Investor Presentation

November 2014

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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, 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, 2013, and under the caption “Risk Factors” in Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, 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.

Safe Harbor

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Operating Highlights

• Three Operating Divisions• North American Industrial• North American Agricultural• Europe

• 24 manufacturing locations in the U.S., Canada, England, France and Australia

• Approximately 3,100 employees as of September 30, 2014

• Primarily sell through an international network of 6,100 independent dealers and distributors

• Founded in 1969• Corporate Headquarters

Seguin, Texas• IPO 1993 (NYSE: ALG)• Quarterly dividend paid

since 1993 - current annual rate $0.28

Corporate Profile

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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

tractor mounted mowers backhoes

vegetation maintenance equipment agricultural implements

rotary mowers excavators

flail mowers street sweepers

zero turn radius mowers vacuum trucks

tillage equipment snow removal equipment

front end loaders related aftermarket parts and service • Primarily sold through an international network of over 6,100 independent

dealers and distributors• End users include governmental entities and related contractors, as well as

agricultural, commercial turf and other similar markets

• Products include, among others:

About Alamo Group

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Business Overview

279

342368

456

504

557

455

539

604628

677

776

8.0

13.411.3 11.5

12.4

11.0

18.6

21.1

32.7

28.9

36.1

35.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM

2003 – 2013 Sales & Earnings History (U.S. $ millions) Net Earnings

10 year CAGR (’03 – ’13)Sales 9.3 %Earnings 16.3 %

Net Sales

Net Sales

Net Earnings

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2014 Major Developments

May Acquired Business Units of Specialized Industries, LP

• Largest acquisition in company history

• Adds more than 20% to the top line

• Expands Company’s presence in vacuum trucks and snow removal

• Accretive to shareholders in first full quarter of operations

September Repurchased 7% of the Outstanding Shares from Company’s Largest Shareholder • 849,690 shares at $40.255, a 3% discount to NYSE closing price

• Retired the shares reducing total outstanding shares to 11,256,093 at September 30, 2014

November Public Offering of 1,980,610 Shares Held by Company’s Largest Shareholder• Increased trading liquidity

• Increased research with Bank of America Merrill Lynch and Piper Jaffray initiating coverage

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Sales by Division

0

100

200

300

400

500

600

700

800

2009 2010 2011 2012 2013 LTM

$182 $161 $170 $165 $165 $183

$95 $181 $204 $200 $215 $207

$178

$197$230 $263

$297$386

North AmericanIndustrial

North AmericanAgricultural

Europe

$539

$604

$455

$628$677

$776

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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

• End-Users• State, county and local authorities and other governmental agencies in the United States and internationally• Contractors• Other specialty markets

• Sales and Distribution• 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™ and other brand names.

North American Industrial Division

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Gradall Wheeled Excavator Tiger TrucKat Boom Arm Mower

Super Products Vacuum Truck

Alamo Industrial Twin Side and Rear Mowers

Henke Motor Grader Mounted Snowplow Schwarze Regenerative Air Street Sweeper

Industrial Products

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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

• 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®

and other brand names.

North American Agricultural Division

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Earthmaster Vertical Tillage Implement

Bush Hog Rotary Cutter

Bush Hog Zero Turn Radius MowerSchulte Offset Rotary Cutter

Rhino 15’ Flex Wing Cutter Bush Hog Harrow

Agricultural Products

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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

• Sales and Distribution• Sold direct and through approximately 2,100 dealers and distributors• Marketed under Bomford®, McConnel®, Twose™, Spearhead™, Rousseau™, SMA®, Faucheux™,

Forges Gorce™, Rivard®, Kellands™ and other brand names.

European Division

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Spearhead Rotary Cutter

McConnel Remote Control Mower

Bomford Embankment Mower

Rousseau Boom Arm MowerRivard Vacuum Truck

Kellands Self-Propelled Sprayer

European Products

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Organic Growth

Strategic Acquisitions

Continuous Operational

Improvement

Strategic Objectives Drive Shareholder Value

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Our objective is to continuously improve our operating efficiencies

Plant Consolidations• The Company has closed and consolidated 9 manufacturing locations in the past 10 years

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

Group Purchasing Initiatives• The Company takes advantage of combined group’s procurement power through corporate

purchasing discounts available to all units on a number of purchased components, supplies and services. Through the Company’s procurement office in China, it has been able to eliminate the middleman in a number of international sourcing situations

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

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Results of Operational Improvement

$557.1

$676.8

2,557

2,523

2,400

2,300

2,200

2,500

2,700

2,600

2,800

2,900

3,000

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

2008

Headcount

Sales

HeadcountSales (U.S. $ millions)

2013

Alamo Group has a global manufacturing presence in close proximity to our major markets.

Our manufacturing provides value added benefits to our results which are further enhanced by growing economies of scale.

The Company sources raw materials and components globally to ensure competitiveness.

Our manufacturing capabilities provide us better control over costs, quality, on time deliveries and safety.

Rhino - Gibson City, Illinois

Rivard – Daumeray, France

McConnel - Ludlow, England

Alamo Industrial – Seguin, Texas

Gradall – New Philadelphia, Ohio

Continuous Operational Improvement

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Organic Growth

Our objective is to grow organically at rates in excess of core market growth rates

• Product development • Geographical expansion• Cross selling opportunities• Strength of multiple distribution

networks• Pricing leadership

Organic Growth Drivers

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Strategic Acquisitions

• 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

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

Types of Target

Acquisitions

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Alamo Acquisitions

Market Share Consolidation

Complementary Products for Existing Markets

International Expansion of Existing Products

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

Wausau-Everest

Schwarze, Twose, Schulte, Gradall, Vacall, Henke, Tenco, Kellands

Schulte, Faucheux, Spearhead, Rivard, Tenco , Superior

Type of Acquisition Acquisitions

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Acquisitions Timeline

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We have completed 20 acquisitions since 2000

Continuous Operational

Improvement

Organic

Growth

Strategic Acquisitions

Continuous Operational Improvement provides financial strength to fund Strategic Acquisitions

Strategic Acquisitions increases scale and purchasing power which drive Operational Improvement

Continuous Operational Improvement leads to greater efficiency and controls cost to aid Organic Growth

Organic Growth provides greater scale which allows Operational Improvements to increase shareholder returns

Strategic Acquisitions consolidate share, expand geographic reach and provide complementary products to fuel Organic Growth

Organic Growth strengthens market leadership and expands Strategic Acquisition opportunities

A Proven Recipe for Growth…

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Why Alamo, Why Now?

An integrated strategy for long-

term revenue and earnings

growth

A growing demand for agricultural

attachments

Stability in government spending on

infrastructure maintenance

Financial strength to

support strategic objectives

Leadership position in

niche markets

An incentive system aligned

with performance

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Income Statement

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(in U.S. $ thousands)

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

9/30/14 9/30/13 12/31/13 12/31/12 12/31/11

Revenue 610,778$ 511,231$ 676,836$ 628,402$ 603,593$

Gross Margin 140,856$ 122,159$ 158,510$ 143,512$ 135,085$

% of Revenue 23.1% 23.9% 23.4% 22.8% 22.4%

Operating Expenses 93,903$ 79,533$ 107,773$ 97,507$ 92,347$

Operating Income 46,953$ 42,626$ 50,737$ 45,349$ 49,456$

% of Revenue 7.7% 8.3% 7.5% 7.2% 8.2%

Depreciation & Amortization 8,570$ 6,680$ 9,024$ 10,074$ 10,606$

Net Income 29,800$ 30,070$ 36,094$ 28,903$ 32,687$

% of Revenue 4.9% 5.9% 5.3% 4.6% 5.4%

Diluted Earnings Per Share 2.43$ 2.47$ 2.96$ 2.40$ 2.73$

EBITDA (1)

55,523$ 49,306$ 59,761$ 55,423$ 60,062$

Nine Months Ending Fiscal Year Ending

(in U.S. $ thousands)

Balance Sheet

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9/30/14 9/30/13 12/31/13 12/31/12 12/31/11

Current Assets 414,274$ 348,074$ 336,953$ 306,800$ 276,341$

Total Assets 654,340$ 449,644$ 438,476$ 404,339$ 381,665$

Current Liabilities 117,939$ 94,692$ 80,621$ 78,128$ 75,805$

Working Capital 296,335$ 253,382$ 256,332$ 228,672$ 200,536$

Total Debt 190,857$ 589$ 428$ 706$ 9,811$

Total Debt Net of Cash 152,213$ (53,014)$ (63,532)$ (47,585)$ (477)$

Shareholders' Equity 337,464$ 340,199$ 350,465$ 310,286$ 277,276$

Total Debt as a % of Capitalization 36.1% 0.2% 0.1% 0.2% 3.4%

Total Debt Net of Cash as a % of Capitalization31.1% -18.5% -22.1% -18.1% -0.2%

Net Cash provided (used) by Operating Activities24,410$ 16,954$ 31,627$ 51,263$ 10,667$

Capital Expenditures 6,689$ 9,910$ 13,639$ 4,654$ 5,766$

Dividends Paid 2,539$ 2,526$ 3,371$ 2,854$ 2,845$

Nine Months Ending Fiscal Year Ending

Corporate Governance

Alamo Group is dedicated to enhancing shareholder value over the long term in a manner that is consistent with high 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. 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 Commitment” tab of our website at www.alamo-group.com

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Corporate Office1627 East Walnut St., Seguin, Texas 78155

Ron Robinson, President & CEOPhone: 830-372-9615Email: rrobinson@alamo-group.com

Dan Malone, Executive Vice President & CFOPhone: 830-372-9581Email: dmalone@alamo-group.com

Bob George, Investor Relations Director,Vice President, Secretary & TreasurerPhone: 830-372-9621Email: bgeorge@alamo-group.com

Contact Information

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