Slide 1: First Quarter Earnings
First Quarter Earnings May 3, 2023
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation contain forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among o
Slide 3: First Quarter Highlights
First Quarter Highlights Jaco van der Merwe President & Chief Executive Officer ir.astecindustries.com | 3
Slide 4: Key 1Q 2023 Messages
KEY Strong start to 2023 as Astec team delivers record top line and solid bottom line despite challenging business environment with prudent 1Q 2023 1 expansion of production capacity continuing MESSAGES 2 Market demand solid across both segments, with positive customer sentiment despite lingering ma
Slide 5: CEO Observations and Priorities
CEO Observations and Priorities Early Observations: Positive and Active 2023 • Highly engaged and energized team focused on delivering results Priorities as we drive performance ▪ Visited facilities and met significant number of employees through Execution across the organization • Aligned with Simp
Slide 6: Focus on returns for all stakeholders
Focus on returns for all stakeholders Simplify Focus Grow Optimizing Organizational Improved Operational Profitable Structure and Operations Excellence Growth • Reduce organizational • Quality and performance • Aftermarket development structure complexity focused company culture • Dealer expansion •
Slide 7: ConExpo Features OneASTEC Product Suite
ConExpo Features OneASTEC Product Suite Largest show to date; 139,000+ registered attendees • Introduced OneASTEC branding to ConExpo • 8 newly launched products • Introduced Astec Digital suite of standardized solutions for Rock to Road value chain Outstanding Interest in Our Comprehensive Solution
Slide 8: Business Dynamics and Observations
Business Dynamics and Observations INDUSTRY TREND ASTEC RESPONSE / IMPACT Strong infrastructure demand for ✓ Customer conversations indicate sustainable positive demand asphalt roadbuilding, aggregate ✓ Expanding capacity and throughput to convert backlog to processing and concrete production revenu
Slide 9: Initiatives to Convert Elevated Backlog
Initiatives to Convert BACKLOG ($M) Elevated Backlog $969.0 $912.7 $834.7 $837.4 $800.2 $762.6 3-year • Capital Expenditures for facility expansion, average ~$613 $620.5 automation, productivity and throughput • Selectively adding headcount in $436.1 manufacturing facilities $420.8 • Enhanced Operat
Slide 10: ESG Journey Creates Value
ESG Journey Creates Value Key Focus Areas Invest in Resources to Accelerate Continue to Advance Maintain Sound Environmental Initiatives Social Initiatives Governance Practices Establish KPI tracking and Maintain focus on employee Board Refreshment assessments (GHG, utilities, etc.) safety and welfa
Slide 11: Supporting Diversity to Improve our Workforce
Supporting Diversity to Improve our Workforce Avril Watt is paving the way for women in manufacturing Astec’s Avril Watt, General Manager of the company's Franklin Blvd plant in Eugene, Oregon, is doing her part to pave the way for more women in manufacturing. She leads a team of approximately 205 p
Slide 12: Delivering Products that Promote Environmental Stewardship
Astec’s Peterson Delivering Products that Promote Horizontal Grinders have been diverting Environmental Stewardship green waste generated from road widening, construction and other sources,from land fills for over 40- years. Horizontal grinders are used to create mulch from green waste for water ret
Slide 13: Astec Digital Suite
Astec Digital Suite A digital platform to create a competitive advantage for the Astec value chain of products • Create Astec Digital Ecosystem that enables customers to leverage our product portfolio and associated data into competitive advantage • Develop and market a complete portfolio of connect
Slide 14: Astec Digital Suite
ASTEC DIGITAL SUITE ir.astecindustries.com | 14
Slide 15: First Quarter Financial Results
First Quarter Financial Results Becky Weyenberg Chief Financial Officer ir.astecindustries.com | 15
Slide 16: 1Q23 Financial Results
1Q23 Financial Results ($M, except per share data) NET SALES BACKLOG ADJ. EBITDA1 ADJ. EPS1 $834.7 $800.2 $347.9 $35.2 $0.90 $291.2 $18.8 $0.41 87.2% 119.5% 19.5% (4.1%) 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 • Equipment sales increased • Infrastructure Solutions • Adj. EBITDA margin increased • Ex
Slide 17: Infrastructure Solutions
Infrastructure Solutions 1Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales increased on strong global demand, especially equipment, and favorable net volume, pricing and mix – Domestic sales +14.3% – International sales +27.9% – Equipment sales +17.3% NET SALES SEGMENT OPERATING – Parts sa
Slide 18: Materials Solutions
Materials Solutions 1Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales increase driven by strong domestic equipment sales, and net positive volume, pricing and mix – Domestic sales +31.4% – International sales -4.2% – Equipment sales +34.5% NET SALES SEGMENT OPERATING – Parts sales +2.0% $1
Slide 19: 1Q23 Adjusted EBITDA Bridge
1Q23 Adjusted EBITDA Bridge ir.astecindustries.com | 19
Slide 20: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity SUMMARY BALANCE SHEET ($M) 3/31/23 ($M) 3/31/23 Cash and Cash Equivalents $39.6 Cash and Cash Equivalents $39.6 Total Current Assets $680.4 Available Credit $182.4 Total Assets $1,008.4 Total Available Liquidity $222.0 Total Current Liabil
Slide 21: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Returns to Shareholders • Dividend of $0.13 per share in 1Q23 Continually evaluate strategy 19% to ensure a balanced approach Share Repurchases • ~$116M remaining in authorized share Plant, Property, repurchase program, positioning us for additional opportuni
Slide 22: Oracle Suite of Solutions Enabling Transformation
Oracle Suite of Solutions Enabling Transformation OUR VISION OUR JOURNEY Expect 2H2023 benefits from 1st wave of solutions implementation OneASTEC January 1, 2023 May 1, 2023 2024 and 2025 To transform how we connect HCM launched for ERP & CX launched Future sites launch people, products, US. for 1
Slide 23: Key Investment Highlights
Leadership within attractive niche markets in industries benefiting from 1 long-term secular trends including population growth, urbanization and aging infrastructure Key Industry-leading reputation for innovation, high-quality products and Investment 2 superior customer service, supported by integr
Slide 24: Long-Term Goals
Long-Term Goals The OneASTEC business model to fuel strong future operational and financial performance 5%-10% >12% >10% >1.0 >14% Revenue EBITDA EPS FCF ROIC Growth Margin Growth Conversion1 Create Value for Shareholders Alignment to Incentive Plan Stand Through Cycles 1 Calculated by dividing LTM
Slide 25: Questions and Answers
QUESTIONS AND ANSWERS ir.astecindustries.com | 25
Slide 26: Corporate Office
CORPORATE OFFICE Steve Anderson SVP of Administration & Investor Relations 1725 Shepherd Road Phone: 423-553-5934 Chattanooga, TN 37421 Email: sanderson@astecindustries.com +1 (423) 899 - 5898 Visit Our Website ir.astecindustries.com | 26
Slide 27: Appendix
APPENDIX ir.astecindustries.com | 27
Slide 28: GAAP vs Non-GAAP Adjusted EPS Reconciliations
GAAP vs Non-GAAP Adjusted EPS Reconciliations (in millions, except per share amounts; audited) ir.astecindustries.com | 28
Slide 29: EBITDA and Adjusted EBITDA Reconciliations
EBITDA and Adjusted EBITDA Reconciliations (in millions, except per share amounts; audited) ir.astecindustries.com | 29