Timken Company (the) · NYSE:TKR
Timken Company (the) — Q1 2024 Earnings Presentation
31 slides from Timken Company (the)'s earnings presentation, Apr 30, 2024
Slide 1: 1Q 2024 Earnings Investor Presentation
These materials were presented on Apr. 30, 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 1Q 2024 Earnings Investor Presentation April 30, 2024 The Timken Company
Slide 2: Agenda
These materials were presented on Apr. 30, 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 Meghan Elmblad Introduction Interim Manager of Investor Relations Overview and Rich Kyle Business Update P
Slide 3: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
These materials were presented on Apr. 30, 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 Apr. 30, 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 Rich Kyle President and Chief Executive Officer The Timken Company
Slide 5: 1Q 2024 Performance Highlights
These materials were presented on Apr. 30, 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 1Q 2024 Performance Highlights 5 Sales of $1.19 billion in 1Q-24, down 5.7% from last year’s record level ▪ Revenue
Slide 6: Organic Growth Outlook – FY 2024 By Market/Sector
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Organic Growth Outlook – FY 2024 By Market/Sector 6 (Market/Sector Placement Reflects Mid-Point of Guidance) NEGATI
Slide 7: 2024 Outlook
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2024 Outlook 7 Prior Outlook Current Outlook (Feb. 5, 2024) (Apr 30, 2024) Current Outlook: Full Year 2024 vs. 2023
Slide 8: Looking Ahead
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Looking Ahead 8 Raising 2024 Outlook ▪ Increased FY revenue outlook by 50bps at midpoint from February ▪ Organic ou
Slide 9: Financial Performance
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Financial Performance Phil Fracassa Executive Vice President and Chief Financial Officer The Timken Company
Slide 10: 1Q 2024 Financial Overview
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2024 Financial Overview 10 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share REPORTED (GAAP) ADJUSTED $1,26
Slide 11: 1Q 2024 Financial Highlights - Sales
These materials were presented on Apr. 30, 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 1Q 2024 Financial Highlights - Sales 11 1Q-24 vs. 1Q-23 Sales by Geography – ORGANIC (Excludes Acquisitions (net) a
Slide 12: 1Q 2024 Financial Comparison – Adjusted EBITDA
These materials were presented on Apr. 30, 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 1Q 2024 Financial Comparison – Adjusted EBITDA 12 $266 ($75) $246 $10 $13 $6 ($3) $23 $6 21.0% 20.7% 1Q-23 Volume P
Slide 13: 1Q 2024 Financial Comparison – Net Income & Diluted EPS
These materials were presented on Apr. 30, 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 1Q 2024 Financial Comparison – Net Income & Diluted EPS 13 1Q-23 1Q-24 $M EPS $M EPS Net Income / EPS $122.3 $1.67
Slide 14: 1Q 2024 Segment Performance: Engineered Bearings
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2024 Segment Performance 14 Engineered Bearings Net Sales ($M) Adjusted EBITDA ($M) Sales of $803 million, down
Slide 15: 1Q 2024 Segment Performance: Industrial Motion
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2024 Segment Performance 15 Industrial Motion Net Sales ($M) Adjusted EBITDA ($M) Sales of $388 million, up 7.1%
Slide 16: Cash Flow, Leverage & Capital Allocation
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Cash Flow, Leverage & Capital Allocation 16 Capital Structure ($M) ($M) 1Q-23 1Q-24 12/31/23 03/31/24 Net Cash from
Slide 17: 2024 Outlook
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2024 Outlook 17 Prior Outlook Current Outlook (Feb. 5, 2024) (Apr 30, 2024) Current Outlook: Full Year 2024 vs. 202
Slide 18: Appendix: Backup Slides and GAAP Reconciliations
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Appendix: Backup Slides and GAAP Reconciliations The Timken Company
Slide 19: Long-Term Financial Goals (5-Year Targets)
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Long-Term Financial Goals* 19 Strong Top-Line Growth Organic Growth CAGR: 4-5% ▪ Positive macros (incl. new markets
Slide 20: Consistent, Growing and Strong Performance
These materials were presented on Apr. 30, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Consistent, Growing and Strong Performance Revenue ($B) Adj. EBITDA Margin Adj. EPS $4.8 19.7% 19.2% 19.0% $7.05 $4
Slide 21: GAAP Reconciliation: Net Income & EPS
These materials were presented on Apr. 30, 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 21 GAAP Reconciliation: Net Income & EPS Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Ear
Slide 22: GAAP Reconciliation: 2019-2023 Net Income & EPS
These materials were presented on Apr. 30, 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 22 Reconciliations of Adjusted Net Income to GAAP Net Income and Ad
Slide 23: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
These materials were presented on Apr. 30, 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 23 Income Reconciliation of EBITDA to GAAP Ne
Slide 24: GAAP Reconciliation: 2019-2023 EBITDA, and EBITDA, After Adjustments
These materials were presented on Apr. 30, 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 24 to Net Income Reconciliations of GAAP to No
Slide 25: GAAP Reconciliation: Segment EBITDA & EBITDA Margin
These materials were presented on Apr. 30, 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 25 GAAP Reconciliation: Segment EBITDA & EBITDA Margin Reconciliation of segment EBITDA, after adjustments, to segm
Slide 26: GAAP Reconciliation: Net Debt & Free Cash Flow
These materials were presented on Apr. 30, 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 26 GAAP Reconciliation: Net Debt & Free Cash Flow Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt t
Slide 27: GAAP Reconciliation: Consolidated EBITDA
These materials were presented on Apr. 30, 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 27 GAAP Reconciliation: Consolidated EBITDA Reconciliation of EBITDA and EBITDA, After Adjustments, to GAAP Net Inc
Slide 28: GAAP Reconciliation: Adjusted NOPAT, Invested Capital and Return
These materials were presented on Apr. 30, 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 Net Operating Profit After Taxes, 28 Adjusted Invested Capital and Return on Adjusted
Slide 29: Supplemental Information: EBITDA Adjustments and D&A by Segment
These materials were presented on Apr. 30, 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 & 29 Amortization by Segment (Unaudited) (Dollars in
Slide 30: GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook
These materials were presented on Apr. 30, 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 30 Reconciliation of Adjusted Earnings per Share to GA
Slide 31: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Apr. 30, 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 31 GAAP Reconciliation: Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaudited) The fol