ALAMO GROUP INCA 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 T A T I O N

August 2019

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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, competition, weather, 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 Annual Report on Form

10-K for the year ended December 31, 2018, as well as other risks and uncertainties listed from time to time in

the Company’s SEC filings. The Company does not undertake any obligations 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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SAFE HARBOR STATEMENT

Organizational Highlights

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)• Quarterly dividend paid since 1993

– current annual rate $0.48

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WHO WE ARE

• Three Operating Divisions

• Industrial

• Agricultural

• Europe

• 29 manufacturing locations in the U.S.,

Canada, England, France, The Netherlands,

Australia and Brazil

• Approximately 3,650 employees

• Primarily sell through an international

network of approximately 6,000 independent

dealers and distributorsBomford Mulcher Mower

Alamo Industrial Under Guardrail Mower

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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

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 of our

directors, officers and employees worldwide.

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CORPORATE GOVERNANCE

Tiger Railway Mower

Schwarze Street Sweeper

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.

Our Bush Hog plant in Alabama

utilizes movable fixtures to

improve assembly process

ergonomics and employee safety

Our Alamo Industrial plant in

Texas celebrated 10 years with

no lost time accidents

Many of our vacuum truck products

offer water recycling technology,

allowing our customers to operate

more efficiently, burn less fuel and

conserve water resources

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SUSTAINABILITY

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SALES AND EARNINGS OVERVIEW

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$165 $189 $173 $155 $162 $175

$219 $214 $208 $206 $227$235

$298

$436 $499 $484$523

$599

0

100

200

300

400

500

600

700

800

900

1,000

1,100

2013 2014 2015 2016 2017 2018

Europe Agricultural Industrial

$682

$839$880

$845

$912

$1,009

(U.S. $ Millions)Net Sales

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SALES BY DIVISION

$

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Tractor mounted mowers, street

sweeping equipment, excavators,

vacuum trucks, snow removal

equipment and replacement parts

Equipment for maintenance on

and around highways, airports,

military installations, recreational

areas, commercial landscape and

other specialty markets

Gradall Highway Speed Wheeled Excavator

Super Products Sewer Cleaner

Alamo Industrial Municipal Prime Mover

End Users

• State, county and local authorities and other governmental agencies in the United States and internationally

• Contractors• Other specialty markets

Tiger Triple Flail Mower

Schwarze Updraft Sweeper

Henke Front & Wing Snow Plows

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INDUSTRIAL DIVISION

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• 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 Dominion Brush™, R.P.M. Tech™ and other brand names

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INDUSTRIAL DIVISION

Sales and Distribution

RPM Loader Mounted Snow Blower

Vacall Sweeper/Vacuum

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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,

other ag implements, related

replacement parts and other

agricultural aftermarket wear and

spare parts

Clear brush, maintain pastures and

unused farmland, shred crop stubble,

hay-making, tillage, rock removal and

general farm operations

End Users• Farmers• Ranchers• Mowing contractors• Hobby farmers• Other specialty markets

Bush Hog Hay Rake

Rhino Flex Flail Mower Schulte Rock Picker

Schulte 42 Foot Rotary Cutter Bush Hog Zero-Turn Radius Mower

Rhino Flex Wing Mower

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AGRICULTURAL DIVISION

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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 names

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AGRICULTURAL DIVISION

Bush Hog Multi Spindle Rotary Mower

Schulte Flexwing Mower with Flex Arm

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Hedge and grass cutters,

front-end loaders and

backhoes, mowers,

cultivators, and other ag

implements, vacuum trucks,

jetting systems, trenchers and

related replacement parts

End Users

• Agricultural markets

• Governmental agencies

• Contractors

• Other specialty markets

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McConnel Boom Arm Mower

Bomford Rotary Mower

EUROPEAN DIVISION

Rivard Trencher

McConnel Agribuggy Votex Flail Mower

Rivard Vacuum Truck

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Sales and Distribution

EUROPEAN DIVISION

• 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

Makers™, Roberine™, Herder™ and other

brand names

Conver Weed Harvester Work Boat

McConnel Triple Flail Mower

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STRATEGIC OBJECTIVES DRIVE SHAREHOLDER VALUE

Organic Growth

Continuous

Operational

Improvement

Strategic

Acquisitions

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Types of Targeted Acquisitions

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

• 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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ACQUISITION STRATEGY

Conver Mowing Boat

Bomford Rotary Mower

Complementary Products

for Existing Markets

Schwarze, Twose, Schulte, Gradall, Vacall, Henke, Tenco, Kellands, Old Dominion Brush,

R.P.M. , Conver, Herder, Roberine, Precision Makers,

Votex

Type of Acquisition Acquisitions

Market Share Consolidation

Schulte, Twose, Valu-Bilt, Rousseau, Tenco, Nite-Hawk, Bush Hog, Spearhead, Super

Products, Wausau-Everest

International Expansion of Existing Products

Schulte, Faucheux, Spearhead, Rivard, Tenco, Superior, Herder,

Santa Izabel, R.P.M., Conver, Roberine, Precision Makers,

Votex

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ALAMO ACQUISITIONS

RPM Rail Mounted Snow Removal System

Votex Flail Slope & Bank Mower

Henke Plow Wing Combo

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ACQUISTION TIMELINE

We have completed 25

acquisitions since 2000

ORGANIC GROWTH

Organic Growth Drivers

Our objective is to grow organically

at rates in excess of core market

growth rates

• Geographical expansion

• Product development

• Cross selling opportunities

• Strength of multiple distribution networks

• Pricing leadership

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McConnel Robotic Flail Mower

Schulte Disc Harrow

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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 new product

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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NEW PRODUCT DEVELOPMENT ENHANCES ORGANIC GROWTH

Gradall Discovery – a new truck-

mounted excavator reduces ownership

costs for municipalities

Alamo Industrial Mantis wide area

Mower

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Our objective is to continuously improve our operating efficiencies

Investments in Technology

• The Company has continually invested in

more automated equipment to reduce

labor input and has all operating units on

or moving to a common ERP platform to

ensure timely flow of information

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

CONTINUOUS OPERATIONAL IMPROVEMENT

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 13

manufacturing plants in the past 20 years

NiteHawk Parking Lot Sweeper

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The Company sources raw

materials and components

globally to ensure

competitiveness

Alamo Group has a global

manufacturing presence in close

proximity to our major markets

Our improvement initiatives

enhance our margins which

benefit further from growing

economies of scale

Our manufacturing

capabilities provide us better

control over costs, quality, on-

time deliveries and safety

McConnel – Ludlow, England

Alamo Industrial – Seguin, Texas

Bush Hog – Selma, Alabama Rivard – Daumeray, France

Gradall – New Philadelphia, Ohio

CONTINUOUS IMPROVEMENT FOCUS DRIVES OUR PRODUCTION STRATEGY

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CONTINUOUS IMPROVEMENT FOCUS DRIVES OUR PRODUCTION STRATEGY

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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

Fiber laser plate cutting center

Robotic welder used to fabricate large tanks and frames

Laser tube cutter

Automatic plate handling system

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Sales Per Employee

2008$218,000

2018$291,000

+33%

RESULTS OF OPERATIONAL IMPROVEMENTS

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INCOME STATEMENT( In U.S. $ Thousands)

Six Months Ended Fiscal Year Ended

6/30/19 6/30/18 12/31/18 12/31/17 12/31/16

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 $84,486 $78,564 $155,027 $145,955 $137,479

Operating Income $51,955 $48,147 $101,088 $88,738 $67,620

% of Revenue 9.5% 9.7% 10.0% 9.7% 8.0%

Depreciation - PP&E $6,868 $6,242 $12,884 $11,616 $11,267

Depreciation – Rental Fleet $4,323 $2,983 $6,725 $5,531 $6,429

Amortization $2,079 $1,866 $3,726 $3,520 $3,317

Net Income $35,920 $33,354 $73,486 $44,315 $40,045

Diluted Earnings Per Share $3.05 $2.84 $6.25 $3.79 $3.46

Adjusted Net Income (1) $35,920 $33,354 $70,155 $54,551 $40,045

Adjusted Diluted Earnings Per Share (1) $3.05 $2.84 $ 5.97 $ 4.67 $3.46

EBITDA (2) $65,225 $59,238 $124,423 $109,405 $88,633

(1) For year ended 2017 Adjusted Net Income and Adjusted Diluted Earnings Per Share are each adjusted to exclude a one-time net charge of $10.2 million relating to the 2017 U.S. tax reform bill enacted in December 2017. For year ended 2018 the results include a $3.3 million favorable adjustment to the provisional tax reform expense recorded in 2017, both are non-GAAP financial measures.

(2) EBITDA is a non-GAAP financial measure defined for this purpose as the sum of operating income and depreciation and amortization.

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BALANCE SHEET( In U.S. $ Thousands)

Period Ended Fiscal Year Ended

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

Working Capital $418,949 $368,029 $351,991 $291,164 $248,918

Total Debt $166,363 $119,017 $85,298 $60,082 $70,090

Total Debt Net of Cash $118,173 $75,415 $51,255 $34,709 $53,297

Shareholders’ Equity $542,832 $474,447 $507,371 $449,108 $387,717

Debt as a % of Capitalization 23.5% 20.1% 14.4% 11.8% 15.3%

Debt Net of Cash as % of Capitalization 17.9% 13.7% 9.2% 7.2% 12.1%

Net Cash from Operating Activities $899 $(27,714) $12,910 $70,804 $75,784

Capital Expenditures $12,423 $10,829 $26,587 $13,490 $9,711

Dividends Paid $2,808 $2,553 $5,124 $4,614 $4,114

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WHY ALAMO, WHY NOW?

A Proven Recipe For Growth

Long-term growing

demand for agricultural

attachments

Leadership position in

niche markets

An incentive system

aligned with performance

Financial strength to

support strategic

objectives

An integrated strategy for long-term

revenue and earnings growth

Stability in government spending on

infrastructure maintenance

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CONTACT INFORMATION

ALAMO GROUP INC.A company for all seasons…

Corporate Office

1627 East Walnut St., Seguin, Texas 78155

Ron Robinson, President & CEO

Phone: 830-372-9615Email: rrobinson@alamo-group.com

Dan Malone, Executive Vice President,

CFO & Investor Relations Director

Phone: 830-372-9581Email: dmalone@alamo-group.com

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