Investor Presentation

August 2018

ALAMO GROUP INC.A company for all seasons…

SAFE HARBOR STATEMENT

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, changes in U.S. trade policy, negative economic impacts resulting from geopolitical events, 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, 2017, 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.

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WHO WE ARE

Organizational Highlights

• Three Operating Divisions• Industrial• Agricultural• Europe

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

• Approximately 3,400 employees• Primarily sell through an international

network of approximately 6,000 independent dealers and distributors

• Founded in 1969• Corporate Headquarters

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

since 1993 - current annual rate $0.44

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

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

CORPORATE GOVERNANCE

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SUSTAINABILITY

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Our Bush Hog plant in Alabama utilizes movable fixtures to improve assembly process ergonomics and employee safety

Our Alamo Industrial plant in Texas celebrated 10 years with no lost time accidents

Many of our vacuum truck products offer water recycling technology, allowing our customers to operate more efficiently, burn less fuel and conserve water resources

Alamo is committed to a sustainable model for growth and profitability. This applies to both our internal processes as well as the products we manufacture. Through investments, incentives, process redesign and product development, we have targeted continuous improvements including reductions in non-renewable energy consumption, non-recycled waste production and green house gas emissions. As part of our commitment, employee health and safety is a priority and the safety performance of each of our operations is stringently monitored.

SALES AND EARNINGS OVERVIEW

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SALES BY DIVISION

Industrial

Agricultural

Europe

(U.S. $ millions)

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INDUSTRIAL DIVISION

• 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™, Old Dominion Brush™, R.P.M. Tech™ and other brand names

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INDUSTRIAL PRODUCTS

Gradall Wheeled Excavator

Tiger Triple Flail Mower

Super Products Vacuum Truck Alamo Industrial Boom Arm Mower

Henke Snowplow Nite-Hawk Parking Lot Street Sweeper

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AGRICULTURAL DIVISION

• 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

• 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®, Herder℠, Santa Izabel™ and other brand names

•Farmers•Ranchers

•Mowing contractors•Hobby farmers

•Other specialty markets

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AGRICULTURAL PRODUCTS

Bush Hog Hay Rake Rhino Flex Flail Mower

Bush Hog Zero-Turn Radius MowerSchulte 42 foot Rotary Cutter Rhino Flex Wing Mower

Schulte Rock Picker

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EUROPEAN DIVISION

• 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

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EUROPEAN PRODUCTS

Spearhead Rotary Cutter

Bomford Remote Control Mower

Bomford Rotary Mower

McConnel Boom Arm MowerRivard Vacuum Truck

McConnel Agribuggy

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STRATEGIC OBJECTIVES

DRIVE SHAREHOLDER VALUE

Organic Growth

Strategic Acquisitions

Continuous Operational

Improvement

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ACQUISTION STRATEGY

• 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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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,

Old Dominion Brush, R.P.M.

Schulte, Faucheux, Spearhead, Rivard, Tenco , Superior, Herder,

Santa Izabel, R.P.M.

Type of Acquisition Acquisitions

ALAMO ACQUISTIONS

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We have completed 24 acquisitions since 2000

ACQUISTION TIMELINE

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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

ORGANIC GROWTH

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NEW PRODUCT DEVELOPMENT

ENHANCES ORGANIC GROWTH

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Our new product development is focused on the needs of customers, both large and small, for more efficient, safer and user-friendly equipment

Improving customer operating efficiencies, as well as product functionality, manufacturability, serviceability, ergonomics, safety and aesthetics, are key objectives of our new product strategy

Rhino TS10 – the first flex-wing mower developed for tractors under 35hp

Super Products Camel 1200 Vacuum Truck with improved Water Recycling technology reduces water use and improves productivity

Schulte VTX - variable tillage tools for added flexibility and functionality for all field conditions

The redesigned Wausau SnoDozergrows sales by meeting a wider range of airport snow removal applications

Gradall Discovery – a new truck-mounted excavator reduces ownership costs for municipalities

CONTINUOUS OPERATIONAL

IMPROVEMENT

Our objective is to continuously improve our operating efficiencies

Plant Consolidations• The Company has consolidated 10 manufacturing locations in the past 15 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 the combined group’s procurement power through corporate

purchasing initiatives available to all units on a number of purchased components, supplies and services. Through the Company’s procurement office in China, we have 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

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CONTINUOUS IMPROVEMENT FOCUS

DRIVES OUR PRODUCTION STRATEGY

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

Our improvement initiatives enhance our margins which benefit further from 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

Bush Hog - Selma, Alabama

Rivard – Daumeray, France

McConnel - Ludlow, England

Alamo Industrial – Seguin, Texas

Gradall – New Philadelphia, Ohio

Fiber laser plate cutting center

We make capital investments to continuously improve the efficiency and productive capacity of our manufacturing facilities, as well as the quality of the products we manufacture

Alamo has a long term strategy to have fewer but larger plants to provide the scale necessary to justify more automation. more reliable output, reduced cycle times, efficiency gains, and greater flexibility are positive outcomes from these investments

Robotic welder used to fabricate large tanks and frames

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Laser tube cutter

Automatic plate handling system

CONTINUOUS IMPROVEMENT FOCUS

DRIVES OUR PRODUCTION STRATEGY

RESULTS OF

OPERATIONAL IMPROVEMENTS

Sales Per

Employee

2008

$218,000

2017

$278,000

+28%

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6/30/2018 6/30/2017 12/31/2017 12/31/2016 12/31/2015

Revenue $ 495,212 $ 428,665 $ 912,380 $ 844,748 $ 879,577

Gross Margin $ 126,711 $ 108,843 $ 234,693 $ 205,099 $ 202,448

% of Revenue 25.6% 25.4% 25.7% 24.3% 23.0%

Operating Expenses $ 78,564 $ 68,285 $ 145,955 $ 137,479 $ 135,920

Operating Income $ 48,147 $ 40,558 $ 88,738 $ 67,620 $ 66,528

% of Revenue 9.7% 9.5% 9.7% 8.0% 7.6%

Depreciation - PP&E $ 6,242 $ 5,560 $ 11,616 $ 11,267 $ 11,381

Depreciation - Rental $ 2,983 $ 2,804 $ 5,531 $ 6,429 $ 7,607

Amortization $ 1866 $ 1664 $ 3,520 $ 3,317 $ 3,327

Net Income $ 33,354 $ 24,483 $ 44,315 $ 40,045 $ 43,209

Diluted Earnings Per Share $ 2.84 $ 2.10 $ 3.79 $ 3.46 $ 3.76

Adjusted Net Income (1) $ 33,354 $ 24,483 $ 54,551 $ 40,045 $ 43,209

Adjusted Diluted Earnings Per Share (1) $ 2.84 $ 2.10 $ 4.67 $ 3.46 $ 3.76

EBITDA (2) $ 59,238 $ 50,586 $ 109,405 $ 88,633 $ 88,843

Six Months Ended Fiscal Year Ended

(in U.S. $ thousands)

INCOME STATEMENT

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(1) For year ended 2017 Adjusted Net Income and Adjusted Diluted Earnings Per Share are each adjusted to exclude a one-time net charge of $10.2 million relating to the 2017 U.S. tax reform bill enacted in December 2017, both are non-GAAP financial measures.(2) EBITDA is a non-GAAP financial measure defined for this purpose as the sum of operating income and depreciation and amortization.

6/30/2018 6/30/2017 12/31/2017 12/31/2016 12/31/2015

Current Assets $ 468,680 $ 437,990 $ 392,527 $ 327,618 $ 362,886

Total Assets $ 725,379 $ 680,864 $ 639,671 $ 552,776 $ 603,503

Current Liabilities $ 100,651 $ 95,448 $ 101,363 $ 78,700 $ 85,024

Working Capital $ 368,029 $ 342,542 $ 291,164 $ 248,918 $ 277,862

Total Debt $ 119,017 $ 146,097 $ 60,082 $ 70,090 $ 144,083

Total Debt Net of Cash $ 75,415 $ 71,460 $ 34,709 $ 53,297 $ 117,161

Shareholders' Equity $ 474,447 $ 422,911 $ 449,108 $ 387,717 $ 360,469

Debt as a % of Capitalization 20.1% 25.7% 11.8% 15.3% 28.6%

Debt Net of Cash as % of Capitalization 13.7% 14.5% 7.2% 12.1% 24.5%

Net Cash from Operating Activities $ (27,714) $ 12,422 $ 70,804 $ 75,784 $ 52,418

Capital Expenditures $ 10,829 $ 6,268 $ 13,490 $ 9,711 $ 15,479

Dividends Paid $ 2,553 $ 2,297 $ 4,614 $ 4,114 $ 3,628

Period Ended Fiscal Year Ended

BALANCE SHEET

(in U.S. $ thousands)

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An integrated strategy for long-

term revenue and earnings

growth

Long-term 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

A PROVEN RECIPE FOR GROWTH

WHY ALAMO, WHY NOW?

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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, CFO & Investor Relations DirectorPhone: 830-372-9581Email: dmalone@alamo-group.com

CONTACT INFORMATION

ALAMO GROUP INC.A company for all seasons…