Shyft : Fourth Quarter 2020 Earnings Call Supplemental Presentation

Fourth Quarter 2020 Earnings Conference Call

03.11.2021

Forward-Looking Statement

This presentation contains several forward-looking statements that are not historical facts, including our revenue and earnings guidance, all other information provided with respect to our outlook for 2021 and future periods, and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations that are not historical facts. These statements can be identified by words such as "believe," "expect," "intend," "potential," "future," "may," "will," "should," and similar expressions regarding future expectations. Furthermore, statements contained in this presentation relating to the COVID-19 pandemic, the impact of which remains inherently uncertain on our financial results, are forward-looking statements. These forward-looking statements involve various known and unknown risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, and likelihood. Therefore, actual performance and results may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could contribute to these differences include future developments relating to the COVID-19 pandemic, including governmental responses, supply chain shortages, and potential labor issues; operational and other complications that may arise affecting the implementation of our plans and business objectives; continued pressures caused by economic conditions including weaknesses resulting from the COVID-19 pandemic; challenges that may arise in connection with the integration of new businesses or assets we acquire or the disposition of assets; restructuring of our operations, and/or our expansion into new geographic markets; issues unique to government contracting, such as competitive bidding processes, qualification requirements, and delays or changes in funding; disruptions within our dealer network; changes in our relationships with major customers, suppliers, or other business partners; changes in the demand or supply of products within our markets or raw materials needed to manufacture those products; and changes in laws and regulations affecting our business. Other factors that could affect outcomes are set forth in our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission (SEC), which are available at www.sec.govor our website. All forward-looking statements in this release are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update or revise any forward-looking statements in this release, whether as a result of new information, future events, or otherwise.

The Financial Results Included Within This Presentation Are From

Continuing Operations Unless Otherwise Noted

© 2021 THE SHYFT GROUP, INC.	2

"By all accounts, 2020 proved to be a historic and transformative year for The Shyft Group, as we strategically aligned our product portfolio to take advantage of more profitable growth markets after the sale of the ER business.

We emerge from 2020 in a stronger position, well equipped to drive growth in each of our businesses for years to come."

Daryl Adams

President and CEO, The Shyft Group

© 2021 THE SHYFT GROUP, INC.	3

Current Environment

Segment (% sales) Backlog

Fleet Vehicle Services (~73%)

$427M

Up 40%

Specialty Vehicles (~27%)

$51M

Up 67%

Highlights & Learnings

• Demand for parcel delivery vehicles continues to accelerate - orders ramping, including truck body
• Velocity orders validate the need for our Class 2/3 solutions
• Investing in facility expansions across the U.S. to support growth
• Increased focus on EV in support of customers growing interest in transitioning to greener technology
• Monitoring semi-conductor chip shortage on OEM's
• Motorcoach chassis demand continues - strong backlog
• Service body demand robust, expanding to other Shyft locations - DuraMag performed well in Q4 and integration on track
• Isuzu new Class 5 vehicle announced in February

© 2021 THE SHYFT GROUP, INC.	4

2020 Results

		Revenue		Adjusted EBITDA
		($ M)		($ M and % of Sales)
	$756.5
								$76.3
	$91.4 USPS	$676.0				$64.0
	$665.1
								8.5%				11.3%
	2019	2020				2019*	2020

*Includes USPS impact of 110 basis points

Delivered record profit year while managing through pandemic

•	2020 Revenue up $10.9M, or 2% (excluding USPS)	•	Adjusted EBITDA up $12.3M, or 19%
	FVS up $6.0M, or 1% (excluding USPS)	•	Adjusted EBITDA margin of 11.3%, up 280 bps
	SV down $0.5M, or essentially flat		FVS Adj EBITDA margin of 17.4%, up 690 bps
			SV Adj EBITDA margin of 10.2%, down 90 bps

© 2021 THE SHYFT GROUP, INC.	5