Slide 1: Investor Presentation — September 2023
dod DOUGLAS DYNAMICS INVESTOR PRESENTATION — SEPTEMBER 2023 Bob McCormick — President and Chief Executive Officer Sarah Lauber— Executive Vice President, Chief Financial Officer
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS dd This presentation contains certain forward-looking statements within tho meaning of Section 21E of the Securtios Exchange Act of 1934, as amended. These statomonts Include information relating to futuro avents, future financial strategies, competitive regulation, produc
Slide 3: Two Market Leading Segments
TWO MARKET LEADING SEGMENTS Work Truck Attachments (“WTA”) Work Truck Solutions (“WTS”) + Three leading commercial snow and ice Leading provider of customized solutions control brands and upfit services (Class 4-8) + Track record of innovation and * Strong relationships with truck OEM's. defendable
Slide 4: Work Truck Industry Structure
WORK TRUCK INDUSTRY STRUCTURE dd Snowx/ —fentersom Attachments Manufacturer ™ Henderson DEJANA | y Vocational End User QR anceps @ umes SZ vane &) owes 9 B, Contractors [iy Hauing Senice
Slide 5: Capabilities Across the Work Truck Market
CAPABILITIES ACROSS THE WORK TRUCK MARKET Se suow=x/ na | DEJANA | Henderson Light Duty Trucks Medium Duty Heavy Duty ‘ord F-150 Ford F-450 Freightliner Chevy 2500 Chevy Topkick International tes nag anes 6 a
Slide 6: Long-Term Growth Strategy
LONG-TERM GROWTH STRATEGY dd Near-Term Long-Term Margin Improvement * Revenue Synergies ‘Acquisition Custom Up-ft DMS Prtner wth WTA Vertical Mart ender Best Cost Structure Integration Pool Designations @ © 2 Geographic Expansion Branch Expansion Pool Grant Opportunity morph Ojon Ue a
Slide 7: WTS: Positioning for Long-Term Profitable Growth
WTS: POSITIONING FOR LONG-TERM PROFITABLE GROWTH dod Q Significant backiog entering 2023 CQ) oe DEJANA Truck and ¥ Uiiity Equipment : Self-help initiatives: © Expancing DoMs © Cost reductions implementation sourcing, product redesign Henderson Q Longer term focus on reducing O) Dyan ener chassis dep
Slide 8: Long-Term Growth Strategy
LONG-TERM GROWTH STRATEGY dd Near-Term Long-Term ‘Cash Flow ~ Margin Improvement * Acquisition Protect earings power DMS: consistently ariving Marketleaders improved proftabilty, ‘Complex attachments al janic Growth Vertical Integration Leverage operations Engineering expertise morph Ojon Ue a
Slide 9: WTA: Disruption Creating Demand Outside "Snowbelt"
WTA: DISRUPTION CREATING DEMAND OUTSIDE "SNOWBELT" dd Il Traditional Markets I Expansion markets mm dual mame Ue a
Slide 10: WTA: Shifting Societal Expectations Creating Opportunities
WTA: SHIFTING SOCIETAL EXPECTATIONS CREATING OPPORTUNITIES = Increased focus on + Pressure for Gee non of service due to safety concerns and increasingly litigious society Environment and regulations + State nati — change + Increasing use of liquids to pre-treat + Preventative snow and ice managemen
Slide 11: WTA: Expanding Snow & Ice Control Methods
WTA: EXPANDING SNOW & ICE CONTROL METHODS dd 4 are
Slide 12: WTA: Product Expansion Opportunities
WTA: PRODUCT EXPANSION OPPORTUNITIES dd fo a Key Criteria \ @ Highly engineered © Regulatory barriers. = f%, © Complex manufacturing @ Mission critical performance - © Hydraulics © Complex certification & © Intricate electrical © Professional user Ke © Intellectual property @ Decreased price sensiti
Slide 13: Financial Overview
dd DOUGLAS DYNAMICS FINANCIAL OVERVIEW
Slide 14: Resilient Business Model
RESILIENT BUSINESS MODEL dd — (en! (ax) oo Revenue ($ in millions) rane fa A So 3 | gia sto iva sry 8 ca on of Un Ue za aor ae 09 (270 0H Adjusted EBITDA’ ($ in millions) 50 = 2 cannon tin morse ojan Le a
Slide 15: Q2 2023 Financials
Q2 2023 FINANCIALS dd Net Sales increased 10.5% to a record $207.3 million 2023 guidance* Gross Profit improved 19.8% to $61.4 milion fm | Low [High | Net Income increased 35.2% to $24.0 million, Sales cieeeiN) eM or $1.01 of Diluted EPS EVERIO | OSEitl 100M dj EPS 1.55 2.00 Adjusted EBITDA increase
Slide 16: Maintained Long-Term Financial Targets
MAINTAINED LONG-TERM FINANCIAL TARGETS dood 20 WORK TRUCK rey WORK TRUCK ana | ATTACHMENTS. | LU ca""SOUUTIONS Sales growth — low to mid-single digits Sales growth — mid to high-single digits EBITDA % profile - mid to high 20’s EBITDA % Profile — low teens Expanding Vertical Integration Disciplined
Slide 17: Long-Term Free Cash Flow Supports Growth Strategy
LONG-TERM FREE CASH FLOW SUPPORTS GROWTH STRATEGY Average Over Past Five Years: FCF: ~$46 Million FCF as a % of Adjusted Net Income: ~110% Free Cash Flow (FCF)* ($ in millions) CapEx: ~2% of Sales Strong Balance Sheet Bessegse ee Growing Free Cash Flow |__Stowing Free cash Flow | i a Support Growth
Slide 18: Disciplined, Consistent Capital Allocation Strategy
DISCIPLINED, CONSISTENT CAPITAL ALLOCATION STRATEGY dd Maintain & Strong Disciplined Grow Dividend Balance Sheet ‘Acquisitions: + Dividend Yield + Continue + Target Leverage + Capital Structure + Initiated S50M = ~4% Organic Ratio Of 1.5X - Creates Liquidity ‘Share Buyback in + Sustainable & ;usemno
Slide 19: Roadmap to Long-Term Value Creation
ROADMAP TO LONG-TERM VALUE CREATION Drive organic growth through diversification Innovation and diversification to further strengthen market postion Execute effectively Delivering margin improvements via DDMS and evolving talent strategy eS Deliver long-term shareholder value = Committed to goal of
Slide 20: Douglas Dynamics
dd DOUGLAS DYNAMICS INVESTOR PRESENTATION — SEPTEMBER 2023 Bob McCormick — President and Chief Executive Officer Sarah Lauber— Executive Vice President, Chief Financial Officer