Alamo Group, Inc. · NYSE:ALG
Alamo — Investor Presentation (August 2019)
27 slides from Alamo's investor presentation, August 2019
Slide 1: Alamo Group Inc Investor Presentation
ALAMO GROUP INC A COMPANY FOR ALL SEASON S I N V E S T O R P R E S E N TAT I O N Au gu st 2 0 1 9
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains statements that may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts and represent only the Company’s beliefs and expectati
Slide 3: Who We Are
WHO WE ARE Alamo Group is a global leader in the design and manufacture of high quality agricultural equipment for farms and ranches and infrastructure maintenance equipment for governmental and industrial markets • Founded in 1969 • Corporate Headquarters Seguin, Texas • IPO 1993 (NYSE: ALG) Alamo
Slide 4: 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 ethical standards and good corporate governance. We have implemented policies and procedures that are designed to support this commitment which apply to all
Slide 5: Sustainability
SUSTAINABILITY Alamo is committed to a sustainable model for growth and profitability. This applies to both our internal processes as well as the products we manufacture. Through investments, incentives, process redesign and product development, we have targeted continuous improvements including red
Slide 6: Sales and Earnings Overview
SALES AND EARNINGS OVERVIEW 6 alamo-group.com 6
Slide 7: Sales by Division
SALES BY DIVISION Net Sales (U.S. $ Millions) $ 1,100 Europe Agricultural Industrial $1,009 1,000 $912 $880 900 $839 $845 800 $682 700 $599 $499 $523 600 $436 $484 $298 500 400 300 $219 $214 $208 $227 $235 $206 200 100 $165 $189 $173 $155 $162 $175 0 2013 2014 2015 2016 2017 2018 7 alamo-group.com 7
Slide 8: Industrial Division
INDUSTRIAL DIVISION Tractor mounted mowers, street sweeping equipment, excavators, vacuum trucks, snow removal equipment and replacement parts Alamo Industrial Municipal Prime Mover Tiger Triple Flail Mower Equipment for maintenance on and around highways, airports, military installations, recreatio
Slide 9: Industrial Division: Sales and Distribution
INDUSTRIAL DIVISION Sales and Distribution • Sold direct and through approximately 700 dealers with over 1,300 sales outlets • Marketed under Alamo Industrial®, Terrain King®, Tiger®, Schwarze®, Nite- Hawk®, Gradall®, Vacall®, Henke®, Tenco®, Super Products®, Wausau™, Everest®, H.P. Fairfield™, Old
Slide 10: Agricultural Division
AGRICULTURAL DIVISION Tractor powered mowers, tillage implements, post hole diggers, scraper blades, rock pickers, front-end loaders and backhoes, snow blowers, zero turn radius mowers, hay rakes and tedders, Bush Hog Hay Rake other ag implements, related Rhino Flex Wing Mower replacement parts and
Slide 11: Agricultural Division: Sales and Distribution
AGRICULTURAL DIVISION Sales and Distribution • Sold primarily through approximately 3,300 dealers, distributors and other Original Equipment Manufacturers • Marketed under Bush Hog®, Rhino®, Earthmaster®, Schulte®, Herschel®, Valu-Bilt®, Superior®, Fieldquip®, Herder℠, Santa Izabel™ and other brand
Slide 12: European Division
EUROPEAN DIVISION Hedge and grass cutters, front-end loaders and backhoes, mowers, cultivators, and other ag Rivard Trencher McConnel Boom Arm Mower implements, vacuum trucks, jetting systems, trenchers and related replacement parts End Users • Agricultural markets Bomford Rotary Mower Rivard Vacuum
Slide 13: European Division: Sales and Distribution
EUROPEAN DIVISION Sales and Distribution • Sold direct and through approximately 2,100 dealers and distributors • Marketed under Bomford®, McConnel®, Twose™, Spearhead™, Rousseau™, SMA®, Faucheux™, Forges Gorce™, Rivard®, Kellands™ , Conver™, Votex™, Precision McConnel Triple Flail Mower Makers™, Ro
Slide 14: Strategic Objectives Drive Shareholder Value
STRATEGIC OBJECTIVES DRIVE SHAREHOLDER VALUE Continuous Strategic Operational Acquisitions Improvement Organic Growth 1 alamo-group.com 14
Slide 15: Acquisition Strategy
ACQUISITION STRATEGY Our objective is to acquire businesses or products that command or have potential to be major players in their niche markets and are complementary to Alamo’s existing range Bomford Rotary Mower Types of Targeted Acquisitions • Consolidation of similar products in current markets
Slide 16: Alamo Acquisitions
ALAMO ACQUISITIONS Type of Acquisition Acquisitions Schulte, Twose, Valu-Bilt, Market Share Rousseau, Tenco, Nite-Hawk, Consolidation Bush Hog, Spearhead, Super Products, Wausau-Everest Votex Flail Slope & Bank Mower Schwarze, Twose, Schulte, Complementary Gradall, Vacall, Henke, Tenco, Kellands, Ol
Slide 17: Acquisition Timeline
ACQUISTION TIMELINE We have completed 25 acquisitions since 2000 alamo-group.com 17
Slide 18: Organic Growth
ORGANIC GROWTH Our objective is to grow organically at rates in excess of core market growth rates McConnel Robotic Flail Mower Organic Growth Drivers • Geographical expansion • Product development • Cross selling opportunities • Strength of multiple distribution networks Schulte Disc Harrow • Prici
Slide 19: New Product Development Enhances Organic Growth
NEW PRODUCT DEVELOPMENT ENHANCES ORGANIC GROWTH Our new product development is focused on the needs of customers, both large and small, for more efficient, safer and user-friendly equipment Alamo Industrial Mantis wide area Super Products Camel 1200 Vacuum Mower Truck with improved Water Improving c
Slide 20: Continuous Operational Improvement
CONTINUOUS OPERATIONAL IMPROVEMENT Our objective is to continuously Group Purchasing Initiatives improve our operating efficiencies • The Company takes advantage of the combined group’s procurement power Investments in Technology through corporate purchasing initiatives • The Company has continually
Slide 21: Continuous Improvement Focus Drives Our Production Strategy
CONTINUOUS IMPROVEMENT FOCUS DRIVES OUR PRODUCTION STRATEGY Alamo Group has a global manufacturing presence in close proximity to our major markets Bush Hog – Selma, Alabama Rivard – Daumeray, France Our manufacturing The Company sources raw capabilities provide us better materials and components co
Slide 22: Continuous Improvement Focus Drives Our Production Strategy
CONTINUOUS IMPROVEMENT FOCUS DRIVES OUR PRODUCTION STRATEGY We make capital investments to continuously improve the efficiency and productive capacity of our manufacturing facilities, as well as the quality of the products Fiber laser plate cutting center we manufacture Automatic plate handling syst
Slide 23: Results of Operational Improvements
RESULTS OF OPERATIONAL IMPROVEMENTS Sales Per Employee 2008 $218,000 2018 $291,000 +33% 2 alamo-group.com 23
Slide 24: Income Statement
Six Months Ended Fiscal Year Ended INCOME STATEMENT 6/30/19 6/30/18 12/31/18 12/31/17 12/31/16 (In U.S. $ Th o u san d s) Revenue $547,120 $495,212 $1,008,822 $912,380 $844,748 Gross Margin $136,441 $126,711 $256,115 $234,693 $205,099 % of Revenue 24.9% 25.6% 25.4% 25.7% 24.3% Operating Expenses $84
Slide 25: Balance Sheet
Period Ended Fiscal Year Ended BALANCE SHEET (In U.S. $ Th o u san d s) 6/30/19 6/30/18 12/31/18 12/31/17 12/31/16 Current Assets $536,104 $468,680 $452,843 $392,527 $327,618 Total Assets $866,579 $725,379 $721,633 $639,671 $552,776 Current Liabilities $117,155 $100,651 $100,852 $101,363 $78,700 Wor
Slide 26: Why Alamo, Why Now?
WHY ALAMO, WHY NOW? An integrated Leadership strategy for An incentive position in long-term system niche revenue and aligned with markets earnings performance growth A Proven Recipe For Growth Financial Stability in Long-term strength to government growing support spending on demand for strategic i
Slide 27: Contact Information
CONTACT INFORMATION Corporate Office 1627 East Walnut St., Seguin, Texas 78155 Ron Robinson, President & CEO Phone: 830-372-9615 Email: rrobinson@alamo-group.com Dan Malone, Executive Vice President, CFO & Investor Relations Director ALAMO GROUP INC. Phone: 830-372-9581 A company for all seasons… Em