Aebi Schmidt Holding AG Common Stock 17th Annual Midwest IDEAS Conference

Gentlemen. Thank you very much, and good morning, everyone.

My name is Marco Portmann. I'm the Group CFO, and again, introducing you to Aebi Schmidt here today. Aebi Schmidt is a global leader in the special vehicles industry. What that means is we are producing everything you need to keep roads up, to maintain street infrastructure, airport infrastructure, and we're also active in other spaces. Particularly, we empower last mile delivery, walk-in vans, step-up vans, as you may know it, alongside other solutions in the commercial truck space. We also have a little bit of an agriculture business as well. It's a broad portfolio that we're offering. In all our markets that we are active, we are commanding a leadership position. That's part of our strategy. We want to grow to become a leader in the space, either organically or through M&A, or we will exit that space.

We are very targeted and very active. Every market we are in has some highly attractive measures and growth tailwinds that we talk about today. Plus, we are, of course, in a situation where we are creating a lot of momentum at the moment following our acquisition and listing last year of 2025. In July 2025, we acquired the former Shyft Group. Shyft was a listed company on Nasdaq, active in similar spaces. We talk about that in a minute. We were a privately held company until then. Situated, domiciled in Switzerland, grown since 2006, essentially with an active pipeline between organic growth focus and M&A, 20% CAGR revenue growth in the last 10 years. Then 2025 in July, acquiring Shyft, not as a reverse merger, but as an actual acquisition, all paid in equity, and listing ourselves on Nasdaq July 1, 2025.

We have about CHF 1.9 billion in revenue last year pro forma, midpoint guidance this year CHF 2.05 billion. We expect to be at CHF 3 billion by 2030, again, as a combination of that same playbook, about half through strong organic growth, about half through further M&A activities. That's very briefly Aebi Schmidt. Now, talking a bit more about the products that we are actually delivering. We are looking at five customer segments. First up, we have municipal, and you can see on the picture that's a street sweeper. That's the space where we are very active in Europe, street cleaning. Predominantly as well, we have also municipal customers both in Europe and the U.S. in terms of snow plows, spreaders, but also niche products like pavement markings. Again, as I said, everything that you need to keep roads maintained.

That is the biggest segment that we have, about 40% of our revenue with about average margins throughout our portfolio. The other big segment is airport and chassis. Airport here is the dominant driver. Chassis has just merged into it because of the production facility being combined. It is similar technology that we have there. That is the highest margin business that we have. We are commanding a number one leadership position globally in international airports. Again, we are providing that mission-critical equipment to keep the runway clean. We are not servicing anything that is associated with the carrier that is actually directly with the airplane, so not the de-icing for the airplane, but the de-icing of the runway itself. Our customer, therefore, being typically the airport directly. Again, internationally, we are number one. We also have introduced new products, smaller, more versatile products last year.

Because we have such a high market share, well below 50% globally, that we wanted to increase our addressable market. So now we are going after the so-called general aviation airports. That is one rank below the international ones with those more versatile solutions that were tailor-made and as a development with the Federal Aviation Administration and with those airports in mind and involved. Again, very good space, very high margins. In both of these cases, municipal and airport, that is also where we have basically a strong demand that is non-cyclical, that is also tied to the legacy Aebi Schmidt side. So that is both in Europe and America where we have those commanding leadership positions with backlogs all around at the moment of one year plus. Then we have goods transport.

As you can see on the little picture, that is a walk-in van business plus some other adjacent products, but the walk-in van here is really the interesting part. Again, you will know that the big parcel guys here are the main customers, FedEx, United Parcel Service, and so forth. You have also others, tier 2 customers for food, utility, linen, all kind of delivery solutions that we can offer and serve. This is the interesting space now coming back. So incrementally in terms of revenue growth this year, next year, it is that walk-in van space. Those of you who were familiar with The Shyft Group, that is coming out of the acquisition. We were not active in that space beforehand. This is interesting because in Corona times there was a huge craziness, of course.

Everybody was at home, everything was delivered to home, and you had a peak delivery in 2023 and essentially a dead market in 2024, 2025. Now that space is coming back. The orders have been picking up in late 2025. We now see a structural and broad recovery in order intake in 2026. We are now fully booked into 2027 in walk-in vans. So again, as I said, incrementally, this is the very interesting space at this very point in time. I should also point out for those who were following The Shyft Group in the past, it is however just a smaller piece now of the bigger cake. It is 20% of our revenue at this point. So it is, yes, the significant driver in incremental revenue, but it is also not the company as a combined Aebi Schmidt that it is today. Then we have commercial trucks.

That is basically the service bodies that we produce, alongside some other products, including trailers and further commercial solutions. Those truck bodies, or those service bodies, that was a big consideration also with our merger with The Shyft Group. We were essentially buying those service bodies from a direct competitor in the past. We now can produce them in-house. That gives us quite a bit of a margin uplift, was part of our synergy consideration out of that. That is the space where you deliver to your plumber, your gardener, pool maintenance, whatever it is, those service bodies for their day-to-day job. Lastly, we have the agriculture business, and we are number one in the alpine markets. That means essentially, we are not competing with a John Deere or anything like that.

We are active whenever you need a solution in a steep hill or alpine markets, as we say. This is where the Aebi brand comes from. This is Aebi Schmidt or Aebi specifically as a branding. That is what we are producing, in fact, in Switzerland. As you can imagine, that is predominantly Switzerland, Austria, and a couple other countries that we are exporting them into. Admittedly, the smallest piece of our business by now and also not the one that has the most significant growth. We spoke about that in terms of goods transport at the moment, but also strong organic growth in municipal airport. Agriculture, the core of our name, but the smallest of our business by now. Good. That is a brief overview of what we are doing. With that, I hand it over to Simone.

Thanks. Good morning. On the first page, I am going to give you a little bit of an overview on the industry, on the specialty vehicle industry, why it is an attractive case.

I do not want to go in details on every single point, but just the top three points for me. First of all, we are talking about mission-critical products. If you think of an airport or a municipal customer, they have to have that machinery ready to go. Even if it snows rarely, it needs to be there, needs to be functional. They need to clean the runway as fast as possible. So mission-critical product, it has to be there by law, and that connects to the second point. The budget is usually there, because those customers, they need to finance the purchase of the machine. So very low cyclicality. That is a very good point.

The second point I wanted to mention is the high entry barriers, and that goes both on the product and the customer relationship. If you talk about the product, it is a niche market. You need a lot of specialized skills in engineering, in R&D, in the production, in the supply base. So it makes it difficult for a new entrance to try to break in and become a strong player in the sector. So that is one, the high entry barriers on the product. Second one, maybe even more important, it is really the customer relationship. Most of our customers are very loyal. Most of these type of customer tend to have a preferred supplier model when it comes to supply. Once the relationship is there, once the rapport is there, it becomes very difficult for new entrants to come in and break that customer relationship.