Titan International, Inc. (de) · NYSE:TWI
Titan International, Inc. (de) — FY2017 Earnings Presentation
36 slides from Titan International, Inc. (de)'s earnings presentation, Feb 23, 2018
Slide 1: Investor Presentation FY 2017
Investor Presentation FY 2017
Slide 2: Safe Harbor Statement
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 forward looking statements are based on the Company’s expectations and subject
Slide 3: 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 specialty tires, wheels and tracks. Titan has a heritage
Slide 4: 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 5: Titan International Overview: Portfolio
Titan International Overview: Portfolio COMPETITIVE ADVANTAGES TITAN/GOODYEAR MICHELIN BRIDGESTONE GKN 5
Slide 6: Titan International Overview: Customers
Titan International Overview: Customers 6
Slide 7: 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 8: Agriculture
Slide 9: AGRICULTURE: Market Summary
AGRICULTURE: Market Summary Large hp equipment (4WD tractors and Combines) remain well below historical averages. Smaller hp tractor demand remains strong, but at lower ASP and gross margins than larger equipment Grain prices remain low; resulting in lower farm income (began stabilizing somewhat
Slide 10: AGRICULTURE: Product Innovations
AGRICULTURE: Product Innovations 10
Slide 11: AGRICULTURE: Product Innovations
AGRICULTURE: Product Innovations 11
Slide 12: AGRICULTURE: Goodyear Expansion
AGRICULTURE: Goodyear Expansion 12
Slide 13: AGRICULTURE: Growth Opportunities
AGRICULTURE: Growth Opportunities 13
Slide 14: Earthmoving/Construction
The Gayo N S MINING
Slide 15: OTR: Market Summary
OTR: Market Summary Private construction spending for resi and non-resi buildings continue to carry the industry Larger construction equipment used for highways and infrastructure have recovered modestly from the lower base in recent years Potential for a U.S. infrastructure bill, but not anti
Slide 16: OTR: 23,000-Hour Giant Stands Out At Minexpo
OTR: 23,000-Hour Giant Stands Out At Minexpo 16
Slide 17: OTR: Product Innovations
OTR: Product Innovations TRIED AND TRUE: THE LEADERS IN BIAS Without a doubt, Titan produces some of the industry's best-performing, proven-in-the-field bias tires for construction and earthmoving. While we already have strong market share in bias, we have a vision for continuing to grow it. FOCUS O
Slide 18: OTR: Product Innovations
OTR: Product Innovations THE PREMIUM FORESTRY BRAND. Titan's dedication to improving product quality / “In my opinion, | think has paid off in the growing forestry segment. Goodyear is the best While several key competitors have experienced forestry tire on the market.” quality problems, Goodyear ha
Slide 19: OTR: ITM Innovations
OTR: ITM Innovations 1TM 2016 HIGHLIGHTS UNDERCARRIAGES | TRACKS | COMPONENTS Titan designed and produced a massive 120-ton custom undercarriage for a mining customerin > Morocco. INTRODUCING TRACKADVICE: INTELLIGENT TRACK MAINTENANCE * Ultrasonic measurement tool instantaneously calculates wear per
Slide 20: Consumer
Slide 21: CONSUMER: Products Innovations
CONSUMER: Products Innovations 21
Slide 22: CONSUMER: Specialty Products Division
CONSUMER: Specialty Products Division 22
Slide 23: Financial Overview
Financial Overview O7ITAN
Slide 24: Financial Overview: Highlights & Challenges
Financial Overview: Highlights & Challenges Q4 Highlights Net sales increased $68.7 million to $376 million, up 22% year-over-year; the fourth consecutive quarter of significant YOY growth For the first time since becoming a public company in 1993, experienced sequential growth each quarter thro
Slide 25: Financial Overview: FY 2017 by Market
Financial Overview: FY 2017 by Market Agriculture: Tractors, combines, implements, irrigation Earthmoving/Construction: Mining, cranes, aerial lifts, haul trucks, scrapers Consumer: Primarily light-truck tires, ATVs and select golf and turf equipment markets FY 2017 Segment Revenue GP: 14.7% ⬆ 18% v
Slide 26: Financial Overview: Sales and Gross Margin
Financial Overview: Sales and Gross Margin 50 % $1 ,0 50 45 % $924 $9 50 Net Sales: Up 18% FY ‘17 vs. FY ‘16 40 % $8 50 35 % $690 $7 50 $652 $583 Gross margin declined 64 basis points compared to FY ’16 30 % $6 50 25 % $5 50 AG 47% Improvements in both OEM and Aftermarket businesses 20 % $4 50
Slide 27: Financial Overview: Summary Income & EPS
Financial Overview: Summary Income & EPS (Amounts in millions) 2017 2016 2015 2014 Sales $1,468.9 $1,265.5 $1,394.8 $1,895.5 Adjusted Gross Margin $168.2 $138.9 $134.7 $180.6 Adjusted Gross Margin % 11.5% 11.0% 9.7% 9.5% Adjusted Operating Income (Loss) $3.2 ($25.0) ($26.7) ($16.1) Adjusted Operatin
Slide 28: Financial Overview: Income Reconciliation
Financial Overview: Income Reconciliation Q4 2017 USD Amounts in Millions Q4 2017 Q4 2016 FY 2017 FY 2016 Net loss applicable to common shareholders (32.7) (14.7) (66.4) (47.2) Remove redemption value adjustment (2.4) (1.1) (6.4) (9.6) Net income (loss) attributable to Titan (30.3) (13.6) (60.0) (37
Slide 29: Financial Overview: EBITDA Reconciliation
Financial Overview: EBITDA Reconciliation Q4 2017 USD Amounts in Millions Q4 2017 Q4 2016 FY 2017 FY 2016 Net income (loss) (35.7) (14.6) (64.1) (39.8) Adjustments Provision for income taxes 5.2 0.7 11.2 3.3 Interest expense 7.7 7.3 30.2 32.5 Debt termination expense 18.6 - 18.6 - Depreciation and a
Slide 30: Financial Appendix
Financial Appendix
Slide 31: Sales – N. America vs. International
Appendix Sales – N. America vs. International -12 Quarters -8 Quarters -4 Quarters Current Quarter Full Year - Sales / Operating Income (Amounts in Millions) $2,000 8% 985 6% $1,500 869 4% 730 Millions 742 $1,000 2% 0.2% 910 0% $500 664 -2.0% 523 600 -1.1% -2% -1.9% $0 -4% 2014 2015 2016 2017 Sales
Slide 32: Working Capital
Appendix Working Capital Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Q4 - WORKING CAPITAL (Amounts in Millions) $600 28% 26.9% 27% $500 27% $400 340 341 26% Millions 276 272 $300 26% 25.7% 24.7% 24.7% 25% $200 25% $100 199 227 195 146 177 179 148 24% 123 $0 24% 20
Slide 33: YTD Cash & CDs Activity
Appendix YTD Cash & CDs Activity December 2017 400.0 350.0 2.7 1.7 0.8 4.3 15.3 32.6 300.0 24.4 37.3 38.5 250.0 55.6 58.4 Millions 200.0 64.1 150.0 100.0 $197.8 $143.6 50.0 - 33
Slide 34: Debt Structure
Appendix Debt Structure CASH / DEBT Q4 '17 Q3 '17 Q2 '17 Q1 '17 Q4 '16 Cash & CDs $144 $156 $153 $181 $198 Total Debt $451 $447 $451 $456 $506 6.50% Secured Notes Due 2023 $394 $0 $0 $0 $0 6.875% Secured Notes Due 2020 $0 $396 $396 $396 $396 Titan Europe Credit Facilities $34 $34 $35 $36 $34 Other $
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: Company Website: www.titan-intl.com
Company Website: www.titan-intl.com Investor Relations todd.shoot@titan-intl.com 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 the