JOST Werke : Presentation FY 2023 Results

JOST WERKE SE - MARCH 26, 2024

RESULTS FULL YEAR 2023

JOACHIM DÜRR (CEO) & OLIVER GANTZERT (CFO)

Disclaimer

THIS PRESENTATION IS CONFIDENTIAL AND MUST NOT BE RELEASED, PUBLISHED, TRANSMITTED OR DISTRIBUTED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL.

This presentation (the "Presentation") was specifically prepared by JOST Werke SE (the "Company") for informational purposes only. It is intended to provide a general overview of the Company's business and does not purport to include all aspects and details regarding the Company. This Presentation must not be reproduced in any form, passed on or otherwise made available, directly or indirectly, to any other person, or published or otherwise disclosed, in whole or in part, for any purpose, without prior written consent by the Company. Neither the Company nor any of its directors, officers, employees or advisors, nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the fairness, accuracy or completeness of the information contained in the Presentation or of the views given or implied. Neither the Company nor any of its respective directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith.

This Presentation is neither an advertisement nor a prospectus and does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation, invitation or inducement to purchase, subscribe for, under- write or otherwise acquire any securities of the Company, nor should it, or any part of it, form the basis of or be relied on in connection with or act as any inducement to enter into any contract to purchase or subscribe for any securities of the Company, nor shall it, or any part of it, form the basis of or be relied on in connection with any contract or commitment or investment decision whatsoever. This Presentation and the information and opinions contained therein are selective in nature and do not purport to contain all information that may be required to evaluate the Company and/or its shares. The information and opinions contained in this Presentation are provided as of the date of this Presentation and may be subject to updating, revision, amendment or change without notice. Neither the Company nor any of its directors, officers, employees or advisors are under any obligation to update or keep current the information contained in this Presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information whether as a result of new information, future events or otherwise.

This Presentation contains forward-looking statements relating to matters that are not historical facts. These statements reflect the Company's current knowledge, intentions and beliefs as well as its current expectations and projections about future events, including the Company's prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. Forward-looking statements can be identified by the context of such statements or words such as "anticipate," "believe", "estimate", "expect", "forecast", "intend", "plan", "project", "target", "may", "will", "would", "could" or "should" or similar terminology. By their nature, forward-looking statements are subject to a number of risks, uncertainties and assumptions, many of which are beyond the Company's control, that could cause the Company's actual results and performance to differ materially from and adversely affect any expected future results or performance expressed or implied by any forward-looking statements as a result of various factors (including global economic conditions, changed market conditions, competition, costs of compliance, changing political, legal, economic and other conditions). Forward-looking statements should not therefore

be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and no representation or warranty, express or implied, is made regarding future performance. In addition, even if the development of the Company's prospects, growth, strategies and the industry in which it operates are consistent with the forward-looking statements contained in this Presentation or past performance, those developments may not be indicative of the Company's results, liquidity or financial position or of results or developments in subsequent periods not covered by this Presentation. The Company undertakes no obligation to release the results of any revisions to any forward-looking statements in this Presentation that may occur due to any change in its expectations or to reflect events or circumstances after the date of this Presentation.

To the extent available, the industry and market data contained in this Presentation is derived from third-party sources. Third-party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. In addition, certain information in this Presentation is selective and may not necessarily be representative for the Company. Further, some of the industry and market data contained in this Presentation is derived from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, no reliance should be placed on the industry or market data contained in this Presentation.

Subject to limited exceptions described below, the information contained in this Presentation is not to be released, published, transmitted or distributed within or into the United States of America ("United States"), Australia, Canada or Japan and does not constitute an offer of securities for sale in any of these jurisdictions. Any securities offered by the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States and such securities may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. This Presentation does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person or in any jurisdiction to whom or in which such offer or solicitation is unlawful. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

2	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

Strategic Highlights in 2023

Expansion of product portfolio through M&As and R&D

Expansion of geographical footprint through a greenfield investment in India and M&As in Brazil and Finland

New OEMs customer contracts in Transport and Agriculture as well as in Construction to boost mid-term growth

Further improvements in carbon footprint reduction

to support customers' needs and mitigate climate change

Groupwide gains in production efficiency paired with product portfolio adjustments enhanced profitability in all segments

3	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

JOST Expands its Product Portfolio Through M&A and R&D

+ Three-point linkages

+ Coupling hooks

+ Pick-up hitches

+ Counterweights

+ Centerboom

+ BusLink Systems

4	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

Financial Highlights in 2023

Sales at €1.25bn on prior year's level, with organic sales in Transport up by +9% offsetting decline in Agriculture of organic -25%

Adj. EBIT margin expanded significantly by 1.5pp to 11.3% and adj. EBIT reached at €141m a new record level

Free cashflow increased significantly to €+112m

and leverage improved to below 1.0x net debt/adj. EBITDA

Adj. EPS went up by +8% to €6.24 per share

Dividend proposal raised by +7% to €1.50 per share

5	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

Financial Targets for 2023 Achieved

	Sales		On previous year's level		-1% to
		(2022: €1,265m)		€1,250m
	Adj. EBIT		High-single digit growth y-o-y		+14% to
		(2022: €124m)		€141m
	Adj. EBIT		Significant increase		11.3%
	margin		(2022: 9.8 %)
	Capex		Approx. 2.5% of sales		2.5%
	(% of sales)1		(2022: 2.6%)
	Leverage		Lower than previous year		0.998x
		(2022: 1.278x)
1: Excluding M&A

6	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

Market Development FY 2023 vs. FY 2022

EUROPE

NORTH AMERICA

ASIA-PACIFIC-AFRICA

INDUSTRY (volume)

TRUCK MARKET

TRAILER MARKET

TRACTOR MARKET

+14%

-11%

-4%

Robust demand for trucks driven by pent-up demand.

Trailer market contracted, especially in H2 2023.

Tractor market declined due to uncertainties regarding inflation and interest rates.

Production of class 8 truck

+4% remained strong, softening some in H2 2023.

Trailer demand grew further

+4% from an already high level supported by strong economy.

Demand for compact and small -9% tractors slumped with only

high HP tractors achieving growth.

Truck market in China recovered

+31% some, up from very low levels. Demand in other APA countries remained strong.

Robust trailer demand, driven

+11% by India and the Pacific region. China, too, started a slow recovery.

ORGANIC

Strong demand for trucks -3% compensated for weakness in

trailer and agriculture.

Sharp decline in agricultural -8% compact market could not by

offset by growth in Transport.

JOST benefited from strong

+30% demand in APA as well as the slowly recovering Chinese market.

Note: Market estimates based on LMC, Clear Consulting, FTR, OEM announcements (March 2024)

7	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

KEY FINANCIALS FY 2023

8	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

Europe - Profitability Improvements Despite Weakness in Agriculture

Sales (€m)

Adj. EBIT (€m)

Reported			-1.1%
Growth
696		688
Organic	-2.6%

	FY 2022				FY 2023
Adj. EBIT
	6.0%				6.7%
margin (%)
Adj. EBIT					10.5%
growth (%)

41.846.2

								4.5%
								-5.7%
160		167
Q4 2022			Q4 2023
	3.1%				1.5%
								-49.6%

4.9

2.5

• Strong demand for trucks partially offset weakness in trailer and agriculture
• Consolidation of Crenlo do Brasil and LH Lift increased sales in Q4 2023

• FX headwinds of -2.0pp burdened sales in FY 2023

• Efficiency gains and strict cost control supported margin improvement in FY 2023
• Stable supply chains and lower freight rates

• Q4 burdened by negative product mix and stronger seasonality
• Longer year-end breaks in Ag plants to safeguard operational efficiency

FY 2022

FY 2023

Q4 2022

Q4 2023

9	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS

North America - Strong Profitability Boost Despite Sales Decline

Sales (€m)

Reported			-10.6%
Growth
Organic
		-8.1%
	396	354

FY 2022

FY 2023

		-32.9%
		-28.7%
100
		67
Q4 2022		Q4 2023

• Robust demand for Transport products in 2023

• FX headwinds of -2.5pp in FY 2023
• Sharp decline in compact-loader market
• Strong seasonality in Q4 paired with normalization of demand for trucks and trailers

Adj. EBIT (€m)

Adj. EBIT margin (%)

Adj. EBIT growth (%)

9.0%

35.7

12.6%

25.4%

44.8

7.8%				22.5%
			94.0%

15.1

7.8

• Boost in profitability through efficiency gains and portfolio clean-ups
• Positive one-off effects in Q4 due to lump-sum price adjustments for FY 2023
• Stable supply chains and lower sea freight
• Q4: strong aftermarket

FY 2022

FY 2023

Q4 2022

Q4 2023

10	JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL FY 2023 RESULTS