Slide 1: Alamo Group Inc. Investor Presentation
Alamo Group Inc. Investor Presentation | May 2023 1 Alamo Group | Investor Presentation | May 2023
Slide 2: Alamo Group | Investor Presentation | May 2023
2 Alamo Group | Investor Presentation | May 2023
Slide 3: Our Business At A Glance
Our Business At A Glance Alamo Group is a leading manufacturer of high-quality maintenance equipment for managing natural vegetation, industrial facilities and public and Private sector infrastructure. Our products are delivered and serviced primarily through an international network of approximatel
Slide 4: A Company for all Seasons
A Company for all Seasons Our customers count on us to provide high-quality, high-performance equipment to maintain forests, fields, farmlands and infrastructure, no matter the time of year or the weather conditions. • Snow Removal • Hedge Trimming • Street Sweeping • Cinder recovery • Land Clearing
Slide 5: Sales and Earnings Overview
Sales and Earnings Overview Sales and Earnings (USD Millions) Sales by Division (USD Millions) $1,600 $120 $1,000 $1,400 $900 $100 $800 $1,200 $700 $80 $1,000 $600 Earnings Sales $800 $60 $500 $600 $400 $40 $300 $400 $200 $20 $200 $100 $0 $0 $0 2020 2021 2022 2020 2021 2022 Net Sales Net Earnings Ve
Slide 6: Who We Are
Who We Are Diversity is extremely important to Alamo Group’s success. We strive to have our workforce closely reflect local demographics in the communities where we operate. Our culture is family friendly and welcoming to everyone 6 Alamo Group | Investor Presentation | May 2023
Slide 7: Sustainability: From Lean to Green
Sustainability: From Lean to Green At Alamo Group, we believe the largest positive impact we can have on the environment comes from reducing our consumption of resources while designing and manufacturing products which help our customers do the same. The focus on more efficient use of resources thro
Slide 8: Sustainability in Action
Sustainability in Action Environment • Aggressive Scope 1 & 2 GHG Reduction Targets supported by significant investment in energy efficient facilities and manufacturing processes and renewable energy sources. • R&D focused on more fuel-efficient new products and adaptation to future electrification,
Slide 9: Caring For Our People
Caring For Our People Alamo Group’s sustainable business model depends upon its ability to attract and retain skilled labor and management talent. This requires that we create safe and inclusive work environments which draw from a diverse pool of candidates, provide equal opportunity, pay equity and
Slide 10: Global Manufacturing Operations
Global Manufacturing Operations 3 3 2 3 16 United States Canada Brazil 1 France United Kingdom 1 Netherlands Australia China Sourcing Office 10 Alamo Group | Investor Presentation | May 2023
Slide 11: Vegetation Management Division Profile
Vegetation Management Division Profile Alamo Group is a leading provider of equipment used in both the maintenance and recycling of organic material. Our mowing and tree care brands are some of the most recognizable names in their respective markets. Mowing Wetland Management Forestry & Recycling 17
Slide 12: Industry Leader in Vegetation Maintenance
Industry Leader in Vegetation Maintenance From crop preparation to stubble management to roadside mowing to land clearing, Alamo has the right products to support our customers needs. With an eye towards innovation and lessening environmental impact, our products deliver industry leading performance
Slide 13: Industrial Vehicles Division Profile
Industrial Vehicles Division Profile Alamo Group is a leading supplier for both public and private sector customers in infrastructure. Our specialized equipment focuses on application-based solutions and includes some of the most recognizable brand names in the market. Excavators Vacuum Trucks Stree
Slide 14: Industrial Infrastructure Maintenance Vehicles
Industrial Infrastructure Maintenance Vehicles Alamo’s portfolio of industrial vehicle manufacturers includes brands dedicated to application solutions. Our products focus on both contractor and municipal infrastructure customers’ year-round maintenance requirements. 14 Alamo Group | Investor Presen
Slide 15: Compelling Long-Term Growth Strategy and Commitment to Driving Shareholder Value
Compelling Long-Term Growth Strategy and Commitment to Driving Shareholder Value Non-Organic Growth Carefully target acquisitions that meet defined criteria and can be Market Penetration quickly accretive to results Surround targeted customer segments with products to meet Continuous Improvement the
Slide 16: Strong Organic Growth Drivers
Strong Organic Growth Drivers Our objective is to grow organically at rates in excess of core market growth rates Strength of Geographical Multiple Expansion Distribution Networks Innovative New Product Cross Selling Products that Development Opportunities Can Command Premium Prices 16 Alamo Group |
Slide 17: Our Commitment to Product Development and R&D
Our Commitment to Product Development and R&D We employ long range product planning tools to guide our product development programs and to establish priorities among them. In addition, we are investing in new technologies that will support our sustainability goals, now and in the future • Reduce tot
Slide 18: Cross Branding
Cross Branding 18 Alamo Group | Investor Presentation | May 2023
Slide 19: Disciplined Acquisition Strategy
Disciplined Acquisition Strategy • Acquiring complementary product brands in the mature markets we serve • Consolidating market position in niche product segments • Acquiring products similar to those we currently offer that have established positions in new, targeted geographic markets • Acquiring
Slide 20: Opportunities for Continuous Improvement
Opportunities for Continuous Improvement Investments in people Investments in technology “Lean and green” focus in all we do Group purchasing initiatives to leverage operational scale Plant consolidations Manufacturing process automation Improving environmental performance throughout the product lif
Slide 21: Results of Operational Improvements
Results of Operational Improvements Sales Per Employee $400,000 $360,000 $350,000 $300,000 $254,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 An employee team participates in a Kaizen event to improve material flow between sequential operations 2012 2022 • Our employees, managers and executives
Slide 22: Corporate Governance
Corporate Governance Alamo Group is dedicated to enhancing shareholder value over the long term in a manner that is consistent with the highest standards of good corporate governance and business ethics. We have implemented policies and procedures that are designed to support this commitment. These
Slide 23: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that may be The Company does not undertake any obligation to considered “forward-looking statements” within the update the information contained herein, which meaning of the Private Securities Litigation Reform reflects management’s beliefs
Slide 24: Income Statement
Income Statement Three Months Ended Fiscal Year Ended (In USD Thousands) 3/31/2023 3/31/2022 12/31/2022 12/31/2021 12/31/2020 Revenue $411,771 $362,005 $1,513,616 $1,334,223 $1,163,466 Gross Margin $112,507 $86,641 $376,518 $334,514 $293,730 % of Revenue 27.3 % 23.9 % 24.9 % 25.1 % 25.2 % Operating
Slide 25: Balance Sheet
Balance Sheet Period Ended Fiscal Year Ended (In USD Thousands) 3/31/2023 3/31/2022 12/31/2022 12/31/2021 12/31/2020 Current Assets $845,416 $749,263 $727,210 $612,168 $515,540 Total Assets $1,429,212 $1,338,015 $1,308,508 $1,205,742 $1,121,859 Current Liabilities $204,248 $198,516 $190,506 $192,564
Slide 26: Our Commitment to Driving Shareholder Value
Our Commitment to Driving Shareholder Value Alamo Group is well positioned to capitalize it’s strong backlog and continued good demand in both of its operating divisions to maintain its historic track record of long-term growth and total shareholder returns. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RET
Slide 27: Contact Information
Corporate Office 1627 East Walnut St. Seguin, Texas 78155 Contact Information Jeffery A. Leonard President & CEO Phone: 830-372-9615 Email: jleonard@alamo-group.com Dan Malone Executive Vice President, Chief Sustainability Officer & Investor Relations Director Phone: 830-372-9581 Email: dmalone@alam