JOST Werke AG

Investor Presentation • May 28, 2019

Q1 2019 results

Lars Brorsen (CEO) Dr. Christian Terlinde (CFO)

May 28, 2019

1. Highlights Q1 2019

• 2. Market outlook
• 3. Detailed results review
• 4. Company outlook
• 5. Q&A

s e al S	Group sales +4.9% to €199.5m Successful start in the year:
	consecutive quarter +31.5% €40.4m Growth in North America continues for eighth to
	Sales in Europe and APA stable on an	elevated level despite weaker underlying markets
s g n ni r a E	Adjusted EBIT +0.8% to €23.9m
	Adjusted EBIT margin at 12.0% despite rising personnel costs in Europe and heavily growing share of OEM business in North America
s t n e m t s e v n I	Investments +19.5% to €3.3m
	Investments in welding robots as wells as automation of assembly processes to increase throughput, capacity and efficiency, especially in the U.S.
	Localization of additional products in India to further increase production flexibility in APA
Outlook confirmed		JOST expects sales and earnings in 2019 to grow in a low-single-digit percentage range compared to the previous year

1. Highlights Q1 2019

• 2. Market outlook
• 3. Detailed results review
• 4. Company outlook
• 5. Q&A

Note: Market estimates based on LMC, Clear Consulting and FTR

Agenda

1. Highlights Q1 2019

2. Market outlook

3. Detailed results review

4. Company outlook

5. Q&A

Group – Successful start from a strong prior-year basis

¹ Reported sales figures do not include sales of Brazil JV

²Operating profit adjusted for PPA effects and exceptionals

• Growth in Q1 2019 driven by continued high activity level in North America and additional market share gains
• Europe and APA stable on a high level despite weakening underlying markets
• Adj. EBIT grew by 0.8%, especially driven by growth in North America
• Adj. EBIT margin affected by:
  • higher personnel costs
  • higher material costs
  • higher share of OEM business in North America
• Investments in efficiency and automation ongoing to reduce impact of rising costs and support future profitable growth

Europe – Sales stable at a high level

¹ Operating profit adjusted for PPA effects and exceptionals

• Sales in Europe remained stable reaching prior year's high level
• Market impact: The negative effect of declining European trailer production in Q1 (-10%) was offset by a robust truck and trading market and the further implementation of JOST upselling strategy
• Adj. EBIT and adj. EBIT margin slightly below prior year mostly due to:
  • rising personnel and material costs in the European segment
• Focus for the year will be on further increasing efficiency across all processes as well as automation in the production

¹ Operating profit adjusted for PPA effects and exceptionals

• JOST continues to grow in North America at a rapid pace, with organic sales up by +21.6%.
• Reported sales grew by +31.5% due to FX-tailwinds of 10%
• Market impact: JOST capitalized on the strong demand for trucks and trailers in North America, strengthening its position with OEM customers and gaining further market shares.
• Adj. EBIT up by +14.3% with adj. EBIT margin below prior year due to:
  • higher share of OEM business temporarily diluting margins
  • higher material costs compared to prior year's quarter due to the introduction of US tariffs for steel, which had not affected Q1 2018 fully.

APA – Sales stable despite weaker overall market

• Successful start into the year in APA with sales reaching prior year's high level despite overall weaker truck and trailer markets in most countries
• Market impact: Truck and trailer production in India and China down significantly. JOST managed to outperform the Chinese market and grow in other countries in the region, offsetting the overall market decline.

Adj. EBIT stable at €4.9m

Adj. EBIT margin also stable at prior year's level of 13.8%

¹ Operating profit adjusted for PPA effects and exceptionals

Net income and EPS improved significantly in Q1 2019

• Adjustments to EBIT mainly from amortization of PPA (non-operating)
• Finance result improved significantly amounting to € -0.8m due to reduction of interest costs achieved through the refinancing.
• Improvements in the finance result and a lower tax rate led to an increase of net income by 18.3% to €14.2m (Q1 2018: €12.0m) with EPS growing to €0.95 (Q1 2018: €0.81).
• Adjusted EPS grew in Q1 2019 by 8.0% to €1.08 (Q1 2018: €1.00)

Further investments into automation and efficiency

Cash conversion rate slightly down due to higher investments in Q1 2019

Key highlights

• In Q1 2019 capex grew by 19.5% to €3.3m reaching 1.7% of sales.
• Investment focus on efficiency increases and automation
• Working capital growth mostly in line with higher activity levels
• NWC as % of sales grew slightly to 21.7%. By year end it is expected to fall below 20% as business seasonality leads to lower NWC in Q4.

¹ Cash flow defined as adjusted EBITDA – capex; cash conversion defined as (adjusted EBITDA – capex)/adjusted EBITDA

² Capex calculated as payments to acquire property, plant and equipment as well as intangible assets

Equity ratio and net debt stable on an excellent level

¹ ROCE=LTM adj. EBIT / interest bearing capital employed (interest bearing capital: equity + financial liabilities (excl. refinancing costs) – cash + provisions for pensions) ² Net debt = Interest-bearing financial liabilities (excl. refinancing costs) – liquid assets

³ Leverage = Net debt/LTM adj. EBITDA

Agenda

1. Highlights Q1 2019

2. Market outlook

• 3. Detailed results review
• 4. Company outlook

5. Q&A

	FY 2018	Outlook 20191
Sales	755	Low-single-digit % growth
Adjusted EBITDA	100	Low-single-digit % growth
Adjusted EBIT	81	Low-single-digit % growth
Adjusted EBIT margin	10.7%	Stable
Capex2 (in % of sales)	20 (2.6%)	~2.5% of sales
Net working capital (in % of sales)	140 (18.5%)	<20%
Leverage3	0.85x	<0.85x

¹ The outlook is based on the assumption of a stable macroeconomic and political environment in 2019

² Capex calculated as payments to acquire property, plant and equipment as well as intangible assets, excluding potential acquisitions

³ Excluding potential acquisitions

Agenda

1. Highlights Q1 2019

2. Market outlook

• 3. Detailed results review
• 4. Company outlook

5. Q&A

Shareholder structure and growing earnings and dividend per share

¹ According to German stock exchange definition 100% of shares qualify as free float

Key figures – Q1 2019

(€ m)	Q1 2019	Q1 2018	yoy
Sales Europe	123.4	123.9	(0.4)%
Sales North America	40.4	30.7	32%
Sales Asia, Pacific and Africa (APA)	35.7	35.6	0%
Sales JOST Werke Group	199.5	190.2	5%
Adjusted EBIT1	23.9	23.7	1%
Adjusted EBIT margin	12.0%	12.5%	(0.5) pp
income2 Adjusted net	16.1	14.8	9%
Adjusted EPS (€)	1.08	1.00	8%
Capex	3.3	2.7	20%
Capex (% of sales)	1.7%	1.4%	0.3pp
ROCE4	18.2%	19.8%	(1.6) pp
rate5 Cash conversion	89.0%	90.3%	(1.3) pp
ratio6 Leverage	0.86x	1.16x	(0.3)

¹ Operating profit adjusted for PPA effects and exceptionals

²Adjusted for exceptionals, PPA, shareholder loan effects and deferred taxes

⁴LTM adj. EBIT/ interest-bearing capital employed; interest-bearing capital: shareholders' equity + financial liabilities – liquid assets + provisions for pensions

⁵Adj. EBITDA – Capex / adj. EBITDA

6 Net debt / adj. EBITDA

Reconciliation of earnings

(€m)	Q1 2019 Reported	Other effects	PPA	Total adjustments	Q1 2019Adjusted
Sales revenues	199.5				199.5
Cost of sale	-148.2	0.1		0.1	-148.1
Gross profit	51.3	0.1	0	0.1	51.4
Selling expenses	-22.0	0.1	6.3	6.4	-15.6
Research and development expenses	-3.2				-3.2
Administrative expenses	-10.4	0.2		0.2	-10.2
Other income / (expenses)	0.6				0.6
Share of JV profit	0.8				0.8
Operating profit (EBIT)	17.2	0.4	6.3	6.7	23.9
Net finance result	-0.8				-0.8
Profit / loss before tax	16.4	0.4	6.3	6.7	23.1
Income taxes	-2.2				-6.9
Profit / loss after taxes	14.2				16.1
Number of shares	14,900,000				14,900,000
Pro forma earnings per share (in €)	0.95				1.08

Impacts of IFRS 16 in 2019 (based on current estimates)

	IFRS 16 on	Effect	FY 2019
L & P	Sales		No effect
	Expenses (from leasing)		Decrease by ~€ 7m
	Depreciation		Increase by ~€ 7m
	Interest expenses		Increase by ~0.5m
	EBITDA		Increase by ~€ 7m
	EBIT		No significant effect
	Earnings after tax		No significant effect
e c et n e a h al s B	Assets		Increase by ~€ 25m
	Liabilities		Increase by ~€ 25m
	Equity ratio		Decrease by ~2pp
w o h fl s a C	Cash flow from operating activities		Increase by ~€ 7m (due to depreciation)
	Cash flow from investing activities		No effect
	Cash flow from financing activities		Decrease by ~€ 7m (due to new liabilities item)
	Cash and cash equivalents		No effect

Further information

Financial Calendar 2019

May 28	Publication of Q1 2019 Results
June 6	dbAccess Conference Berlin 2019, Berlin/Germany
June 27	Warburg Highlights 2019, Hamburg/Germany
August 22	Publication of Q2 2019 Results
Sept.10	dbAccess Cars Conference 2019, Frankfurt/Germany
Sept. 24	Berenberg and Goldman Sachs 8th German Corporate Conference, Munich/Germany
Sept. 25	Baader Investment Conference 2019, Munich/Germany
Nov. 21	Publication of Q3 2019 Results

IR Contact

Romy Acosta Senior Manager Investor Relations

romy.acosta@jost-world.com Phone: +49-6102-295 379 Fax: +49-6102-295 661

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