taxes over the past three years. The RSUs vest ratably over a

three-year period.

25



What was the impact of new acquisitions on third-quarter and year-to-date sales and pre-tax

income?

• Cruiser RV, LLC and DRV, LLC (CRV/DRV) were acquired effective January 1, 2015, therefore the

third quarter of 2015 and the third quarter of 2016 both reflected a full quarter of sales and pre-tax

income related to this acquisition. On a year-to-date basis, the increase in the total Towable net sales

for the nine month period ended April 30, 2016 over the corresponding period in 2015 was impacted

by the inclusion of the five months of incremental activity of CRV/DRV. When we initially purchased

CRV/DRV, we indicated their annual revenues were approximately $135 million, or approximately $11

million per month, with margin comparable to our existing margin.

• In addition to CRV/DRV, the Company acquired Postle Aluminum Company, LLC in the fourth quarter

of fiscal 2015, effective May 1, 2015, therefore the third quarter of 2016 includes three months of

activity from Postle with no corresponding activity in the third quarter of 2015. The operating results of

Postle for the three and nine month periods ended April 30, 2016 are included in the “Other” segment

information of Footnote 4, “Business Segments,” of the Notes to the Condensed Consolidated

Financial Statements (unaudited).

Q What was the impact of new RV acquisitions to April 30, 2016 backlogs and dealer inventory?

• The reported backlogs and dealer inventory at April 30, 2015 and 2016 both include information

related to the CRV/DRV acquisition and therefore are comparable statistics.

26



Has the Postle acquisition met expectations?

• Yes, Postle has met our expectations and is providing incremental net income before tax to Thor.

What caused the discontinued operations impact this quarter?

• The operating loss of discontinued operations before income taxes reflects expenses incurred directly

related to the former bus segment, including ongoing costs related to liabilities retained by the

Company under the Stock Purchase Agreement (SPA) with Allied Specialty Vehicles, Inc. (ASV) for

bus product liability and worker’s compensation claims occurring prior to the closing date of the sale.

What was the year-to-date tax rate? Also, in the earnings press release, you mention that you

expect the fourth-quarter tax rate to be higher than the prior year rate, why is that?

• The overall effective income tax rate for the nine months ended April 30, 2016 was 32.6% compared

with 31.9% for the nine months ended April 30, 2015. The primary reason for the increase in the

effective income tax rate is due to the larger amount of uncertain tax benefits that settled favorably in

the nine months ended April 30, 2015 when compared to the nine months ended April 30, 2016. We

expect similar conditions to prevail in the fourth quarter resulting in a higher effective tax rate for the

full year of fiscal 2016 compared to the prior year. This will have a more significant impact on year-

over-year comparisons in the fourth quarter, as the effective tax rate in the fourth quarter of 2015 was

approximately 29.2%, driven by the favorable settlement of various uncertain state tax positions that

are not expected to repeat in the fourth quarter of fiscal 2016.

27



You’ve been making some changes to reporting structure among your subsidiaries lately, has that

helped to drive gross margin growth? Are you finding that centralization is actually working better

than you thought and proving more efficient than the running of each operating entity

independently?

• Since our founding, our decentralized structure is one of the long-term keys to our success as a

Company. By vesting responsibility and ownership of our operations with those individuals closest to

the customer, we are able to respond quickly to the needs and demands of the market which in turn

drives the success of our operations. We also recognize that as our business changes and market

conditions change, we need to make appropriate changes to optimize our reporting structure. This

has helped in improving our financial results indirectly, as we improved our overall operations to the

benefit of our dealers, consumers and the broader RV market.

28

INVESTOR Q&A: BALANCE SHEET AND CASH

FLOW

What drove the sizable increase in accounts receivable?

• Although accounts receivable has increased by $112.5 million from July 31, 2015, on a year-over-year

basis, the increase was $16.6 million. The increase in accounts receivable at April 30, 2016 was due

primarily to the increase in sales as well as the timing of sales associated with those receivables near

the end of the quarter.

What are your priorities for cash utilization?

• We strive to maintain a healthy cash balance to ensure we have adequate resources to respond to

opportunities and changing market conditions within the RV industry. Our priorities for cash utilization

remain consistent – our first priority is to support and grow our core RV business, both organically and

through acquisitions. Our second priority is maintaining and growing our regular dividend rate over time.

Our third priority is for strategic share repurchases or special dividends, as determined by the

Company’s Board.

29

INVESTOR Q&A: MARKET CONDITIONS AND

OUTLOOK

What is your longer-term outlook for the overall RV market?

• At this point, we see many reasons for optimism regarding the future growth of the RV industry. Our

dealers remain optimistic about the long-term growth of the RV industry. Consumers remain

positive, as the impact of lower fuel prices, increasing job creation, historically low interest rates and

lower inflation expectations have helped consumer confidence to remain strong. This positive

consumer confidence combined with innovative product offerings, including a broader array of lower

priced units in each category of products, have driven the industry growth in excess of the growth

rate of the broader economy. In addition, a positive future outlook for the RV segment is supported

by favorable demographics – both as more people reach the age brackets that historically have

accounted for the bulk of the retail RV sales as well as an influx of younger and ethnically diverse

consumers that are attracted to the RV lifestyle. These younger consumers in particular are

generally attracted to lower and moderately priced products and are, in part, fueling additional growth

in the industry beyond historical levels. The Recreation Vehicle Industry Association (RVIA) also

recently updated their forecast for calendar 2016 and are now projecting 5.9% growth, to 396,400

units. While forecasts of future industry growth are always difficult, subject to a number of risks and

can change rapidly, based on current indicators from the industry, dealers and consumers, we

remain optimistic that the RV industry and Thor have several more years of solid growth ahead.

30


OUTLOOK (CONTINUED)

What is your outlook for the rest of the year?

• Current capacity limitations, combined with the strength of the prior year fourth quarter and continued

strength in the RV market, along with a continued shift toward more moderately priced towable

products, should result in high-single-digit revenue growth in the fourth quarter, as compared with the

prior year. The impact of the retroactive reinstatement of tariff rebates on certain imported raw

material, which had a $10 million, or 95 basis point, positive impact on gross margin in the fourth

quarter of fiscal 2015, will not repeat in the fourth quarter of fiscal 2016. The estimated effective

income tax rate is anticipated to remain comparable to the effective rate incurred in the first nine

months of fiscal 2016, versus the unusually low rate of the fourth quarter of 2015.

Have you seen any softness in markets that have been heavily impacted by the oil industry?

• The largest state with exposure to the oil industry is Texas, which, based on retail registration data

from Statistical Surveys, accounted for 31,911 units in 2015, which was up 7.9% for the year. For

the first three months of 2016, total retail registrations in Texas increased by 6.9%. At this point, we

have not seen signs of reduced demand in the large metro regions of Texas.

What is the current state of Dealer inventory levels?

• Dealers in general remain optimistic regarding calendar 2016. Dealer orders are generally expected

to reflect a 1-for-1 replacement as units are sold at retail. Dealer inventory remains appropriate for

current conditions in both towables and motorized.

31


OUTLOOK (CONTINUED)

Can you comment on your rental business?

• Thor Motor Coach (TMC) has been a leader in the rental business, particularly Class C motorhomes.

TMC is the exclusive provider of rental units for a number of leading national RV rental companies

and is continuing to focus on growing this business with other rental companies. Typically, rental

units are standardized with more limited options than typical retail units. Rental orders tend to be

produced in larger runs that can result in improved productivity that may offset lower-margin content

within these units.

What is the current state of the Canadian RV market?

• The Canadian market is still challenging as we see continued volatility in the value of the Canadian

dollar relative to the U.S. dollar. Since we sell our products to Canadian dealers priced in U.S.

dollars, this creates an upward pressure on prices in local currency which has an adverse impact on

demand. For calendar year 2015, total Canadian retail registrations as reported by Statistical

Surveys, Inc. fell 12.9% from calendar 2014. For 2016, total Canadian retail registrations as reported

by Statistical Surveys, Inc., fell 17.9% for the first three months of 2016, with towables decreasing

17.5% and motorized decreasing 23.7%, though it’s important to note that the Canadian market

typically has limited activity in the early months of the calendar year.

What is the status of the new Heartland plant in Idaho?

• The Heartland facility in Idaho is progressing according to our original timeline. We are ramping up

production at the new western facility that began producing and shipping units in the fiscal third

quarter. The Nampa facility will produce travel trailers to meet the strong demands of the West

Coast dealers of our Heartland subsidiary.

32


COMPETITION (CONTINUED)

What is the status of the new Thor Motor Coach plant in Bristol, Indiana?

• The team at Thor Motor Coach has worked to quickly begin production at this plant given the strong

reception to the new Class C products we introduced last year at Open House. That plant began

production in May and the team plans to ramp up production over the fourth quarter.

Do you have plans for additional geographic expansion esp. considering your comments on

capacity constraints?

• We are continually evaluating a variety of options for additional capacity, including potential

acquisitions of existing and newly-constructed facilities in northern Indiana and in the western U.S,

as well as potential construction of new facilities. Each potential location is evaluated on a number

of factors including market demand, proximity to suppliers and dealers, infrastructure and access to

an adequate labor force, as well as cost. As we evaluate these options, we remain mindful that our

industry is defined by its seasonality and cyclicality, and we make decisions on expansion with a

long-term view and are conscious of the threats of over-expansion or under-expansion to meet a

shorter-term market condition. Management’s decision-making seeks to find the optimal positioning

to drive both short-term and long-term performance for our shareholders.

What else are you doing to address the capacity constraints?

• Each of our subsidiary management teams evaluates current orders, backlog and expected future

demand in light of current production capacity for their products. In some cases we choose to

expand capacity, such as the recent expansion of Class C production at Thor Motor Coach. In other

cases, the subsidiaries may shift production between plants based on seasonal demand or shift

production flow to increase effective capacity at existing facilities.

33


OUTLOOK (CONTINUED)

Thor has lost market share in calendar 2015. Why have you lost market share and what does the

Company plan on doing to address or reverse the losses?

• From a share perspective, we have gained significant market share in motorized, which has been

partially offset by some decreases in towable share, most notably in high-end fifth wheels and some

travel trailers. Market share is certainly a key metric that we monitor for all our product categories –

however, it is not the only metric. Overall, we generally try to take a balanced approach to growing or

maintaining market share across our portfolio of products and growing or maintaining gross margin.

In addition, we have made some critical moves in the past, such as the consolidation of the two

smaller Dutchmen facilities in Idaho and Oregon into the existing Keystone facility in Pendleton,

Oregon. We understood when we closed those plants that it would likely adversely affect our market

share, but that the long-term benefit of improved operating efficiency at the Pendleton plant would

more than offset the cost. In addition, the RV industry is extremely competitive. We have developed

a variety of new products that we believe address the largest and fastest growing segments of the

market, which should help to improve share as they penetrate the broader market.

Describe the current competitive environment, is there much discounting going on?

• The RV industry is always competitive, as our subsidiaries and our outside competitors continue to

drive the industry forward with new and better products for dealers and consumers. However, given

the capacity constraints on certain products, most notably towable RVs, we have seen less

traditional discounting pressure overall in the market than we did several years ago.

34


OUTLOOK (CONTINUED)

Do we anticipate further RV industry consolidation?

• Although a significant amount of consolidation has already happened within the industry since the

last recession, we do believe that opportunities remain for additional consolidation within the

industry. Consolidation in our industry does not threaten the competitive environment as years of

consolidation have evidenced. In fact, it tends to benefit the industry and broadens the customer

base by driving innovation and attracting more individuals to the RV lifestyle. So, even with more

consolidation, we are confident that the competitive environment that drives innovation and improved

product offerings throughout our industry will continue. In addition, we have seen a number of new

or returning entrants to the RV manufacturer base since the recession as well.

What is your strategic plan for future acquisitions?

• We have established a very disciplined approach to acquisitions to ensure we remain focused on the

factors that provide the greatest likelihood to a successful acquisition and that will provide long-term

value to our shareholders. We are opportunistic in our approach and seek willing sellers at a

reasonable sales price. We also seek companies with strong management teams. We remain

focused on acquisition opportunities within or adjacent to the RV industry.

35

RV WHOLESALE MARKET

TRENDS (UNITS 000s)

29

5.8

33

9.6

44

1.1

41

3.9

38

9.9

19

9.2

10

6.9 1

33

.6

14

0.6

19

6.6 21

5.7

18

6.9

18

9.9 211

.7

21

5.8

18

7.9

17

3.1

16

3.1

20

3.4 2

27

.8

25

9.5

24

7.2

24

7.5

25

4.5

29

2.7 3

21

.2

30

0.1

25

6.8

311

.0

32

0.8

37

0.1

38

4.4

39

0.5

35

3.5

23

7.0

16

5.6

24

2.3

25

2.3

28

5.8

32

1.2

35

6.8 37

4.2 39

6.4

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6 (

e)

Historical Data: Recreation Vehicle Industry Association, Calendar year 2016: RVIA estimate as of Summer RV Roadsigns, published in May 2016

36

RV MARKET MOTORIZED

WHOLESALE TRENDS (UNITS 000s)

68

.9

96

.6

15

6.1

16

0.2

15

7.2

64

.1

28

.5 35

.4 41

.2

69

.5

82

.0

68

.7

67

.7 73

.7

72

.8

61

.1

52

.3

41

.9 46

.9 51

.3 58

.2

52

.8

55

.3

55

.1

63

.5 71

.5

61

.0

49

.2

60

.4

62

.0

71

.7

61

.4

55

.8

55

.4

28

.4

13

.2

25

.2

24

.8 28

.2

38

.4 44

.0

47

.3 50

.9

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6 (

e)


37

RV MARKET TOWABLE

WHOLESALE TRENDS (UNITS 000s)

22

6.9 24

3.0

28

5.0

25

3.7

23

2.7

13

5.1

78

.4

98

.1

99

.4

12

7.1

13

3.7

11

8.1

12

2.1 13

7.9

14

2.9

12

6.7

12

0.8

12

1.1

15

6.5 1

76

.5

20

1.3

19

4.3

19

2.2

19

9.5

22

9.1 2

49

.6

23

9.1

20

7.6

25

0.6

25

8.9

29

8.3

32

3.0

33

4.5

29

8.1

20

8.6

15

2.4

21

7.1

22

7.5

25

7.6

28

2.8

31

2.8 32

6.9 34

5.5

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6 (

e)


38

RV INDUSTRY DEMAND

Industry retail demand has shifted toward more light-weight towables

and gas Class A and Class C motorhomes as consumers seek value

Wholesale units typically outpace retail in the early part of the

calendar year; historically sales become more balanced as we reach

the peak retail selling season

Calendar Year

2013 2014 2015 YTD 2015 YTD 2016

Industry Retail

Registrations*

301,481 units

(+14.7%)

328,866 units

(+9.1%)

369,883 units

(+12.5%)

66,295 units

(+18.5%)

73,145 units

(+10.3%)

Industry

Wholesale

Shipments**

321,127 units

(+12.4%)

356,735 units

(+11.1%)

374,246 units

(+4.9%)

97,074 units

(+7.9%)

108,015 units

(+11.3%)

* Statistical Surveys, Inc., includes US and Canada. 2013, 2014 & 2015 Full Year Actual, YTD 2015 and 2016 through March

** RVIA wholesale shipments for full years 2013, 2014 & 2015, YTD 2015 and 2016 through March

39

THOR BACKLOG AND DEALER

INVENTORYDealers remain confident with orders reflecting a shift toward more normal ordering patterns

Orders generally expected to reflect 1-for-1 replacement as units are sold at retail

Backlog: April 30 ($000s),

2016 2015 % Change

Towables $727,539 $484,228 50.2%

Motorized $329,272 $242,560 35.7%

Total RV $1,056,811 $726,788 45.4%

Dealers inventory remains appropriate for current conditions in both towable and motorized

Lenders still comfortable with current dealer inventory turns and current credit line utilization; year-

over-year turns have increased modestly, resulting in a slight reduction in average age of Thor units

on dealers’ lots

Dealer Inventory: April 30, (units)

2016 2015 % Change

RV 82,100 81,300 1.0%

40

RV INDUSTRY RETAIL MARKET

SHARE

Total Share % Total Share % Total Share % Total Share %

THOR* 24,341 33.3% 127,528 34.5% 119,089 36.2% 115,572 38.3%

Forest River** 25,693 35.1% 131,198 35.5% 112,979 34.4% 99,822 33.1%

Jayco*** 9,818 13.4% 49,650 13.4% 41,574 12.6% 37,942 12.6%

Winnebago 2,175 3.0% 11,857 3.2% 10,395 3.2% 8,661 2.9%

Grand Design 1,994 2.7% 6,967 1.9% 4,174 1.3% 813 0.3%

REV Group 773 1.1% 3,380 0.9% 4,888 1.5% 6,034 2.0%

Gulfstream 731 1.0% 4,743 1.3% 4,562 1.4% 4,882 1.6%

Subtotal 65,525 89.6% 335,323 90.7% 297,661 90.5% 273,726 90.8%

All Others 7,620 10.4% 34,560 9.3% 31,205 9.5% 27,755 9.2%

Grand Total 73,145 100.0% 369,883 100.0% 328,866 100.0% 301,481 100.0%

Y/E 12/31/15 Y/E 12/31/14 Y/E 12/31/13YTD 3/31/16

Source: Statistical Surveys, Inc., U.S. and Canada

* Thor adjusted to include historical results of Livin’ Lite, Bison Coach, K-Z, Inc., Cruiser RV and DRV Luxury Suites for all periods presented ** Forest River includes Palomino,

Coachmen, Prime Time, Shasta and Dynamax *** Jayco adjusted to include historical results of Open Range

41

THOR RV RETAIL MARKET SHARE

TREND (UNITS)

40.9% 41.2%40.2%

37.9%

35.8%

34.2%

19.5% 20.0%

23.3%23.9%

25.1%

28.0%

14.4%

16.7%

22.1% 21.9%22.5%

19.0%

2011 2012 2013 2014 2015 2016 YTD**

Towable Retail Share* Class A/C Retail Share* Class B Retail Share*

*Source: Statistical Surveys Inc., U.S. and Canada, calendar year 2010-15. Historical results adjusted to include results of Heartland, Livin’ Lite, Bison Coach, K-Z,

Inc., Cruiser RV and DRV Luxury Suites for all periods presented. **2016 YTD through March.

42

QUARTERLY THOR RV UNIT

SHIPMENTS

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1Q2006 1Q2007 1Q2008 1Q2009 1Q2010 1Q2011 1Q2012 1Q2013 1Q2014 1Q2015 1Q2016

thor investor presentation 6.6.16

Investor Relations