JOST Werke (JST) Investor Update summary

Strategic growth initiatives

• Announced and executed two acquisitions (Crenlo do Brasil, LH Lift) and a greenfield investment in India to expand the agricultural and off-highway business, targeting new regions and customers and strengthening the global market position.

• Acquisitions provide immediate access to the Brazilian market and blue-chip OEM customers, while expanding the product portfolio and cross-selling opportunities.

• New plant in Chennai, India, increases manufacturing footprint in Asia, diversifies supply base, and reduces dependency on China.

• Initiatives close regional white spots, enhance operational flexibility, and strengthen local-for-local manufacturing.

• Investments target operational synergies and broaden the supplier network.

Financial impact and transaction details

• Acquisitions expected to add €100 million in annual revenues and €10–12 million in adjusted EBITDA, increasing sales and adjusted EBITDA by 7–8% on a full-year basis.

• Combined enterprise value of €56 million, representing a 5.1x EBITDA multiple, financed through existing cash and revolving credit facility.

• Leverage to remain well below the 2.0x–2.2x threshold, with minimal impact from the transactions.

• Integration of new companies effective September 1, 2023, with no expected regulatory issues.

• Purchase price allocation (PPA) expected to be low, in the single-digit million range annually.

Market and product expansion

• Agricultural segment to rise from 25% to 28–29% of total revenues, further diversifying the product and regional mix.

• Access to new blue-chip OEM customers in Brazil and Asia, with potential to reach 30% market share in Brazilian loaders.

• Loader market in Brazil estimated at 15,000 units, with potential for additional €100 million in sales as network and aftermarket services grow.

• India investment primarily serves global markets but is generating new local opportunities with Indian OEMs.

• Expanded manufacturing footprint in Brazil, Finland, China, and India increases flexibility and reduces logistics costs.