Mayville Engineering : MEC Investor Presentation – May 2021

Investor Presentation

May 2021

Disclaimer

Forward-Looking Statements

This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "plan," "continue," "estimate," "expect," "may," "will," "project," "predict," "potential," "targeting," "intend," "could," "might," "should," "believe" and similar expressions or their negative. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on management's belief, based on currently available information, as to the outcome and timing of future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed in such forward-looking statements. Forward-looking statements should not be unduly relied upon.

Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to, those described in "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 5, 2021, as such may be amended or supplemented in Part II, Item 1A of our subsequently filed Quarterly Reports on Form 10-Q (including our Quarterly Report filed with the Securities and Exchange Commission on May 5, 2021), and the following: the uncertain negative impacts the coronavirus (COVID-19) has had and will continue to have on our business, financial condition, cash flows, results of operations and supply chain (including future uncertain impacts); failure to compete successfully in our markets; risks relating to developments in the industries in which our customers operate; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; our ability to successfully identify or integrate acquisitions; risks related to entering new markets; our ability to develop new and innovative processes and gain customer acceptance of such processes; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; risks related to our information technology systems and infrastructure; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; political and economic developments, including foreign trade relations and associated tariffs; volatility in the prices or availability of raw materials critical to our business; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our treatment as an S Corporation prior to the consummation of our initial public offering of common stock; and risks related to our employee stock ownership plan's treatment as a tax-qualified retirement plan. These factors are not necessarily all of the important factors that could cause actual results or events differ materially from those expressed in forward-looking statements. Other unknown or unpredictable factors could also cause actual results or events to differ materially from those expressed in the forward-looking statements. All forward-looking statements attributable to us are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

Non-GAAP Financial Measures

Included in this presentation are certain non-GAAP financial measures designed to complement the financial information presented in accordance with generally accepted accounting principles in the United States of America because management believes such measures are useful to investors. Investors should not consider non-GAAP financial measures in isolation or as substitutes for financial information presented in compliance with GAAP. These non-GAAP financial measures are not based on any standardized methodologies prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. Non-GAAP measures that may be contained in this presentation include EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, free cash flow and free cash flow conversion. EBITDA represents net income before interest expense, provision (benefit) for income taxes, depreciation, and amortization. EBITDA Margin represents EBITDA as a percentage of net sales for each period. Adjusted EBITDA represents EBITDA before transaction fees incurred in connection with the acquisition of Defiance Metal Products Co. and our initial public offering, the loss on debt extinguishment relating to our December 2018 credit agreement, non-cash purchase accounting charges including costs recognized on the step-up of acquired inventory and contingent consideration fair value adjustments, one-time increases in deferred compensation and long-term incentive plan expenses related to our initial public offering, stock based compensation expense, and costs specific to the Greenwood facility closure. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of net sales for each period. Free cash flow is defined as Adjusted EBITDA minus capital expenditures minus/plus the change in net working capital. Free cash flow conversion is defined as free cash flow divided by Adjusted EBITDA.

These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. We present Adjusted EBITDA and Adjusted EBITDA Margin as management uses these measures as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

1 | Experience You Can Trust TM

MEC Team

Robert D. Kamphuis

Chairman, President and Chief Executive Officer

Todd M. Butz

Chief Financial Officer

Ryan F. Raber

Executive Vice President - Strategy, Sales & Marketing

2 | Experience You Can Trust TM

MEC Mission Statement

3 | Experience You Can Trust TM

Market Leader with Differentiated Competitive Position

MEC is the Largest U.S. Metal Fabricator(1)

Able to provide the broadest range of production

capabilities…

Prototype & Fabrication		Performance Structures		Tubes		Tanks

…serving a diverse range of end markets…

Sleeper Box

Exhaust Stacks

Chassis

Cab Components

Grab Handles

Platforms &

Bumpers

Roll Over

Bed Components

Cab Components

Exhaust &

Stacks

Bumpers &

Cab Components

Suspension

Components

Components

Fenders

Protection

Thermal Tubes

Skidplates

Sideplates

Systems

Stacks

Engine Tubes

Air Intakes

Charged Air

Coolers

Bed Components

Engine Tubes

Air Intakes

Engine Tubes

Turbo Coolant

Air Intakes

Platforms &

Frame

Tubes

Air Tanks

Fuel Tanks

Ladders

Hoods

Doors

A-Arms

Seat Frames

Frame

Charged Air Coolers

Air Tanks

CARC Painting

Components

Fenders

Components

Oil Fill Caps

Fluid Level Indicators

…resulting in deep and embedded relationships with

customers

(1) Based on 2019 revenue. Peer revenue per The Fabricator Magazine estimates.

4 | Experience You Can Trust TM