JOST Werke AG

Investor Presentation • Nov 11, 2020

RESULTS Q3 2020 JOACHIM DÜRR (CEO) & CHRISTIAN TERLINDE (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 AG (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.

Key Developments – Q3 2020

Strong Q3 2020 despite ongoing pandemic impact: Supported by the acquisition of Ålö, group sales grew by +11% to €197m and adj. EBIT increased by +7% to €20m year-over-year.

Ålö post-merger integration on track: Ålö in line with expectations despite pandemic. Ålö raised group's sales by €44m in Q3 and reached an adj. EBIT margin of 4m despite seasonality in the agricultural business.

Proof of high operational flexibility: Swift adjustment of production volumes, following rapid changes in customer demand in all regions. Gross margin improved to 28.4%

Strong cash generation: Free cash flow improved to € +31.6m. Net Working Capital as % of LTM sales up to 21.1% due to lower sales volumes in H1 2020, but already improving compared to Q2 2020.

Positive net income despite ongoing pandemic disruptions: Reported net income reached €5m, supported by the strong operating business performance in Q3. Adj. net income amounted to €12m.

Market Development Q3 2020 vs. Q3 2019

	EUROPE		NORTH AMERICA		APA
TRUCK	-27%	In Q3 heavy truck production started to recover from severe pandemic impact.	-40%	Class 8 production recovered from plant closures in Q2 and started rising in September	+47%	Chinese market boosted Q3 truck demand further, while South African and the Pacific region starting to recover.
TRAILER	-22%	Trailer markets improved too, but continue to be affected by overall demand weakness	-47%	Trailer market only started to recover at the end of Q3. Demand remains very weak.	-14%	Recovery in China supported trailer production, but markets are still affected, especially in India.
TRACTORS	-5%	Agricultural tractor demand recovered during Q3. Strong growth in Germany was offset by decline in UK, Spain and France	+2%	Demand for high HP tractors started to improve, driven by improving crop prices and grain exports to China
		-16% organic / +14% reported		-28% organic / -4% reported		+26% organic / +21% reported

Note: Market estimates based on LMC, Clear Consulting, FTR as well as truck and tractor OEMs announcements (October 2020) JOST's organic development: adjusted for FX and acquisition effects

KEY FINANCIALS Q3 2020

Europe – Growth Driven by Ålö Acquisition and Improving End Markets

• Sales in Europe grew by +14% to €117m in Q3 2020,
• Ålö contributed €32m to European sales. Organic sales (excl. Ålö and FX) contracted only by -16% to €85m in Q3 2020.
• Growth was supported by the steady recovery of the European truck market. Sales in the agricultural business were affected by the typical Q3 seasonality, although in Europe this was partially offset by postponed sales from Q2.
• Adjusted EBIT grew by +3% to €9.3 compared to previous year.
• Adj. EBIT margin reached 8.0% in Q3 2020, still slightly below previous year's level but significantly up +5.2 pp compared to Q2 2020 (2.8%). Improvement was supported by:
  • − cost-reduction measures carried out in H1, therefore allowing JOST to capitalize on the recovery of the European end markets
  • − Ålö's strong performance in Europe despite seasonality as a result of catchup effects from Q2

North America – Markets Begin to Recover in Q3 but Remain Weak Still

• Sales in North America contracted in Q3 2020 only by -4.2% to €41m
• Ålö contributed €12m in revenues to JOST's North American business, partly compensating the still low demand for trucks and trailers. Organic sales (excl. Ålö and FX) decreased by -28% to €29m.
• The overall production of trucks (-40%) and trailer (-47%) in Q3 2020 was still very weak due to the effects of the pandemic on the North American market
• The proportion of aftermarket sales rose compared to prior year, helping JOST outperform the market.
• Adj. EBIT margin in Q3 2020 reached 6.1%, below previous year's level but up +0.7 pp compared to Q2 2020 (5.4%).
  • − High flexibility in COGS and SG&A as well as high proportion of aftermarket business contributed to improvements in adj. EBIT margin, compared to previous quarter
• − Ålö relocation of its U.S. plant from Telford, Tennessee to Simpsonville, South Carolina, is still ongoing, with some disruptions caused by the pandemic and travel constrains, affecting results in North America

Asia-Pacific-Africa – JOST Improves Position in APA Posting Strong Growth

• JOST's sales in APA grew by +21% to €39m in Q3 2020, compared to previous year
• FX-headwinds amounted to -5.9%. Ålö's contribution to APA sales was only €0.3m. Organic sales growth (excl. Ålö and FX) were up by +26% to €38m
• The strong demand in China, and the stabilization of the markets in South Africa and Oceania more than offset the market drop in India.
• Adj. EBIT in APA grew by +63% to €7.6m, with adj. EBIT margin reaching 19.7% for the first time in JOST's history. This was due to:
  • − A very favorable product mix compared to previous year, with a high proportion of heavy duty products as well as positive pre-buy effects in China
  • − Expense-reduction measures introduced in H1 2020 allowing JOST to capitalize more strongly on the swift market recovery of the region
• − JOST's ability to scale down production in India quickly, cutting costs to limit the negative impact of the poor end markets

Group – JOST Posted Sales and Earnings Growth in Q3 Despite Pandemic

• For the first time in 2020, JOST's sales grew compared to prior year's quarter, up by +11% to €197m.
• Ålö contributed €44m to group sales. Organic sales (excl. Ålö and FX) contracted only by -11% to €153m.
• Despite the ongoing pandemic end markets stabilized in Q3 2020 compared to H1 2020. Positive drivers to growth were:
• − the strong recovery of the Chinese market
• − higher proportion of aftermarket sales in all regions
• − all of JOST's plants were in operation during Q3 2020 without lockdowns
• Adj. EBIT grew by to 7% to €20.3m. Adj. EBIT margin back in the double digit range, reaching 10.3% in Q3, and improving by +4.0 pp compared to Q2 2020 (6.3%)
• JOST's adj. EBIT margin (excl. Ålö) reached strong previous year's level of 10.7%, despite organic sales decline of -11%, highlighting the high flexibility of the business model
• Ålö showed the typical Q3 seasonal weakness of the agricultural industry, but continued to boost JOST's overall earnings with a YTD adj. EBIT margin of 10.7%.

Impact of Ålö's Acquisition on Exceptionals

Development of Earnings After Taxes and EPS

RECONCILIATION OF ADJUSTED EARNINGS Q3 2020 (IN M€)

KEY HIGHLIGHTS

• In Q3 2020 reported net income amounted to €4.6m (Q3 2019: €11.1m) and reported EBIT amounted to €8.3m
• Adjustments to EBIT in Q3 2020 resulted mostly from D&A of PPA as well as acquisition related exceptionals (breakdown on slide 10)
• The negative effect from unrealized currency losses (noncash) amounted to €-1.9m in Q3 and were the main driver for the financial expenses.
• Adjusted earnings after taxes in Q3 amounted to €11.8m only slightly below previous year (Q3 2019: €12.8m). Adjusted EPS amounted to €0.79 (Q3 2019: €0.86).

Development of Equity Ratio and Net Debt

• The increase in financial liabilities due to the acquisition of Ålö led to a reduction of ROCE and equity ratio as well as to an increase of net debt and leverage, compared to year-end. This was further exacerbated by low earnings in H1 2020, as a result of the coronavirus pandemic. Accordingly

• − ROCE fell to 9.6 % and equity ratio declined to 27.1%
• − Net debt rose to €241.0m and leverage increased to 2.65x

• On the back of the strong performance of JOST in Q3, leverage and net debt have improved considerably compared to Q2 2020. Equity ratio remained at 27.1% despite positive net income due to non-cash exchange differences when consolidating foreign operations.

• Liquid assets remained stable at €97m, compared to year-end (€105m), although JOST used €50m cash in Q1 2020 to partially finance the Ålö acquisition and used additional €22.5m cash from operations in Q3 to repay part of the revolving credit line which had been previously drawn.

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

² Net debt = Interest-bearing capital (excl. refinancing costs) – liquid assets

Interest-bearing capital Liquid assets

³ Leverage = Net debt/LTM adj. EBITDA [LTM EBITDA Q3 2020 = € 91m; LTM EBITDA FY 2019 = € 101m]

Strong Cash Generation Profile Remained Intact Despite Pandemic

¹Free cash flow = Operating cash flow – capex

²Cash conversion = (adjusted EBITDA – capex)/adjusted EBITDA

³Capex = Payments to acquire property, plant and equipment + payments to acquire intangible assets

COMMENTARY

• Cash conversion rate remained strong at 83.0%, despite the effects of the coronavirus pandemic on the industry. Free cash flow improved to € +31.6m during Q3 2020.

• Capex in Q3 2020 amounted to € 4.6m or 2.3% of total sales, thus within the expected range of approx. 2.5% of sales for the full year

• The increase in inventories and trade receivables resulted mostly from the consolidation of Ålö. This effect was partially offset by a comparable increase in trade payables. The ramp-up of production in connection with the recovery of the truck and trailer end markets during Q3 also resulted in a slightly elevated working capital.

• NWC as % of LTM sales rose to 21.1% due to significantly lower sales in H1 2020 resulting from the negative impact of the pandemic on JOST's business. However, it also improved compared to the end of H1 2020 (22.3%).

Outlook 2020

Market Outlook for FY 2020

TRUCK

EUROPE NORTH AMERICA APA (30) – (25)%

Demand for heavy duty trucks has improved in H2, but still below 2019 level.

Strong decline due to the pandemic, following an already weak 2019.

TRACTORS

Demand for agricultural tractors is expected to improve during H2, going almost back to pre-pandemic levels

(45) – (40)% 5 – 10%

Production of class 8 trucks has started to improve in H2. Dealer stock is going down and order intake is growing

$$\text{(25)}-\text{(20)}\% \qquad \left{ \begin{array}{c} \text{(20)} \ \text{(25)} \end{array} \right} \qquad \text{(45)}-\text{(40)}\% \qquad \left{ \begin{array}{c} \text{(25)} \ \text{(25)} \end{array} \right} \qquad \text{(26)}-\text{(10)}\%$$

The pandemic has affected trailer production. Recovery of the trailer market is still rather slow.

Demand for agricultural tractors is improving driven by higher crop prices and increased grain exports to China

Expectations for APA improved further driven by the strong recovery in China and Australia

Strong recovery in China boosted trailer demand in the region, but recovery is not as strong as in truck market.

Note: Market estimates for heavy truck based on LMC, Clear Consulting and FTR and OEMs announcements (as of October 2020)

Outlook 2020 – Confirmed

Sales	Single digit percent decline y-o-y (2019: 736m€)
Adj. EBITDA margin	Higher than 10.0%
Adj. EBIT margin	Higher than 7.0%
Capex (in % of sales)	Approx. 2.5% of sales

Executive Summary

JOST had a solid Q3 2020 despite the ongoing pandemic impact. The recovery of the transport markets as well as the agricultural business all contributed to the good result.

Ålö posted a good performance in Q3 despite typical seasonality of the agricultural business. Integration processes continues to advance.

Aftermarket recovered again in Q3, further supporting JOST's business development and proving its flexibility in economic downturns.

JOST will continue to use all instruments available to ensure flexibility and maintain cost and cash focus. Positive results of introduced measures continued into Q3.

As market leader in couplings and agricultural loaders, JOST will continue to invest in R&D to develop and support autonomous and integrated functions.

Truck and trailer markets worldwide should improve further, but will still show the typical Q4 seasonality. We expect a stronger but volatile market environment for 2021.

Q&A Appendix

Further information

Development of JOST's Sales and Adjusted EBIT by Quarter

Earnings in Q3 2020 were driven by the strong recovery in the APA region. Demand in Europe and North America began to recover after the severe market impact of the coronavirus pandemic during Q2 2020. With the exception of China, however, all markets are still being affected by the effects of the pandemic.

Shareholder Structure and Share Information

SHAREHOLDER STRUCTURE AS OF NOVEMBER 12, 2020¹ SHARE INFORMATION

18.0% 8.8% 5.1% 5.0% 5.0% 58.1% Allianz Global Investors Mondrian Universal-Investment-Gesellschaft FMR LLC PMB Management Other 100% free float

ISIN DE000JST4000 Trading symbol JST German Sec. Code Number (WKN) JST400 Shares in issue 14,900,000 Index SDAX Listed since July 20, 2017

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

Financial Calendar 2020

N o v . 1 8	V i r t u a l R o a d S h o w
N o v . 2 5	V i r t u a l R o a d S h o w
N o v . 3 0	B e r e n b e r g E u r o p e a n I n v e s t m e n t C o n f e r e n c e ( v i r t u a l )

Financial Calendar 2021

F e b . 2 3		P u b l i c a t i o n o f P r e l i m i n a r y F Y 2 0 2 0 R e s u l t s
-------------	--	---------------------------------------------------------------------------	--	--	--

• M a r c h 2 5 P u b l i c a t i o n o f F Y 2 0 2 0 R e s u l t s
• M a y 6 A n n u a l G e n e r a l M e e t i n g
• M a y 1 2 P u b l i c a t i o n o f Q 1 2 0 2 1 R e p o r t
• A u g . 1 2 P u b l i c a t i o n o f Q 2 2 0 2 1 R e p o r t
• N o v . 1 1 P u b l i c a t i o n o f Q 3 2 0 2 1 R e p o r t

Contact

I n v e s t o r R e l a t i o n s C o n t a c t : R O M Y A C O S T A H e a d o f I n v e s t o r R e l a t i o n s

J O S T W e r k e A G

S I E M E N S S T R A S S E 2 6 3 2 6 3 N E U - I S E N B U R G G E R M A N Y

E - M A I L : r o m y . a c o s t a @ j o s t - w o r l d . c o m P H O N E : + 4 9 - 6 1 0 2 - 2 9 5 - 379 F A X : + 4 9 - 6 1 0 2 - 295 - 6 6 1

W W W . J O S T - W O R L D . C O M