Timken Company (the) · NYSE:TKR
Timken Company (the) — Q2 2023 Earnings Presentation
33 slides from Timken Company (the)'s earnings presentation, Aug 3, 2023
Slide 1: 2Q 2023 Earnings Investor Presentation
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Earnings Investor Presentation August 3, 2023 The Timken Company
Slide 2: Agenda
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Agenda 2 Neil Frohnapple Introduction Director, Investor Relations Overview and Rich Kyle Business Update Presiden
Slide 3: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information 3 Certain statements in this presentatio
Slide 4: Overview and Business Update
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Overview and Business Update Rich Kyle President and Chief Executive Officer The Timken Company
Slide 5: 2Q 2023 Performance Highlights
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Performance Highlights 5 All-time record sales of $1.27 billion in 2Q-23, up 10.3% from prior-year period
Slide 6: Organic Growth Outlook – FY 2023 By Market/Sector
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Organic Growth Outlook – FY 2023 By Market/Sector 6 (Market/Sector Placement Reflects Mid-Point of Guidance) NEGAT
Slide 7: 2023 Outlook
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2023 Outlook 7 Prior Outlook Current Outlook (May 3, 2023) (August 3, 2023) Current Outlook: Full Year 2023 vs. 20
Slide 8: Update on Business and Strategic Initiatives
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Update on Business and Strategic Initiatives 8 Sell-down of Timken India Ltd. (TIL): Ongoing manufacturing footpri
Slide 9: Key Takeaways
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Key Takeaways 9 Looking back on 2Q-23 ▪ Delivered double-digit revenue and earnings growth; solid YOY margin expan
Slide 10: Consistent, Growing and Strong Performance
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Consistent, Growing and Strong Performance 10 Revenue ($B) Adj. EBITDA Margin Adj. EPS $4.9 19.2% ~19.35% $7.10 18
Slide 11: Financial Performance
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Financial Performance Phil Fracassa Executive Vice President and Chief Financial Officer The Timken Company
Slide 12: 2Q 2023 Financial Overview
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Financial Overview 12 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share $263 REPORTED (GAAP) ADJUSTED
Slide 13: 2Q 2023 Financial Highlights - Sales
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Financial Highlights - Sales 13 2Q-23 vs. 2Q-22 Sales by Geography – ORGANIC $77 ($11) $1,272 (Excludes Ac
Slide 14: 2Q 2023 Financial Comparison – Adjusted EBITDA
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Financial Comparison – Adjusted EBITDA 14 $22 ($32) $39 ($9) ($4) $10 $263 $231 $6 20.0% 20.7% 2Q-22 Volum
Slide 15: 2Q 2023 Financial Comparison – Net Income & Diluted EPS
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Financial Comparison – Net Income & Diluted EPS 15 2Q-22 2Q-23 $M EPS $M EPS Net Income / EPS $105.0 $1.42
Slide 16: 2Q 2023 Segment Performance – Engineered Bearings
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Segment Performance 16 Engineered Bearings Net Sales ($M) Adjusted EBITDA ($M) Sales of $857 million, up 7
Slide 17: 2Q 2023 Segment Performance – Industrial Motion
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2023 Segment Performance 17 Industrial Motion Net Sales ($M) Adjusted EBITDA ($M) Sales of $415 million, up 16.
Slide 18: Cash Flow, Leverage & Capital Allocation
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Cash Flow, Leverage & Capital Allocation 18 Capital Structure ($M) ($M) 2Q-22 2Q-23 12/31/22 06/30/23 Net Cash fro
Slide 19: 2023 Outlook
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2023 Outlook 19 Prior Outlook Current Outlook (May 3, 2023) (August 3, 2023) Current Outlook: Full Year 2023 vs. 2
Slide 20: Returning Capital Through Share Repurchases
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Returning Capital Through Share Repurchases 20 Basic Shares Outstanding (Millions) Share repurchase has been a key
Slide 21: Long-Term Targets (5-Year)
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Long-Term Financial Goals* 21 Strong Top-Line Growth Organic Growth CAGR: 4-5% ▪ Positive macros (incl. new market
Slide 22: Appendix: GAAP Reconciliations
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Appendix: GAAP Reconciliations The Timken Company
Slide 23: GAAP Reconciliation: Net Income & EPS
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Net Income & EPS 23 Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Ea
Slide 24: GAAP Reconciliation: 2019-2022 Net Income & EPS
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: 2019-2022 Net Income & EPS 24 Reconciliations of Adjusted Net Income to GAAP Net Income and A
Slide 25: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net 25 Income Reconciliation of EBITDA to GAAP N
Slide 26: GAAP Reconciliation: 2019-2022 EBITDA, and EBITDA, After Adjustments to Net Income
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: 2019-2022 EBITDA, and EBITDA, After Adjustments 26 to Net Income Reconciliations of GAAP to N
Slide 27: GAAP Reconciliation: Segment EBITDA & EBITDA Margin
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Segment EBITDA & EBITDA Margin 27 Reconciliation of segment EBITDA, after adjustments, to seg
Slide 28: GAAP Reconciliation: Net Debt & Free Cash Flow
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Net Debt & Free Cash Flow 28 Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt
Slide 29: GAAP Reconciliation: Consolidated EBITDA
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Consolidated EBITDA 29 Reconciliation of EBITDA and EBITDA, After Adjustments, to GAAP Net In
Slide 30: Supplemental Information: EBITDA Adjustments and Depreciation & Amortization by Segment
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Supplemental Information: EBITDA Adjustments and Depreciation & 30 Amortization by Segment (Unaudited) (Dollars in
Slide 31: Supplemental Information: EBITDA Adjustments and Depreciation & Amortization by Segment
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Supplemental Information: EBITDA Adjustments and Depreciation & 31 Amortization by Segment (Unaudited) (Dollars in
Slide 32: GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook 32 Reconciliation of Adjusted Earnings per Share to G
Slide 33: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on August 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 33 GAAP Reconciliation: Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaudited) The fo