# Dear Fellow Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-cyclical-auto-parts/NYSE_PLOW_2020/NYSE_PLOW_2020.mmd` · pages 1-7_

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Dear Fellow Shareholders,

As I look back on a year like no other, my primary reaction is a huge sense of pride. That may seem surprising given what a difficult year we all faced, but, personally, I focus on the way our team responded to a set of challenges that no one in our lifetime has previously faced.

As the pandemic took hold around the world in the first quarter of 2020, we put the health and safety of our employees and partners first. Not only did we learn to operate safely and effectively within the confines of a pandemic, we saw amazing, innovative safety solutions developed at our facilities around the country, which were then utilized and promoted across the Company. To say our people "stepped up" would be a massive understatement, and the optimism and resilience displayed was truly staggering. That is why I decided to make our people the focus of this year's shareholder letter. To be clear, there are literally hundreds of people we could have included in this letter. The 21 people we decided to include do not even begin to scratch the surface of the talent we have at Douglas Dynamics, but they are great examples of what makes Douglas special. I want to thank everyone at the Company, not just those mentioned in this letter, for their tireless efforts in the past year.

Charlie Reed is really the original inspiration for this letter after going above and beyond to help his coworkers during the pandemic shutdown. Charlie has 36 years of service at Douglas Dynamics and is based in our Rockland, Maine facility. After a recent promotion, he is now our highest-level Business Unit Supervisor—Level III. He started at Douglas back in 1984 as a laborer with our Student Co-Op program while he was still in high school, working for us in the evening.

I firmly believe we looked after our people better than most companies during the seven weeks that our manufacturing operations were shut down due to the pandemic from mid-March to early-May. Knowing that it would take time for government assistance programs to reach our employees, we paid all full-time employees through the end of March. Additionally, we paid the employee portion of health insurance premiums through April. We did this because we wanted all employees to focus on their families' health and safety and know that they were financially secure during the pandemic's early stages.

However, there was a period where we were shut down, and our people needed to apply for unemployment. Many on our team had never had to go through this process, and it was both difficult and stressful. Charlie created a step-by-step guide for local employees to help them navigate their weekly unemployment claims and sent dozens of texts and emails to employees of his own volition. He went as far as setting up a socially distanced workstation in his dining room and inviting over team members to help educate them and coach them through filing a claim. Not only did we not ask him to do this, we were not even aware he was doing it until our facilities reopened and people told us how much they appreciated it. This is a perfect example of how our culture goes beyond what you typically see at a well-run organization and sometimes feels more like family.

I won't focus the entire letter on people who went above and beyond following the pandemic—the list would be too long—but I would be remiss in not mentioning the two individuals who led our COVID-19 Safe Return to Work Teams—Chris Horn and Dan Loy. Based in Milwaukee, Chris is a 13.5-year veteran at Douglas and is our Director of Engineering in the Attachments segment. Dan has worked in Milwaukee for almost 17 years and, after numerous promotions, is now Vice President of Manufacturing for the Attachments segment.

Together, Dan and Chris created cross-division, cross-location, cross-functional teams to address the challenge of returning to work. They researched a wide range of COVID-19 safety and mitigation recommendations from organizations such as the Center for Disease Control (CDC) and the World

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Health Organization (WHO). They created our Safe Return to Work plan, which focused on protocols around disinfecting, social distancing, communication, and education. They put in countless hours planning and adapting our facilities to the new reality to create a safe and productive workplace for everyone. In the end, we were fully staffed and 100% operational ahead of schedule in early May. They also created plans and response teams in the event that employees needed to quarantine, or parts of the business needed to be shut down for cleaning. Their efforts were so successful that we developed a COVID-19 resources page on our Company website that outlined the plans and protocols that helped us safely bring our employees back to work. We shared that page with our customers and partners, as well as other businesses and associations in our industry and within our communities, and received thousands of hits from companies and organizations worldwide.

We were determined to put the safety of our people first, and Dan and Chris put in a tremendous effort to make sure we were able to do just that. They would not have been able to accomplish what they did, however, without the help of our unwavering human resources teams. When the pandemic struck, our HR teams across all locations moved fast and came together, working around the clock, taking unprecedented measures to keep our employees safe while also helping keep the business operating. To date, we have not seen a major outbreak at any of our facilities, and I'm happy to say our employees are making the right decisions regarding quarantine following exposures outside the workplace.

Several of the people I have already mentioned have a long tenure at our Company. In this day and age, having long-tenured employees is not something you see that often, but at Douglas, we take pride in the fact that many people stay with us for decades, and some for their entire career. In fact, today, we have six individuals with more than 40 years of service, namely:

• James Carleton Jr.—Facility Lead in Rockland, Maine

• Mary Goos—Engineering Designer in Manchester, Iowa

• Richard Nachtman—Prototype and Fixture Tech in Manchester, Iowa

• Loras Neuhaus—Shipper / Receiver in Manchester, Iowa

• Benjamin Stenman—Engineering Product Coordinator in Milwaukee, Wisconsin
• Gregory Stocke—Operator II in Milwaukee, Wisconsin

My thanks to all six individuals for their dedication and contributions over more than four decades! I appreciate the institutional knowledge you bring to the team and your willingness to grow and learn with the Company throughout your career. I would also like to mention Ronnie Bachman, who retired last year after spending more than 50 years working at our Henderson Products facility in Manchester, Iowa. Congratulations on your well-deserved retirement, Ronnie!

We also have another 33 people with more than 30 years of service at the Company. My hat is off to all of these individuals and many more who act as role models and mentors, helping build the next generation of long-term Douglas employees.

The longest-tenured employee in our Beijing, China office is Maya Zhong, who has been with the Company for almost 11 years—far longer than the average tenure for foreign enterprises in China. She has been promoted twice during her time with Douglas. She is one of a small number of professionals who have earned their Certified Profession in Supply Management (CPSM) designation in China. Maya's current role is Douglas Sourcing Office (DSO), Senior Manager of Sourcing and Logistics. Her team is responsible for managing our DSO suppliers and continuing to grow savings for our divisions. Maya drove successful use of shipment consolidations to reduce inventory in support of our DSO items. She is a great example of 'How We Win' for the DSO team and adopting our culture. She has also been instrumental in hiring, training, and educating new team members about our business over the past decade and is a vital part of our team.

We are proud to currently employ more than 80 active service members and retired veterans and hope that number continues to grow. Hiring veterans is not primarily an altruistic move on our part—veterans make fantastic team members! Their training, discipline, problem-solving skills, and work ethic make it an easy hiring decision. One example is Duane Wright, a retired Captain in the United States Marine Corps. He spent his 22-year military career working in electronics maintenance. Duane deployed around the world multiple times, including three deployments to Iraq. He joined our Technical Service team in 2016 and was promoted to Technical Service Manager in 2018, and has been a great addition to our team. Douglas Dynamics hired Duane through the Hire-A-Vet Campaign, for which we received an award from the State of Maine. I want to thank Duane for his

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service and sacrifice for our Country and for his contributions to our Company over the past five years.

As with other parts of the Douglas Dynamics family, our Dejana operations have many people with decades-long tenure. Vic Varonier joined the Company in 1991 as a Mechanic. Since then, he has held too many roles to mention, including Shop Foreman, developed and managed quality control and warranty departments, Director of Fleet and Technical Services, and today, the Senior Director of Operations. Over the years, he has been a key part of improving the Dejana Fleet Department responsible for growing and maintaining our customer base and the Dejana Fleet of vehicles. Since we acquired Dejana in the summer of 2016, Vic has truly embraced Douglas culture and the Douglas Dynamics Management System (DDMS) mindset, playing a big part in helping move Dejana onto its continuous improvement path, which is vital for our future success. Vic has managed everything from opening new locations to integrating acquired businesses. He is another well-rounded employee that can, and has, turned his hand to many different roles. Vic is the kind of person you want on your team because you know he will find a way to get things done!

Ericka Stanford has carved out an important career since joining our Watertown, New York municipal-focused uplift facility in 2014. She started in an administrative role and has achieved several promotions over the past six years, most recently taking on the role of Installation and Service Manager. Ericka is the first woman to lead one of our uplift locations and is playing a major role in transforming Watertown into a world-class facility. Her winning behaviors have earned the trust of the approximately 40 team members in a vital market. The foundation of Ericka's success has been the training undertaken through DDMS events and courses through the Douglas Dynamics University (DDU) to help her be successful. Ericka has the vision and drive to succeed in her role and likes to have fun along the way—a winning formula!

We have always valued Douglas Dynamics team members that are willing and able to take on a variety of tasks and roles. One such person is Kyle Hull, who has been a 'swiss army knife' employee for us since he joined the Company in 2014. Based in Madison Heights, Michigan, Kyle was originally hired in an Assembler / Packer role. However, within a few months, he was transferred to a Technical Service Rep role once we realized his strong technical knowledge and aptitude to learn. One year later, he moved into an office to take on a Customer Service role. He was successful in that role but decided that he preferred working on the manufacturing floor and went back into the Assembler / Packer role as a Lead. In 2019, he was promoted into a Business Unit Supervisor Apprentice, and most recently, he was promoted to a Business Unit Supervisor I in November 2020. We are always willing to work with our people to find the right role for them and are happy to give opportunities when people are willing to move around and take on new roles. People that are willing and able to switch roles like this bring unique perspectives to their new teams and help cross-pollinate ideas and knowledge between teams—very valuable to ensure open communication and long-term success!

Elaine Jones joined the Company in 2011 as an Assembler / Packer in our Rockland, Maine facility and is building a great career in manufacturing. She has shown commitment and a willingness to go above and beyond, including completing a three-month special assignment at our Madison Heights, Michigan location to advise and help augment their manufacturing operations. Since then, she has continued to progress with a promotion to a Business Unit Supervisor I role and recently was promoted to a Level II. One of Elaine's claims to fame is that she coined the term "you can go places here" in our employment video, which has become an often-used phrase at the Company since. She is a pioneer as one of only two female manufacturing supervisors in our Attachments segment, but we hope she is paving the way for many more women to follow in her footsteps.

Since joining the Company in 2012, Cassie Putz has held multiple roles and made significant contributions to our operations in Manchester, Iowa. For example, she played a major part in establishing a configurator to help our sales team create accurate quotes by combining information from engineering, production, global sourcing and supply, sales, and marketing to create the quality products we are known for. Recently, she led a team working on important projects as part of our vertical integration initiative—the Medium Duty Municipal First Responder. Using many of the lessons learned from other projects, she delivered a new product with important long-term potential for the Company. Cassie is action-oriented and prides herself on reviewing all angles of a challenge to verify that the best decision is made while ensuring that everyone on the team has a voice and can contribute. She also takes an active role in the community by leading the Contributions Committee for Henderson, which provides donations and other needs to residents in Delaware County, Iowa. For the first time last

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Christmas, the Contributions Committee partnered with a Giving Tree. This is normally done through another organization, but they could not participate this year due to the pandemic. The committee stepped up to support those in need. I look forward to hearing about Cassie's continued success in the years ahead!

As you may have seen at our recent investor event, our Huntley, Illinois municipal uplift facility has undergone a real transformation becoming one of our top-performing facilities—a real success story! One of the main drivers behind this improvement is Pete Ramirez, who joined the Company four years ago. Pete is one of our military veterans, having served in the U.S. Navy for eight years, including deployments on the Aircraft Carrier Carl Vinson, and also serving at the U.S. embassy in the Philippines. We appreciate his service for our Country around the globe, and now closer to home for our Company in northern Illinois. Pete really cares about his team, which has been an essential part of driving the improvements at the facility. He has a great attitude and has learned an important lesson: that it is okay to make new mistakes daily as long as you are also looking to improve daily, together as a team. With that attitude, we never lose; either we win, or we learn!

While it is important to highlight the excellent work achievements of our people, we also want to celebrate the contributions made in the broader community. Sharon Rose joined our Kings Park, New York operations in 1994 as the Accounts Payable Manager. She has always devoted a significant amount of her free time to volunteering. She has followed in her father's footsteps, playing an important role in her local Drum and Bugle Corps. In fact, her father was the first Director of the Long Island Sunriser's Corps in 1958. The Corps play a vital role in fostering community spirit and developing the physical and mental health of the members, as well as teaching members about dedication, commitment, and community service. Sharon's volunteer work has encompassed everything from being a warden on the drummer's bus for more than 100 members to supporting members who could not pay their dues. Her passion is to watch the members learn new music and go out and march at a contest each year. Today, Sharon is the Assistant Director and President of the Board of Directors of the Corps, helping the group manage through the pandemic when they have not been able to take the field and compete. On behalf of everyone on our team, thank you for your important contributions!

Vicki Flowers is a remarkable person who has been able to turn tragedy into positive action. Based in our Baltimore, Maryland facility, Vicki is a Technical Service Representative and has been with the Company for six years. After losing her beloved son, Nick, to melanoma in 2016, she chose to use the tragedy as a call to action to help educate and bring awareness regarding skin cancer issues. Through a partnership with the nonprofit Kelly's Dream in 2017, she was instrumental in driving an initiative that led to Stevenson University adding sunscreen dispensers at their Mustang Stadium. Since then, Vicki has partnered with the nonprofit For C.A.R.E and Mercy Medical Center in Baltimore, bringing awareness, education, and hope to those diagnosed with melanoma. She helps organize their annual 5K run, which raises funds to purchase sunscreen dispensers donated to Baltimore area YMCA youth summer camps. Vicki has also worked with Kelly's Dream to pass Bill HB427 Student Sunscreen Use, allowing students in Maryland to bring sunscreen to school without a doctor's note. She is currently working with her local Maryland State Senator, Katherine Klausmeier, on the Skin Cancer Education Bill, which will focus on age-appropriate skin cancer education for children, and recently testified at the Maryland General Assembly in Annapolis on this topic. Vicki has achieved so much with her volunteer work, and I admire her drive and resolve to address this important health issue.

Our Product Managers are responsible for the product planning and execution of a product throughout its lifecycle. This includes gathering and prioritizing product and customer requirements, defining the brand and product vision, and working closely with cross-functional departments to ensure revenue, margin, quality, and customer satisfaction goals are met. In short, they are the lynchpins of our team in Attachments. Tyler Jones has been with the Company for 12 years and is a Product Manager in Rockland, Maine. Tyler is a second-generation Fisher Engineering employee and would visit our original plant as a boy. He grew up in the heart of FISHER nation and was raised with the brand because his father, Bobby Jones, used and tested products for the Company. Tyler has been involved with several successful product development projects, most recently the half-ton V-plow for the FISHER, WESTERN, and SnowEx brands. Launched in spring 2020, the half-ton V-plow was developed in response to a strong demand for a plow for the increasingly popular half-ton truck vehicle segment. Its first year has been met with overwhelmingly strong positive customer feedback and helped the Attachments segment produce strong results despite the pandemic and below-average snowfall. We look forward to many more launches from Tyler in the future!

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As I am sure you will agree, this letter has highlighted an amazing group of people—and the astounding fact is there are literally hundreds more people I could have mentioned! We have created a top-tier HR program and believe we understand the importance of talent development, although we are always looking to improve. In recent years, we have created and expanded our Organizational Development team so that we can continue to recruit the best talent—and retain and train them effectively.

Before closing, I would like to highlight a passage from my previous shareholder letter, written in early March 2020, just as the pandemic emerged in the U.S.:
"Today, there is little clarity on how this pandemic will ultimately affect the world's economies and the work truck market we serve. However, please do not mistake this uncertainty for pessimism. I do not know exactly when or how this situation will be solved, but I firmly believe in our people and in our ability to utilize DDMS to react wisely to any challenges we face. The safety and security of our people and partners remain our top priorities… We remain confident that our team will pull together during this difficult time and that our Company will emerge from this situation stronger and wiser."
While the pandemic continues to present challenges for everyone, I am pleased to say I think my comments above from one year ago have proved accurate. We have adapted and managed through the situation successfully to date, learned a lot, and I am confident we are emerging stronger.

On behalf of the management team and Board of Directors, I want to thank everyone at Douglas Dynamics for their hard work, dedication, and relentless pursuit of improvement. As I look at what we accomplished during this difficult environment, I am confident that we remain well-positioned to execute in the near and long term from both a financial and operational standpoint, driving profitable growth.

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Sincerely,

Bob McCormick
President & CEO

Bob McCormick
President & CEO