Timken Company (the) · NYSE:TKR
Timken Company (the) — The Timken Company — Investor Presentation (March 2005)
22 slides from Timken Company (the)'s investor presentation, March 2005
Slide 1: The Timken Company Investor Presentation
The Timken Company Investor Presentation March 2005
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation (including statements regarding the Company's forecasts, beliefs and expectations) that are not historical in nature are “forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions t
Slide 3: Timken 2004 Accomplishments
Timken 2004 Accomplishments Record Sales of $4.5 Billion EPS of $1.35 doubled from 2003 (a) – Leveraged volume – Improved productivity – Raw material cost recovery – Torrington synergies – $80 million Strong balance sheet – Lowered net debt/capital – Operating working capital/ sales improvemen
Slide 4: Global Reach
Timken Global Reach 26,000 associates in 26 countries North America Europe $3,300m Sales $800m Sales 16,000 Associates 6,000 Associates 61 Facilities 24 Facilities Asia Pacific $240m Sales 3,000 Associates Latin America 9 Facilities $120m Sales 1,000 Associates 5 Facilities Sales based on customer
Slide 5: Vision
Timken Vision We are dedicated to improving our customers’ performance by applying our knowledge of friction management and power transmission to deliver unparalleled value and innovation all around the world. 5
Slide 6: Market Positions
Timken – Market Positions (a) Bearing #3 Global #1 North America #1 Global Tapered Bearing #2 Global Needle Bearing #2 Global Industrial Aftermarket Steel #1 Global Seamless Mechanical Tubing #1 Global Steel for Bearings (a) Company estimates, Freedonia Group and external financial reports. 6
Slide 7: Industrial Group
Timken Industrial Group Broad range of bearing products and services Integrated engineering solutions for OEM designs Strong distribution channels $1,800 14% 12% $1,700 10% ($ millions) $1,600 8% $1,500 6% 4% $1,400 2% $1,300 0% 2003 2004 Net Sales EBIT % 7
Slide 8: Industrial Group: 2004 Net Sales by Market
Timken Industrial Group 2004 Net Sales: $1.7 Billion Approximately 50% OEM and 50% Distribution Aerospace & Defense 7% Consumer & Super Precision Power 9% Transmission 31% Rail 10% Automotive Aftermarket 11% Heavy Industry Off Highway 11% 21% 8
Slide 9: Automotive Group
Timken Automotive Group Bearing and system design leadership Leading edge process capabilities Extensive material science knowledge Global manufacturing footprint $1,700 14% 12% $1,600 10% ($ millions) $1,500 8% $1,400 6% 4% $1,300 2% $1,200 0% 2003 2004 Net Sales EBIT % 9
Slide 10: Automotive Group: 2004 Net Sales
Timken Automotive Group 2004 Net Sales: $1.6 Billion Designed into 9 of the top 10 selling US vehicles Medium & Heavy Truck 16% Light Truck 53% Passenger Car 31% 10
Slide 11: Steel Group
Timken Steel Group Timken High performance steel Performance Demand Steel Scope Leader in cost and quality High Applications Space Shuttle Landing Gear Tool & Die Steels $1,500 8% Bearings 6% Tire Cord Wire ($ millions) $1,000 Perforating Guns 4% Crankshafts 2% Axle Shafts $500 Gun Barrels 0% St
Slide 12: Steel Group: 2004 Net Sales
Timken Steel Group 2004 Net Sales: $1.4 Billion (a) Serve diverse markets across many industries Energy 6% Aerospace 6% Automotive 28% Distribution 10% Tool Steels 10% Bearing Industrial 22% 18% (a) Includes $162 million intersegment sales. 12
Slide 13: TIMKEN
TIMKEN
Slide 14: Financial Overview
TIMKEN Financial Overview
Slide 15: Historical Sales
Timken Historical Sales (a) ($ millions) CAGR 1991 - 2001: 4% $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (a) 2003 includes Torrington acquisition as acquired February 2003 15
Slide 16: Historical Operating Income
Timken Historical Operating Income (a) ($ millions) CAGR 1991 - 2001: 5% % to Operating Net Sales Income $300 12% $250 10% $200 8% $150 6% $100 4% $50 2% $0 0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Operating Income % to Net Sales (a) Excludes special items, such as re
Slide 17: Historical EPS
Timken Historical EPS (a) ($ millions) Net Sales EPS $5,000 $3.00 $2.50 $4,000 $2.00 $3,000 $1.50 $2,000 $1.00 $1,000 $0.50 $0 $0.00 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Net Sales EPS (a) Excludes special items, such as restructuring and reorganization expenses, CDO
Slide 18: Historical Net Debt
Timken Historical Net Debt (a) ($ millions) Net Debt / Net Debt Capital $1,000 55% $900 50% $800 45% $700 40% $600 35% $500 30% $400 25% $300 20% $200 15% $100 10% $0 5% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Net Debt Net Debt / Capital (a) 2003 includes Torrington acq
Slide 19: Conclusion
Conclusion A leading worldwide manufacturer serving diverse customers and end markets Research and development capability provides a constant stream of new and enhanced products and services Global expansion Continued strong markets Improved operating performance 19
Slide 20: Appendix
TIMKEN Appendix
Slide 21: Reconciliation to GAAP
Reconciliation to GAAP ($ millions, except per share amounts) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 GAAP Operating Income (9) 42 14 132 203 247 280 225 133 106 (18) 79 98 237 Reorganization Expense in COGS - - - - - - - 15 - 4 8 9 3 5 Goodwill Amortization Expense 3 3
Slide 22: Reconciliation to GAAP: 2003 Pro forma Net Sales
Reconciliation to GAAP Calculation of Timken Company 2003 Pro forma Net Sales (Thousands of U.S. Dollars) Automotive Group Net sales to external customers Industrial Group Net sales to external customers Intersegment sales Total net sales Steel Group Net sales to external customers Intersegment sale
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