JOST Werke AG

Investor Presentation • Nov 11, 2021

J O S T W E R K E A G – N O V E M B E R 1 1 , 2 0 2 1

RESULTS Q3 2021 JOACHIM DÜRR (CEO) & CHRISTIAN TERLINDE (CFO)

Disclaimer

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Highlights Q3 2021

JOST increased sales by 28%, achieving sales of €252m in Q3 2021

Adj. EBIT grew by 20% to €24m and adj. EBIT margin was 9.6%

Chinese market downturn and truck market disruptions due to chip shortages was offset by our global presence and wide customer base

Underlying demand in transport and agriculture continues to be strong with demand shifting into 2022 due to supply chain issues

Outlook for 2021 increased: € 1bn sales targeted

Market Development Q3 2021 vs. Q3 2020

KEY FINANCIALS Q3 2021

Europe – Strong Growth Despite Truck OEMs Reducing Production

• 25.1% Strong sales growth in Q3 despite reduction of truck production volumes due to chip shortages combined with the typical summer seasonality
  • Trailer demand remains very high as chip shortage did not affect trailer OEMs
  • FX-tailwinds of +0.6% had limited impact on reported sales growth of +25%
  • Order intake continues to be strong in both transport and agriculture
  • Adj. EBIT grew by +12% to 10.4m€ in Q3 and adj. EBIT margin reached 7.1%
  • Production disruptions due to truck OEMs cancelling orders on short notice had a negative impact on the operating result
  • JOST's price increases to compensate sharply rising material costs (mainly steel) offset the negative impact only partially, as costs continued to hike during the quarter
  • Supply chain constraints and rising international transport costs were an additional burden, especially for JOST's agricultural business

North America – JOST Continues with Accelerated Growth

• In North America, JOST profited from its strong market position and robust demand in both transport and agriculture during Q3
• Sales grew by +63% to 67m€. FX-headwinds were much lower than in previous quarters at only -1.2% with organic sales increasing by +64%
• The strongest sales growth was achieved in the transport business, especially in first-fit sales with OEMs.
• Adj. EBIT grew by +152% to €6.4m outpacing sales and adj. EBIT margin improved to 9.5%
• A much higher capacity utilization and better operating leverage had a positive effect on profitability, especially compared to the still pandemic affected Q3 2020
• A favorable product mix and a stable proportion of aftermarket also supported the strong operating results

Asia-Pacific-Africa – Chinese Market Decline Partially Offset

KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS

• -1.0% Chinese truck demand went down sharply in Q3 as the new China VI Emission Standards came in place as of July 1st, 2021.
  • JOST could partially compensate the decline in China with strong sales growth in all other countries, especially Australia, South Africa and India. Sales growth was additionally supported by FX-tailwinds of +6.2%.
  • Reported sales declined by -1.0% q-o-q
  • The contribution of the agricultural business to APA sales continues to be minor.
  • Adj. EBIT declined by -19% to €6.2m, mostly impacted by the significant drop in Chinese demand in comparison to an unusually high turnover in Q3 2020
  • Adj. EBIT margin in APA continued to be the strongest in the group reaching 16.2% as APA has a more favorable product mix with a higher proportion of heavy-duty and off-road couplings

Group – JOST Posts Strong Results Despite Challenging Environment

KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS

• 27.9% JOST achieved a strong sales growth in Q3 of +27.9% despite typical summer seasonality, the expected down-turn of the Chinese truck market and chip shortages forcing truck OEMs to reduce their production volumes short-term.
  • Adjusted for FX-tailwinds of +1.4%, organic sales grew by +26.5% in Q3 2021.
  • The strongest contribution to sales came from the agricultural business (+36%), as tractor OEMs were not as affected by chip shortages compared to truck OEMs. Sales to truck and trailer customers increased by +26% during Q3.
  • In Q3 2021, group adj. EBIT increased by +20% to €24.3m, compared to prior year.
  • Adj. EBIT margin in Q3 amounted to 9.6% despite production disruptions due to truck OEMs cancelling orders on short notice. The expected sharp decline of the Chinese market also affected the regional mix of the group.
  • JOST could compensate increases in material prices and logistic costs partially by passing through some of the costs to its customers. Full effect of price increases will be seen in 2022.

Net Income and Adjusted EPS Improved Significantly

55 27 34 7 5 46 21 13 4 84 -5 -24 Net Income 9M 2021 Taxes 9M 2021 Finance Result 9M 2021 EBIT 9M 2021 D&A of PPA Jost UK. Ltd disposal Other Exceptionals Adj. EBIT 9M 2021 Finance Result 9M 2021 Proforma Tax Rate 30% Adj. Net Income 9M 2021 Adj. Net Income 9M 2020

KEY HIGHLIGHTS

• In 9M 2021 reported net profit grew significantly to €34m (9M 2020: €5m) and reported EBIT rose significantly to €46m (9M 2020: €12m)
• Adjustments to EBIT in 9M 2021 resulting from D&A of PPA were in line with previous year at € -21m (9M 2020: -22m).
• The disposal of Jost UK Ltd. during Q2 2021 lead to a one-off non-cash impairment of -11m€ and an operating impact of €-2m, which were also adjusted. That effect did not impact Q3.
• The finance result improved to €-5m in 9M 2021 (9M 2020: -7m€) due to better interest rates resulting from lower leverage at the end of 2020 and throughout 2021.
• Assuming a constant pro-forma tax rate of 30%, adj. net income doubled to €55m in 9M 2021 (9M 2020: €27m).
• Adjusted EPS rose to €3.72 in 9M 2021 (9M 2020: €1.84)

RECONCILIATION OF ADJUSTED EARNINGS 9M 2021 (IN M€)

ROCE, Equity Ratio and Leverage Significantly Improved

• ROCE improved considerably compared to FY 2020 now reaching 17.6% due to the continued strong growth in operating result
• Equity ratio grew to 30.8%, surpassing the 30%-mark again after the acquisition of Ålö. The improvement was driven by growing net profits combined with further debt repayments.
• Despite dividend payments of €14.9m in Q2 2021 and repayments of financial liabilities amounting to €34m in 9M 2021, liquid assets only went down by €23m to €85m as of September 30, 2021, compared to year-end (Dec. 31, 2020: €108m)
• Net debt decreased slightly compared to year-end reaching €206m (Dec. 31, 2020: €208m), mostly due to the dividend payment in Q2 2021.
• Leverage improved significantly as a result of a much higher LTM adj. EBITDA decreasing to 1.47x adj. EBITDA (Dec. 31, 2020: 1.997x).

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

³ Leverage = Net debt/LTM adj. EBITDA [LTM EBITDA 9M 2021 = € 140m; LTM EBITDA 9M 2020= € 91m, incl. LTM EBITDA Ålö]

Cash Flow and Working Capital Development

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 increased to 85.3%, boosted by the strong improvement in adj. EBITDA. Free cash flow, however, went down to €+18m due to the strong increase in working capital resulting from the sharp growing business volume, especially in comparison to an unusually low activity level one year ago.

• Capex spending in Q3 2021 was on previous year's level at €4.6m. Capex as a % of sales contracted to 1.8% due to the much higher sales volumes compared to prior year.
• Trade receivables and trade payables increased compared to prior year driven by the higher business activity.
• Inventories went up at a faster pace due not only to the increase in activity levels but also to logistic disruptions and short-term changes in production schedules due to truck OEMs cancelling orders on short notice
• NWC as % of LTM sales improved considerably to 19.4% compared to prior year as a result of the higher sales volume.

OUTLOOK FY 2021

Market Outlook for FY 2021

Class 8 truck production remains strong but is also limited by semi-conductor shortages

Recovery of trailer production has slowed down slightly but remains strong

$$\text{מער} - \text{30\%}$$

20 – 25% (10) – (15)%

Truck production in APA shrinks as Chinese demand slows down in H2 2021. Demand in other APA countries remains strong

Trailer production continues to recover but is affected by the downturn of the Chinse market

Strong recovery of the tractor market in North America continues, boosted by rising commodity prices

Note: Market estimates for heavy truck based on LMC, Clear Consulting and FTR and OEMs announcements (as of October 2021)

JOST New Outlook for 2021

Sales	Growth higher than 25% y-o-y (2020: 794m€)
Adj. EBIT	Growth higher than 30% y-o-y (2020: €73m)
Adj. EBIT margin	Higher than previous year (2020: 9.2 %)
Capex (in % of sales)	Approx. 2.5% of sales

Executive Summary

Strong growth in Q3 2021 despite the expected market decline in China and chip shortages affecting truck production volumes

Logistic disruptions and sharply rising steel prices affected Q3 2021, but selling price increases on JOST's side partially offset the negative impact

North America was JOST's strongest region, reaping the benefits of strong market share growth in the past

Leverage once again below 1.5x and equity ratio above 30% less than two years after the fully debt-financed acquisition of Ålö Group

JOST looks optimistically into the remaining fiscal year despite a challenging environment and has raised its guidance for 2021

Q&A Appendix

Further information

Development of JOST's Sales and Adjusted EBIT by Quarter

Sales and earnings in Q3 2021 show the typical seasonality of the business as markets start to normalize

Shareholder Structure and Share Information

SHAREHOLDER STRUCTURE AS OF NOVEMBER 11, 2021 SHARE INFORMATION

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

Contact Financial Calendar 2021

• 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
• N o v . 2 3 J O S T ' s C a p i t a l M a r k e t s D a y ( 2 : 0 0 p m C E T )
• D e c . 1 6 R o a d S h o w i n L o n d o n

Financial Calendar 2022

• J a n . 1 8 G C C 2 0 2 2 - U n i C r e d i t & K e p l e r C h e u v r e u x
• F e b . 1 P r e l i m i n a r y R e s u l t s F Y 2 0 2 1
• M a r c h 2 4 P u b l i c a t i o n o f F Y 2 0 2 1 A n n u a l G r o u p R e p o r t
• M a y 5 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 2 R e p o r t
• A u g . 1 1 P u b l i c a t i o n o f Q 2 2 0 2 2 R e p o r t
• N o v . 1 4 P u b l i c a t i o n o f Q 3 2 0 2 2 R e p o r t

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