2017 ANNUAL REPORT A LEADER IN VEHICLE MANUFACTURING CEO MESSAGE Dear Fellow REV Shareholders: Our first year as a publicly traded company was both exciting and eventful. Notwithstanding the work involved in executing both our initial public offering and follow-on equity offerings in fiscal 2017, we set a high performance bar for growth and we achieved virtually all of our goals during the year. Our very successful IPO in January priced at $22 per share, $1 above our original range. In October we completed a highly successful follow- on equity offering of 11.5 million shares. Our equity offerings were well received by the markets, both being significantly oversubscribed. As stated, we set high growth goals for the year and other than falling slightly below our aggressive revenue projections, we exceeded all other goals. We achieved a 32% increase in adjusted EBITDA[1] on sales growth of 18%. This was the second year in a row of achieving these impressive TIM SULLIVAN growth targets. REV Group, Inc., President and CEO We introduced seventeen new products in the year. This was a new record for REV. Clearly it is important in any vehicle market to refresh your product lines continually, however, no other specialty vehicle manufacturer has come close to this level of new vehicle offerings. 2 2017 ANNUAL REPORT REVG INITIAL PUBLIC OFFERING We purchased four companies during the year. We acquired country. We partnered with Ryder to expand our service footprint Renegade recreational vehicles in late December; Ferrara fire for shuttle buses at several Ryder service locations in the U.S. We apparatus in April; Midwest Automotive Designs luxury vans and continued the centralization of our spare parts business as well as Class B recreational vehicles also in April and last but certainly the establishment of an extensive parts database and world class not least AutoAbility rear-entry mobility vans in September. All on-line parts ordering system. We also established five new parts companies purchased provide us with new additions to our warehouses across the country. Finally, we became the first OEM existing and well established product lines. All acquisitions were ever to be qualified by Ford Motor Company to sell genuine Ford highly accretive with valuations well within our normal discerning parts in collaboration with Ford dealers. ranges. We advanced our efforts to synergize our various locations We began a meaningful entry into the international markets with the implementation of a universal ERP system. At the end of with the opening of our new plant in Sorocaba, Sao Paolo, Brazil fiscal 2017 approximately 40% of all transactions were managed in May. This location will serve as our base of operations for all of through our new SAP IV HANA system. Latin America. Our Brazilian plant introduced 29 new prototypes It is our intention to set the bar high again in fiscal 2018 as we to the market in May and we began manufacturing ambulances, drive towards our goal of achieving a minimum of 10% EBITDA police cars and police motorcycles in June. Our production margins across our entire product portfolio. This will be achieved is ramping up quickly and we expect this new start-up to be as we also continue to grow our company aggressively both profitable in 2018. organically and inorganically over the next several years. We continue to invest in our aftermarket infrastructure as a Thank you for your confidence in our management team as we company. We made significant investments in existing and new continue our dedication to creating maximum shareholder value. regional technical centers that now total 17 locations across the 2017 ANNUAL REPORT 3 ONE COMPANY 29 BRANDS 250,000+ VEHICLES STRONG 4 2017 ANNUAL REPORT SEGMENT: FIRE AND EMERGENCY TYPE I, TYPE II AND TYPE III Ambulances Aerials, Pumpers, Tankers, Industrial, Wildland and Rescue Fire Apparatus NET SALES OVERVIEW $984 STRATEGY $ Full portfolio of ambulances 768 $ and custom fire apparatus Expanding and leveraging $568 620 regional technical centers Protecting life around the clock and around the world New product development Diverse portfolio of vehicles, each Maintain and grow status: distinctly positioned to target #1 in Ambulance, FY14 FY15 FY16 FY17 specific customer requirements #2 in custom Fire apparatus ($’s in millions) and price points Drive aftermarket growth 2017 FINANCIALS Gain market share KEY ACHIEVEMENTS Strengthen dealer coverage NET SALES Product Launches: $ across geographical regions $ 318 - REV Flex and REV Flex Duo 262 and customer types - Launch of Frontline $219 $185 - E-ONE 100’ Metro Quint Broadest portfolio of Fire and Ambulance products Leading market share in Fire and Ambulance Work with channel partners to connect to users to understand The world’s largest the direction of our markets ambulance manufacturer Q1 Q2 Q3 Q4 Excellent safety record ($’s in millions) Comprehensive product offering Leading multi brand portfolio % % Top tier customers 2 1 97% United States Canada International 2017 ANNUAL REPORT 5 SEGMENT: COMMERCIAL Transit, Shuttle, School and Paratransit Buses Mobility Vans, Sweepers, Terminal Trucks NET SALES OVERVIEW STRATEGY Manufacturing vehicles that New offerings targeting affordability $ $ 702 $679 654 $620 deliver extreme comfort, with financing and rental safety and alternative New product development fuel solutions Standardize product portfolios #1 in Type A school bus, #1 small to increase leverage and improve & medium commercial bus profitability FY14 FY15 FY16 FY17 Leader in Transit Bus, Terminal Trucks Gain market share ($’s in millions) and Sweepers Enhance distribution channels and Long standing legacy brands national account coverage 2017 FINANCIALS Passenger safety, quality, Pursue export opportunities in NET SALES and accessibility select international markets $176 $ Drive aftermarket growth 160 $154 KEY ACHIEVEMENTS $130 Collins celebrates 50th anniversary ElDorado National California (ENC) wins LA County transit bus contract New product introductions: - Champion introduces the Q1 Q2 Q3 Q4 Low Floor Shuttle Bus ($’s in millions) - ENC Introduces Axess fuel-cell bus - Capacity introduces Volvo Penta engines 3% 1% - LayMor introduces Sweepmaster 450 - Revability introduced first ever hybrid wheelchair accessible van ElDorado Mobility acquires AutoAbility and rebrands to one brand Revability 96% United States Canada International 6 2017 ANNUAL REPORT SEGMENT: RECREATION Class A, Class B and Class C Recreation Vehicles and enclosed trailers NET SALES OVERVIEW STRATEGY Portfolio of industry Appealing to new $660 leading RV brands market segments $499 $ $ 478 Most iconic RV brands New product and model 413 in the industry development Full line producer of high-end Operational improvements in motorhomes purchasing and quality FY14 FY15 FY16 FY17 Gain market share in higher end ($’s in millions) KEY ACHIEVEMENTS of all product categories Acquisitions of: Drive aftermarket growth 2017 FINANCIALS - Renegade RV New regional technical centers NET SALES - Midwest Automotive and growth of existing facilities $189 Designs $178 Grow and improve national $166 New Product Introductions: distribution channel $127 - Renegade Valencia - Monaco Marquis - Fleetwood Pulse - Midwest Passage - Holiday Rambler Prodigy Q1 Q2 Q3 Q4 Market share growth in all motorized RV categories ($’s in millions) Top debut models per RV Business publication: % % - Fleetwood Jamboree 3 1 - Midwest Passage Legend 96% United States Canada International 2017 ANNUAL REPORT 7 UNITED STATES REV’s footprint REV’s facilities cover more than 5 million sq. ft. of space. With a focus on operational excellence, REV Group features one of the most efficient manufacturing footprints in the United States, combining 6,000-plus employees and 21 world-class manufacturing facilities. COMMERCIAL FIRE & EMERGENCY RECREATION SERVICE CORPORATE + INTERNATIONAL SOUTH AMERICA Sorocaba, São Paulo, Brazil ASIA Changshu, Jiangsu, China 8 2017 ANNUAL REPORT 2017 FINANCIALS SALES BY CUSTOMER TYPE NET INCOME ($’s in millions) 176% CAGR $30 $31 $23 12% 10% $2 50% FY14 FY15 FY16 FY17 28% NET SALES ($’s in millions) Municipalities Consumer 10% CAGR $2,268 $1,926 Private contractor Indust/Comm/Other $1,721 $1,735 SALES BY VEHICLE TYPE FY14 FY15 FY16 FY17 7% [1] 6% ADJUSTED NET INCOME 21% ($’s in millions) 8% 74% CAGR $76 6% $53 23% $34 29% $15 FY14 FY15 FY16 FY17 Fire Ambulance RV Specialty [1] Commercial Bus Type A Bus Transit Bus ADJUSTED EBITDA 38% CAGR ($’s in millions) $163 $123 $90 NET SALES BY SEGMENT $62 FY14 FY15 FY16 FY17 29% 44% CAPITAL EXPENDITURES ($’s in millions) 27% $49 $54 $12 $15 Fire & Emergency Commercial Recreation FY14 FY15 FY16 FY17 [1] Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures. Please see our annual report on Form 10-K for definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures. 2017 ANNUAL REPORT 9 A LEADER IN VEHICLE MANUFACTURING AND RELATED AFTERMARKET PARTS AND SERVICES 10 2017 ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2017 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File NUmber 001-37999 REV GroUp, Inc. (EXact name of Registrant as specified in its Charter) Delaware 26-3013415 ( State or other jUrisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 111 East KilboUrn AvenUe, SUite 2600 MilwaUkee, WI 53202 (Address of principal eXecutive offices) (Zip Code) Registrant’s telephone nUmber, inclUding area code: (414) 290-0190 Securities registered pursuant to Section 12(b) of the Act: Common Stock, Par Value $0.001 Per Share; Common stock traded on the New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.