UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K |
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported) November 2, 2017
Winnebago Industries, Inc. | ||
(Exact Name of Registrant as Specified in its Charter) | ||
Iowa | 001-06403 | 42-0802678 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
P.O. Box 152, Forest City, Iowa | 50436 | |
(Address of Principal Executive Offices) | (Zip Code) | |
Registrant's telephone number, including area code 641-585-3535
______________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 7.01 Regulation FD Disclosure.
On November 2, 2017, at an Investor Day at the Current at Chelsea Piers in New York City, where the President and Chief Executive Officer, Michael Happe, and other members of the Winnebago Industries leadership team will provide business updates and an overview of the Company's long-term strategy, the Company will give an investor presentation, included as Exhibit 99.1 herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Description | ||
Cautionary Statement Regarding Forward-Looking Information
This presentation 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, any unexpected expenses related to ERP, risks relating to the integration of our acquisition of Grand Design including: risks inherent in the achievement of cost synergies and the timing thereof; risks related to the disruption of the transaction to Winnebago and Grand Design and its management; the effect of integration on Grand Design's ability to retain and hire key personnel and maintain relationships with customers, suppliers and other third parties, risk related to compliance with debt covenants and leverage ratios, and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, 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.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WINNEBAGO INDUSTRIES, INC. | ||||
Date: | November 2, 2017 | By: | /s/ Scott C. Folkers | |
Name: | Scott C. Folkers | |||
Title: | Vice President, General Counsel and Secretary | |||
WINNEBAGO INDUSTRIES
INVESTOR DAY 2017
NOVEMBER 2, 2017
WELCOME
& AGENDA
INVESTOR DAY 2017
2
8:00-8:05 a.m. Welcome & Agenda
Ashis
Bhattacharya
8:05-8:20 a.m. Chairman’s Remarks Bob Chiusano
8:20-8:35 a.m. Outdoor/RV Overview
Ashis
Bhattacharya
8:35-9:10 a.m. CEO Update
Michael
Happe
9:10-9:20 a.m. Q&A
9:20-9:35 a.m. Break
9:35-10:05 a.m. Grand Design RV Update Don Clark
10:05-10:35 a.m.
Winnebago Towables
Update
Scott Degnan
10:35-11:05 a.m.
Winnebago
Motorhomes Update
Brian
Hazelton
11:05-11:20 a.m. Q&A
11:20-12:15 p.m. Lunch and RV Tours
12:15-12:30 p.m.
Operations &
Manufacturing
Chris West
12:30-12:45 p.m. Digital Transformation Jeff Kubacki
12:45-1:00 p.m. Business Development
Ashis
Bhattacharya
1:00-1:30 p.m. CFO Update Bryan Hughes
1:30-2:00 p.m. CEO Close/Q&A
Michael
Happe
AGENDA
INVESTOR DAY 2017
3
LEADERSHIP
INVESTOR DAY 2017
4
Bob Chiusano
Chairman of the Board
Michael Happe
President and CEO
Brian Hazelton
VP/GM Winnebago
Motorhomes
Ashis Bhattacharya
VP Strategic Planning
and Development
Don Clark
VP, Winnebago Industries,
President, Grand Design RV
Scott Degnan
VP/GM Winnebago
Towables
Bryan Hughes
VP and CFO
Jeff Kubacki
VP and Chief
Information Officer
Chris West
VP Operations
Scott Folkers
VP General Counsel
and Secretary
Bret Woodson
VP Human Resources and
Administration
Steve Stuber
Director of FP&A and IR
FORWARD LOOKING STATEMENTS
This presentation 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, any unexpected expenses related to ERP, risks relating to the integration of our acquisition of
Grand Design including: risks inherent in the achievement of cost synergies and the timing thereof; risks related to the disruption of the
transaction to Winnebago and Grand Design and its management; the effect of integration on Grand Design's ability to retain and hire key
personnel and maintain relationships with customers, suppliers and other third parties, risk related to compliance with debt covenants and
leverage ratios, and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ
materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the
last 12 months, 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 DAY 2017
5
CHAIRMAN’S
REMARKS
INVESTOR DAY 2017
6
INVESTOR DAY 2017
BOB CHIUSANO
CHAIRMAN OF THE BOARD
Last Position
§ Independent Board Member
Background
§ Member of Winnebago Industries Board since 2008
§ Chairman of the Board since 2016
§ Chief Operating Officer, Commercial Systems, Rockwell Collins
§ 39 years management experience
§ MBA, University of Iowa
§ BS Engineering, State University of New York
Focus
§ Strategy development
§ M&A
§ Operational excellence
§ Building high-performance work teams
7
BACKDROP
INVESTOR DAY 2017
§ #1 brand in the RV industry
with significant untapped
potential
8
§ Outside CEO search
§ Weathered financial crisis
(Revenue drop from $1B to
$200M)
§ Board and executive leadership
team evolution – high-
performance environment
OUTDOOR/RV
OVERVIEW
INVESTOR DAY 2017
9
INVESTOR DAY 2017
ASHIS BHATTACHARYA
VP STRATEGIC PLANNING AND DEVELOPMENT
Last Position
§ VP Strategic Marketing, Honeywell
Background
§ 30 years global strategy, acquisitions, and marketing experience
§ Moog, Motorola Solutions, Bain & Co
§ MBA, INSEAD, Fontainebleau
§ PGDM, Indian Institute of Management, Calcutta
§ BS Mechanical Engineering, College of Engineering, Pune, India
Focus
§ Growth strategy
§ Customer insights
§ Design thinking
§ Digital transformation
10
RVs AND CLASSES
INVESTOR DAY 2017
MOTORHOME PRODUCT OVERVIEW TOWABLE PRODUCT OVERVIEW
11
Class A
§ Built on a heavy
truck chassis
§ Diesel and Gas
models
§ Ability to tow a
small vehicle
Class C
§ Built on a
medium truck
chassis
§ Similar features
and amenities to
Class A models
Class B
§ Built by adding
taller roof and
amenities to
existing van
§ Easy to
maneuver
Travel Trailer
§ Towed by means
of a hitch
attached to the
frame of the
vehicle
Fifth Wheel
§ Constructed with
a raised forward
section that is
connected to the
vehicle with a
special fifth
wheel hitch
INVESTOR DAY 2017
254.5
292.7
321.2
300.1
256.8
311 320.8
370.1 384.4
390.5
353.5
237
165.6
242.3 252.3
285.8
321.1
356.8
374.2
430.7
479.7 491.2
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
E
20
18
E
TOTAL RV WHOLESALE MARKET
NORTH AMERICA SHIPMENTS (UNITS ‘000s)
12
____________________
Sources: Historical Data: Recreation Vehicle Industry Association; Calendar years 2017 and 2018 represent RVIA estimates as of Fall RV Roadsigns, published in August 2017
INVESTOR DAY 2017
MOTORHOME RV WHOLESALE MARKET
NORTH AMERICA SHIPMENTS (UNITS ‘000s)
55.1
63.5
71.5
61
49.2
60.4 62
71.7
61.4
55.8 55.4
28.4
13.2
25.2 24.8
28.2
38.4
44
47.3
54.7
60.2 61.9
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
E
20
18
E
13
____________________
Sources: Historical Data: Recreation Vehicle Industry Association; Calendar years 2017 and 2018 represent RVIA estimates as of Fall RV Roadsigns, published in August 2017
INVESTOR DAY 2017
TOWABLE RV WHOLESALE MARKET
NORTH AMERICA SHIPMENTS (UNITS ‘000s)
199.5
229.1
249.6 239.1
207.6
250.6 258.9
298.3
323 334.5
298.1
208.6
152.4
217.1 227.5
257.6
282.7
312.8
326.9
376
419.5 429.3
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
E
20
18
E
14
____________________
Sources: Historical Data: Recreation Vehicle Industry Association; Calendar years 2017 and 2018 represent RVIA estimates as of Fall RV Roadsigns, published in August 2017
RV INDUSTRY ECONOMIC INDICATORS (2017)
INVESTOR DAY 2017
GOOD CAUTION TROUBLE
Interest Rates
Fuel Availability
Wholesale & Retail Credit
Wages & Employment
Cars & Light Truck Sales
Dealer Inventories
Consumer Debt
Fuel Prices
New Private Housing Starts
Consumer Sentiment
____________________
Sources: RVIA data and reports, US Department of Commerce, US Treasury, Dun & Bradstreet, Center for Microeconomic Data
15
THE CALL OF THE OUTDOORS REMAINS STRONG
INVESTOR DAY 2017
48.6% of Americans reported participating in at least one outdoor activity in 2016
§ Most popular activities: running, fishing, hiking, bicycling, camping
Sources: KOA 2017 North American Camping Report, Outdoor Recreation
Participation Topline Report 2017, Outdoor Industry Association Report
Significant
Outdoor
Activity
Participation
High Interest
in Camping
Seeking
Health and
Wellness
$887 billion spent on outdoor activities in 2016
Aspirational: Across all age groups, camping ranked as #1 or #2 most popular aspirational outdoor activity
(i.e. activities that most interest non-participants)
Of those surveyed, key reasons cited for outdoor activities include
§ spending more time with friends and family
§ being physically active
§ improving overall emotional well-being and health
16
CAMPING PARTICIPATION CONTINUES TO INCREASE
INVESTOR DAY 2017
Occasional Campers
31%
Non-Campers
39%
Camp 3+ Times/Year
12%
Camp 2 Times/Year
14%
Camp 1 Time/Year
5%
Camping Trends in 2016 and Beyond
Say gas prices will allow
more camping
Plan to visit National Parks
31%
Plan to camp more
58%
Millennials plan to camp more
Household Camping Frequency
17
____________________
Source: Kampgrounds of America (KOA) 2017 camping report; Industry news
61%
Of U.S. households camp
at least occasionally
New U.S. households became
campers over the last 3 years
18%
26%
2015 2016
RV AS PRIMARY
ACCOMMODATION
FOR NEW
CAMPERS
FAVORABLE DEMOGRAPHIC TRENDS
INVESTOR DAY 2017
All
Campers
New
Campers
38% 34% 21% 7%
44% 28% 17% 11%
74% 8% 9% 6%
61% 12% 13% 14%
Millennial Boomer Mature Caucasian/
White
African
American/
Black
Hispanic/
Latino
Asian/
Pacific
Islander
Other
More Millennials are camping More ethnic groups are camping
Gen X
By Age By Ethnicity
18
____________________
Source: Kampgrounds of America (KOA) 2017 camping report; Industry news
KEY TAKEAWAYS
INVESTOR DAY 2017
19
CEO UPDATE
INVESTOR DAY 2017
20
MICHAEL HAPPE
PRESIDENT AND CEO
Last Position
§ Group Vice President, The Toro Company
Background
§ 20+ years management experience
§ Strong track record of growing the businesses
§ MBA, Carlson School, University of Minnesota
§ BS Journalism, University of Kansas
Focus
§ Vision
§ Enterprise strategy
§ Talent/culture development
INVESTOR DAY 2017
21
INVESTOR DAY 2017
WINNEBAGO INDUSTRIES OVERVIEW
$861.90
$685.20
Motorized ($M)
Towables ($M)
Junction City, OR
Lake Mills, IA
Forest City, IA
Charles City, IA
Waverly, IA
Eden Prairie, MN
Middlebury, IN (2)
22
+
INVESTOR DAY 2017
THE WINNEBAGO STORY
Iconic outdoor
lifestyle brand
synonymous
with RV
category
Balanced
portfolio of
motorhomes
and towables
Improving
balance sheet
Significant
growth
runway
23
Upgraded
talent with
focus on a
new vision
$44.5
$63.9
$59.4
$65.7
$125.1
$0
$40
$80
$120
$160
Operating Income ($M)
0%
5%
10%
2013 2014 2015 2016 2017
Operating Income %
2013 2014 2015 2016 2017
Motorized Towables Other
NET REVENUES ($M)
$803.2
$945.2
$1,547.1
$976.5 $975.2
INVESTOR DAY 2017
THE JOURNEY
24
OPERATING INCOME
We will be the trusted leader in outdoor lifestyle
solutions by providing unmatched innovation,
quality and service in the industries we engage.
We help our customers explore the outdoor
lifestyle, enabling extraordinary experiences as
they travel, live, work and play.
Version 1.0 08/22/16
Our
Vision
Our
Purpose
Our
Mission
To create lifetime advocates through a
relentless focus on delivering an unsurpassed
customer experience.
Our Values
Customer-Centric
Our customers are the
reason we exist. We
understand and care
deeply about their unmet
needs and are committed
to providing valued
solutions. Our drive to
elevate their ownership
experience is pervasive
in every area of our
business.
Quality-Focused
We will strive to set the
standard for quality in our
industries, working every
day to improve upon
these levels of excellence.
We are focused to do
things right the fi rst time
in all we do.
Results-Driven
We are focused on
market leadership and
delivering consistent
financial results. With a
bias for critical thinking
and execution, we
will build a culture of
sustainable performance
and accountability. We
will deliver a rewarding
work experience for our
employees and superior
shareholder returns.
Collaborative
We care about each
other deeply. We work in
high performing teams
to create our products
and services. We seek
employees with strong,
diverse talents who work
together effectively to
deliver results.
Innovative
We are committed to push
the frontiers every day to
develop innovative and
differentiated product
solutions and services.
Internally, we will
consistently reinvent our
processes to continuously
improve and exceed
expectations.
Trusted
We will always conduct
ourselves with the
highest degree of
integrity, trust and
respect. We will honor
our code of conduct
and hold ourselves
accountable to these
uncompromising
expectations. We will
strive to be strong
ambassadors in the
communities our
employees live and
work in.
We respect our roots and legacy of success; we do not rest on them. We
work to understand our customers’ unmet needs and develop solutions and
an experience that creates lifelong advocates. Our employees are driven and
caring. We strive to develop the best talent possible and enable a culture
of servant leadership. We embrace thoughtful change in order to compete
effectively and deliver market leadership as well as superior profi tability.
We will work strategically with our channel partners to help them
succeed and exceed our mutual end-customers’ expectations. We will
continue to build respected brands that will be among our greatest
assets. In every part of our company, we relentlessly pursue continuous
improvement and enhanced productivity, driving out waste, and creating
ongoing and meaningful differentiation.
Guiding Principles
OUR NORTH STAR
INVESTOR DAY 2017
We help our customers
explore the out oor lifestyle,
enabling extraordinary
experiences as they travel,
live, work and play.
We will be the trusted leader
in outdoor l festyle solutions
by providing unmatched
innovation, quality and service
in the industries we engage.
To create lifetime advocates
through a relentless focus on
delivering an unsurpassed
customer experience.
We will be the tru ted l ader in outdoor lifestyle
solutions by providing unmatched innovation,
quality and service in the industries we engage.
We help our customers explore the outdoor
lifestyle, enabling extraordinary experiences as
they travel, live, work and play.
Version 1.0 08/22/16
Our
Vision
Our
Purpose
O
Mission
To create lifetime advocates through a
relentless focus on delivering an unsurpassed
customer experience.
Our Values
Customer-Centric
Our customers are the
reason we exist. We
understand and care
deeply about their unmet
needs and are committed
to providing valued
solutions. Our drive to
elevate their ownership
experience is pervasive
in every area of our
business.
Quality-Focused
We will strive to set the
standard for quality in our
industries, working every
day to improve upon
these levels of excellence.
We are focused to do
things right the fi rst time
in all we do.
Results-Driven
We are focused on
market leadership and
delivering consistent
financial results. With a
bias for critical thinking
and execution, we
will build a culture of
sustainable performance
and accountability. We
will deliver a rewarding
work experience for our
employees and superior
shareholder returns.
Collaborative
We care about each
other deeply. We work in
high performing teams
to create our products
and services. We seek
employees with strong,
diverse talents who work
together effectively to
deliver results.
Innovative
We are committed to push
the frontiers every day to
develop innovative and
differentiated product
solutions and services.
Internally, we will
consistently reinvent our
processes to continuously
improve and exceed
expectations.
Trusted
We will always conduct
ourselves with the
highest degree of
integrity, trust and
respect. We will honor
our code of conduct
and hold ourselves
accountable to these
uncompromising
expectations. We will
strive to be strong
ambassadors in the
communities our
employees live and
work in.
We respect our roots and legacy of success; we do not rest on them. We
work to understand our customers’ unmet needs and develop solutions and
an experience that creates lifelong advocates. Our employees are driven and
caring. We strive to develop the best talent possible and enable a culture
of servant leadership. We embrace thoughtful change in order to compete
effectively and deliver market leadership as well as superior profi tability.
We will work strategically with our channel partners to help them
succeed and exceed our mutual end-customers’ expectations. We will
continue to build respected brands that will be among our greatest
assets. In every part of our company, we relentlessly pursue continuous
improvement and enhanced productivity, driving out waste, and creating
ongoing and meaningful differentiation.
Guiding Principles
25
STRATEGIC PRIORITIES
INVESTOR DAY 2017
Elevate Excellence
in Operations
Drive Higher Levels of Safety,
Quality, and Productivity
Strengthen and Expand
Core RV Business
Re-energize Motorhome; 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 and Outside of RVs
5
Leverage Innovation
and Digital Engagement
Create Connected Customer
Advocacy
4
26
STRATEGIC PRIORITIES
INVESTOR DAY 2017
1 Build a High-Performance CultureCreate Unique Blend of Leadership, Accountability and Giving
27
STRATEGIC PRIORITIES
INVESTOR DAY 2017
Strengthen and Expand Core RV Business
Re-energize Motorhome; Invest in Towable Growth2
28
STRATEGIC PRIORITIES
INVESTOR DAY 2017
Elevate Excellence in Operations
Drive Higher Levels of Safety, Quality, and Productivity3
29
STRATEGIC PRIORITIES
INVESTOR DAY 2017
Leverage Innovation and Digital Engagement
Create Connected Customer Advocacy4
30
STRATEGIC PRIORITIES
INVESTOR DAY 2017
Expand to New, Profitable Markets
Investigate Diversification – Inside and Outside of RVs5
31
INVESTOR DAY 2017
IMPACT OF GRAND DESIGN
32
Broader, more balanced portfolio
with runway for growth
Completion of acquisition creates winning multi-brand platform.
Significantly enhanced
financial profile
Establish critical relationships
between Winnebago and
Grand Design team members
STRATEGIC FINANCIAL CULTURAL
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
Strong momentum as Grand Design
continues to outperform
Margin, EPS and cash flow expansion
On pace to exceed total annual run-rate
cost synergies, phased
in over three years
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
INVESTOR DAY 2017
33
GDRV/WINNEBAGO COMBINATION
BENEFITS OF BEING PART OF WINNEBAGO
KEY MESSAGES
INVESTOR DAY 2017
34
In January 2016,
Winnebago Industries
was a company that
needed a fresh
vision and strategy
so that it could
compete for industry
leadership.
We are building a
solid foundation
around strategy,
structure, people,
processes, and
systems, supported by
an engaged Board.
Thanks in large part to
a transformational
acquisition,
shareholder value
has increased
significantly.
We have our own
unique combination of
well-known brands, a
balance sheet that can
be leveraged for the
right opportunities,
and a strong
appetite to grow
and evolve the
portfolio.
INVESTOR DAY 2017
35
____________________
Effective January 2,2018
STACY BOGART
VP GENERAL COUNSEL AND CORPORATE SECRETARY
Last Position
§ Senior VP, General Counsel and Compliance Officer, Polaris Industries
Inc.
Background
§ 26+ years legal experience
§ Liberty Diversified, Toro, Honeywell, Gray Plant & Mooty
§ JD with Distinction, University of Iowa Law School
§ Associate Editor, Iowa Law Review
§ BA, University of Iowa
Focus
§ Corporate governance
§ M&A, joint ventures and strategic alliances
§ Ethics and compliance
§ Corporate giving and strategic philanthropy
INVESTOR DAY 2017
Q&A
36
INVESTOR DAY 2017
BREAK
37
INVESTOR DAY 2017
GRAND DESIGN RV
UPDATE
38
INVESTOR DAY 2017
DON CLARK
VP, WINNEBAGO INDUSTRIES,
PRESIDENT, GRAND DESIGN RV
Last Position
§ Owner/Management Group Member, Keystone RV
§ President, Dutchmen RV
Background
§ 35 years RV industry experience
§ Business Degree, Bethel College
§ Honorary Doctorate, Bethel College
Focus
§ Recruiting talent and building high-performance teams
§ Innovative products
§ Customer relationships
39
ABOUT GRAND DESIGN RV
INVESTOR DAY 2017
40
1,000th unit
shipped
10,000th unit
shipped
40,000th unit
shipped
GDRV TIMELINE
INVESTOR DAY 2017
Grand Design
Founded
INTRODUCED:
Solitude
Momentum
Reflection
41
2012 2013 2014 2015 2016 2017
INTRODUCED:
Imagine
INTRODUCED:
Reflection 150
Series
____________________
Years refer to calendar years.
§ Destination Travel
Trailers
§ Target Market:
Gen X & Baby
Boomers
§ MSRP: $44-52k
§ Lightweight
Travel Trailers
§ Target Market:
Millennial & Gen X
§ MSRP: $32-41k
INVESTOR DAY 2017
42
FIFTH WHEEL
GRAND DESIGN RV LINEUP
TRAVEL TRAILER
§ Luxury Extended
Stay Fifth Wheels
§ Target Market:
Late Gen X & Baby
Boomers
§ MSRP: $81-104k
§ Luxury Toy Hauler
Fifth Wheels
§ Target Market:
Late Millennials
to Baby Boomers
§ MSRP: $69-103k
§ Mid-Profile Fifth
Wheels
§ Target Market:
Gen X & Baby
Boomers
§ MSRP: $39-65k
KEY STRATEGIES
INVESTOR DAY 2017
43
INVESTOR DAY 2017
44
§ We listen to our customers and dealers and
respond quickly
§ Nimble and quick to adapt to customers’
fast-changing preferences
§ Track record of introducing innovative, fast-
turning and highest-grossing products in
the RV space
KEY STRATEGIES
§ One dealer per market
§ Each dealer sells entire product line
§ No cloning other brands
§ No internet dealers
§ One price to all dealers
§ All dealers provide excellent customer service
Step 1:
PRODUCTION
LINE
Multiple QC
checkpoints
Step 2:
FINAL FINISH
Comprehensive
systems and QC
checks
Step 3:
PRE-DELIVERY
INSPECTION
(PDI) 280+ point
inspection on every
unit produced
INVESTOR DAY 2017
45
KEY STRATEGIES
§ Initiated industry-leading 100% pre-delivery
inspection (PDI) process in towable market
§ Digital customer engagement through
social media
§ Loyal customer communities and groups
§ Customer meet-up events (e.g. rallies)
INVESTOR DAY 2017
46
KEY STRATEGIES
§ Community with strong work ethic
§ Large employee base in Northern Indiana
with RV know-how
§ Attracted all-star team of employees within
the industry
INVESTOR DAY 2017
THE PATH FORWARD
47
INVESTOR DAY 2017
WINNEBAGO
TOWABLES
UPDATE
48
INVESTOR DAY 2017
SCOTT DEGNAN
VP/GM WINNEBAGO TOWABLES
Last Position
§ VP Sales & Product Management, Winnebago Industries
Background
§ VP Sales, Fleetwood RV
§ 30 years RV industry experience
§ BA Business, San Jose State University
Focus
§ Develop a winning culture
§ Grow the Winnebago brand
§ Increase profitability
49
WINNEBAGO TOWABLES LINEUP
INVESTOR DAY 2017
50
Minnie Drop Micro Minnie Minnie Minnie Plus
Travel Trailer
Minnie Plus
Fifth Wheel
TRAVEL TRAILER
§ 6.5’-wide teardrop
trailers
§ Target market:
Millennials & Gen X
§ MSRP: $17-21K
§ 7’-wide
lightweight
trailers
§ Target market:
Millennials to
baby boomers
§ MSRP: $19-24K
§ 8’-wide small
slideout trailers
§ Target market:
Gen X to baby
boomers
§ MSRP: $27-29K
§ Lower weight ½
ton truck towable
fifth wheels
§ Target market:
Gen X to baby
boomers
§ MSRP: $36-40K
FIFTH WHEEL
§ 8’-wide large and
multiple slideout
trailers
§ Target market:
Millennials to
baby boomers
§ MSRP: $32-40K
WHO WE ARE
INVESTOR DAY 2017
51
KEY STRATEGIES
INVESTOR DAY 2017
52
INVESTOR DAY 2017
53
KEY STRATEGIES
§ Focus on full-line dealers
§ One dealer per market
§ Field-based sales reps (closer to the market)
§ Eliminate dealers not aligned with our
growth vision
§ Large exclusive territories
§ Streamline product portfolio
§ Build a brand identity — Minnie
§ Focus on most successful segments
§ Platform approach to designing products
(standardized components)
INVESTOR DAY 2017
54
KEY STRATEGIES
§ Connectivity
§ Added Dealer Council
§ Greatly reduced finished goods inventory
§ Standardized product features/options
§ Reduced manufacturing complexities
§ Increased lead-time production schedules
§ Hire skilled managers from both inside and
outside RV industry
§ Re-align sales team
§ Focus on safety and quality
§ Formal sales structure/Regional Sales
Managers
THE PATH FORWARD
INVESTOR DAY 2017
55
SALES
MOMENTUM
SIGNIFICANT
RUNWAY FOR
GROWTH
NEW
PRODUCTS
RE-ENERGIZED
TEAM
ENERGIZED
DEALER BASE
INVESTOR DAY 2017
WINNEBAGO
MOTORHOMES
UPDATE
56
INVESTOR DAY 2017
BRIAN HAZELTON
VP/GM WINNEBAGO MOTORHOMES
Last Position
§ CEO, Schwing America Inc.
Background
§ 25 years management experience
§ Schwing, Terex, Detroit Diesel
§ BA Finance, Miami University
Focus
§ Turn around and growth of strong brands
§ Voice-of-customer product and organizational development
§ Attack non-value-add, legacy processes
57
WINNEBAGO MOTORHOMES LINEUP
INVESTOR DAY 2017
58
CLASS B
§ Selected models:
Travato, Era, Revel
§ MSRP: $102-$155K
CLASS C CLASS A GAS CLASS A DIESEL
Travato View Vista Grand Tour
§ Selected models:
View/Navion, Minnie
Winnie/Spirit
§ MSRP: $80-157K
§ Selected models:
Vista, Sunstar
§ MSRP: $116-209K
§ Selected models:
Forza, Grand Tour
§ MSRP: $205-545K
____________________
The motorhome lineup is comprised of 27 different models
MOTORHOMES OVERVIEW
INVESTOR DAY 2017
59
STRONGEST
BRAND
AWARENESS
IN INDUSTRY
54%
WGO REVENUE
$
INDUSTRY-LEADING
SERVICE
QUALITY &
SAFETY
SKILLED & EXPERIENCED
WORKFORCE
POINT OF DEPARTURE
INVESTOR DAY 2017
60
MARKET SHARE
STATIC
LIMITED
ENTRY-LEVEL
PRODUCTS
OPERATIONS
COMPLEXITY
DEALER CHANNEL
NOT OPTIMIZED
LACK OF
OWNERSHIP &
URGENCY
IN ORGANIZATION
PRODUCT
DEVELOPMENT
TOO SLOW
KEY STRATEGIES
INVESTOR DAY 2017
61
INVESTOR DAY 2017
62
KEY STRATEGIES
§ Build better products to re-engage
stronger dealers
§ Become more important to existing
dealer base
§ Improve dealer partnerships to enhance
the customer experience
§ Strong new products launched at Open
House 2017 – Horizon, Intent, and Revel
§ Consistent velocity of products, floorplans,
and technology to continue
§ Implementation of faster, data-driven,
customer-focused product development
INVESTOR DAY 2017
63
KEY STRATEGIES
§ Agile, customer-interactive new product
development process
§ Implementation of multi-generational
product plan
§ New Sales, Inventory, and Operations
Planning (SIOP) process
§ New product-centric organizational
structure in place
§ Bring in experienced leaders from the
outside with significant transferable skills
§ Identify high-potential team members who
can take on more responsibility
§ Empower team to deliver solutions
INVESTOR DAY 2017
64
KEY STRATEGIES
§ Highlight legendary brand attributes
§ Enhance digital customer engagement and
social media presence
§ Facebook Live/virtual product launch
§ Interactive 3D product walkthrough
§ Continue to work on product quality
§ Increase the use of technology to improve
overall customer experience
§ Expand online product and service information
available to customers and channels
§ Reduce wait time for customers and dealer
service teams
PROCESS
IMPROVEMENT
THE PATH FORWARD
INVESTOR DAY 2017
65
INVESTOR DAY 2017
Q&A
66
INVESTOR DAY 2017
LUNCH AND
RV TOURS
67
INVESTOR DAY 2017
OPERATIONS &
MANUFACTURING
68
INVESTOR DAY 2017
CHRIS WEST
VP OPERATIONS
Last Position
§ VP, Operations & Supply Chain, Joy Global
Background
§ 27 years manufacturing experience
§ AGCO, NORDAM Private Jet Interiors
§ MBA, Baker University
§ BS Industrial Operations Management, Northeastern
State University
Focus
§ People
§ Process
§ Culture
69
OPERATIONAL FOOTPRINT
INVESTOR DAY 2017
3.3 million square feet under
roof on 650 acres
Operating factories in 3 states,
7 campuses
3,300 manufacturing employees
Vertically integrated in North
Iowa Motorhome business
Diesel Motorhome MFG
Junction City, Oregon
Class A, B, C Motorhome MFG
North Iowa Region
Towables MFG
Middlebury, IN
70
INVESTOR DAY 2017
71
Grand Design
40% capacity expansion approved, use scale to reduce backlog
Winnebago Towables
$12M capacity expansion approved, execute to plan
Winnebago Motorhomes
Ramp up west coast diesel production, redeploy freed-up North Iowa capacity
CAPACITY EXPANSION PROJECTS
INVESTOR DAY 2017
72
OPERATIONS STRATEGY
E L E V A T E E X C E L L E N C E I N O P E R A T I O N S :
Safe | Fast | Efficient | Flexible | Capable
INVESTOR DAY 2017
73
PERFORMANCE TO DATE
CASES OF PROGRESS:
WINNEBAGO MOTORHOMES
____________________
Estimated savings over past 12 months
ENTERPRISE
THE PATH FORWARD
INVESTOR DAY 2017
74
INVESTOR DAY 2017
DIGITAL
TRANSFORMATION
75
INVESTOR DAY 2017
JEFF KUBACKI
VP AND CHIEF INFORMATION OFFICER
Last Position
§ VP & CIO, Westinghouse Electric
Background
§ 35 years global technology experience
§ ATK, Kroll, Ecolab
§ MBA, University of South Florida
§ Bachelor of Technology, Computer Science, Rochester
Institute of Technology
Focus
§ Digital Transformation
§ Digital Customer Experience
76
TEAM VISION AND POINT OF DEPARTURE
INVESTOR DAY 2017
CIO view of high-performing IT teams
§ Lead digital transformation for the enterprise
§ Enable business strategies
§ Create competitive advantage through
technology
§ Create a data-driven, business intelligence
culture
§ Drive increased employee performance and
productivity
§ Execute a customer 360 engagement strategy
Point of departure
§ Support from Board and CEO to use IT for
competitive advantage
§ ERP project progress not on plan
§ Recognition that IT transformation is needed
§ Lack of process maturity and long-range
strategic thinking
§ IT leadership team gaps
77
KEY ACCOMPLISHMENTS
INVESTOR DAY 2017
78
ALIGNED
IT AND BUSINESS
OBJECTIVES
UPGRADED
IT LEADERSHIP
TEAM
TURNAROUND
ERP
PROJECT
CREATED
CYBER SECURITY
ROADMAP
ADOPTED
LEADING IT
FRAMEWORK
UPGRADED
ORGANIZATIONAL
CAPABILITIES
ERP ROADMAP AND OBJECTIVES
INVESTOR DAY 2017
79
BUSINESS
OPERATIONS
BUSINESS
INTELLIGENCE
DEALER & CUSTOMER
EXPERIENCE
$38M TOTAL COST
FY18-$6M CAP & $4M EXP
DIGITAL TRANSFORMATION VISION
INVESTOR DAY 2017
Engage our customers
Transform our products Optimize our operations
Empower our employees
§ Extreme personalization
§ Social media management
§ Customer sentiment
§ Customer service management
§ Connected products, IoT
§ Predictive analytics
§ Business intelligence
§ Machine learning
§ Personalized collaboration
§ Connected factory
§ Human-machine interfaces
80
INVESTOR DAY 2017
BUSINESS
DEVELOPMENT
81
STRATEGIC PRIORITIES
INVESTOR DAY 2017
82
Expand to New, Profitable Markets5 Growth mandate —Diversification is a priority
INVESTOR DAY 2017
83
BUSINESS DEVELOPMENT FRAMEWORK
PURSUING OPPORTUNITIES TO FUEL GROWTH
INVESTOR DAY 2017
Motorhomes
Towables
Grand
Design
Motorhomes Towables
Motorhomes ?
84
WINNEBAGO INDUSTRIES
RECENT ACQUISITION HISTORY
TYPES OF M&A OPPORTUNITIES
What opportunities are we willing to explore?
§ Superior return on investment
§ Gain scale
§ Consolidation of the RV industry
§ Round out product offerings
§ Gain access to new markets
§ Adjacent products and services
§ Companies with strong positions in industries
with solid growth dynamics
§ Adding key talent
INVESTOR DAY 2017
GROWTH
EXPANSION
§ Consolidation
§ New offerings
§ New markets
TRANSFORMATIVE
§ Portfolio refocus
§ Diversification
85
INVESTOR DAY 2017
86
GROWTH ADJACENCY FRAMEWORK
____________________
Sources: Recreation Vehicle Industry Association; Outdoor Industry Association; Industry news clips; Winnebago analysis
BUSINESS DEVELOPMENT PROCESS/RECENT ACTIVITY
INVESTOR DAY 2017
87
Strategy
Development
Relationship
Development
Opportunity
Evaluation
INVESTOR DAY 2017
CFO UPDATE
88
INVESTOR DAY 2017
BRYAN HUGHES
VP AND CFO
Last Position
§ SVP & Corporate Controller, Ecolab
Background
§ 25 years financial management experience
§ MBA, Ross School, University of Michigan
§ Accounting, Finance, Planning, Business Strategy
Focus
§ Talent/team development
§ Financial discipline with strong tie to business
§ Forward view with eye toward profitable growth
89
WHY I JOINED WINNEBAGO INDUSTRIES
INVESTOR DAY 2017
90
FINANCIAL PERFORMANCE
INVESTOR DAY 2017
$0.10
($2.71)
$0.35 $0.41
$1.54
$1.13
$1.64
$1.52
$1.68
$2.32
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
$604.4
$211.5
$449.5
$496.4
$581.7
$803.2
$945.2 $976.5 $975.2
$1,547.1
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
REVENUE ($M) EARNINGS PER SHARE ($)
91
WGO S&P 500
1-year 64 22
3-year 131 39
5-year 308 102
10-year 88 110
Total Shareholder Returns
TOTAL SHAREHOLDER RETURNS
INVESTOR DAY 2017
92
10-year total shareholder return
-100
-50
0
50
100
150
Oc
t-
07
Ja
n-
08
Ap
r-
08
Ju
l-
08
Oc
t-
08
Ja
n-
09
Ap
r-
09
Ju
l-
09
Oc
t-
09
Ja
n-
10
Ap
r-
10
Ju
l-
10
Oc
t-
10
Ja
n-
11
Ap
r-
11
Ju
l-
11
Oc
t-
11
Ja
n-
12
Ap
r-
12
Ju
l-
12
Oc
t-
12
Ja
n-
13
Ap
r-
13
Ju
l-
13
Oc
t-
13
Ja
n-
14
Ap
r-
14
Ju
l-
14
Oc
t-
14
Ja
n-
15
Ap
r-
15
Ju
l-
15
Oc
t-
15
Ja
n-
16
Ap
r-
16
Ju
l-
16
Oc
t-
16
Ja
n-
17
Ap
r-
17
Ju
l-
17
Oc
t-
17
S&P 500 Winnebago
110%
88%
____________________
Note: Assumes dividends are reinvested in the underlying stock at the time of receipt. As of October 24, 2017
85%
15%
< 60% appreciation
92%
9%
< 60% appreciation
ONE YEAR RETURNS
INVESTOR DAY 2017
93
S&P 600 Small Cap
S&P 400 Mid Cap
____________________
Source: FactSet; 10/24/2007 – 10/24/2017
One year stock price returns
Winnebago’s stock has meaningfully outperformed the S&P 400 and 600 indices over the past year.
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
60%
70%
Oc
t-
16
No
v-
16
De
c-
16
Ja
n-
17
Fe
b-
17
Ma
r-
17
Ap
r-
17
Ma
y-
17
Ju
n-
17
Ju
l-
17
Au
g-
17
Se
p-
17
Oc
t-
17
S&P 400 Mid Cap Index S&P 600 Small Cap Index Winnebago
19%
64%
23%
COST STRUCTURE
INVESTOR DAY 2017
94
*
____________________
All figures are expressed as a ratio to sales and are for the full financial year 2017
*This is a non-GAAP measure. Please refer to the Appendix of this presentation for important disclosures.
RETURN ON INVESTED CAPITAL (ROIC)
INVESTOR DAY 2017
95
ROIC (%)
4.2%
4.7% 4.6%
2015 2016 2017
4.8X 4.6X
3.4X
2015 2016 2017
20.0%
21.5%
15.6%
2015 2016 2017
RETURN ON SALES (%) = NET INCOMEREVENUE ASSET TURNS = REVENUEINVESTED CAPITAL
CASH FLOW TO FUEL GROWTH
INVESTOR DAY 2017
96
FREE CASH FLOW ($M)*
($18.1)
$4.8
$31.2
($12.2)
($2.1)
$5.8
$12.8
$28.6 $28.2
$83.1
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
____________________
*This is a non-GAAP measure. Please refer to the Appendix of this presentation for important disclosures.
CAPITAL ALLOCATION
INVESTOR DAY 2017
A strong balance
sheet to execute
growth strategies
n Strong cash flow to fund
growth opportunities
n Use the balance sheet to
fund value-add M&A
opportunities
n Prioritize deals with
synergies
Optimize
the capital
structure
n Pay down debt to achieve
an optimal capital structure
and leverage ratio
n Target a capital structure
that is sustainable in a
cyclical business
Return excess
cash to
shareholders
n Prioritize growth
opportunities as “first use” of
excess cash
n Predictable and
dependable ordinary
dividends
n Share repurchases as
additional valve to use for
purposes of returning cash to
shareholders
Ensure that
liquidity is
adequate
n Current liquidity is lower
than eventual target level
due to de-leveraging strategy
post-acquisition
n Maintain liquidity to both
protect against downturns
and provide opportunities for
growth
n Opportunity to restructure
borrowing facilities during
FY18 will provide flexibility
97
CAPITAL SPENDING
INVESTOR DAY 2017
98
0.6%
1.6%
0.4% 0.4% 0.4%
0.6%
1.1%
1.7%
2.5%
0.9%
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
CAPITAL EXPENDITURE % OF REVENUE
INVESTMENTS
INVESTOR DAY 2017
99
Investing for
GROWTH in 2018!
INVESTOR DAY 2017
Motorhomes
Towables
Grand
Design
Motorhomes Towables
Motorhomes ?
100
WINNEBAGO INDUSTRIES
RECENT ACQUISITION HISTORY
$9.1
$274.5
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
DEBT
INVESTOR DAY 2017
101
DEBT ($M)
GRAND DESIGN
ACQUISITION
DEBT LEVERAGE RATIO
INVESTOR DAY 2017
2017
3.0
0
1.8
ON-GOING
(TARGET)
1.5
0.9
1.2
Net Debt to EBITDA
102
DIVIDENDS
INVESTOR DAY 2017
PAYOUT RATIO
(AS A % OF NET INCOME)
25%
15%
23.8% 2016
23.6% 2015
17.3% 2017
25%
15%
20.5% 2016
21.6% 2015
15.2% 2017
AS A % OF FCF* LESS
DEBT PAYMENTS
50%
30%
38.4% 2016
34.1% 2015
+++ 2017
103
____________________
*This is a non-GAAP measure. Please refer to the Appendix of this presentation for important disclosures.
AS A % OF CASH FROM OPERATIONS
SHARE REPURCHASE
INVESTOR DAY 2017
104
$70M Share
Repurchase
Authorization
approved, as
announced during our
Q4 2017 Earnings
Release
Prior authorization for
$60M was approved
December 19, 2007
We will consistently
buy shares to avoid
dilution from
employee stock
programs
We will utilize
repurchase programs
when cash
accumulates and
there are no imminent
investments/M&A
We are
optimistic about
our investment
opportunities
over the long
term, and our
ability to
generate
positive returns
History:
Purpose:
INVESTOR DAY 2017
105
STEVE STUBER
DIRECTOR OF FP&A and IR
Last Position
§ Finance Director, North American Retail Analytics, General Mills
Background
§ 27 years Accounting and Finance experience
§ Roles: Plant Controller (2), Financial Operations (multiple),
International
§ MBA, Kellogg School of Management, Northwestern University
§ BA Business, Accounting Emphasis, University of St. Thomas
§ CPA
Focus
§ Results
§ Collaboration
§ Innovation
INVESTOR DAY 2017
CEO CLOSING
106
STRONG STARTING POINT
INVESTOR DAY 2017
107
§ WGO Board is engaged and supportive of the leadership team.
§ We are optimistic about short-term cycle sustainment, and we are excited about
longer-term secular demand around outdoor lifestyle.
§ We have a stronger “compass” in terms of strategic vision and priorities.
§ Our financial health is solid and can continue to improve. Just as interested in
bottom line as we are the top line. Capital allocation priorities in place and aligned
with the Board.
CASE FOR CHANGE
INVESTOR DAY 2017
108
The Case
for Change
§ Board, employee, customer,
channel and investor feedback
§ Begin independent
assessments (Brand + Operations)
2017 Bridge§ Ensure major initiatives have traction
(ERP, WCO, Productivity)
§ Acquire and integrate Grand Design RV
§ Accelerate Winnebago Towables growth
§ Stabilize Motorhome business and re-
establish credibility with Dealers
§ Finalize ELT/KLC composition
§ Seed strategic planning framework & requirements
§ Build initial 3-year Long Range Plan
§ Generate New Business Development targets
§ Remake ELT and evolve organizational design
§ Establish a MSP presence to build upon
§ Make the Quarters to begin funding change
Staging the
Organization
§ Establish BHAGs (market, financial, cultural)
§ Campaign 2020 employee-driven initiative
2020
Initiative
§ Engage key employees to craft new Winnebago vision
§ Cascade vision through new communication protocol
Setting a
Vision
LRP + NBD
TEAMS FOCUSED ON EXECUTING STRATEGY
INVESTOR DAY 2017
109
Capable leaders and
focused teams
§ Grand Design RV: Take to
next level
§ Winnebago Towables:
Re-Launch
§ Winnebago Motorhomes:
Turnaround
Focused on adding value
to the businesses
§ Unleashing a superior
experience for the end
customer
§ Profitability for our dealers
§ Financial value for our
shareholders
Actively framing
possibilities
§ Strategic, financial, and
cultural fit
§ Lenses to evaluate industry
candidates
§ We will be very selective
BUSINESS UNITS SUPPORT FUNCTIONS BUSINESS DEVELOPMENT
FY2020 GOALS
INVESTOR DAY 2017
110
CULTURE &
PARTICIPATION
FY2020 GOALS: MARKET SHARE
INVESTOR DAY 2017
111
3%
10+%
2016 FY2020Unit Market Share of North
American market 10+% at the
end of FY2020 from 3% at the
end of FY2016.
UNIT MARKET SHARE
FY2020 GOALS: OPERATING INCOME
INVESTOR DAY 2017
112
8.1%
10%
2016 FY2020
OPERATING INCOME
Operating Income 10% at the
end of FY2020.
FY2020 GOALS: NEW BUSINESS
INVESTOR DAY 2017
113
10% of FY2020 Revenue will
come from RV segments or
businesses we aren’t in today.
FY2020 GOALS: CULTURE & PARTICIPATION
INVESTOR DAY 2017
114
CULTURE &
PARTICIPATION
Every employee will be asked
to engage in an activity
related to one of the
following every year:
§ Safety
§ Quality
§ Productivity
§ Giving
INVESTOR DAY 2017
Q&A
115
FUTURE INVESTOR EVENTS
INVESTOR DAY 2017
116
November 29, 2017 RVIA National RV Trade Show Louisville, Kentucky
December 12, 2017 Annual Shareholder Meeting Forest City, Iowa
December 15, 2017 FY2018 Q1 Conference Call
THANK YOU
INVESTOR DAY 2017
117
Thank you for attending the Winnebago Industries
Investor Day. An archive of the presentation will be
available on our website at investor.wgo.net.
Sam Jefson
Public Relations Specialist
641-585-6803
sjefson@winnebagoind.com
Steve Stuber
Director of FP&A and IR
952-828-8461
srstuber@winnebagoind.com
118
WinnebagoInd.com
APPENDIX
INVESTOR DAY 2017
119
Non-GAAP Reconciliation
We have provided the following 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 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 SEC filings,
including the company’s 10-k filings, incorporated by reference herein. The non-GAAP financial measures presented below may differ from similar measures
used by other companies.
The following table reconciles net
income to consolidated Adjusted
EBITDA for Fiscal 2017; in $’s.
Net Income $71.3
Interest expense 16.8
Provision for income taxes 37.3
Depreciation 7.3
Amortization 24.7
EBITDA 157.4
Postretirement health care benefit income (24.8)
Transaction costs 6.6
Non-operating income (0.3)
Adjusted EBITDA $ 138.9
As a % of sales 9.0%
APPENDIX CONTINUED
INVESTOR DAY 2017
120
The following table reconciles net cash provided by operating activities to free cash flow for fiscal 2008-2017; in $’s.
Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance and trends as well as our
performance relative to competitors and peers that publish similar measures; (b) to measure operational profitability on a consistent basis; (c) in
presentations to the members of our board of directors to enable our board of directors to have the same measurement basis of operating performance as
is used by management in their assessments of performance and in forecasting and budgeting for our company; and, (d) to evaluate potential acquisitions.
We believe these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in
our industry.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net cash provided by operating activities $(14.4) $8.3 $33.0 $(10.1) $0.1 $10.2 $23.2 $45.2 $52.7 $97.1
Purchases of property and equipment 3.7 3.5 1.9 2.1 2.2 4.4 10.5 16.6 24.6 13.4
Free cash flow $(18.1) $4.8 $31.2 $(12.2) $(2.1) $5.8 $12.8 $28.6 $28.2 $83.1