Timken Company (the) · NYSE:TKR
Timken Company (the) — The Timken Company — Investor Presentation (May 2010)
29 slides from Timken Company (the)'s investor presentation, May 2010
Slide 1: Asia Investor Presentation – May 2010
Asia Investor Presentation – May 2010
Slide 2: Investor Relations Contact
Investor Relations Contact: Steve Tschiegg, Director – Capital Markets & Investor Relations PH: (330) 471-7446 E-mail: [email protected] 2
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT: Certain statements in this presentation (including statements regarding the company's forecasts, beliefs, estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Slide 4: About The Timken Company
About The Timken Company • A leading provider of friction management and power transmission solutions to diverse markets, including: - Aerospace - Construction - Mining - Truck - Energy / Wind - Automotive - Rail - Distribution • Established in 1899 • Headquartered in Canton, Ohio • 2009 sales: $3.1
Slide 5: Our New Enterprise
Our New Enterprise 2009 Sales: $3.1 Billion Process Industries: $806M Mobile Industries: $1,245M Global growth, diversified, Portfolio transformation/ strong aftermarket value-based pricing Aerospace & Defense: $418M Diversified growth in defense, commercial and the aftermarket… beyond bearings Stee
Slide 6: Diverse Global Industrial Portfolio
Diverse Global Industrial Portfolio 2009 Sales: $3.1 Billion Our strategy: • Grow with differentiated products and services in attractive markets • Increased sales from demanding applications in industrial markets, including: – Aerospace – Energy – Heavy Industries • Expand channels into the afterma
Slide 7: Geographic Sales Diversification
Geographic Sales Diversification Our strategy: • Diversify global scope, growing disproportionately outside the U.S. 2009 Sales: $3.1 Billion Sales Outside Rest United States: of World 38% 9% United States 62% Asia Asia Growth Initiative 12% - 2009 sales of $370 million, or 12% of total company - Em
Slide 8: Our Strategy Model
Our Strategy Model • Enhance existing products • Industrial markets and services • Geographies • Leverage technology to create value • Channels • Capture lifetime of opportunity GROW • Structure portfolio for value creation OPTIMIZE • Improve efficiency • Lower cost structure • Fix/Exit under- perfo
Slide 9: Our Priorities
Our Priorities OPTIMIZE • Drive performance improvements while continuing to implement our strategy - Mobile - transform through fix / exit strategy - Steel - rebound profitability and balance portfolio - Complete Project O.N.E., achieve further working capital improvements GROW • Expand our busines
Slide 10: Why All the Fuss About Asia?
Why All the Fuss About Asia? Global Bearings Market – US$ Billion 55 ROW Today, Asia accounts for over 40% of the world bearing market 42 Asia/Pacific Growing at 8%, Asia will account 32 for nearly 50% of the world 25 bearing market in 2015 22 Europe N. America Source : Freedonia (July 2006), TKR an
Slide 11: Dynamic Asia
Dynamic Asia Majority of world‟s population (~4.0 billion) Significant portion of world GDP And the list goes on… • ~50%+ of world heavy truck production • Major world oil producer 11 Source: Internal Timken Research
Slide 12: Timken Position in Asia
Timken Position in Asia • Serving Industrial markets • Primary focus: – Infrastructure & Energy – Distribution & Aftermarket • China and India “home markets” • Technical & design leadership • Design influence in Japan/Korea • Distribution Center - Singapore • Invested in „industrial‟ bearing manufac
Slide 13: Timken in Asia - 2000
Timken in Asia - 2000 1900 Associates 3 Manufacturing Plants 1 Engineering Center 13 1 Distribution Center
Slide 14: Timken in Asia - 2010
Timken in Asia - 2010 4100 Associates 8 Manufacturing Plants 3 Engineering Centers 3 Distribution Centers 14 23 Offices
Slide 15: Our Focus in China - Growth
Our Focus in China - Growth • Markets – Infrastructure (Steel, Cement) – Energy (Wind, Power Generation, Oil & Services) – Off Highway (Mining, Tunnel Boring Machinery) – Transportation (Rail, Aerospace, Heavy Truck) • Products – TRB/SRB/CRB/BB – Aerospace & Precision products – Wind turbine main sh
Slide 16: Manufacturing Capability - China
Manufacturing Capability - China World Class Manufacturing Sites in China Product Type Tapered Roller Bearings Spherical Roller Bearings Spherical Plain Bearings Ball Bearings Cylindrical Roller Bearings Package Bearings Aerospace and Precision Products Wind turbine main shaft bearin
Slide 17: Deliver Consistent Brand Building Message to Markets
Deliver Consistent Brand Building Message to Markets “You Can Always Find Timken Where There is a need to Manage Friction” Construction Machinery & Maintenance “Timken Transforms in China, Focusing on Industrial Sectors” Maschinen Market “Persistence Leads Us Through Tough Times” Asian Business Lead
Slide 18: Promising Long Term - China's Mega Trends
Promising Long Term - China’s 10 Mega Trends • Massive Urbanization • Rapid Mobility • Rise of the Middle-Class • Largest Moderate-Income Economy • Quiet Green Revolution • Science, Technology, and Innovation • A Even More Global China • Defense • Building a Harmonious World • Civil Society 18
Slide 19: Primary Market Opportunities in China
Primary Market Opportunities in China Metals Current success Power Generation Cement Power Transmission Wind Energy Growth Targets Mining Distribution 19
Slide 20: Expand & Optimize China Portfolio in Key Industries
Expand & Optimize China Portfolio in Key Industries Aerospace & HPC Wind Energy Distribution PM Cement Steel Power Gen Process 6 Industries Gear Drive Power Gen Printing PM Press Heavy Truck Compressors & Pumps Light Vehicles Off-Highway Rail 20
Slide 21: Strong Growth – China - Wind
Strong Growth – China - Wind Unit: MW Source: China Wind Energy Association 21
Slide 22: Strong Growth – China - Cement
Strong Growth – China - Cement Unit: Million tons Source: China Cement Industry Association 22
Slide 23: Strong Growth – China - Steel
Strong Growth – China - Steel 600 China Apparent Steel Consumption 525 530 500 453 434 Million Metric Tons 400 384 330 300 300 265 235 200 170 132 142 106 105 98 105 108 116 100 70 0 Source: China Iron & Steel Association 23
Slide 24: FirstBridge Overview
FirstBridge Overview One stop shop – Service to distributor partners within Power Transmission • Products represented are used in Mining, Primary Metals, Power, Cement etc. • Technical capability – Product selection and post sale service • E-commerce – Comprehensive Chinese language e-business platf
Slide 25: FirstBridge Products
FirstBridge Products • Timken® bearings • Goodyear® industrial belts • Garlock ® engineered seals • Reynold® Chains • Martin® sprockets and gears 25
Slide 26: Our Focus in India
Our Focus in India • Industrial market space – Infrastructure (Steel, Cement) – Heavy Industries (Mills, Mining) – CTS (Construction, Heavy Trucks, Farm tractors) – Rail • Aftermarket focus in all segments served 26
Slide 27: Indian Economic Structure vs. China
Indian Economic Structure vs. China 1990 2008 India 41% 33% 17% 54% 29% 26% 1990 2008 11% 27% 31% China 42% 42% 47% Agriculture Industrial Services 27 Data source: Compilation of various internal data points.
Slide 28: India - Investment in Infrastructure
India - Investment in Infrastructure Eleventh Plan Projected (FY08-12) Investment as a % GDP 2007-2017 Infrastructure Investment $ 1,500 billion $ 514 billion 300 12.0% Storage Airports 10.0%10.3 Ports 1% 9.8% % 1% 250 9.5% 10.0% 4% 9.2% 9.3% 244 Gas Water Supply 1% 8.1% 219 Sanitation 200 8.0% 7.2%
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