Malibu Boats, Inc.Investor Presentation - ICR

January 2016

Safe Harbor Statement

This presentation includes “forward-looking statements,” within the meaning of the U.S. Securities Act of 1933, as amended and the U.S. Securities Act of 1934, as amended. All statements in this presentation that are not purely historical, including, without limitation, statements regarding Malibu Boats, Inc.’s (“Malibu Boats”) intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information and include, without limitation, statements regarding our future financial condition and results of operations, business strategy and plans and objectives of management for future operations. Forward-looking statements can be identified by such words and phrases as “believes,” “anticipates,” “expects,” “intends,” “estimates,” “may,” “should,” “continue,” and similar expressions, comparable terminology or the negative thereof.

All forward-looking statements involve risks and uncertainties including, but not limited to, the risk that Malibu Boats will not beable to grow its market share in the performance sport boat industry, successfully introduce new products, meet it’s outlook targets and obtain its expected results from the acquisition of its Australian licensee. It is important to note that Malibu Boats’ actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, general economic conditions, demand for Malibu Boats’ products, changes in consumer preferences, competition within our industry, reliance on a network of independent dealers, Malibu Boats’ ability to manage its manufacturing levels and large fixed cost base, the successful introduction of new products and other factors. Many of these risks and uncertainties are outside Malibu Boats’ control, and there may be other risks and uncertainties which Malibu Boats does not currently anticipate because they relate to events and depend on circumstances that may or may not occur in the future. Malibu Boats’ business could be affected by a number of other factors, including the risk factors listed from time to time in Malibu Boats’ SEC reports including, but not limited to, the Annual Report on Form 10-K for the year ended June 30, 2015. These risks, assumptions and uncertainties are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Malibu Boats can give no assurance that its expectations will be achieved. Malibu Boats cautions investors not to place undue reliance on the forward-looking statements contained in this presentation. All forward-looking statements that we have included in this presentation are based on information available to us on the date of this presentation. Malibu Boats disclaims any obligation and does not undertake to update or revise any forward-looking statements in this presentation. Comparison of results for current and prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

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Use and Definition of Non-GAAP Financial Measures

This presentation includes the following financial measures defined as non-GAAP financial measures by the SEC: Adjusted EBITDA, adjusted EBITDA Margin, Adjusted Fully Distributed Net Income, and Free Cash Flow (“FCF”). These measures have limitations as analytical tools and should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our liquidity. Our presentation of these non-GAAP financial measures should also not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of these non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

We define Adjusted EBITDA as earnings (loss) before interest expense, income taxes, depreciation, amortization and non-cash, non-recurring and non-operating expenses, including management fees and expenses, certain professional fees and litigation related settlement expenses, acquisition and integration related expenses, non-cash compensation expense and offering related expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales. Management believes Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow management to evaluate our operating performance and compare the results of our operations from period to period and against ourpeers without regard to our financing methods, capital structure and non-recurring and non-operating expenses. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, the methods by which assets were acquired and other factors.

We define Adjusted Fully Distributed Net Income (“AFDNI”) as net income attributable to Malibu Boats, Inc. (i) excluding income tax expense, (ii) excluding the effect of non-recurring and non-cash items, (iii) assuming the exchange of all Units (“LLC Units”) of Malibu Boats Holdings, LLC (the “LLC”) into shares of Class A common stock, which results in the elimination of noncontrolling interest in the LLC, and (iv) reflecting an adjustment for income tax expense on fully distributed net income before income taxes (assuming no income attributable to non-controlling interests) at our estimated effective income tax rate. AFDNI is a non-GAAP financial measure because it represents net income (loss) attributable to Malibu Boats, Inc., before non-recurring or non-cash items and the effects of noncontrolling interests in the LLC. We use AFDNI to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting our business than GAAP measures alone. We believe AFDNI assists our board of directors, management and investors in comparing our net income (loss) on a consistent basis from period to period because it removes non-cash and non-recurring items, and eliminates the variability of noncontrollinginterest as a result of member owner exchanges of LLC Units into shares of Class A Common Stock.

We define Free Cash Flow as adjusted EBITDA less capital expenditures. We believe FCF is a useful measure to describe our financial performance and it measures our ability to generate excess cash from our business operations.

A reconciliation of our net income (loss) as determined in accordance with GAAP to Adjusted EBITDA, Adjusted EBITDA Margin and FCF and of our net income (loss) attributable to Malibu Boats, Inc. to AFDNI is provided in the appendix to these slides.

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COMPANY OVERVIEW

4The All-New Malibu 25 LSV

Investment Highlights

At IPO - February 2014 December 2015•#1 Market Share in Performance Sport Boats •Still #1 Market Share at approximately 32%; 1,100+ bps vs.

closest competitor

•Poised to Take Advantage of the Boating Market Recovery •Boat market has recovered another >10% with Malibu

participating at market share rate

•Performance Sport Boats Taking Share •Performance Sport Boats up double digits, sterndrive down year-over-year

•Industry-Leading Product Development and Innovation •MY16 has 4 all new boats and new features including: Rider control with Surf Band for Surf Gate, premium interior, new windshields and backup camera

•Strong Dealer Network •Dealer Network continues to differentiate us from our competition

•Two Highly Recognized Brands •Malibu maintains #1 market share position and Axis Brand has achieved #4 rank

•Compelling Margins and Cash Flow •Continued strong margin and cash flow performance

•Multiple Growth Opportunities •Execution of tack-on acquisition and additional vertical integration

•Highly Experienced Management Team with Proven Track Record •Continued Top-grading of staff in engineering and

management, adding depth

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Malibu: Growth Company with Seven Straight Quarters of Performance Since IPO

NET SALES ($MM)(1)

ADJUSTED EBITDA ($MM)(1)(2)

1. FYE June 30; F1Q ended Sep. 30th.

2. See Appendix for a reconciliation of Adjusted EBITDA to net income.6

Broad, Differentiated Product Offering

Length 20 – 25 ft.8 Models

Premium Performance / Recreational Boats

Retail Price $45K – $85K

Length 20 –24 ft.

5 Models

Entry Performance / Recreational Boats

Length 20 – 21 ft.3 Models

Retail Price $40K – $75KTournament Quality Ski Wake

Ski Boats

Retail Price $60K – $180K

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INVESTMENT HIGHLIGHTS

Launched in 2009

9

In the Early Stages of the Market Recovery

• U.S. performance sport boat

sales grew 18% in 2014

• 2014 sales remained 39% below

average annual new unit sales

volume between 2001 and 2007

and 46% below the new units

sold at the market peak in 2006

NEW UNIT U.S. PERFORMANCE SPORT BOAT RETAIL SALES

Source: 2001 to 2014 data is from the NMMA, 2015 data is a management estimate. 9

Performance Sports Boats Taking Share

Performance sport boats are capturing meaningful market share within the powerboat segment and the sterndrive category in particular • U.S. performance sport

boat sales continue to

grow meaningfully. The

sterndrive market

continues to struggle as

the utility of performance

sport boats increases

driven by the growth in

the popularity of

wakesurfing.

10Source: 2001 to 2014 data is from the NMMA, 2015 data is a management estimate

Market Share

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#1 U.S. PERFORMANCE SPORT BOAT MARKET SHARE SIGNIFICANT SHARE GAINS FROM COMPETITORS

Other

Source: SSI through Dec 31, 2014.

• Leading U.S. performance sport boat market share from 2010 – 2015

• Positions us to capture new boat buyers as the economy strengthens

• Capturing market share from our closest competitors through our innovative and diverse product offering

• Key performance sport boat manufacturers have remained relatively stable – making market share gains even more impressive

Market Segmentation Analysis

12

• We believe the premium segment accounts for approximately 75% of market size• Represents the largest

market share opportunity• Is the emphasis of Malibu’s

new product introductions for Model Year 2016

• Premium segment represented ~55% of the annual dollar growth

Model Year 2016 Target Markets

• Malibu has introduced 4 new boats for MY2016

• All 4 models address significant market share opportunities

• TARGETMalibu has a 0% market share in the super premium segment where we recently introduced the new M235

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Target

Target

2 New Models for MY2016Axis A20 and Malibu 20 VTX

1 New Model for MY2016 Malibu 25 LSV

Source: SSI  through Dec. 31, 2014.

The New Malibu M235

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We believe we are the industry leader in operational excellence……and our financial performance proves it

• Competitive prices • Results in value for dealers = strong business model• Delivers value to end customers

• Significant vertical integration• In-house machine shop which produces towers, board racks and other billet & stainless parts • Successfully vertically integrated trailers in FY2016

• Efficient Labor• Low number of employees per unit count despite significant vertical integration

• Leading product innovation with four new models per year and innovative, Malibu exclusive features

The results are excellent margins, high quality products and maximum efficiency

Operational Excellence

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16FINANCIAL OVERVIEW

Proven Performance

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NET SALES ($MM)(1)

ADJUSTED EBITDA ($MM)(1)(2)

1. FYE June 30; F1Q ended Sep. 30th.2. See Appendix for a reconciliation of Adjusted EBITDA to net income.

• AFDNI per share grew 42% from fiscal year 2014 to 2015

• Q1 2016 AFDNI was 32% higher than Q1 2015

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Adjusted Fully Distributed Net Income (AFDNI)

Free Cash Flow

19

• Strong free cash flow generation is a result of healthy operating margins and low capital requirements (recurring CapEx ~2% of sales)

• Highly efficient working capital cycle

87% 91% 84% 86% 88% 81% 86%FCF% of Adjusted EBITDA

1. FYE June 30; F1Q ended Sep. 30th.2. See Appendix for a reconciliation of Free Cash Flow to net income.

FREE CASH FLOW ($MM)(1)(2)

Long-Term Performance Targets

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METRIC TARGET

Revenue Growth 10% +

Adjusted EBITDA Margin 20% +

Long-Term EPS Growth 15% +

BEST-SELLING 23-FOOT PERFORMANCE SPORT BOAT IN THE HISTORY OF THE INDUSTRY

APPENDIX

Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow (Unaudited):

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  Net (Loss) Income 11,106$       17,984$       (1,188)$        23,183$       2,389$             3,980$             24,774$                  

  (Benefit) Provision for Income Taxes ‐               ‐               (2,220)          8,663           907                  1,986               9,742                      

  Acquisition and Integration Related Expenses ‐               ‐               ‐               1,676           397                  330                  1,609                      

  Interest Expense 1,433           1,334           2,962           954              9                      1,316               2,261                      

  Depreciation & Amortization 6,072           6,268           6,777           4,890           1,267               1,322               4,945                      

  Severance &  Relocation 181              192              ‐               ‐               ‐                  ‐                  ‐                          

  Management Fees & Expenses 87                2,896           4,584           ‐               ‐                  ‐                  ‐                          

  Professional Fees & Nautique Litigation 852              2,957           2,219           2,654           2,551               170                  273                         

PCMW Litigation Settlement ‐               ‐               20,000         ‐               ‐                  ‐                  ‐                          

  Non‐cash Compensation Expenses 132              127              2,577           1,467           487                  340                  1,320                      

  Offering Related Expenses ‐               ‐               1,561           161              44                    ‐                  117                         

  Adjusted EBITDA 19,863$       31,758$       37,272$       43,648$       8,051$             9,444$             45,041$                  

  % Margin 14.1% 19.0% 19.5% 19.1% 16.9% 16.5% 18.9%

  Capital Expenditures (2,651)          (2,878)          (5,915)          (5,366)          (1,465)             (1,287)             (5,188)                     

  Free Cash Flow 17,212$       28,880$       31,357$       38,282$       6,586$             8,157$             39,853$                  

Fiscal Year Ended June 30, Three Months Ended Sept 30, Twelve Months Ending September 

30, 2015  ($ in millions) 2012 2013 2014 2015 2014 2015

Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited):

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Net income attributable to Malibu Boats, Inc.

Income Tax Provision

Professional fees 1

Acquisition and integration related expenses 2

Fair market value adjustment for interest rate swap 3

Stock based compensation expense 4

Offering related expenses 5

Net income attributable to non‐controlling interest 6

Fully distributed net income before income taxes

Income tax expense on fully distributed income before income taxes 7

Adjusted Fully Distributed net income

Adjusted Fully Distributed Net Income per share of Class A Common Stock 8:

Basic

Diluted

Weighted average shares of Class A Common Stock outstanding used in computing Adjusted Fully Distributed Net Income 9:

Basic

Diluted

 $                                         1,380 

 $                                              0.25 

 $                                              0.25 

 $                                            0.19 

 $                                            0.19 

19,348,424 22,502,031

19,348,424 22,502,031

2,614  2,439 

 $                                           4,749   $                                         4,336 

422  1,009 

7,363  6,775 

340  487 

— 44 

170  2,551 

557  —

330  397 

 $                                           3,558 

Three Months Ended September 30,

2015 2014

1,986  907 

Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited):

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(1) Represents legal and advisory fees related to our intellectual property litigation with Pacific Coast Marine Windshields Ltd., Nautique Boat Company, Inc., and MasterCraft Boat Company, LLC.

(2) Represents legal and advisory fees as well as integration related costs incurred in connection with ongoing and completed acquisition activities, including our acquisition of Malibu Boats Pty. Ltd. completed on October 23, 2014.

(3) Represents the loss on the change in the fair value of our interest rate swap entered into on July 1, 2015.(4) Represents equity-based incentives awarded to certain of our employees under the Malibu Boats, Inc. Long-Term Incentive Plan and profit

interests issued under the previously existing limited liability company agreement of the LLC. (5) For the three months ended September 30, 2014, this represents legal, accounting and other expenses directly related to our follow on offering

that closed on July 15, 2014. There were no such offerings for the three months ended September 30, 2015.(6) Reflects the elimination of the non-controlling interest in the LLC as if all LLC members had fully exchanged their LLC Units for shares of Class

A Common Stock.(7) Reflects income tax expense at an estimated normalized annual effective income tax rate of 35.5% and 36.0% of income before income taxes

for the three months ended September 30, 2015 and 2014, respectively, assuming the conversion of all LLC Units into shares of Class A Common Stock and the tax impact of excluding offering related expenses. The estimated normalized annual effective income tax rate is based on the federal statutory rate plus a blended state rate adjusted for deductions under Section 199 of the Internal Revenue Code of 1986, as amended, state taxes attributable to the LLC, and foreign income taxes attributable to our Australian based subsidiary.

(8) Adjusted fully distributed net income divided by the shares of Class A Common Stock outstanding in (9) below.(9) Represents the weighted average shares outstanding during the applicable period calculated as (i) the weighted average shares outstanding

during the applicable period of Class A Common Stock, (ii) the weighted average shares outstanding of LLC Units held by non-controlling interests assuming they were exchanged into Class A Common Stock on a one-for-one basis and (iii) the weighted average fully vested restricted stock units outstanding during the applicable period that were convertible into Class A Common Stock and granted to directors for their services. For the three months ended September 30, 2015 we had 17,882,085 shares of Class A Common Stock outstanding, 1,404,923 remaining LLC Units not held by the Company outstanding and 73,374 fully vested restricted stock units outstanding. For the three months ended September 30, 2014, we had 15,436,944 shares of Class A Common Stock outstanding, 7,001,844 remaining LLC Units not held by the Company, and the 63,243 fully vested stock units outstanding.