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: steve.tschiegg@timken.com
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: Leveraging our Capabilities in New Ways
(CHART) Our New Enterprise Leveraging our Capabilities in New Ways Aerospace & Defense: $418M Diversified growth in defense, commercial and the aftermarket... beyond bearings Steel Group: $673M Enhancing market leadership position where performance demands are high Process Industries: $806M Global g
Slide 6: Diverse Global Industrial Portfolio
Diverse Global Industrial Portfolio 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 aftermarket Broad-Based End Markets and Cust
Slide 7: Diversify global scope, growing outside the U.S.
Our strategy: Diversify global scope, growing disproportionately outside the U.S. Geographic Sales Diversification Rest of World 9% 2009 Sales: $3.1 Billion Asia 12% Europe 17% United States 62% Sales Outside United States: 38% Asia Growth Initiative 2009 sales of $370 million, or 12% of total compa
Slide 8: Our Strategy Model
Our Strategy Model GROW OPTIMIZE Enhance existing products and services Leverage technology to create value Capture lifetime of opportunity Structure portfolio for value creation Fix/Exit under- performing sectors Industrial markets Geographies Channels Improve efficiency Lower cost structure Increa
Slide 9: Our Priorities: Positioned for Improved Performance
Our Priorities Positioned for Improved Performance OPTIMIZE Drive performance improvements while continuing to implement our strategy Mobile - transform through fix / exit strategy Steel - rebound profitability and balance portfolio Complete Project O.N.E., achieve further working capital improvemen
Slide 10: Why All the Fuss About Asia?
Why All the Fuss About Asia? Note: ROW includes Latin America and Africa & Middle east Global Bearings Market - US$ Billion Today, Asia accounts for over 40% of the world bearing market Growing at 8%, Asia will account for nearly 50% of the world bearing market in 2015 Source : Freedonia (July 2006)
Slide 11: And the list goes on... Dynamic Asia
And the list goes on... ~50%+ of world heavy truck production Major world oil producer Majority of world's population (~4.0 billion) Significant portion of world GDP Source: Internal Timken Research Dynamic Asia
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 manufacturing capacity Gr
Slide 13: Timken in Asia - 2000
Timken in Asia - 2000 1900 Associates 3 Manufacturing Plants 1 Engineering Center 1 Distribution Center
Slide 14: Timken in Asia - 2010
Timken in Asia - 2010 4100 Associates 8 Manufacturing Plants 3 Engineering Centers 3 Distribution Centers 23 Offices
Slide 15: Our Focus in China - Growth Markets
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 shaft bearing Models
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 bearing ^^^^ Xiangtan
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
Slide 19: Primary Market Opportunities in China
Primary Market Opportunities in China Distribution Mining Wind Energy Power Transmission Power Generation Metals Current success Growth Targets Cement
Slide 20: Expand & Optimize China Portfolio in Key Industries
Expand & Optimize China Portfolio in Key Industries 2006 2010 Power Gen PM Wind Energy PM Cement Power Gen Gear Drive Printing Press Compressors & Pumps
Slide 21: Strong Growth - China - Wind
Strong Growth - China - Wind Source: China Wind Energy Association Unit: MW
Slide 22: Strong Growth - China - Cement
Source: China Cement Industry Association Unit: Million tons Strong Growth - China - Cement
Slide 23: Strong Growth - China - Steel
Source: China Iron & Steel Association China Apparent Steel Consumption Million Metric Tons Strong Growth - China - Steel
Slide 24: FirstBridge Overview
FirstBridge Overview Focus Markets 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-busine
Slide 25: FirstBridge Products
Timken(r) bearings Goodyear(r) industrial belts Garlock (r) engineered seals Reynold(r) Chains Martin(r) sprockets and gears FirstBridge Products
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
Slide 27: Indian Economic Structure vs. China
2008 42% 47% 11% Indian Economic Structure vs. China 1990 33% 41% 26% 2008 54% 17% 29% 1990 31% 27% 42% Agriculture Industrial Services Data source: Compilation of various internal data points. India China
Slide 28: India - Investment in Infrastructure
India - Investment in Infrastructure Eleventh Plan Projected (FY08-12) Infrastructure Investment $ 514 billion Investment as a % GDP 2007-2017 $ 1,500 billion Infrastructure investment to be about 9% of GDP by 2010 85% of investment in infrastructure would influence demand for bearings Long term gro
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