Alamo : Investor Presentation October 2020

ALAMO GROUP INC.

A C O M P A N Y F O R A L L S E A S O N S

I N V E S T O R P R E S E N TAT I O N

October 2020

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 expectations. Forward-looking statements

involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: market demand, impacts of the current COVID-19 pandemic, competition, weather, disease outbreaks, seasonality, changes in U.S. trade policy, negative economic impacts resulting from

geopolitical events, acquisition risks, financial issues, and other risks and uncertainties, including (but not

limited to) those described under the captions "Forward-Looking Information" in Part I, Item 1 and "Risk Factors" in Item 1A of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and the Company's Annual Report on Form 10-K for the year ended December 31, 2019, as well as other risks and uncertainties listed from time to time in the Company's SEC filings. The Company does not undertake any obligation to update the information contained herein, which reflects management's beliefs and expectations only as of this date. More information about factors that potentially could affect Alamo Group's financial results are included in the Company's public filings. This presentation also contains non -GAAP financial measures. These measures are included to facilitate meaningful comparisons of our results to those in prior periods and future periods and to allow a better evaluation of our operating performance, in management's opinion. Our reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of our financial performance.

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WHO WE ARE

Alamo Group is a global leader in the design and manufacture of high quality infrastructure maintenance equipment for governmental and industrial markets and agricultural equipment for farms and ranches

• Founded in 1969
• Corporate Headquarters Seguin, Texas
• IPO 1993 (NYSE: ALG)
• Quarterly dividend paid since 1993
• • current annual rate $0.52

Bomford Mulcher Mower

Alamo Industrial Under Guardrail Mower

Organizational Highlights

• Two Operating Divisions
• • Industrial
  • Agricultural
• 27 manufacturing locations in the U.S., Canada, England, France, the Netherlands, Australia and Brazil
• Approximately 3,950 employees
• Primarily sell through an international network of approximately 7,000 independent dealers and distributors

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COVID-19

Alamo Group Inc., like most manufacturing companies in the world today, is being affected by the COVID-19 pandemic. While most of our businesses are deemed essential, we have experienced challenges both internally and externally that have constrained our operations. Despite these challenges, Alamo continues to conduct business and meet most of our customer requirements in a timely fashion. In doing so, the Company is committed to the safety and wellbeing of our employees and we are following all the recommended standards for safety and hygiene.

As a result of this unprecedented situation, it is difficult to predict exactly how our business will be affected in the near term, but we believe we have the financial stability to maintain operations and conduct business in an orderly fashion during this pandemic and will be capable of supporting our customers as business returns to more normal operating conditions.

We appreciate this is a difficult situation for all concerned and want to thank everyone for their understanding and support.

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 which apply to all of our directors, officers and employees worldwide .

These policies reflect our expectation that our Company always acts with integrity in a legal, ethical and responsible way for the benefit of our customers, employees and shareholders. Our Corporate Governance Guidelines, Code of Business Conduct and Ethics and Board Committee Charters can be found under the "Our Company/Our Commitment" tab of our website at www.alamo-group.com.

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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 reductions in non-renewable energy consumption, non-recycled waste production and green house gas emissions. As part of our commitment, employee health and safety is a priority and the safety performance of each of our operations is stringently monitored. More details concerning our sustainability program can be found in our Sustainability Report which may be viewed on the Company's website under the "Our Commitment" tab.

Our Alamo Industrial plant in	Many of our vacuum truck products	Our Bush Hog plant in Alabama
Texas has operated over 12	offer water recycling technology,	utilizes movable fixtures to
years with no lost time	allowing our customers to operate	improve assembly process
accidents	more efficiently, burn less fuel and	ergonomics and employee safety
	conserve water resources
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SALES AND EARNINGS OVERVIEW

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Net Sales

$1,100

SALES BY DIVISION

(U.S. $ Millions)

$1,119

	Agricultural		Industrial

1,000

900

$880

$1,009

$912

800

700

600

500

400

300

200

100

0

$839$845

$768

$638

$478	$538	$563
$525

$361	$342	$320	$349	$371	$351

2014

2015

2016

2017

2018

2019

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INDUSTRIAL DIVISION

Products

Alamo Industrial Wide Area Mower

Super Products Sewer Cleaner

Gradall Highway Speed Wheeled Excavator

The Industrial Division provides

equipment for maintenance on

and around highways, airports, military installations, industrial properties, parks and recreational facilities, commercial landscapes, and other specialty markets.

• Tractor Mounted Mowers
• Forestry Mulchers
• Brush Cutters
• Horizontal Grinders
• Street Sweepers and Debris Collectors
• Mechanical Excavators
• Hydro-Excavators/JettingEquipment
• Snow Removal Equipment
• Trenchers
• Compact Loaders
• Replacement Parts and Technical Services

Tiger Triple Flail Mower

Schwarze Updraft Sweeper

Henke Front & Wing Snow Plows

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INDUSTRIAL DIVISION

Rivard Trencher

Rayco Forestry Mulchers

End Users

• State, county and local authorities and other governmental agencies in the United States and internationally
• Contractors
• Other specialty markets

Tenco Snow Plow

Rivard Vacuum Truck

Conver Weed Harvester Work Boat	Morbark Brush Chippers	Votex Flail Mower
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INDUSTRIAL DIVISION

Sales and Distribution

• Sold direct and through approximately 1,300 dealers with over 3,300 sales outlets

• Marketed under Alamo Industrial®, Boxer®, Conver, Denis Cimaf®, Everest®,
  Gradall®, H.P. Fairfield™, Henke®,
  Herder®, Morbark®, NiteHawk®, Old Dominion Brush™, Precision Makers®, R.P.M. Tech™, Rayco®, Rivard®, Roberine®, Schwarze®, Super Products®, Tenco®,Terrain King®, Tiger®, Vacall®, Votex®, Wausau® and other brands

Vacall Sweeper/Vacuum

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RECENT ACQUISTION

Morbark, LLC

On October 24, 2019 Alamo Group Inc. completed the acquisition of Morbark, LLC, the company's largest acquisition to date.

Morbark is a leading manufacturer of equipment and aftermarket parts for the forestry tree maintenance, biomass, land management and recycling markets. Their products include a broad range of tree chippers, grinders, flails, debarkers, stump grinders, mulchers and brush cutters plus related aftermarket spare and wear parts. Morbark products are marketed under the Morbark, Rayco, Boxer and Denis Cimaf brand names and are sold through a network of independent dealers with about 300 sales locations. The company, with approximately 690 employees, is based in Winn, Michigan, with subsidiary operations in Wooster, Ohio and Roxton Falls, Quebec.

Denis Cimaf Excavator Mulcher

Morbark Horizontal Grinder

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AGRICULTURAL DIVISION

Products

Dixie Chopper ZT Mower

Schulte 42 Foot Rotary Cutter

McConnel Reach Arm Mower

The Agricultural Division provides equipment for farmers, ranchers, contractors and landscapers primarily aimed at vegetation maintenance, turf and landscaping markets, as well as supporting

production agriculture and the

livestock industry.

• Rotary & flail mowers
• Zero turn mowers
• Tractor mounted reach arm mowers
• Rock pickers
• Hay processing tools
• Remote controlled mowers
• Tillage tools
• Sprayers
• Landscape tools
• General agricultural implements
• Aftermarket replacement parts

McConnel Agribuggy

Rhino Flex Flail Mower

Schulte Rock Picker

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AGRICULTURAL DIVISION

End Users

•	Farmers	•	Commercial landscapers
•	Ranchers	•	Residential homeowners
•	Mowing contractors	•	Hobby farmers

Sales and Distribution

• Sold primarily through approximately 6,000 dealers, distributors, OEMs and other outlets

Bomford Rotary Mower

• Marketed under Bomford®, Bush Hog®, Dixie Chopper®, Earthmaster®, Faucheux™, Fieldquip®, Forges Gorce™, Herder®, Herschel®, McConnel®, M&W®, Rhino®, Rousseau™, Santa Izabel®, Schulte®, SMA®, Spearhead™, Twose™, and other brand names

Bush Hog Multi Spindle Rotary Mower

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STRATEGIC OBJECTIVES DRIVE

SHAREHOLDER VALUE

		Strategic
Organic Growth	Continuous
Acquisitions

Operational

Improvement

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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

Conver Mowing Boat

Bomford Rotary Mower

Types of Targeted Acquisitions

• Consolidation of similar products in current markets
• New products that are complementary to the markets and customers we currently serve
• Similar products to those we currently offer in new geographical markets

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ALAMO ACQUISITIONS

Type of Acquisition

Market Share

Consolidation

Complementary

Products

for Existing Markets

International Expansion

of Existing Products

Acquisitions

Schulte, Twose, Valu-Bilt,

Rousseau, Tenco, Nite-Hawk,

Bush Hog, Spearhead, Super

Products, Wausau-Everest,

Dixie Chopper

Schwarze, Twose, Schulte,

Gradall, Vacall, Henke, Tenco,

Kellands, Old Dominion Brush,

R.P.M. , Conver, Herder,

Roberine, Precision Makers,

Votex, Dixie Chopper, Morbark,

Rayco, Boxer, Denis Cimaf

Schulte, Faucheux, Spearhead,

Rivard, Tenco, Superior, Herder,

Santa Izabel, R.P.M., Conver,

Roberine, Precision Makers,

Votex, Denis Cimaf

Votex Flail Slope & Bank Mower

RPM Rail Mounted Snow Removal System

Henke Plow Wing Combo

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ACQUISTION

TIMELINE

We have completed 27

acquisitions since 2000

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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

• Pricing leadership

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NEW PRODUCT DEVELOPMENT ENHANCES

ORGANIC GROWTH

Alamo Industrial Mantis wide area mower

Gradall Discovery - a new truck- mounted excavator reduces ownership costs for municipalities

Our new product development

is focused on the needs of

customers, both large and small,

for more efficient, safer and

user-friendly equipment

Improving customer operating

efficiencies, as well as product

functionality, manufacturability,

serviceability, ergonomics,

safety and aesthetics are key

objectives of our product

development strategy

Super Products Camel 1200 Vacuum Truck with improved water recycling technology reduces water use and improves productivity

The redesigned Wausau SnoDozer grows sales by meeting a wider range of airport snow removal applications

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CONTINUOUS OPERATIONAL IMPROVEMENT

Our objective is to continuously improve our operating efficiencies

Investments in Technology

• The Company has continually invested in more automated production equipment to improve quality and efficiency and has all operating units on, or moving to, a common ERP platform to ensure timely flow of information

Group Purchasing Initiatives

• The Company takes advantage of the combined group's procurement power through corporate purchasing initiatives available to all units on a number of purchased components, supplies and services

Plant Consolidations

• The Company has consolidated 16 manufacturing plants in the past 20 years

Lean

• The Company has an ongoing lean manufacturing program aimed at reducing lead times, improving asset utilization, improving flow through plants and increasing manufacturing efficiencies

NiteHawk Parking Lot Sweeper

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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
	control over costs, quality, on-				globally to ensure
	time deliveries and safety				competitiveness
				Alamo Industrial - Seguin, Texas
			Our improvement initiatives
			enhance our margins which
			benefit further from growing
			economies of scale
	McConnel - Ludlow, England
				Gradall - New Philadelphia, Ohio
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CONTINUOUS IMPROVEMENT FOCUS DRIVES OUR PRODUCTION STRATEGY

Fiber laser plate cutting center

Robotic welder used to fabricate large tanks and frames

We make capital investments to continuously improve the efficiency and productive capacity of our manufacturing facilities, as well as the quality of the products we manufacture

Alamo has a long term strategy to have fewer but larger plants to provide the scale necessary to justify more automation. More

reliable output, reduced cycle

times, efficiency gains, and

greater flexibility are positive

outcomes from these investments

Automatic plate handling system

Laser tube cutter

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RESULTS OF OPERATIONAL IMPROVEMENTS

Sales Per Employee

2009

$194,000

2019

$305,000

+57%

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INCOME STATEMENT

(In U.S. $ Thousands)

Nine Months Ended		Fiscal Year Ended
9/30/2020	9/30/2019	12/31/2019	12/31/2018	12/31/2017

Revenue			$	874,842	$
Gross Margin			$	225,401	$
% of Revenue				25.8 %
Operating Expenses			$	147,961	$
Operating Income			$	77,440	$
% of Revenue				8.9 %
Depreciation - PP&E			$	14,237	$
Depreciation - Rental			$	7,504	$
Amortization			$	11,593	$
Net Income			$	48,550	$
Diluted Earnings Per Share		$	4.10	$
Adjusted Net Income	(1)		$	48,550	$
Adjusted Diluted Earnings Per Share	(1)	$	4.10	$
EBITDA	(2)			$	110,774	$

818,949	$	1,119,138	$	1,008,822	$	912,380
205,151	$	273,227	$	256,115	$	234,693
25.1 %		24.4 %		25.4 %		25.7 %
128,741	$	178,579	$	155,027	$	145,955
76,410	$	94,648	$	101,088	$	88,738
9.3 %		8.5 %		10.0 %		9.7 %
10,583	$	14,934	$	12,884	$	11,616
6,770	$	9,373	$	6,725	$	5,531
3,247	$	5,953	$	3,726	$	3,520
53,338	$	62,906	$	73,486	$	44,315
4.52	$	5.33	$	6.25	$	3.79
53,338	$	62,906	$	70,155	$	54,551
4.52	$	5.33	$	5.97	$	4.67
97,010	$	124,908	$	124,423	$	109,405

1. For year ended 2017, 2018 and 2019, Adjusted Net Income and Adjusted Diluted Earnings Per Share are each adjusted for the following: 2017 excludes a one-time net charge of $10.2 million relating to the 2017 U.S. tax reform bill enacted in December 2017; 2018 results include a $3.3 million favorable adjustment to the provisional tax reform expense originally recorded in 2017; 2019 results excludes a $1.5 million impact of the recently completed acquisitions and related transaction costs of $1.4 million and related interest expense of $4.0 million.
2. EBITDA is a non-GAAP financial measure defined for this purpose as the sum of operating income and depreciation and amortization. Adjusted EBITDA for 2019 also excludes $3.3 million of an inventory step up charge related to the Morbark acquisition.

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BALANCE SHEET

(In U.S. $ Thousands)

Current Assets Total Assets Current Liabilities Working Capital Total Debt Total Debt Net of Cash Shareholders' Equity Debt as a % of Capitalization Debt Net of Cash as % of Capitalization Net Cash from Operating Activities Capital Expenditures Dividends Paid

	Period Ended
	9/30/2020		9/30/2019
$	567,155	$	524,477	$
$	1,173,459	$	856,393	$
$	157,680	$	120,163	$
$	409,475	$	404,314	$
$	374,089	$	150,305	$
$	280,574	$	90,026	$
$	605,213	$	551,052	$
	38.2 %		21.4 %
	31.7 %		14.0 %
$	135,975	$	44,210	$
$	14,962	$	19,488	$
$	4,590	$	4,217	$

Fiscal Year Ended
12/31/2019		12/31/2018		12/31/2017
570,828	$	452,843	$	392,527
1,212,763	$	721,633	$	639,671
162,874	$	100,852	$	101,363
407,954	$	351,991	$	291,164
443,981	$	85,298	$	60,082
401,670	$	51,255	$	34,709
569,757	$	507,371	$	449,108
43.8 %		14.4 %		11.8 %
41.3 %		9.2 %		7.2 %
88,813	$	12,910	$	70,804
31,337	$	26,587	$	13,490
5,626	$	5,124	$	4,614

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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		infrastructure		agricultural
objectives		maintenance		products

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CONTACT INFORMATION

Corporate Office

1627 East Walnut St.

Seguin, Texas 78155

Ron Robinson, President & CEO

Phone: [phone]

Email: [e-mail]

Dan Malone, Executive Vice President,

CFO & Investor Relations Director

ALAMO GROUP INC.

A company for all seasons…

Phone: [phone]

Email: [e-mail]

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