Titan International, Inc. (de) · NYSE:TWI
Titan International, Inc. (de) — Investor Presentation (July 2021)
30 slides from Titan International, Inc. (de)'s investor presentation, July 2021
Slide 1: Investor Presentation
Investor Presentation July 2021
Slide 2: I. Company Overview
I. Company Overview OTITAN —
Slide 3: Titan International Overview
Titan International Overview Business Overview 2021 June TTM 1 Revenue Headquartered in the heartland of the U.S. in Illinois, Titan has grown to become a top global Revenue by Segment manufacturer of off-highway wheels, tires and undercarriage products Since Titan's entrance into the wheel mark
Slide 4: Diverse, Global Footprint
Diverse, Global Footprint Titan’s broad manufacturing footprint allows the company to serve its customers regionally and locally, an advantage that separates us from our competition Europe / Russia Ceprano, Italy Kidderminster, UK Fanano, Italy Monreal del Campo, Spain Finale Emilia, Italy
Slide 5: Strong Market Position in AG & OTR Tires, Wheels and Undercarriage Components
Strong Market Position in AG & OTR Tires, Wheels and Undercarriage Components Titan’s strong market position is underpinned by a broad range of AG and EMC-focused production and engineering capabilities coupled with unmatched tooling assets that would require significant investment to replicate Tire
Slide 6: Flexible Operating Model with Multiple Cost Structure and Liquidity Levels
Flexible Operating Model with Multiple Cost Structure and Liquidity Levels Demonstrated ability to manage labor and variable overhead costs while leveraging global buying power Management Commentary Summary COGS Structure Management has taken strong actions in the midst of market volatility to man
Slide 7: Titan International Overview: ESG Progress
Titan International Overview: ESG Progress Titan’s strong commitment to ESG Environmental Social Governance Working with customers to integrate Policies supporting diversity & inclusion, environmental consideration in products’ including Board commitment to increase Increased Board Diversity in 2021
Slide 8: II. Segments Overview
ll. Segments Overview OTITAN —
Slide 9: Agricultural: Segment Overview
Agricultural: Segment Overview Segment Overview Net Sales and Gross Margin1 (US$ in millions) Titan’s agricultural wheels, tires, and undercarriage components are manufactured for use on various agricultural equipment including tractors, combines, skidders, plows, planters, and irrigation equipmen
Slide 10: Agricultural: Market Summary
Agricultural: Market Summary Summary Observations Key Indicators The age of fleet in the large equipment segment is well above Corn Price Trend historical replacement age Low levels of inventory in most channels, especially with dealers, is a significant positive indicator for the remainder of 2
Slide 11: Agricultural: Low Sidewall Technology
Agricultural: Low Sidewall Technology End-user enthusiasm and demand for industry leading technology remains high Adoption of our industry-unique LSW Technology continued to grow as essential growers and farmers sought out ways to improve productivity. LSW remains a viable, affordable option as comp
Slide 12: Agricultural: Product Innovation
Agricultural: Product Innovation New in 2021: Titan AgraEDGETM Over 2021 Titan will introduce more than 40 of the most popular sizes for MFWD tractors, 4WD tractors, combines and grain carts • New high-performing, cost competitive Titan branded R-1W line developed with a modern design • Features imp
Slide 13: EMC: Segment Overview
EMC: Segment Overview Segment Overview Net Sales and Gross Margin1 (US$ in millions) Manufactures undercarriage systems, wheels, tires and components for various types of OTR earthmoving, mining, military, construction, road $ 742 building, and forestry equipment for both OEM and Aftermarket chann
Slide 14: EMC: Market Summary
EMC: Market Summary Summary Observations Key Indicators Construction demand is driven by many variables, including Used Construction Equipment Inventory commodity prices, road construction, infrastructure, government 30% 20% appropriations, housing starts and other macroeconomic drivers 10% 0% I
Slide 15: EMC: Product Development
EMC: Product Development ITM TRACK TENSIONER FOR cranes, log stackers, pot haulers and other equipment NEXUS AURORA INDUSTRY-LEADING \ a oner for Nexus Aurora 60 PLY RATING th 2 t on the new dual-rated E-3/L3 CM100 e | @ TITAN ITM D11 AND D11 HEAVY-DUTY TITAN STL3 ew 875/65R29 UNDERCARRIAGE PARTS ri
Slide 16: EMC: Undercarriage (ITM) Products & Customers
EMC: Undercarriage (ITM) Products & Customers 16
Slide 17: Consumer: Segment Overview
Consumer: Segment Overview Segment Overview Net Sales and Gross Margin (US$ in millions) Titan’s consumer segment manufactures bias truck tires in Latin America and light truck tires in Russia as well as select products for ATVs, turf, and golf cart applications across the globe $ 166 $ 147 $ 115
Slide 18: III. Q2 2021 Financial Overview
III. Q2 2021 Financial Overview
Slide 19: Financial Highlights Q2 2021
Financial Highlights Q2 2021 Q2 2021 Financial Highlights Net sales were $439 million, a $153 million YOY increase; net sales would have been up $144 million on a constant currency basis; representing 50% organic revenue growth vs Q2 2020. This represents the strongest revenue quarter since 2014.
Slide 20: Q2 Sales and Gross Margin
Q2 Sales and Gross Margin 5 0 % $232 $ 2 5 0 4 5 % $ 2 3 0 $187 4 0 % $ 2 1 0 3 5 % $164 $ 1 9 0 Net Sales: Increased 57.2% Q2‘21 vs. Q2‘20 $147 3 0 % $ 1 7 0 15% 15% AG Gross margin increased 400 bps YoY 2 5 % $ 1 5 0 11% 1 2 0 % $ 1 3 0 1 5 % 9% $ 1 0 53% 1 0 % 5 % $ 9 0 $ 7 0 Volume up 35.8
Slide 21: YTD Sales and Gross Margin
YTD Sales and Gross Margin 50% $440 $500 45% $450 40% $381 $356 $400 $320 Net Sales: Increased 37.5% YTD‘21 vs. YTD‘20 35% $350 30% $300 15% 1 15% Gross margin increased 520 bps YoY 25% AG $250 10% 10% 20% 52% $200 15% Volume up 24.5%; Price up 11.3%; Mix up 4.2%; FX down (2.6%) $150 10% $100
Slide 22: Q2 and YTD Financial Overview
Q2 and YTD Financial Overview* Q2 YTD (Amounts in millions) 2021 2020 2019 2018 2021 2020 2019 2018 Sales $439M $286M $391M $429M $842M $628M $801M $854M Gross Margin $61.5M $30.9M $38.3M $58.3M $114.7M $60.7M $83.6M $117.9M Gross Margin % 14.0% 10.8% 9.8% 13.6% 13.6% 9.7% 10.4% 13.8% Operating Inco
Slide 23: June TTM and FY Financial Overview
June TTM and FY Financial Overview* (Amounts in millions) June 2021 TTM FY 2020 FY 2019 FY 2018 Sales $1.5Bn $1.3Bn $1.4Bn $1.6Bn Gross Margin $184.5M $130.5M $129.0M $198.3M Gross Margin % 12.5% 10.4% 8.9% 12.4% Operating Income (Loss) $38.9M ($7.8M) ($28.4M) $42.2M Operating Income % 2.6% (0.6%) (
Slide 24: Financial Overview: Debt Structure
Financial Overview: Debt Structure CASH / DEBT Q2 '21 Q1 '21 Q4 '20 Q3 '20 Q2 '20 Cash $96 $96 $117 $99 $80 Total Debt $487 $472 $465 $464 $503 6.50% Secured Notes Due 2023 $394 $397 $397 $397 $396 Titan Europe Credit Facilities $43 $45 $50 $47 $51 Revolving Credit Facility $29 $9 $0 $0 $28 Other $2
Slide 25: Appendix
Appendix O7ITAN
Slide 26: Working Capital / CCC
Appendix Working Capital / CCC 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Days Sales Outstanding (DSO) 57 61 58 54 57 55 Days A/P in Inventory (DPI) 93 111 99 99 84 86 Days Payable Outstanding (DPO) (55) (51) (53) (56) (59) (59) Cash Conversion Cycle 95 121 104 97 82 82 Cash $60 $80 $99 $117 $96 $96 Cash % of 12 M
Slide 27: 1H 2021 Cash Flow
Appendix 1H 2021 Cash Flow $11 $117 $13 $71 Pe 9) | $2 ($15) ($53) Cash - Dec. Net Income Loss on Senior Foreign Depreciation & Accounts Inventories Accounts Net Proceeds Payment Legal Capital All Other Cash - Jun. 2020 Note Exchange Gain Amortization Receivable Payable from Borrowing Settlement Exp
Slide 28: Q2 EBITDA Reconciliation
Appendix Q2 EBITDA Reconciliation Adj. EBITDA Reconciliation | Q2 2018-2021 $ Millions Q2 2021 Q2 2020 Q2 2019 Q2 2018 Net Income / (Loss) $(2.4) $(4.6) $(6.7) $ 8.5 Provision for Income Taxes 2.0 2.0 (3.2) 1.7 Interest Expense 8.7 8.0 8.3 7.7 Depreciation & Amortization 12.4 13.3 13.1 14.8 EBITDA $
Slide 29: 2020 FY Adjusted GP & EBITDA Reconciliation
2020 FY Adjusted GP & EBITDA Reconciliation Gross Profit Reconciliation | 2020A FY Adj. EBITDA Reconciliation | FY 2020 & Jun ‘21 TTM 12 Months Ending Dec '20 Jun '21 (TTM) Financial Metrics Agriculture EMC Consumer Total Net Income / (Loss) $(65.1) $(22.1) Revenue $ 634.7 $ 510.2 $ 114.5 $ 1,259.3
Slide 30: Investor Relations
Investor Relations Titan Website: www.titan-intl.com1 [email protected] SAFE HARBOR STATEMENT: The accompanying material includes forward-looking comments and information concerning the company’s expectations and objectives for the future. Readers of this material should understand that thes
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