Timken Company (the) · NYSE:TKR
Timken Company (the) — Q3 2024 Earnings Presentation
33 slides from Timken Company (the)'s earnings presentation, Nov 5, 2024
Slide 1: 3Q 2024 Earnings Investor Presentation
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Earnings Investor Presentation November 5, 2024 The Timken Company
Slide 2: Agenda
These materials were presented on Nov. 5, 2024 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 Vice President of Investor Relations Overview and Tarak Mehta Business Update
Slide 3: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
These materials were presented on Nov. 5, 2024 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 presentation
Slide 4: Overview and Business Update
These materials were presented on Nov. 5, 2024 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 Tarak Mehta President and Chief Executive Officer The Timken Company
Slide 5: 3Q 2024 Performance Highlights
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Performance Highlights 5 Sales of $1.13 billion in 3Q-24, down 1.4% from last year ▪ Revenue down 2.9% organ
Slide 6: Organic Growth Outlook – FY 2024 By Market/Sector
These materials were presented on Nov. 5, 2024 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 2024 By Market/Sector 6 (Market/Sector Placement Reflects Mid-Point of Guidance) NEGATIV
Slide 7: 2024 Outlook
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2024 Outlook 7 Prior Outlook Current Outlook (Jul. 31, 2024) (Nov. 5, 2024) Current Outlook: Full Year 2024 vs. 2023
Slide 8: Acquisition of CGI
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Acquisition of CGI 8 Expands Timken’s Drive Systems Platform (Industrial Motion) in the attractive automation/roboti
Slide 9: Timken: Growing Position in Precision Drive Systems
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Timken: Growing Position in Precision Drive Systems 9 Growing position in precision drive systems through M&A ▪ Esta
Slide 10: Looking Ahead
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Looking Ahead 10 Updating 2024 outlook ▪ Reflects 3Q-24 results and updated outlook for the fourth quarter ▪ Organic
Slide 11: Financial Performance
These materials were presented on Nov. 5, 2024 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: 3Q 2024 Financial Overview
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Financial Overview 12 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share REPORTED (GAAP) ADJUSTED $1,143
Slide 13: 3Q 2024 Financial Highlights - Sales
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Financial Highlights - Sales 13 3Q-24 vs. 3Q-23 Sales by Geography – ORGANIC (Excludes Acquisitions (net) an
Slide 14: 3Q 2024 Financial Comparison – Adjusted EBITDA
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Financial Comparison – Adjusted EBITDA 14 $216 ($22) $9 ($8) ($2) ($3) ($6) $6 $190 18.9% 16.9% 3Q-23 Volume
Slide 15: 3Q 2024 Financial Comparison – Net Income & Diluted EPS
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Financial Comparison – Net Income & Diluted EPS 15 3Q-23 3Q-24 $M EPS $M EPS Net Income / EPS $87.9 $1.23 $8
Slide 16: 3Q 2024 Segment Performance – Engineered Bearings
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Segment Performance 16 Engineered Bearings Net Sales ($M) $776 Q3 Organic Sales by Market/Sector $741 Sales
Slide 17: 3Q 2024 Segment Performance – Industrial Motion
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3Q 2024 Segment Performance 17 Industrial Motion Net Sales ($M) $386 Q3 Organic Sales by Platform $367 Sales of $386
Slide 18: Cash Flow, Leverage & Capital Allocation
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Cash Flow, Leverage & Capital Allocation 18 Capital Structure ($M) ($M) 3Q-23 3Q-24 YTD-23 YTD-24 12/31/23 09/30/24
Slide 19: 2024 Outlook
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2024 Outlook 19 Prior Outlook Current Outlook (Jul. 31, 2024) (Nov. 5, 2024) Current Outlook: Full Year 2024 vs. 202
Slide 20: Appendix: Backup Slides and GAAP Reconciliations
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Appendix: Backup Slides and GAAP Reconciliations The Timken Company
Slide 21: Consistent, Growing and Strong Performance
These materials were presented on Nov. 5, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Consistent, Growing and Strong Performance 21 Revenue ($B) Adj. EBITDA Margin Adj. EPS $4.8 19.7% 19.2% 19.0% $7.05
Slide 22: Supplemental Information: EBITDA Adjustments and D&A by Segment
These materials were presented on Nov. 5, 2024 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 & 22 Amortization by Segment (Unaudited) (Dollars in m
Slide 23: Supplemental Information: EBITDA Adjustments and D&A by Segment
These materials were presented on Nov. 5, 2024 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 & 23 Amortization by Segment (Unaudited) (Dollars in m
Slide 24: GAAP Reconciliation: Net Income & EPS
These materials were presented on Nov. 5, 2024 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 24 Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earn
Slide 25: GAAP Reconciliation: 2019-2023 Net Income & EPS
These materials were presented on Nov. 5, 2024 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: 2019-2023 Net Income & EPS 25 Reconciliations of Adjusted Net Income to GAAP Net Income and Adj
Slide 26: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
These materials were presented on Nov. 5, 2024 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 26 Income Reconciliation of EBITDA to GAAP Net
Slide 27: GAAP Reconciliation: 2019-2023 EBITDA, and EBITDA, After Adjustments
These materials were presented on Nov. 5, 2024 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: 2019-2023 EBITDA, and EBITDA, After Adjustments 27 to Net Income Reconciliations of GAAP to Non
Slide 28: GAAP Reconciliation: Segment EBITDA & EBITDA Margin
These materials were presented on Nov. 5, 2024 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 28 Reconciliation of segment EBITDA, after adjustments, to segme
Slide 29: GAAP Reconciliation: Net Debt & Free Cash Flow
These materials were presented on Nov. 5, 2024 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 29 Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to
Slide 30: GAAP Reconciliation: Consolidated EBITDA
These materials were presented on Nov. 5, 2024 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 30 Reconciliation of EBITDA and EBITDA, After Adjustments, to GAAP Net Inco
Slide 31: GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook
These materials were presented on Nov. 5, 2024 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 31 Reconciliation of Adjusted Earnings per Share to GAA
Slide 32: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Nov. 5, 2024 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 Sales to Organic Sales 32 Reconciliation of Net Sales to Organic Sales (Unaudited) The foll
Slide 33: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Nov. 5, 2024 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 Sales to Organic Sales 33 Reconciliation of Net Sales to Organic Sales (Unaudited) The foll