Titan International, Inc. (de) · NYSE:TWI
Titan International, Inc. (de) — Q1 2024 Earnings Presentation
31 slides from Titan International, Inc. (de)'s earnings presentation, May 2, 2024
Slide 1: Investor Presentation – May 2024
INVESTOR PRESENTATION – MAY 2024 NYSE: TWI
Slide 2: Forward-Looking Statements & Non-GAAP Metrics
Forward-Looking Statements & Non-GAAP Metrics Forward-Looking Statements 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 a
Slide 3: Titan International Overview
Titan International Overview W H Y W E M AT T E R • We produce equipment to help farmers feed the world, outdoor enthusaists get the most out of their equipment, construction operators develop projects & miners extract resources. • We have cultivated longstanding relations with blue-chip OEM custome
Slide 4: Why Invest in TWI?
Why Invest in TWI ? • Long-standing relationships with blue-chip OEMs, aftermarket dealers, and consumers Global Market • Recognized global brands Leadership • History of market share gains through new product development Titan’s Strong Foundation • Megatrends: Growing Global Ag and Infrastructure n
Slide 5: Strategic Actions Have Elevated The Baseline
Strategic Actions Have Elevated The Baseline Multi-Year Strategic Transformation Titan including Carlstar have proven earnings power of ~$250M to $300M AEBITDA in a typical year 3 2 ▪ 2023 AEBITDA: $205M, 11% Product 1 Operational Innovation ▪ 2022 AEBITDA: $253M, 12% Focus on Core Excellence New pr
Slide 6: Carlstar Acquisition is Integral Step to Titan's Shareholder Return Strategy
Carlstar Acquisition is Integral Step to Titan’s Shareholder Return Strategy Titan’s Shareholder Return Strategy Product innovation (R&D) Added significant new customer relationships in multiple One Titan team development channels, including leading wholesale distributors, national Grow cust
Slide 7: Keys to Driving Long-Term Value
Keys to Driving Long-Term Value Collaborative Megatrends in Ag and Infrastructure Customer + 1 Relationships 2 Preeminent partner to customers Leverage -Superior aftermarket presence Megatrends - Longstanding OEM relationships + Commitment to R&D & innovation Develop Innovative + Solutions Competiti
Slide 8: Unmatched Global Footprint, High Barriers to Entry
Unmatched Global Footprint, High Barriers to Entry Serving customers regionally and locally provides significant competitive advantage North America Quincy, IL Querétaro, Mexico Bryan, OH Union City, TN West-Chicago, IL (Corporate Dallas, TX headquarters) Des Moines, IA Winston-Salem
Slide 9: Recent Industry Leading Product Innovation
Recent Industry Leading Product Innovation Deep culture of product development and innovation to meet customers’ evolving needs, translating to increased performance and financial benefits Agriculture Earthmoving / Construction Consumer Intersect SD 10 Turf Armor CSL 16 TRUST ITM Powersports Lawn an
Slide 10: AG – Low Sidewall Technology (LSW)
AG – Low Sidewall Technology® (LSW®) End-user enthusiasm and demand for industry leading technology remains high Superior Alternative to Tracks: Less Compaction: LSW equipped machines generate a more consistent and lower ground bearing pressure, equating to 25% less compaction in comparison to a
Slide 11: Carlstar – Products/Markets
Carlstar – Products/Markets Ag. / Construction High Speed Trailer Outdoor Power Power Sports (~28% of Sales) (~22% of Sales) Equipment (~13% of Sales) (~32% of Sales) Select Applications Sample Products Carlstar - Sales by Market Segment Aftermarket / Original Equipment Manufacturer (“OEM”) 3% 24% C
Slide 12: Titan + Carlstar Growth and Synergy Opportunities
Titan + Carlstar Growth and Synergy Opportunities Synergy Area Description Collaborative • Sell Titan / Carlstar products to existing, non-overlapping customers Commercial Customer • Utilize portfolio of brands to create comprehensive brand strategy at multiple price points Relationships • Expand ge
Slide 13: Commitment to ESG
Commitment to ESG See Titan’s Latest CSR Report 2023 CSR Report ENVIRONMENTAL SOCIAL GOVERNANCE • Titan is developing a life cycle assessment (LCA) to enhance new product development • Remain a dedicated signatory to UN Global • Increased Board diversity Compact • Separate Chairman of the Board and
Slide 14: Segment Overview & Background
SEGMENT OVERVIEW & BACKGROUND 14
Slide 15: Agriculture Segment
Agriculture Segment Ag Segment Facts Revenue ($M) & Adj. Gross Margin (%) Wheels, tires, and undercarriage components for use on a variety $1,400.00 50 of agricultural equipment Tires and wheels produced in North America, Europe Revenue 45 Wide range of wheel and tire sizes including the largest
Slide 16: EMC Segment
EMC Segment EMC Segment Facts The majority of EMC revenue is undercarriage parts and complete Revenue ($M) & Adj. Gross Margin (%) undercarriage solutions under the premium ITM brand, which operates $1,200.00 50 globally in both the OEM and aftermarket channels Undercarriage parts produced in Euro
Slide 17: EMC – ITM Products and Customers
EMC – ITM Products and Customers OEM ITM Facts Undercarriage System 70% OE / 30% AM Full-service provider and manufacturer of ITM undercarriage systems and parts for the widest range of applications Significant blue-chip OEM customer base Flexible supply chain providing competitive advantage
Slide 18: Consumer Segment
Consumer Segment Consumer Segment Facts Revenue ($M) & Adj. Gross Margin (%) Acquisition of Carlstar added four manufacturing facilities and Tires and wheels produced twelve distributions centers Revenue $200.00 in North America and China 50 and distributed globally Leading brands in off-road ca
Slide 19: Financials
FINANCIALS 19
Slide 20: Diverse, Global Revenue Base
Diverse, Global Revenue Base Revenue by Segment Revenue by Geography Other 5% Consumer Latin 25% America Agricultural 15% 45% Earthmoving/ Revenue by Product Revenue by Channel* Construction Europe/CIS U.S. (“EMC”) 26% 54% 30% Wheels 25% Tires Aftermarket Original 55% ("AM") Equipment Undercarriage
Slide 21: Significantly Enhanced Financial Performance
Significantly Enhanced Financial Performance Revenue ($B) +9% CAGR Adj. Gross Margin +620 BPS $2.2 16.8% 16.6% 16.6% $1.8 $1.8 $1.8 13.3% $1.3 10.4% 2020 2021 2022 2023 Mar'24 TTM 2020 2021 2022 2023 Mar'24 TTM Adj. EBITDA ($M) +36% Adj. EPS +$1.88 CAGR $2.20 $253 $1.59 $205 $187 $1.33 $135 $0.60 $5
Slide 22: Focus on Balanced Growth & Margin Enhancement
Focus on Balanced Growth & Margin Enhancement Revenue Mix/Trend Adj. Gross Margin Trend (in $ billions) 25% $1.3 $1.8 $2.2 $1.8 $1.8 $0.2 20% $0.1 $0.2 $0.2 $0.8 15% $0.7 $0.7 $0.1 $0.7 10% $0.5 $1.2 $0.9 $1.0 5% $0.9 $0.6 0% 2020 2021 2022 2023 Mar'24 TTM 2020 2021 2022 2023 Mar'24 TTM AG EMC Consu
Slide 23: Strong Growth, Supportive Balance Sheet
Strong Growth, Supportive Balance Sheet Net Debt / TTM AEBITDA ($M) $573M Debt Breakdown $300.0 Leverage Ratio Trend 6 as of March 31st, 2024 $250.0 $264 5 $396 $253 $236 $241 $220 $200.0 $210 $205 4 $187 $147 $150.0 $166 3 2.6x $23 $7 $100.0 2.0x* 2 1.8x 7.0% Secured Revolving Credit Titan Europe O
Slide 24: Appendix
APPENDIX 24
Slide 25: Carlstar Acquisition: Combined Product Segment and Brand Coverage with Titan
Carlstar Acquisition: Combined Product Segment and Brand Coverage with Titan Titan and Carlstar Combined Offer the Most Comprehensive Specialty Tire and Wheel portfolio in the World Outdoor Power Power High Speed Agriculture / Construction Multiple / Other Equipment Sports Trailer Assemblies / Tires
Slide 26: Q1 Financial Overview
Q1 Financial Overview* 2021 2022 2023 2024 Sales $404M $556M $549M $482M Adjusted Gross Profit $53M $87M $96M $81M Adjusted Gross Margin % 13.2% 15.6% 17.4% 16.7% Adjusted EBITDA $26M $57M $68M $50M Adjusted EBITDA % 6.5% 10.2% 12.3% 10.3% Adjusted Net income (loss) attrib. $4M $28M $34M $19M to Tit
Slide 27: Q1 EBITDA Reconciliation
Q1 EBITDA Reconciliation Adj. EBITDA Reconciliation | Q1 2021-2024 ($ Millions) Q1 2021 Q1 2022 Q1 2023 Q1 2024 Net Income / (Loss) 13 25 33 10 Provision for Income Taxes 3 9 14 10 Interest Expense, Excluding Interest 7 8 7 8 Income Depreciation & Amortization 13 11 11 12 EBITDA 36 53 66 40 Foreign
Slide 28: FY EBITDA Reconciliation
FY EBITDA Reconciliation Adj. EBITDA Reconciliation | FY 2018-Mar’24 TTM ($ Millions) 2018 2019 2020 2021 2022 2023 Mar’24 TTM Net Income / (Loss) 13 (52) (65) 50 179 84 60 Provision for Income Taxes 7 3 7 1 23 26 22 Interest Expense, Excluding Interest Income 30 33 30 32 31 29 30 Depreciation & Amo
Slide 29: Q1 & FY Gross Margin Reconciliation
Q1 & FY Gross Margin Reconciliation Adj. Gross Margin Reconciliation | Q1 2021-2024 ($ Millions) Q1 2021 Q1 2022 Q1 2023 Q1 2024 Gross Profit, as Reported 53 87 96 77 Gross Margin 13.2% 15.6% 17.4% 16.0% Adjustments: Carlstar Inventory Fair Value Step- - - - 3 Up Gross Profit, as Adjusted 53 87 96 8
Slide 30: Q1 & FY EPS Reconciliation
Q1 & FY EPS Reconciliation Adj. EPS Reconciliation | 2020-Mar’24 TTM ($ Millions) Q1 2021 Q1 2022 Q1 2023 Q1 2024 FY 2020 FY 2021 FY 2022 FY 2023 Mar’24 TTM Net Income Attributable to Titan and Applicable to Common Shareholders 14 24 32 9 (60) 50 176 79 Adjustments: Foreign Exchange Loss (9) (5) 2 0
Slide 31: Investor Contact Information
Investor Contact Information Investor Relations Contacts: Alan Snyder Phone: 630-251-0589 alan.snyder@titan-intl.com Jeremy Hellman Phone: 212-836-9626 jhellman@equityny.com 31
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