Titan International, Inc. (de) · NYSE:TWI
Titan International, Inc. (de) — Q3 2020 Earnings Presentation
37 slides from Titan International, Inc. (de)'s earnings presentation, November 2020
Slide 1: Investor Presentation November 2020
Investor Presentation November 2020
Slide 2: Titan International Overview
Titan International Overview Titan International Inc. (TWI) is a publicly traded company on the New York Stock Exchange. Headquartered in the heartland of the U.S. in Quincy, Illinois, Titan has grown to become a top global manufacturer of off-highway wheels, tires, assemblies and undercarriage pr
Slide 3: Titan International Overview: Strategy
Titan International Overview: Strategy To become the worldwide leader in manufacturing and distribution of wheels, tires, assemblies and undercarriage products and to serve our customers’ needs through product innovation and quality service in our key markets: Agriculture Earthmoving/Constructio
Slide 4: Titan International Overview: Customers
Titan International Overview: Customers 4
Slide 5: Titan International Overview: Global Footprint
Titan International Overview: Global Footprint Europe Ceprano, Italy Kidderminster, UK Fanano, Italy Monreal del Campo, Spain Finale Emilia, Italy Potenza, Italy Flers, France St. Helens, UK Gevelsburg, Germany Valsamoggia, Italy Jesi, Italy Volgograd, Russia North America
Slide 6: Titan International Overview: Education
Titan International Overview: Education 6
Slide 7: Agriculture
Slide 8: AGRICULTURE: Summary
AGRICULTURE: Summary 2019 AT A GLANCE AMOUNTS IN MILLIONS AM ev SAces 2018 PERCENT 2019 694 GS) 652 MILLION MMMM SALES BY REGION
Slide 9: AGRICULTURE: Market Summary
AGRICULTURE: Market Summary Large hp equipment (4WD tractors and Combines) remain well below historical averages. North America farmer sentiment and dealer expectations have improved significantly in recent polls. North American harvest season is going well as corn prices are in that important
Slide 10: AGRICULTURE: Product Innovation
AGRICULTURE: Product Innovation 10
Slide 11: AGRICULTURE: Low Sidewall Technology
AGRICULTURE: Low Sidewall Technology 11
Slide 12: AGRICULTURE: Low Sidewall Technology
AGRICULTURE: Low Sidewall Technology 12
Slide 13: AGRICULTURE: Low Sidewall Technology
AGRICULTURE: Low Sidewall Technology 13
Slide 14: Sw raAnw
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Slide 15: OTR: Summary
OTR: Summary 2019 AT A GLANCE AMOUNTS IN MILLIONS AMY Nev sates 2018 PERCENT 2019 $742 GEL °649 MILLION MILLION AME SALES BY REGION
Slide 16: OTR: Market Summary
OTR: Market Summary Demand for larger construction equipment used for highways and infrastructure has been weakening over the past several months. Construction driven by GDP by country and the need for infrastructure developments with COVID-19 adding to weakening demand and uncertainty. Overal
Slide 17: OTR: ITM Products & Customers
OTR: ITM Products & Customers 17
Slide 18: OTR: ITM Product Applications
OTR: ITM Product Applications 18
Slide 19: OTR: ITM Successes
OTR: ITM Successes ieee Italtractor ITM ENGINEERED FOR SUCCESS ITM SALES SUCCESSES t: The p stren ing its presence 30 he Wirtgen Germany surface miner dev / o ITM. With this award, ITM becor in addition to the roadbuilding pro 2 Liebherr Group platform project ar. This pi ithe 30+ to ded OEM bt impo
Slide 20: OTR: Product Highlights
OTR: Product Highlights nce jum pro THE RESULTS 2-3X LONGER =""E'\7 3-5X LOWER 3-5X F 2-3X LOWER “Sesser DUE TO LESS SERVICE-RELATED DOWNTIME O71TAN 20
Slide 21: OTR: Product Highlights
OTR: Product Highlights TITAN LEADS THE WAY IN FORESTRY Forestry handling 2 produ ager Lug ti oe 42% ionty. VERSUS COMPETITOR X O71ITAN 21 -
Slide 22: CONSUMER
CONSUMER Titan is best known for our wheels, tires and undercariage components for agriculture and off-the-road segments, but we also do business in consumer markets. In the United States, those products include ATV tires, mud flaps for trucks, and animal mats for on-farm applications. Our Latin Ame
Slide 23: Financial Overview
Financial Overview
Slide 24: Financial Overview: Highlights & Challenges
Financial Overview: Highlights & Challenges Q3 2020 Financial Highlights Ending cash and cash equivalents balance was $98.8 million, an increase of $18.6 million during the quarter Net debt was reduced by $85 million over the past 12 months to the lowest level since Q3 2018 Gross margin was 10
Slide 25: Financial Overview: Quarterly Comparison by Market
Financial Overview: Quarterly Comparison by Market Agriculture: Tractors, combines, implements, irrigation Earthmoving/Construction: Mining, cranes, aerial lifts, haul trucks, scrapers Consumer: Light-truck tires, ATVs, turf equipment, specialty products (includes livestock mats and mud flaps) Q3 20
Slide 26: Financial Overview: Sales and Gross Margin
Financial Overview: Sales and Gross Margin 50% $190 45% $171 $163 $157 $153 $170 Net Sales: Declined 2.3% Q3‘20 vs. Q3‘19 40% $150 35% 30% Gross margin increased ~392 bps YoY $130 25% $110 AG 20% 11% 12% 11% 50% 7% Volume up (2.3%); Price/mix up (4.1%); FX down (8.7%) 15% $90 10% $70 5% 0% $50
Slide 27: Financial Overview: Summary Income & EPS
Financial Overview: Summary Income & EPS (Amounts in millions) Q3 2020 Q3 2019 Q3 2018 Q3 2017 Sales $304.8 $345.9 $384.7 $371.0 Gross Margin $31.3 $27.1 $43.7 $39.7 Gross Margin % 10.3% 7.8% 11.4% 10.7% Operating Income (Loss) ($6.8) ($12.6) $4.8 ($5.1) Operating Income % (2.2%) (3.6%) 1.3% (1.4%)
Slide 28: Financial Overview: Income Reconciliation
Financial Overview: Income Reconciliation USD Amounts in Millions, except earnings per share Q3 2020 Q3 2019 YTD 2020 YTD 2019 Net loss applicable to common shareholders (12.6) (19.6) (43.2) (25.5) Remove redemption value adjustment - 0.5 - 1.9 Costs relating to potential ITM public listing - 2.3 -
Slide 29: Financial Overview: EBITDA Reconciliation
Financial Overview: EBITDA Reconciliation USD Amounts in Millions Q3 2020 Q3 2019 YTD 2020 YTD 2019 Net loss (13.5) (20.0) (45.6) (25.7) Adjustments Provision for income taxes 0.3 2.1 2.4 0.8 Interest expense, excluding interest income 7.7 8.4 23.8 24.6 Depreciation and amortization 13.3 13.5 40.4 4
Slide 30: Appendix
Appendix
Slide 31: Working Capital / CCC
Appendix Working Capital / CCC 31
Slide 32: Sales – N. America vs. International
Appendix Sales – N. America vs. International 32 * Note: North America includes corporate expenses.
Slide 33: YTD Cash & Activity
Appendix YTD Cash & Activity 33
Slide 34: Debt Structure
Appendix Debt Structure CASH / DEBT 6.50% Secured Notes Due 2023 $397 $396 $396 $396 $396 Titan Europe Credit Facilities $47 $51 $40 $44 $41 Revolving Credit Facility $0 $28 $30 $36 $59 Other $20 $27 $25 $29 $33 $397 $a7 $20 $0 Es — 6.50% Secured Notes Titan Europe Credit Facilities Other $125m ABL
Slide 35: Cost Structure
Appendix Cost Structure GP Cost Structure Breakdown Primary Raw Materials Steel Natural Rubber Overhead Raw ~30-35% Materials Synthetic Rubber ~50-55% Labor Carbon Black ~10-15% Nylon 35
Slide 36: Financial Summary 2019
Appendix Financial Summary 2019 36
Slide 37: Titan Website: www.titan-intl.com
Investor Relations Titan Website: www.titan-intl.com [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 these