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NYSE: MNC

M ONACO C OACH C ORPORATION. NYSE: MNC. Second Quarter 2003. Safe Harbor Statement.

RexAlvis
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NYSE: MNC

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  1. MONACO COACH CORPORATION NYSE: MNC Second Quarter 2003

  2. Safe Harbor Statement • This presentation may contain certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to vary from those projected. Such risks and uncertainties include, but are not limited to, those listed in the Company’s form 10-K and form 10-Q. These documents can be accessed at www.monaco-online.com or www.sec.gov.

  3. Company Overview • Leading Manufacturer of Recreational Vehicles • Number One Diesel Manufacturer • Six Premium Brands • Monaco, Holiday Rambler, Beaver, Safari, McKenzie and Royale Coach • Manufacturing in Indiana and Oregon • 2002 Sales Data • 11,211 Units • $1.22B Revenue

  4. Company Milestones • 1987: Current Management in Place • 1993: Initial Public Offering • 1996: Holiday Rambler Acquisition • 1997: Secondary Offering • 1998: April 3 for 2 Stock Split • 1998: November 3 for 2 Stock Split • 1999: July 3 for 2 Stock Split • 2001: SMC Corporation Acquisition • 2001: September 3 for 2 Stock Split

  5. Revenue Breakdown (Approximate)

  6. Class A Motorhome Market Retail Sales July 2003 YTD Approx. Market Size = $4.5 billion

  7. Diesel Motorhome Market Retail Sales July 2003 YTD

  8. Gasoline Motorhome Market Retail Sales July 2003 YTD

  9. Class C Motorhome Market Retail Sales June 2003 YTD Approx. Market Size = $745 million

  10. Towable Market Retail Sales June 2003 YTD Approx. Market Size = $3.3 billion

  11. Customer Profile • Lifestyle Decision, Planned Purchase • Very High Level of Commitment • Very Brand Loyal • 24,500 Club Member Families • Rallies, Caravans, Events • Mostly Retired or Semi-Retired • Average Consumer Will Own 3-5 RVs • Average Consumer Trades Every 3-5 Years • Consumer Base Undergoing Positive Changes • Industry-wide Media Campaign Fuels RV Awareness

  12. Target Market Growth U.S. Population Growth 2000-2010 Source: U.S. Census Bureau

  13. Retail Dealer Profile • Independent Retail Dealers • North America • Shared with Competitors • Importance of “Shelf-Space” • Not All MNC Dealers Carry All MNC Products • Dealers Specialize • Few “Full-Line” Dealers • Multi-brand Approach Increases Market Penetration • Dealers Finance Inventory

  14. Retail Distribution Growth Retail Dealership Locations

  15. Product Driven Industry • Responsive to Customer & Dealer Feedback • Creates Enthusiasm & Drives Repeat Purchases • Company-Wide Focus and Discipline • Senior Management Attention • Roadmaster Chassis • Greater design flexibility; enhanced performance • Alumaframe Construction • Lighter weight; greater durability • Floorplan Design

  16. Expanded Product Offerings DIESEL CLASS A MOTORCOACHES: Retail Price PointMonacoHoliday RamblerBeaver/Safari $600,000 – 1.1M Royale Coach $445,000 – 535,000 Signature SeriesMarquis $335,000 – 420,000 ExecutiveNavigatorPanther $295,000 – 360,000 DynastyPatriot $255,000 – 295,000 ImperialContessa $215,000 – 270,000 WindsorZanzibar $210,000 – 240,000 CamelotScepterMonterey $155,000 – 210,000 DiplomatEndeavor - DieselSantiam/Sahara $135,000 – 170,000 KnightAmbassadorBaron/Cheetah $115,000 - 130,000 CaymanNeptune

  17. Expanded Product Offerings GASOLINE CLASS A and CLASS C MOTORCOACHES: Retail Price PointMonaco/McKenzieSafari/Holiday Rambler $95,000 – 120,000 LaPalmaVacationer $85,000 – 110,000 Trek/Traveler $75,000 – 105,000 MonarchAdmiral $65,000 – 75,000 RogueAtlantis TOWABLES: Retail Price PointMcKenzieHoliday Rambler $40,000 – 65,000 Medallion Fifth Wheel $40,000 – 55,000 Presidential Fifth Wheel $40,000 – 45,000 Presidential Travel Trailer $30,000 – 50,000 Lakota Fifth WheelAlumascape Fifth Wheel $30,000 – 40,000 Dune Chaser Toy HaulerNextLevel Toy Hauler $25,000 – 35,000 Lakota Travel TrailerAlumascape Travel Trailer

  18. Production Capacity Units/Week Motorized199619971998CurrentUtilization Indiana 57 80 115 125 85 Oregon 12 12 15 140 59 TOTAL 69 92 130 265 144 Towable199619971998CurrentUtilization Indiana* 55 85 70 130 55 Oregon 0 10 25 0 0 TOTAL 55 95 95 130 55 Current Utilization (units) = Approx. 50% 100% Utilization = Approx. $1.6 - $1.7B Revenue *Towable Plant Capacity Expanded July 2003

  19. Revenue Growth $ in millions FY03E = $1.1B

  20. Key Ratios As a % of Revenue Gross Margin SG&A Operating Margin Q203 Gross Margin = 10.2% SG&A = 9.6% Operating Margin = .6% Q303E Gross Margin = 10.5%-11% SG&A = 8.75-9.25% Operating Margin = 1.25%-2.25

  21. Earnings Per Share Q303E = $.8 FY03E = $.36

  22. Current Outlook • Retail Sales Beginning to Improve • Total Class A Market Up 8.5% July ‘03 vs. July ‘02 • Up 7.9% YTD • Reduced Overall Production Levels • More Closely Align Production with Demand • Work Down Finished Goods Inventory • Balance Sheet • Current Debt Approximately $85M • $103M at Year-end 2002 • Estimate $60 by Year-end 2003 • Estimate $33M Cash from Operations in 2003 • Estimate $20M Cap Ex in 2003 • Excellent Industry Fundamentals • Demographics, Leisure Travel Preferences

  23. MONACO COACH CORPORATION www.monaco-online.com (800) 634-0855 NYSE:MNC

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